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H.R. 3009 (107th): Trade Act of 2002


The text of the bill below is as of May 24, 2002 (Passed the Senate with an Amendment).


HR 3009 EAS

In the Senate of the United States,

May 23, 2002.

Resolved, That the bill from the House of Representatives (H.R. 3009) entitled ‘An Act to extend the Andean Trade Preference Act, to grant additional trade benefits under that Act, and for other purposes.’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

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 4 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.

    (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 FOR WORKERS

      Sec. 111. Adjustment assistance for workers.

      Sec. 112. Displaced worker self-employment training pilot program.

TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

      Sec. 201. Reauthorization of program.

TITLE III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

      Sec. 301. Purpose.

      Sec. 302. Trade adjustment assistance for communities.

TITLE IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

      Sec. 401. Trade adjustment assistance for farmers.

TITLE V--TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN

      Sec. 501. Trade adjustment assistance for fishermen.

TITLE VI--HEALTH CARE COVERAGE OPTIONS FOR WORKERS ELIGIBLE FOR TRADE ADJUSTMENT ASSISTANCE

      Sec. 601. Trade adjustment assistance health insurance credit.

      Sec. 602. Advance payment of trade adjustment assistance health insurance credit.

      Sec. 603. Health insurance coverage for eligible individuals.

TITLE VII--CONFORMING AMENDMENTS AND EFFECTIVE DATE

      Sec. 701. Conforming amendments.

TITLE VIII--SAVINGS PROVISIONS AND EFFECTIVE DATE

      Sec. 801. Savings provisions.

      Sec. 802. Effective date.

TITLE IX--REVENUE PROVISIONS

      Sec. 901. Custom user fees.

TITLE X--MISCELLANEOUS PROVISIONS

      Sec. 1001. Country of origin labeling of fish and shellfish products.

      Sec. 1002. Sugar policy.

TITLE XI--CUSTOMS REAUTHORIZATION

      Sec. 1101. Short title.

Subtitle A--United States Customs Service

Chapter 1--Drug Enforcement and Other Noncommercial and Commercial Operations

      Sec. 1111. Authorization of appropriations for noncommercial operations, commercial operations, and air and marine interdiction.

      Sec. 1112. Antiterrorist and illicit narcotics detection equipment for the United States-Mexico border, United States-Canada border, and Florida and the Gulf Coast seaports.

      Sec. 1113. Compliance with performance plan requirements.

Chapter 2--Child Cyber-Smuggling Center of the Customs Service

      Sec. 1121. Authorization of appropriations for program to prevent child pornography/child sexual exploitation.

Chapter 3--Miscellaneous Provisions

      Sec. 1131. Additional Customs Service officers for United States-Canada border.

      Sec. 1132. Study and report relating to personnel practices of the Customs Service.

      Sec. 1133. Study and report relating to accounting and auditing procedures of the Customs Service.

      Sec. 1134. Establishment and implementation of cost accounting system; reports.

      Sec. 1135. Study and report relating to timeliness of prospective rulings.

      Sec. 1136. Study and report relating to customs user fees.

      Sec. 1137. Authorization of appropriations for Customs staffing.

Chapter 4--Antiterrorism Provisions

      Sec. 1141. Emergency adjustments to offices, ports of entry, or staffing of the Customs Service.

      Sec. 1142. Mandatory advanced electronic information for cargo and passengers.

      Sec. 1143. Border search authority for certain contraband in outbound mail.

      Sec. 1144. Authorization of appropriations for reestablishment of Customs operations in New York City.

Chapter 5--Textile Transshipment Provisions

      Sec. 1151. GAO audit of textile transshipment monitoring by Customs Service.

      Sec. 1152. Authorization of appropriations for textile transshipment enforcement operations.

      Sec. 1153. Implementation of the African Growth and Opportunity Act.

Subtitle B--Office of the United States Trade Representative

      Sec. 1161. Authorization of appropriations.

Subtitle C--United States International Trade Commission

      Sec. 1171. Authorization of appropriations.

Subtitle D--Other Trade Provisions

      Sec. 1181. Increase in aggregate value of articles exempt from duty acquired abroad by United States residents.

      Sec. 1182. Regulatory audit procedures.

Subtitle E--Sense of Senate

      Sec. 1191. Sense of Senate.

DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY

TITLE XXI--TRADE PROMOTION AUTHORITY

      Sec. 2101. Short title; 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 already 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. Identification of small business advocate at WTO.

      Sec. 2113. Definitions.

DIVISION C--ANDEAN TRADE PREFERENCE ACT

TITLE XXXI--ANDEAN TRADE PREFERENCE

      Sec. 3101. Short title; findings.

      Sec. 3102. Temporary provisions.

      Sec. 3103. Termination.

TITLE XXXII--MISCELLANEOUS TRADE BENEFITS

      Sec. 3201. Wool provisions.

      Sec. 3202. Duty suspension on wool.

      Sec. 3203. Ceiling fans.

      Sec. 3204. Certain steam or other vapor generating boilers used in nuclear facilities.

DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT AND OTHER PROVISIONS

TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES

      Sec. 4101. Generalized system of preferences.

      Sec. 4102. Amendments to generalized system of preferences.

TITLE XLII--OTHER PROVISIONS

      Sec. 4201. Transparency in NAFTA tribunals.

      Sec. 4202. Expression of solidarity with Israel in its fight against terrorism.

      Sec. 4203. Limitation on use of certain revenue.

      Sec. 4204. Sense of the Senate regarding the United States-Russian Federation summit meeting, May 2002.

      Sec. 4205. No appropriations.

DIVISION A--TRADE ADJUSTMENT ASSISTANCE

SEC. 101. SHORT TITLE.

    This division may be cited as the ‘Trade Adjustment Assistance Reform Act of 2002’.

TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

SEC. 111. ADJUSTMENT ASSISTANCE FOR WORKERS.

    Chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) is amended to read as follows:

‘CHAPTER 2--ADJUSTMENT ASSISTANCE FOR WORKERS

‘Subchapter A--General Provisions

‘SEC. 221. DEFINITIONS.

    ‘In this chapter:

      ‘(1) ADDITIONAL COMPENSATION- The term ‘additional compensation’ has the meaning given that term in section 205(3) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

      ‘(2) ADVERSELY AFFECTED EMPLOYMENT- The term ‘adversely affected employment’ means employment in a firm or appropriate subdivision of a firm, if workers of that firm or subdivision are eligible to apply for adjustment assistance under this chapter.

      ‘(3) ADVERSELY AFFECTED WORKER-

        ‘(A) IN GENERAL- The term ‘adversely affected worker’ means a worker who is a member of a group of workers certified by the Secretary under section 231(a)(1) as eligible for trade adjustment assistance.

        ‘(B) ADVERSELY AFFECTED SECONDARY WORKER- The term ‘adversely affected worker’ includes an adversely affected secondary worker who is a member of a group of workers employed at a downstream producer or a supplier, that is certified by the Secretary under section 231(a)(2) as eligible for trade adjustment assistance.

      ‘(4) AVERAGE WEEKLY HOURS- The term ‘average weekly hours’ means the average hours worked by a worker (excluding overtime) in the employment from which the worker has been or claims to have been separated in the 52 weeks (excluding weeks during which the worker was on leave for purposes of vacation, sickness, maternity, military service, or any other employer-authorized leave) preceding the week specified in paragraph (5)(B)(ii).

      ‘(5) AVERAGE WEEKLY WAGE-

        ‘(A) IN GENERAL- The term ‘average weekly wage’ means 1/13 of the total wages paid to an individual in the high quarter.

        ‘(B) DEFINITIONS- For purposes of computing the average weekly wage--

          ‘(i) the term ‘high quarter’ means the quarter in which the individual’s total wages were highest among the first 4 of the last 5 completed calendar quarters immediately preceding the quarter in which occurs the week with respect to which the computation is made; and

          ‘(ii) the term ‘week’ means the week in which total separation occurred, or, in cases where partial separation is claimed, an appropriate week, as defined in regulations prescribed by the Secretary.

      ‘(6) BENEFIT PERIOD- The term ‘benefit period’ means, with respect to an individual, the following:

        ‘(A) STATE LAW- The benefit year and any ensuing period, as determined under applicable State law, during which the individual is eligible for regular compensation, additional compensation, or extended compensation.

        ‘(B) FEDERAL LAW- The equivalent to the benefit year or ensuing period provided for under the applicable Federal unemployment insurance law.

      ‘(7) BENEFIT YEAR- The term ‘benefit year’ has the same meaning given that term in the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

      ‘(8) CONTRIBUTED IMPORTANTLY- The term ‘contributed importantly’ means a cause that is important but not necessarily more important than any other cause.

      ‘(9) COOPERATING STATE- The term ‘cooperating State’ means any State that has entered into an agreement with the Secretary under section 222.

      ‘(10) CUSTOMIZED TRAINING- The term ‘customized training’ means training that is designed to meet the special requirements of an employer (including a group of employers) and that is conducted with a commitment by the employer to employ an individual on successful completion of the training.

      ‘(11) DOWNSTREAM PRODUCER- The term ‘downstream producer’ 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 section 231(a)(1) of a group of workers employed by such other firm, if the certification of eligibility under section 231(a)(1) is based on an increase in imports from, or a shift in production to, Canada or Mexico.

      ‘(12) EXTENDED COMPENSATION- The term ‘extended compensation’ has the meaning given that term in section 205(4) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

      ‘(13) JOB FINDING CLUB- The term ‘job finding club’ means a job search workshop which includes a period of structured, supervised activity in which participants attempt to obtain jobs.

      ‘(14) JOB SEARCH PROGRAM- The term ‘job search program’ means a job search workshop or job finding club.

      ‘(15) JOB SEARCH WORKSHOP- The term ‘job search workshop’ means a short (1- to 3-day) seminar, covering subjects such as labor market information, resume writing, interviewing techniques, and techniques for finding job openings, that is designed to provide participants with knowledge that will enable the participants to find jobs.

      ‘(16) ON-THE-JOB TRAINING- The term ‘on-the-job training’ has the same meaning as that term has in section 101(31) of the Workforce Investment Act.

      ‘(17) PARTIAL SEPARATION- A partial separation shall be considered to exist with respect to an individual if--

        ‘(A) the individual has had a 20-percent or greater reduction in the average weekly hours worked by that individual in adversely affected employment; and

        ‘(B) the individual has had a 20-percent or greater reduction in the average weekly wage of the individual with respect to adversely affected employment.

      ‘(18) REGULAR COMPENSATION- The term ‘regular compensation’ has the meaning given that term in section 205(2) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

      ‘(19) REGULAR STATE UNEMPLOYMENT- The term ‘regular State unemployment’ means unemployment insurance benefits other than an extension of unemployment insurance by a State using its own funds beyond either the 26-week period mandated by Federal law or any additional period provided for under the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

      ‘(20) SECRETARY- The term ‘Secretary’ means the Secretary of Labor.

      ‘(21) STATE- The term ‘State’ includes each State of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.

      ‘(22) STATE AGENCY- The term ‘State agency’ means the agency of the State that administers the State law.

      ‘(23) STATE LAW- The term ‘State law’ means the unemployment insurance law of the State approved by the Secretary under section 3304 of the Internal Revenue Code of 1986.

      ‘(24) SUPPLIER- The term ‘supplier’ means a firm that produces and supplies directly to another firm (or subdivision) component parts for articles that were the basis for a certification of eligibility under section 231(a)(1) of a group of workers employed by such other firm.

      ‘(25) TOTAL SEPARATION- The term ‘total separation’ means the layoff or severance of an individual from employment with a firm in which or in a subdivision of which, adversely affected employment exists.

      ‘(26) UNEMPLOYMENT INSURANCE- The term ‘unemployment insurance’ means the unemployment compensation payable to an individual under any State law or Federal unemployment compensation law, including chapter 85 of title 5, United States Code, and the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.).

      ‘(27) WEEK- Except as provided in paragraph 5(B)(ii), the term ‘week’ means a week as defined in the applicable State law.

      ‘(28) WEEK OF UNEMPLOYMENT- The term ‘week of unemployment’ means a week of total, part-total, or partial unemployment as determined under the applicable State law or Federal unemployment insurance law.

‘SEC. 222. AGREEMENTS WITH STATES.

    ‘(a) IN GENERAL- The Secretary is authorized on behalf of the United States to enter into an agreement with any State or with any State agency (referred to in this chapter as ‘cooperating State’ and ‘cooperating State agency’, respectively) to facilitate the provision of services under this chapter.

    ‘(b) PROVISIONS OF AGREEMENTS- Under an agreement entered into under subsection (a)--

      ‘(1) the cooperating State agency as an agent of the United States shall--

        ‘(A) facilitate the early filing of petitions under section 231(b) for any group of workers that the State considers is likely to be eligible for benefits under this chapter;

        ‘(B) assist the Secretary in the review of any petition submitted from that State by verifying the information and providing other assistance as the Secretary may request;

        ‘(C) advise each worker who applies for unemployment insurance of the available benefits under this chapter and the procedures and deadlines for applying for those benefits and of the worker’s potential eligibility for assistance with health care coverage through the trade adjustment assistance health insurance credit under section 6429 of the Internal Revenue Code of 1986 or under funds made available to the State to carry out section 173(f) of the Workforce Investment Act of 1998;

        ‘(D) receive applications for services under this chapter;

        ‘(E) provide payments on the basis provided for in this chapter;

        ‘(F) advise each adversely affected worker to apply for training under section 240, and of the deadlines for benefits related to enrollment in training under this chapter;

        ‘(G) ensure that the State employees with responsibility for carrying out an agreement entered into under subsection (a)--

          ‘(i) inform adversely affected workers covered by a certification issued under section 231(c) of the workers’ (and individual member’s of the worker’s family) potential eligibility for--

            ‘(I) medical assistance under the medicaid program established under title XIX of the Social Security Act (42 U.S.C. 1396a et seq.);

            ‘(II) child health assistance under the State children’s health insurance program established under title XXI of that Act (42 U.S.C. 1397aa et seq.);

            ‘(III) child care services for which assistance is provided under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.);

            ‘(IV) the trade adjustment assistance health insurance credit under section 6429 of the Internal Revenue Code of 1986 and health care coverage assistance under funds made available to the State to carry out section 173(f) of the Workforce Investment Act of 1998; and

            ‘(V) other Federal- and State-funded health care, child care, transportation, and assistance programs for which the workers may be eligible; and

          ‘(ii) provide such workers with information regarding how to apply for such assistance, services, and programs, including notification that the election period for COBRA continuation may be extended for certain workers under section 603 of the Trade Adjustment Assistance Reform Act of 2002;

        ‘(H) provide adversely affected workers referral to training services approved under title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.), and any other appropriate Federal or State program designed to assist dislocated workers or unemployed individuals, consistent with the requirements of subsection (b)(2);

        ‘(I) collect and transmit to the Secretary any data as the Secretary shall reasonably require to assist the Secretary in assuring the effective and efficient performance of the programs carried out under this chapter; and

        ‘(J) otherwise actively cooperate with the Secretary and with other Federal and State agencies in providing payments and services under this chapter, including participation in the performance measurement system established by the Secretary under section 224.

      ‘(2) the cooperating State shall--

        ‘(A) arrange for the provision of services under this chapter through the one-stop delivery system established in section 134(c) of the Workforce Investment Act of 1998 (29 U.S.C. 2864(c)) where available;

        ‘(B) provide to adversely affected workers statewide rapid response activities under section 134(a)(2)(A) of the Workforce Investment Act of 1998 (29 U.S.C. 2864(a)(2)(A)) in the same manner and to the same extent as any other worker eligible for those activities;

        ‘(C) afford adversely affected workers the services provided under section 134(d) of the Workforce Investment Act of 1998 (29 U.S.C. 92864(d)) in the same manner and to the same extent as any other worker eligible for those services; and

        ‘(D) provide training services under this chapter using training providers approved under title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.) which may include community colleges, and other effective providers of training services.

    ‘(c) OTHER PROVISIONS-

      ‘(1) APPROVAL OF TRAINING PROVIDERS- The Secretary shall ensure that the training services provided by cooperating States are provided by organizations approved by the Secretary to effectively assist workers eligible for assistance under this chapter.

      ‘(2) AMENDMENT, SUSPENSION, OR TERMINATION OF AGREEMENTS- Each agreement entered into under this section shall provide the terms and conditions upon which the agreement may be amended, suspended, or terminated.

      ‘(3) EFFECT ON UNEMPLOYMENT INSURANCE- Each agreement entered into under this section shall provide that unemployment insurance otherwise payable to any adversely affected worker will not be denied or reduced for any week by reason of any right to payments under this chapter.

      ‘(4) COORDINATION OF WORKFORCE INVESTMENT ACTIVITIES- In order to promote the coordination of Workforce Investment Act activities in each State with activities carried out under this chapter, each agreement entered into under this section shall provide that the State shall submit to the Secretary, in such form as the Secretary may require, the description and information described in paragraphs (8) and (14) of section 112(b) of the Workforce Investment Act of 1998 (29 U.S.C. 2822(b) (8) and (14)).

    ‘(d) REVIEW OF STATE DETERMINATIONS-

      ‘(1) IN GENERAL- A determination by a cooperating State regarding entitlement to program benefits under this chapter is subject to review in the same manner and to the same extent as determinations under the applicable State law.

      ‘(2) APPEAL- A review undertaken by a cooperating State under paragraph (1) may be appealed to the Secretary pursuant to such regulations as the Secretary may prescribe.

‘SEC. 223. ADMINISTRATION ABSENT STATE AGREEMENT.

    ‘(a) IN GENERAL- In any State in which there is no agreement in force under section 222, the Secretary shall arrange, under regulations prescribed by the Secretary, for the performance of all necessary functions under this chapter, including providing a hearing for any worker whose application for payment is denied.

    ‘(b) FINALITY OF DETERMINATION- A final determination under subsection (a) regarding entitlement to program benefits under this chapter is subject to review by the courts in the same manner and to the same extent as is provided by section 205(g) of the Social Security Act (42 U.S.C. 405(g)).

‘SEC. 224. DATA COLLECTION; EVALUATIONS; REPORTS.

    ‘(a) DATA COLLECTION- The Secretary shall, pursuant to regulations prescribed by the Secretary, collect any data necessary to meet the requirements of this chapter.

    ‘(b) PERFORMANCE EVALUATIONS- The Secretary shall establish an effective performance measuring system to evaluate the following:

      ‘(1) PROGRAM PERFORMANCE-

        ‘(A) speed of petition processing;

        ‘(B) quality of petition processing;

        ‘(C) cost of training programs;

        ‘(D) coordination of programs under this title with programs under the Workforce Investment Act (29 U.S.C. 2801 et seq.);

        ‘(E) length of time participants take to enter and complete training programs;

        ‘(F) the effectiveness of individual contractors in providing appropriate retraining information;

        ‘(G) the effectiveness of individual approved training programs in helping workers obtain employment;

        ‘(H) best practices related to the provision of benefits and retraining; and

        ‘(I) other data to evaluate how individual States are implementing the requirements of this title.

      ‘(2) PARTICIPANT OUTCOMES-

        ‘(A) reemployment rates;

        ‘(B) types of jobs in which displaced workers have been placed;

        ‘(C) wage and benefit maintenance results;

        ‘(D) training completion rates; and

        ‘(E) other data to evaluate how effective programs under this chapter are for participants, taking into consideration current economic conditions in the State.

      ‘(3) PROGRAM PARTICIPATION DATA-

        ‘(A) the number of workers receiving benefits and the type of benefits being received;

        ‘(B) the number of workers enrolled in, and the duration of, training by major types of training;

        ‘(C) earnings history of workers that reflects wages before separation and wages in any job obtained after receiving benefits under this Act;

        ‘(D) the cause of dislocation identified in each certified petition;

        ‘(E) the number of petitions filed and workers certified in each United States congressional district; and

        ‘(F) the number of workers who received waivers under each category identified in section 235(c)(1) and the average duration of such waivers.

    ‘(c) STATE PARTICIPATION- The Secretary shall ensure, to the extent practicable, through oversight and effective internal control measures the following:

      ‘(1) STATE PARTICIPATION- Participation by each State in the performance measurement system established under subsection (b).

      ‘(2) MONITORING- Monitoring by each State of internal control measures with respect to performance measurement data collected by each State.

      ‘(3) RESPONSE- The quality and speed of the rapid response provided by each State under section 134(a)(2)(A) of the Workforce Investment Act of 1998 (29 U.S.C. 2864(a)(2)(A)).

    ‘(d) REPORTS-

      ‘(1) REPORTS BY THE SECRETARY-

        ‘(A) INITIAL REPORT- Not later than 6 months after the date of enactment of the Trade Adjustment Assistance Reform Act of 2002, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that--

          ‘(i) describes the performance measurement system established under subsection (b);

          ‘(ii) includes analysis of data collected through the system established under subsection (b);

          ‘(iii) includes information identifying the number of workers who received waivers under section 235(c) and the average duration of those during the preceding year;

          ‘(iv) describes and analyzes State participation in the system;

          ‘(v) analyzes the quality and speed of the rapid response provided by each State under section 134(a)(2)(A) of the Workforce Investment Act of 1998 (29 U.S.C. 2864(a)(2)(A)); and

          ‘(vi) provides recommendations for program improvements.

        ‘(B) ANNUAL REPORT- Not later than 1 year after the date the report is submitted under subparagraph (A), and annually thereafter, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that includes the information collected under clauses (ii) through (v) of subparagraph (A).

      ‘(2) STATE REPORTS- Pursuant to regulations prescribed by the Secretary, each State shall submit to the Secretary a report that details its participation in the programs established under this chapter, and that contains the data necessary to allow the Secretary to submit the report required under paragraph (1).

      ‘(3) PUBLICATION- The Secretary shall make available to each State, and other public and private organizations as determined by the Secretary, the data gathered and evaluated through the performance measurement system established under paragraph (1).

‘SEC. 225. STUDY BY SECRETARY OF LABOR WHEN INTERNATIONAL TRADE COMMISSION BEGINS INVESTIGATION.

    ‘(a) NOTIFICATION OF INVESTIGATION- Whenever the International Trade Commission begins an investigation under section 202 with respect to an industry, the Commission shall immediately notify the Secretary of that investigation, and the Secretary shall immediately begin a study of--

      ‘(1) the number of workers in the domestic industry producing the like or directly competitive article 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 those workers to the import competition may be facilitated through the use of existing programs.

    ‘(b) REPORT-

      ‘(1) IN GENERAL- The Secretary shall provide a report based on the study conducted under subsection (a) to the President not later than 15 days after the day on which the Commission makes its report under section 202(f).

      ‘(2) PUBLICATION- The Secretary shall promptly make public the report provided to the President under paragraph (1) (with the exception of information which the Secretary determines to be confidential) and shall have a summary of the report published in the Federal Register.

‘SEC. 226. REPORT BY SECRETARY OF LABOR ON LIKELY IMPACT OF TRADE AGREEMENTS.

    ‘(a) IN GENERAL- At least 90 calendar days before the day on which the President enters into a trade agreement under section 2103(b) of the Bipartisan Trade Promotion Authority Act of 2002, the President shall provide the Secretary with details of the agreement as it exists at that time and direct the Secretary to prepare and submit the assessment described in subsection (b). Between the time the President instructs the Secretary to prepare the assessment under this section and the time the Secretary submits the assessment to Congress, the President shall keep the Secretary current with respect to the details of the agreement.

    ‘(b) ASSESSMENT- Not later than 90 calendar days after the President enters into the agreement, the Secretary shall submit to the President, the Committee on Finance of the Senate, the Committee on Ways and Means of the House of Representatives, and the Committees on Appropriations of the Senate and the House of Representatives, a report assessing the likely impact of the agreement on employment in the United States economy as a whole and in specific industrial sectors, including the extent of worker dislocations likely to result from implementation of the agreement. The report shall include an estimate of the financial and administrative resources necessary to provide trade adjustment assistance to all potentially adversely affected workers.

‘Subchapter B--Certifications

‘SEC. 231. CERTIFICATION AS ADVERSELY AFFECTED WORKERS.

    ‘(a) ELIGIBILITY FOR CERTIFICATION-

      ‘(1) GENERAL RULE- A group of workers (including workers in any agricultural firm or subdivision of an agricultural firm) shall be certified by the Secretary as adversely affected workers and eligible for trade adjustment assistance benefits under this chapter pursuant to a petition filed under subsection (b) if the Secretary determines that 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, and that either--

        ‘(A)(i) the sales or production, or both, of such firm or subdivision have decreased absolutely;

        ‘(ii) the value or volume of imports of articles like or directly competitive with articles produced by that firm or subdivision have increased; and

        ‘(iii) the increase in the value or volume of imports described in clause (ii) contributed importantly to the workers’ separation or threat of separation and to the decline in the sales or production of such firm or subdivision; or

        ‘(B) there has been a shift in production by the workers’ firm or subdivision to a foreign country of articles like or directly competitive with articles which are produced by that firm or subdivision and the shift in production contributed importantly to the workers’ separation or threat of separation.

      ‘(2) ADVERSELY AFFECTED SECONDARY WORKER- A group of workers (including workers in any agricultural firm or subdivision of an agricultural firm) shall be certified by the Secretary as adversely affected and eligible for trade adjustment assistance benefits under this chapter pursuant to a petition filed under subsection (b) if the Secretary determines that--

        ‘(A) 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;

        ‘(B) 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 paragraph (1), and such supply or production is related to the article that was the basis for such certification (as defined in section 221 (11) and (24)); and

        ‘(C) a loss of business by the workers’ firm with the firm (or subdivision) described in subparagraph (B) contributed importantly to the workers’ separation or threat of separation determined under subparagraph (A).

