H. R. 3009
One Hundred Seventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the twenty-third day of January, two thousand and two
An Act
To extend the Andean Trade Preference Act, to grant additional trade benefits
under that Act, 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 ‘‘Trade Act of 2002’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.
(a) DIVISIONS.—This Act is organized into 5 divisions as follows:
(1) DIVISION A.—Trade Adjustment Assistance.
(2) DIVISION B.—Bipartisan Trade Promotion Authority.
(3) DIVISION C.—Andean Trade Preference Act.
(4) DIVISION D.—Extension of Certain Preferential Trade
Treatment and Other Provisions.
(5) DIVISION E.—Miscellaneous Provisions.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
DIVISION A—TRADE ADJUSTMENT ASSISTANCE
Sec. 101. Short title.
TITLE I—TRADE ADJUSTMENT ASSISTANCE PROGRAM
Subtitle A—Trade Adjustment Assistance For Workers
Sec. 111. Reauthorization of trade adjustment assistance program.
Sec. 112. Filing of petitions and provision of rapid response assistance; expedited
review of petitions by secretary of labor.
Sec. 113. Group eligibility requirements.
Sec. 114. Qualifying requirements for trade readjustment allowances.
Sec. 115. Waivers of training requirements.
Sec. 116. Amendments to limitations on trade readjustment allowances.
Sec. 117. Annual total amount of payments for training.
Sec. 118. Provision of employer-based training.
Sec. 119. Coordination with title I of the Workforce Investment Act of 1998.
Sec. 120. Expenditure period.
Sec. 121. Job search allowances.
Sec. 122. Relocation allowances.
Sec. 123. Repeal of NAFTA transitional adjustment assistance program.
Sec. 124. Demonstration project for alternative trade adjustment assistance for
older workers.
Sec. 125. Declaration of policy; sense of Congress.
Subtitle B—Trade Adjustment Assistance For Firms
Sec. 131. Reauthorization of program.
Subtitle C—Trade Adjustment Assistance For Farmers
Sec. 141. Trade adjustment assistance for farmers.
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Sec. 142. Conforming amendments.
Sec. 143. Study on TAA for fishermen.
Subtitle D—Effective Date
Sec. 151. Effective date.
TITLE II—CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE
INDIVIDUALS
Sec. 201. Credit for health insurance costs of individuals receiving a trade readjust-
ment allowance or a benefit from the Pension Benefit Guaranty Cor-
poration.
Sec. 202. Advance payment of credit for health insurance costs of eligible individ-
uals.
Sec. 203. Health insurance assistance for eligible individuals.
TITLE III—CUSTOMS REAUTHORIZATION
Sec. 301. Short title.
Subtitle A—United States Customs Service
CHAPTER 1—DRUG ENFORCEMENT AND OTHER NONCOMMERCIAL AND COMMERCIAL
OPERATIONS
Sec. 311. Authorization of appropriations for noncommercial operations, commercial
operations, and air and marine interdiction.
Sec. 312. Antiterrorist and illicit narcotics detection equipment for the United
States-Mexico border, United States-Canada border, and Florida and the
Gulf Coast seaports.
Sec. 313. Compliance with performance plan requirements.
CHAPTER 2—CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE
Sec. 321. Authorization of appropriations for program to prevent child pornography/
child sexual exploitation.
CHAPTER 3—MISCELLANEOUS PROVISIONS
Sec. 331. Additional Customs Service officers for United States-Canada Border.
Sec. 332. Study and report relating to personnel practices of the Customs Service.
Sec. 333. Study and report relating to accounting and auditing procedures of the
Customs Service.
Sec. 334. Establishment and implementation of cost accounting system; reports.
Sec. 335. Study and report relating to timeliness of prospective rulings.
Sec. 336. Study and report relating to customs user fees.
Sec. 337. Fees for customs inspections at express courier facilities.
Sec. 338. National Customs Automation Program.
Sec. 339. Authorization of appropriations for customs staffing.
CHAPTER 4—ANTITERRORISM PROVISIONS
Sec. 341. Immunity for United States officials that act in good faith.
Sec. 342. Emergency adjustments to offices, ports of entry, or staffing of the cus-
toms service.
Sec. 343. Mandatory advanced electronic information for cargo and other improved
Customs reporting procedures.
Sec. 343A. Secure systems of transportation.
Sec. 344. Border search authority for certain contraband in outbound mail.
Sec. 345. Authorization of appropriations for reestablishment of customs operations
in New York City.
CHAPTER 5—TEXTILE TRANSSHIPMENT PROVISIONS
Sec. 351. GAO audit of textile transshipment monitoring by Customs Service.
Sec. 352. Authorization of appropriations for textile transshipment enforcement op-
erations.
Sec. 353. Implementation of the African Growth and Opportunity Act.
Subtitle B—Office of the United States Trade Representative
Sec. 361. Authorization of appropriations.
Subtitle C—United States International Trade Commission
Sec. 371. Authorization of appropriations.
Subtitle D—Other trade provisions
Sec. 381. Increase in aggregate value of articles exempt from duty acquired abroad
by United States residents.
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Sec. 382. Regulatory audit procedures.
Sec. 383. Payment of duties and fees.
DIVISION B—BIPARTISAN TRADE PROMOTION AUTHORITY
TITLE XXI—TRADE PROMOTION AUTHORITY
Sec. 2101. Short title and findings.
Sec. 2102. Trade negotiating objectives.
Sec. 2103. Trade agreements authority.
Sec. 2104. Consultations and assessment.
Sec. 2105. Implementation of trade agreements.
Sec. 2106. Treatment of certain trade agreements for which negotiations have al-
ready begun.
Sec. 2107. Congressional Oversight Group.
Sec. 2108. Additional implementation and enforcement requirements.
Sec. 2109. Committee staff.
Sec. 2110. Conforming amendments.
Sec. 2111. Report on impact of trade promotion authority.
Sec. 2112. Interests of small business.
Sec. 2113. Definitions.
DIVISION C—ANDEAN TRADE PREFERENCE ACT
TITLE XXXI—ANDEAN TRADE PREFERENCE
Sec. 3101. Short title.
Sec. 3102. Findings.
Sec. 3103. Articles eligible for preferential treatment.
Sec. 3104. Termination.
Sec. 3105. Report on Free Trade Agreement with Israel.
Sec. 3106. Modification of duty treatment for tuna.
Sec. 3107. Trade benefits under the caribbean basin economic recovery act.
Sec. 3108. Trade benefits under the African Growth and Opportunity Act.
DIVISION D—EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT
TITLE XLI—EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
Sec. 4101. Extension of generalized system of preferences.
Sec. 4102. Amendments to generalized system of preferences.
DIVISION E—MISCELLANEOUS PROVISIONS
TITLE L—MISCELLANEOUS TRADE BENEFITS
Subtitle A—Wool Provisions
Sec. 5101. Wool provisions.
Sec. 5102. Duty suspension on wool.
Subtitle B—Other Provisions
Sec. 5201. Fund for WTO dispute settlements.
Sec. 5202. Certain steam or other vapor generating boilers used in nuclear facili-
ties.
Sec. 5203. Sugar tariff-rate quota circumvention.
DIVISION A—TRADE ADJUSTMENT
ASSISTANCE
SEC. 101. SHORT TITLE.
This division may be cited as the ‘‘Trade Adjustment Assistance
Reform Act of 2002’’.
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TITLE I—TRADE ADJUSTMENT
ASSISTANCE PROGRAM
Subtitle A—Trade Adjustment Assistance
For Workers
SEC. 111. REAUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE
PROGRAM.
(a) ASSISTANCE FOR WORKERS.—Section 245 of the Trade Act
of 1974 (19 U.S.C. 2317) is amended by striking ‘‘October 1, 1998,
and ending September 30, 2001,’’ each place it appears and inserting
‘‘October 1, 2001, and ending September 30, 2007,’’.
(b) ASSISTANCE FOR FIRMS.—Section 256(b) of the Trade Act
of 1974 (19 U.S.C. 2346(b)) is amended by striking ‘‘October 1,
1998, and ending September 30, 2001’’ and inserting ‘‘October 1,
2001, and ending September 30, 2007,’’.
(c) TERMINATION.—Section 285 of the Trade Act of 1974 is
amended to read as follows:
‘‘SEC. 285. TERMINATION.
‘‘(a) ASSISTANCE FOR WORKERS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
trade adjustment assistance, vouchers, allowances, and other
payments or benefits may not be provided under chapter 2
after September 30, 2007.
‘‘(2) EXCEPTION.—Notwithstanding paragraph (1), a worker
shall continue to receive trade adjustment assistance benefits
and other benefits under chapter 2 for any week for which
the worker meets the eligibility requirements of that chapter,
if on or before September 30, 2007, the worker is—
‘‘(A) certified as eligible for trade adjustment assistance
benefits under chapter 2 of this title; and
‘‘(B) otherwise eligible to receive trade adjustment
assistance benefits under chapter 2.
‘‘(b) OTHER ASSISTANCE.—
‘‘(1) ASSISTANCE FOR FIRMS.—Technical assistance may not
be provided under chapter 3 after September 30, 2007.
‘‘(2) ASSISTANCE FOR FARMERS.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), adjustment assistance, vouchers, allowances, and other
payments or benefits may not be provided under chapter
6 after September 30, 2007.
‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A),
an agricultural commodity producer (as defined in section
291(2)) shall continue to receive adjustment assistance
benefits and other benefits under chapter 6, for any week
for which the agricultural commodity producer meets the
eligibility requirements of chapter 6, if on or before Sep-
tember 30, 2007, the agricultural commodity producer is—
‘‘(i) certified as eligible for adjustment assistance
benefits under chapter 6; and
‘‘(ii) is otherwise eligible to receive adjustment
assistance benefits under such chapter 6.’’.
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SEC. 112. FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE
ASSISTANCE; EXPEDITED REVIEW OF PETITIONS BY SEC-
RETARY OF LABOR.
(a) FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE
ASSISTANCE.—Section 221(a) of the Trade Act of 1974 (19 U.S.C.
2271(a)) is amended to read as follows:
‘‘(a)(1) A petition for certification of eligibility to apply for
adjustment assistance for a group of workers under this chapter
may be filed simultaneously with the Secretary and with the Gov-
ernor of the State in which such workers’ firm or subdivision
is located by any of the following:
‘‘(A) The group of workers (including workers in an agricul-
tural firm or subdivision of any agricultural firm).
‘‘(B) The certified or recognized union or other duly author-
ized representative of such workers.
‘‘(C) Employers of such workers, one-stop operators or one-
stop partners (as defined in section 101 of the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2801)), including State employment
security agencies, or the State dislocated worker unit estab-
lished under title I of such Act, on behalf of such workers.
‘‘(2) Upon receipt of a petition filed under paragraph (1), the
Governor shall—
‘‘(A) ensure that rapid response assistance, and appropriate
core and intensive services (as described in section 134 of
the Workforce Investment Act of 1998 (29 U.S.C. 2864)) author-
ized under other Federal laws are made available to the workers
covered by the petition to the extent authorized under such
laws; and
‘‘(B) assist the Secretary in the review of the petition by
verifying such information and providing such other assistance
as the Secretary may request.
‘‘(3) Upon receipt of the petition, the Secretary shall promptly
publish notice in the Federal Register that the Secretary has
received the petition and initiated an investigation.’’.
(b) EXPEDITED REVIEW OF PETITIONS BY SECRETARY OF LABOR.—
Section 223(a) of such Act (19 U.S.C. 2273(a)) is amended in the
first sentence by striking ‘‘60 days’’ and inserting ‘‘40 days’’.
SEC. 113. GROUP ELIGIBILITY REQUIREMENTS.
(a) TRADE ADJUSTMENT ASSISTANCE PROGRAM.—
(1) IN GENERAL.—Section 222 of the Trade Act of 1974
(19 U.S.C. 2272) is amended—
(A) by amending subsection (a) to read as follows:
‘‘(a) IN GENERAL.—A group of workers (including workers in
any agricultural firm or subdivision of an agricultural firm) shall
be certified by the Secretary as eligible to apply for adjustment
assistance under this chapter pursuant to a petition filed under
section 221 if the Secretary determines that—
‘‘(1) a significant number or proportion of the workers
in such workers’ firm, or an appropriate subdivision of the
firm, have become totally or partially separated, or are threat-
ened to become totally or partially separated; and
‘‘(2)(A)(i) the sales or production, or both, of such firm
or subdivision have decreased absolutely;
‘‘(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have increased;
and
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‘‘(iii) the increase in imports described in clause (ii) contrib-
uted importantly to such workers’ separation or threat of sepa-
ration and to the decline in the sales or production of such
firm or subdivision; or
‘‘(B)(i) there has been a shift in production by such workers’
firm or subdivision to a foreign country of articles like or
directly competitive with articles which are produced by such
firm or subdivision; and
‘‘(ii)(I) the country to which the workers’ firm has shifted
production of the articles is a party to a free trade agreement
with the United States;
‘‘(II) the country to which the workers’ firm has shifted
production of the articles is a beneficiary country under the
Andean Trade Preference Act, African Growth and Opportunity
Act, or the Caribbean Basin Economic Recovery Act; or
‘‘(III) there has been or is likely to be an increase in
imports of articles that are like or directly competitive with
articles which are or were produced by such firm or subdivi-
sion.’’;
(B) by redesignating subsection (b) as subsection (c);
and
(C) by inserting after subsection (a) the following:
‘‘(b) ADVERSELY AFFECTED SECONDARY WORKERS.—A group of
workers (including workers in any agricultural firm or subdivision
of an agricultural firm) shall be certified by the Secretary as eligible
to apply for trade adjustment assistance benefits under this chapter
if the Secretary determines that—
‘‘(1) a significant number or proportion of the workers
in the workers’ firm or an appropriate subdivision of the firm
have become totally or partially separated, or are threatened
to become totally or partially separated;
‘‘(2) the workers’ firm (or subdivision) is a supplier or
downstream producer to a firm (or subdivision) that employed
a group of workers who received a certification of eligibility
under subsection (a), and such supply or production is related
to the article that was the basis for such certification (as
defined in subsection (c) (3) and (4)); and
‘‘(3) either—
‘‘(A) the workers’ firm is a supplier and the component
parts it supplied to the firm (or subdivision) described
in paragraph (2) accounted for at least 20 percent of the
production or sales of the workers’ firm; or
‘‘(B) a loss of business by the workers’ firm with the
firm (or subdivision) described in paragraph (2) contributed
importantly to the workers’ separation or threat of separa-
tion determined under paragraph (1).’’.
(b) DEFINITIONS.—Section 222(c) of such Act, as redesignated
by paragraph (1)(A), is amended—
(1) in the matter preceding paragraph (1), by striking ‘‘sub-
section (a)(3)’’ and inserting ‘‘this section’’; and
(2) by adding at the end the following:
‘‘(3) DOWNSTREAM PRODUCER.—The term ‘downstream pro-
ducer’ means a firm that performs additional, value-added
production processes for a firm or subdivision, including a firm
that performs final assembly or finishing, directly for another
firm (or subdivision), for articles that were the basis for a
certification of eligibility under subsection (a) of a group of
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workers employed by such other firm, if the certification of
eligibility under subsection (a) is based on an increase in
imports from, or a shift in production to, Canada or Mexico.
‘‘(4) SUPPLIER.—The term ‘supplier’ means a firm that pro-
duces and supplies directly to another firm (or subdivision)
component parts for articles that were the basis for a certifi-
cation of eligibility under subsection (a) of a group of workers
employed by such other firm.’’.
SEC. 114. QUALIFYING REQUIREMENTS FOR TRADE READJUSTMENT
ALLOWANCES.
(a) 
CLARIFICATION
OF
CERTAIN
REDUCTIONS.—Section
231(a)(3)(B) of the Trade Act of 1974 (19 U.S.C. 2291(a)(3)(B))
is amended by inserting after ‘‘any unemployment insurance’’ the
following: ‘‘, except additional compensation that is funded by a
State and is not reimbursed from any Federal funds,’’.
