I 
108TH CONGRESS 
2D SESSION 
H. R. 3881
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 
MARCH 3, 2004
Mr. SMITH of Washington (for himself, Mr. HOLDEN, Mr. INSLEE, Mr. RAN-
GEL, Mr. LEVIN, Mr. MATSUI, Mr. STARK, Mr. CARDIN, Mr. 
MCDERMOTT, Mr. MCNULTY, Mr. BECERRA, Mrs. JONES of Ohio, Mr. 
SPRATT, Mr. GEORGE MILLER of California, Mr. DICKS, Mr. BAIRD, Mr. 
LARSEN of Washington, and Ms. SLAUGHTER) introduced the following 
bill; which was referred to the Committee on Ways and Means 
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 Equity For Service Workers Act of 2004’’.
SEC. 2. 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 ‘‘firm)’’ and insert-
ing ‘‘firm, and workers in a service sector firm or subdivi-
sion of a service sector firm or public agency)’’. 
(b) GROUP ELIGIBILITY REQUIREMENTS.—Section 
222 of the Trade Act of 1974 (19 U.S.C. 2272) is 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’’; 
(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, or testing’’; 
(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-
section: 
‘‘(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.’’. 
(c) TRAINING.—Section 236(a)(2)(A) of the Trade 
Act of 1974 (19 U.S.C. 2296(a)(2)(A)) is amended by 
striking ‘‘$220,000,000’’ and inserting ‘‘$440,000,000’’. 
(d) DEFINITIONS.—Section 247 of the Trade Act of 
1974 (19 U.S.C. 2319) is amended—
(1) in paragraph (1)—
(A) by inserting ‘‘or public agency’’ after 
‘‘of a firm’’; and 
(B) by inserting ‘‘or public agency’’ after 
‘‘or subdivision’’;
(2) in paragraph (2)(B), by inserting ‘‘or public 
agency’’ after ‘‘the firm’’; 
(3) by redesignating paragraphs (8) through 
(17) as paragraphs (9) through (18), respectively; 
(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. 3. 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-
(A) in subsection (a), by inserting ‘‘or 
service sector firm’’ after ‘‘(including any agri-
cultural firm’’; 
(B) in subsection (c)(1)—
(i) in the matter preceding subpara-
graph (A), by inserting ‘‘or service sector 
firm’’ after ‘‘any agricultural firm’’; 
(ii) in subparagraph (B)(ii), by insert-
ing ‘‘or service’’ after ‘‘of an article’’; and 
(iii) in subparagraph (C), by striking 
‘‘articles like or directly competitive with 
articles which are produced’’ and inserting 
‘‘articles or services like or directly com-
petitive with articles or services which are 
produced or provided’’; and 
(C) by adding at the end the following: 
‘‘(e) BASIS FOR SECRETARY DETERMINATION.—
‘‘(1) INCREASED
IMPORTS.—For purposes of 
subsection (c)(1)(C), the Secretary may determine 
that increases of imports of like or directly competi-
tive articles or services exist if customers accounting 
for not less than 20 percent of the sales of the work-
ers’ firm certify to the Secretary that they are ob-
taining such articles or services from a foreign coun-
try.
‘‘(2) AUTHORITY
OF
THE
SECRETARY.—The 
Secretary may obtain the certifications under para-
graph (1) through questionnaires or such other man-
ner as the Secretary determines is appropriate. The 
subpoena power described in section 249 shall be ex-
tended to the Secretary for purposes of carrying out 
this subsection.’’. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.—
Section 256(b) of the Trade Act of 1974 (19 U.S.C. 
2346(b)) is amended—
(A) by striking ‘‘$16,000,000’’ and insert-
ing ‘‘$32,000,000’’; and 
(B) by adding at the end the following: ‘‘If 
the amount appropriated pursuant to this sub-
section in any fiscal year is less than the 
amount authorized to be appropriated by this 
subsection, the Secretary shall consult with the 
Committee on Ways and Means and the Com-
mittee on Appropriations of the House of Rep-
resentatives, the Committee on Finance and the 
Committee on Appropriations of the Senate, 
and any other committee of appropriate juris-
diction in Congress on allocating the amount so 
appropriated.’’.
(3) DEFINITION.—Section 261 of the Trade 
Act of 1974 (19 U.S.C. 2351) is amended—
(A) by striking ‘‘For purposes of’’ and in-
serting ‘‘(a) FIRM.—For purposes of’’; and 
(B) by adding at the end the following: 
‘‘(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.’’. 