      ‘(3) SPECIAL RULE FOR SECONDARY WORKERS- Notwithstanding paragraph (2), the Secretary may, pursuant to standards established by the Secretary and for good cause shown, certify as eligible for trade adjustment assistance under this chapter a group of workers who meet the requirements for certification as adversely affected secondary workers in paragraph (2), except that the Secretary has not received a petition under paragraph (1) on behalf of workers at a firm to which the petitioning workers’ firm is a supplier or downstream producer as defined in section 221 (11) and (24).

      ‘(4) SPECIAL PROVISIONS-

        ‘(A) OIL AND NATURAL GAS PRODUCERS- For purposes of this section, any firm, or appropriate subdivision of a firm, that engages in exploration or drilling for oil or natural gas shall be considered to be a firm producing oil or natural gas.

        ‘(B) OIL AND NATURAL GAS IMPORTS- For purposes of this section, any firm, or appropriate subdivision of a firm, that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas.

        ‘(C) TACONITE- For purposes of this section, taconite pellets produced in the United States shall be considered to be an article that is like or directly competitive with imports of semifinished steel slab.

    ‘(b) PETITIONS-

      ‘(1) IN GENERAL- A petition for certification of eligibility for trade adjustment assistance under this chapter for a group of adversely affected workers shall be filed simultaneously with the Secretary and with the Governor of the State in which the firm or subdivision of the firm employing the workers is located.

      ‘(2) PERSONS WHO MAY FILE A PETITION- A petition under paragraph (1) may be filed by any of the following:

        ‘(A) WORKERS- A group of workers (including workers in an agricultural firm or subdivision of any agricultural firm).

        ‘(B) WORKER REPRESENTATIVES- The certified or recognized union or other duly appointed representative of the workers.

        ‘(C) WORKER ADJUSTMENT AND RETRAINING NOTIFICATION- Any entity to which notice of a plant closing or mass layoff must be given under section 3 of the Worker Adjustment and Retraining Notification Act (29 U.S.C. 2102).

        ‘(D) OTHER- Employers of workers described in subparagraph (A), one-stop operators or one-stop partners (as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)), or State employment agencies, on behalf of the workers.

        ‘(E) REQUEST TO INITIATE CERTIFICATION- The President, or the Committee on Finance of the Senate or the Committee on Ways and Means of the House of Representatives (by resolution), may petition the Secretary to initiate a certification process under this chapter to determine the eligibility for trade adjustment assistance of a group of workers.

      ‘(3) ACTIONS BY GOVERNOR-

        ‘(A) COOPERATING STATE- Upon receipt of a petition, the Governor of a cooperating State shall ensure that the requirements of the agreement entered into under section 222 are met.

        ‘(B) OTHER STATES- Upon receipt of a petition, the Governor of a State that has not entered into an agreement under section 222 shall coordinate closely with the Secretary to ensure that workers covered by a petition are--

          ‘(i) provided with all available services, including rapid response activities under section 134 of the Workforce Investment Act (29 U.S.C. 2864);

          ‘(ii) informed of the workers’ (and individual member’s of the worker’s family) potential eligibility for--

            ‘(I) medical assistance under the medicaid program established under title XIX of the Social Security Act (42 U.S.C. 1396a et seq.);

            ‘(II) child health assistance under the State children’s health insurance program established under title XXI of that Act (42 U.S.C. 1397aa et seq.);

            ‘(III) child care services for which assistance is provided under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.);

            ‘(IV) the trade adjustment assistance health insurance credit under section 6429 of the Internal Revenue Code of 1986 and health care coverage assistance under funds made available to the State to carry out section 173(f) of the Workforce Investment Act of 1998; and

            ‘(V) other Federal and State funded health care, child care, transportation, and assistance programs that the workers may be eligible for; and

          ‘(iii) provided with information regarding how to apply for the assistance, services, and programs described in clause (ii).

    ‘(c) ACTIONS BY SECRETARY-

      ‘(1) IN GENERAL- As soon as possible after the date on which a petition is filed under subsection (b), but not later than 40 days after that date, the Secretary shall determine whether the petitioning group meets the requirements of subsection (a), and if warranted, shall issue a certification of eligibility for trade adjustment assistance pursuant to this subchapter. In making the determination, the Secretary shall consult with all petitioning entities.

      ‘(2) PUBLICATION OF DETERMINATION- Upon making a determination under paragraph (1), the Secretary shall promptly publish a summary of the determination in the Federal Register together with the reasons for making that determination.

      ‘(3) DATE SPECIFIED IN CERTIFICATION- Each certification made under this subsection shall specify the date on which the total or partial separation began or threatened to begin with respect to a group of certified workers.

      ‘(4) PROJECTED TRAINING NEEDS- The Secretary shall inform the State Workforce Investment Board or equivalent agency, and other public or private agencies, institutions, employers, and labor organizations, as appropriate, of each certification issued under section 231 and of projections, if available, of the need for training under section 240 as a result of that certification.

    ‘(d) SCOPE OF CERTIFICATION-

      ‘(1) IN GENERAL- A certification issued under subsection (c) shall cover adversely affected workers in any group that meets the requirements of subsection (a), whose total or partial separation occurred on or after the date on which the petition was filed under subsection (b).

      ‘(2) WORKERS SEPARATED PRIOR TO CERTIFICATION- A certification issued under subsection (c) shall cover adversely affected workers whose total or partial separation occurred not more than 1 year prior to the date on which the petition was filed under subsection (b).

    ‘(e) TERMINATION OF CERTIFICATION-

      ‘(1) IN GENERAL- If the Secretary determines, with respect to any certification of eligibility, that workers separated from a firm or subdivision covered by a certification of eligibility are no longer adversely affected workers, the Secretary shall terminate the certification.

      ‘(2) PUBLICATION OF TERMINATION- The Secretary shall promptly publish notice of any termination made under paragraph (1) in the Federal Register together with the reasons for making that determination.

      ‘(3) APPLICATION- Any determination made under paragraph (1) shall apply only to total or partial separations occurring after the termination date specified by the Secretary.

‘SEC. 232. BENEFIT INFORMATION TO WORKERS.

    ‘(a) IN GENERAL- The Secretary shall, in accordance with the provisions of section 222 or 223, as appropriate, provide prompt and full information to adversely affected workers covered by a certification issued under section 231(c), including information regarding--

      ‘(1) benefit allowances, training, and other employment services available under this chapter;

      ‘(2) petition and application procedures under this chapter;

      ‘(3) appropriate filing dates for the allowances, training, and services available under this chapter; and

      ‘(4) procedures for applying for and receiving all other Federal benefits and services available to separated workers during a period of unemployment.

    ‘(b) ASSISTANCE TO GROUPS OF WORKERS-

      ‘(1) IN GENERAL- The Secretary shall provide any necessary assistance to enable groups of workers to prepare petitions or applications for program benefits.

      ‘(2) ASSISTANCE FROM STATES- The Secretary shall ensure that cooperating States fully comply with the agreements entered into under section 222 and shall periodically review that compliance.

    ‘(c) NOTICE-

      ‘(1) IN GENERAL- Not later that 15 days after a certification is issued under section 231 (or as soon as practicable after separation), the Secretary shall provide written notice of the benefits available under this chapter to each worker whom the Secretary has reason to believe is covered by the certification.

      ‘(2) PUBLICATION OF NOTICE- The Secretary shall publish notice of the benefits available under this chapter to workers covered by each certification made under section 231 in newspapers of general circulation in the areas in which those workers reside.

      ‘(3) NOTICE TO OTHER PARTIES AFFECTED BY THESE PROVISIONS REGARDING HEALTH ASSISTANCE- The Secretary shall notify each provider of health insurance within the meaning of section 7527 of the Internal Revenue Code of 1986 of the availability of health care coverage assistance under title VI of the Trade Adjustment Assistance Reform Act of 2002 and of the temporary extension of the election period for COBRA continuation coverage for certain workers under section 603 of that Act.

‘Subchapter C--Program Benefits

‘PART I--GENERAL PROVISIONS

‘SEC. 234. COMPREHENSIVE ASSISTANCE.

    ‘Workers covered by a certification issued by the Secretary under section 231 shall be eligible for the following:

      ‘(1) Trade adjustment allowances as described in sections 235 through 238.

      ‘(2) Employment services as described in section 239.

      ‘(3) Training as described in section 240.

      ‘(4) Job search allowances as described in section 241.

      ‘(5) Relocation allowances as described in section 242.

      ‘(6) Supportive services and wage insurance as described in section 243.

      ‘(7) Health care coverage assistance under title VI of the Trade Adjustment Assistance Reform Act of 2002.

‘PART II--TRADE ADJUSTMENT ALLOWANCES

‘SEC. 235. QUALIFYING REQUIREMENTS FOR WORKERS.

    ‘(a) IN GENERAL- Payment of a trade adjustment allowance shall be made to an adversely affected worker covered by a certification under section 231 who files an application for the allowance for any week of unemployment that begins more than 60 days after the date on which the petition that resulted in the certification was filed under section 231, if the following conditions are met:

      ‘(1) TIME OF TOTAL OR PARTIAL SEPARATION FROM EMPLOYMENT- The adversely affected worker’s total or partial separation before the worker’s application under this chapter occurred--

        ‘(A) within the period specified in either section 231 (d) (1) or (2);

        ‘(B) before the expiration of the 2-year period beginning on the date on which the certification under section 231 was issued; and

        ‘(C) before the termination date (if any) determined pursuant to section 231(e).

      ‘(2) EMPLOYMENT REQUIRED-

        ‘(A) IN GENERAL- The adversely affected worker had, in the 52-week period ending with the week in which the total or partial separation occurred, at least 26 weeks of employment at wages of $30 or more a week with a single firm or subdivision of a firm.

        ‘(B) UNAVAILABILITY OF DATA- If data with respect to weeks of employment with a firm are not available, the worker had equivalent amounts of employment computed under regulations prescribed by the Secretary.

        ‘(C) WEEK OF EMPLOYMENT- For the purposes of this paragraph any week shall be treated as a week of employment at wages of $30 or more, if an adversely affected worker--

          ‘(i) is on employer-authorized leave for purposes of vacation, sickness, injury, or maternity, or inactive duty training or active duty for training in the Armed Forces of the United States;

          ‘(ii) does not work because of a disability that is compensable under a workmen’s compensation law or plan of a State or the United States;

          ‘(iii) had employment interrupted in order to serve as a full-time representative of a labor organization in that firm or subdivision; or

          ‘(iv) is on call-up for purposes of active duty in a reserve status in the Armed Forces of the United States, provided that active duty is ‘Federal service’ as defined in section 8521(a)(1) of title 5, United States Code.

        ‘(D) EXCEPTIONS-

          ‘(i) In the case of weeks described in clause (i) or (iii) of subparagraph (C), or both, not more than 7 weeks may be treated as weeks of employment under subparagraph (C).

          ‘(ii) In the case of weeks described in clause (ii) or (iv) of subparagraph (C), not more than 26 weeks may be treated as weeks of employment under subparagraph (C).

      ‘(3) UNEMPLOYMENT COMPENSATION- The adversely affected worker meets all of the following requirements:

        ‘(A) ENTITLEMENT TO UNEMPLOYMENT INSURANCE- The worker was entitled to (or would be entitled to if the worker applied for) unemployment insurance for a week within the benefit period--

          ‘(i) in which total or partial separation took place; or

          ‘(ii) which began (or would have begun) by reason of the filing of a claim for unemployment insurance by the worker after total or partial separation.

        ‘(B) EXHAUSTION OF UNEMPLOYMENT INSURANCE- The worker has exhausted all rights to any regular State unemployment insurance to which the worker was entitled (or would be entitled if the worker had applied for any regular State unemployment insurance).

        ‘(C) NO UNEXPIRED WAITING PERIOD- The worker does not have an unexpired waiting period applicable to the worker for any unemployment insurance.

      ‘(4) EXTENDED UNEMPLOYMENT COMPENSATION- The adversely affected worker, with respect to a week of unemployment, would not be disqualified for extended compensation payable under the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) by reason of the work acceptance and job search requirements in section 202(a)(3) of that Act.

      ‘(5) TRAINING- The adversely affected worker is enrolled in a training program approved by the Secretary under section 240(a), and the enrollment occurred not later than the latest of the periods described in subparagraph (A), (B), or (C).

        ‘(A) 16 WEEKS- The worker enrolled not later than the last day of the 16th week after the worker’s most recent total separation that meets the requirements of paragraphs (1) and (2).

        ‘(B) 8 WEEKS- The worker enrolled not later than the last day of the 8th week after the week in which the Secretary issues a certification covering the worker.

        ‘(C) EXTENUATING CIRCUMSTANCES- Notwithstanding subparagraphs (A) and (B), the adversely affected worker is eligible for trade adjustment assistance if the worker enrolled not later than 45 days after the later of the dates specified in subparagraph (A) or (B), and the Secretary determines there are extenuating circumstances that justify an extension in the enrollment period.

    ‘(b) FAILURE TO PARTICIPATE IN TRAINING-

      ‘(1) IN GENERAL- Until the adversely affected worker begins or resumes participation in a training program approved under section 240(a), no trade adjustment allowance may be paid under subsection (a) to an adversely affected worker for any week or any succeeding week in which--

        ‘(A) the Secretary determines that--

          ‘(i) the adversely affected worker--

            ‘(I) has failed to begin participation in a training program the enrollment in which meets the requirement of subsection (a)(5); or

            ‘(II) has ceased to participate in such a training program before completing the training program; and

          ‘(ii) there is no justifiable cause for the failure or cessation; or

        ‘(B) the waiver issued to that worker under subsection (c)(1) is revoked under subsection (c)(2).

      ‘(2) EXCEPTION- The provisions of subsection (a)(5) and paragraph (1) shall not apply with respect to any week of unemployment that begins before the first week following the week in which the certification is issued under section 231.

    ‘(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) if the Secretary determines that the training requirement 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 separation 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 accordance with guidelines issued by the Secretary) and there 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 therefore); 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 compensation 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.

        ‘(G) OTHER- The Secretary may, at his discretion, issue a waiver if the Secretary determines that a worker has set forth in writing reasons other than those provided for in subparagraphs (A) through (F) justifying the grant of such waiver.

      ‘(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.

      ‘(3) AMENDMENTS UNDER SECTION 222-

        ‘(A) ISSUANCE BY COOPERATING STATES- Pursuant to an agreement under section 222, the Secretary may authorize a cooperating State to issue waivers as described in paragraph (1).

        ‘(B) SUBMISSION OF STATEMENTS- An agreement under section 222 shall include a requirement that the cooperating State submit to the Secretary the written statements provided under paragraph (1) and a statement of the reasons for the waiver.

‘SEC. 236. WEEKLY AMOUNTS.

    ‘(a) IN GENERAL- Subject to subsections (b) and (c), the trade adjustment allowance payable to an adversely affected worker for a week of total unemployment shall be an amount equal to the most recent weekly benefit amount of the unemployment insurance payable to the worker for a week of total unemployment preceding the worker’s first exhaustion of unemployment insurance (as determined for purposes of section 235(a)(3)(B)) reduced (but not below zero) by--

      ‘(1) any training allowance deductible under subsection (c); and

      ‘(2) any income that is deductible from unemployment insurance under the disqualifying income provisions of the applicable State law or Federal unemployment insurance law.

    ‘(b) ADJUSTMENT FOR WORKERS RECEIVING TRAINING-

      ‘(1) IN GENERAL- Any adversely affected worker who is entitled to a trade adjustment allowance and who is receiving training approved by the Secretary, shall receive for each week in which the worker is undergoing that training, a trade adjustment allowance in an amount (computed for such week) equal to the greater of--

        ‘(A) the amount computed under subsection (a); or

        ‘(B) the amount of any weekly allowance for that training to which the worker would be entitled under any other Federal law for the training of workers, if the worker applied for that allowance.

      ‘(2) ALLOWANCE PAID IN LIEU OF- Any trade adjustment allowance calculated under paragraph (1) shall be paid in lieu of any training allowance to which the worker would be entitled under any other Federal law.

      ‘(3) COORDINATION WITH UNEMPLOYMENT INSURANCE- Any week in which a worker undergoing training approved by the Secretary receives payments from unemployment insurance shall be subtracted from the total number of weeks for which a worker may receive trade adjustment allowance under this chapter.

    ‘(c) ADJUSTMENT FOR WORKERS RECEIVING ALLOWANCES UNDER OTHER FEDERAL LAW-

      ‘(1) REDUCTION IN WEEKS FOR WHICH ALLOWANCE WILL BE PAID- If a training allowance under any Federal law (other than this Act) is paid to an adversely affected worker for any week of unemployment with respect to which the worker would be entitled (determined without regard to any disqualification under section 235(b)) to a trade adjustment allowance if the worker applied for that allowance, each week of unemployment shall be deducted from the total number of weeks of trade adjustment allowance otherwise payable to that worker under section 235(a) when the worker applies for a trade adjustment allowance and is determined to be entitled to the allowance.

      ‘(2) PAYMENT OF DIFFERENCE- If the training allowance paid to a worker for any week of unemployment is less than the amount of the trade adjustment allowance to which the worker would be entitled if the worker applied for the trade adjustment allowance, the worker shall receive, when the worker applies for a trade adjustment allowance and is determined to be entitled to the allowance, a trade adjustment allowance for that week equal to the difference between the training allowance and the trade adjustment allowance computed under subsection (b).

‘SEC. 237. LIMITATIONS ON TRADE ADJUSTMENT ALLOWANCES.

    ‘(a) AMOUNT PAYABLE- The maximum amount of trade adjustment allowance payable to an adversely affected worker, with respect to the period covered by any certification, shall be the amount that is the product of 104 multiplied by the trade adjustment allowance payable to the worker for a week of total unemployment (as determined under section 236) reduced by the total sum of the regular State unemployment insurance to which the worker was entitled (or would have been entitled if the worker had applied for unemployment insurance) in the worker’s first benefit period described in section 235(a)(3)(A).

    ‘(b) DURATION OF PAYMENTS-

      ‘(1) IN GENERAL- Except as provided in paragraph (2), a trade adjustment allowance shall not be paid for any week occurring after the close of the 104-week period that begins with the first week following the week in which the adversely affected worker was most recently totally separated--

        ‘(A) within the period that is described in section 235(a)(1); and

        ‘(B) with respect to which the worker meets the requirements of section 235(a)(2).

      ‘(2) SPECIAL RULES-

        ‘(A) BREAK IN TRAINING- For purposes of this chapter, a worker shall be treated as participating in a training program approved by the Secretary under section 240(a) during any week that is part of a break in a training that does not exceed 30 days if--

          ‘(i) the worker was participating in a training program approved under section 240(a) before the beginning of the break in training; and

          ‘(ii) the break is provided under the training program.

        ‘(B) ON-THE-JOB TRAINING- No trade adjustment allowance shall be paid to a worker under this chapter for any week during which the worker is receiving on-the-job training, except that a trade adjustment allowance shall be paid if a worker is enrolled in a non-paid customized training program.

        ‘(C) SMALL BUSINESS ADMINISTRATION PILOT PROGRAM- An adversely affected worker who is participating in a self-employment training program established by the Director of the Small Business Administration pursuant to section 102 of the Trade Adjustment Assistance Reform Act of 2002, shall not be ineligible to receive benefits under this chapter.

        ‘(D) ADDITIONAL WEEKS FOR REMEDIAL EDUCATION- Notwithstanding any other provision of this section, in order to assist an adversely affected worker to complete training approved for the worker under section 240, if the program is a program of remedial education in accordance with regulations prescribed by the Secretary, payments may be made as trade adjustment allowances for up to 26 additional weeks in the 26-week period that follows the last week of entitlement to trade adjustment allowances otherwise payable under this chapter.

    ‘(c) ADJUSTMENT OF AMOUNTS PAYABLE- Amounts payable to an adversely affected worker under this chapter shall be subject to adjustment on a week-to-week basis as may be required by section 236.

    ‘(d) YEAR-END ADJUSTMENT-

      ‘(1) IN GENERAL- Notwithstanding any other provision of this Act or any other provision of law, if the benefit year of a worker ends within an extended benefit period, the number of weeks of extended benefits that the worker would, but for this subsection, be entitled to in that extended benefit period shall not be reduced by the number of weeks for which the worker was entitled, during that benefit year, to trade adjustment allowances under this part.

      ‘(2) EXTENDED BENEFITS PERIOD- For the purpose of this section the term ‘extended benefit period’ has the same meaning given that term in the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

‘SEC. 238. APPLICATION OF STATE LAWS.

    ‘(a) IN GENERAL- Except where inconsistent with the provisions of this chapter and subject to such regulations as the Secretary may prescribe, the availability and disqualification provisions of the State law under which an adversely affected worker is entitled to unemployment insurance (whether or not the worker has filed a claim for such insurance), or, if the worker is not so entitled to unemployment insurance, of the State in which the worker was totally or partially separated, shall apply to a worker that files an application for trade adjustment assistance.

    ‘(b) DURATION OF APPLICABILITY- The State law determined to be applicable with respect to a separation of an adversely affected worker shall remain applicable for purposes of subsection (a), with respect to a separation until the worker becomes entitled to unemployment insurance under another State law (whether or not the worker has filed a claim for that insurance).

‘PART III--EMPLOYMENT SERVICES, TRAINING, AND OTHER ALLOWANCES

‘SEC. 239. EMPLOYMENT SERVICES.

    ‘The Secretary shall, in accordance with section 222 or 223, as applicable, make every reasonable effort to secure for adversely affected workers covered by a certification under section 231, counseling, testing, placement, and other services provided for under any other Federal law.

‘SEC. 240. TRAINING.

    ‘(a) APPROVED TRAINING PROGRAMS-

      ‘(1) IN GENERAL- The Secretary shall approve training programs that include--

        ‘(A) on-the-job training or customized training;

        ‘(B) any employment or training activity provided through a one-stop delivery system under chapter 5 of subtitle B of title I of the Workforce Investment Act of 1998 (29 U.S.C. 2861 et seq.);

        ‘(C) any program of adult education;

        ‘(D) any training program (other than a training program described in paragraph (3)) for which all, or any portion, of the costs of training the worker are paid--

          ‘(i) under any Federal or State program other than this chapter; or

          ‘(ii) from any source other than this section; and

        ‘(E) any other training program that the Secretary determines is acceptable to meet the needs of an adversely affected worker.

      In making the determination under subparagraph (E), the Secretary shall consult with interested parties.

      ‘(2) TRAINING AGREEMENTS- Before approving any training to which subsection (f)(1)(C) may apply, the Secretary may require that the adversely affected worker enter into an agreement with the Secretary under which the Secretary will not be required to pay under subsection (b) the portion of the costs of the training that the worker has reason to believe will be paid under the program, or by the source, described in clause (i) or (ii) of subsection (f)(1)(C).

      ‘(3) LIMITATION ON APPROVALS- The Secretary shall not approve a training program if all of the following apply:

        ‘(A) PAYMENT BY PLAN- Any portion of the costs of the training program are paid under any nongovernmental plan or program.

        ‘(B) RIGHT TO OBTAIN- The adversely affected worker has a right to obtain training or funds for training under that plan or program.

        ‘(C) REIMBURSEMENT- The plan or program requires the worker to reimburse the plan or program from funds provided under this chapter, or from wages paid under the training program, for any portion of the costs of that training program paid under the plan or program.

    ‘(b) PAYMENT OF TRAINING COSTS-

      ‘(1) IN GENERAL- Upon approval of a training program under subsection (a), and subject to the limitations imposed by this section, an adversely affected worker covered by a certification issued under section 231 may be eligible to have payment of the costs of that training, including any costs of an approved training program incurred by a worker before a certification was issued under section 231, made on behalf of the worker by the Secretary directly or through a voucher system.

      ‘(2) ON-THE-JOB TRAINING AND CUSTOMIZED TRAINING-

        ‘(A) PROVISION OF TRAINING ON THE JOB OR CUSTOMIZED TRAINING- If the Secretary approves training under subsection (a), the Secretary shall, insofar as possible, provide or assure the provision of that training on the job or customized training, and any training on the job or customized training that is approved by the Secretary under subsection (a) shall include related education necessary for the acquisition of skills needed for a position within a particular occupation.

        ‘(B) MONTHLY INSTALLMENTS- If the Secretary approves payment of any on-the-job training or customized training under subsection (a), the Secretary shall pay the costs of that training in equal monthly installments.

        ‘(C) LIMITATIONS- The Secretary may pay the costs of on-the-job training or customized training only if--

          ‘(i) no employed worker is displaced by the adversely affected worker (including partial displacement such as a reduction in the hours of nonovertime work, wages, or employment benefits);

          ‘(ii) the training does not impair contracts for services or collective bargaining agreements;

          ‘(iii) in the case of training that would affect a collective bargaining agreement, the written concurrence of the labor organization concerned has been obtained;

          ‘(iv) no other individual is on layoff from the same, or any substantially equivalent, job for which the adversely affected worker is being trained;

          ‘(v) the employer has not terminated the employment of any regular employee or otherwise reduced the workforce of the employer with the intention of filling the vacancy so created by hiring the adversely affected worker;

          ‘(vi) the job for which the adversely affected worker is being trained is not being created in a promotional line that will infringe in any way upon the promotional opportunities of employed individuals;

          ‘(vii) the training is not for the same occupation from which the worker was separated and with respect to which the worker’s group was certified pursuant to section 231;

          ‘(viii) 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;

          ‘(ix) the employer has not received payment under subsection (b)(1) with respect to any other on-the-job training provided by the employer or customized training that failed to meet the requirements of clauses (i) through (vi); and

          ‘(x) the employer has not taken, at any time, any action that violated the terms of any certification described in clause (viii) made by that employer with respect to any other on-the-job training provided by the employer or customized training for which the Secretary has made a payment under paragraph (1).