(b) 
ENROLLMENT
IN
TRAINING
REQUIREMENT.—Section
231(a)(5)(A) of such Act (19 U.S.C. 2291(a)(5)(A)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(A)’’;
(2) by adding ‘‘and’’ after the comma at the end; and
(3) by adding at the end the following:
‘‘(ii) the enrollment required under clause (i) occurs
no later than the latest of—
‘‘(I) the last day of the 16th week after the worker’s
most recent total separation from adversely affected
employment which meets the requirements of para-
graphs (1) and (2),
‘‘(II) the last day of the 8th week after the week
in which the Secretary issues a certification covering
the worker,
‘‘(III) 45 days after the later of the dates specified
in subclause (I) or (II), if the Secretary determines
there are extenuating circumstances that justify an
extension in the enrollment period, or
‘‘(IV) the last day of a period determined by the
Secretary to be approved for enrollment after the termi-
nation of a waiver issued pursuant to subsection (c),’’.
SEC. 115. WAIVERS OF TRAINING REQUIREMENTS.
(a) IN GENERAL.—Section 231(c) of the Trade Act of 1974 (19
U.S.C. 2291(c)) is amended to read as follows:
‘‘(c) WAIVERS OF TRAINING REQUIREMENTS.—
‘‘(1) ISSUANCE OF WAIVERS.—The Secretary may issue a
written statement to an adversely affected worker waiving the
requirement to be enrolled in training described in subsection
(a)(5)(A) if the Secretary determines that it is not feasible
or appropriate for the worker, because of 1 or more of the
following reasons:
‘‘(A) RECALL.—The worker has been notified that the
worker will be recalled by the firm from which the separa-
tion occurred.
‘‘(B) MARKETABLE
SKILLS.—The worker possesses
marketable skills for suitable employment (as determined
pursuant to an assessment of the worker, which may
include the profiling system under section 303(j) of the
Social Security Act (42 U.S.C. 503(j)), carried out in accord-
ance with guidelines issued by the Secretary) and there
H. R. 3009—8
is a reasonable expectation of employment at equivalent
wages in the foreseeable future.
‘‘(C) RETIREMENT.—The worker is within 2 years of
meeting all requirements for entitlement to either—
‘‘(i) old-age insurance benefits under title II of
the Social Security Act (42 U.S.C. 401 et seq.) (except
for application therefor); or
‘‘(ii) a private pension sponsored by an employer
or labor organization.
‘‘(D) HEALTH.—The worker is unable to participate in
training due to the health of the worker, except that a
waiver under this subparagraph shall not be construed
to exempt a worker from requirements relating to the
availability for work, active search for work, or refusal
to accept work under Federal or State unemployment com-
pensation laws.
‘‘(E) ENROLLMENT UNAVAILABLE.—The first available
enrollment date for the approved training of the worker
is within 60 days after the date of the determination made
under this paragraph, or, if later, there are extenuating
circumstances for the delay in enrollment, as determined
pursuant to guidelines issued by the Secretary.
‘‘(F) TRAINING NOT AVAILABLE.—Training approved by
the Secretary is not reasonably available to the worker
from either governmental agencies or private sources
(which may include area vocational education schools, as
defined in section 3 of the Carl D. Perkins Vocational
and Technical Education Act of 1998 (20 U.S.C. 2302),
and employers), no training that is suitable for the worker
is available at a reasonable cost, or no training funds
are available.
‘‘(2) DURATION OF WAIVERS.—
‘‘(A) IN GENERAL.—A waiver issued under paragraph
(1) shall be effective for not more than 6 months after
the date on which the waiver is issued, unless the Secretary
determines otherwise.
‘‘(B) REVOCATION.—The Secretary shall revoke a waiver
issued under paragraph (1) if the Secretary determines
that the basis of a waiver is no longer applicable to the
worker and shall notify the worker in writing of the revoca-
tion.
‘‘(3) AGREEMENTS UNDER SECTION 239.—
‘‘(A) ISSUANCE BY COOPERATING STATES.—Pursuant to
an agreement under section 239, the Secretary may
authorize a cooperating State to issue waivers as described
in paragraph (1).
‘‘(B) SUBMISSION
OF
STATEMENTS.—An agreement
under section 239 shall include a requirement that the
cooperating State submit to the Secretary the written state-
ments provided under paragraph (1) and a statement of
the reasons for the waiver.’’.
(b) CONFORMING AMENDMENT.—Section 231(a)(5)(C) of such Act
(19 U.S.C. 2291(a)(5)(C)) is amended by striking ‘‘certified’’.
H. R. 3009—9
SEC. 116. AMENDMENTS TO LIMITATIONS ON TRADE READJUSTMENT
ALLOWANCES.
(a) INCREASE IN MAXIMUM NUMBER OF WEEKS.—Section 233(a)
of the Trade Act of 1974 (19 U.S.C. 2293(a)) is amended—
(1) in paragraph (2), by inserting after ‘‘104-week period’’
the following: ‘‘(or, in the case of an adversely affected worker
who requires a program of remedial education (as described
in section 236(a)(5)(D)) in order to complete training approved
for the worker under section 236, the 130-week period)’’; and
(2) in paragraph (3), by striking ‘‘26’’ each place it appears
and inserting ‘‘52’’.
(b) SPECIAL RULE RELATING TO BREAK IN TRAINING.—Section
233(f) of the Trade Act of 1974 (19 U.S.C. 2293(f)) is amended
in the matter preceding paragraph (1) by striking ‘‘14 days’’ and
inserting ‘‘30 days’’.
(c) ADDITIONAL WEEKS FOR INDIVIDUALS IN NEED OF REMEDIAL
EDUCATION.—Section 233 of the Trade Act of 1974 (19 U.S.C. 2293)
is amended by adding at the end the following:
‘‘(g) Notwithstanding any other provision of this section, in
order to assist an adversely affected worker to complete training
approved for the worker under section 236 which includes a program
of remedial education (as described in section 236(a)(5)(D)), and
in accordance with regulations prescribed by the Secretary, pay-
ments may be made as trade readjustment allowances for up to
26 additional weeks in the 26-week period that follows the last
week of entitlement to trade readjustment allowances otherwise
payable under this chapter.’’.
SEC. 117. ANNUAL TOTAL AMOUNT OF PAYMENTS FOR TRAINING.
Section 236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C.
2296(a)(2)(A)) is amended by striking ‘‘$80,000,000’’ and all that
follows through ‘‘$70,000,000’’ and inserting ‘‘$220,000,000’’.
SEC. 118. PROVISION OF EMPLOYER-BASED TRAINING.
(a) IN GENERAL.—Section 236(a)(5)(A) of the Trade Act of 1974
(19 U.S.C. 2296(a)(5)(A)) is amended to read as follows:
‘‘(A) employer-based training, including—
‘‘(i) on-the-job training, and
‘‘(ii) customized training,’’.
(b) REIMBURSEMENT.—Section 236(c)(8) of such Act (19 U.S.C.
2296(c)(8)) is amended to read as follows:
‘‘(8) the employer is provided reimbursement of not more
than 50 percent of the wage rate of the participant, for the
cost of providing the training and additional supervision related
to the training,’’.
(c) DEFINITION.—Section 236 of such Act (19 U.S.C. 2296) is
amended by adding at the end the following new subsection:
‘‘(f) For purposes of this section, the term ‘customized training’
means training that is—
‘‘(1) designed to meet the special requirements of an
employer or group of employers;
‘‘(2) conducted with a commitment by the employer or
group of employers to employ an individual upon successful
completion of the training; and
‘‘(3) for which the employer pays for a significant portion
(but in no case less than 50 percent) of the cost of such training,
as determined by the Secretary.’’.
H. R. 3009—10
SEC. 119. COORDINATION WITH TITLE I OF THE WORKFORCE INVEST-
MENT ACT OF 1998.
Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is
amended by inserting before the period at the end of the first
sentence the following: ‘‘, including the services provided through
one-stop delivery systems described in section 134(c) of the
Workforce Investment Act of 1998 (29 U.S.C. 2864(c))’’.
SEC. 120. EXPENDITURE PERIOD.
Section 245 of the Trade Act of 1974 (19 U.S.C. 2317), as
amended by section 111(a) of this Act, is further amended by
amending subsection (b) to read as follows:
‘‘(b) PERIOD OF EXPENDITURE.—Funds obligated for any fiscal
year to carry out activities under sections 235 through 238 may
be expended by each State receiving such funds during that fiscal
year and the succeeding two fiscal years.’’.
SEC. 121. JOB SEARCH ALLOWANCES.
Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is
amended to read as follows:
‘‘SEC. 237. JOB SEARCH ALLOWANCES.
‘‘(a) JOB SEARCH ALLOWANCE AUTHORIZED.—
‘‘(1) IN GENERAL.—An adversely affected worker covered
by a certification issued under subchapter A of this chapter
may file an application with the Secretary for payment of
a job search allowance.
‘‘(2) APPROVAL OF APPLICATIONS.—The Secretary may grant
an allowance pursuant to an application filed under paragraph
(1) when all of the following apply:
‘‘(A) ASSIST ADVERSELY AFFECTED WORKER.—The allow-
ance is paid to assist an adversely affected worker who
has been totally separated in securing a job within the
United States.
‘‘(B) LOCAL
EMPLOYMENT
NOT
AVAILABLE.—The Sec-
retary determines that the worker cannot reasonably be
expected to secure suitable employment in the commuting
area in which the worker resides.
‘‘(C) APPLICATION.—The worker has filed an application
for the allowance with the Secretary before—
‘‘(i) the later of—
‘‘(I) the 365th day after the date of the certifi-
cation under which the worker is certified as
eligible; or
‘‘(II) the 365th day after the date of the
worker’s last total separation; or
‘‘(ii) the date that is the 182d day after the date
on which the worker concluded training, unless the
worker received a waiver under section 231(c).
‘‘(b) AMOUNT OF ALLOWANCE.—
‘‘(1) IN GENERAL.—An allowance granted under subsection
(a) shall provide reimbursement to the worker of 90 percent
of the cost of necessary job search expenses as prescribed by
the Secretary in regulations.
‘‘(2) MAXIMUM
ALLOWANCE.—Reimbursement under this
subsection may not exceed $1,250 for any worker.
‘‘(3) ALLOWANCE FOR SUBSISTENCE AND TRANSPORTATION.—
Reimbursement under this subsection may not be made for
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subsistence and transportation expenses at levels exceeding
those allowable under section 236(b) (1) and (2).
‘‘(c) EXCEPTION.—Notwithstanding subsection (b), the Secretary
shall reimburse any adversely affected worker for necessary
expenses incurred by the worker in participating in a job search
program approved by the Secretary.’’.
SEC. 122. RELOCATION ALLOWANCES.
Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is
amended to read as follows:
‘‘SEC. 238. RELOCATION ALLOWANCES.
‘‘(a) RELOCATION ALLOWANCE AUTHORIZED.—
‘‘(1) IN GENERAL.—Any adversely affected worker covered
by a certification issued under subchapter A of this chapter
may file an application for a relocation allowance with the
Secretary, and the Secretary may grant the relocation allow-
ance, subject to the terms and conditions of this section.
‘‘(2) CONDITIONS FOR GRANTING ALLOWANCE.—A relocation
allowance may be granted if all of the following terms and
conditions are met:
‘‘(A) ASSIST
AN
ADVERSELY
AFFECTED
WORKER.—The
relocation allowance will assist an adversely affected
worker in relocating within the United States.
‘‘(B) LOCAL
EMPLOYMENT
NOT
AVAILABLE.—The Sec-
retary determines that the worker cannot reasonably be
expected to secure suitable employment in the commuting
area in which the worker resides.
‘‘(C) TOTAL SEPARATION.—The worker is totally sepa-
rated from employment at the time relocation commences.
‘‘(D) SUITABLE EMPLOYMENT OBTAINED.—The worker—
‘‘(i) has obtained suitable employment affording
a reasonable expectation of long-term duration in the
area in which the worker wishes to relocate; or
‘‘(ii) has obtained a bona fide offer of such employ-
ment.
‘‘(E) APPLICATION.—The worker filed an application
with the Secretary before—
‘‘(i) the later of—
‘‘(I) the 425th day after the date of the certifi-
cation under subchapter A of this chapter; or
‘‘(II) the 425th day after the date of the
worker’s last total separation; or
‘‘(ii) the date that is the 182d day after the date
on which the worker concluded training, unless the
worker received a waiver under section 231(c).
‘‘(b) AMOUNT OF ALLOWANCE.—The relocation allowance granted
to a worker under subsection (a) includes—
‘‘(1) 90 percent of the reasonable and necessary expenses
(including, but not limited to, subsistence and transportation
expenses at levels not exceeding those allowable under section
236(b) (1) and (2) specified in regulations prescribed by the
Secretary, incurred in transporting the worker, the worker’s
family, and household effects; and
‘‘(2) a lump sum equivalent to 3 times the worker’s average
weekly wage, up to a maximum payment of $1,250.
‘‘(c) LIMITATIONS.—A relocation allowance may not be granted
to a worker unless—
H. R. 3009—12
‘‘(1) the relocation occurs within 182 days after the filing
of the application for relocation assistance; or
‘‘(2) the relocation occurs within 182 days after the conclu-
sion of training, if the worker entered a training program
approved by the Secretary under section 236(b) (1) and (2).’’.
SEC. 123. REPEAL OF NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE
PROGRAM.
(a) IN GENERAL.—Subchapter D of chapter 2 of title II of
such Act (19 U.S.C. 2331) is repealed.
(b) CONFORMING AMENDMENTS.—
(1) Section 225(b) (1) and (2) of the Trade Act of 1974
(19 U.S.C. 2275(b) (1) and (2)) is amended by striking ‘‘or
subchapter D’’ each place it appears.
(2) Section 249A of such Act (19 U.S.C. 2322) is repealed.
(3) The table of contents of such Act is amended—
(A) by striking the item relating to section 249A; and
(B) by striking the items relating to subchapter D
of chapter 2 of title II.
(4) Section 284(a) of such Act is amended by striking ‘‘or
section 250(c)’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
shall apply with respect to petitions filed under chapter 2
of title II of the Trade Act of 1974, on or after the date
that is 90 days after the date of enactment of this Act.
(2) WORKERS
CERTIFIED
AS
ELIGIBLE
BEFORE
EFFECTIVE
DATE.—Notwithstanding subsection (a), a worker receiving
benefits under chapter 2 of title II of the Trade Act of 1974
shall continue to receive (or be eligible to receive) benefits
and services under chapter 2 of title II of the Trade Act of
1974, as in effect on the day before the amendments made
by this section take effect under subsection (a), for any week
for which the worker meets the eligibility requirements of such
chapter 2 as in effect on such date.
SEC. 124. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE
ADJUSTMENT ASSISTANCE FOR OLDER WORKERS.
(a) DEMONSTRATION PROGRAM.—Chapter 2 of title II of the
Trade Act of 1974 (19 U.S.C. 2271 et seq.) is amended by striking
section 246 and inserting the following new section:
‘‘SEC. 246. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE
ADJUSTMENT ASSISTANCE FOR OLDER WORKERS.
‘‘(a) IN GENERAL.—
‘‘(1) ESTABLISHMENT.—Not later than 1 year after the date
of enactment of the Trade Adjustment Assistance Reform Act
of 2002, the Secretary shall establish an alternative trade
adjustment assistance program for older 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
H. R. 3009—13
‘‘(ii) the wages received by the worker at the time
of separation.
‘‘(B) HEALTH INSURANCE.—A worker described in para-
graph (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 alternative
trade adjustment assistance program under this sec-
tion at the time the petition is filed.
‘‘(ii) CRITERIA.—In determining whether to certify
a group of workers as eligible for the alternative trade
adjustment assistance program, the Secretary shall
consider the following criteria:
‘‘(I) Whether a significant number of workers
in the workers’ firm are 50 years of age or older.
‘‘(II) Whether the workers in the workers’ firm
possess skills that are not easily transferable.
‘‘(III) The competitive conditions within the
workers’ industry.
‘‘(iii) DEADLINE.—The Secretary shall determine
whether the workers in the group are eligible for the
alternative trade adjustment assistance 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 alter-
native trade adjustment assistance program may elect to
receive benefits under the alternative trade adjustment
assistance 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;
‘‘(iii) is at least 50 years of age; and
‘‘(iv) earns not more than $50,000 a year in wages
from reemployment;
‘‘(v) is employed on a full-time basis as defined
by State law in the State in which the worker is
employed; and
‘‘(vi) 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 pursu-
ant to the program established under paragraph (1), the worker
shall not be eligible to receive any other benefits under this
title.
