A bill to amend the International Coffee Agreement Act of 1980.
PL 98-120 (H.R.3813), enacted 10/12/1983

PUBLIC LAW 98-120—OCT. 12, 1983 
97 STAT. 809 
Public Law 98-120 
98th Congress 
An Act 
To amend the International Coffee Agreement Act of 1980. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
NEGOTIATING AUTHORITY INVOLVING THE INTERNATIONAL COFFEE 
AGREEMENT, 1983 
SECTION 1. The International Coffee Agreement Act of 1980 (19 
U.S.C. 1356k, et seq.) is amended— 
(1) by striking out "1976" in sections 2, 3, and 5 and inserting 
in lieu thereof ", 1983", and 
(2) by striking out "for such period prior to October 1, 1983 as 
the agreement remains in effect" in section 2, and inserting in 
lieu thereof "before October 1,1986". 
Oct. 12, 1983 
[H.R. 3813] 
International 
Coffee 
Agreement Act 
of 1980, 
amendment. 
19 u s e 1356k, 
1356/, 1356n. 
19 u s e 1356k. 
REAUTHORIZATION OF PROGRAMS FOR WORKERS AND FIRMS 
SEC. 2. (a) Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is 
amended by striking out "each of fiscal years 1982 and 1983" and 
inserting in lieu thereof "each of the fiscal years 1982 through 
1985". 
(b) Section 285 of such Act is amended by striking out "September 
30,1983" and inserting in lieu thereof "September 30,1985". 
19 u s e note 
prec. 2271. 
CONTRIBUTED IMPORTANTLY TEST FOR GROUP EUGIBILITY 
SEC. 3. (a) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is 
amended— 
(1) in paragraph (3), by striking out "were a substantial cause 
of such total or partial separation, or threat thereof, and of such 
decline" and inserting in lieu thereof "contributed importantly 
to such total or partial separation, or threat thereof, and to such 
decline"; and 
(2) by amending the last sentence to read as follows: "For 
purposes of paragraph (3), the term 'contributed importantly' 
means a cause which is important, but not necessarily more 
important than any other cause.". 
(b) The amendments made by subsection (a) shall apply with 
respect to petitions for certification filed under section 221 of the 
Trade Act of 1974 on or after October 1,1983. 
"Contributed 
importantly." 
19 u s e 2272 
note. 
19 u s e 2271. 
PREFERENCE FOR FIRMS HAVING EMPLOYEE STOCK OWNERSHIP PLANS 
SEC. 4. (a) Section 255 of the Trade Act of 1974 (19 U.S.C. 2345) is 
amended by adding at the end thereof the following new subsection: 
97 STAT. 810 
PUBLIC LAW 98-120—OCT. 12, 1983 
Director 
guaranteed loan, 
requirements. 
19 u s e 2341. 
Employee stock 
ownership plan. 
Recipient 
corporation, 
lender, and 
qualified trust. 
Agreement 
requirements. 
"Preference for Firms Having Employee Stock Ownership Plans 
"(i)(l) When considering whether to grant a direct loan or to 
guarantee a loan to a corporation which is otherwise certified under 
section 251, the Secretary shall give preference to a corporation 
which agrees with respect to such loan to fulfill the following 
requirements— 
"(A) 25 percent of the principal amount of the loan is paid by 
the lender to a qualified trust established under an employee 
stock ownership plan established and maintained by the recipi-
ent corporation, by a parent or subsidiary of such corporation, 
or by several corporations including the recipient corporation, 
"(B) the employee stock ownership plan meets the require-
ments of this subsection, and 
"(C) the agreement among the recipient corporation, the 
lender, and the qualified trust relating to the loan meets the 
requirements of this section. 
"(2) An employee stock ownership plan does not meet the require-
ments of this subsection unless the governing instrument of the plan 
provides that— 
"(A) the amount of the loan paid under paragraph (IXA) to 
the qualified trust will be used to purchase qualified employer 
securities, 
"(B) the qualified trust will repay to the lender the amount of 
such loan, together with the interest thereon, out of amounts 
contributed to the trust by the recipient corporation, and 
"(C) from time to time, as the qualified trust repays such 
amount, the trust will allocate qualified employer securities 
among the individual accounts of participants and their 
beneficiaries in accordance with the provisions of paragraph (4). 