    ‘(c) CERTAIN WORKERS ELIGIBLE FOR TRAINING BENEFITS- An adversely affected worker covered by a certification issued under section 231, who is not qualified to receive a trade adjustment allowance under section 235, may be eligible to have payment of the costs of training made under this section, if the worker enters a training program approved by the Secretary not later than 6 months after the date on which the certification that covers the worker is issued or the Secretary determines that one of the following applied:

      ‘(1) Funding was not available at the time at which the adversely affected worker was required to enter training under paragraph (1).

      ‘(2) The adversely affected worker was covered by a waiver issued under section 235(c).

    ‘(d) EXHAUSTION OF UNEMPLOYMENT INSURANCE NOT REQUIRED- The Secretary may approve training, and pay the costs thereof, for any adversely affected worker who is a member of a group certified under section 231 at any time after the date on which the group is certified, without regard to whether the worker has exhausted all rights to any unemployment insurance to which the worker is entitled.

    ‘(e) SUPPLEMENTAL ASSISTANCE-

      ‘(1) IN GENERAL- Subject to paragraphs (2) and (3), when training is provided under a training program approved by the Secretary under subsection (a) in facilities that are not within commuting distance of a worker’s regular place of residence, the Secretary may authorize supplemental assistance to defray reasonable transportation and subsistence expenses for separate maintenance.

      ‘(2) TRANSPORTATION EXPENSES- The Secretary may not authorize payments for travel expenses exceeding the prevailing mileage rate authorized under the Federal travel regulations.

      ‘(3) SUBSISTENCE EXPENSES- The Secretary may not authorize payments for subsistence that exceed the lesser of--

        ‘(A) the actual per diem expenses for subsistence of the worker; or

        ‘(B) an amount equal to 50 percent of the prevailing per diem allowance rate authorized under Federal travel regulations.

    ‘(f) SPECIAL PROVISIONS; LIMITATIONS-

      ‘(1) LIMITATION ON MAKING PAYMENTS-

        ‘(A) DISALLOWANCE OF OTHER PAYMENT- If the costs of training an adversely affected worker are paid by the Secretary under subsection (b), no other payment for those training costs may be made under any other provision of Federal law.

        ‘(B) NO PAYMENT OF REIMBURSABLE COSTS- No payment for the costs of approved training may be made under subsection (b) if those costs--

          ‘(i) have already been paid under any other provision of Federal law; or

          ‘(ii) are reimbursable under any other provision of Federal law and a portion of those costs has already been paid under that other provision of Federal law.

        ‘(C) NO PAYMENT OF COSTS PAID ELSEWHERE- The Secretary is not required to pay the costs of any training approved under subsection (a) to the extent that those costs are paid under any Federal or State program other than this chapter.

        ‘(D) EXCEPTION- The provisions of this paragraph shall not apply to, or take into account, any funds provided under any other provision of Federal law that are used for any purpose other than the direct payment of the costs incurred in training a particular adversely affected worker, even if the use of those funds has the effect of indirectly paying for or reducing any portion of the costs involved in training the adversely affected worker.

      ‘(2) UNEMPLOYMENT ELIGIBILITY- A worker may not be determined to be ineligible or disqualified for unemployment insurance or program benefits under this subchapter because the individual is in training approved under subsection (a), because of leaving work which is not suitable employment to enter the training, or because of the application to any week in training of provisions of State law or Federal unemployment insurance law relating to availability for work, active search for work, or refusal to accept work.

      ‘(3) DEFINITION- For purposes of this section the term ‘suitable employment’ means, with respect to a worker, work of a substantially equal or higher skill level than the worker’s past adversely affected employment, and wages for such work at not less than 80 percent of the worker’s average weekly wage.

      ‘(4) PAYMENTS AFTER REEMPLOYMENT-

        ‘(A) IN GENERAL- In the case of an adversely affected worker who secures reemployment, the Secretary may approve and pay the costs of training (or shall continue to pay the costs of training previously approved) for that adversely affected worker, for the completion of the training program or up to 26 weeks, whichever is less, after the date the adversely affected worker becomes reemployed.

        ‘(B) TRADE ADJUSTMENT ALLOWANCE- An adversely affected worker who is reemployed and is undergoing training approved by the Secretary pursuant to subparagraph (A) may continue to receive a trade adjustment allowance, subject to the income offsets provided for in the worker’s State unemployment compensation law in accordance with the provisions of section 237.

      ‘(5) FUNDING- The total amount of payments that may be made under this section for any fiscal year shall not exceed $300,000,000.

‘SEC. 240A. JOB TRAINING PROGRAMS.

    ‘(a) GRANT PROGRAM AUTHORIZED- The Secretary is authorized to award grants to community colleges (as defined in section 202 of the Tech-Prep Education Act (20 U.S.C. 2371)) on a competitive basis to establish job training programs for adversely affected workers.

    ‘(b) APPLICATION-

      ‘(1) SUBMISSION- To receive a grant under this section, a community college shall submit an application to the Secretary at such time and in such manner as the Secretary shall require.

      ‘(2) CONTENTS- The application submitted under paragraph (1) shall provide a description of--

        ‘(A) the population to be served with grant funds received under this section;

        ‘(B) how grant funds received under this section will be expended; and

        ‘(C) the job training programs that will be established with grant funds received under this section, including a description of how such programs relate to workforce needs in the area where the community college is located.

    ‘(c) ELIGIBILITY- To be eligible to receive a grant under this section, a community college shall be located in an eligible community (as defined in section 271).

    ‘(d) DECISION ON APPLICATIONS- Not later than 30 days after submission of an application under subsection (b), the Secretary shall approve or disapprove the application.

    ‘(e) USE OF FUNDS- A community college that receives a grant under this section shall use the grant funds to establish job training programs for adversely affected workers.

‘SEC. 241. JOB SEARCH ALLOWANCES.

    ‘(a) JOB SEARCH ALLOWANCE AUTHORIZED-

      ‘(1) IN GENERAL- An adversely affected worker covered by a certification issued under section 231 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 allowance 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 Secretary 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 certification 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 235(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 subsistence and transportation expenses at levels exceeding those allowable under section 240(e).

    ‘(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. 242. RELOCATION ALLOWANCES.

    ‘(a) RELOCATION ALLOWANCE AUTHORIZED-

      ‘(1) IN GENERAL- Any adversely affected worker covered by a certification issued under section 231 may file an application for a relocation allowance with the Secretary, and the Secretary may grant the relocation allowance, 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 Secretary 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 separated 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 employment.

        ‘(E) APPLICATION- The worker filed an application with the Secretary before--

          ‘(i) the later of--

            ‘(I) the 425th day after the date of the certification under section 231; 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 235(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 240(e)) 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--

      ‘(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 conclusion of training, if the worker entered a training program approved by the Secretary under section 240(a).

‘SEC. 243. SUPPORTIVE SERVICES; WAGE INSURANCE.

    ‘(a) SUPPORTIVE SERVICES-

      ‘(1) APPLICATION-

        ‘(A) IN GENERAL- The State may, on behalf of any adversely affected worker or group of workers covered by a certification issued under section 231--

          ‘(i) file an application with the Secretary for services under section 173 of the Workforce Investment Act of 1998 (relating to National Emergency Grants); and

          ‘(ii) provide other services under title I of the Workforce Investment Act of 1998.

        ‘(B) SERVICES- The services available under this paragraph include transportation, child care, and dependent care that are necessary to enable a worker to participate in activities authorized under this chapter.

      ‘(2) CONDITIONS- The Secretary may approve an application filed under paragraph (1)(A)(i) and provide supportive services to an adversely affected worker only if the Secretary determines that all of the following apply:

        ‘(A) NECESSITY- Providing services is necessary to enable the worker to participate in or complete training.

        ‘(B) CONSISTENT WITH WORKFORCE INVESTMENT ACT- The services are consistent with the supportive services provided to participants under the provisions relating to dislocated worker employment and training activities set forth in chapter 5 of subtitle B of title I of the Workforce Investment Act of 1998 (29 U.S.C. 2861 et seq.).

    ‘(b) WAGE INSURANCE PROGRAM-

      ‘(1) IN GENERAL- Not later than 1 year after the date of enactment of the Trade Adjustment Assistance Reform Act of 2002, the Secretary shall establish, and the States shall implement, a Wage Insurance Program under which a State shall use the funds provided to the State for trade adjustment allowances to pay to an adversely affected worker certified under section 231 a wage subsidy of up to 50 percent of the difference between the wages received by the adversely affected worker from reemployment and the wages received by the adversely affected worker at the time of separation for a period not to exceed 2 years.

      ‘(2) AMOUNT OF PAYMENT-

        ‘(A) WAGES UNDER $40,000- If the wages the worker receives from reemployment are less than $40,000 a year, the wage subsidy shall be 50 percent of the difference between the amount of the wages received by the worker from reemployment and the amount of the wages received by the worker at the time of separation.

        ‘(B) WAGES BETWEEN $40,000 AND $50,000- If the wages received by the worker from reemployment are greater than $40,000 a year but less than $50,000 a year, the wage subsidy shall be 25 percent of the difference between the amount of the wages received by the worker from reemployment and the amount of the wages received by the worker at the time of separation.

      ‘(3) ELIGIBILITY- An adversely affected worker may be eligible to receive a wage subsidy under this subsection if the worker--

        ‘(A) enrolls in the Wage Insurance Program;

        ‘(B) obtains reemployment not more than 26 weeks after the date of separation from the adversely affected employment;

        ‘(C) is at least 50 years of age;

        ‘(D) earns not more than $50,000 a year in wages from reemployment;

        ‘(E) is employed on a full-time basis as defined by State law in the State in which the worker is employed; and

        ‘(F) does not return to the employment from which the worker was separated.

      ‘(4) AMOUNT OF PAYMENTS- The payments made under paragraph (1) to an adversely affected worker may not exceed $5,000 a year for each year of the 2-year period.

      ‘(5) LIMITATION ON OTHER BENEFITS- At the time a worker begins to receive a wage subsidy under this subsection the worker shall not be eligible to receive any benefits under this Act other than the wage subsidy unless the Secretary determines, pursuant to standards established by the Secretary, that the worker has shown circumstances that warrant eligibility for training benefits under section 240.

      ‘(6) FUNDING- The total amount of payments that may be made under this subsection for any fiscal year shall not exceed $50,000,000.

      ‘(7) TERMINATION-

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), no payments may be made under this subsection after the date that is 2 years after the date on which the program under this subsection is implemented in the State under paragraph (1).

        ‘(B) EXCEPTION- Notwithstanding subparagraph (A), a worker receiving payments under this subsection on the date described in subparagraph (A) shall continue to receive such payments for as long as the worker meets the eligibility requirements of this subsection.

    ‘(c) STUDIES OF ASSISTANCE AVAILABLE TO ECONOMICALLY DISTRESSED WORKERS-

      ‘(1) STUDY BY THE GENERAL ACCOUNTING OFFICE-

        ‘(A) IN GENERAL- The Comptroller General of the United States shall conduct a study of all assistance provided by the Federal Government for workers facing job loss and economic distress.

        ‘(B) REPORT- Not later than 1 year after the date of enactment of the Trade Adjustment Assistance Reform Act of 2002, the Comptroller General shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on the study conducted under subparagraph (A). The report shall include a description of--

          ‘(i) all Federal programs designed to assist workers facing job loss and economic distress, including all benefits and services;

          ‘(ii) eligibility requirements for each of the programs; and

          ‘(iii) procedures for applying for and receiving benefits and services under each of the programs.

        ‘(C) DISTRIBUTION OF GAO REPORT- The report described in subparagraph (B) shall be distributed to all one-stop partners authorized under the Workforce Investment Act of 1998.

      ‘(2) STUDIES BY THE STATES-

        ‘(A) IN GENERAL- Each State may conduct a study of its assistance programs for workers facing job loss and economic distress.

        ‘(B) GRANTS- The Secretary may award to each State a grant, not to exceed $50,000, to enable the State to conduct the study described in subparagraph (A). Each study shall be undertaken in consultation with affected parties.

        ‘(C) REPORT- Not later than 1 year after the date of the grant, each State that receives a grant under subparagraph (B) shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives the report described in subparagraph (A).

        ‘(D) DISTRIBUTION OF STATE REPORTS- A report prepared by a State under this paragraph shall be distributed to all the one-stop partners in the State.

‘Subchapter D--Payment and Enforcement Provisions

‘SEC. 244. PAYMENTS TO STATES.

    ‘(a) IN GENERAL- The Secretary, from time to time, shall certify to the Secretary of the Treasury for payment to each cooperating State, the sums necessary to enable that State as agent of the United States to make payments provided for by this chapter.

    ‘(b) LIMITATION ON USE OF FUNDS-

      ‘(1) IN GENERAL- All money paid to a cooperating State under this section shall be used solely for the purposes for which it is paid.

      ‘(2) RETURN OF FUNDS NOT SO USED- Money paid that is not used for the purpose for which it is paid under subsection (a) shall be returned to the Secretary of the Treasury at the time specified in the agreement entered into under section 222.

    ‘(c) SURETY BOND- Any agreement under section 222 may require any officer or employee of the cooperating State certifying payments or disbursing funds under the agreement or otherwise participating in the performance of the agreement, to give a surety bond to the United States in an amount the Secretary deems necessary, and may provide for the payment of the cost of that bond from funds for carrying out the purposes of this chapter.

‘SEC. 245. LIABILITIES OF CERTIFYING AND DISBURSING OFFICERS.

    ‘(a) LIABILITY OF CERTIFYING OFFICIALS- No person designated by the Secretary, or designated pursuant to an agreement entered into under section 222, as a certifying officer, in the absence of gross negligence or intent to defraud the United States, shall be liable with respect to any payment certified by that person under this chapter.

    ‘(b) LIABILITY OF DISBURSING OFFICERS- No disbursing officer, in the absence of gross negligence or intent to defraud the United States, shall be liable with respect to any payment by that officer under this chapter if the payment was based on a voucher signed by a certifying officer designated according to subsection (a).

‘SEC. 246. FRAUD AND RECOVERY OF OVERPAYMENTS.

    ‘(a) IN GENERAL-

      ‘(1) OVERPAYMENT- If a cooperating State, the Secretary, or a court of competent jurisdiction determines that any person has received any payment under this chapter to which the person was not entitled, including a payment referred to in subsection (b), that person shall be liable to repay that amount to the cooperating State or the Secretary, as the case may be.

      ‘(2) EXCEPTION- The cooperating State or the Secretary may waive repayment if the cooperating State or the Secretary determines, in accordance with guidelines prescribed by the Secretary, that all of the following apply:

        ‘(A) NO FAULT- The payment was made without fault on the part of the person.

        ‘(B) REPAYMENT CONTRARY TO EQUITY- Requiring repayment would be contrary to equity and good conscience.

      ‘(3) PROCEDURE FOR RECOVERY-

        ‘(A) RECOVERY FROM OTHER ALLOWANCES AUTHORIZED- Unless an overpayment is otherwise recovered or waived under paragraph (2), the cooperating State or the Secretary shall recover the overpayment by deductions from any sums payable to that person under this chapter, under any Federal unemployment compensation law administered by the cooperating State or the Secretary, or under any other Federal law administered by the cooperating State or the Secretary that provides for the payment of assistance or an allowance with respect to unemployment.

        ‘(B) RECOVERY FROM STATE ALLOWANCES AUTHORIZED- Notwithstanding any other provision of Federal or State law, the Secretary may require a cooperating State to recover any overpayment under this chapter by deduction from any unemployment insurance payable to that person under State law, except that no single deduction under this paragraph shall exceed 50 percent of the amount otherwise payable.

    ‘(b) INELIGIBILITY FOR FURTHER PAYMENTS- Any person, in addition to any other penalty provided by law, shall be ineligible for any further payments under this chapter if a cooperating State, the Secretary, or a court of competent jurisdiction determines that one of the following applies:

      ‘(1) FALSE STATEMENT- The person knowingly made, or caused another to make, a false statement or representation of a material fact, and as a result of the false statement or representation, the person received any payment under this chapter to which the person was not entitled.

      ‘(2) FAILURE TO DISCLOSE- The person knowingly failed, or caused another to fail, to disclose a material fact, and as a result of the nondisclosure, the person received any payment under this chapter to which the person was not entitled.

    ‘(c) HEARING- 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) by the cooperating State or the Secretary, as the case may be, has been made, notice of the determination and an opportunity for a fair hearing has been given to the person concerned, and the determination has become final.

    ‘(d) RECOVERED FUNDS- Any amount recovered under this section shall be returned to the Treasury of the United States.

‘SEC. 247. CRIMINAL PENALTIES.

    ‘Whoever makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, for the purpose of obtaining or increasing for that person or for any other person any payment authorized to be furnished under this chapter or pursuant to an agreement under section 222 shall be fined not more than $10,000, imprisoned for not more than 1 year, or both.

‘SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

    ‘There are authorized to be appropriated to the Department of Labor, for the period beginning October 1, 2001, and ending September 30, 2007, such sums as may be necessary to carry out the purposes of this chapter, including such additional sums for administrative expenses as may be necessary for the department to meet the increased workload created by the Trade Adjustment Assistance Reform Act of 2002, provided that funding provided for training services shall not be used for expenses of administering the trade adjustment assistance for workers program. Amounts appropriated under this section shall remain available until expended.

‘SEC. 249. REGULATIONS.

    ‘The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this chapter.

‘SEC. 250. SUBPOENA POWER.

    ‘(a) IN GENERAL- The Secretary may require by subpoena the attendance of witnesses and the production of evidence necessary to make a determination under the provisions of this chapter.

    ‘(b) COURT ORDER- If a person refuses to obey a subpoena issued under subsection (a), a competent United States district court, upon petition by the Secretary, may issue an order requiring compliance with such subpoena.’.

SEC. 112. DISPLACED WORKER SELF-EMPLOYMENT TRAINING PILOT PROGRAM.

    (a) ESTABLISHMENT- Not later than 6 months after the date of enactment of this Act, the Administrator of the Small Business Administration (in this section referred to as the ‘Administrator’) shall establish a self-employment training program (in this section referred to as the ‘Program’) for adversely affected workers (as defined in chapter 2 of title II of the Trade Act of 1974), to be administered by the Small Business Administration.

    (b) ELIGIBILITY FOR ASSISTANCE- If an adversely affected worker seeks or receives assistance through the Program, such action shall not affect the eligibility of that worker to receive benefits under chapter 2 of title II of the Trade Act of 1974.

    (c) TRAINING ASSISTANCE- The Program shall include, at a minimum, training in--

      (1) pre-business startup planning;

      (2) awareness of basic credit practices and credit requirements; and

      (3) developing business plans, financial packages, and credit applications.

    (d) OUTREACH- The Program should include outreach to adversely affected workers and counseling and lending partners of the Small Business Administration.

    (e) REPORTS TO CONGRESS- Beginning not later than 180 days after the date of enactment of this Act, the Administrator shall submit quarterly reports to the Committee on Finance and the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Ways and Means and the Committee on Small Business of the House of Representatives regarding the implementation of the Program, including Program delivery, staffing, and administrative expenses related to such implementation.

    (f) GUIDELINES- Not later than 180 days after the date of enactment of this Act, the Administrator shall issue such guidelines as the Administrator determines to be necessary to carry out the Program.

    (g) EFFECTIVE DATE- The Program shall terminate 3 years after the date of final publication of guidelines under subsection (f).

TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

SEC. 201. REAUTHORIZATION OF PROGRAM.

    (a) IN GENERAL- 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 2002 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.’.

    (b) ELIGIBILITY CRITERIA- Section 251(c) of chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341(c)) is amended--

      (1) by amending paragraph (1) to read as follows:

      ‘(1) The Secretary shall certify a firm (including any agricultural firm) as eligible to apply for adjustment assistance under this chapter if the Secretary determines that a significant number or proportion of the workers in such firm have become totally or partially separated, or are threatened to become totally or partially separated, and that either--

        ‘(A)(i)(I) sales or production, or both, of the firm have decreased absolutely, or

        ‘(II) sales or production, or both, of an article that accounted for not less than 25 percent of the total production or sales of the firm during the 12-month period for which data are available have decreased absolutely; and

        ‘(ii) increases in the value or volume of imports of articles like or directly competitive with articles which are produced by such firm contributed importantly to such total or partial separation, or threat thereof, and to such decline in sales or production; or

        ‘(B) a shift in production by the workers’ firm or subdivision to a foreign country of articles like or directly competitive with articles which are produced by that firm or subdivision contributed importantly to the workers’ separation or threat of separation.’; and

      (2) in paragraph (2), by striking ‘paragraph (1)(C)’ and inserting ‘paragraph (1)’.

TITLE III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

SEC. 301. PURPOSE.

    The purpose of this title is to assist communities with economic adjustment through the integration of political and economic organizations, the coordination of Federal, State, and local resources, the creation of community-based development strategies, and the provision of economic transition assistance.

SEC. 302. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.

    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--COMMUNITY ECONOMIC ADJUSTMENT

‘SEC. 271. DEFINITIONS.

    ‘In this chapter:

      ‘(1) CIVILIAN LABOR FORCE- The term ‘civilian labor force’ has the meaning given that term in regulations prescribed by the Secretary of Labor.

      ‘(2) COMMUNITY- The term ‘community’ means a county or equivalent political subdivision of a State.

        ‘(A) RURAL COMMUNITY- The term ‘rural community’ means a community that has a rural-urban continuum code of 4 through 9.

        ‘(B) URBAN COMMUNITY- The term ‘urban community’ means a community that has a rural-urban continuum code of 0 through 3.

      ‘(3) COMMUNITY ECONOMIC DEVELOPMENT COORDINATING COMMITTEE- The term ‘Community Economic Development Coordinating Committee’ means a community group established under section 274 that consists of major groups significantly affected by an increase in imports or a shift in production, including local, regional, tribal, and State governments, regional councils of governments and economic development, and business, labor, education, health, religious, and other community-based organizations.

      ‘(4) DIRECTOR- The term ‘Director’ means the Director of the Office of Community Trade Adjustment.

      ‘(5) ELIGIBLE COMMUNITY- The term ‘eligible community’ means a community certified under section 273 as eligible for assistance under this chapter.

      ‘(6) JOB LOSS- The term ‘job loss’ means the total or partial separation of an individual, as those terms are defined in section 221.

      ‘(7) OFFICE- The term ‘Office’ means the Office of Community Trade Adjustment established under section 272.

      ‘(8) RURAL-URBAN CONTINUUM CODE- The term ‘rural-urban continuum code’ means a code assigned to a community according to the rural-urban continuum code system, as defined by the Economic Research Service of the Department of Agriculture.

      ‘(9) SECRETARY- The term ‘Secretary’ means the Secretary of Commerce.

‘SEC. 272. OFFICE OF COMMUNITY TRADE ADJUSTMENT.

    ‘(a) ESTABLISHMENT- Within 6 months of the date of enactment of the Trade Adjustment Assistance Reform Act of 2002, there shall be established in the Office of Economic Adjustment of the Economic Development Administration of the Department of Commerce an Office of Community Trade Adjustment.

    ‘(b) PERSONNEL- The Office shall be headed by a Director, and shall have such staff as may be necessary to carry out the responsibilities described in this chapter.

    ‘(c) COORDINATION OF FEDERAL RESPONSE- The Office shall--

      ‘(1) provide leadership, support, and coordination for a comprehensive management program to address economic dislocation in eligible communities;

      ‘(2) establish an easily accessible, one-stop clearinghouse for States and eligible communities to obtain information regarding economic development assistance available under Federal law;

      ‘(3) coordinate the Federal response to an eligible 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 ensures that an eligible community has access to all available Federal assistance;

        ‘(C) by assuring timely consultation and cooperation between Federal, State, and regional officials concerning community economic adjustment;

        ‘(D) by identifying and strengthening existing agency mechanisms designed to assist communities in economic adjustment and workforce reemployment;

        ‘(E) by applying consistent policies, practices, and procedures in the administration of Federal programs that are used to assist communities adversely impacted by an increase in imports or a shift in production;

        ‘(F) by creating, maintaining, and using a uniform economic database to analyze community adjustment activities; and

        ‘(G) by assigning a community economic adjustment advisor to work with each eligible community;

      ‘(4) provide comprehensive technical assistance to any eligible community in the efforts of that community to--

        ‘(A) identify serious economic problems in the community that result from an increase in imports or shift in production;

        ‘(B) integrate the major groups and organizations significantly affected by the economic adjustment;

        ‘(C) organize a Community Economic Development Coordinating Committee;

        ‘(D) access Federal, State, and local resources designed to assist in economic development and trade adjustment assistance;

        ‘(E) diversify and strengthen the community economy; and

        ‘(F) develop a community-based strategic plan to address workforce dislocation and economic development;

      ‘(5) establish specific criteria for submission and evaluation of a strategic plan submitted under section 276(d);

      ‘(6) administer the grant programs established under sections 276 and 277; and

      ‘(7) establish an interagency Trade Adjustment Assistance Working Group, consisting of the representatives of any Federal department or agency with responsibility for economic adjustment assistance, including the Department of Agriculture, the Department of Defense, the Department of Education, the Department of Labor, the Department of Housing and Urban Development, the Department of Health and Human Services, the Small Business Administration, the Department of the Treasury, the Department of Commerce, the Office of the United States Trade Representative, and the National Economic Council.

    ‘(d) WORKING GROUP- The working group established under subsection (c)(7) shall examine other options for addressing trade impacts on communities, such as:

      ‘(1) Seeking legislative language directing the Foreign Trade Zone (‘FTZ’) Board to expedite consideration of FTZ applications from communities or businesses that have been found eligible for trade adjustment assistance.