‘‘(b) TERMINATION.—
H. R. 3009—14
‘‘(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 sub-
section (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) TABLE OF CONTENTS.—The Trade Act of 1974 (U.S.C. et
seq.) is amended in the table of contents by inserting after the
item relating to section 245 the following new item:
‘‘Sec. 246.
Demonstration project for alternative trade adjustment assistance for
older workers.’’.
SEC. 125. DECLARATION OF POLICY; SENSE OF CONGRESS.
(a) DECLARATION OF POLICY.—Congress reiterates that, under
the trade adjustment assistance program under chapter 2 of title
II of the Trade Act of 1974, workers are eligible for transportation,
childcare, and healthcare assistance, as well as other related assist-
ance under programs administered by the Department of Labor.
(b) SENSE
OF CONGRESS.—It is the sense of Congress that
the Secretary of Labor, working independently and in conjunction
with the States, should, in accordance with section 225 of the
Trade Act of 1974, provide more specific information about benefit
allowances, training, and other employment services, and the peti-
tion and application procedures (including appropriate filing dates)
for such allowances, training, and services, under the trade adjust-
ment assistance program under chapter 2 of title II of the Trade
Act of 1974 to workers who are applying for, or are certified to
receive, assistance under that program, including information on
all other Federal assistance available to such workers.
Subtitle B—Trade Adjustment Assistance
For Firms
SEC. 131. REAUTHORIZATION OF PROGRAM.
Section 256(b) of chapter 3 of title II of the Trade Act of
1974 (19 U.S.C. 2346(b)) is amended to read as follows:
‘‘(b) There are authorized to be appropriated to the Secretary
$16,000,000 for each of fiscal years 2003 through 2007, to carry
out the Secretary’s functions under this chapter in connection with
furnishing adjustment assistance to firms. Amounts appropriated
under this subsection shall remain available until expended.’’.
Subtitle C—Trade Adjustment Assistance
For Farmers
SEC. 141. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.
(a) IN GENERAL.—Title II of the Trade Act of 1974 (19 U.S.C.
2251 et seq.) is amended by adding at the end the following new
chapter:
H. R. 3009—15
‘‘CHAPTER 6—ADJUSTMENT ASSISTANCE FOR FARMERS
‘‘SEC. 291. DEFINITIONS.
‘‘In this chapter:
‘‘(1) AGRICULTURAL
COMMODITY.—The term ‘agricultural
commodity’ means any agricultural commodity (including live-
stock) in its raw or natural state.
‘‘(2) AGRICULTURAL COMMODITY PRODUCER.—The term ‘agri-
cultural commodity producer’ has the same meaning as the
term ‘person’ as prescribed by regulations promulgated under
section 1001(5) of the Food Security Act of 1985 (7 U.S.C.
1308(5)).
‘‘(3) CONTRIBUTED IMPORTANTLY.—
‘‘(A) IN GENERAL.—The term ‘contributed importantly’
means a cause which is important but not necessarily
more important than any other cause.
‘‘(B) DETERMINATION OF CONTRIBUTED IMPORTANTLY.—
The determination of whether imports of articles like or
directly competitive with an agricultural commodity with
respect to which a petition under this chapter was filed
contributed importantly to a decline in the price of the
agricultural commodity shall be made by the Secretary.
‘‘(4) DULY AUTHORIZED REPRESENTATIVE.—The term ‘duly
authorized representative’ means an association of agricultural
commodity producers.
‘‘(5) NATIONAL AVERAGE PRICE.—The term ‘national average
price’ means the national average price paid to an agricultural
commodity producer for an agricultural commodity in a mar-
keting year as determined by the Secretary.
‘‘(6) SECRETARY.—The term ‘Secretary’ means the Secretary
of Agriculture.
‘‘SEC. 292. PETITIONS; GROUP ELIGIBILITY.
‘‘(a) IN GENERAL.—A petition for a certification of eligibility
to apply for adjustment assistance under this chapter may be filed
with the Secretary by a group of agricultural commodity producers
or by their duly authorized representative. Upon receipt of the
petition, the Secretary shall promptly publish notice in the Federal
Register that the Secretary has received the petition and initiated
an investigation.
‘‘(b) HEARINGS.—If the petitioner, or any other person found
by the Secretary to have a substantial interest in the proceedings,
submits not later than 10 days after the date of the Secretary’s
publication under subsection (a) a request for a hearing, the Sec-
retary shall provide for a public hearing and afford such interested
person an opportunity to be present, to produce evidence, and
to be heard.
‘‘(c) GROUP ELIGIBILITY REQUIREMENTS.—The Secretary shall
certify a group of agricultural commodity producers as eligible to
apply for adjustment assistance under this chapter if the Secretary
determines—
‘‘(1) that the national average price for the agricultural
commodity, or a class of goods within the agricultural com-
modity, produced by the group for the most recent marketing
year for which the national average price is available is less
than 80 percent of the average of the national average price
for such agricultural commodity, or such class of goods, for
H. R. 3009—16
the 5 marketing years preceding the most recent marketing
year; and
‘‘(2) that increases in imports of articles like or directly
competitive with the agricultural commodity, or class of goods
within the agricultural commodity, produced by the group
contributed importantly to the decline in price described in
paragraph (1).
‘‘(d) SPECIAL RULE
FOR QUALIFIED SUBSEQUENT YEARS.—A
group of agricultural commodity producers certified as eligible under
section 293 shall be eligible to apply for assistance under this
chapter in any qualified year after the year the group is first
certified, if the Secretary determines that—
‘‘(1) the national average price for the agricultural com-
modity, or class of goods within the agricultural commodity,
produced by the group for the most recent marketing year
for which the national average price is available is equal to
or less than the price determined under subsection (c)(1); and
‘‘(2) the requirements of subsection (c)(2) are met.
‘‘(e) DETERMINATION OF QUALIFIED YEAR AND COMMODITY.—
In this chapter:
‘‘(1) QUALIFIED
YEAR.—The term ‘qualified year’, with
respect to a group of agricultural commodity producers certified
as eligible under section 293, means each consecutive year
after the year in which the group is certified and in which
the Secretary makes the determination under subsection (c)
or (d), as the case may be.
‘‘(2) CLASSES OF GOODS WITHIN A COMMODITY.—In any case
in which there are separate classes of goods within an agricul-
tural commodity, the Secretary shall treat each class as a
separate commodity in determining group eligibility, the
national average price, and level of imports under this section
and section 296.
‘‘SEC. 293. DETERMINATIONS BY SECRETARY OF AGRICULTURE.
‘‘(a) IN GENERAL.—As soon as practicable after the date on
which a petition is filed under section 292, but in any event not
later than 40 days after that date, the Secretary shall determine
whether the petitioning group meets the requirements of section
292 (c) or (d), as the case may be, and shall, if the group meets
the requirements, issue a certification of eligibility to apply for
assistance under this chapter covering agricultural commodity pro-
ducers in any group that meets the requirements. Each certification
shall specify the date on which eligibility under this chapter begins.
‘‘(b) NOTICE.—Upon making a determination on a petition, the
Secretary shall promptly publish a summary of the determination
in the Federal Register, together with the Secretary’s reasons for
making the determination.
‘‘(c) TERMINATION OF CERTIFICATION.—Whenever the Secretary
determines, with respect to any certification of eligibility under
this chapter, that the decline in price for the agricultural commodity
covered by the certification is no longer attributable to the condi-
tions described in section 292, the Secretary shall terminate such
certification and promptly cause notice of such termination to be
published in the Federal Register, together with the Secretary’s
reasons for making such determination.
H. R. 3009—17
‘‘SEC. 294. STUDY BY SECRETARY OF AGRICULTURE WHEN INTER-
NATIONAL TRADE COMMISSION BEGINS INVESTIGATION.
‘‘(a) IN GENERAL.—Whenever the International Trade Commis-
sion (in this chapter referred to as the ‘Commission’) begins an
investigation under section 202 with respect to an agricultural
commodity, the Commission shall immediately notify the Secretary
of the investigation. Upon receipt of the notification, the Secretary
shall immediately conduct a study of—
‘‘(1) the number of agricultural commodity producers pro-
ducing a like or directly competitive agricultural commodity
who have been or are likely to be certified as eligible for
adjustment assistance under this chapter, and
‘‘(2) the extent to which the adjustment of such producers
to the import competition may be facilitated through the use
of existing programs.
‘‘(b) REPORT.—Not later than 15 days after the day on which
the Commission makes its report under section 202(f), the Secretary
shall submit a report to the President setting forth the findings
of the study described in subsection (a). Upon making the report
to the President, the Secretary shall also promptly make the report
public (with the exception of information which the Secretary deter-
mines to be confidential) and shall have a summary of the report
published in the Federal Register.
‘‘SEC. 295. BENEFIT INFORMATION TO AGRICULTURAL COMMODITY
PRODUCERS.
‘‘(a) IN GENERAL.—The Secretary shall provide full information
to agricultural commodity producers about the benefit allowances,
training, and other employment services available under this title
and about the petition and application procedures, and the appro-
priate filing dates, for such allowances, training, and services. The
Secretary shall provide whatever assistance is necessary to enable
groups to prepare petitions or applications for program benefits
under this title.
‘‘(b) NOTICE OF BENEFITS.—
‘‘(1) IN GENERAL.—The Secretary shall mail written notice
of the benefits available under this chapter to each agricultural
commodity producer that the Secretary has reason to believe
is covered by a certification made under this chapter.
‘‘(2) OTHER
NOTICE.—The Secretary shall publish notice
of the benefits available under this chapter to agricultural
commodity producers that are covered by each certification
made under this chapter in newspapers of general circulation
in the areas in which such producers reside.
‘‘(3) OTHER FEDERAL ASSISTANCE.—The Secretary shall also
provide information concerning procedures for applying for and
receiving all other Federal assistance and services available
to workers facing economic distress.
‘‘SEC. 296. QUALIFYING REQUIREMENTS FOR AGRICULTURAL COM-
MODITY PRODUCERS.
‘‘(a) IN GENERAL.—
‘‘(1) REQUIREMENTS.—Payment of a trade adjustment allow-
ance shall be made to an adversely affected agricultural com-
modity producer covered by a certification under this chapter
who files an application for such allowance within 90 days
after the date on which the Secretary makes a determination
H. R. 3009—18
and issues a certification of eligibility under section 293, if
the following conditions are met:
‘‘(A) The producer submits to the Secretary sufficient
information to establish the amount of agricultural com-
modity covered by the application filed under subsection
(a) that was produced by the producer in the most recent
year.
‘‘(B) The producer certifies that the producer has not
received cash benefits under any provision of this title
other than this chapter.
‘‘(C) The producer’s net farm income (as determined
by the Secretary) for the most recent year is less than
the producer’s net farm income for the latest year in which
no adjustment assistance was received by the producer
under this chapter.
‘‘(D) The producer certifies that the producer has met
with an Extension Service employee or agent to obtain,
at no cost to the producer, information and technical assist-
ance that will assist the producer in adjusting to import
competition with respect to the adversely affected agricul-
tural commodity, including—
‘‘(i) information regarding the feasibility and desir-
ability of substituting 1 or more alternative commod-
ities for the adversely affected agricultural commodity;
and
‘‘(ii) technical assistance that will improve the
competitiveness of the production and marketing of
the adversely affected agricultural commodity by the
producer, including yield and marketing improvements.
‘‘(2) LIMITATIONS.—
‘‘(A) ADJUSTED GROSS INCOME.—
‘‘(i) IN
GENERAL.—Notwithstanding any other
provision of this chapter, an agricultural commodity
producer shall not be eligible for assistance under this
chapter in any year in which the average adjusted
gross income of the producer exceeds the level set
forth in section 1001D of the Food Security Act of
1985.
‘‘(ii) CERTIFICATION.—To comply with the limita-
tion under subparagraph (A), an individual or entity
shall provide to the Secretary—
‘‘(I) a certification by a certified public account-
ant or another third party that is acceptable to
the Secretary that the average adjusted gross
income of the producer does not exceed the level
set forth in section 1001D of the Food Security
Act of 1985; or
‘‘(II) information and documentation regarding
the adjusted gross income of the producer through
other procedures established by the Secretary.
‘‘(B) COUNTER-CYCLICAL PAYMENTS.—The total amount
of payments made to an agricultural producer under this
chapter during any crop year may not exceed the limitation
on counter-cyclical payments set forth in section 1001(c)
of the Food Security Act of 1985.
‘‘(C) DEFINITIONS.—In this subsection:
H. R. 3009—19
‘‘(i) ADJUSTED GROSS INCOME.—The term ‘adjusted
gross income’ means adjusted gross income of an agri-
cultural commodity producer—
‘‘(I) as defined in section 62 of the Internal
Revenue Code of 1986 and implemented in accord-
ance with procedures established by the Secretary;
and
‘‘(II) that is earned directly or indirectly from
all agricultural and nonagricultural sources of an
individual or entity for a fiscal or corresponding
crop year.
‘‘(ii) AVERAGE ADJUSTED GROSS INCOME.—
‘‘(I) IN GENERAL.—The term ‘average adjusted
gross income’ means the average adjusted gross
income of a producer for each of the 3 preceding
taxable years.
‘‘(II) EFFECTIVE ADJUSTED GROSS INCOME.—In
the case of a producer that does not have an
adjusted gross income for each of the 3 preceding
taxable years, the Secretary shall establish rules
that provide the producer with an effective
adjusted gross income for the applicable year.
‘‘(b) AMOUNT OF CASH BENEFITS.—
‘‘(1) IN GENERAL.—Subject to the provisions of section 298,
an 
adversely 
affected 
agricultural 
commodity 
producer
described in subsection (a) shall be entitled to adjustment
assistance under this chapter in an amount equal to the product
of—
‘‘(A) one-half of the difference between—
‘‘(i) an amount equal to 80 percent of the average
of the national average price of the agricultural com-
modity covered by the application described in sub-
section (a) for the 5 marketing years preceding the
most recent marketing year, and
‘‘(ii) the national average price of the agricultural
commodity for the most recent marketing year, and
‘‘(B) the amount of the agricultural commodity pro-
duced by the agricultural commodity producer in the most
recent marketing year.
‘‘(2) SPECIAL RULE FOR SUBSEQUENT QUALIFIED YEARS.—
The amount of cash benefits for a qualified year shall be deter-
mined in the same manner as cash benefits are determined
under paragraph (1) except that the average national price
of the agricultural commodity shall be determined under para-
graph (1)(A)(i) by using the 5-marketing-year period used to
determine the amount of cash benefits for the first certification.
‘‘(c) MAXIMUM AMOUNT OF CASH ASSISTANCE.—The maximum
amount of cash benefits an agricultural commodity producer may
receive in any 12-month period shall not exceed $10,000.
‘‘(d) LIMITATIONS ON OTHER ASSISTANCE.—An agricultural com-
modity producer entitled to receive a cash benefit under this
chapter—
‘‘(1) shall not be eligible for any other cash benefit under
this title, and
‘‘(2) shall be entitled to employment services and training
benefits under part II of subchapter B of chapter 2.
H. R. 3009—20
‘‘SEC. 297. FRAUD AND RECOVERY OF OVERPAYMENTS.
‘‘(a) IN GENERAL.—
‘‘(1) REPAYMENT.—If the Secretary, or a court of competent
jurisdiction, determines that any person has received any pay-
ment under this chapter to which the person was not entitled,
such person shall be liable to repay such amount to the Sec-
retary, except that the Secretary may waive such repayment
if the Secretary determines, in accordance with guidelines pre-
scribed by the Secretary, that—
‘‘(A) the payment was made without fault on the part
of such person; and
‘‘(B) requiring such repayment would be contrary to
equity and good conscience.
‘‘(2) RECOVERY OF OVERPAYMENT.—Unless an overpayment
is otherwise recovered, or waived under paragraph (1), the
Secretary shall recover the overpayment by deductions from
any sums payable to such person under this chapter.
