I 
108TH CONGRESS 
2D SESSION 
H. R. 5030 
To amend the Trade Act of 1974 to provide trade adjustment assistance 
to the services sector and for communities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 8, 2004 
Mr. MICHAUD introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Vet-
erans’ Affairs, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Trade Act of 1974 to provide trade adjust-
ment assistance to the services sector and for commu-
nities, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Invest in American 
Workers Act of 2004’’. 
SEC. 2. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE 
TO SERVICES SECTOR. 
(a) ADJUSTMENT ASSISTANCE FOR WORKERS.—
(1) ELIGIBILITY.—Section 221(a)(1)(A) of the 
Trade Act of 1974 (19 U.S.C. 2271(a)(1)(A)) is 
amended by striking ‘‘firm)’’ and inserting ‘‘firm, 
and workers in a service sector firm or subdivision 
of a service sector firm’’. 
(2) GROUP ELIGIBILITY REQUIREMENTS.—Sec-
tion 222 of the Trade Act of 1974 (19 U.S.C. 2272) 
is amended— 
(A) in subsection (a)— 
(i) in the matter preceding paragraph 
(1), by striking ‘‘agricultural firm)’’ and 
inserting ‘‘agricultural firm, and workers 
in a service sector firm or subdivision of a 
service sector firm)’’; 
(ii) in paragraph (2)— 
(I) in subparagraph (A)(ii), by 
striking ‘‘like or directly competitive 
with articles produced’’ and inserting 
‘‘or services like or directly competi-
tive with articles produced or services 
provided’’; and 
(II) by inserting after subpara-
graph (B) the following: 
‘‘(C)(i) there has been a shift, by such 
workers’ firm or subdivision to a foreign coun-
try, in provision of services like or directly com-
petitive with services which are provided by 
such firm or subdivision; or 
‘‘(ii) such workers’ firm or subdivision has 
obtained or is likely to obtain services described 
in clause (i) from a foreign country’’; 
(B) in subsection (b), in the matter pre-
ceding paragraph (1), by striking ‘‘agricultural 
firm)’’ and inserting ‘‘agricultural firm, and 
workers in a service sector firm or subdivision 
of a service sector firm)’’; and 
(C) in subsection (c)(3)— 
(i) by inserting ‘‘(or subdivision)’’ 
after ‘‘such other firm’’; and 
(ii) by striking ‘‘, if the certification’’ 
and all that follows through ‘‘Mexico’’. 
(3) DEFINITIONS.—Section 247 of the Trade 
Act of 1974 (19 U.S.C. 2319) is amended by insert-
ing after paragraph (6) the following: 
‘‘(7) The term ‘service sector firm’ means an 
entity engaged in the business of providing informa-
tion technology or other high technology services.’’. 
(b) TRADE ADJUSTMENT ASSISTANCE FOR FIRMS 
AND INDUSTRIES.— 
(1) FIRMS.—
(A) ASSISTANCE.—Section 251 of the 
Trade Act of 1974 (19 U.S.C. 2341) is amend-
ed— 
(i) in subsection (a), by inserting ‘‘or 
service sector firm’’ after ‘‘(including any 
agricultural firm’’; and 
(ii) in subsection (c)(1)— 
(I) in the matter preceding sub-
paragraph (A), by inserting ‘‘or serv-
ice sector firm’’ after ‘‘any agricul-
tural firm’’; 
(II) in subparagraph (B)(ii), by 
inserting ‘‘or service’’ after ‘‘of an ar-
ticle’’; and 
(III) in subparagraph (C), by 
striking ‘‘articles like or directly com-
petitive with articles which are pro-
duced’’ and inserting ‘‘articles or serv-
ices like or directly competitive with 
articles or services which are produced 
or provided’’. 
(B) DEFINITION.—Section 261 of the 
Trade Act of 1974 (19 U.S.C. 2351) is amend-
ed—
(i) by striking ‘‘For purposes of’’ and 
inserting ‘‘(a) FIRM.—For purposes of’’; 
and 
(ii) by adding at the end the fol-
lowing: 
‘‘(b) SERVICE SECTOR FIRM.—For purposes of this 
chapter, the term ‘service sector firm’ means a firm en-
gaged in the business of providing services.’’. 