(b) INDUSTRIES.—Section 265(a) of the Trade Act 
of 1974 (19 U.S.C. 2355(a)) is amended by inserting ‘‘or 
service’’ after ‘‘new product’’. 
(c) CLERICAL AMENDMENT.—(1) Section 249 of the 
Trade Act of 1974 (19 U.S.C. 2321) is amended—
(A) by amending the section heading to read as 
follows: 
‘‘SEC. 249. SUBPOENA AUTHORITY.’’;
and 
(B) by striking ‘‘subpena’’ each place it appears 
and inserting ‘‘subpoena’’. 
(2) The item relating to section 249 in the table of 
contents of the Trade Act of 1974 is amended to read 
as follows:
‘‘249. Subpoena authority.’’.
SEC. 5. MONITORING AND REPORTING. 
Section 282 of the Trade Act of 1974 (19 U.S.C. 
2393) is amended—
(1) in this first sentence—
(A) by striking ‘‘The Secretary’’ and in-
serting ‘‘(a) MONITORING
PROGRAMS.—The 
Secretary’’; 
(B) by inserting ‘‘and services’’ after ‘‘im-
ports of articles’’; 
(C) by inserting ‘‘and domestic provision of 
services’’ after ‘‘domestic production’’; 
(D) by inserting ‘‘or providing services’’ 
after ‘‘producing articles’’; and 
(E) by inserting ‘‘, or provision of serv-
ices,’’ after ‘‘changes in production’’; and 
(2) by adding at the end the following: 
‘‘(b) COLLECTION OF DATA AND REPORTS.—
‘‘(1) SECRETARY
OF
LABOR.—(A) Not later 
than 3 months after the date of the enactment of 
the Trade Adjustment Assistance Equity Service 
Workers Act of 2004, the Secretary of Labor shall 
implement a system to collect data on all adversely 
affected workers who receive adjustment assistance 
under this chapter, including the number of workers 
by State, industry, the cause of dislocation of each 
worker, the adjustment assistance received by each 
worker, and outcomes relating to employment, reten-
tion, and earnings.
‘‘(B) Not later than 16 months after such date 
of enactment, the Secretary of Labor shall report to 
the Committee on Ways and Means of the House of 
Representatives, the Committee on Finance of the 
Senate, and any other committee of appropriate ju-
risdiction, on whether changes to eligibility require-
ments, benefits, or training funding should be made 
based on the data collected under subparagraph (A). 
‘‘(2) SECRETARY
OF
COMMERCE.—Not later 
than 6 months after such date of enactment, the 
Secretary of Commerce shall, in consultation with 
the Secretary of Labor, conduct a study and report 
to the Congress on ways to improve the timeliness 
and coverage of data on trade in services, including 
methods to identify increased imports due to the re-
location of United States firms to foreign countries, 
and increased imports due to United States firms 
obtaining services from firms in foreign countries.’’. 
SEC. 
6. 
MODIFICATIONS 
RELATING 
TO 
CREDIT 
FOR 
HEALTH INSURANCE COSTS OF CERTAIN TAA 
AND PBGC PENSION RECIPIENTS. 
(a) PRESUMPTIVE STATUS AS A TAA RECIPIENT.—
(1) IN GENERAL.—Subsection (c) of section 35 
of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph:
(2) RATING SYSTEM REQUIREMENT.—Subpara-
graph (J) of section 35(e)(1) of such Code is amend-
ed by adding at the end the following: ‘‘Such term 
does not include any insurance unless the premiums 
for such insurance are restricted based on a commu-
nity rating system or rate-band system.’’. 
(d) PERIOD OF CREDITABLE COVERAGE MEASURED 
FROM DATE OF SEPARATION FROM EMPLOYMENT.—
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
35(e)(2)(B) of such Code is amended by striking 
‘‘the date on which the individual seeks to enroll in 
the coverage described in subparagraphs (B) 
through (H) of paragraph (1)’’ and inserting ‘‘the 
end of the 30-day period described in paragraph 
(1)(J)’’. 
(2) SPECIAL RULE FOR ELIGIBLE PBGC PEN-
SION RECIPIENTS.—
(A) IN GENERAL.—Subsection (e) of sec-
tion 35 of such Code is amended by adding at 
the end the following new paragraph: 
‘‘(4) SPECIAL RULE FOR ELIGIBLE PBGC PEN-
SION RECIPIENTS.—In the case of an eligible PBGC 
pension recipient (and any qualifying family member 
of such recipient), the term ‘qualified health insur-
ance’ shall not include any coverage described in
paragraph (1) (other than subparagraphs (A) and 
(I) thereof) unless such recipient enrolls in such cov-
erage during the 90-day period beginning on the 
later of—
‘‘(A) the last day of the first month with 
respect to which such recipient becomes an eli-
gible PBGC pension recipient, or 
‘‘(B) the date of the enactment of the 
Trade Adjustment Assistance Equity for Serv-
ice Workers Act of 2004.’’. 