      ‘(2) Seeking legislative language to make new markets tax credits available in communities impacted by trade.

      ‘(3) Seeking legislative language to make work opportunity tax credits available for hiring unemployed workers who are certified eligible for trade adjustment assistance.

      ‘(4) Examining ways to assist trade impacted rural communities and industries take advantage of the Department of Agriculture’s rural development program.

‘SEC. 273. NOTIFICATION AND CERTIFICATION AS AN ELIGIBLE COMMUNITY.

    ‘(a) NOTIFICATION- The Secretary of Labor, not later than 15 days after making a determination that a group of workers is eligible for trade adjustment assistance under section 231, shall notify the Governor of the State in which the community in which the worker’s firm is located and the Director, of the Secretary’s determination.

    ‘(b) CERTIFICATION- Not later than 30 days after notification by the Secretary of Labor described in subsection (a), the Director shall certify as eligible for assistance under this chapter a community in which both of the following conditions applies:

      ‘(1) NUMBER OF JOB LOSSES- The Director finds that--

        ‘(A) in an urban community, at least 500 workers have been certified for assistance under section 231 in the most recent 36-month period preceding the date of certification under this section for which data are available; or

        ‘(B) in a rural community, at least 300 workers have been certified for assistance under section 231 in the most recent 36-month period preceding the date of certification under this section for which data are available.

      ‘(2) PERCENT OF WORKFORCE UNEMPLOYED- The Director finds that the unemployment rate for the community is at least 1 percent greater than the national unemployment rate for the most recent 12-month period for which data are available.

    ‘(c) NOTIFICATION TO ELIGIBLE COMMUNITIES- Not later than 15 days after the Director certifies a community as eligible under subsection (b), the Director shall notify the community--

      ‘(1) of its determination under subsection (b);

      ‘(2) of the provisions of this chapter;

      ‘(3) how to access the clearinghouse established under section 272(c)(2); and

      ‘(4) how to obtain technical assistance provided under section 272(c)(4).

‘SEC. 274. COMMUNITY ECONOMIC DEVELOPMENT COORDINATING COMMITTEE.

    ‘(a) ESTABLISHMENT- In order to apply for and receive benefits under this chapter, an eligible community shall establish a Community Economic Development Coordinating Committee certified by the Director as meeting the requirements of subsection (b)(1).

    ‘(b) COMPOSITION OF THE COMMITTEE-

      ‘(1) LOCAL PARTICIPATION- The Community Economic Development Coordinating Committee established by an eligible community under subsection (a) shall include representatives of those groups significantly affected by economic dislocation, such as local, regional, tribal, and State governments, regional councils of governments and economic development, business, labor, education, health organizations, religious, and other community-based groups providing assistance to workers, their families, and communities.

      ‘(2) FEDERAL PARTICIPATION- Pursuant to section 275(b)(3), the community economic adjustment advisor, assigned by the Director to assist an eligible community, shall serve as an ex officio member of the Community Economic Development Coordinating Committee, and shall arrange for participation by representatives of other Federal agencies on that Committee as necessary.

      ‘(3) EXISTING ORGANIZATION- An eligible community may designate an existing organization in that community as the Community Economic Development Coordinating Committee if that organization meets the requirements of paragraph (1) for the purposes of this chapter.

    ‘(c) DUTIES- The Community Economic Development Coordinating Committee shall--

      ‘(1) ascertain the severity of the community economic adjustment required as a result of the increase in imports or shift in production;

      ‘(2) assess the capacity of the community to respond to the required economic adjustment and the needs of the community as it undertakes economic adjustment, taking into consideration such factors as the number of jobs lost, the size of the community, the diversity of industries, the skills of the labor force, the condition of the current labor market, the availability of financial resources, the quality and availability of educational facilities, the adequacy and availability of public services, and the existence of a basic and advanced infrastructure in the community;

      ‘(3) facilitate a dialogue between concerned interests in the community, represent the impacted community, and ensure all interests in the community work collaboratively toward collective goals without duplication of effort or resources;

      ‘(4) oversee the development of a strategic plan for community economic development, taking into consideration the factors mentioned under paragraph (2), and consistent with the criteria established by the Secretary for the strategic plan developed under section 276;

      ‘(5) create an executive council of members of the Community Economic Development Coordinating Committee to promote the strategic plan within the community and ensure coordination and cooperation among all stakeholders; and

      ‘(6) apply for any grant, loan, or loan guarantee available under Federal law to develop or implement the strategic plan, and be an eligible recipient for funding for economic adjustment for that community.

‘SEC. 275. COMMUNITY ECONOMIC ADJUSTMENT ADVISORS.

    ‘(a) IN GENERAL- Pursuant to section 272(c)(3)(G), the Director shall assign a community economic adjustment advisor to each eligible community.

    ‘(b) DUTIES- The community economic adjustment advisor shall--

      ‘(1) provide technical assistance to the eligible community, assist in the development and implementation of a strategic plan, including applying for any grant available under this or any other Federal law to develop or implement that plan;

      ‘(2) at the local and regional level, coordinate the response of all Federal agencies offering assistance to the eligible community;

      ‘(3) serve as an ex officio member of the Community Economic Development Coordinating Committee established by an eligible community under section 274;

      ‘(4) act as liaison between the Community Economic Development Coordinating Committee established by the eligible community and all other Federal agencies that offer assistance to eligible communities, including the Department of Agriculture, the Department of Defense, the Department of Education, the Department of Labor, the Department of Housing and Urban Development, the Department of Health and Human Services, the Small Business Administration, the Department of the Treasury, the National Economic Council, and other offices or agencies of the Department of Commerce;

      ‘(5) report regularly to the Director regarding the progress of development activities in the community to which the community economic adjustment advisor is assigned; and

      ‘(6) perform other duties as directed by the Secretary or the Director.

‘SEC. 276. STRATEGIC PLANS.

    ‘(a) IN GENERAL- With the assistance of the community economic adjustment advisor, an eligible community may develop 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 capacity for economic adjustment, including the method of financing to be used, the anticipated management structure of the Community Economic Development Coordinating Committee, and the commitment of the community to the strategic plan over the long term.

      ‘(2) A description of, and a plan to accomplish, the projects to be undertaken by the eligible community.

      ‘(3) 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.

      ‘(4) A description of any alternative development plans that were considered, particularly less costly alternatives, and why those plans were rejected in favor of the proposed plan.

      ‘(5) A description of any additional steps the eligible community will take to achieve economic adjustment and diversification, including how the plan and the projects will contribute to establishing or maintaining a level of public services necessary to attract and retain economic investment.

      ‘(6) A description and justification for the cost and timing of proposed basic and advanced infrastructure improvements in the eligible community.

      ‘(7) A description of the occupational and workforce conditions in the eligible community, including but not limited to existing levels of workforce skills and competencies, and educational programs available for workforce training and future employment needs.

      ‘(8) A description of how the plan will adapt to changing markets, business cycles, and other variables.

      ‘(9) A graduation strategy through which the eligible community demonstrates that the community will terminate the need for Federal assistance.

    ‘(c) GRANTS TO DEVELOP STRATEGIC PLANS-

      ‘(1) IN GENERAL- The Director, upon receipt of an application from a Community Economic Development Coordinating Committee on behalf of an eligible community, shall award a grant to that community to be used to develop the strategic plan.

      ‘(2) AMOUNT- The amount of a grant made under paragraph (1) shall be determined by the Secretary, but may not exceed $50,000 to each community.

      ‘(3) LIMIT- Each community can only receive 1 grant under this subsection for the purpose of developing a strategic plan in any 5-year period.

    ‘(d) SUBMISSION OF PLAN- A strategic plan developed under subsection (a) shall be submitted to the Director for evaluation and approval.

‘SEC. 277. GRANTS FOR ECONOMIC DEVELOPMENT.

    ‘The Director, upon receipt of an application from the Community Economic Development Coordinating Committee on behalf of an eligible community, may award a grant to that community to carry out any project or program included in the strategic plan approved under section 276(d) that--

      ‘(1) will be located in, or will create or preserve high-wage jobs, in that eligible community; and

      ‘(2) implements the strategy of that eligible community to create high-wage jobs in sectors that are expected to expand, including projects that--

        ‘(A) encourage industries to locate in that eligible community, if such funds are not used to encourage the relocation of any employer in a manner that causes the dislocation of employees of that employer at another facility in the United States;

        ‘(B) leverage resources to create or improve Internet or telecommunications capabilities to make the community more attractive for business;

        ‘(C) establish a funding pool for job creation through entrepreneurial activities;

        ‘(D) assist existing firms in that community to restructure or retool to become more competitive in world markets and prevent job loss; or

        ‘(E) assist the community in acquiring the resources and providing the level of public services necessary to meet the objectives set out in the strategic plan.

‘SEC. 278. AUTHORIZATION OF APPROPRIATIONS.

    ‘There are authorized to be appropriated to the Department of Commerce, for the period beginning October 1, 2001, and ending September 30, 2007, such sums as may be necessary to carry out the purposes of this chapter.

‘SEC. 279. GENERAL PROVISIONS.

    ‘(a) REPORT BY THE DIRECTOR- Not later than 6 months after the date of enactment of the Trade Adjustment Assistance Reform Act of 2002, and annually thereafter, the Director shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report regarding the programs established under this title.

    ‘(b) REGULATIONS- The Secretary shall prescribe such regulations as are necessary to carry out the provisions of this chapter.

    ‘(c) SUPPLEMENT NOT SUPPLANT- Funds appropriated 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.’.

TITLE IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

SEC. 401. 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:

‘CHAPTER 6--ADJUSTMENT ASSISTANCE FOR FARMERS

‘SEC. 291. DEFINITIONS.

    ‘In this chapter:

      ‘(1) AGRICULTURAL COMMODITY- The term ‘agricultural commodity’ means any agricultural commodity (including livestock), except fish as defined in section 299(1) of this Act, in its raw or natural state.

      ‘(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)). The term does not include any person described in section 299(2) of this Act.

      ‘(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 marketing 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 Secretary 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 commodity, 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 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 commodity, 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 that 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 agricultural 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 producers 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 conditions 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.

‘SEC. 294. STUDY BY SECRETARY OF AGRICULTURE WHEN INTERNATIONAL TRADE COMMISSION BEGINS INVESTIGATION.

    ‘(a) IN GENERAL- Whenever the International Trade Commission (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 producing 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 determines 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 producers about the benefit allowances, training, and other employment services available under this title and about the petition and application procedures, and the appropriate 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 COMMODITY PRODUCERS.

    ‘(a) IN GENERAL-

      ‘(1) REQUIREMENTS- Payment of a trade adjustment allowance shall be made to an adversely affected agricultural commodity 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 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 commodity 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 assistance that will assist the producer in adjusting to import competition with respect to the adversely affected agricultural commodity, including--

          ‘(i) information regarding the feasibility and desirability of substituting 1 or more alternative commodities 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) LIMITATION-

        ‘(A) 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 $2,500,000.

        ‘(B) CERTIFICATION- To comply with the limitation under subparagraph (A), an individual or entity shall provide to the Secretary--

          ‘(i) a certification by a certified public accountant or another third party that is acceptable to the Secretary that the average adjusted gross income of the producer does not exceed $2,500,000; or

          ‘(ii) information and documentation regarding the adjusted gross income of the producer through other procedures established by the Secretary.

        ‘(C) DEFINITIONS- In this subsection:

          ‘(i) ADJUSTED GROSS INCOME- The term ‘adjusted gross income’ means adjusted gross income of an agricultural commodity producer--

            ‘(I) as defined in section 62 of the Internal Revenue Code of 1986 and implemented in accordance 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 commodity covered by the application described in subsection (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 produced 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 determined 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 paragraph (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 commodity 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 III of subchapter C of chapter 2.

‘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 payment under this chapter to which the person was not entitled, such person shall be liable to repay such amount to the Secretary, except that the Secretary may waive such repayment if the Secretary determines, in accordance with guidelines prescribed 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 payments 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 material 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 2002 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 requirements for adjustment assistance payable under this chapter, the amount of assistance payable under this chapter shall be reduced proportionately.’.

    (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.

TITLE V--TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN

SEC. 501. TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN.

    (a) IN GENERAL- Title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), as amended by title IV of this Act, is amended by adding at the end the following new chapter:

‘CHAPTER 7--ADJUSTMENT ASSISTANCE FOR FISHERMEN

‘SEC. 299. DEFINITIONS.

    ‘In this chapter:

      ‘(1) COMMERCIAL FISHING, FISH, FISHERY, 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).

      ‘(2) PRODUCER- The term ‘producer’ means any person who--

        ‘(A) is engaged in commercial fishing; or

        ‘(B) is a United States fish processor.

      ‘(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 a fish caught through commercial fishing or processed by a United States fish processor with respect to which a petition under this chapter was filed contributed importantly to a decline in the price of the fish shall be made by the Secretary.

      ‘(4) DULY AUTHORIZED REPRESENTATIVE- The term ‘duly authorized representative’ means an association of producers.

      ‘(5) NATIONAL AVERAGE PRICE- The term ‘national average price’ means the national average price paid to a producer for fish in a marketing year as determined by the Secretary.

      ‘(6) SECRETARY- The term ‘Secretary’ means the Secretary of Commerce.

      ‘(7) TRADE ADJUSTMENT ASSISTANCE CENTER- The term ‘Trade Adjustment Assistance Center’ shall have the same meaning as such term has in section 253.

‘SEC. 299A. 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 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 Secretary 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 producers as eligible to apply for adjustment assistance under this chapter if the Secretary determines--

      ‘(1) that the national average price for the fish, or a class of fish, 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 fish, or such class of fish, for the 5 marketing years preceding the most recent marketing year; and

      ‘(2) that increases in imports of articles like or directly competitive with the fish, or class of fish, 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 producers certified as eligible under section 299B 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 fish, or class of fish, 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 producers certified as eligible under section 299B, means each consecutive year after the year in which the group is certified that 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 fish, 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 299E.

‘SEC. 299B. DETERMINATIONS BY SECRETARY.

    ‘(a) IN GENERAL- As soon as practicable after the date on which a petition is filed under section 299A, 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 299A (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 producers 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 fish covered by the certification is no longer attributable to the conditions described in section 299A, 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.

‘SEC. 299C. STUDY BY SECRETARY WHEN INTERNATIONAL TRADE COMMISSION BEGINS INVESTIGATION.

    ‘(a) IN GENERAL- Whenever the International Trade Commission (in this chapter referred to as the ‘Commission’) begins an investigation under section 202 with respect to a fish, 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 producers producing 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 under subsection (a). Upon making his report to the President, the Secretary shall also promptly make the report public (with the exception of information which the Secretary determines to be confidential) and shall have a summary of it published in the Federal Register.

‘SEC. 299D. BENEFIT INFORMATION TO PRODUCERS.

    ‘(a) IN GENERAL- The Secretary shall provide full information to producers about the benefit allowances, training, and other employment services available under this title and about the petition and application procedures, and the appropriate 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 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 producers that are covered by each certification made under this chapter in newspapers of general circulation in the areas in which such producers reside.

‘SEC. 299E. QUALIFYING REQUIREMENTS FOR PRODUCERS.

    ‘(a) IN GENERAL- Payment of a trade adjustment allowance shall be made to an adversely affected 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 and issues a certification of eligibility under section 299B, if the following conditions are met:

      ‘(1) The producer submits to the Secretary sufficient information to establish the amount of fish covered by the application filed under subsection (a) that was produced by the producer in the most recent year.

      ‘(2) The producer certifies that the producer has not received cash benefits under any provision of this title other than this chapter.

      ‘(3) The producer’s net fishing or processing income (as determined by the Secretary) for the most recent year is less than the producer’s net fishing or processing income for the latest year in which no adjustment assistance was received by the producer under this chapter.

      ‘(4) The producer certifies that--

        ‘(A) the producer has met with an employee or agent from a Trade Adjustment Assistance Center to obtain, at no cost to the producer, information and technical assistance that will assist the producer in adjusting to import competition with respect to the adversely affected fish, including--

          ‘(i) information regarding the feasibility and desirability of substituting 1 or more alternative fish for the adversely affected fish; and

          ‘(ii) technical assistance that will improve the competitiveness of the production and marketing of the adversely affected fish by the producer, including yield and marketing improvements; and

        ‘(B) none of the benefits will be used to purchase, lease, or finance any new fishing vessel, add capacity to any fishery, or otherwise add to the overcapitalization of any fishery.

    ‘(b) AMOUNT OF CASH BENEFITS-

      ‘(1) IN GENERAL- Subject to the provisions of section 299G, an adversely affected 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 fish covered by the application described in subsection (a) for the 5 marketing years preceding the most recent marketing year; and

          ‘(ii) the national average price of the fish for the most recent marketing year; and

        ‘(B) the amount of the fish produced by the 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 determined in the same manner as cash benefits are determined under paragraph (1) except that the average national price of the fish shall be determined under paragraph (1)(A)(i) by using the 5-marketing-year period used to determine the amount of cash benefits for the first certification. A producer shall only be eligible for benefits for subsequent qualified years if the Secretary or his designee determines that sufficient progress has been made implementing the plans developed under section 299E(a)(4) of this title.

    ‘(c) MAXIMUM AMOUNT OF CASH ASSISTANCE- The maximum amount of cash benefits a producer may receive in any 12-month period shall not exceed $10,000.

    ‘(d) LIMITATIONS ON OTHER ASSISTANCE- A 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 III of subchapter C of chapter 2.

‘SEC. 299F. 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 payment under this chapter to which the person was not entitled, such person shall be liable to repay such amount to the Secretary, except that the Secretary may waive such repayment if the Secretary determines, in accordance with guidelines prescribed 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 payments 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 material 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. 299G. AUTHORIZATION OF APPROPRIATIONS.

    ‘(a) IN GENERAL- There are authorized to be appropriated and there are appropriated to the Department of Commerce not to exceed $10,000,000 for each of the fiscal years 2002 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 requirements for adjustment assistance payable under this chapter, the amount of assistance payable under this chapter shall be reduced proportionately.’.

    (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.

TITLE VI--HEALTH CARE COVERAGE OPTIONS FOR WORKERS ELIGIBLE FOR TRADE ADJUSTMENT ASSISTANCE

SEC. 601. TRADE ADJUSTMENT ASSISTANCE HEALTH INSURANCE CREDIT.

    (a) IN GENERAL- Subchapter B of chapter 65 of the Internal Revenue Code of 1986 (relating to abatements, credits, and refunds) is amended by inserting after section 6428 the following new section:

‘SEC. 6429. TRADE ADJUSTMENT ASSISTANCE HEALTH INSURANCE CREDIT.

    ‘(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 70 percent of the amount paid during the taxable year for coverage for the taxpayer, the taxpayer’s spouse, and dependents of the taxpayer under qualified health insurance during eligible coverage months.

    ‘(b) ELIGIBLE COVERAGE MONTH- For purposes of this section--

      ‘(1) IN GENERAL- The term ‘eligible coverage month’ means any month if, as of the first day of such month--

        ‘(A) the taxpayer is an eligible individual,

        ‘(B) the taxpayer is covered by qualified health insurance,

        ‘(C) the premium for coverage under such insurance for such month is paid by the taxpayer, and

        ‘(D) the taxpayer does not have other specified coverage.

      ‘(2) SPECIAL RULES-

        ‘(A) JOINT RETURNS- In the case of a joint return, the requirements of paragraph (1) shall be treated as met if at least 1 spouse satisfies such requirements.

        ‘(B) EXCLUSION OF MONTHS IN WHICH INDIVIDUAL IS IMPRISONED- Such term shall not include any month with respect to an individual if, as of the first day of such month, such individual is imprisoned under Federal, State, or local authority.

      ‘(3) OTHER SPECIFIED COVERAGE- For purposes of this subsection, 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 qualified health insurance under which at least 50 percent of the cost of coverage (determined under section 4980B) is paid or incurred by an employer (or former employer) of the taxpayer or the taxpayer’s spouse.

          ‘(ii) TREATMENT OF CAFETERIA PLANS AND FLEXIBLE SPENDING ACCOUNTS- For purposes of clause (i), the cost of benefits--

            ‘(I) which are chosen under a cafeteria plan (as defined in section 125(d)), or provided under a flexible spending or similar arrangement, of such an employer, and

            ‘(II) which are not includible in gross income under section 106,

          shall be treated as borne by such employer.

        ‘(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).

        ‘(C) CERTAIN OTHER COVERAGE- Such individual--

          ‘(i) is enrolled in a health benefits plan under chapter 89 of title 5, United States Code,

          ‘(ii) is entitled to receive benefits under chapter 55 of title 10, United States Code,

          ‘(iii) is entitled to receive benefits under chapter 17 of title 38, United States Code, or

          ‘(iv) is eligible for benefits under the Indian Health Care Improvement Act.

      ‘(4) SPECIAL RULE- For purposes of this subsection, an individual does not have other specified coverage for any month if such coverage is under a qualified long-term care insurance contract (as defined in section 7702B(b)(1)).

    ‘(c) ELIGIBLE INDIVIDUAL- For purposes of this section, the term ‘eligible individual’ means an individual who is qualified to receive payment of a trade adjustment allowance under section 235 of the Trade Act of 1974, as amended by section 111 of the Trade Adjustment Assistance Reform Act of 2002.

    ‘(d) QUALIFIED HEALTH INSURANCE- For purposes of this section, the term ‘qualified health insurance’ means health insurance coverage described under section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)).

    ‘(e) COORDINATION WITH ADVANCE PAYMENTS OF CREDIT-

      ‘(1) RECAPTURE OF EXCESS ADVANCE PAYMENTS- If any payment is made by the Secretary under section 7527 during any calendar year to a provider of qualified health insurance for an individual, then the tax imposed by this chapter for the individual’s last taxable year beginning in such calendar year shall be increased by the aggregate amount of such payments.

      ‘(2) RECONCILIATION OF PAYMENTS ADVANCED AND CREDIT ALLOWED- Any increase in tax under paragraph (1) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit (other than the credit allowed by subsection (a)) allowable under part IV of subchapter A of chapter 1.

    ‘(f) SPECIAL RULES-

      ‘(1) COORDINATION WITH OTHER DEDUCTIONS- Amounts taken into account under subsection (a) shall not be taken into account in determining any deduction allowed under section 162(l) or 213.

      ‘(2) MSA DISTRIBUTIONS- Amounts distributed from an Archer MSA (as defined in section 220(d)) shall not be taken into account under subsection (a).

      ‘(3) 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.

      ‘(4) CREDIT TREATED AS REFUNDABLE CREDIT- For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart C of part IV of subchapter A of chapter 1.

      ‘(5) EXPENSES MUST BE SUBSTANTIATED- A payment for qualified health insurance to which subsection (a) applies may be taken into account under this section only if the taxpayer substantiates such payment in such form as the Secretary may prescribe.

      ‘(6) REGULATIONS- The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section 7527.’.

    (b) 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 TRADE ADJUSTMENT ASSISTANCE HEALTH INSURANCE CREDIT.

    ‘(a) REQUIREMENT OF REPORTING- Every person--

      ‘(1) who, in connection with a trade or business conducted by such person, receives payments during any calendar year from any individual for coverage of such individual or any other individual under qualified health insurance (as defined in section 6429(d)), and

      ‘(2) who claims a reimbursement for an advance credit amount,

    shall, at such time as the Secretary may prescribe, make the return described in subsection (b) with respect to each individual from whom such payments were received or for whom such a reimbursement is claimed.

    ‘(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 aggregate of the advance credit amounts provided to such individual and for which reimbursement is claimed,

        ‘(C) the number of months for which such advance credit amounts are so provided, and

        ‘(D) such other information as the Secretary may prescribe.

    ‘(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.

    ‘(d) ADVANCE CREDIT AMOUNT- For purposes of this section, the term ‘advance credit amount’ means an amount for which the person can claim a reimbursement pursuant to a program established by the Secretary under section 7527.’.

      (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 trade adjustment assistance health insurance credit),’.

        (B) Paragraph (2) of section 6724(d) of such Code is amended by striking ‘or’ at the end of subparagraph (Z), 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 trade adjustment assistance health insurance credit).’.

      (3) CLERICAL AMENDMENT- The table of sections for subpart 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 trade adjustment assistance health insurance credit.’.

    (c) CRIMINAL PENALTY FOR FRAUD-

      (1) IN GENERAL- Subchapter B of chapter 75 of the Internal Revenue Code of 1986 (relating to other offenses) is amended by adding at the end the following:

‘SEC. 7276. PENALTIES FOR OFFENSES RELATING TO TRADE ADJUSTMENT ASSISTANCE HEALTH INSURANCE CREDIT.

    ‘Any person who knowingly misuses Department of the Treasury names, symbols, titles, or initials to convey the false impression of association with, or approval or endorsement by, the Department of the Treasury of any insurance products or group health coverage in connection with the credit for trade adjustment assistance health insurance under section 6429 shall on conviction thereof be fined not more than $10,000, or imprisoned not more than 1 year, or both.’.

      (2) The table of sections for subchapter B of chapter 75 of such Code is amended by adding at the end the following:

‘Sec. 7276. Penalties for offenses relating to trade adjustment assistance health insurance credit.’.

    (d) 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 6429 of such Code’.

      (2) The table of sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

‘Sec. 6429. Trade adjustment assistance health insurance credit.’.

    (e) EFFECTIVE DATES-

      (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, without regard to whether final regulations to carry out such amendments have been promulgated by such date.

      (2) PENALTIES- The amendments made by subsection (c) shall take effect on the date of the enactment of this Act.

SEC. 602. ADVANCE PAYMENT OF TRADE ADJUSTMENT ASSISTANCE HEALTH INSURANCE CREDIT.