(2) INDUSTRIES.—Section 265(a) of the Trade 
Act of 1974 (19 U.S.C. 2355(a)) is amended by in-
serting ‘‘or service’’ after ‘‘new product’’. 
SEC. 3. TRADE ADJUSTMENT ASSISTANCE FOR COMMU-
NITIES. 
(a) IN GENERAL.—Chapter 4 of title II of the Trade 
Act of 1974 (19 U.S.C. 2371 et seq.) is amended to read 
as follows: 
‘‘CHAPTER 4—TRADE ADJUSTMENT 
ASSISTANCE FOR COMMUNITIES 
‘‘SEC. 271. DEFINITIONS. 
‘‘In this chapter: 
‘‘(1) AFFECTED
DOMESTIC
PRODUCER.—The 
term ‘affected domestic producer’ means any manu-
facturer, producer, farmer, rancher, fisherman or 
worker representative (including associations of such 
persons) that was affected by a finding under the
Antidumping Act of 1921, or by an antidumping or 
countervailing duty order issued under title VII of 
the Tariff Act of 1930. 
‘‘(2) AGRICULTURAL COMMODITY PRODUCER.— 
The term ‘agricultural 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) 
COMMUNITY.—The 
term 
‘community’ 
means a city, county, or other political subdivision of 
a State or a consortium of political subdivisions of 
a State that the Secretary certifies as being nega-
tively impacted by trade. 
‘‘(4) COMMUNITY
NEGATIVELY
IMPACTED
BY 
TRADE.—A community negatively impacted by trade 
means a community with respect to which a deter-
mination has been made under section 273. 
‘‘(5) ELIGIBLE COMMUNITY.—The term ‘eligible 
community’ means a community certified under sec-
tion 273 for assistance under this chapter. 
‘‘(6) FISHERMAN.— 
‘‘(A) IN GENERAL.—The term ‘fisherman’ 
means any person who— 
‘‘(i) is engaged in commercial fishing; 
or
‘‘(ii) is a United States fish processor. 
‘‘(B) COMMERCIAL FISHING, FISH, FISH-
ERY, FISHING, FISHING VESSEL, PERSON, AND 
UNITED STATES FISH PROCESSOR.—The terms 
‘commercial fishing’, ‘fish’, ‘fishery’, ‘fishing’, 
‘fishing vessel’, ‘person’, and ‘United States fish 
processor’ have the same meanings as such 
terms have in the Magnuson-Stevens Fishery 
Conservation and Management Act (16 U.S.C. 
1802). 
‘‘(7) JOB LOSS.—The term ‘job loss’ means the 
total or partial separation of an individual, as those 
terms are defined in section 247. 
‘‘(8) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Commerce. 
‘‘SEC. 272. COMMUNITY TRADE ADJUSTMENT ASSISTANCE 
PROGRAM. 
‘‘(a) ESTABLISHMENT.—Within 6 months after the 
date of enactment of the Invest in American Workers Act 
of 2004, the Secretary shall establish a Trade Adjustment 
Assistance for Communities Program at the Department 
of Commerce. 
‘‘(b) PERSONNEL.—The Secretary shall designate 
such staff as may be necessary to carry out the respon-
sibilities described in this chapter.
