I 
109TH CONGRESS 
1ST SESSION H. R. 4156 
To amend the Trade Act of 1974 to extend the trade adjustment assistance 
program to the service sector, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 27, 2005 
Mr. SMITH of Washington (for himself, Mr. RANGEL, Mr. CARDIN, Mr. 
STARK, Mr. LEVIN, Mr. MCDERMOTT, Mr. MCNULTY, Mr. JEFFERSON, 
Mrs. JONES of Ohio, Mr. EMANUEL, Mrs. TAUSCHER, Mr. KIND, Mr. 
DAVIS of Alabama, Mr. ACKERMAN, Mr. ALLEN, Mr. BAIRD, Ms. BALD-
WIN, Ms. BEAN, Mr. BERMAN, Mr. BLUMENAUER, Mr. BOREN, Mr. BOU-
CHER, Mr. CARDOZA, Mr. CARNAHAN, Mr. CASE, Mr. COSTELLO, Mr. 
CROWLEY, Ms. DELAURO, Mr. DICKS, Mr. DINGELL, Mr. ENGEL, Mr. 
ETHERIDGE, Ms. ESHOO, Mr. FORD, Mr. GONZALEZ, Mr. AL GREEN of 
Texas, Mr. GENE GREEN of Texas, Mr. GRIJALVA, Ms. HARMAN, Ms. 
HERSETH, Mr. HIGGINS, Mr. HINOJOSA, Mr. HOLDEN, Ms. HOOLEY, 
Mr. HOLT, Mr. INSLEE, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. 
KILDEE, Ms. KILPATRICK of Michigan, Mr. LARSEN of Washington, Ms. 
LEE, Mr. LYNCH, Mrs. MALONEY, Mr. MATHESON, Ms. MATSUI, Mrs. 
MCCARTHY, Ms. MCCOLLUM of Minnesota, Mr. MCINTYRE, Mr. MEEKS 
of New York, Mr. MICHAUD, Ms. MILLENDER-MCDONALD, Mr. MILLER 
of North Carolina, Mr. GEORGE MILLER of California, Mr. NADLER, Mr. 
OWENS, Mr. PRICE of North Carolina, Mr. RYAN of Ohio, Ms. LINDA T. 
SA´NCHEZ of California, Mr. SANDERS, Mr. SNYDER, Ms. SOLIS, Mr. 
STRICKLAND, Mr. VAN HOLLEN, Mr. WEXLER, Ms. SCHWARTZ of Penn-
sylvania, and Mr. ROSS) introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committees 
on Education and the Workforce, Energy and Commerce, and Govern-
ment Reform, 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 extend the trade adjust-
ment assistance program to the service sector, 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 ‘‘Trade Adjustment As-
sistance Improvement Act’’. 
SEC. 2. FINDINGS. 
The Congress makes the following findings: 
(1) Furthering trade and economic engagement 
with other nations is a necessary, but not sufficient, 
component of a long term strategy to grow the 
United States economy and promote American com-
petitiveness in the global economy. 
(2) A comprehensive strategy for economic 
growth and competitiveness of the United States 
must— 
(A) build a strong framework of rules for 
international trade; 
(B) open substantial new markets for 
American goods, services, and farm products in 
order to level the playing field for American 
workers in all sectors of the economy; and 
(C) establish a comprehensive framework 
to provide training and education to Americans 
throughout their lives so that they may take full
advantage of the opportunities of the global 
economy and adjust to changing technological 
demands. 
(3) The Trade Adjustment Assistance program 
provided for under the Trade Act of 1974 forms a 
critical component of this comprehensive strategy for 
American competitiveness, by helping hard-working 
Americans transition to the global economy and ad-
just to economic changes resulting from the trade 
policy of the United States. 
(4) As currently structured, however, the Trade 
Adjustment Assistance program fails to ensure that 
all workers negatively affected by trade have access 
to the assistance they need to compete in the global 
economy, as service workers are excluded entirely 
from the program, a lack of adequate funding for 
training leaves many dislocated workers without 
timely access to the training they need to find jobs, 
and unnecessary and burdensome hurdles prevent el-
igible workers from gaining access to benefits for 
which they are eligible. 