    (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:

‘SEC. 7527. ADVANCE PAYMENT OF TRADE ADJUSTMENT ASSISTANCE HEALTH INSURANCE CREDIT.

    ‘(a) GENERAL RULE- The Secretary shall establish a program for making payments on behalf of eligible individuals (as defined in section 6429(c)) to providers of health insurance for such individuals for whom a qualified health insurance credit eligibility certificate is in effect.

    ‘(b) QUALIFIED HEALTH INSURANCE CREDIT ELIGIBILITY CERTIFICATE- For purposes of this section, a qualified health insurance credit eligibility certificate is a statement certified by a designated local agency (as defined in section 51(d)(11)) (or by any other entity designated by the Secretary) which--

      ‘(1) certifies that the individual was an eligible individual (as defined in section 6429(c)) as of the first day of any month, and

      ‘(2) provides such other information as the Secretary may require for purposes of this section.’.

    (b) CLERICAL AMENDMENT- 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 trade adjustment assistance health insurance credit.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act, without regard to whether final regulations to carry out such amendments have been promulgated by such date.

SEC. 603. HEALTH INSURANCE COVERAGE FOR ELIGIBLE INDIVIDUALS.

    (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 to provide the assistance described in subsection (f) to any eligible worker (as defined in subsection (f)(4)(B)); and

        ‘(B) to a State to provide the assistance described in subsection (g) to any eligible worker (as defined in subsection (g)(5)).’.

    (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 WORKERS-

      ‘(1) IN GENERAL- Funds made available to a State under paragraph (4)(A) of subsection (a) may be used by the State for the following:

        ‘(A) HEALTH INSURANCE COVERAGE- To assist an eligible worker (as defined in paragraph (4)(B)) in enrolling in health insurance coverage through--

          ‘(i) COBRA continuation coverage;

          ‘(ii) State-based continuation coverage provided by the State under a State law that requires such coverage even though the coverage would not otherwise be required under the provisions of law referred to in paragraph (4)(A);

          ‘(iii) the enrollment of the eligible worker and the eligible worker’s spouse and dependents in health insurance coverage offered through a qualified State high risk pool or other comparable State-based health insurance coverage alternative;

          ‘(iv) the enrollment of the eligible worker and the eligible worker’s spouse and dependents in the health insurance program offered for State employees;

          ‘(v) the enrollment of the eligible worker and the eligible worker’s spouse and dependents in a State-based health insurance program that is comparable to the health insurance program offered for State employees;

          ‘(vi) a direct payment arrangement entered into by the State and a group health plan (including a multiemployer plan as defined in section 3(37) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(37))), an issuer of health insurance coverage, an administrator, or an employer, as appropriate, on behalf of the eligible worker and the eligible worker’s spouse and dependents;

          ‘(vii) the enrollment of the eligible worker and the eligible worker’s spouse and dependents in a State-operated, State-funded health plan;

          ‘(viii) the enrollment of the eligible worker and the eligible worker’s spouse and dependents in health insurance coverage offered through a State arrangement with a private sector health care coverage purchasing pool; or

          ‘(ix) in the case of an eligible worker who was enrolled in individual health insurance coverage during the 6-month period that ends on the date on which the worker became unemployed, enrollment in such individual health insurance coverage.

        ‘(B) ESTABLISHMENT OF HEALTH INSURANCE COVERAGE MECHANISMS- To establish or administer--

          ‘(i) a qualified State high risk pool for the purpose of providing health insurance coverage to an eligible worker and the eligible worker’s spouse and dependents;

          ‘(ii) a State-based program for the purpose of providing health insurance coverage to an eligible worker and the eligible worker’s spouse and dependents that is comparable to the State health insurance program for State employees; or

          ‘(iii) a program under which the State enters into arrangements described in subparagraph (A)(vi).

        ‘(C) ADMINISTRATIVE EXPENSES- To pay the administrative expenses related to the enrollment of eligible workers and the eligible workers spouses and dependents in health insurance coverage described in subparagraph (A), including--

          ‘(i) eligibility verification activities;

          ‘(ii) the notification of eligible workers of available health insurance coverage options;

          ‘(iii) processing qualified health insurance credit eligibility certificates provided for under section 7527 of the Internal Revenue Code of 1986;

          ‘(iv) providing assistance to eligible workers in enrolling in health insurance coverage;

          ‘(v) the development or installation of necessary data management systems; and

          ‘(vi) any other expenses determined appropriate by the Secretary.

      ‘(2) REQUIREMENTS RELATING TO HEALTH INSURANCE COVERAGE- With respect to health insurance coverage provided to eligible workers under any of clauses (ii) through (viii) of paragraph (1)(A), the State shall ensure that--

        ‘(A) enrollment is guaranteed for workers who provide a qualified health insurance credit eligibility certificate described in section 7527 of the Internal Revenue Code of 1986 and who pay the remainder of the premium for such enrollment;

        ‘(B) no pre-existing condition limitations are imposed with respect to such eligible workers;

        ‘(C) the worker is not required (as a condition of enrollment or continued enrollment under the coverage) to pay a premium or contribution that is greater than the premium or contribution for a similarly situated individual who is not an eligible worker;

        ‘(D) benefits under the coverage are the same as (or substantially similar to) the benefits provided to similarly situated individuals who are not eligible workers;

        ‘(E) the standard loss ratio for the coverage is not less than 65 percent;

        ‘(F) in the case of coverage provided under paragraph (1)(A)(v), the premiums and benefits are comparable to the premiums and benefits applicable to State employees; and

        ‘(G) such coverage otherwise meets requirements established by the Secretary.

      ‘(3) AVAILABILITY OF FUNDS-

        ‘(A) EXPEDITED PROCEDURES- With respect to applications submitted by States 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, notify the State of the determination of the Secretary with respect to the approval or disapproval of such application;

          ‘(ii) in the case of a State application that is disapproved by the Secretary, provide technical assistance, at the request of the State, in a timely manner to enable the State to submit an approved application; and

          ‘(iii) develop procedures to expedite the provision of funds to States with approved applications.

        ‘(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 throughout the period described in section 174(c)(2)(A).

      ‘(4) DEFINITIONS- For purposes of this subsection:

        ‘(A) COBRA CONTINUATION COVERAGE- The term ‘COBRA continuation coverage’ means coverage under a group health plan provided by an employer pursuant to title XXII of the Public Health Service Act, section 4980B of the Internal Revenue Code of 1986, part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, or section 8905a of title 5, United States Code.

        ‘(B) ELIGIBLE WORKER- The term ‘eligible worker’ means an individual who--

          ‘(i) is qualified to receive payment of a trade adjustment allowance under section 235 of the Trade Act of 1974, as amended by section 111 of the Trade Adjustment Assistance Reform Act of 2002;

          ‘(ii) does not have other specified coverage; and

          ‘(iii) is not imprisoned under Federal, State, or local authority.

        ‘(C) OTHER SPECIFIED COVERAGE- With respect to any individual, the term ‘other specified coverage’ means--

          ‘(i) SUBSIDIZED COVERAGE-

            ‘(I) IN GENERAL- Such individual is covered under any health insurance coverage under which at least 50 percent of the cost of coverage (determined under section 4980B of the Internal Revenue Code of 1986) is paid or incurred by an employer (or former employer) of the individual or the individual’s spouse.

            ‘(II) TREATMENT OF CAFETERIA PLANS AND FLEXIBLE SPENDING ACCOUNTS- For purposes of subclause (I), the cost of benefits which are chosen under a cafeteria plan (as defined in section 125(d) of such Code), or provided under a flexible spending or similar arrangement, of such an employer, and which are not includible in gross income under section 106 of such Code, shall be treated as borne by such employer.

          ‘(ii) 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).

          ‘(iii) CERTAIN OTHER COVERAGE- Such individual--

            ‘(I) is enrolled in a health benefits plan under chapter 89 of title 5, United States Code;

            ‘(II) is entitled to receive benefits under chapter 55 of title 10, United States Code;

            ‘(III) is entitled to receive benefits under chapter 17 of title 38, United States Code; or

            ‘(IV) is eligible for benefits under the Indian Health Care Improvement Act.

        Such term does not include coverage under a qualified long-term care insurance contract (as defined in section 7702B(b)(1) of the Internal Revenue Code of 1986).

        ‘(D) GROUP HEALTH PLAN- The term ‘group health plan’ has the meaning given that term in section 2791(a) of the Public Health Service Act (42 U.S.C. 300gg-91(a)), section 607(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1167(1)), and section 4980B(g)(2) of the Internal Revenue Code of 1986.

        ‘(E) HEALTH INSURANCE COVERAGE- The term ‘health insurance coverage’ has the meaning given that term in section 2791(b)(1) of the Public Health Service Act (42 U.S.C. 300gg-91(b)(1)) (other than insurance if substantially all of its coverage is of excepted benefits described in section 2791(c) of such Act (42 U.S.C. 300gg-91(c)) .

        ‘(F) INDIVIDUAL HEALTH INSURANCE COVERAGE- The term ‘individual health insurance coverage’ means health insurance coverage offered to individuals other than in connection with a group health plan. Such term does not include Federal- or State-based health insurance coverage.

        ‘(G) QUALIFIED STATE HIGH RISK POOL- The term ‘qualified State high risk pool’ has the meaning given that term in section 2744(c)(2) of the Public Health Service Act.

        ‘(H) STANDARD LOSS RATIO- The term ‘standard loss ratio’, with respect to the pool of insured individuals under coverage described in clauses (ii) through (viii) of subparagraph (A) for a year, means--

          ‘(i) the amount of claims incurred with respect to the pool of insured individuals in each such type of coverage for such year; divided by

          ‘(ii) the premiums paid for enrollment in each such coverage for such year.

    ‘(g) INTERIM HEALTH AND OTHER ASSISTANCE-

      ‘(1) IN GENERAL- Funds made available to a State under paragraph (4)(B) of subsection (a) may be used by the State to provide assistance and support services to eligible workers, including health care coverage, transportation, child care, dependent care, and income assistance.

      ‘(2) INCOME SUPPORT- With respect to any income assistance provided to an eligible worker 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 Adjustment Assistance Reform Act of 2002) or the unemployment compensation laws of the State where the eligible worker resides.

      ‘(3) HEALTH CARE COVERAGE- With respect to any health care coverage assistance provided to an eligible worker with such funds, the following rules shall apply:

        ‘(A) The State may provide assistance in obtaining health care coverage to the eligible worker and to the eligible worker’s spouse and dependents.

        ‘(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 determining the amount of non-Federal contributions required under any program.

      ‘(4) AVAILABILITY OF FUNDS-

        ‘(A) EXPEDITED PROCEDURES- With respect to applications submitted by States 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, notify the State of the determination of the Secretary with respect to the approval or disapproval of such application;

          ‘(ii) in the case of a State application that is disapproved by the Secretary, provide technical assistance, at the request of the State, in a timely manner to enable the State to submit an approved application; and

          ‘(iii) develop procedures to expedite the provision of funds to States with approved applications.

        ‘(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 throughout the period described in section 174(c)(2)(B).

      ‘(5) DEFINITION OF ELIGIBLE WORKER- In this subsection, the term ‘eligible worker’ means 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 Adjustment Assistance Reform Act of 2002) and who is determined to be qualified to receive payment of a trade adjustment allowance under such chapter (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) IN GENERAL- There are authorized to be appropriated--

        ‘(A) to carry out subsection (a)(4)(A) of section 173--

          ‘(i) $10,000,000 for fiscal year 2002; and

          ‘(ii) $60,000,000 for each of fiscal years 2003 through 2007; and

        ‘(B) to carry out subsection (a)(4)(B) of section 173--

          ‘(i) $50,000,000 for fiscal year 2002;

          ‘(ii) $100,000,000 for fiscal year 2003; and

          ‘(iii) $50,000,000 for fiscal year 2004.

      ‘(2) AVAILABILITY OF FUNDS- Funds appropriated under--

        ‘(A) paragraph (1)(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 Adjustment Assistance Reform Act of 2002; and

        ‘(B) paragraph (1)(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 Adjustment Assistance Reform 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) IN GENERAL- Notwithstanding any other provision of law, the election period for COBRA continuation coverage (as defined in section 6429(d)(2) of the Internal Revenue Code of 1986) with respect to any eligible individual (as defined in section 6429(c) of such Code) for whom such period has expired as of the date of the enactment of this Act, shall not end before the date that is 60 days after the date the individual becomes such an eligible individual.

      (2) PREEXISTING CONDITIONS- If an individual becomes such an eligible individual, any period before the date of such eligibility shall be disregarded for purposes of determining the 63-day periods referred to in section 701(c)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)), section 2701(c)(2) of the Public Health Service Act (42 U.S.C. 300gg(c)(2)), and section 9801(c)(2) of the Internal Revenue Code of 1986.

TITLE VII--CONFORMING AMENDMENTS AND EFFECTIVE DATE

SEC. 701. CONFORMING AMENDMENTS.

    (a) AMENDMENTS TO THE TRADE ACT OF 1974-

      (1) ASSISTANCE TO INDUSTRIES- Section 265 of the Trade Act of 1974 (19 U.S.C. 2355) is amended by striking ‘certified as eligible to apply for adjustment assistance under sections 231 or 251’, and inserting ‘certified as eligible for trade adjustment assistance benefits under section 231, or as eligible to apply for adjustment assistance under section 251’.

      (2) GENERAL ACCOUNTING OFFICE REPORT- Section 280 of the Trade Act of 1974 (19 U.S.C. 2391) is amended to read as follows:

‘SEC. 280. GENERAL ACCOUNTING OFFICE REPORT.

    ‘(a) STUDY AND REPORT- The Comptroller General of the United States shall conduct a study of the adjustment assistance programs established under chapters 2, 3, 4, 6, and 7 of this title and shall report the results of such study to the Congress no later than January 31, 2005. Such report shall include an evaluation of--

      ‘(1) the effectiveness of such programs in aiding workers, farmers, fishermen, firms, and communities to adjust to changed economic conditions resulting from changes in the patterns of international trade; and

      ‘(2) the coordination of the administration of such programs and other Government programs which provide unemployment compensation and relief to depressed areas.

‘(b) ASSISTANCE OF OTHER DEPARTMENTS AND AGENCIES- In carrying out his responsibilities under this section, the Comptroller General shall, to the extent practical, avail himself of the assistance of the Departments of Labor, Commerce, and Agriculture and the Small Business Administration. The Secretaries of Labor, Commerce, and Agriculture and the Administrator of the Small Business Administration shall make available to the Comptroller General any assistance necessary for an effective evaluation of the adjustment assistance programs established under this title.’.

      (3) COORDINATION- Section 281 of the Trade Act of 1974 (19 U.S.C. 2392) is amended by striking ‘Departments of Labor and Commerce’ and inserting ‘Departments of Labor, Commerce, and Agriculture’.

      (4) TRADE MONITORING SYSTEM- Section 282 of the Trade Act of 1974 (19 U.S.C. 2393) is amended by striking ‘The Secretary of Commerce and the Secretary of Labor’ and inserting ‘The Secretaries of Commerce, Labor, and Agriculture’.

      (5) JUDICIAL REVIEW-

        (A) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a)) is amended by striking ‘under section 223 or section 250(c)’ and all that follows through ‘the Secretary of Commerce under section 271’ and inserting ‘under section 231, a firm or its representative, or any other interested domestic party aggrieved by a final determination of the Secretary of Commerce under section 251, an agricultural commodity producer (as defined in section 291(2)) aggrieved by a determination of the Secretary of Agriculture under section 293, or a producer (as defined in section 299(2)) aggrieved by a determination of the Secretary of Commerce under section 299B’.

        (B) Section 284 of such Trade Act of 1974 is amended in the second sentence of subsection (a) and in subsections (b) and (c), by inserting ‘or the Secretary of Agriculture’ after ‘Secretary of Commerce’ each place it appears.

      (6) 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 section 231; 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 COMMUNITIES- Technical assistance and other payments may not be provided under chapter 4 after September 30, 2007.

      ‘(3) ASSISTANCE FOR FARMERS AND FISHERMEN-

        ‘(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 or 7 after September 30, 2007.

        ‘(B) EXCEPTION- Notwithstanding subparagraph (A), an agricultural commodity producer (as defined in section 291(2)) or producer (as defined in section 299(2)), shall continue to receive adjustment assistance benefits and other benefits under chapter 6 or 7, whichever applies, for any week for which the agricultural commodity producer or producer meets the eligibility requirements of chapter 6 or 7, whichever applies, if on or before September 30, 2007, the agricultural commodity producer or producer is--

          ‘(i) certified as eligible for adjustment assistance benefits under chapter 6 or 7, whichever applies; and

          ‘(ii) is otherwise eligible to receive adjustment assistance benefits under such chapter 6 or 7.’.

      (6) TABLE OF CONTENTS-

        (A) IN GENERAL- The table of contents for chapters 2, 3, and 4 of title II of the Trade Act of 1974 is amended to read as follows:

‘Chapter 2--Adjustment Assistance for Workers

‘SUBCHAPTER A--GENERAL PROVISIONS

‘Sec. 221. Definitions.

‘Sec. 222. Agreements with States.

‘Sec. 223. Administration absent State agreement.

‘Sec. 224. Data collection; evaluations; reports.

‘Sec. 225. Study by Secretary of Labor when International Trade Commission begins investigation.

‘Sec. 226. Report by Secretary of Labor on likely impact of trade agreements.

‘SUBCHAPTER B--CERTIFICATIONS

‘Sec. 231. Certification as adversely affected workers.

‘Sec. 232. Benefit information to workers.

‘SUBCHAPTER C--PROGRAM BENEFITS

‘Part I--General Provisions

‘Sec. 234. Comprehensive assistance.

‘Part II--Trade Adjustment Allowances

‘Sec. 235. Qualifying requirements for workers.

‘Sec. 236. Weekly amounts.

‘Sec. 237. Limitations on trade adjustment allowances.

‘Sec. 238. Application of State laws.

‘Part III--Employment Services, Training, and Other Allowances

‘Sec. 239. Employment services.

‘Sec. 240. Training.

‘Sec. 240A. Job training programs.

‘Sec. 241. Job search allowances.

‘Sec. 242. Relocation allowances.

‘Sec. 243. Supportive services; wage insurance.

‘SUBCHAPTER D--PAYMENT AND ENFORCEMENT PROVISIONS

‘Sec. 244. Payments to States.

‘Sec. 245. Liabilities of certifying and disbursing officers.

‘Sec. 246. Fraud and recovery of overpayments.

‘Sec. 247. Criminal penalties.

‘Sec. 248. Authorization of appropriations.

‘Sec. 249. Regulations.

‘Sec. 250. Subpoena power.

‘Chapter 3--Trade Adjustment Assistance for Firms

‘Sec. 251. Petitions and determinations.

‘Sec. 252. Approval of adjustment proposals.

‘Sec. 253. Technical assistance.

‘Sec. 254. Financial assistance.

‘Sec. 255. Conditions for financial assistance.

‘Sec. 256. Delegation of functions to Small Business Administration; authorization of appropriations.

‘Sec. 257. Administration of financial assistance.

‘Sec. 258. Protective provisions.

‘Sec. 259. Penalties.

‘Sec. 260. Suits.

‘Sec. 261. Definition of firm.

‘Sec. 262. Regulations.

‘Sec. 264. Study by Secretary of Commerce when International Trade Commission begins investigation; action where there is affirmative finding.

‘Sec. 265. Assistance to industries.

‘Chapter 4--Community Economic Adjustment

‘Sec. 271. Definitions.

‘Sec. 272. Office of Community Trade Adjustment.

‘Sec. 273. Notification and certification as an eligible community.

‘Sec. 274. Community Economic Development Coordinating Committee.

‘Sec. 275. Community economic adjustment advisors.

‘Sec. 276. Strategic plans.

‘Sec. 277. Grants for economic development.

‘Sec. 278. Authorization of appropriations.

‘Sec. 279. General provisions.’.

        (B) CHAPTERS 6 AND 7- 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.

‘Chapter 7--Adjustment Assistance for Fishermen

      ‘Sec. 299. Definitions.

      ‘Sec. 299A. Petitions; group eligibility.

      ‘Sec. 299B. Determinations by Secretary.

      ‘Sec. 299C. Study by Secretary when International Trade Commission begins investigation.

      ‘Sec. 299D. Benefit information to producers.

      ‘Sec. 299E. Qualifying requirements for producers.

      ‘Sec. 299F. Fraud and recovery of overpayments.

      ‘Sec. 299G. Authorization of appropriations.’.

    (b) INTERNAL REVENUE CODE-

      (1) ADJUSTED GROSS INCOME- Section 62(a)(12) of the Internal Revenue Code of 1986 (relating to the definition of adjusted gross income) is amended by striking ‘trade readjustment allowances under section 231 or 232’ and inserting ‘trade adjustment allowances under section 235 or 236’.

      (2) FEDERAL UNEMPLOYMENT-

        (A) IN GENERAL- Section 3304(a)(8) of the Internal Revenue Code of 1986 (relating to the approval of State unemployment insurance laws) is amended to read as follows:

      ‘(8) compensation shall not be denied to an individual for any week because the individual is in training with the approval of the State agency, or in training approved by the Secretary of Labor pursuant to chapter 2 of title II of the Trade Act of 1974 (or because of the application, to any such week in training, of State law provisions relating to availability for work, active search for work, or refusal to accept work);’.

        (B) EFFECTIVE DATE-

          (i) IN GENERAL- Except as provided in clause (ii), the amendments made by this paragraph shall apply in the case of compensation paid for weeks beginning on or after the date that is 90 days after the date of enactment of this Act.

          (ii) MEETING OF STATE LEGISLATURE-

            (I) IN GENERAL- If the Secretary of Labor identifies a State as requiring a change to its statutes or regulations in order to comply with the amendments made by subparagraph (A), the amendments made by subparagraph (A) shall apply in the case of compensation paid for weeks beginning after the earlier of--

(aa) the date the State changes its statutes or regulations in order to comply with the amendments made by this section; or

(bb) the end of the first session of the State legislature which begins after the date of enactment of this Act or which began prior to such date and remained in session for at least 25 calendar days after such date;

            except that in no case shall the amendments made by this Act apply before the date described in clause (i).

            (II) SESSION DEFINED- In this clause, the term ‘session’ means a regular, special, budget, or other session of a State legislature.

    (c) AMENDMENTS TO TITLE 28-

      (1) CIVIL ACTIONS AGAINST THE UNITED STATES- Section 1581(d) of title 28, United States Code, is amended--

        (A) in paragraph (1), by striking ‘section 223’ and inserting ‘section 231’;

        (B) in paragraph (2), by striking ‘and’; and

        (C) by striking paragraph (3), and inserting the following:

      ‘(3) any final determination of the Secretary of Agriculture under section 293 of the Trade Act of 1974 with respect to the eligibility of an agricultural commodity producer (as defined in section 291(2)) for adjustment assistance under such Act; and

      ‘(4) any final determination of the Secretary of Commerce under section 299B of the Trade Act of 1974 with respect to the eligibility of a producer (as defined in section 299(2)) for adjustment assistance under such Act.’.

      (2) PERSONS ENTITLED TO COMMENCE A CIVIL ACTION- Section 2631 of title 28, United States Code, is amended--

        (A) by amending subsection (d)(1) to read as follows:

    ‘(d)(1) A civil action to review any final determination of the Secretary of Labor under section 231 of the Trade Act of 1974 with respect to the certification of workers as adversely affected and eligible for trade adjustment assistance under that Act may be commenced by a worker, a group of workers, a certified or recognized union, or an authorized representative of such worker or group, that petitions for certification under that Act or is aggrieved by the final determination.’;

        (B) by striking paragraph (3), and inserting the following:

      ‘(3) A civil action to review any final determination of the Secretary of Agriculture under section 293 of the Trade Act of 1974 with respect to the eligibility of an agricultural commodity producer for adjustment assistance may be commenced in the Court of International Trade by an agricultural commodity producer that applies for assistance under such Act and is aggrieved by such final determination, or by any other interested party that is aggrieved by such final determination.’; and

        (C) by adding at the end the following new paragraph:

      ‘(4) A civil action to review any final determination of the Secretary of Commerce under section 299B of the Trade Act of 1974 with respect to the eligibility of an producer (as defined in section 299(2)) for adjustment assistance may be commenced in the Court of International Trade by a producer that applies for assistance under such Act and is aggrieved by such final determination, or by any other interested party that is aggrieved by such final determination.’.

      (3) TIME FOR COMMENCEMENT OF ACTION- Section 2636(d) of title 28, United States Code, is amended by striking ‘under section 223 of the Trade Act of 1974 or a final determination of the Secretary of Commerce under section 251 or section 271 of such Act’ and inserting ‘under section 231 of the Trade Act of 1974, a final determination of the Secretary of Commerce under section 251 of that Act, a final determination of the Secretary of Agriculture under section 293 of that Act, or a final determination of the Secretary of Commerce under section 299B of that Act’.

      (4) SCOPE AND STANDARD OF REVIEW- Section 2640(c) of title 28, United States Code, is amended by striking ‘under section 223 of the Trade Act of 1974 or any final determination of the Secretary of Commerce under section 251 or section 271 of such Act’ and inserting ‘under section 231 of the Trade Act of 1974, a final determination of the Secretary of Commerce under section 251 of that Act, a final determination of the Secretary of Agriculture under section 293 of that Act, or a final determination of the Secretary of Commerce under section 299B of that Act’.

      (5) RELIEF- Section 2643(c)(2) of title 28, United States Code, is amended by striking ‘under section 223 of the Trade Act of 1974 or any final determination of the Secretary of Commerce under section 251 or section 271 of such Act’ and inserting ‘under section 231 of the Trade Act of 1974, a final determination of the Secretary of Commerce under section 251 of that Act, a final determination of the Secretary of Agriculture under section 293 of that Act, or a final determination of the Secretary of Commerce under section 299B of that Act’.