‘‘(c) COORDINATION OF FEDERAL RESPONSE.—The 
Secretary shall— 
‘‘(1) provide leadership, support, and coordina-
tion for a comprehensive management program to 
address economic dislocation in eligible communities; 
‘‘(2) coordinate the Federal response to an eli-
gible community— 
‘‘(A) by identifying all Federal, State, and 
local resources that are available to assist the 
eligible community in recovering from economic 
distress; 
‘‘(B) by ensuring that all Federal agencies 
offering assistance to an eligible community do 
so in a targeted, integrated manner that en-
sures that an eligible community has access to 
all available Federal assistance; 
‘‘(C) by assuring timely consultation and 
cooperation between Federal, State, and re-
gional officials concerning economic adjustment 
for an eligible community; and 
‘‘(D) by identifying and strengthening ex-
isting agency mechanisms designed to assist eli-
gible communities in their efforts to achieve 
economic adjustment and workforce reemploy-
ment;
‘‘(3) provide comprehensive technical assistance 
to any eligible community in the efforts of that com-
munity to— 
‘‘(A) identify serious economic problems in 
the community that are the result of negative 
impacts from trade; 
‘‘(B) integrate the major groups and orga-
nizations significantly affected by the economic 
adjustment; 
‘‘(C) access Federal, State, and local re-
sources designed to assist in economic develop-
ment and trade adjustment assistance; 
‘‘(D) diversify and strengthen the commu-
nity economy; and 
‘‘(E) develop a community-based strategic 
plan to address economic development and 
workforce dislocation, including unemployment 
among agricultural commodity producers, and 
fishermen; 
‘‘(4) establish specific criteria for submission 
and evaluation of a strategic plan submitted under 
section 274(d); 
‘‘(5) establish specific criteria for submitting 
and evaluating applications for grants under section 
275;
‘‘(6) administer the grant programs established 
under sections 274 and 275; and 
‘‘(7) establish an interagency Trade Adjustment 
Assistance for Communities Working Group, con-
sisting of the representatives of any Federal depart-
ment or agency with responsibility for economic ad-
justment assistance, including the Department of 
Agriculture, the Department of Education, the De-
partment of Labor, the Department of Housing and 
Urban Development, the Department of Health and 
Human Services, the Small Business Administra-
tion, the Department of the Treasury, the Depart-
ment of Commerce, and any other Federal, State, or 
regional department or agency the Secretary deter-
mines necessary or appropriate. 
‘‘SEC. 273. CERTIFICATION AND NOTIFICATION. 
‘‘(a) CERTIFICATION.—Not later than 45 days after 
an event described in subsection (c)(1), the Secretary of 
Commerce shall determine if a community described in 
subsection (b)(1) is negatively impacted by trade, and if 
a positive determination is made, shall certify the commu-
nity for assistance under this chapter. 
‘‘(b) DETERMINATION THAT COMMUNITY IS ELIGI-
BLE.—
‘‘(1) COMMUNITY
DESCRIBED.—A community 
described in this paragraph means a community 
with respect to which on or after October 1, 2004— 
‘‘(A) the Secretary of Labor certifies a 
group of workers (or their authorized represent-
ative) in the community as eligible for assist-
ance pursuant to section 223; 
‘‘(B) the Secretary of Commerce certifies a 
firm located in the community as eligible for 
adjustment assistance under section 251; 
‘‘(C) the Secretary of Agriculture certifies 
a group of agricultural commodity producers 
(or their authorized representative) in the com-
munity as eligible for adjustment assistance 
under section 293; 
‘‘(D) an affected domestic producer is lo-
cated in the community; or 
‘‘(E) the Secretary determines that a sig-
nificant number of fishermen in the community 
is negatively impacted by trade. 
‘‘(2) NEGATIVELY IMPACTED BY TRADE.—The 
Secretary shall determine that a community is nega-
tively impacted by trade, after taking into consider-
ation—
‘‘(A) the number of jobs affected compared 
to the size of workforce in the community; 
‘‘(B) the severity of the rates of unemploy-
ment in the community and the duration of the 
unemployment in the community; 
‘‘(C) the income levels and the extent of 
underemployment in the community; 
‘‘(D) the outmigration of population from 
the community and the extent to which the out-
migration is causing economic injury in the 
community; and 
‘‘(E) the unique problems and needs of the 
community. 
‘‘(c) DEFINITION AND SPECIAL RULES.— 
‘‘(1) EVENT DESCRIBED.—An event described 
in this paragraph means one of the following: 
‘‘(A) A notification described in paragraph 
(2). 
‘‘(B) A certification of a firm under section 
251. 
‘‘(C) A finding under the Antidumping Act 
of 1921, or an antidumping or countervailing 
duty order issued under title VII of the Tariff 
Act of 1930.
‘‘(D) A determination by the Secretary 
that a significant number of fishermen in a 
community have been negatively impacted by 
trade. 
‘‘(2) NOTIFICATION.—The Secretary of Labor, 
immediately upon making a determination that a 
group of workers is eligible for trade adjustment as-
sistance under section 223, (or the Secretary of Ag-
riculture, immediately upon making a determination 
that a group of agricultural commodity producers is 
eligible for adjustment assistance under section 293, 
as the case may be) shall notify the Secretary of 
Commerce of the determination. 