(B) OUTREACH.—The Secretary of the 
Treasury shall carry out a program to notify in-
dividuals prior to their becoming eligible PBGC 
pension recipients (as defined in section 35 of 
the Internal Revenue Code of 1986) of the re-
quirement of subsection (e)(4) of such section. 
(e) CONTINUED QUALIFICATION OF FAMILY MEM-
BERS AFTER ELIGIBLE INDIVIDUAL BECOMES MEDICARE 
ELIGIBLE.—Subsection (g) of section 35 is amended by 
redesignating paragraph (9) as paragraph (10) and insert-
ing after paragraph (8) the following new paragraph: 
‘‘(9) CONTINUED
QUALIFICATION
OF
FAMILY 
MEMBERS
AFTER
ELIGIBLE
INDIVIDUAL
BECOMES 
MEDICARE ELIGIBLE.—In the case of a month which 
would be an eligible coverage month with respect to
an eligible individual but for subsection (f)(2)(A), 
such month shall be treated as an eligible coverage 
month with respect to any qualifying family member 
of such eligible individual (but not with respect to 
such eligible individual).’’. 
(f) OFFERING OF FEDERAL FALLBACK COVERAGE IN 
STATES NOT OFFERING STATE QUALIFIED HEALTH IN-
SURANCE.—
(1) PROVISION OF FALLBACK COVERAGE.—
(A) IN GENERAL.—The Director of the Of-
fice of Personnel Management jointly with the 
Secretary of the Treasury shall establish a pro-
gram under which individuals described in sub-
paragraph (B) are offered enrollment under 
health benefit plans that are made available 
under FEHBP. 
(B) INDIVIDUALS
DESCRIBED.—For pur-
poses of subparagraph (A), individuals de-
scribed in this subparagraph are eligible indi-
viduals (as defined in subsection (c)(1) of sec-
tion 35 of the Internal Revenue Code of 1986) 
who reside in a State in which any qualified 
health insurance described in subparagraphs 
(B) through (I) of subsection (e)(1) of such sec-
tion is not offered.
(2) TERMS AND CONDITIONS.—The terms and 
conditions of health benefits plans under paragraph 
(1) shall be the same as the terms and coverage of-
fered under FEHBP, except that the premium 
charged for such health benefit plans offered under 
such paragraph shall be equal to the full premium 
(including both employer and beneficiary share) 
charged for such coverage for full-time employees 
under FEHBP. 
(3) STUDY.—The Director of the Office of Per-
sonnel Management jointly with the Secretary of the 
Treasury shall conduct a study of the impact of the 
offering of health benefit plans under this subsection 
on the terms and conditions, including premiums, 
for health benefit plans offered under FEHBP and 
shall submit to Congress, not later than 2 years 
after the date of the enactment of this Act, a report 
on such study. Such report may contain such rec-
ommendations regarding the establishment of sepa-
rate risk pools for individuals covered under 
FEHBP and eligible individuals covered this sub-
section as may be appropriate to protect the inter-
ests of individuals covered under FEHBP. 
(4) FEHBP DEFINED.—For purposes of this 
subsection, the term ‘‘FEHBP’’ means the Federal
Employees Health Benefits Program offered under 
chapter 89 of title 5, United States Code. 
(5) CONFORMING AMENDMENT.—Paragraph (1) 
of section 35(e) of the Internal Revenue Code of 
1986 is amended by adding at the end the following: 
‘‘(K) Coverage under a health benefits plan 
offered under section 6(e) of the Trade Adjust-
ment Assistance Equity for Service Workers 
Act of 2004.’’. 
(g) REPORT
TO CONGRESS.—Not later than 18 
months after the date of the enactment of this Act, the 
Secretary of the Treasury shall transmit to the Congress 
a report which includes the recommendations of the Sec-
retary regarding increasing the number eligible individuals 
who are covered by qualified health insurance, including 
increasing such number by increasing the credit subsidy 
under section 35 of the Internal Revenue Code of 1986 
to make the premiums for such insurance more affordable. 
Terms used in this subsection which are defined in such 
section shall have the meaning given such terms by such 
section. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to months beginning after the date
of the enactment of this Act in taxable years ending after 
such date.
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