‘‘(b) FALSE STATEMENT.—A person shall, in addition to any
other penalty provided by law, be ineligible for any further pay-
ments under this chapter—
‘‘(1) if the Secretary, or a court of competent jurisdiction,
determines that the person—
‘‘(A) knowingly has made, or caused another to make,
a false statement or representation of a material fact; or
‘‘(B) knowingly has failed, or caused another to fail,
to disclose a material fact; and
‘‘(2) as a result of such false statement or representation,
or of such nondisclosure, such person has received any payment
under this chapter to which the person was not entitled.
‘‘(c) NOTICE
AND DETERMINATION.—Except for overpayments
determined by a court of competent jurisdiction, no repayment
may be required, and no deduction may be made, under this section
until a determination under subsection (a)(1) by the Secretary has
been made, notice of the determination and an opportunity for
a fair hearing thereon has been given to the person concerned,
and the determination has become final.
‘‘(d) PAYMENT TO TREASURY.—Any amount recovered under this
section shall be returned to the Treasury of the United States.
‘‘(e) PENALTIES.—Whoever makes a false statement of a mate-
rial fact knowing it to be false, or knowingly fails to disclose
a material fact, for the purpose of obtaining or increasing for
himself or for any other person any payment authorized to be
furnished under this chapter shall be fined not more than $10,000
or imprisoned for not more than 1 year, or both.
‘‘SEC. 298. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be appropriated
and there are appropriated to the Department of Agriculture not
to exceed $90,000,000 for each of the fiscal years 2003 through
2007 to carry out the purposes of this chapter.
‘‘(b) PROPORTIONATE REDUCTION.—If in any year the amount
appropriated under this chapter is insufficient to meet the require-
ments for adjustment assistance payable under this chapter, the
amount of assistance payable under this chapter shall be reduced
proportionately.’’.
H. R. 3009—21
(b) EFFECTIVE DATE.—The amendments made by this title shall
take effect on the date that is 180 days after the date of enactment
of this Act.
SEC. 142. CONFORMING AMENDMENTS.
(a) JUDICIAL REVIEW.—
(1) Section 284(a) of the Trade Act of 1974 (19 U.S.C.
2395(a)) is amended—
(A) by inserting ‘‘an agricultural commodity producer
(as defined in section 291(2)) aggrieved by a determination
of the Secretary of Agriculture under section 293, ’’ after
‘‘section 251 of this title,’’; and
(B) in the second sentence of subsection (a) and in
subsections (b) and (c), by striking ‘‘or the Secretary of
Commerce’’ each place it appears and inserting ‘‘, the Sec-
retary of Commerce, or the Secretary of Agriculture’’.
(b) CHAPTERS 6.—The table of contents for title II of the Trade
Act of 1974, as amended by subparagraph (A), is amended by
inserting after the items relating to chapter 5 the 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.’’.
SEC. 143. STUDY ON TAA FOR FISHERMEN.
Not later than 1 year after the date of enactment of this
Act, the Secretary of Commerce shall conduct a study and report
to Congress regarding whether a trade adjustment assistance pro-
gram is appropriate and feasible for fishermen. For purposes of
the preceding sentence, the term ‘‘fishermen’’ means any person
who is engaged in commercial fishing or is a United States fish
processor.
Subtitle D—Effective Date
SEC. 151. EFFECTIVE DATE.
(a) IN GENERAL.—Except as otherwise provided in sections
123(c) and 141(b), and subsections (b), (c), and (d) of this section,
the amendments made by this division shall apply to petitions
for certification filed under chapter 2 or 3 of title II of the Trade
Act of 1974 on or after the date that is 90 days after the date
of enactment of this Act.
(b) WORKERS
CERTIFIED
AS
ELIGIBLE
BEFORE
EFFECTIVE
DATE.—Notwithstanding subsection (a), a worker shall continue
to receive (or be eligible to receive) trade adjustment assistance
and other benefits under chapter 2 of title II of the Trade Act
of 1974, as in effect on September 30, 2001, for any week for
which the worker meets the eligibility requirements of such chapter
2 as in effect on such date, if on or before such date, the worker—
(1) was certified as eligible for trade adjustment assistance
benefits under such chapter as in effect on such date; and
H. R. 3009—22
(2) would otherwise be eligible to receive trade adjustment
assistance benefits under such chapter as in effect on such
date.
(c) WORKERS
WHO
BECAME
ELIGIBLE
DURING
QUALIFIED
PERIOD.—
(1) IN GENERAL.—Notwithstanding subsection (a) or any
other provision of law, including section 285 of the Trade Act
of 1974, any worker who would have been eligible to receive
trade adjustment assistance or other benefits under chapter
2 of title II of the Trade Act of 1974 during the qualified
period if such chapter 2 had been in effect during such period,
shall be eligible to receive trade adjustment assistance and
other benefits under chapter 2 of title II of the Trade Act
of 1974, as in effect on September 30, 2001, for any week
during the qualified period for which the worker meets the
eligibility requirements of such chapter 2 as in effect on Sep-
tember 30, 2001.
(2) QUALIFIED PERIOD.—For purposes of this subsection,
the term ‘‘qualified period’’ means the period beginning on
January 11, 2002, and ending on the date that is 90 days
after the date of enactment of this Act.
(d) ADJUSTMENT ASSISTANCE FOR FIRMS.—
(1) IN GENERAL.—Notwithstanding subsection (a) or any
other provision of law, including section 285 of the Trade Act
of 1974, and except as provided in paragraph (2), any firm
that would have been eligible to receive adjustment assistance
under chapter 3 of title II of the Trade Act if 1974 during
the qualified period if such chapter 3 had been in effect during
such period, shall be eligible to receive adjustment assistance
under chapter 3 of title II of the Trade Act of 1974, as in
effect on September 30, 2001, for any week during the qualified
period for which the firm meets the eligibility requirements
of such chapter 3 as in effect on September 30, 2001.
(2) QUALIFIED PERIOD.—For purposes of this subsection,
the term ‘‘qualified period’’ means the period beginning on
October 1, 2001, and ending on the date that is 90 days after
the date of enactment of this Act.
TITLE II—CREDIT FOR HEALTH INSUR-
ANCE COSTS OF ELIGIBLE INDIVID-
UALS
SEC. 201. CREDIT FOR HEALTH INSURANCE COSTS OF INDIVIDUALS
RECEIVING A TRADE READJUSTMENT ALLOWANCE OR
A BENEFIT FROM THE PENSION BENEFIT GUARANTY
CORPORATION.
(a) IN GENERAL.—Subpart C of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to refund-
able credits) is amended by redesignating section 35 as section
36 and inserting after section 34 the following new section:
‘‘SEC. 35. HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.
‘‘(a) IN GENERAL.—In the case of an individual, there shall
be allowed as a credit against the tax imposed by subtitle A an
amount equal to 65 percent of the amount paid by the taxpayer
H. R. 3009—23
for coverage of the taxpayer and qualifying family members under
qualified health insurance for eligible coverage months beginning
in the taxable year.
‘‘(b) ELIGIBLE
COVERAGE
MONTH.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘eligible coverage month’ means
any month if—
‘‘(A) as of the first day of such month, the taxpayer—
‘‘(i) is an eligible individual,
‘‘(ii) is covered by qualified health insurance, the
premium for which is paid by the taxpayer,
‘‘(iii) does not have other specified coverage, and
‘‘(iv) is not imprisoned under Federal, State, or
local authority, and
‘‘(B) such month begins more than 90 days after the
date of the enactment of the Trade Act of 2002.
‘‘(2) JOINT RETURNS.—In the case of a joint return, the
requirements of paragraph (1)(A) shall be treated as met with
respect to any month if at least 1 spouse satisfies such require-
ments.
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘eligible individual’ means—
‘‘(A) an eligible TAA recipient,
‘‘(B) an eligible alternative TAA recipient, and
‘‘(C) an eligible PBGC pension recipient.
‘‘(2) ELIGIBLE
TAA
RECIPIENT.—The term ‘eligible TAA
recipient’ means, with respect to any month, any individual
who is receiving for any day of such month a trade readjustment
allowance under chapter 2 of title II of the Trade Act of 1974
or who would be eligible to receive such allowance if section
231 of such Act were applied without regard to subsection
(a)(3)(B) of such section. An individual shall continue to be
treated as an eligible TAA recipient during the first month
that such individual would otherwise cease to be an eligible
TAA recipient by reason of the preceding sentence.
‘‘(3) ELIGIBLE
ALTERNATIVE
TAA
RECIPIENT.—The term
‘eligible alternative TAA recipient’ means, with respect to any
month, any individual who—
‘‘(A) is a worker described in section 246(a)(3)(B) of
the Trade Act of 1974 who is participating in the program
established under section 246(a)(1) of such Act, and
‘‘(B) is receiving a benefit for such month under section
246(a)(2) of such Act.
An individual shall continue to be treated as an eligible alter-
native TAA recipient during the first month that such indi-
vidual would otherwise cease to be an eligible alternative TAA
recipient by reason of the preceding sentence.
‘‘(4) ELIGIBLE PBGC PENSION RECIPIENT.—The term ‘eligible
PBGC pension recipient’ means, with respect to any month,
any individual who—
‘‘(A) has attained age 55 as of the first day of such
month, and
‘‘(B) is receiving a benefit for such month any portion
of which is paid by the Pension Benefit Guaranty Corpora-
tion under title IV of the Employee Retirement Income
Security Act of 1974.
H. R. 3009—24
‘‘(d) QUALIFYING
FAMILY
MEMBER.—For purposes of this
section—
‘‘(1) IN
GENERAL.—The term ‘qualifying family member’
means—
‘‘(A) the taxpayer’s spouse, and
‘‘(B) any dependent of the taxpayer with respect to
whom the taxpayer is entitled to a deduction under section
151(c).
Such term does not include any individual who has other speci-
fied coverage.
‘‘(2) SPECIAL DEPENDENCY TEST IN CASE OF DIVORCED PAR-
ENTS, ETC.—If paragraph (2) or (4) of section 152(e) applies
to any child with respect to any calendar year, in the case
of any taxable year beginning in such calendar year, such
child shall be treated as described in paragraph (1)(B) with
respect to the custodial parent (within the meaning of section
152(e)(1)) and not with respect to the noncustodial parent.
‘‘(e) QUALIFIED HEALTH INSURANCE.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘qualified health insurance’
means any of the following:
‘‘(A) Coverage under a COBRA continuation provision
(as defined in section 9832(d)(1)).
‘‘(B) State-based continuation coverage provided by the
State under a State law that requires such coverage.
‘‘(C) Coverage offered through a qualified State high
risk pool (as defined in section 2744(c)(2) of the Public
Health Service Act).
‘‘(D) Coverage under a health insurance program
offered for State employees.
‘‘(E) Coverage under a State-based health insurance
program that is comparable to the health insurance pro-
gram offered for State employees.
‘‘(F) Coverage through an arrangement entered into
by a State and—
‘‘(i) a group health plan (including such a plan
which is a multiemployer plan as defined in section
3(37) of the Employee Retirement Income Security Act
of 1974),
‘‘(ii) an issuer of health insurance coverage,
‘‘(iii) an administrator, or
‘‘(iv) an employer.
‘‘(G) Coverage offered through a State arrangement
with a private sector health care coverage purchasing pool.
‘‘(H) Coverage under a State-operated health plan that
does not receive any Federal financial participation.
‘‘(I) Coverage under a group health plan that is avail-
able through the employment of the eligible individual’s
spouse.
‘‘(J) In the case of any eligible individual and such
individual’s qualifying family members, coverage under
individual health insurance if the eligible individual was
covered under individual health insurance during the entire
30-day period that ends on the date that such individual
became separated from the employment which qualified
such individual for—
H. R. 3009—25
‘‘(i) in the case of an eligible TAA recipient, the
allowance described in subsection (c)(2),
‘‘(ii) in the case of an eligible alternative TAA
recipient, the benefit described in subsection (c)(3)(B),
or
‘‘(iii) in the case of any eligible PBGC pension
recipient, the benefit described in subsection (c)(4)(B).
For purposes of this subparagraph, the term ‘individual
health insurance’ means any insurance which constitutes
medical care offered to individuals other than in connection
with a group health plan and does not include Federal-
or State-based health insurance coverage.
‘‘(2) REQUIREMENTS FOR STATE-BASED COVERAGE.—
‘‘(A) IN GENERAL.—The term ‘qualified health insur-
ance’ does not include any coverage described in subpara-
graphs (B) through (H) of paragraph (1) unless the State
involved has elected to have such coverage treated as quali-
fied health insurance under this section and such coverage
meets the following requirements:
‘‘(i) GUARANTEED
ISSUE.—Each qualifying indi-
vidual is guaranteed enrollment if the individual pays
the premium for enrollment or provides a qualified
health insurance costs credit eligibility certificate
described in section 7527 and pays the remainder of
such premium.
‘‘(ii) NO
IMPOSITION
OF
PREEXISTING
CONDITION
EXCLUSION.—No pre-existing condition limitations are
imposed with respect to any qualifying individual.
‘‘(iii) NONDISCRIMINATORY
PREMIUM.—The total
premium (as determined without regard to any sub-
sidies) with respect to a qualifying individual may
not be greater than the total premium (as so deter-
mined) for a similarly situated individual who is not
a qualifying individual.
‘‘(iv) SAME BENEFITS.—Benefits under the coverage
are the same as (or substantially similar to) the bene-
fits provided to similarly situated individuals who are
not qualifying individuals.
‘‘(B) QUALIFYING
INDIVIDUAL.—For purposes of this
paragraph, the term ‘qualifying individual’ means—
‘‘(i) an eligible individual for whom, as of the date
on which the individual seeks to enroll in the coverage
described in subparagraphs (B) through (H) of para-
graph (1), the aggregate of the periods of creditable
coverage (as defined in section 9801(c)) is 3 months
or longer and who, with respect to any month, meets
the requirements of clauses (iii) and (iv) of subsection
(b)(1)(A); and
‘‘(ii) the qualifying family members of such eligible
individual.
‘‘(3) EXCEPTION.—The term ‘qualified health insurance’
shall not include—
‘‘(A) a flexible spending or similar arrangement, and
‘‘(B) any insurance if substantially all of its coverage
is of excepted benefits described in section 9832(c).
H. R. 3009—26
‘‘(f) OTHER SPECIFIED COVERAGE.—For purposes of this section,
an individual has other specified coverage for any month if, as
of the first day of such month—
‘‘(1) SUBSIDIZED COVERAGE.—
‘‘(A) IN GENERAL.—Such individual is covered under
any insurance which constitutes medical care (except insur-
ance substantially all of the coverage of which is of excepted
benefits described in section 9832(c)) under any health
plan maintained by any employer (or former employer)
of the taxpayer or the taxpayer’s spouse and at least 50
percent of the cost of such coverage (determined under
section 4980B) is paid or incurred by the employer.
‘‘(B) ELIGIBLE ALTERNATIVE TAA RECIPIENTS.—In the
case of an eligible alternative TAA recipient, such indi-
vidual is either—
‘‘(i) eligible for coverage under any qualified health
insurance (other than insurance described in subpara-
graph (A), (B), or (F) of subsection (e)(1)) under which
at least 50 percent of the cost of coverage (determined
under section 4980B(f)(4)) is paid or incurred by an
employer (or former employer) of the taxpayer or the
taxpayer’s spouse, or
‘‘(ii) covered under any such qualified health insur-
ance under which any portion of the cost of coverage
(as so determined) is paid or incurred by an employer
(or former employer) of the taxpayer or the taxpayer’s
spouse.
‘‘(C) TREATMENT OF CAFETERIA PLANS.—For purposes
of subparagraphs (A) and (B), the cost of coverage shall
be treated as paid or incurred by an employer to the
extent the coverage is in lieu of a right to receive cash
or other qualified benefits under a cafeteria plan (as defined
in section 125(d)).
‘‘(2) COVERAGE UNDER MEDICARE, MEDICAID, OR SCHIP.—
Such individual—
‘‘(A) is entitled to benefits under part A of title XVIII
of the Social Security Act or is enrolled under part B
of such title, or
‘‘(B) is enrolled in the program under title XIX or
XXI of such Act (other than under section 1928 of such
Act).