‘‘(3) LOOK BACK.—In any case in which an 
event described in paragraph (1) occurred on or 
after January 1, 1998, and before the effective date 
of this chapter, the Secretary shall, not later than 
45 days after such effective date, determine whether 
the community is negatively impacted by trade, and 
if a positive determination is made, shall certify the 
community for assistance under this chapter. 
‘‘(d) NOTIFICATION TO ELIGIBLE COMMUNITIES.— 
Immediately upon certification by the Secretary of Com-
merce that a community is eligible for assistance under 
subsection (b), the Secretary shall notify the community—
‘‘(1) of the determination under subsection (b); 
‘‘(2) of the provisions of this chapter; 
‘‘(3) how to access the clearinghouse established 
by the Department of Commerce regarding available 
economic assistance; 
‘‘(4) how to obtain technical assistance provided 
under section 272(c)(3); and 
‘‘(5) how to obtain grants, tax credits, low in-
come loans, and other appropriate economic assist-
ance. 
‘‘SEC. 274. STRATEGIC PLANS. 
‘‘(a) IN GENERAL.—An eligible community may de-
velop a strategic plan for community economic adjustment 
and diversification. 
‘‘(b) REQUIREMENTS
FOR STRATEGIC PLAN.—A 
strategic plan shall contain, at a minimum, the following: 
‘‘(1) A description and justification of the ca-
pacity for economic adjustment, including the meth-
od of financing to be used. 
‘‘(2) A description of the commitment of the 
community to the strategic plan over the long term 
and the participation and input of groups affected 
by economic dislocation. 
‘‘(3) A description of the projects to be under-
taken by the eligible community.
‘‘(4) A description of how the plan and the 
projects to be undertaken by the eligible community 
will lead to job creation and job retention in the 
community. 
‘‘(5) A description of how the plan will achieve 
economic adjustment and diversification. 
‘‘(6) A description of how the plan and the 
projects will contribute to establishing or maintain-
ing a level of public services necessary to attract and 
retain economic investment. 
‘‘(7) A description and justification for the cost 
and timing of proposed basic and advanced infra-
structure improvements in the eligible community. 
‘‘(8) A description of how the plan will address 
the occupational and workforce conditions in the eli-
gible community. 
‘‘(9) A description of the educational programs 
available for workforce training and future employ-
ment needs. 
‘‘(10) A description of how the plan will adapt 
to changing markets and business cycles. 
‘‘(11) A description and justification for the 
cost and timing of the total funds required by the 
community for economic assistance.
‘‘(A) the purpose of the grant program 
from which the grant is made is to provide 
technical or other assistance for planning, con-
structing, or equipping public works facilities or 
to provide assistance for public service projects; 
and 
‘‘(B) the grant is 1 for which the commu-
nity is eligible except for the community’s in-
ability to meet the non-Federal share require-
ments of the grant program. 
‘‘(2) USE AS NON-FEDERAL SHARE.—A supple-
mental grant made under this subsection may be 
used to provide the non-Federal share of a project, 
unless the total Federal contribution to the project 
for which the grant is being made exceeds 80 per-
cent and that excess is not permitted by law. 
‘‘(c) RURAL COMMUNITY PREFERENCE.—The Sec-
retary shall develop guidelines to ensure that rural com-
munities receive preference in the allocation of resources. 
‘‘SEC. 276. GENERAL PROVISIONS. 
‘‘(a) REGULATIONS.—The Secretary shall prescribe 
such regulations as are necessary to carry out the provi-
sions of this chapter. Before implementing any regulation 
or guideline proposed by the Secretary with respect to this 
chapter, the Secretary shall submit the regulation or
guideline to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Rep-
resentatives for approval. 
‘‘(b) SUPPLEMENT NOT SUPPLANT.—Funds appro-
priated under this chapter shall be used to supplement and 
not supplant other Federal, State, and local public funds 
expended to provide economic development assistance for 
communities. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary 
$350,000,000 for each of fiscal years 2005 through 2008, 
to carry out this chapter. Amounts appropriated pursuant 
to this subsection shall remain available until expended.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) TERMINATION.—Section 285(b) of the 
Trade Act of 1974 (19 U.S.C. 2271 note) is amend-
ed by adding at the end the following new para-
graph: 
‘‘(3) ASSISTANCE
FOR
COMMUNITIES.—Tech-
nical assistance and other payments may not be pro-
vided under chapter 4 after September 30, 2008.’’. 