SEC. 3. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE 
TO SERVICES SECTOR. 
(a) ADJUSTMENT ASSISTANCE FOR WORKERS.—Sec-
tion 221(a)(1)(A) of the Trade Act of 1974 (19 U.S.C.
2271(a)(1)(A)) is amended by striking ‘‘agricultural 
firm)’’ and inserting ‘‘firm, and workers in a service sector 
firm or subdivision of a service sector firm or public agen-
cy)’’. 
(b) GROUP ELIGIBILITY REQUIREMENTS.—Section 
222 of the Trade Act of 1974 (19 U.S.C. 2272) is amend-
ed— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘agricultural firm)’’ and inserting 
‘‘agricultural firm, and workers in a service sec-
tor firm or subdivision of a service sector firm 
or public agency)’’; 
(B) in paragraph (1), by inserting ‘‘or 
public agency’’ after ‘‘of the firm’’; and 
(C) in paragraph (2)— 
(i) in subparagraph (A)(ii), by strik-
ing ‘‘like or directly competitive with arti-
cles produced’’ and inserting ‘‘or services 
like or directly competitive with articles 
produced or services provided’’; and 
(ii) by striking subparagraph (B) and 
inserting the following: 
‘‘(B)(i) there has been a shift, by such 
workers’ firm, subdivision, or public agency to
a foreign country, of production of articles, or 
in provision of services, like or directly competi-
tive with articles which are produced, or serv-
ices which are provided, by such firm, subdivi-
sion, or public agency; or 
‘‘(ii) such workers’ firm, subdivision, or 
public agency has obtained or is likely to obtain 
services described in clause (i) from a foreign 
country.’’; 
(2) in subsection (b)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘agricultural firm)’’ and inserting 
‘‘agricultural firm, and workers in a service sec-
tor firm or subdivision of a service sector firm 
or public agency)’’; 
(B) in paragraph (2), by inserting ‘‘or 
service’’ after ‘‘related to the article’’; and 
(C) in paragraph (3)(A), by inserting ‘‘or 
services’’ after ‘‘component parts’’; 
(3) in subsection (c)— 
(A) in paragraph (3)— 
(i) by inserting ‘‘or services’’ after 
‘‘value-added production processes’’;
(ii) by striking ‘‘or finishing’’ and in-
serting ‘‘, finishing, testing, packaging, or 
maintenance or transportation services’’; 
(iii) by inserting ‘‘or services’’ after 
‘‘for articles’’; 
(iv) by inserting ‘‘(or subdivision)’’ 
after ‘‘such other firm’’; and 
(v) by striking ‘‘, if the certification’’ 
and all that follows through ‘‘Mexico’’; and 
(B) in paragraph (4)— 
(i) by striking ‘‘for articles’’ and in-
serting ‘‘, or services, for articles or serv-
ices’’; and 
(ii) by inserting ‘‘(or subdivision)’’ 
after ‘‘such other firm’’; and 
(4) by adding at the end the following new sub-
sections: 
‘‘(d) BASIS FOR SECRETARY’S DETERMINATIONS.— 
‘‘(1) INCREASED
IMPORTS.—For purposes of 
subsection (a)(2)(A)(ii), the Secretary may deter-
mine that increased imports of like or directly com-
petitive articles or services exist if the workers’ firm 
or subdivision, or customers of the workers’ firm or 
subdivision accounting for not less than 20 percent 
of the sales of the workers’ firm or subdivision, cer-
tify to the Secretary that they are obtaining such ar-
ticles or services from a foreign country. 
‘‘(2) OBTAINING SERVICES ABROAD.—For pur-
poses of subsection (a)(2)(B)(ii), the Secretary may 
determine that the workers’ firm, subdivision, or 
public agency has obtained or is likely to obtain like 
or directly competitive services from a foreign coun-
try based on a certification thereof from the work-
ers’ firm, subdivision, or public agency. 