‘‘(3) CERTAIN OTHER COVERAGE.—Such individual—
‘‘(A) is enrolled in a health benefits plan under chapter
89 of title 5, United States Code, or
‘‘(B) is entitled to receive benefits under chapter 55
of title 10, United States Code.
‘‘(g) SPECIAL RULES.—
‘‘(1) COORDINATION WITH ADVANCE PAYMENTS OF CREDIT.—
With respect to any taxable year, the amount which would
(but for this subsection) be allowed as a credit to the taxpayer
under subsection (a) shall be reduced (but not below zero)
by the aggregate amount paid on behalf of such taxpayer under
section 7527 for months beginning in such taxable year.
‘‘(2) COORDINATION
WITH
OTHER
DEDUCTIONS.—Amounts
taken into account under subsection (a) shall not be taken
into account in determining any deduction allowed under sec-
tion 162(l) or 213.
H. R. 3009—27
‘‘(3) MSA DISTRIBUTIONS.—Amounts distributed from an
Archer MSA (as defined in section 220(d)) shall not be taken
into account under subsection (a).
‘‘(4) DENIAL OF CREDIT TO DEPENDENTS.—No credit shall
be allowed under this section to any individual with respect
to whom a deduction under section 151 is allowable to another
taxpayer for a taxable year beginning in the calendar year
in which such individual’s taxable year begins.
‘‘(5) BOTH SPOUSES ELIGIBLE INDIVIDUALS.—The spouse of
the taxpayer shall not be treated as a qualifying family member
for purposes of subsection (a), if—
‘‘(A) the taxpayer is married at the close of the taxable
year,
‘‘(B) the taxpayer and the taxpayer’s spouse are both
eligible individuals during the taxable year, and
‘‘(C) the taxpayer files a separate return for the taxable
year.
‘‘(6) MARITAL STATUS; CERTAIN MARRIED INDIVIDUALS LIVING
APART.—Rules similar to the rules of paragraphs (3) and (4)
of section 21(e) shall apply for purposes of this section.
‘‘(7) INSURANCE WHICH COVERS OTHER INDIVIDUALS.—For
purposes of this section, rules similar to the rules of section
213(d)(6) shall apply with respect to any contract for qualified
health insurance under which amounts are payable for coverage
of an individual other than the taxpayer and qualifying family
members.
‘‘(8) TREATMENT
OF
PAYMENTS.—For purposes of this
section—
‘‘(A) PAYMENTS BY SECRETARY.—Payments made by the
Secretary on behalf of any individual under section 7527
(relating to advance payment of credit for health insurance
costs of eligible individuals) shall be treated as having
been made by the taxpayer on the first day of the month
for which such payment was made.
‘‘(B) PAYMENTS BY TAXPAYER.—Payments made by the
taxpayer for eligible coverage months shall be treated as
having been made by the taxpayer on the first day of
the month for which such payment was made.
‘‘(9) REGULATIONS.—The Secretary may prescribe such
regulations and other guidance as may be necessary or appro-
priate to carry out this section, section 6050T, and section
7527.’’.
(b) PROMOTION OF STATE HIGH RISK POOLS.—Title XXVII of
the Public Health Service Act is amended by inserting after section
2744 the following new section:
‘‘SEC. 2745. PROMOTION OF QUALIFIED HIGH RISK POOLS.
‘‘(a) SEED GRANTS
TO STATES.—The Secretary shall provide
from the funds appropriated under subsection (c)(1) a grant of
up to $1,000,000 to each State that has not created a qualified
high risk pool as of the date of the enactment of this section
for the State’s costs of creation and initial operation of such a
pool.
‘‘(b) MATCHING FUNDS FOR OPERATION OF POOLS.—
‘‘(1) IN GENERAL.—In the case of a State that has estab-
lished a qualified high risk pool that—
H. R. 3009—28
‘‘(A) restricts premiums charged under the pool to no
more than 150 percent of the premium for applicable
standard risk rates;
‘‘(B) offers a choice of two or more coverage options
through the pool; and
‘‘(C) has in effect a mechanism reasonably designed
to ensure continued funding of losses incurred by the State
after the end of fiscal year 2004 in connection with oper-
ation of the pool;
the Secretary shall provide, from the funds appropriated under
subsection (c)(2) and allotted to the State under paragraph
(2), a grant of up to 50 percent of the losses incurred by
the State in connection with the operation of the pool.
‘‘(2) ALLOTMENT.—The amounts appropriated under sub-
section (c)(2) for a fiscal year shall be made available to the
States in accordance with a formula that is based upon the
number of uninsured individuals in the States.
‘‘(c) FUNDING.—Out of any money in the Treasury of the United
States not otherwise appropriated, there are authorized and
appropriated—
‘‘(1) $20,000,000 for fiscal year 2003 to carry out subsection
(a); and
‘‘(2) $40,000,000 for each of fiscal years 2003 and 2004
to carry out subsection (b).
Funds appropriated under this subsection for a fiscal year shall
remain available for obligation through the end of the following
fiscal year. Nothing in this section shall be construed as providing
a State with an entitlement to a grant under this section.
‘‘(d) QUALIFIED HIGH RISK POOL
AND STATE DEFINED.—For
purposes of this section, the term ‘qualified high risk pool’ has
the meaning given such term in section 2744(c)(2) and the term
‘State’ means any of the 50 States and the District of Columbia.’’.
(c) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ‘‘, or
from section 35 of such Code’’.
(2) The table of sections for subpart C of part IV of chapter
1 of the Internal Revenue Code of 1986 is amended by striking
the last item and inserting the following new items:
‘‘Sec. 35. Health insurance costs of eligible individuals.
‘‘Sec. 36. Overpayments of tax.’’.
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2001.
(2) STATE
HIGH
RISK
POOLS.—The amendment made by
subsection (b) shall take effect on the date of the enactment
of this Act.
SEC. 202. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE
COSTS OF ELIGIBLE INDIVIDUALS.
(a) IN GENERAL.—Chapter 77 of the Internal Revenue Code
of 1986 (relating to miscellaneous provisions) is amended by adding
at the end the following new section:
H. R. 3009—29
‘‘SEC. 7527. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE
COSTS OF ELIGIBLE INDIVIDUALS.
‘‘(a) GENERAL RULE.—Not later than August 1, 2003, the Sec-
retary shall establish a program for making payments on behalf
of certified individuals to providers of qualified health insurance
(as defined in section 35(e)) for such individuals.
‘‘(b) LIMITATION ON ADVANCE PAYMENTS DURING ANY TAXABLE
YEAR.—The Secretary may make payments under subsection (a)
only to the extent that the total amount of such payments made
on behalf of any individual during the taxable year does not exceed
65 percent of the amount paid by the taxpayer for coverage of
the taxpayer and qualifying family members under qualified health
insurance for eligible coverage months beginning in the taxable
year.
‘‘(c) CERTIFIED INDIVIDUAL.—For purposes of this section, the
term ‘certified individual’ means any individual for whom a qualified
health insurance costs credit eligibility certificate is in effect.
‘‘(d) QUALIFIED HEALTH INSURANCE COSTS CREDIT ELIGIBILITY
CERTIFICATE.—For purposes of this section, the term ‘qualified
health insurance costs credit eligibility certificate’ means any writ-
ten statement that an individual is an eligible individual (as defined
in section 35(c)) if such statement provides such information as
the Secretary may require for purposes of this section and—
‘‘(1) in the case of an eligible TAA recipient (as defined
in section 35(c)(2)) or an eligible alternative TAA recipient
(as defined in section 35(c)(3)), is certified by the Secretary
of Labor (or by any other person or entity designated by the
Secretary), or
‘‘(2) in the case of an eligible PBGC pension recipient
(as defined in section 35(c)(4)), is certified by the Pension Ben-
efit Guaranty Corporation (or by any other person or entity
designated by the Secretary).’’.
(b) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES OF
CARRYING OUT A PROGRAM FOR ADVANCE PAYMENT OF CREDIT FOR
HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.—
(1) IN GENERAL.—Subsection (l) of section 6103 of such
Code (relating to disclosure of returns and return information
for purposes other than tax administration) is amended by
adding at the end the following new paragraph:
‘‘(18) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES
OF CARRYING OUT A PROGRAM FOR ADVANCE PAYMENT OF CREDIT
FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.—The
Secretary may disclose to providers of health insurance for
any certified individual (as defined in section 7527(c)) return
information with respect to such certified individual only to
the extent necessary to carry out the program established by
section 7527 (relating to advance payment of credit for health
insurance costs of eligible individuals).’’.
(2) PROCEDURES AND RECORDKEEPING RELATED TO DISCLO-
SURES.—Subsection (p) of such section is amended—
(A) in paragraph (3)(A) by striking ‘‘or (17)’’ and
inserting ‘‘(17), or (18)’’, and
(B) in paragraph (4) by inserting ‘‘or (17)’’ after ‘‘any
other person described in subsection (l)(16)’’ each place
it appears.
(3) UNAUTHORIZED
INSPECTION
OF
RETURNS
OR
RETURN
INFORMATION.—Section 7213A(a)(1)(B) of such Code is amended
H. R. 3009—30
by striking ‘‘section 6103(n)’’ and inserting ‘‘subsection (l)(18)
or (n) of section 6103’’.
(c) INFORMATION REPORTING.—
(1) IN GENERAL.—Subpart B of part III of subchapter A
of chapter 61 of the Internal Revenue Code of 1986 (relating
to information concerning transactions with other persons) is
amended by inserting after section 6050S the following new
section:
‘‘SEC. 6050T. RETURNS RELATING TO CREDIT FOR HEALTH INSURANCE
COSTS OF ELIGIBLE INDIVIDUALS.
‘‘(a) REQUIREMENT OF REPORTING.—Every person who is enti-
tled to receive payments for any month of any calendar year under
section 7527 (relating to advance payment of credit for health
insurance costs of eligible individuals) with respect to any certified
individual (as defined in section 7527(c)) shall, at such time as
the Secretary may prescribe, make the return described in sub-
section (b) with respect to each such individual.
‘‘(b) FORM AND MANNER OF RETURNS.—A return is described
in this subsection if such return—
‘‘(1) is in such form as the Secretary may prescribe, and
‘‘(2) contains—
‘‘(A) the name, address, and TIN of each individual
referred to in subsection (a),
‘‘(B) the number of months for which amounts were
entitled to be received with respect to such individual under
section 7527 (relating to advance payment of credit for
health insurance costs of eligible individuals),
‘‘(C) the amount entitled to be received for each such
month, and
‘‘(D) such other information as the Secretary may pre-
scribe.
‘‘(c) STATEMENTS TO BE FURNISHED
TO INDIVIDUALS WITH
RESPECT
TO WHOM INFORMATION IS REQUIRED.—Every person
required to make a return under subsection (a) shall furnish to
each individual whose name is required to be set forth in such
return a written statement showing—
‘‘(1) the name and address of the person required to make
such return and the phone number of the information contact
for such person, and
‘‘(2) the information required to be shown on the return
with respect to such individual.
The written statement required under the preceding sentence shall
be furnished on or before January 31 of the year following the
calendar year for which the return under subsection (a) is required
to be made.’’.
(2) ASSESSABLE PENALTIES.—
(A) Subparagraph (B) of section 6724(d)(1) of such Code
(relating to definitions) is amended by redesignating
clauses (xi) through (xvii) as clauses (xii) through (xviii),
respectively, and by inserting after clause (x) the following
new clause:
‘‘(xi) section 6050T (relating to returns relating
to credit for health insurance costs of eligible individ-
uals),’’.
(B) Paragraph (2) of section 6724(d) of such Code is
amended by striking ‘‘or’’ at the end of subparagraph (Z),
H. R. 3009—31
by striking the period at the end of subparagraph (AA)
and inserting ‘‘, or’’, and by adding after subparagraph
(AA) the following new subparagraph:
‘‘(BB) section 6050T (relating to returns relating to
credit for health insurance costs of eligible individuals).’’.
(d) CLERICAL AMENDMENTS.—
(1) ADVANCE PAYMENT.—The table of sections for chapter
77 of the Internal Revenue Code of 1986 is amended by adding
at the end the following new item:
‘‘Sec. 7527. Advance payment of credit for health insurance costs of eligible
individuals.’’.
(2) INFORMATION REPORTING.—The table of sections for sub-
part B of part III of subchapter A of chapter 61 of such Code
is amended by inserting after the item relating to section 6050S
the following new item:
‘‘Sec. 6050T. Returns relating to credit for health insurance costs of eligible
individuals.’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 203. HEALTH INSURANCE ASSISTANCE FOR ELIGIBLE INDIVID-
UALS.
(a) ELIGIBILITY FOR GRANTS.—Section 173(a) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(a)) is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the end;
(2) in paragraph (3), by striking the period and inserting
‘‘; and’’; and
(3) by adding at the end the following:
‘‘(4) from funds appropriated under section 174(c)—
‘‘(A) to a State or entity (as defined in section
173(c)(1)(B)) to carry out subsection (f), including providing
assistance to eligible individuals; and
‘‘(B) to a State or entity (as so defined) to carry out
subsection (g), including providing assistance to eligible
individuals.’’.
(b) USE OF FUNDS FOR HEALTH INSURANCE COVERAGE.—Section
173 of the Workforce Investment Act of 1998 (29 U.S.C. 2918)
is amended by adding at the end the following:
‘‘(f) HEALTH INSURANCE COVERAGE ASSISTANCE FOR ELIGIBLE
INDIVIDUALS.—
‘‘(1) IN
GENERAL.—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:
‘‘(A) HEALTH
INSURANCE
COVERAGE.—To assist an
eligible individual and such individual’s qualifying family
members in enrolling in qualified health insurance.
‘‘(B) ADMINISTRATIVE AND START-UP EXPENSES.—To pay
the administrative expenses related to the enrollment of
eligible individuals and such individuals’ qualifying family
members in qualified health insurance, including—
‘‘(i) eligibility verification activities;
‘‘(ii) the notification of eligible individuals of avail-
able 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;
H. R. 3009—32
‘‘(iv) providing assistance to eligible individuals
in enrolling in 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 to carry out clauses (iv)
through (ix) of paragraph (2)(A).
‘‘(2) QUALIFIED HEALTH INSURANCE.—For purposes of this
subsection and subsection (g)—
‘‘(A) IN GENERAL.—The term ‘qualified health insur-
ance’ means any of the following:
‘‘(i) Coverage under a COBRA continuation provi-
sion (as defined in section 733(d)(1) of the Employee
Retirement Income Security Act of 1974).
‘‘(ii) State-based continuation coverage provided by
the State under a State law that requires such cov-
erage.
‘‘(iii) Coverage offered through a qualified State
high risk pool (as defined in section 2744(c)(2) of the
Public Health Service Act).
‘‘(iv) Coverage under a health insurance program
offered for State employees.
‘‘(v) Coverage under a State-based health insur-
ance program that is comparable to the health insur-
ance program offered for State employees.
‘‘(vi) Coverage through an arrangement entered
into by a State and—
‘‘(I) a group health plan (including such a plan
which is a multiemployer plan as defined in section
3(37) of the Employee Retirement Income Security
Act of 1974),
‘‘(II) an issuer of health insurance coverage,
‘‘(III) an administrator, or
‘‘(IV) an employer.
‘‘(vii) Coverage offered through a State arrange-
ment with a private sector health care coverage pur-
chasing pool.
‘‘(viii) Coverage under a State-operated health plan
that does not receive any Federal financial participa-
tion.
‘‘(ix) Coverage under a group health plan that is
available through the employment of the eligible
individual’s spouse.
‘‘(x) In the case of any eligible individual and such
individual’s qualifying family members, coverage under
individual health insurance if the eligible individual
was covered under individual health insurance during
the entire 30-day period that ends on the date that
such individual became separated from the employ-
ment which qualified such individual for—
‘‘(I) in the case of an eligible TAA recipient,
the allowance described in section 35(c)(2) of the
Internal Revenue Code of 1986,
‘‘(II) in the case of an eligible alternative TAA
recipient, 
the 
benefit 
described 
in 
section
35(c)(3)(B) of such Code, or
H. R. 3009—33
‘‘(III) in the case of any eligible PBGC pension
recipient, 
the 
benefit 
described 
in 
section
35(c)(4)(B) of such Code.