    (d) AMENDMENT TO THE FOOD STAMP ACT OF 1977- Section 6(o)(1)(B) of the Food Stamp Act of 1977 (7 U.S.C. 2015(o)(1)(B)) is amended by striking ‘section 236’ and inserting ‘section 240’.

TITLE VIII--SAVINGS PROVISIONS AND EFFECTIVE DATE

SEC. 801. SAVINGS PROVISIONS.

    (a) PROCEEDINGS NOT AFFECTED-

      (1) IN GENERAL- The provisions of this division shall not affect any petition for certification for benefits under chapter 2 of title II of the Trade Act of 1974 that was in effect on September 30, 2001. Determinations shall be issued, appeals shall be taken therefrom, and payments shall be made under those determinations, as if this division had not been enacted, and orders issued in any proceeding shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law.

      (2) MODIFICATION OR DISCONTINUANCE- Nothing in this subsection shall be deemed to prohibit the discontinuance or modification of any proceeding under the same terms and conditions and to the same extent that the proceeding could have been discontinued or modified if this division had not been enacted.

    (b) SUITS NOT AFFECTED- The provisions of this division shall not affect any suit commenced before October 1, 2001, and in all those suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this division had not been enacted.

    (c) NONABATEMENT OF ACTIONS- No suit, action, or other proceeding commenced by or against the Federal Government, or by or against any individual in the official capacity of that individual as an officer of the Federal Government, shall abate by reason of enactment of this Act.

SEC. 802. EFFECTIVE DATE.

    (a) IN GENERAL- Except as otherwise provided in sections 401(b), 501(b), and 701(b)(2)(B), titles IX, X, and XI, and subsections (b), (c), and (d) of this section, the amendments made by this division shall apply to--

      (1) 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; and

      (2) certifications for assistance under chapter 4 of title II of the Trade Act of 1974 issued 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

      (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 if 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 September 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 IX--REVENUE PROVISIONS

SEC. 901. CUSTOM USER FEES.

    Section 13031(j)(3) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended by striking ‘September 30, 2003’ and inserting ‘December 31, 2010’.

TITLE X--MISCELLANEOUS PROVISIONS

SEC. 1001. COUNTRY OF ORIGIN LABELING OF FISH AND SHELLFISH PRODUCTS.

    (a) DEFINITIONS- In this section:

      (1) COVERED COMMODITY- The term ‘covered commodity’ means--

        (A) a perishable agricultural commodity; and

        (B) any fish or shellfish, and any fillet, steak, nugget, or any other flesh from fish or shellfish, whether fresh, chilled, frozen, canned, smoked, or otherwise preserved.

      (2) FOOD SERVICE ESTABLISHMENT- The term ‘food service establishment’ means a restaurant, cafeteria, lunch room, food stand, saloon, tavern, bar, lounge, or other similar facility operated as an enterprise engaged in the business of selling food to the public.

      (3) PERISHABLE AGRICULTURAL COMMODITY; RETAILER- The terms ‘perishable agricultural commodity’ and ‘retailer’ have the meanings given the terms in section 1(b) of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499a(b)).

      (4) SECRETARY- The term ‘Secretary’ means the Secretary of Agriculture, acting through the Agricultural Marketing Service.

    (b) NOTICE OF COUNTRY OF ORIGIN-

      (1) REQUIREMENT- Except as provided in paragraph (3), a retailer of a covered commodity shall inform consumers, at the final point of sale of the covered commodity to consumers, of the country of origin of the covered commodity.

      (2) UNITED STATES COUNTRY OF ORIGIN- A retailer of a covered commodity may designate the covered commodity as having a United States country of origin only if the covered commodity is exclusively harvested and processed in the United States, or in the case of farm-raised fish and shellfish, is hatched, raised, harvested, and processed in the United States.

      (3) EXEMPTION FOR FOOD SERVICE ESTABLISHMENTS- Paragraph (1) shall not apply to a covered commodity if the covered commodity is prepared or served in a food service establishment, and--

        (A) offered for sale or sold at the food service establishment in normal retail quantities; or

        (B) served to consumers at the food service establishment.

    (c) METHOD OF NOTIFICATION-

      (1) IN GENERAL- The information required by subsection (b) may be provided to consumers by means of a label, stamp, mark, placard, or other clear and visible sign on the covered commodity or on the package, display, holding unit, or bin containing the covered commodity at the final point of sale to consumers.

      (2) LABELED COMMODITIES- If the covered commodity is already individually labeled for retail sale regarding country of origin, the retailer shall not be required to provide any additional information to comply with this section.

    (d) AUDIT VERIFICATION SYSTEM- The Secretary may require that any person that prepares, stores, handles, or distributes a covered commodity for retail sale maintain a verifiable recordkeeping audit trail that will permit the Secretary to ensure compliance with the regulations promulgated under subsection (g).

    (e) INFORMATION- Any person engaged in the business of supplying a covered commodity to a retailer shall provide information to the retailer indicating the country of origin of the covered commodity.

    (f) ENFORCEMENT-

      (1) IN GENERAL- Each Federal agency having jurisdiction over retailers of covered commodities shall, at such time as the necessary regulations are adopted under subsection (g), adopt measures intended to ensure that the requirements of this section are followed by affected retailers.

      (2) VIOLATION- A violation of subsection (b) shall be treated as a violation under the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.).

    (g) REGULATIONS-

      (1) IN GENERAL- The Secretary may promulgate such regulations as are necessary to carry out this section within 1 year after the date of enactment of this Act.

      (2) PARTNERSHIPS WITH STATES- In promulgating the regulations, the Secretary shall, to the maximum extent practicable, enter into partnerships with States that have the enforcement infrastructure necessary to carry out this section.

    (h) APPLICATION- This section shall apply to the retail sale of a covered commodity beginning on the date that is 180 days after the date of enactment of this Act.

SEC. 1002. SUGAR POLICY.

    (a) FINDINGS- Congress finds that--

      (1) the tariff-rate quotas imposed on imports of sugar, syrups and sugar-containing products under chapters 17, 18, 19, and 21 of the Harmonized Tariff Schedule of the United States are an essential element of United States sugar policy;

      (2) circumvention of the tariff-rate quotas will, if unchecked, make it impossible to achieve the objectives of United States sugar policy;

      (3) the tariff-rate quotas have been circumvented frequently, defeating the purposes of United States sugar policy and causing disruption to the United States market for sweeteners, injury to domestic growers, refiners, and processors of sugar, and adversely affecting legitimate exporters of sugar to the United States;

      (4) it is essential to United States sugar policy that the tariff-rate quotas be enforced and that deceptive practices be prevented, including the importation of products with no commercial use and failure to disclose all relevant information to the United States Customs Service; and

      (5) unless action is taken to prevent circumvention, circumvention of the tariff-rate quotas will continue and will ultimately destroy United States sugar policy.

    (b) POLICY- It is the policy of the United States to maintain the integrity of the tariff-rate quotas on sugars, syrups, and sugar-containing products by stopping circumvention as soon as it becomes apparent. It is also the policy of the United States that products not used to circumvent the tariff-rate quotas, such as molasses used for animal feed or for rum, not be affected by any action taken pursuant to this Act.

    (c) IDENTIFICATION OF IMPORTS-

      (1) IDENTIFICATION- Not later than 30 days after the date of enactment of this Act, and on a regular basis thereafter, the Secretary of Agriculture shall--

        (A) identify imports of articles that are circumventing tariff-rate quotas on sugars, syrups, or sugar-containing products imposed under chapter 17, 18, 19, or 21 of the Harmonized Tariff Schedule of the United States; and

        (B) report to the President the articles found to be circumventing the tariff-rate quotas.

      (2) ACTION BY PRESIDENT- Upon receiving the report from the Secretary of Agriculture, the President shall, by proclamation, include any article identified by the Secretary in the appropriate tariff-rate quota provision of the Harmonized Tariff Schedule.

TITLE XI--CUSTOMS REAUTHORIZATION

SEC. 1101. SHORT TITLE.

    This title may be cited as the ‘Customs Border Security Act of 2002’.

Subtitle A--United States Customs Service

CHAPTER 1--DRUG ENFORCEMENT AND OTHER NONCOMMERCIAL AND COMMERCIAL OPERATIONS

SEC. 1111. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMERCIAL OPERATIONS, COMMERCIAL OPERATIONS, AND AIR AND MARINE INTERDICTION.

    (a) NONCOMMERCIAL OPERATIONS- Section 301(b)(1) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)) is amended--

      (1) in subparagraph (A) to read as follows:

        ‘(A) $886,513,000 for fiscal year 2003.’; and

      (2) in subparagraph (B) to read as follows:

        ‘(B) $909,471,000 for fiscal year 2004.’.

    (b) COMMERCIAL OPERATIONS-

      (1) IN GENERAL- Section 301(b)(2)(A) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(2)(A)) is amended--

        (A) in clause (i) to read as follows:

        ‘(i) $1,603,482,000 for fiscal year 2003.’; and

        (B) in clause (ii) to read as follows:

        ‘(ii) $1,645,009,000 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 Procedural 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 Automated Commercial Environment computer system.

      (3) REPORTS- Not later than 90 days after the date of enactment of this Act, and not later than 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 Agreements 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) in subparagraph (A) to read as follows:

        ‘(A) $181,860,000 for fiscal year 2003.’; and

      (2) in subparagraph (B) to read as follows:

        ‘(B) $186,570,000 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:

    ‘(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 Committee 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. 1112. ANTITERRORIST AND ILLICIT NARCOTICS DETECTION EQUIPMENT 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 Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by section 1111(a) of this title, $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 transmission 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 inspection 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.

        (M) $180,000 for 36 AM traffic information radio stations, 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 transponders 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 targeting 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 transmission 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 detectors 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 transmission 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 Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(B)), as amended by section 1111(a) of this title, $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 301(b)(1)(A) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by section 1111(a) of this title, 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 provision of this section, the Commissioner of Customs may reallocate 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. 1113. 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, performance indicators, and 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 sections 1121 of this title.

CHAPTER 2--CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE

SEC. 1121. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAM TO PREVENT CHILD PORNOGRAPHY/CHILD SEXUAL EXPLOITATION.

    (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.

CHAPTER 3--MISCELLANEOUS PROVISIONS

SEC. 1131. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED STATES-CANADA BORDER.

    Of the amount made available for fiscal year 2003 under paragraphs (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 1111 of this title, $25,000,000 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. 1132. 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 enactment of this Act, the Commissioner of Customs 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).

SEC. 1133. 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 enactment of this Act, the Commissioner of Customs 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).

SEC. 1134. 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.

      (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 identification of expenses based on any other appropriate classification necessary to provide for an accurate and complete accounting of the expenses.

    (b) REPORTS- Beginning on the date of 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. 1135. STUDY AND REPORT RELATING TO TIMELINESS OF PROSPECTIVE 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 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 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. 1136. 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 Reconciliation 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 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. 1137. 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 positions 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 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. 1141. 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 Secretary 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 directly respond to the national emergency or specific threat.

    ‘(2) Notwithstanding any other provision of law, the Commissioner of Customs, when necessary to respond to a specific threat to human life or national interests, is authorized to close temporarily 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. 1142. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR CARGO AND PASSENGERS.

    (a) CARGO INFORMATION-

      (1) IN GENERAL- Section 431(b) of the Tariff Act of 1930 (19 U.S.C. 1431(b)) is amended--

        (A) in the first sentence, by striking ‘Any manifest’ and inserting ‘(1) Any manifest’; and

        (B) by adding at the end the following:

    ‘(2) In addition to any other requirement under this section, for each land, air, or vessel carrier required to make entry or obtain clearance under the customs laws of the United States, the pilot, the master, operator, or owner of such carrier (or the authorized agent of such operator or owner) shall provide by electronic transmission cargo manifest information in advance of such entry or clearance in such manner, time, and form as prescribed under regulations by the Secretary. The Secretary may exclude any class of land, air, or vessel carrier for which the Secretary concludes the requirements of this subparagraph are not necessary.’.

      (2) CONFORMING AMENDMENTS- Subparagraphs (A) and (C) of section 431(d)(1) of such Act are each amended by inserting before the semicolon ‘or subsection (b)(2)’.

    (b) PASSENGER INFORMATION- Part II of title IV of the Tariff Act of 1930 (19 U.S.C. 1431 et seq.) is amended by inserting after section 431 the following:

‘SEC. 432. PASSENGER AND CREW MANIFEST INFORMATION REQUIRED FOR LAND, AIR, OR VESSEL CARRIERS.

    ‘(a) IN GENERAL- For every person arriving or departing on a land, air, or vessel carrier required to make entry or obtain clearance under the customs laws of the United States, the pilot, the master, operator, or owner of such carrier (or the authorized agent of such operator or owner) shall provide by electronic transmission manifest information described in subsection (b) in advance of such entry or clearance in such manner, time, and form as prescribed under regulations by the Secretary.

    ‘(b) INFORMATION DESCRIBED- The information described in this subsection shall include for each person described in subsection (a), the person’s--

      ‘(1) full name;

      ‘(2) date of birth and citizenship;

      ‘(3) gender;

      ‘(4) passport number and country of issuance;

      ‘(5) United States visa number or resident alien card number, as applicable;

      ‘(6) passenger name record; and

      ‘(7) such additional information that the Secretary, by regulation, determines is reasonably necessary to ensure aviation and maritime safety pursuant to the laws enforced or administered by the Customs Service.’.

    (c) DEFINITION- Section 401 of the Tariff Act of 1930 (19 U.S.C. 1401) is amended by adding at the end the following:

    ‘(t) The term ‘land, air, or vessel carrier’ means a land, air, or vessel carrier, as the case may be, that transports goods or passengers for payment or other consideration, including money or services rendered.’.

    (d) EFFECTIVE DATE- The amendments made by this section shall take effect beginning 45 days after the date of enactment of this Act.

SEC. 1143. BORDER SEARCH AUTHORITY FOR CERTAIN CONTRABAND IN OUTBOUND MAIL.

    (a) IN GENERAL- The Tariff Act of 1930 is amended by inserting after section 582 the following:

‘SEC. 583. EXAMINATION OF OUTBOUND MAIL.

    ‘(a) EXAMINATION-

      ‘(1) IN GENERAL- For purposes of ensuring compliance with the Customs laws of the United States and other laws enforced by the Customs Service, including the provisions of law described in paragraph (2), a Customs officer may, subject to the provisions of this section, stop and search at the border, without a search warrant, mail of domestic origin transmitted for export by the United States Postal Service and foreign mail transiting the United States that is being imported or exported by the United States Postal Service.

      ‘(2) PROVISIONS OF LAW DESCRIBED- The provisions of law described in this paragraph are the following:

        ‘(A) Section 5316 of title 31, United States Code (relating to reports on exporting and importing monetary instruments).

        ‘(B) Sections 1461, 1463, 1465, and 1466, and chapter 110 of title 18, United States Code (relating to obscenity and child pornography).

        ‘(C) Section 1003 of the Controlled Substances Import and Export Act (relating to exportation of controlled substances) (21 U.S.C. 953).

        ‘(D) The Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.).

        ‘(E) Section 38 of the Arms Export Control Act (22 U.S.C. 2778).

        ‘(F) The International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

    ‘(b) SEARCH OF MAIL NOT SEALED AGAINST INSPECTION AND OTHER MAIL- Mail not sealed against inspection under the postal laws and regulations of the United States, mail which bears a Customs declaration, and mail with respect to which the sender or addressee has consented in writing to search, may be searched by a Customs officer.

    ‘(c) SEARCH OF MAIL SEALED AGAINST INSPECTION WEIGHING IN EXCESS OF 16 OUNCES-

    ‘(1) IN GENERAL- Mail weighing in excess of 16 ounces sealed against inspection under the postal laws and regulations of the United States may be searched by a Customs officer, subject to paragraph (2), if there is reasonable cause to suspect that such mail contains one or more of the following:

      ‘(A) Monetary instruments, as defined in section 1956 of title 18, United States Code.

      ‘(B) A weapon of mass destruction, as defined in section 2332a(b) of title 18, United States Code.

      ‘(C) A drug or other substance listed in schedule I, II, III, or IV in section 202 of the Controlled Substances Act (21 U.S.C. 812).

      ‘(D) National defense and related information transmitted in violation of any of sections 793 through 798 of title 18, United States Code.

      ‘(E) Merchandise mailed in violation of section 1715 or 1716 of title 18, United States Code.

      ‘(F) Merchandise mailed in violation of any provision of chapter 71 (relating to obscenity) or chapter 110 (relating to sexual exploitation and other abuse of children) of title 18, United States Code.

      ‘(G) Merchandise mailed in violation of the Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.).

      ‘(H) Merchandise mailed in violation of section 38 of the Arms Export Control Act (22 U.S.C. 2778).

      ‘(I) Merchandise mailed in violation of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

      ‘(J) Merchandise mailed in violation of the Trading with the Enemy Act (50 U.S.C. App. 1 et seq.).

      ‘(K) Merchandise subject to any other law enforced by the Customs Service.

      ‘(2) LIMITATION- No person acting under the authority of paragraph (1) shall read, or authorize any other person to read, any correspondence contained in mail sealed against inspection unless prior to so reading--

        ‘(A) a search warrant has been issued pursuant to rule 41 of the Federal Rules of Criminal Procedure; or

        ‘(B) the sender or addressee has given written authorization for such reading.

    ‘(d) SEARCH OF MAIL SEALED AGAINST INSPECTION WEIGHING 16 OUNCES OR LESS- Notwithstanding any other provision of this section, subsection (a)(1) shall not apply to mail weighing 16 ounces or less sealed against inspection under the postal laws and regulations of the United States.’.

    (b) CERTIFICATION BY SECRETARY- Not later than 3 months after the date of enactment of this section, the Secretary of State shall determine whether the application of section 583 of the Tariff Act of 1930 to foreign mail transiting the United States that is imported or exported by the United States Postal Service is being handled in a manner consistent with international law and any international obligation of the United States. Section 583 of such Act shall not apply to such foreign mail unless the Secretary certifies to Congress that the application of such section 583 is consistent with international law and any international obligation of the United States.

    (c) EFFECTIVE DATE-

      (1) IN GENERAL- Except as provided in paragraph (2), this section and the amendments made by this section shall take effect on the date of enactment of this Act.

      (2) CERTIFICATION WITH RESPECT TO FOREIGN MAIL- The provisions of section 583 of the Tariff Act of 1930 relating to foreign mail transiting the United States that is imported or exported by the United States Postal Service shall not take effect until the Secretary of State certifies to Congress, pursuant to subsection (b), that the application of such section 583 is consistent with international law and any international obligation of the United States.

SEC. 1144. AUTHORIZATION OF APPROPRIATIONS FOR REESTABLISHMENT OF CUSTOMS OPERATIONS IN NEW YORK CITY.

    (a) AUTHORIZATION OF APPROPRIATIONS-

      (1) IN GENERAL- There is authorized to be appropriated for the reestablishment of operations of the Customs Service in New York, New York, such sums as may be necessary for fiscal year 2003.

      (2) OPERATIONS DESCRIBED- The operations referred to in paragraph (1) include, but are not limited to, the following:

        (A) Operations relating to the Port Director of New York City, the New York Customs Management Center (including the Director of Field Operations), and the Special Agent-In-Charge for New York.

        (B) Commercial operations, including textile enforcement operations and salaries and expenses of--

          (i) trade specialists who determine the origin and value of merchandise;

          (ii) analysts who monitor the entry data into the United States of textiles and textile products; and

          (iii) Customs officials who work with foreign governments to examine textile makers and verify entry information.

    (b) AVAILABILITY- Amounts appropriated pursuant to the authorization of appropriations under subsection (a) are authorized to remain available until expended.

CHAPTER 5--TEXTILE TRANSSHIPMENT PROVISIONS

SEC. 1151. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONITORING BY CUSTOMS SERVICE.

    (a) GAO AUDIT- The Comptroller General of the United States shall conduct an audit of the system established and carried out by the Customs Service to monitor textile transshipment.

    (b) REPORT- Not later than 9 months after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Ways and Means of the House of Representatives and Committee on Finance of the Senate a report that contains the results of the study conducted under subsection (a), including recommendations for improvements to the transshipment monitoring system if applicable.

    (c) TRANSSHIPMENT DESCRIBED- Transshipment within the meaning of this section has occurred when preferential treatment under any provision of law has been claimed for a textile or apparel article on the basis of material false information concerning the country of origin, manufacture, processing, or assembly of the article or any of its components. For purposes of the preceding sentence, false information is material if disclosure of the true information would mean or would have meant that the article is or was ineligible for preferential treatment under the provision of law in question.

SEC. 1152. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE TRANSSHIPMENT ENFORCEMENT OPERATIONS.

    (a) AUTHORIZATION OF APPROPRIATIONS-

      (1) IN GENERAL- There is authorized to be appropriated for textile transshipment enforcement operations of the Customs Service $9,500,000 for fiscal year 2003.

      (2) AVAILABILITY- Amounts appropriated pursuant to the authorization of appropriations under paragraph (1) are authorized to remain available until expended.

    (b) USE OF FUNDS- Of the amount appropriated pursuant to the authorization of appropriations under subsection (a), the following amounts are authorized to be made available for the following purposes:

      (1) IMPORT SPECIALISTS- $1,463,000 for 21 Customs import specialists to be assigned to selected ports for documentation review to support detentions and exclusions and 1 additional Customs import specialist assigned to the Customs headquarters textile program to administer the program and provide oversight.

      (2) INSPECTORS- $652,080 for 10 Customs inspectors to be assigned to selected ports to examine targeted high-risk shipments.

      (3) INVESTIGATORS- (A) $1,165,380 for 10 investigators to be assigned to selected ports to investigate instances of smuggling, quota and trade agreement circumvention, and use of counterfeit visas to enter inadmissible goods.

      (B) $149,603 for 1 investigator to be assigned to Customs headquarters textile program to coordinate and ensure implementation of textile production verification team results from an investigation perspective.

      (4) INTERNATIONAL TRADE SPECIALISTS- $226,500 for 3 international trade specialists to be assigned to Customs headquarters to be dedicated to illegal textile transshipment policy issues and other free trade agreement enforcement issues.

      (5) PERMANENT IMPORT SPECIALISTS FOR HONG KONG- $500,000 for 2 permanent import specialist positions and $500,000 for 2 investigators to be assigned to Hong Kong to work with Hong Kong and other government authorities in Southeast Asia to assist such authorities pursue proactive enforcement of bilateral trade agreements.

      (6) VARIOUS PERMANENT TRADE POSITIONS- $3,500,000 for the following:

        (A) 2 permanent positions to be assigned to the Customs attache office in Central America to address trade enforcement issues for that region.

        (B) 2 permanent positions to be assigned to the Customs attache office in South Africa to address trade enforcement issues pursuant to the African Growth and Opportunity Act (title I of Public Law 106-200).

        (C) 4 permanent positions to be assigned to the Customs attache office in Mexico to address the threat of illegal textile transshipment through Mexico and other related issues under the North American Free Trade Agreement Act.

        (D) 2 permanent positions to be assigned to the Customs attache office in Seoul, South Korea, to address the trade issues in the geographic region.

        (E) 2 permanent positions to be assigned to the proposed Customs attache office in New Delhi, India, to address the threat of illegal textile transshipment and other trade enforcement issues.

        (F) 2 permanent positions to be assigned to the Customs attache office in Rome, Italy, to address trade enforcement issues in the geographic region, including issues under free trade agreements with Jordan and Israel.

      (7) ATTORNEYS- $179,886 for 2 attorneys for the Office of the Chief Counsel of the Customs Service to pursue cases regarding illegal textile transshipment.

      (8) AUDITORS- $510,000 for 6 Customs auditors to perform internal control reviews and document and record reviews of suspect importers.

      (9) ADDITIONAL TRAVEL FUNDS- $250,000 for deployment of additional textile production verification teams to sub-Saharan Africa.

      (10) TRAINING- (A) $75,000 for training of Customs personnel.

      (B) $200,000 for training for foreign counterparts in risk management analytical techniques and for teaching factory inspection techniques, model law Development, and enforcement techniques.

      (11) OUTREACH- $60,000 for outreach efforts to United States importers.

SEC. 1153. IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPORTUNITY ACT.

    Of the amount made available for fiscal year 2003 under section 301(b)(2)(A) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(2)(A)), as amended by section 1111(b)(1) of this title, $1,317,000 shall be available until expended for the Customs Service to provide technical assistance to help sub-Saharan Africa countries develop and implement effective visa and anti-transshipment systems as required by the African Growth and Opportunity Act (title I of Public Law 106-200), as follows:

      (1) TRAVEL FUNDS- $600,000 for import specialists, special agents, and other qualified Customs personnel to travel to sub-Saharan Africa countries to provide technical assistance in developing and implementing effective visa and anti-transshipment systems.

      (2) IMPORT SPECIALISTS- $266,000 for 4 import specialists to be assigned to Customs headquarters to be dedicated to providing technical assistance to sub-Saharan African countries for developing and implementing effective visa and anti-transshipment systems.

      (3) DATA RECONCILIATION ANALYSTS- $151,000 for 2 data reconciliation analysts to review apparel shipments.

      (4) SPECIAL AGENTS- $300,000 for 2 special agents to be assigned to Customs headquarters to be available to provide technical assistance to sub-Saharan African countries in the performance of investigations and other enforcement initiatives.

Subtitle B--Office of the United States Trade Representative

SEC. 1161. AUTHORIZATION OF APPROPRIATIONS.