"(3) The agreement among the recipient corporation, the lender, 
and the qualified trust does not meet the requirements of this 
subsection unless— 
"(A) it is unconditionally enforceable by any party against the 
others, jointly and severally, 
"(B) it provides that the liability of the qualified trust to 
repay loan amounts paid to the qualified trust may not, at any 
time, exceed an amount equal to the amount of contributions 
required under paragraph (2XB) which are actually received by 
such trust, 
"(C) it provides that amounts received by the recipient corpo-
ration from the qualified trust for qualified employer securities 
purchased for the purpose of this subsection will be used exclu-
sively by the recipient corporation for those purposes for which 
it may use that portion of the loan paid directly to it by the 
lender, 
"(D) it provides that the recipient corporation may not reduce 
the amount of its equity capital during the one year period 
beginning on the date on which the qualified trust purchases 
qualified employer securities for purposes of this subsection, 
and 
PUBLIC LAW 98-120—OCT. 12, 1983 
97 STAT. 811 
"(E) it provides that the recipient corporation will make 
contributions to the qualified trust of not less than such 
amounts as are necessary for such trust to meet its obligation to 
make repayments of principal and interest on the amount of the 
loan received by the trust without r^ard to whether such 
contributions are deductible by the corporation under section 
404 of the Internal Revenue Code of 1954 and without regard to 
any other amounts the recipient corporation is obligated under 
law to contribute to or under the employee stock ownership 
plan. 
"(4) At the close of each plan year, an employee stock ownership 
plan shall allocate to the accounts of participating employees that 
portion of the qualified employer securities the cost of which bears 
substantiedly the same ratio to the cost of all the qualified employer 
securities purchased under paragraph (2XA) of this subsection as the 
amount of the loan principal and interest repaid by the qualified 
trust during that year bears to the total amount of the loan princi-
pal and interest payable by such trust during the term of such loan. 
Qualified employer securities allocated to the individual account of 
a participant during one plan year must bear substantially the same 
proportion to the amount of all such securities allocated to all 
participants in the plan as the amount of compensation paid to such 
participant bears to the total amount of compensation paid to all 
such participants during that year. 
"(5) For purposes of this subsection, the term— 
"(A) 'employee stock ownership plan' means a plan described 
in section 4975(eX7) of the Internal Revenue Code of 1954, 
"(B) 'qualified trust' means a trust established under an 
employee stock ownership plan and meeting the requirements 
of title I of the Employee Retirement Income Security Act of 
1974 and section 401 of the Internal Revenue Code of 1954, 
"(C) 'qualified employer securities* means common stock 
issued by the recipient corporation or by a parent or subsidiary 
of such corporation with voting power and dividend rights no 
less favorable than the voting power and dividend rights on 
other common stock issued by the issuing corporation and with 
voting power being exercised by the participants in the em-
ployee stock ownership plan after it is allocated to their plan 
accounts, and 
26 use 404. 
Definitions. 
26 use 4975. 
29 u s e 1001. 
26 use 401. 
97 STAT. 812 
PUBLIC LAW 98-120—OCT. 12, 1983 
"(D) *equity capital* means, with respect to the recipient 
corporation, the sum of its money and other property (in an 
amount equal to the acijusted basis of such property but disre-
garding ac^ustments made on account of depreciation or amorti-
zation made during the period described in paragraph (3KD)), 
less the amount of its indebtedness.". 
Effective date. 
(jj) The amendment made by subsection (a) shall become effective 
note 
on the date of the enactment of this Act. 
Approved October 12, 1983. 
LEGISLATIVE HISTORY—H.R. 3813 (S. 1847): 
HOUSE REPORT No. 98-376 (Comm. on Ways and Means). 
SENATE REPORT No. 98-250 accompanying S. 1847 (Comm. on Finance). 
CONGRESSIONAL RECORD, Vol. 129 (1983): 
Sept. 27, considered and passed House. 
Sept. 30, considered and passed Senate, amended, in lieu of S. 1847; House 
concurred in Senate amendment.