For purposes of this clause, the term ‘individual health
insurance’ means any insurance which constitutes
medical care offered to individuals other than in
connection with a group health plan and does not
include Federal- or State-based health insurance cov-
erage.
‘‘(B) REQUIREMENTS FOR STATE-BASED COVERAGE.—
‘‘(i) IN GENERAL.—The term ‘qualified health insur-
ance’ does not include any coverage described in clauses
(ii) through (viii) of subparagraph (A) unless the State
involved has elected to have such coverage treated
as qualified health insurance under this paragraph
and such coverage meets the following requirements:
‘‘(I) GUARANTEED ISSUE.—Each qualifying indi-
vidual is guaranteed enrollment if the individual
pays the premium for enrollment or provides a
qualified health insurance costs credit eligibility
certificate described in section 7527 of the Internal
Revenue Code of 1986 and pays the remainder
of such premium.
‘‘(II) NO IMPOSITION OF PREEXISTING CONDITION
EXCLUSION.—No pre-existing condition limitations
are imposed with respect to any qualifying indi-
vidual.
‘‘(III) 
NONDISCRIMINATORY
PREMIUM.—The
total premium (as determined without regard to
any subsidies) with respect to a qualifying indi-
vidual may not be greater than the total premium
(as so determined) for a similarly situated indi-
vidual who is not a qualifying individual.
‘‘(IV) SAME BENEFITS.—Benefits under the cov-
erage are the same as (or substantially similar
to) the benefits provided to similarly situated
individuals who are not qualifying individuals.
‘‘(ii) QUALIFYING INDIVIDUAL.—For purposes of this
subparagraph, the term ‘qualifying individual’ means—
‘‘(I) an eligible individual for whom, as of the
date on which the individual seeks to enroll in
clauses (ii) through (viii) of subparagraph (A), the
aggregate of the periods of creditable coverage (as
defined in section 9801(c) of the Internal Revenue
Code of 1986) is 3 months or longer and who,
with respect to any month, meets the requirements
of clauses (iii) and (iv) of section 35(b)(1)(A) of
such Code; and
‘‘(II) the qualifying family members of such
eligible individual.
‘‘(C) EXCEPTION.—The term ‘qualified health insurance’
shall not include—
‘‘(i) a flexible spending or similar arrangement,
and
‘‘(ii) any insurance if substantially all of its cov-
erage is of excepted benefits described in section 733(c)
H. R. 3009—34
of the Employee Retirement Income Security Act of
1974.
‘‘(3) AVAILABILITY OF FUNDS.—
‘‘(A) EXPEDITED PROCEDURES.—With respect to applica-
tions submitted by States or entities for grants under this
subsection, the Secretary shall—
‘‘(i) not later than 15 days after the date on which
the Secretary receives a completed application from
a State or entity, notify the State or entity of the
determination of the Secretary with respect to the
approval or disapproval of such application;
‘‘(ii) in the case of an application of a State or
other entity that is disapproved by the Secretary, pro-
vide technical assistance, at the request of the State
or entity, in a timely manner to enable the State
or entity to submit an approved application; and
‘‘(iii) develop procedures to expedite the provision
of funds to States and entities with approved applica-
tions.
‘‘(B) AVAILABILITY AND DISTRIBUTION OF FUNDS.—The
Secretary shall ensure that funds made available under
section 174(c)(1)(A) to carry out subsection (a)(4)(A) are
available to States and entities throughout the period
described in section 174(c)(2)(A).
‘‘(4) ELIGIBLE INDIVIDUAL DEFINED.—For purposes of this
subsection and subsection (g), the term ‘eligible individual’
means—
‘‘(A) an eligible TAA recipient (as defined in section
35(c)(2) of the Internal Revenue Code of 1986),
‘‘(B) an eligible alternative TAA recipient (as defined
in section 35(c)(3) of the Internal Revenue Code of 1986),
and
‘‘(C) an eligible PBGC pension recipient (as defined
in section 35(c)(4) of the Internal Revenue Code of 1986),
who, as of the first day of the month, does not have other
specified coverage and is not imprisoned under Federal, State,
or local authority.
‘‘(5) QUALIFYING FAMILY MEMBER DEFINED.—For purposes
of this subsection and subsection (g)—
‘‘(A) IN GENERAL.—The term ‘qualifying family member’
means—
‘‘(i) the eligible individual’s spouse, and
‘‘(ii) any dependent of the eligible individual with
respect to whom the individual is entitled to a deduc-
tion under section 151(c) of the Internal Revenue Code
of 1986.
Such term does not include any individual who has other
specified coverage.
‘‘(B) SPECIAL DEPENDENCY TEST IN CASE OF DIVORCED
PARENTS, ETC.—If paragraph (2) or (4) of section 152(e)
of such Code applies to any child with respect to any
calendar year, in the case of any taxable year beginning
in such calendar year, such child shall be treated as
described in subparagraph (A)(ii) with respect to the custo-
dial parent (within the meaning of section 152(e)(1) of
such Code) and not with respect to the noncustodial parent.
H. R. 3009—35
‘‘(6) STATE.—For purposes of this subsection and subsection
(g), the term ‘State’ includes an entity as defined in subsection
(c)(1)(B).
‘‘(7) OTHER SPECIFIED COVERAGE.—For purposes of this sub-
section, an individual has other specified coverage for any
month if, as of the first day of such month—
‘‘(A) SUBSIDIZED COVERAGE.—
‘‘(i) IN GENERAL.—Such individual is covered under
any insurance which constitutes medical care (except
insurance substantially all of the coverage of which
is of excepted benefits described in section 9832(c) of
the Internal Revenue Code of 1986) under any health
plan maintained by any employer (or former employer)
of the taxpayer or the taxpayer’s spouse and at least
50 percent of the cost of such coverage (determined
under section 4980B of such Code) is paid or incurred
by the employer.
‘‘(ii) ELIGIBLE
ALTERNATIVE
TAA
RECIPIENTS.—In
the case of an eligible alternative TAA recipient (as
defined in section 35(c)(3) of the Internal Revenue Code
of 1986), such individual is either—
‘‘(I) eligible for coverage under any qualified
health insurance (other than insurance described
in clause (i), (ii), or (vi) of paragraph (2)(A)) under
which at least 50 percent of the cost of coverage
(determined under section 4980B(f)(4) of such
Code) is paid or incurred by an employer (or former
employer) of the taxpayer or the taxpayer’s spouse,
or
‘‘(II) covered under any such qualified health
insurance under which any portion of the cost
of coverage (as so determined) is paid or incurred
by an employer (or former employer) of the tax-
payer or the taxpayer’s spouse.
‘‘(iii) TREATMENT OF CAFETERIA PLANS.—For pur-
poses of clauses (i) and (ii), the cost of coverage shall
be treated as paid or incurred by an employer to the
extent the coverage is in lieu of a right to receive
cash or other qualified benefits under a cafeteria plan
(as defined in section 125(d) of the Internal Revenue
Code of 1986).
‘‘(B) COVERAGE
UNDER
MEDICARE, 
MEDICAID, 
OR
SCHIP.—Such individual—
‘‘(i) is entitled to benefits under part A of title
XVIII of the Social Security Act or is enrolled under
part B of such title, or
‘‘(ii) is enrolled in the program under title XIX
or XXI of such Act (other than under section 1928
of such Act).
‘‘(C) CERTAIN OTHER COVERAGE.—Such individual—
‘‘(i) is enrolled in a health benefits plan under
chapter 89 of title 5, United States Code, or
‘‘(ii) is entitled to receive benefits under chapter
55 of title 10, United States Code.
‘‘(g) INTERIM HEALTH INSURANCE COVERAGE AND OTHER ASSIST-
ANCE.—
H. R. 3009—36
‘‘(1) IN
GENERAL.—Funds made available to a State or
entity under paragraph (4)(B) of subsection (a) may be used
by the State or entity to provide assistance and support services
to eligible individuals, including health care coverage to the
extent provided under subsection (f)(1)(A), transportation, child
care, dependent care, and income assistance.
‘‘(2) INCOME SUPPORT.—With respect to any income assist-
ance provided to an eligible individual with such funds, such
assistance shall supplement and not supplant other income
support or assistance provided under chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.) (as in effect
on the day before the effective date of the Trade Act of 2002)
or the unemployment compensation laws of the State where
the eligible individual resides.
‘‘(3) HEALTH INSURANCE COVERAGE.—With respect to any
assistance provided to an eligible individual with such funds
in enrolling in qualified health insurance, the following rules
shall apply:
‘‘(A) The State or entity may provide assistance in
obtaining such coverage to the eligible individual and to
such individual’s qualifying family members.
‘‘(B) Such assistance shall supplement and may not
supplant any other State or local funds used to provide
health care coverage and may not be included in deter-
mining the amount of non-Federal contributions required
under any program.
‘‘(4) AVAILABILITY OF FUNDS.—
‘‘(A) EXPEDITED PROCEDURES.—With respect to applica-
tions submitted by States or entities for grants under this
subsection, the Secretary shall—
‘‘(i) not later than 15 days after the date on which
the Secretary receives a completed application from
a State or entity, notify the State or entity of the
determination of the Secretary with respect to the
approval or disapproval of such application;
‘‘(ii) in the case of an application of a State or
entity that is disapproved by the Secretary, provide
technical assistance, at the request of the State or
entity, in a timely manner to enable the State or
entity to submit an approved application; and
‘‘(iii) develop procedures to expedite the provision
of funds to States and entities with approved applica-
tions.
‘‘(B) AVAILABILITY AND DISTRIBUTION OF FUNDS.—The
Secretary shall ensure that funds made available under
section 174(c)(1)(B) to carry out subsection (a)(4)(B) are
available to States and entities throughout the period
described in section 174(c)(2)(B).
‘‘(5) INCLUSION
OF
CERTAIN
INDIVIDUALS
AS
ELIGIBLE
INDIVIDUALS.—For purposes of this subsection, the term ‘eligible
individual’ includes an individual who is a member of a group
of workers certified after April 1, 2002, under chapter 2 of
title II of the Trade Act of 1974 (as in effect on the day
before the effective date of the Trade Act of 2002) and is
participating in the trade adjustment allowance program under
such chapter (as so in effect) or who would be determined
to be participating in such program under such chapter (as
H. R. 3009—37
so in effect) if such chapter were applied without regard to
section 231(a)(3)(B) of the Trade Act of 1974 (as so in effect).’’.
(c) AUTHORIZATION
OF APPROPRIATIONS.—Section 174 of the
Workforce Investment Act of 1998 (29 U.S.C. 2919) is amended
by adding at the end the following:
‘‘(c) ASSISTANCE FOR ELIGIBLE WORKERS.—
‘‘(1) AUTHORIZATION AND APPROPRIATION FOR FISCAL YEAR
2002.—There 
are 
authorized 
to 
be 
appropriated 
and
appropriated—
‘‘(A) to carry out subsection (a)(4)(A) of section 173,
$10,000,000 for fiscal year 2002; and
‘‘(B) to carry out subsection (a)(4)(B) of section 173,
$50,000,000 for fiscal year 2002.
‘‘(2) AUTHORIZATION OF APPROPRIATIONS FOR SUBSEQUENT
FISCAL YEARS.—There are authorized to be appropriated—
‘‘(A) to carry out subsection (a)(4)(A) of section 173,
$60,000,000 for each of fiscal years 2003 through 2007;
and
‘‘(B) to carry out subsection (a)(4)(B) of section 173—
‘‘(i) $100,000,000 for fiscal year 2003; and
‘‘(ii) $50,000,000 for fiscal year 2004.
‘‘(3) AVAILABILITY OF FUNDS.—Funds appropriated pursuant
to—
‘‘(A) paragraphs (1)(A) and (2)(A) for each fiscal year
shall, notwithstanding section 189(g), remain available for
obligation during the pendency of any outstanding claim
under the Trade Act of 1974, as amended by the Trade
Act of 2002; and
‘‘(B) paragraph (1)(B) and (2)(B), for each fiscal year
shall, notwithstanding section 189(g), remain available
during the period that begins on the date of enactment
of the Trade Act of 2002 and ends on September 30, 2004.’’.
(d) CONFORMING
AMENDMENT.—Section 132(a)(2)(A) of the
Workforce Investment Act of 1998 (29 U.S.C. 2862(a)(2)(A)) is
amended by inserting ‘‘, other than under subsection (a)(4), (f),
and (g)’’ after ‘‘grants’’.
(e) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD FOR
CERTAIN INDIVIDUALS.—
(1) ERISA AMENDMENTS.—Section 605 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1165) is
amended—
(A) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘For pur-
poses of this part’’; and
(B) by adding at the end the following:
‘‘(b) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD FOR
CERTAIN INDIVIDUALS.—
‘‘(1) IN GENERAL.—In the case of a nonelecting TAA-eligible
individual and notwithstanding subsection (a), such individual
may elect continuation coverage under this part during the
60-day period that begins on the first day of the month in
which the individual becomes a TAA-eligible individual, but
only if such election is made not later than 6 months after
the date of the TAA-related loss of coverage.
‘‘(2) COMMENCEMENT OF COVERAGE; NO REACH-BACK.—Any
continuation coverage elected by a TAA-eligible individual
under paragraph (1) shall commence at the beginning of the
H. R. 3009—38
60-day election period described in such paragraph and shall
not include any period prior to such 60-day election period.
‘‘(3) PREEXISTING CONDITIONS.—With respect to an indi-
vidual who elects continuation coverage pursuant to paragraph
(1), the period—
‘‘(A) beginning on the date of the TAA-related loss
of coverage, and
‘‘(B) ending on the first day of the 60-day election
period described in paragraph (1),
shall be disregarded for purposes of determining the 63-day
periods referred to in section 701(c)(2), section 2701(c)(2) of
the Public Health Service Act, and section 9801(c)(2) of the
Internal Revenue Code of 1986.
‘‘(4) DEFINITIONS.—For purposes of this subsection:
‘‘(A) NONELECTING
TAA-ELIGIBLE
INDIVIDUAL.—The
term ‘nonelecting TAA-eligible individual’ means a TAA-
eligible individual who—
‘‘(i) has a TAA-related loss of coverage; and
‘‘(ii) did not elect continuation coverage under this
part during the TAA-related election period.
‘‘(B) 
TAA-ELIGIBLE
INDIVIDUAL.—The 
term 
‘TAA-
eligible individual’ means—
‘‘(i) an eligible TAA recipient (as defined in para-
graph (2) of section 35(c) of the Internal Revenue Code
of 1986), and
‘‘(ii) an eligible alternative TAA recipient (as
defined in paragraph (3) of such section).
‘‘(C) TAA-RELATED ELECTION PERIOD.—The term ‘TAA-
related election period’ means, with respect to a TAA-
related loss of coverage, the 60-day election period under
this part which is a direct consequence of such loss.
‘‘(D) TAA-RELATED
LOSS
OF
COVERAGE.—The term
‘TAA-related loss of coverage’ means, with respect to an
individual whose separation from employment gives rise
to being an TAA-eligible individual, the loss of health bene-
fits coverage associated with such separation.’’.
(2) PHSA AMENDMENTS.—Section 2205 of the Public Health
Service Act (42 U.S.C. 300bb–5) is amended—
(A) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘For pur-
poses of this title’’; and
(B) by adding at the end the following:
‘‘(b) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD FOR
CERTAIN INDIVIDUALS.—
‘‘(1) IN GENERAL.—In the case of a nonelecting TAA-eligible
individual and notwithstanding subsection (a), such individual
may elect continuation coverage under this title during the
60-day period that begins on the first day of the month in
which the individual becomes a TAA-eligible individual, but
only if such election is made not later than 6 months after
the date of the TAA-related loss of coverage.
‘‘(2) COMMENCEMENT OF COVERAGE; NO REACH-BACK.—Any
continuation coverage elected by a TAA-eligible individual
under paragraph (1) shall commence at the beginning of the
60-day election period described in such paragraph and shall
not include any period prior to such 60-day election period.