    (a) IN GENERAL- Section 141(g)(1) of the Trade Act of 1974 (19 U.S.C. 2171(g)(1)) is amended--

      (1) in subparagraph (A)--

        (A) in the matter preceding clause (i), by striking ‘not to exceed’;

        (B) in clause (i) to read as follows:

      ‘(i) $30,000,000 for fiscal year 2003.’; and

        (C) in clause (ii) to read as follows:

      ‘(ii) $31,000,000 for fiscal year 2004.’; and

      (2) in subparagraph (B)--

        (A) in clause (i), by adding ‘and’ at the end;

        (B) by striking clause (ii); and

        (C) by redesignating clause (iii) as clause (ii).

    (b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS- Section 141(g) of the Trade Act of 1974 (19 U.S.C. 2171(g)) is amended by adding at the end the following:

    ‘(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 United States Trade Representative shall submit to the Committee 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 Office to carry out its functions.’.

    (c) ADDITIONAL STAFF FOR OFFICE OF ASSISTANT U.S. TRADE REPRESENTATIVE FOR CONGRESSIONAL AFFAIRS-

      (1) IN GENERAL- There is authorized to be appropriated such sums as may be necessary for fiscal year 2003 for the salaries and expenses of two additional legislative specialist employee positions within the Office of the Assistant United States Trade Representative for Congressional Affairs.

      (2) AVAILABILITY- Amounts appropriated pursuant to the authorization of appropriations under paragraph (1) are authorized to remain available until expended.

Subtitle C--United States International Trade Commission

SEC. 1171. AUTHORIZATION OF APPROPRIATIONS.

    (a) IN GENERAL- Section 330(e)(2)(A) of the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended--

      (1) in clause (i) to read as follows:

      ‘(i) $51,400,000 for fiscal year 2003.’; and

      (2) in clause (ii) to read as follows:

      ‘(ii) $53,400,000 for fiscal year 2004.’.

    (b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS- Section 330(e) of the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended by adding at the end the following:

    ‘(4) 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 Commission shall submit to the Committee 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 Commission to carry out its functions.’.

Subtitle D--Other Trade Provisions

SEC. 1181. INCREASE IN AGGREGATE VALUE OF ARTICLES EXEMPT FROM DUTY ACQUIRED ABROAD BY UNITED STATES RESIDENTS.

    (a) IN GENERAL- Subheading 9804.00.65 of the Harmonized Tariff Schedule of the United States is amended in the article description column by striking ‘$400’ and inserting ‘$800’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect 90 days after the date of enactment of this Act.

SEC. 1182. REGULATORY AUDIT PROCEDURES.

    Section 509(b) of the Tariff Act of 1930 (19 U.S.C. 1509(b)) is amended by adding at the end the following:

      ‘(6)(A) If during the course of any audit concluded under this subsection, the Customs Service identifies overpayments of duties or fees or over-declarations of quantities or values that are within the time period and scope of the audit that the Customs Service has defined, then in calculating the loss of revenue or monetary penalties under section 592, the Customs Service shall treat the overpayments or over-declarations on finally liquidated entries as an offset to any underpayments or underdeclarations also identified on finally liquidated entries if such overpayments or over-declarations were not made by the person being audited for the purpose of violating any provision of law.

      ‘(B) Nothing in this paragraph shall be construed to authorize a refund not otherwise authorized under section 520.’.

Subtitle E--Sense of Senate

SEC. 1191. SENSE OF SENATE.

    It is the sense of the Senate that fees collected for certain customs services (commonly referred to as ‘customs user fees’) provided for in section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c) may be used only for the operations and programs of the United States Customs Service.

DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY

TITLE XXI--TRADE PROMOTION AUTHORITY

SEC. 2101. SHORT TITLE; FINDINGS.

    (a) SHORT TITLE- This title may be cited as the ‘Bipartisan Trade Promotion Authority Act of 2002’.

    (b) FINDINGS- Congress makes the following findings:

      (1) The expansion of international trade is vital to the national security of the United States. Trade is critical to the economic growth and strength of the United States and to its leadership in the world. Stable trading relationships promote security and prosperity. Trade agreements today serve the same purposes that security pacts played during the Cold War, binding nations together through a series of mutual rights and obligations. Leadership by the United States in international trade fosters open markets, democracy, and peace throughout the world.

      (2) The national security of the United States depends on its economic security, which in turn is founded upon a vibrant and growing industrial base. Trade expansion has been the engine of economic growth. Trade agreements maximize opportunities for the critical sectors and building blocks of the economy of the United States, such as information technology, telecommunications and other leading technologies, basic industries, capital equipment, medical equipment, services, agriculture, environmental technology, and intellectual property. Trade will create new opportunities for the United States and preserve the unparalleled strength of the United States in economic, political, and military affairs. The United States, secured by expanding trade and economic opportunities, will meet the challenges of the twenty-first century.

      (3) Support for continued trade expansion requires that dispute settlement procedures under international trade agreements not add to or diminish the rights and obligations provided in such agreements. Nevertheless, in several cases, dispute settlement panels and the WTO Appellate Body have added to obligations and diminished rights of the United States under WTO Agreements. In particular, dispute settlement panels and the Appellate Body have--

        (A) given insufficient deference to the expertise and fact-finding of the Department of Commerce and the United States International Trade Commission;

        (B) imposed an obligation concerning the causal relationship between increased imports into the United States and serious injury to domestic industry necessary to support a safeguard measure that is different from the obligation set forth in the applicable WTO Agreements;

        (C) imposed an obligation concerning the exclusion from safeguards measures of products imported from countries party to a free trade agreement that is different from the obligation set forth in the applicable WTO Agreements;

        (D) imposed obligations on the Department of Commerce with respect to the use of facts available in antidumping investigations that are different from the obligations set forth in the applicable WTO Agreements; and

        (E) accorded insufficient deference to the Department of Commerce’s methodology for adjusting countervailing duties following the privatization of a subsidized foreign producer.

SEC. 2102. TRADE NEGOTIATING OBJECTIVES.

    (a) OVERALL TRADE NEGOTIATING OBJECTIVES- The overall trade negotiating objectives of the United States for agreements subject to the provisions of section 2103 are--

      (1) to obtain more open, equitable, and reciprocal market access;

      (2) to obtain the reduction or elimination of barriers and distortions that are directly related to trade and that decrease market opportunities for United States exports or otherwise distort United States trade;

      (3) to further strengthen the system of international trading disciplines and procedures, including dispute settlement;

      (4) to foster economic growth, raise living standards, and promote full employment in the United States and to enhance the global economy;

      (5) to ensure that trade and environmental policies are mutually supportive and to seek to protect and preserve the environment and enhance the international means of doing so, while optimizing the use of the world’s resources;

      (6) to promote respect for worker rights and the rights of children consistent with core labor standards of the International Labor Organization (as defined in section 2113(2)) and an understanding of the relationship between trade and worker rights;

      (7) to seek provisions in trade agreements under which parties to those agreements strive to ensure that they do not weaken or reduce the protections afforded in domestic environmental and labor laws as an encouragement fortrade; and

      (8) to ensure that trade agreements afford small businesses equal access to international markets, equitable trade benefits, expanded export market opportunities, and provide for the reduction or elimination of trade barriers that disproportionately impact small business.

    (b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES-

      (1) TRADE BARRIERS AND DISTORTIONS- The principal negotiating objectives of the United States regarding trade barriers and other trade distortions are--

        (A) to expand competitive market opportunities for United States exports including motor vehicles and vehicle parts and to obtain fairer and more open conditions of trade by reducing or eliminating tariff and nontariff barriers and policies and practices of foreign governments directly related to trade that decrease market opportunities for United States exports or otherwise distort United States trade; and

        (B) to obtain reciprocal tariff and nontariff barrier elimination agreements, with particular attention to those tariff categories covered in section 111(b) of the Uruguay Round Agreements Act (19 U.S.C. 3521(b)).

      (2) TRADE IN SERVICES- The principal negotiating objective of the United States regarding trade in services is to reduce or eliminate barriers to international trade in services, including regulatory and other barriers that deny national treatment and market access or unreasonably restrict the establishment or operations of service suppliers.

      (3) FOREIGN INVESTMENT- Recognizing that United States law on the whole provides a high level of protection for investment, consistent with or greater than the level required by international law, the principal negotiating objectives of the United States regarding foreign investment are to reduce or eliminate artificial or trade-distorting barriers to trade-related foreign investment, while ensuring that foreign investors in the United States are not accorded greater rights than United States investors in the United States, and to secure for investors important rights comparable to those that would be available under United States legal principles and practice, by--

        (A) reducing or eliminating exceptions to the principle of national treatment;

        (B) freeing the transfer of funds relating to investments;

        (C) reducing or eliminating performance requirements, forced technology transfers, and other unreasonable barriers to the establishment and operation of investments;

        (D) seeking to establish standards for expropriation and compensation for expropriation, consistent with United States legal principles and practice;

        (E) seeking to establish standards for fair and equitable treatment consistent with United States legal principles and practice, including the principle of due process;

        (F) providing meaningful procedures for resolving investment disputes;

        (G) seeking to improve mechanisms used to resolve disputes between an investor and a government through--

          (i) mechanisms to eliminate frivolous claims and to deter the filing of frivolous claims;

          (ii) procedures to ensure the efficient selection of arbitrators and the expeditious disposition of claims;

          (iii) procedures to enhance opportunities for public input into the formulation of government positions; and

          (iv) establishment of a single appellate body to review decisions in investor-to-government disputes and thereby provide coherence to the interpretations of investment provisions in trade agreements; and

        (H) ensuring the fullest measure of transparency in the dispute settlement mechanism, to the extent consistent with the need to protect information that is classified or business confidential, by--

          (i) ensuring that all requests for dispute settlement are promptly made public;

          (ii) ensuring that--

            (I) all proceedings, submissions, findings, and decisions are promptly made public;

            (II) all hearings are open to the public; and

          (iii) establishing a mechanism for acceptance of amicus curiae submissions from businesses, unions, and nongovernmental organizations.

      (4) INTELLECTUAL PROPERTY- The principal negotiating objectives of the United States regarding trade-related intellectual property are--

        (A) to further promote adequate and effective protection of intellectual property rights, including through--

          (i)(I) ensuring accelerated and full implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)), particularly with respect to meeting enforcement obligations under that agreement; and

          (II) ensuring that the provisions of any multilateral or bilateral trade agreement governing intellectual property rights that is entered into by the United States reflect a standard of protection similar to that found in United States law;

          (ii) providing strong protection for new and emerging technologies and new methods of transmitting and distributing products embodying intellectual property;

          (iii) preventing or eliminating discrimination with respect to matters affecting the availability, acquisition, scope, maintenance, use, and enforcement of intellectual property rights;

          (iv) ensuring that standards of protection and enforcement keep pace with technological developments, and in particular ensuring that rightholders have the legal and technological means to control the use of their works through the Internet and other global communication media, and to prevent the unauthorized use of their works; and

          (v) providing strong enforcement of intellectual property rights, including through accessible, expeditious, and effective civil, administrative, and criminal enforcement mechanisms;

        (B) to secure fair, equitable, and nondiscriminatory market access opportunities for United States persons that rely upon intellectual property protection; and

        (C) to respect the Declaration on the TRIPS Agreement and Public Health, adopted by the World Trade Organization at the Fourth Ministerial Conference at Doha, Qatar on November 14, 2001.

      (5) TRANSPARENCY- The principal negotiating objective of the United States with respect to transparency is to obtain wider and broader application of the principle of transparency through--

        (A) increased and more timely public access to information regarding trade issues and the activities of international trade institutions;

        (B) increased openness at the WTO and other international trade fora by increasing public access to appropriate meetings, proceedings, and submissions, including with regard to dispute settlement and investment; and

        (C) increased and more timely public access to all notifications and supporting documentation submitted by parties to the WTO.

      (6) ANTI-CORRUPTION- The principal negotiating objectives of the United States with respect to the use of money or other things of value to influence acts, decisions, or omissions of foreign governments or officials or to secure any improper advantage in a manner affecting trade are--

        (A) to obtain high standards and appropriate domestic enforcement mechanisms applicable to persons from all countries participating in the applicable trade agreement that prohibit such attempts to influence acts, decisions, or omissions of foreign governments; and

        (B) to ensure that such standards do not place United States persons at a competitive disadvantage in international trade.

      (7) IMPROVEMENT OF THE WTO AND MULTILATERAL TRADE AGREEMENTS- The principal negotiating objectives of the United States regarding the improvement of the World Trade Organization, the Uruguay Round Agreements, and other multilateral and bilateral trade agreements are--

        (A) to achieve full implementation and extend the coverage of the World Trade Organization and such agreements to products, sectors, and conditions of trade not adequately covered; and

        (B) to expand country participation in and enhancement of the Information Technology Agreement and other trade agreements.

      (8) REGULATORY PRACTICES- The principal negotiating objectives of the United States regarding the use of government regulation or other practices by foreign governments to provide a competitive advantage to their domestic producers, service providers, or investors and thereby reduce market access for United States goods, services, and investments are--

        (A) to achieve increased transparency and opportunity for the participation of affected parties in the development of regulations;

        (B) to require that proposed regulations be based on sound science, cost-benefit analysis, risk assessment, or other objective evidence;

        (C) to establish consultative mechanisms among parties to trade agreements to promote increased transparency in developing guidelines, rules, regulations, and laws for government procurement and other regulatory regimes; and

        (D) to achieve the elimination of government measures such as price controls and reference pricing which deny full market access for United States products.

      (9) ELECTRONIC COMMERCE- The principal negotiating objectives of the United States with respect to electronic commerce are--

        (A) to ensure that current obligations, rules, disciplines, and commitments under the World Trade Organization apply to electronic commerce;

        (B) to ensure that--

          (i) electronically delivered goods and services receive no less favorable treatment under trade rules and commitments than like products delivered in physical form; and

          (ii) the classification of such goods and services ensures the most liberal trade treatment possible;

        (C) to ensure that governments refrain from implementing trade-related measures that impede electronic commerce;

        (D) where legitimate policy objectives require domestic regulations that affect electronic commerce, to obtain commitments that any such regulations are the least restrictive on trade, nondiscriminatory, and transparent, and promote an open market environment; and

        (E) to extend the moratorium of the World Trade Organization on duties on electronic transmissions.

      (10) RECIPROCAL TRADE IN AGRICULTURE-

        (A) IN GENERAL- The principal negotiating objective of the United States with respect to agriculture is to obtain competitive opportunities for United States exports of agricultural commodities in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports in United States markets and to achieve fairer and more open conditions of trade in bulk, specialty crop, and value-added commodities by--

          (i) reducing or eliminating, by a date certain, tariffs or other charges that decrease market opportunities for United States exports--

            (I) giving priority to those products that are subject to significantly higher tariffs or subsidy regimes of major producing countries; and

            (II) providing reasonable adjustment periods for United States import-sensitive products, in close consultation with the Congress on such products before initiating tariff reduction negotiations;

          (ii) reducing tariffs to levels that are the same as or lower than those in the United States;

          (iii) seeking to eliminate all export subsidies on agricultural commodities while maintaining bona fide food aid and preserving United States agricultural market development and export credit programs that allow the United States to compete with other foreign export promotion efforts;

          (iv) allowing the preservation of programs that support family farms and rural communities but do not distort trade;

          (v) developing disciplines for domestic support programs, so that production that is in excess of domestic food security needs is sold at world prices;

          (vi) eliminating Government policies that create price-depressing surpluses;

          (vii) eliminating state trading enterprises whenever possible;

          (viii) developing, strengthening, and clarifying rules and effective dispute settlement mechanisms to eliminate practices that unfairly decrease United States market access opportunities or distort agricultural markets to the detriment of the United States, particularly with respect to import-sensitive products, including--

            (I) unfair or trade-distorting activities of state trading enterprises and other administrative mechanisms, with emphasis on requiring price transparency in the operation of state trading enterprises and such other mechanisms in order to end cross subsidization, price discrimination, and price undercutting;

            (II) unjustified trade restrictions or commercial requirements, such as labeling, that affect new technologies, including biotechnology;

            (III) unjustified sanitary or phytosanitary restrictions, including those not based on scientific principles in contravention of the Uruguay Round Agreements;

            (IV) other unjustified technical barriers to trade; and

            (V) restrictive rules in the administration of tariff rate quotas;

          (ix) eliminating practices that adversely affect trade in perishable or cyclical products, while improving import relief mechanisms to recognize the unique characteristics of perishable and cyclical agriculture;

          (x) ensuring that the use of import relief mechanisms for perishable and cyclical agriculture are as accessible and timely to growers in the United States as those mechanisms that are used by other countries;

          (xi) taking into account whether a party to the negotiations has failed to adhere to the provisions of already existing trade agreements with the United States or has circumvented obligations under those agreements;

          (xii) taking into account whether a product is subject to market distortions by reason of a failure of a major producing country to adhere to the provisions of already existing trade agreements with the United States or by the circumvention by that country of its obligations under those agreements;

          (xiii) otherwise ensuring that countries that accede to the World Trade Organization have made meaningful market liberalization commitments in agriculture;

          (xiv) taking into account the impact that agreements covering agriculture to which the United States is a party, including the North American Free Trade Agreement, have on the United States agricultural industry;

          (xv) maintaining bona fide food assistance programs and preserving United States market development and export credit programs; and

          (xvi) strive to complete a general multilateral round in the World Trade Organization by January 1, 2005, and seek the broadest market access possible in multilateral, regional, and bilateral negotiations, recognizing the effect that simultaneous sets of negotiations may have on United States import-sensitive commodities (including those subject to tariff-rate quotas).

        (B) CONSULTATION-

          (i) BEFORE COMMENCING NEGOTIATIONS- Before commencing negotiations with respect to agriculture, the United States Trade Representative, in consultation with the Congress, shall seek to develop a position on the treatment of seasonal and perishable agricultural products to be employed in the negotiations in order to develop an international consensus on the treatment of seasonal or perishable agricultural products in investigations relating to dumping and safeguards and in any other relevant area.

          (ii) DURING NEGOTIATIONS- During any negotiations on agricultural subsidies, the United States Trade Representative shall seek to establish the common base year for calculating the Aggregated Measurement of Support (as defined in the Agreement on Agriculture) as the end of each country’s Uruguay Round implementation period, as reported in each country’s Uruguay Round market access schedule.

          (iii) SCOPE OF OBJECTIVE- The negotiating objective provided in subparagraph (A) applies with respect to agricultural matters to be addressed in any trade agreement entered into under section 2103 (a) or (b), including any trade agreement entered into under section 2103 (a) or (b) that provides for accession to a trade agreement to which the United States is already a party, such as the North American Free Trade Agreement and the United States-Canada Free Trade Agreement.

      (11) LABOR AND THE ENVIRONMENT- The principal negotiating objectives of the United States with respect to labor and the environment are--

        (A) to ensure that a party to a trade agreement with the United States does not fail to effectively enforce its environmental or labor laws, through a sustained or recurring course of action or inaction, in a manner affecting trade between the United States and that party after entry into force of a trade agreement between those countries;

        (B) to recognize that parties to a trade agreement retain the right to exercise discretion with respect to investigatory, prosecutorial, regulatory, and compliance matters and to make decisions regarding the allocation of resources to enforcement with respect to other labor or environmental matters determined to have higher priorities, and to recognize that a country is effectively enforcing its laws if a course of action or inaction reflects a reasonable exercise of such discretion, or results from a bona fide decision regarding the allocation of resources and no retaliation may be authorized based on the exercise of these rights or the right to establish domestic labor standards and levels of environmental protection;

        (C) to strengthen the capacity of United States trading partners to promote respect for core labor standards (as defined in section 2113(2));

        (D) to strengthen the capacity of United States trading partners to protect the environment through the promotion of sustainable development;

        (E) to reduce or eliminate government practices or policies that unduly threaten sustainable development;

        (F) to seek market access, through the elimination of tariffs and nontariff barriers, for United States environmental technologies, goods, and services; and

        (G) to ensure that labor, environmental, health, or safety policies and practices of the parties to trade agreements with the United States do not arbitrarily or unjustifiably discriminate against United States exports or serve as disguised barriers to trade.

      (12) HUMAN RIGHTS AND DEMOCRACY- The principal negotiating objective regarding human rights and democracy is to obtain provisions in trade agreements that require parties to those agreements to strive to protect internationally recognized civil, political, and human rights.

      (13) DISPUTE SETTLEMENT AND ENFORCEMENT- The principal negotiating objectives of the United States with respect to dispute settlement and enforcement of trade agreements are--

        (A) to seek provisions in trade agreements providing for resolution of disputes between governments under those trade agreements in an effective, timely, transparent, equitable, and reasoned manner, requiring determinations based on facts and the principles of the agreements, with the goal of increasing compliance with the agreements;

        (B) to seek to strengthen the capacity of the Trade Policy Review Mechanism of the World Trade Organization to review compliance with commitments;

        (C) to seek improved adherence by panels convened under the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes and by the WTO Appellate Body to the standard of review applicable under the WTO Agreement involved in the dispute, including greater deference, where appropriate, to the fact finding and technical expertise of national investigating authorities;

        (D) to seek provisions encouraging the early identification and settlement of disputes through consultation;

        (E) to seek provisions to encourage the provision of trade-expanding compensation if a party to a dispute under the agreement does not come into compliance with its obligations under the agreement;

        (F) to seek provisions to impose a penalty upon a party to a dispute under the agreement that--

          (i) encourages compliance with the obligations of the agreement;

          (ii) is appropriate to the parties, nature, subject matter, and scope of the violation; and

          (iii) has the aim of not adversely affecting parties or interests not party to the dispute while maintaining the effectiveness of the enforcement mechanism; and

        (G) to seek provisions that treat United States principal negotiating objectives equally with respect to--

          (i) the ability to resort to dispute settlement under the applicable agreement;

          (ii) the availability of equivalent dispute settlement procedures; and

          (iii) the availability of equivalent remedies.

      (14) BORDER TAXES- The principal negotiating objective of the United States regarding border taxes is to obtain a revision of the WTO rules with respect to the treatment of border adjustments for internal taxes to redress the disadvantage to countries relying primarily on direct taxes for revenue rather than indirect taxes.

      (15) WTO EXTENDED NEGOTIATIONS- The principal negotiating objectives of the United States regarding trade in civil aircraft are those set forth in section 135(c) of the Uruguay Round Agreements Act (19 U.S.C. 3355(c)) and regarding rules of origin are the conclusion of an agreement described in section 132 of that Act (19 U.S.C. 3552).

      (16) TEXTILE NEGOTIATIONS-

        (A) IN GENERAL- The principal negotiating objectives of the United States with respect to trade in textiles and apparel articles is to obtain competitive opportunities for United States exports of textiles and apparel in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports in United States markets and to achieve fairer and more open conditions of trade in textiles and apparel by--

          (i) reducing to levels that are the same as, or lower than, those in the United States, or eliminating, by a date certain, tariffs or other charges that decrease market opportunities for United States exports of textiles and apparel;

          (ii) eliminating by a date certain non-tariff barriers that decrease market opportunities for United States textile and apparel articles;

          (iii) reducing or eliminating subsidies that decrease market opportunities for United States exports or unfairly distort textile and apparel markets to the detriment of the United States;

          (iv) developing, strengthening, and clarifying rules to eliminate practices that unfairly decrease United States market access opportunities or distort textile and apparel markets to the detriment of the United States;

          (v) taking into account whether a party to the negotiations has failed to adhere to the provisions of already existing trade agreements with the United States or has circumvented obligations under those agreements;

          (vi) taking into account whether a product is subject to market distortions by reason of a failure of a major producing country to adhere to the provisions of already existing trade agreements with the United States or by the circumvention by that country of its obligations under those agreements;

          (vii) otherwise ensuring that countries that accede to the World Trade Organization have made meaningful market liberalization commitments in textiles and apparel; and

          (viii) taking into account the impact that agreements covering textiles and apparel trade to which the United States is already a party are having on the United States textile and apparel industry.

        (B) SCOPE OF OBJECTIVE- The negotiating objectives set forth in subparagraph (A) apply with respect to trade in textile and apparel articles to be addressed in any trade agreement entered into under section 2103 (a) or (b), including any trade agreement entered under section 2103 (a) or (b) that provides for accession to a trade agreement to which the United States is already a party.

      (17) WORST FORMS OF CHILD LABOR- The principal negotiating objectives of the United States regarding the trade-related aspects of the worst forms of child labor are--

        (A) to prevent distortions in the conduct of international trade caused by the use of the worst forms of child labor, in whole or in part, in the production of goods for export in international commerce; and

        (B) to redress unfair and illegitimate competition based upon the use of the worst forms of child labor, in whole or in part, in the production of goods for export in international commerce, including through--

          (i) promoting universal ratification and full compliance by all trading nations with ILO Convention No. 182 Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labor, particularly with respect to meeting enforcement obligations under that Convention and related international agreements;

          (ii) pursuing action under Article XX of GATT 1994 to allow WTO members to restrict imports of goods found to be produced with the worst forms of child labor;

          (iii) seeking commitments by parties to any multilateral or bilateral trade agreement that is entered into by the United States to ensure that national laws reflect international standards regarding prevention of the use of the worst forms of child labor, especially in the conduct of international trade; and

          (iv) seeking commitments by trade agreement parties to vigorously enforce laws prohibiting the use of the worst forms of child labor, especially in the conduct of international trade, through accessible, expeditious, and effective civil, administrative, and criminal enforcement mechanisms.