‘‘(3) AUTHORITY
OF
THE
SECRETARY.—The 
Secretary may obtain the certifications under para-
graphs (1) and (2) through questionnaires or such 
other manner as the Secretary determines is appro-
priate. 
‘‘(e) ADDITIONAL INFORMATION.—In determining 
whether to certify a group of workers under subsection 
(a) or (b) pursuant to a petition filed under section 221, 
the Secretary should contact officials of firms and unions, 
employees, and any other persons, government agencies 
(whether Federal or State), or organizations, both public 
and private, as appropriate, in order to confirm informa-
tion furnished in the petition and to elicit other relevant 
information.’’. 
(c) TRAINING.—
(1) FUNDING.—Section 236(a)(2)(A) of the 
Trade Act of 1974 (19 U.S.C. 2296(a)(2)(A)) is 
amended by striking ‘‘for any fiscal year shall not 
exceed $220,000,000.’’ and inserting ‘‘shall not ex-
ceed— 
‘‘(i) $440,000,000 in each of fiscal years 2006 
and 2007; 
‘‘(ii) $484,000,000 in fiscal year 2008; 
‘‘(iii) $528,000,000 in fiscal year 2009; 
‘‘(iv) $572,000,000 in fiscal year 2010; 
‘‘(v) $616,000,000 in fiscal year 2011; and 
‘‘(vi) $660,000,000 in fiscal year 2012.’’. 
(2) REPORT
ON
ALLOCATION
OF
TRAINING 
FUNDS.—The Comptroller General shall, not later 
than 6 months after the date of the enactment of 
this Act, evaluate and report to the Congress on the 
effectiveness of the mechanism for allocating train-
ing funds between the States and among individuals 
under section 236(a)(2) of the Trade Act of 1974. 
The report shall contain— 
(A) an evaluation of the adequacy of total 
funding for training of adversely affected work-
ers eligible for trade adjustment assistance 
under chapter 2 of title II of the Trade Act of 
1974, and the extent to which the allocation
mechanism provides States and individuals with 
sufficient training funds to meet the needs of 
all such eligible workers; and 
(B) recommendations for improving the al-
location of training funds to States and individ-
uals under section 236(a)(2) of the Trade Act 
of 1974. 
(d) DEFINITIONS.—Section 247 of the Trade Act of 
1974 (19 U.S.C. 2319) is amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘or public agency’’ after 
‘‘of a firm’’; and 
(B) by inserting ‘‘or public agency’’ after 
‘‘or subdivision’’; 
(2) in paragraph (2)(B), by inserting ‘‘or public 
agency’’ after ‘‘the firm’’; 
(3) by redesignating paragraphs (8) through 
(17) as paragraphs (9) through (18), respectively; 
and 
(4) by inserting after paragraph (6) the fol-
lowing: 
‘‘(7) The term ‘public agency’ means a depart-
ment or agency of a State or local government or of 
the Federal Government.
‘‘(8) The term ‘service sector firm’ means an 
entity engaged in the business of providing serv-
ices.’’. 
(e) TECHNICAL AMENDMENT.—Section 245(a) of the 
Trade Act of 1974 (19 U.S.C. 2317(a)) is amended by 
striking ‘‘, other than subchapter D’’. 
SEC. 4. TRAINING. 
(a) BASIS FOR WAIVER.—Section 231(c)(1) of the 
Trade Act of 1974 (19 U.S.C. 2291(c)(1)) is amended by 
adding at the end the following: 
‘‘(G) ADVANCED
DEGREE
OR
CERTIFI-
CATION.—The worker possesses a postgraduate 
degree from an institution of higher education 
(as defined in section 101(a) of the Higher 
Education Act of 1965) or equivalent foreign 
institution, or has received an equivalent post-
graduate certification in a specialized field, and 
there is a reasonable expectation of employment 
at equivalent wages in the foreseeable future.’’. 
(b) TRAINING PROGRAMS.—Section 236(a)(5) of the 
Trade Act of 1974 (19 U.S.C. 2296(a)(5)) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (E)(ii); 
(2) by striking the period at the end of sub-
paragraph (F) and inserting ‘‘, and’’; and