H. R. 3009—39
‘‘(3) PREEXISTING CONDITIONS.—With respect to an indi-
vidual who elects continuation coverage pursuant to paragraph
(1), the period—
‘‘(A) beginning on the date of the TAA-related loss
of coverage, and
‘‘(B) ending on the first day of the 60-day election
period described in paragraph (1),
shall be disregarded for purposes of determining the 63-day
periods referred to in section 2701(c)(2), section 701(c)(2) of
the Employee Retirement Income Security Act of 1974, and
section 9801(c)(2) of the Internal Revenue Code of 1986.
‘‘(4) DEFINITIONS.—For purposes of this subsection:
‘‘(A) NONELECTING
TAA-ELIGIBLE
INDIVIDUAL.—The
term ‘nonelecting TAA-eligible individual’ means a TAA-
eligible individual who—
‘‘(i) has a TAA-related loss of coverage; and
‘‘(ii) did not elect continuation coverage under this
part during the TAA-related election period.
‘‘(B) 
TAA-ELIGIBLE
INDIVIDUAL.—The 
term 
‘TAA-
eligible individual’ means—
‘‘(i) an eligible TAA recipient (as defined in para-
graph (2) of section 35(c) of the Internal Revenue Code
of 1986), and
‘‘(ii) an eligible alternative TAA recipient (as
defined in paragraph (3) of such section).
‘‘(C) TAA-RELATED ELECTION PERIOD.—The term ‘TAA-
related election period’ means, with respect to a TAA-
related loss of coverage, the 60-day election period under
this part which is a direct consequence of such loss.
‘‘(D) TAA-RELATED
LOSS
OF
COVERAGE.—The term
‘TAA-related loss of coverage’ means, with respect to an
individual whose separation from employment gives rise
to being an TAA-eligible individual, the loss of health bene-
fits coverage associated with such separation.’’.
(3) IRC AMENDMENTS.—Paragraph (5) of section 4980B(f)
of the Internal Revenue Code of 1986 (relating to election)
is amended by adding at the end the following:
‘‘(C) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD
FOR CERTAIN INDIVIDUALS.—
‘‘(i) IN GENERAL.—In the case of a nonelecting TAA-
eligible individual and notwithstanding subparagraph
(A), such individual may elect continuation coverage
under this subsection during the 60-day period that
begins on the first day of the month in which the
individual becomes a TAA-eligible individual, but only
if such election is made not later than 6 months after
the date of the TAA-related loss of coverage.
‘‘(ii) COMMENCEMENT
OF
COVERAGE; NO
REACH-
BACK.—Any continuation coverage elected by a TAA-
eligible individual under clause (i) shall commence at
the beginning of the 60-day election period described
in such paragraph and shall not include any period
prior to such 60-day election period.
‘‘(iii) PREEXISTING
CONDITIONS.—With respect to
an individual who elects continuation coverage pursu-
ant to clause (i), the period—
H. R. 3009—40
‘‘(I) beginning on the date of the TAA-related
loss of coverage, and
‘‘(II) ending on the first day of the 60-day
election period described in clause (i),
shall be disregarded for purposes of determining the
63-day periods referred to in section 9801(c)(2), section
701(c)(2) of the Employee Retirement Income Security
Act of 1974, and section 2701(c)(2) of the Public Health
Service Act.
‘‘(iv) DEFINITIONS.—For purposes of this sub-
section:
‘‘(I) NONELECTING TAA-ELIGIBLE INDIVIDUAL.—
The term ‘nonelecting TAA-eligible individual’
means a TAA-eligible individual who has a TAA-
related loss of coverage and did not elect continu-
ation coverage under this subsection during the
TAA-related election period.
‘‘(II) TAA-ELIGIBLE
INDIVIDUAL.—The term
‘TAA-eligible individual’ means an eligible TAA
recipient (as defined in paragraph (2) of section
35(c)) and an eligible alternative TAA recipient
(as defined in paragraph (3) of such section).
‘‘(III) TAA-RELATED
ELECTION
PERIOD.—The
term ‘TAA-related election period’ means, with
respect to a TAA-related loss of coverage, the 60-
day election period under this subsection which
is a direct consequence of such loss.
‘‘(IV) TAA-RELATED LOSS OF COVERAGE.—The
term ‘TAA-related loss of coverage’ means, with
respect to an individual whose separation from
employment gives rise to being an TAA-eligible
individual, the loss of health benefits coverage
associated with such separation.’’.
(f) RULE
OF CONSTRUCTION.—Nothing in this title (or the
amendments made by this title), other than provisions relating
to COBRA continuation coverage and reporting requirements, shall
be construed as creating any new mandate on any party regarding
health insurance coverage.
TITLE III—CUSTOMS
REAUTHORIZATION
SEC. 301. SHORT TITLE.
This Act may be cited as the ‘‘Customs Border Security Act
of 2002’’.
H. R. 3009—41
Subtitle A—United States Customs Service
CHAPTER 1—DRUG ENFORCEMENT AND OTHER
NONCOMMERCIAL AND COMMERCIAL OPERATIONS
SEC. 311. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMER-
CIAL OPERATIONS, COMMERCIAL OPERATIONS, AND AIR
AND MARINE INTERDICTION.
(a) NONCOMMERCIAL OPERATIONS.—Section 301(b)(1) of the Cus-
toms Procedural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(1)) is amended—
(1) by striking subparagraph (A), and inserting the fol-
lowing:
‘‘(A) $1,365,456,000 for fiscal year 2003.’’; and
(2) by striking subparagraph (B), and inserting the fol-
lowing:
‘‘(B) $1,399,592,400 for fiscal year 2004.’’.
(b) COMMERCIAL OPERATIONS.—
(1) IN GENERAL.—Section 301(b)(2)(A) of the Customs Proce-
dural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(2)(A)) is amended—
(A) by striking clause (i), and inserting the following:
‘‘(i) $1,642,602,000 for fiscal year 2003.’’; and
(B) by striking clause (ii), and inserting the following:
‘‘(ii) $1,683,667,050 for fiscal year 2004.’’.
(2) AUTOMATED
COMMERCIAL
ENVIRONMENT
COMPUTER
SYSTEM.—Of the amount made available for each of fiscal years
2003 and 2004 under section 301(b)(2)(A) of the Customs Proce-
dural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(2)(A)), as amended by paragraph (1), $308,000,000 shall
be available until expended for each such fiscal year for the
development, establishment, and implementation of the Auto-
mated Commercial Environment computer system.
(3) REPORTS.—Not later than 90 days after the date of
the enactment of this Act, and not later than the end of each
subsequent 90-day period, the Commissioner of Customs shall
prepare and submit to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance
of the Senate a report demonstrating that the development
and establishment of the Automated Commercial Environment
computer system is being carried out in a cost-effective manner
and meets the modernization requirements of title VI of the
North American Free Trade Agreement Implementation Act.
(c) AIR AND MARINE INTERDICTION.—Section 301(b)(3) of the
Customs Procedural Reform and Simplification Act of 1978 (19
U.S.C. 2075(b)(3)) is amended—
(1) by striking subparagraph (A), and inserting the fol-
lowing:
‘‘(A) $170,829,000 for fiscal year 2003.’’; and
(2) by striking subparagraph (B), and inserting the fol-
lowing:
‘‘(B) $175,099,725 for fiscal year 2004.’’.
(d) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section
301(a) of the Customs Procedural Reform and Simplification Act
of 1978 (19 U.S.C. 2075(a)) is amended by adding at the end
the following:
H. R. 3009—42
‘‘(3) By not later than the date on which the President submits
to Congress the budget of the United States Government for a
fiscal year, the Commissioner of Customs shall submit to the Com-
mittee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate the projected amount
of funds for the succeeding fiscal year that will be necessary for
the operations of the Customs Service as provided for in subsection
(b).’’.
SEC. 312. ANTITERRORIST AND ILLICIT NARCOTICS DETECTION EQUIP-
MENT 
FOR 
THE 
UNITED 
STATES-MEXICO 
BORDER,
UNITED STATES-CANADA BORDER, AND FLORIDA AND
THE GULF COAST SEAPORTS.
(a) FISCAL YEAR 2003.—Of the amounts made available for
fiscal year 2003 under section 301(b)(1)(A) of the Customs Proce-
dural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(1)(A)), as amended by section 311(a) of this Act, $90,244,000
shall be available until expended for acquisition and other expenses
associated with implementation and deployment of antiterrorist
and illicit narcotics detection equipment along the United States-
Mexico border, the United States-Canada border, and Florida and
the Gulf Coast seaports, as follows:
(1) UNITED STATES-MEXICO BORDER.—For the United States-
Mexico border, the following:
(A) $6,000,000 for 8 Vehicle and Container Inspection
Systems (VACIS).
(B) $11,200,000 for 5 mobile truck x-rays with trans-
mission and backscatter imaging.
(C) $13,000,000 for the upgrade of 8 fixed-site truck
x-rays from the present energy level of 450,000 electron
volts to 1,000,000 electron volts (1–MeV).
(D) $7,200,000 for 8 1–MeV pallet x-rays.
(E) $1,000,000 for 200 portable contraband detectors
(busters) to be distributed among ports where the current
allocations are inadequate.
(F) $600,000 for 50 contraband detection kits to be
distributed among all southwest border ports based on
traffic volume.
(G) $500,000 for 25 ultrasonic container inspection
units to be distributed among all ports receiving liquid-
filled cargo and to ports with a hazardous material inspec-
tion facility.
(H) $2,450,000 for 7 automated targeting systems.
(I) $360,000 for 30 rapid tire deflator systems to be
distributed to those ports where port runners are a threat.
(J) $480,000 for 20 portable Treasury Enforcement
Communications Systems (TECS) terminals to be moved
among ports as needed.
(K) $1,000,000 for 20 remote watch surveillance camera
systems at ports where there are suspicious activities at
loading docks, vehicle queues, secondary inspection lanes,
or areas where visual surveillance or observation is
obscured.
(L) $1,254,000 for 57 weigh-in-motion sensors to be
distributed among the ports with the greatest volume of
outbound traffic.
H. R. 3009—43
(M) $180,000 for 36 AM traffic information radio sta-
tions, with 1 station to be located at each border crossing.
(N) $1,040,000 for 260 inbound vehicle counters to
be installed at every inbound vehicle lane.
(O) $950,000 for 38 spotter camera systems to counter
the surveillance of customs inspection activities by persons
outside the boundaries of ports where such surveillance
activities are occurring.
(P) $390,000 for 60 inbound commercial truck tran-
sponders to be distributed to all ports of entry.
(Q) $1,600,000 for 40 narcotics vapor and particle
detectors to be distributed to each border crossing.
(R) $400,000 for license plate reader automatic tar-
geting software to be installed at each port to target
inbound vehicles.
(2) UNITED
STATES-CANADA
BORDER.—For the United
States-Canada border, the following:
(A) $3,000,000 for 4 Vehicle and Container Inspection
Systems (VACIS).
(B) $8,800,000 for 4 mobile truck x-rays with trans-
mission and backscatter imaging.
(C) $3,600,000 for 4 1–MeV pallet x-rays.
(D) $250,000 for 50 portable contraband detectors
(busters) to be distributed among ports where the current
allocations are inadequate.
(E) $300,000 for 25 contraband detection kits to be
distributed among ports based on traffic volume.
(F) $240,000 for 10 portable Treasury Enforcement
Communications Systems (TECS) terminals to be moved
among ports as needed.
(G) $400,000 for 10 narcotics vapor and particle detec-
tors to be distributed to each border crossing based on
traffic volume.
(3) FLORIDA AND GULF COAST SEAPORTS.—For Florida and
the Gulf Coast seaports, the following:
(A) $4,500,000 for 6 Vehicle and Container Inspection
Systems (VACIS).
(B) $11,800,000 for 5 mobile truck x-rays with trans-
mission and backscatter imaging.
(C) $7,200,000 for 8 1–MeV pallet x-rays.
(D) $250,000 for 50 portable contraband detectors
(busters) to be distributed among ports where the current
allocations are inadequate.
(E) $300,000 for 25 contraband detection kits to be
distributed among ports based on traffic volume.
(b) FISCAL YEAR 2004.—Of the amounts made available for
fiscal year 2004 under section 301(b)(1)(B) of the Customs Proce-
dural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(1)(B)), as amended by section 311(a) of this Act, $9,000,000
shall be available until expended for the maintenance and support
of the equipment and training of personnel to maintain and support
the equipment described in subsection (a).
(c) ACQUISITION OF TECHNOLOGICALLY SUPERIOR EQUIPMENT;
TRANSFER OF FUNDS.—
(1) IN GENERAL.—The Commissioner of Customs may use
amounts made available for fiscal year 2003 under section
H. R. 3009—44
301(b)(1)(A) of the Customs Procedural Reform and Simplifica-
tion Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by sec-
tion 311(a) of this Act, for the acquisition of equipment other
than the equipment described in subsection (a) if such other
equipment—
(A)(i) is technologically superior to the equipment
described in subsection (a); and
(ii) will achieve at least the same results at a cost
that is the same or less than the equipment described
in subsection (a); or
(B) can be obtained at a lower cost than the equipment
described in subsection (a).
(2) TRANSFER OF FUNDS.—Notwithstanding any other provi-
sion of this section, the Commissioner of Customs may reallo-
cate an amount not to exceed 10 percent of—
(A) the amount specified in any of subparagraphs (A)
through (R) of subsection (a)(1) for equipment specified
in any other of such subparagraphs (A) through (R);
(B) the amount specified in any of subparagraphs (A)
through (G) of subsection (a)(2) for equipment specified
in any other of such subparagraphs (A) through (G); and
(C) the amount specified in any of subparagraphs (A)
through (E) of subsection (a)(3) for equipment specified
in any other of such subparagraphs (A) through (E).
SEC. 313. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.
As part of the annual performance plan for each of the fiscal
years 2003 and 2004 covering each program activity set forth in
the budget of the United States Customs Service, as required under
section 1115 of title 31, United States Code, the Commissioner
of Customs shall establish performance goals and performance
indicators, and shall comply with all other requirements contained
in paragraphs (1) through (6) of subsection (a) of such section
with respect to each of the activities to be carried out pursuant
to section 312.
CHAPTER 2—CHILD CYBER-SMUGGLING CENTER OF
THE CUSTOMS SERVICE
SEC. 321. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAM TO
PREVENT CHILD PORNOGRAPHY/CHILD SEXUAL EXPLOI-
TATION.
(a) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to the Customs Service $10,000,000 for fiscal
year 2003 to carry out the program to prevent child pornography/
child sexual exploitation established by the Child Cyber-Smuggling
Center of the Customs Service.
(b) USE
OF
AMOUNTS
FOR
CHILD
PORNOGRAPHY
CYBER
TIPLINE.—Of the amount appropriated under subsection (a), the
Customs Service shall provide 3.75 percent of such amount to
the National Center for Missing and Exploited Children for the
operation of the child pornography cyber tipline of the Center
and for increased public awareness of the tipline.
H. R. 3009—45
CHAPTER 3—MISCELLANEOUS PROVISIONS
SEC. 331. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED
STATES-CANADA BORDER.
Of the amount made available for fiscal year 2003 under para-
graphs (1) and (2)(A) of section 301(b) of the Customs Procedural
Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)), as
amended by section 311 of this Act, $28,300,000 shall be available
until expended for the Customs Service to hire approximately 285
additional Customs Service officers to address the needs of the
offices and ports along the United States-Canada border.
SEC. 332. STUDY AND REPORT RELATING TO PERSONNEL PRACTICES
OF THE CUSTOMS SERVICE.
(a) STUDY.—The Commissioner of Customs shall conduct a
study of current personnel practices of the Customs Service,
including an overview of performance standards and the effect
and impact of the collective bargaining process on drug interdiction
efforts of the Customs Service and a comparison of duty rotation
policies of the Customs Service and other Federal agencies that
employ similarly situated personnel.
(b) REPORT.—Not later than 120 days after the date of the
enactment of this Act, the Commissioner of Customs shall submit
to the Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate a report con-
taining the results of the study conducted under subsection (a).
SEC. 333. STUDY AND REPORT RELATING TO ACCOUNTING AND
AUDITING PROCEDURES OF THE CUSTOMS SERVICE.
(a) STUDY.—(1) The Commissioner of Customs shall conduct
a study of actions by the Customs Service to ensure that appropriate
training is being provided to Customs Service personnel who are
responsible for financial auditing of importers.