(2) TABLE OF CONTENTS.—The table of con-
tents for title II of the Trade Act of 1974 is amend-
ed by striking the items relating to chapter 4 of title
II and inserting after the items relating to chapter 
3 the following new items: 
‘‘CHAPTER 4—TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES 
‘‘271. Definitions. 
‘‘272. Community Trade Adjustment Assistance Program. 
‘‘273. Certification and notification. 
‘‘274. Strategic plans. 
‘‘275. Grants for economic development. 
‘‘276. General provisions.’’. 
(3) JUDICIAL REVIEW.—Section 284(a) of the 
Trade Act of 1974 (19 U.S.C. 2395(a)) is amended 
by striking ‘‘section 271’’ and inserting ‘‘section 
273’’. 
(c) EFFECTIVE DATE.—The provisions of this section 
shall take effect on October 1, 2004. 
SEC. 
4. 
WAIVER 
OF 
DELIMITING 
PERIOD 
FOR 
EDU-
CATIONAL ASSISTANCE UNDER THE MONT-
GOMERY GI BILL FOR VETERANS WHO FILE 
CLAIMS FOR UNEMPLOYMENT COMPENSA-
TION. 
Section 3031 of title 38, United States Code, is 
amended— 
(1) by redesignating subsection (h) as sub-
section (i); 
(2) by striking ‘‘(b) through (g)’’ in the matter 
preceding paragraph (1) of subsection (a) and in-
serting ‘‘(b) through (h)’’; and
(3) by inserting after subsection (g) the fol-
lowing new subsection (h): 
‘‘(h)(1) In the case of a qualified individual (de-
scribed in paragraph (2)), the 10-year period described in 
subsection (a) for the use of entitlement under this chap-
ter shall not apply. 
‘‘(2) A qualified individual referred to in paragraph 
(1) is an individual— 
‘‘(A) with respect to whom, the 10-year period 
described in subsection (a) has expired; 
‘‘(B) who, on the last day of such 10-year pe-
riod, had remaining entitlement to educational as-
sistance under this chapter; and 
‘‘(C) who demonstrates to the Secretary that 
the individual has filed a claim for benefits under a 
State unemployment compensation law on or after 
the date of the enactment of this subsection. 
‘‘(3) A qualified individual may only use entitlement 
to educational assistance for programs of education pur-
sued on or after the date the individual files an application 
referred to in paragraph (2)(C).’’.
SEC. 5. INCREASE IN CREDIT AMOUNT OF HEALTH INSUR-
ANCE COSTS OF ELIGIBLE INDIVIDUALS. 
(a) IN GENERAL.—Section 35(a) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘65 percent’’ 
and inserting ‘‘100 percent’’. 
(b) CONFORMING AMENDMENT.—Section 7527(b) of 
such Code is amended by striking ‘‘65 percent of’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to payments after December 31, 
2003. 
SEC. 6. UNLIMITED PENALTY-FREE DISTRIBUTIONS FROM 
QUALIFIED RETIREMENT PLANS TO INDIVID-
UALS AFTER SEPARATION FROM EMPLOY-
MENT. 
(a) UNLIMITED PENALTY-FREE DISTRIBUTIONS TO 
UNEMPLOYED
INDIVIDUALS.—Clause (i) of section 
72(t)(2)(D) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(i) IN GENERAL.—Distributions from 
a qualified retirement plan to an individual 
after separation from employment— 
‘‘(I) if the individual has received 
unemployment compensation for 12 
consecutive weeks under any Federal 
or State unemployment compensation 
law by reason of such separation, and
‘‘(II) if such distributions are 
made during any taxable year during 
which such unemployment compensa-
tion is paid or the succeeding taxable 
year.’’. 
(b) CONFORMING AMENDMENT.—The heading for 
subparagraph (D) of section 72(t)(2) of such Code is 
amended in the heading by striking ‘‘FOR HEALTH INSUR-
ANCE PREMIUMS’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions after December 31, 
2003. 
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