(2) In conducting the study, the Commissioner—
(A) shall specifically identify those actions taken to comply
with provisions of law that protect the privacy and trade secrets
of importers, such as section 552(b) of title 5, United States
Code, and section 1905 of title 18, United States Code; and
(B) shall provide for public notice and comment relating
to verification of the actions described in subparagraph (A).
(b) REPORT.—Not later than 6 months after the date of the
enactment of this Act, the Commissioner of Customs shall submit
to the Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate a report con-
taining the results of the study conducted under subsection (a).
SEC. 
334. 
ESTABLISHMENT 
AND 
IMPLEMENTATION 
OF 
COST
ACCOUNTING SYSTEM; REPORTS.
(a) ESTABLISHMENT AND IMPLEMENTATION.—
(1) IN GENERAL.—Not later than September 30, 2003, the
Commissioner of Customs shall, in accordance with the audit
of the Customs Service’s fiscal years 2000 and 1999 financial
statements (as contained in the report of the Office of the
Inspector General of the Department of the Treasury issued
on February 23, 2001), establish and implement a cost
accounting system for expenses incurred in both commercial
and noncommercial operations of the Customs Service.
H. R. 3009—46
(2) ADDITIONAL REQUIREMENT.—The cost accounting system
described in paragraph (1) shall provide for an identification
of expenses based on the type of operation, the port at which
the operation took place, the amount of time spent on the
operation by personnel of the Customs Service, and an identi-
fication of expenses based on any other appropriate classifica-
tion necessary to provide for an accurate and complete
accounting of the expenses.
(b) REPORTS.—Beginning on the date of the enactment of this
Act and ending on the date on which the cost accounting system
described in subsection (a) is fully implemented, the Commissioner
of Customs shall prepare and submit to Congress on a quarterly
basis a report on the progress of implementing the cost accounting
system pursuant to subsection (a).
SEC. 335. STUDY AND REPORT RELATING TO TIMELINESS OF PROSPEC-
TIVE RULINGS.
(a) STUDY.—The Comptroller General shall conduct a study
on the extent to which the Office of Regulations and Rulings of
the Customs Service has made improvements to decrease the
amount of time to issue prospective rulings from the date on which
a request for the ruling is received by the Customs Service.
(b) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, the Comptroller General shall submit to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a report containing
the results of the study conducted under subsection (a).
(c) DEFINITION.—In this section, the term ‘‘prospective ruling’’
means a ruling that is requested by an importer on goods that
are proposed to be imported into the United States and that relates
to the proper classification, valuation, or marking of such goods.
SEC. 336. STUDY AND REPORT RELATING TO CUSTOMS USER FEES.
(a) STUDY.—The Comptroller General shall conduct a study
on the extent to which the amount of each customs user fee imposed
under section 13031(a) of the Consolidated Omnibus Budget Rec-
onciliation Act of 1985 (19 U.S.C. 58c(a)) is commensurate with
the level of services provided by the Customs Service relating to
the fee so imposed.
(b) REPORT.—Not later than 120 days after the date of the
enactment of this Act, the Comptroller General shall submit to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a report in classified
form containing—
(1) the results of the study conducted under subsection
(a); and
(2) recommendations for the appropriate amount of the
customs user fees if such results indicate that the fees are
not commensurate with the level of services provided by the
Customs Service.
SEC. 337. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS COURIER
FACILITIES.
(a) IN GENERAL.—Section 13031(b)(9) of the Consolidated Omni-
bus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) is
amended as follows:
(1) In subparagraph (A)—
H. R. 3009—47
(A) in the matter preceding clause (i), by striking ‘‘the
processing of merchandise that is informally entered or
released’’ and inserting ‘‘the processing of letters, docu-
ments, records, shipments, merchandise, or any other item
that is valued at an amount that is less than $2,000 (or
such higher amount as the Secretary of the Treasury may
set by regulation pursuant to section 498 of the Tariff
Act of 1930), except such items entered for transportation
and exportation or immediate exportation’’; and
(B) by striking clause (ii), and inserting the following:
‘‘(ii) Subject to the provisions of subparagraph (B),
in the case of an express consignment carrier facility
or centralized hub facility, $.66 per individual airway
bill or bill of lading.’’.
(2) By redesignating subparagraph (B) as subparagraph
(C) and inserting after subparagraph (A) the following:
‘‘(B)(i) Beginning in fiscal year 2004, the Secretary
of the Treasury may adjust (not more than once per fiscal
year) the amount described in subparagraph (A)(ii) to an
amount that is not less than $.35 and not more than
$1.00 per individual airway bill or bill of lading. The Sec-
retary shall provide notice in the Federal Register of a
proposed adjustment under the preceding sentence and
the reasons therefor and shall allow for public comment
on the proposed adjustment.
‘‘(ii) Notwithstanding section 451 of the Tariff Act of
1930, the payment required by subparagraph (A)(ii) shall
be the only payment required for reimbursement of the
Customs Service in connection with the processing of an
individual airway bill or bill of lading in accordance with
such subparagraph and for providing services at express
consignment carrier facilities or centralized hub facilities,
except that the Customs Service may require such facilities
to cover expenses of the Customs Service for adequate
office space, equipment, furnishings, supplies, and security.
‘‘(iii)(I) The payment required by subparagraph (A)(ii)
and clause (ii) of this subparagraph shall be paid on a
quarterly basis by the carrier using the facility to the
Customs Service in accordance with regulations prescribed
by the Secretary of the Treasury.
‘‘(II) 50 percent of the amount of payments received
under subparagraph (A)(ii) and clause (ii) of this subpara-
graph shall, in accordance with section 524 of the Tariff
Act of 1930, be deposited in the Customs User Fee Account
and shall be used to directly reimburse each appropriation
for the amount paid out of that appropriation for the costs
incurred in providing services to express consignment car-
rier facilities or centralized hub facilities. Amounts depos-
ited in accordance with the preceding sentence shall be
available until expended for the provision of customs serv-
ices to express consignment carrier facilities or centralized
hub facilities.
‘‘(III) Notwithstanding section 524 of the Tariff Act
of 1930, the remaining 50 percent of the amount of pay-
ments received under subparagraph (A)(ii) and clause (ii)
of this subparagraph shall be paid to the Secretary of
H. R. 3009—48
the Treasury, which is in lieu of the payment of fees
under subsection (a)(10) of this section.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) take effect on October 1, 2002.
SEC. 338. NATIONAL CUSTOMS AUTOMATION PROGRAM.
Section 411(b) of the Tariff Act of 1930 (19 U.S.C. 1411(b))
is amended by striking the second sentence and inserting the fol-
lowing: ‘‘The Secretary may, by regulation, require the electronic
submission of information described in subsection (a) or any other
information required to be submitted to the Customs Service sepa-
rately pursuant to this subpart.’’.
SEC. 339. AUTHORIZATION OF APPROPRIATIONS FOR CUSTOMS
STAFFING.
There are authorized to be appropriated to the Department
of Treasury such sums as may be necessary to provide an increase
in the annual rate of basic pay—
(1) for all journeyman Customs inspectors and Canine
Enforcement Officers who have completed at least one year’s
service and are receiving an annual rate of basic pay for posi-
tions at GS–9 of the General Schedule under section 5332
of title 5, United States Code, from the annual rate of basic
pay payable for positions at GS–9 of the General Schedule
under such section 5332, to an annual rate of basic pay payable
for positions at GS–11 of the General Schedule under such
section 5332; and
(2) for the support staff associated with the personnel
described in subparagraph (A), at the appropriate GS level
of the General Schedule under such section 5332.
CHAPTER 4—ANTITERRORISM PROVISIONS
SEC. 341. IMMUNITY FOR UNITED STATES OFFICIALS THAT ACT IN
GOOD FAITH.
(a) IMMUNITY.—Section 3061 of the Revised Statutes (19 U.S.C.
482) is amended—
(1) by striking ‘‘Any of the officers’’ and inserting ‘‘(a)
Any of the officers’’; and
(2) by adding at the end the following:
‘‘(b) Any officer or employee of the United States conducting
a search of a person pursuant to subsection (a) shall not be held
liable for any civil damages as a result of such search if the
officer or employee performed the search in good faith and used
reasonable means while effectuating such search.’’.
(b) REQUIREMENT TO POST POLICY
AND PROCEDURES
FOR
SEARCHES OF PASSENGERS.—Not later than 30 days after the date
of the enactment of this Act, the Commissioner of Customs shall
ensure that at each Customs border facility appropriate notice
is posted that provides a summary of the policy and procedures
of the Customs Service for searching passengers, including a state-
ment of the policy relating to the prohibition on the conduct of
profiling of passengers based on gender, race, color, religion, or
ethnic background.
H. R. 3009—49
SEC. 342. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS OF ENTRY,
OR STAFFING OF THE CUSTOMS SERVICE.
Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318) is
amended—
(1) by striking ‘‘Whenever the President’’ and inserting
‘‘(a) Whenever the President’’; and
(2) by adding at the end the following:
‘‘(b)(1) Notwithstanding any other provision of law, the Sec-
retary of the Treasury, when necessary to respond to a national
emergency declared under the National Emergencies Act (50 U.S.C.
1601 et seq.) or to a specific threat to human life or national
interests, is authorized to take the following actions on a temporary
basis:
‘‘(A) Eliminate, consolidate, or relocate any office or port
of entry of the Customs Service.
‘‘(B) Modify hours of service, alter services rendered at
any location, or reduce the number of employees at any location.
‘‘(C) Take any other action that may be necessary to
respond directly to the national emergency or specific threat.
‘‘(2) Notwithstanding any other provision of law, the Commis-
sioner of Customs, when necessary to respond to a specific threat
to human life or national interests, is authorized to close tempo-
rarily any Customs office or port of entry or take any other lesser
action that may be necessary to respond to the specific threat.
‘‘(3) The Secretary of the Treasury or the Commissioner of
Customs, as the case may be, shall notify the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate not later than 72 hours after taking
any action under paragraph (1) or (2).’’.
SEC. 343. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR
CARGO AND OTHER IMPROVED CUSTOMS REPORTING
PROCEDURES.
(a) CARGO INFORMATION.—
(1) IN GENERAL.—Subject to paragraphs (2) and (3), not
later than 1 year after the date of enactment of this Act,
the Secretary shall promulgate regulations providing for the
transmission to the Customs Service, through an electronic
data interchange system, of information pertaining to cargo
destined for importation into the United States or exportation
from the United States, prior to such importation or expor-
tation.
(2) INFORMATION REQUIRED.—The information required by
the regulations promulgated pursuant to paragraph (1) under
the parameters set forth in paragraph (3) shall be such informa-
tion as the Secretary determines to be reasonably necessary
to ensure aviation, maritime, and surface transportation safety
and security pursuant to those laws enforced and administered
by the Customs Service.
(3) PARAMETERS.—In developing regulations pursuant to
paragraph (1), the Secretary shall adhere to the following
parameters:
(A) The Secretary shall solicit comments from and
consult with a broad range of parties likely to be affected
by the regulations, including importers, exporters, carriers,
customs brokers, and freight forwarders, among other
interested parties.
H. R. 3009—50
(B) In general, the requirement to provide particular
information shall be imposed on the party most likely to
have direct knowledge of that information. Where requiring
information from the party with direct knowledge of that
information is not practicable, the regulations shall take
into account how, under ordinary commercial practices,
information is acquired by the party on which the require-
ment is imposed, and whether and how such party is
able to verify the information. Where information is not
reasonably verifiable by the party on which a requirement
is imposed, the regulations shall permit that party to
transmit information on the basis of what it reasonably
believes to be true.
(C) The Secretary shall take into account the existence
of competitive relationships among the parties on which
requirements 
to 
provide 
particular 
information 
are
imposed.
(D) Where the regulations impose requirements on car-
riers of cargo, they shall take into account differences
among different modes of transportation, including dif-
ferences in commercial practices, operational characteris-
tics, and technological capacity to collect and transmit
information electronically.
(E) The regulations shall take into account the extent
to which the technology necessary for parties to transmit
and the Customs Service to receive and analyze data in
a timely fashion is available. To the extent that the Sec-
retary determines that the necessary technology will not
be widely available to particular modes of transportation
or other affected parties until after promulgation of the
regulations, the regulations shall provide interim require-
ments appropriate for the technology that is available at
the time of promulgation.
(F) The information collected pursuant to the regula-
tions shall be used exclusively for ensuring aviation, mari-
time, and surface transportation safety and security, and
shall not be used for determining entry or for any other
commercial enforcement purposes.
(G) The regulations shall protect the privacy of busi-
ness proprietary and any other confidential information
provided to the Customs Service. However, this parameter
does not repeal, amend, or otherwise modify other provi-
sions of law relating to the public disclosure of information
transmitted to the Customs Service.
(H) In determining the timing for transmittal of any
information, the Secretary shall balance likely impact on
flow of commerce with impact on aviation, maritime, and
surface transportation safety and security. With respect
to requirements that may be imposed on carriers of cargo,
the timing for transmittal of information shall take into
account differences among different modes of transpor-
tation, as described in subparagraph (D).
(I) Where practicable, the regulations shall avoid
imposing requirements that are redundant with one
another or that are redundant with requirements in other
provisions of law.
H. R. 3009—106
‘‘(ix) APPAREL
ARTICLES
ASSEMBLED
IN
ONE
OR
MORE
CBTPA
BENEFICIARY
COUNTRIES
FROM
UNITED
STATES
AND
CBTPA
BENEFICIARY
COUNTRY
COMPO-
NENTS.—Apparel articles sewn or otherwise assembled
in one or more CBTPA beneficiary countries with
thread formed in the United States from components
cut in the United States and in one or more CBTPA
beneficiary countries from fabric wholly formed in the
United States from yarns wholly formed in the United
States, or from components knit-to-shape in the United
States and one or more CBTPA beneficiary countries
from yarns wholly formed in the United States, or
both (including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603
of the HTS). Apparel articles shall qualify under this
clause only if they meet the requirements of clause
(i) or (ii) (as the case may be) with respect to dyeing,
printing, and finishing of knit and woven fabrics from
which the articles are assembled.’’.
(b) EFFECTIVE DATE OF CERTAIN PROVISIONS.—The amendment
made by subsection (a)(3) shall take effect on October 1, 2002.
SEC. 3108. TRADE BENEFITS UNDER THE AFRICAN GROWTH AND
OPPORTUNITY ACT.
(a) IN GENERAL.—Section 112(b) of the African Growth and
Opportunity Act (19 U.S.C. 3721(b)) is amended as follows:
(1) Paragraph (1) is amended by amending the matter
preceding subparagraph (A) to read as follows:
‘‘(1) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE BENE-
FICIARY
SUB-SAHARAN
AFRICAN
COUNTRIES.—Apparel articles
sewn or otherwise assembled in one or more beneficiary sub-
Saharan African countries from fabrics wholly formed and cut,
or from components knit-to-shape, in the United States from
yarns wholly formed in the United States, (including fabrics
not formed from yarns, if such fabrics are classifiable under
heading 5602 or 5603 of the Harmonized Tariff Schedule of
the United States and are wholly formed and cut in the United
States) that are—’’.
(2) Paragraph (2) is amended to read as follows:
‘‘(2) OTHER APPAREL ARTICLES ASSEMBLED IN ONE OR MORE
BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES.—Apparel arti-
cles sewn or otherwise assembled in one or more beneficiary
sub-Saharan African countries with thread formed in the
United States from fabrics wholly formed in the United States
and cut in one or more beneficiary sub-Saharan African coun-
tries from yarns wholly formed in the United States, or from
components knit-to-shape in the United States from yarns
wholly formed in the United States, or both (including fabrics
not formed from yarns, if such fabrics are classifiable under
heading 5602 or 5603 of the Harmonized Tariff Schedule of
the United States and are wholly formed in the United States).’’.
(3) Paragraph (3) is amended—
(A) by amending the matter preceding subparagraph
(A) to read as follows:
‘‘(3) APPAREL ARTICLES FROM REGIONAL FABRIC OR YARNS.—
Apparel articles wholly assembled in one or more beneficiary
sub-Saharan African countries from fabric wholly formed in