    (c) PROMOTION OF CERTAIN PRIORITIES- In order to address and maintain United States competitiveness in the global economy, the President shall--

      (1) seek greater cooperation between the WTO and the ILO;

      (2) seek to establish consultative mechanisms among parties to trade agreements to strengthen the capacity of United States trading partners to promote respect for core labor standards (as defined in section 2113(2)), and report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the content and operation of such mechanisms;

      (3) seek to establish consultative mechanisms among parties to trade agreements to strengthen the capacity of United States trading partners to develop and implement standards for the protection of the environment and human health based on sound science, and report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the content and operation of such mechanisms;

      (4) conduct environmental reviews of future trade and investment agreements, consistent with Executive Order 13141 of November 16, 1999 and the relevant guidelines, and report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on such reviews;

      (5) review the impact of future trade agreements on United States employment, modeled after Executive Order 13141, taking into account the impact on job security, the level of compensation of new jobs and existing jobs, the displacement of employment, and the regional distribution of employment, utilizing experience from previous trade agreements and alternative models of employment analysis, report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on such review, and make that report available to the public;

      (6) take into account other legitimate United States domestic objectives including, but not limited to, the protection of legitimate health or safety, essential security, and consumer interests and the law and regulations related thereto;

      (7) have the Secretary of Labor consult with any country seeking a trade agreement with the United States concerning that country’s labor laws and provide technical assistance to that country if needed;

      (8) in connection with any trade negotiations entered into under this Act, the President shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a meaningful labor rights report of the country, or countries, with respect to which the President is negotiating, on a time frame determined in accordance with section 2107(b)(2)(E);

      (9)(A) preserve the ability of the United States to enforce rigorously its trade laws, including the antidumping, countervailing duty, and safeguard laws, and avoid agreements that lessen the effectiveness of domestic and international disciplines on unfair trade, especially dumping and subsidies, or that lessen the effectiveness of domestic and international safeguard provisions, in order to ensure that United States workers, agricultural producers, and firms can compete fully on fair terms and enjoy the benefits of reciprocal trade concessions; and

      (B) address and remedy market distortions that lead to dumping and subsidization, including overcapacity, cartelization, and market-access barriers.

      (10) continue to promote consideration of multilateral environmental agreements and consult with parties to such agreements regarding the consistency of any such agreement that includes trade measures with existing environmental exceptions under Article XX of the GATT 1994;

      (11) report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, not later than 12 months after the imposition of a penalty or remedy by the United States permitted by a trade agreement to which this title applies, on the effectiveness of the penalty or remedy applied under United States law in enforcing United States rights under the trade agreement; and

      (12) seek to establish consultative mechanisms among parties to trade agreements to examine the trade consequences of significant and unanticipated currency movements and to scrutinize whether a foreign government engaged in a pattern of manipulating its currency to promote a competitive advantage in international trade.

    The report required under paragraph (11) shall address whether the penalty or remedy was effective in changing the behavior of the targeted party and whether the penalty or remedy had any adverse impact on parties or interests not party to the dispute.

    (d) CONSULTATIONS-

      (1) CONSULTATIONS WITH CONGRESSIONAL ADVISERS- In the course of negotiations conducted under this title, the United States Trade Representative shall consult closely and on a timely basis with, and keep fully apprised of the negotiations, the Congressional Oversight Group convened under section 2107 and all committees of the House of Representatives and the Senate with jurisdiction over laws that would be affected by a trade agreement resulting from the negotiations.

      (2) CONSULTATION BEFORE AGREEMENT INITIALED- In the course of negotiations conducted under this title, the United States Trade Representative shall--

        (A) consult closely and on a timely basis (including immediately before initialing an agreement) with, and keep fully apprised of the negotiations, the congressional advisers for trade policy and negotiations appointed under section 161 of the Trade Act of 1974 (19 U.S.C. 2211), the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the Congressional Oversight Group convened under section 2107; and

        (B) with regard to any negotiations and agreement relating to agricultural trade, also consult closely and on a timely basis (including immediately before initialing an agreement) with, and keep fully apprised of the negotiations, the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

    (e) ADHERENCE TO OBLIGATIONS UNDER URUGUAY ROUND AGREEMENTS- In determining whether to enter into negotiations with a particular country, the President shall take into account the extent to which that country has implemented, or has accelerated the implementation of, its obligations under the Uruguay Round Agreements.

SEC. 2103. TRADE AGREEMENTS AUTHORITY.

    (a) AGREEMENTS REGARDING TARIFF BARRIERS-

      (1) IN GENERAL- Whenever the President determines that one or more existing duties or other import restrictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that the purposes, policies, priorities, and objectives of this title will be promoted thereby, the President--

        (A) may enter into trade agreements with foreign countries before--

          (i) June 1, 2005; or

          (ii) June 1, 2007, if trade authorities procedures are extended under subsection (c); and

        (B) may, subject to paragraphs (2) and (3), proclaim--

          (i) such modification or continuance of any existing duty,

          (ii) such continuance of existing duty-free or excise treatment, or

          (iii) such additional duties,

        as the President determines to be required or appropriate to carry out any such trade agreement.

      The President shall notify the Congress of the President’s intention to enter into an agreement under this subsection.

      (2) LIMITATIONS- No proclamation may be made under paragraph (1) that--

        (A) reduces any rate of duty (other than a rate of duty that does not exceed 5 percent ad valorem on the date of the enactment of this Act) to a rate of duty which is less than 50 percent of the rate of such duty that applies on such date of enactment;

        (B) reduces the rate of duty below that applicable under the Uruguay Round Agreements, on any import sensitive agricultural product; or

        (C) increases any rate of duty above the rate that applied on the date of the enactment of this Act.

      (3) AGGREGATE REDUCTION; EXEMPTION FROM STAGING-

        (A) AGGREGATE REDUCTION- Except as provided in subparagraph (B), the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement entered into under paragraph (1) shall not exceed the aggregate reduction which would have been in effect on such day if--

          (i) a reduction of 3 percent ad valorem or a reduction of one-tenth of the total reduction, whichever is greater, had taken effect on the effective date of the first reduction proclaimed under paragraph (1) to carry out such agreement with respect to such article; and

          (ii) a reduction equal to the amount applicable under clause (i) had taken effect at 1-year intervals after the effective date of such first reduction.

        (B) EXEMPTION FROM STAGING- No staging is required under subparagraph (A) with respect to a duty reduction that is proclaimed under paragraph (1) for an article of a kind that is not produced in the United States. The United States International Trade Commission shall advise the President of the identity of articles that may be exempted from staging under this subparagraph.

      (4) ROUNDING- If the President determines that such action will simplify the computation of reductions under paragraph (3), the President may round an annual reduction by an amount equal to the lesser of--

        (A) the difference between the reduction without regard to this paragraph and the next lower whole number; or

        (B) one-half of 1 percent ad valorem.

      (5) OTHER LIMITATIONS- A rate of duty reduction that may not be proclaimed by reason of paragraph (2) may take effect only if a provision authorizing such reduction is included within an implementing bill provided for under section 2105 and that bill is enacted into law.

      (6) OTHER TARIFF MODIFICATIONS- Notwithstanding paragraphs (1)(B), (2)(A), (2)(C), and (3) through (5), and subject to the consultation and layover requirements of section 115 of the Uruguay Round Agreements Act, the President may proclaim the modification of any duty or staged rate reduction of any duty set forth in Schedule XX, as defined in section 2102(5) of that Act, if the United States agrees to such modification or staged rate reduction in a negotiation for the reciprocal elimination or harmonization of duties under the auspices of the World Trade Organization.

      (7) AUTHORITY UNDER URUGUAY ROUND AGREEMENTS ACT NOT AFFECTED- Nothing in this subsection shall limit the authority provided to the President under section 111(b) of the Uruguay Round Agreements Act (19 U.S.C. 3521(b)).

    (b) AGREEMENTS REGARDING TARIFF AND NONTARIFF BARRIERS-

      (1) IN GENERAL-

        (A) DETERMINATION BY PRESIDENT- Whenever the President determines that--

          (i) one or more existing duties or any other import restriction of any foreign country or the United States or any other barrier to, or other distortion of, international trade unduly burdens or restricts the foreign trade of the United States or adversely affects the United States economy; or

          (ii) the imposition of any such barrier or distortion is likely to result in such a burden, restriction, or effect;

        and that the purposes, policies, priorities, and objectives of this title will be promoted thereby, the President may enter into a trade agreement described in subparagraph (B) during the period described in subparagraph (C).

        (B) AGREEMENT TO REDUCE OR ELIMINATE CERTAIN DISTORTION- The President may enter into a trade agreement under subparagraph (A) with foreign countries providing for--

          (i) the reduction or elimination of a duty, restriction, barrier, or other distortion described in subparagraph (A), or

          (ii) the prohibition of, or limitation on the imposition of, such barrier or other distortion.

        (C) TIME PERIOD- The President may enter into a trade agreement under this paragraph before--

          (i) June 1, 2005; or

          (ii) June 1, 2007, if trade authorities procedures are extended under subsection (c).

      (2) CONDITIONS- A trade agreement may be entered into under this subsection only if such agreement makes progress in meeting the applicable objectives described in section 2102 (a) and (b) and the President satisfies the conditions set forth in section 2104.

      (3) BILLS QUALIFYING FOR TRADE AUTHORITIES PROCEDURES-

        (A) APPLICATION OF EXPEDITED PROCEDURES- The provisions of section 151 of the Trade Act of 1974 (in this title referred to as ‘trade authorities procedures’) apply to a bill of either House of Congress which contains provisions described in subparagraph (B) to the same extent as such section 151 applies to implementing bills under that section. A bill to which this paragraph applies shall hereafter in this title be referred to as an ‘implementing bill’.

        (B) PROVISIONS DESCRIBED- The provisions referred to in subparagraph (A) are--

          (i) a provision approving a trade agreement entered into under this subsection and approving the statement of administrative action, if any, proposed to implement such trade agreement; and

          (ii) if changes in existing laws or new statutory authority are required to implement such trade agreement or agreements, provisions, necessary or appropriate to implement such trade agreement or agreements, either repealing or amending existing laws or providing new statutory authority.

      (4) LIMITATIONS ON TRADE AUTHORITIES PROCEDURES-

        (A) IN GENERAL- Notwithstanding any other provision of law, the provisions of section 151 of the Trade Act of 1974 (trade authorities procedures) shall not apply to any provision in an implementing bill being considered by the Senate that modifies or amends, or requires a modification of, or an amendment to, any law of the United States that provides safeguards from unfair foreign trade practices to United States businesses or workers, including--

          (i) imposition of countervailing and antidumping duties (title VII of the Tariff Act of 1930; 19 U.S.C. 1671 et seq.);

          (ii) protection from unfair methods of competition and unfair acts in the importation of articles (section 337 of the Tariff Act of 1930; 19 U.S.C. 1337);

          (iii) relief from injury caused by import competition (title II of the Trade Act of 1974; 19 U.S.C. 2251 et seq.);

          (iv) relief from unfair trade practices (title III of the Trade Act of 1974; 19 U.S.C. 2411 et seq.); or

          (v) national security import restrictions (section 232 of the Trade Expansion Act of 1962; 19 U.S.C. 1862).

        (B) POINT OF ORDER IN SENATE-

          (i) IN GENERAL- When the Senate is considering an implementing bill, upon a point of order being made by any Senator against any part of the implementing bill that contains material in violation of subparagraph (A), and the point of order is sustained by the Presiding Officer, the part of the implementing bill against which the point of order is sustained shall be stricken from the bill.

          (ii) WAIVERS AND APPEALS-

            (I) WAIVERS- Before the Presiding Officer rules on a point of order described in clause (i), any Senator may move to waive the point of order and the motion to waive shall not be subject to amendment. A point of order described in clause (i) is waived only by the affirmative vote of a majority of the Members of the Senate, duly chosen and sworn.

            (II) APPEALS- After the Presiding Officer rules on a point of order under this subparagraph, any Senator may appeal the ruling of the Presiding Officer on the point of order as it applies to some or all of the provisions on which the Presiding Officer ruled. A ruling of the Presiding Officer on a point of order described in clause (i) is sustained unless a majority of the Members of the Senate, duly chosen and sworn, vote not to sustain the ruling.

            (III) DEBATE- Debate on a motion to waive under subclause (I) or on an appeal of the ruling of the Presiding Officer under subclause (II) shall be limited to 1 hour. The time shall be equally divided between, and controlled by, the majority leader and the minority leader, or their designees.

    (c) EXTENSION DISAPPROVAL PROCESS FOR CONGRESSIONAL TRADE AUTHORITIES PROCEDURES-

      (1) IN GENERAL- Except as provided in section 2105(b)--

        (A) the trade authorities procedures apply to implementing bills submitted with respect to trade agreements entered into under subsection (b) before July 1, 2005; and

        (B) the trade authorities procedures shall be extended to implementing bills submitted with respect to trade agreements entered into under subsection (b) after June 30, 2005, and before July 1, 2007, if (and only if)--

          (i) the President requests such extension under paragraph (2); and

          (ii) neither House of the Congress adopts an extension disapproval resolution under paragraph (5) before June 1, 2005.

      (2) REPORT TO CONGRESS BY THE PRESIDENT- If the President is of the opinion that the trade authorities procedures should be extended to implementing bills described in paragraph (1)(B), the President shall submit to the Congress, not later than March 1, 2005, a written report that contains a request for such extension, together with--

        (A) a description of all trade agreements that have been negotiated under subsection (b) and the anticipated schedule for submitting such agreements to the Congress for approval;

        (B) a description of the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this title, and a statement that such progress justifies the continuation of negotiations; and

        (C) a statement of the reasons why the extension is needed to complete the negotiations.

      (3) OTHER REPORTS TO CONGRESS-

        (A) REPORT BY THE ADVISORY COMMITTEE- The President shall promptly inform the Advisory Committee for Trade Policy and Negotiations established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155) of the President’s decision to submit a report to the Congress under paragraph (2). The Advisory Committee shall submit to the Congress as soon as practicable, but not later than May 1, 2005, a written report that contains--

          (i) its views regarding the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this title; and

          (ii) a statement of its views, and the reasons therefor, regarding whether the extension requested under paragraph (2) should be approved or disapproved.

        (B) REPORT BY ITC- The President shall promptly inform the International Trade Commission of the President’s decision to submit a report to the Congress under paragraph (2). The International Trade Commission shall submit to the Congress as soon as practicable, but not later than May 1, 2005, a written report that contains a review and analysis of the economic impact on the United States of all trade agreements implemented between the date of enactment of this Act and the date on which the President decides to seek an extension requested under paragraph (2).

      (4) STATUS OF REPORTS- The reports submitted to the Congress under paragraphs (2) and (3), or any portion of such reports, may be classified to the extent the President determines appropriate.

      (5) EXTENSION DISAPPROVAL RESOLUTIONS-

        (A) DEFINITION- For purposes of paragraph (1), the term ‘extension disapproval resolution’ means a resolution of either House of the Congress, the sole matter after the resolving clause of which is as follows: ‘That the XXXXX disapproves the request of the President for the extension, under section 2103(c)(1)(B)(i) of the Bipartisan Trade Promotion Authority Act of 2002, of the trade authorities procedures under that Act to any implementing bill submitted with respect to any trade agreement entered into under section 2103(b) of that Act after June 30, 2005.’, with the blank space being filled with the name of the resolving House of the Congress.

        (B) INTRODUCTION- Extension disapproval resolutions--

          (i) may be introduced in either House of the Congress by any member of such House; and

          (ii) shall be referred, in the House of Representatives, to the Committee on Ways and Means and, in addition, to the Committee on Rules.

        (C) APPLICATION OF SECTION 152 OF THE TRADE ACT OF 1974- The provisions of section 152 (d) and (e) of the Trade Act of 1974 (19 U.S.C. 2192 (d) and (e)) (relating to the floor consideration of certain resolutions in the House and Senate) apply to extension disapproval resolutions.

        (D) LIMITATIONS- It is not in order for--

          (i) the Senate to consider any extension disapproval resolution not reported by the Committee on Finance;

          (ii) the House of Representatives to consider any extension disapproval resolution not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules; or

          (iii) either House of the Congress to consider an extension disapproval resolution after June 30, 2005.

    (d) COMMENCEMENT OF NEGOTIATIONS- In order to contribute to the continued economic expansion of the United States, the President shall commence negotiations covering tariff and nontariff barriers affecting any industry, product, or service sector, and expand existing sectoral agreements to countries that are not parties to those agreements, in cases where the President determines that such negotiations are feasible and timely and would benefit the United States. Such sectors include agriculture, commercial services, intellectual property rights, industrial and capital goods, government procurement, information technology products, environmental technology and services, medical equipment and services, civil aircraft, and infrastructure products. In so doing, the President shall take into account all of the principal negotiating objectives set forth in section 2102(b).

SEC. 2104. CONSULTATIONS AND ASSESSMENT.

    (a) NOTICE AND CONSULTATION BEFORE NEGOTIATION- The President, with respect to any agreement that is subject to the provisions of section 2103(b), shall--

      (1) provide, at least 90 calendar days before initiating negotiations, written notice to the Congress of the President’s intention to enter into the negotiations and set forth therein the date the President intends to initiate such negotiations, the specific United States objectives for the negotiations, and whether the President intends to seek an agreement, or changes to an existing agreement;

      (2) before and after submission of the notice, consult regarding the negotiations with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives, such other committees of the House and Senate as the President deems appropriate, and the Congressional Oversight group convened under section 2107; and

      (3) upon the request of a majority of the members of the Congressional Oversight Group under section 2107(c), meet with the Congressional Oversight Group before initiating the negotiations or at any other time concerning the negotiations.

    (b) NEGOTIATIONS REGARDING AGRICULTURE AND FISHING INDUSTRY-

      (1) IN GENERAL- Before initiating or continuing negotiations the subject matter of which is directly related to the subject matter under section 2102(b)(10)(A)(i) with any country, the President shall assess whether United States tariffs on agricultural products that were bound under the Uruguay Round Agreements are lower than the tariffs bound by that country. In addition, the President shall consider whether the tariff levels bound and applied throughout the world with respect to imports from the United States are higher than United States tariffs and whether the negotiation provides an opportunity to address any such disparity. The President shall consult with the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate concerning the results of the assessment, whether it is appropriate for the United States to agree to further tariff reductions based on the conclusions reached in the assessment, and how all applicable negotiating objectives will be met.

      (2) SPECIAL CONSULTATIONS ON IMPORT SENSITIVE PRODUCTS-

        (A) IN GENERAL- Before initiating negotiations with regard to agriculture, and, with respect to the Free Trade Area for the Americas and negotiations with regard to agriculture under the auspices of the World Trade Organization, as soon as practicable after the enactment of this Act, the United States Trade Representative shall--

          (i) identify those agricultural products subject to tariff-rate quotas on the date of enactment of this Act, and agricultural products subject to tariff reductions by the United States as a result of the Uruguay Round Agreements, for which the rate of duty was reduced on January 1, 1995, to a rate which was not less than 97.5 percent of the rate of duty that applied to such article on December 31, 1994;

          (ii) consult with the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate concerning--

            (I) whether any further tariff reductions on the products identified under clause (i) should be appropriate, taking into account the impact of any such tariff reduction on the United States industry producing the product concerned;

            (II) whether the products so identified face unjustified sanitary or phytosanitary restrictions, including those not based on scientific principles in contravention of the Uruguay Round Agreements; and

            (III) whether the countries participating in the negotiations maintain export subsidies or other programs, policies, or practices that distort world trade in such products and the impact of such programs, policies, and practices on United States producers of the products;

          (iii) request that the International Trade Commission prepare an assessment of the probable economic effects of any such tariff reduction on the United States industry producing the product concerned and on the United States economy as a whole; and

          (iv) upon complying with clauses (i), (ii), and (iii), notify the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate of those products identified under clause (i) for which the Trade Representative intends to seek tariff liberalization in the negotiations and the reasons for seeking such tariff liberalization.

        (B) IDENTIFICATION OF ADDITIONAL AGRICULTURAL PRODUCTS- If, after negotiations described in subparagraph (A) are commenced--

          (i) the United States Trade Representative identifies any additional agricultural product described in subparagraph (A)(i) for tariff reductions which were not the subject of a notification under subparagraph (A)(iv), or

          (ii) any additional agricultural product described in subparagraph (A)(i) is the subject of a request for tariff reductions by a party to the negotiations,

        the Trade Representative shall, as soon as practicable, notify the committees referred to in subparagraph (A)(iv) of those products and the reasons for seeking such tariff reductions.

      (3) NEGOTIATIONS REGARDING THE FISHING INDUSTRY- Before initiating, or continuing, negotiations which directly relate to fish or shellfish trade with any country, the President shall consult with the Committee on Ways and Means and the Committee on Resources of the House of Representatives, and the Committee on Finance and the Committee on Commerce, Science, and Transportation of the Senate, and shall keep the Committees apprised of negotiations on an ongoing and timely basis.

    (c) NEGOTIATIONS REGARDING TEXTILES- Before initiating or continuing negotiations the subject matter of which is directly related to textiles and apparel products with any country, the President shall assess whether United States tariffs on textile and apparel products that were bound under the Uruguay Round Agreements are lower than the tariffs bound by that country and whether the negotiation provides an opportunity to address any such disparity. The President shall consult with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate concerning the results of the assessment, whether it is appropriate for the United States to agree to further tariff reductions based on the conclusions reached in the assessment, and how all applicable negotiating objectives will be met.

    (d) CONSULTATION WITH CONGRESS BEFORE AGREEMENTS ENTERED INTO-

      (1) CONSULTATION- Before entering into any trade agreement under section 2103(b), the President shall consult with--

        (A) the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate;

        (B) each other committee of the House and the Senate, and each joint committee of the Congress, which has jurisdiction over legislation involving subject matters which would be affected by the trade agreement; and

        (C) the Congressional Oversight Group convened under section 2107.

      (2) SCOPE- The consultation described in paragraph (1) shall include consultation with respect to--

        (A) the nature of the agreement;

        (B) how and to what extent the agreement will achieve the applicable purposes, policies, priorities, and objectives of this title; and

        (C) the implementation of the agreement under section 2105, including the general effect of the agreement on existing laws.

      (3) REPORT REGARDING UNITED STATES TRADE REMEDY LAWS-

        (A) CHANGES IN CERTAIN TRADE LAWS- The President, at least 90 calendar days before the day on which the President enters into a trade agreement, shall notify the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate in writing of any amendments to title VII of the Tariff Act of 1930 or chapter 1 of title II of the Trade Act of 1974 that the President proposes to include in a bill implementing such trade agreement.

        (B) EXPLANATION- On the date that the President transmits the notification, the President also shall transmit to the Committees a report explaining--

          (i) the President’s reasons for believing that amendments to title VII of the Tariff Act of 1930 or to chapter 1 of title II of the Trade Act of 1974 are necessary to implement the trade agreement; and

          (ii) the President’s reasons for believing that such amendments are consistent with the purposes, policies, and objectives described in section 2102(c)(9).

        (C) REPORT TO HOUSE- Not later than 60 calendar days after the date on which the President transmits the notification described in subparagraph (A), the Chairman and ranking member of the Ways and Means Committee of the House of Representatives, based on consultations with the members of that Committee, shall issue to the House of Representatives a report stating whether the proposed amendments described in the President’s notification are consistent with the purposes, policies, and objectives described in section 2102(c)(9). In the event that the Chairman and ranking member disagree with respect to one or more conclusions, the report shall contain the separate views of the Chairman and ranking member.

        (D) REPORT TO SENATE- Not later than 60 calendar days after the date on which the President transmits the notification described in subparagraph (A), the Chairman and ranking member of the Finance Committee of the Senate, based on consultations with the members of that Committee, shall issue to the Senate a report stating whether the proposed amendments described in the President’s report are consistent with the purposes, policies, and objectives described in section 2102(c)(9). In the event that the Chairman and ranking member disagree with respect to one or more conclusions, the report shall contain the separate views of the Chairman and ranking member.

    (e) ADVISORY COMMITTEE REPORTS- The report required under section 135(e)(1) of the Trade Act of 1974 regarding any trade agreement entered into under section 2103 (a) or (b) of this title shall be provided to the President, the Congress, and the United States Trade Representative not later than 30 days after the date on which the President notifies the Congress under section 2103(a)(1) or 2105(a)(1)(A) of the President’s intention to enter into the agreement.

    (f) ITC ASSESSMENT-

      (1) IN GENERAL- The President, at least 90 calendar days before the day on which the President enters into a trade agreement under section 2103(b), shall provide the International Trade Commission (referred to in this subsection as ‘the Commission’) with the details of the agreement as it exists at that time and request the Commission to prepare and submit an assessment of the agreement as described in paragraph (2). Between the time the President makes the request under this paragraph and the time the Commission submits the assessment, the President shall keep the Commission current with respect to the details of the agreement.

      (2) ITC ASSESSMENT- Not later than 90 calendar days after the President enters into the agreement, the Commission shall submit to the President and the Congress a report assessing the likely impact of the agreement on the United States economy as a whole and on specific industry sectors, including the impact the agreement will have on the gross domestic product, exports and imports, aggregate employment and employment opportunities, the production, employment, and competitive position of industries likely to be significantly affected by the agreement, and the interests of United States consumers.

      (3) REVIEW OF EMPIRICAL LITERATURE- In preparing the assessment, the Commission shall review available economic assessments regarding the agreement, including literature regarding any substantially equivalent proposed agreement, and shall provide in its assessment a description of the analyses used and conclusions drawn in such literature, and a discussion of areas of consensus and divergence between the various analyses and conclusions, including those of the Commission regarding the agreement.

SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS.

    (a) IN GENERAL-

      (1) NOTIFICATION AND SUBMISSION- Any agreement entered into under section 2103(b) shall enter into force with respect to the United States if (and only if)--

        (A) the President, at least 90 calendar days before the day on which the President enters into an agreement--

          (i) notifies the House of Representatives and the Senate of the President’s intention to enter into the agreement, and promptly thereafter publishes notice of such intention in the Federal Register; and

          (ii) transmits to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate the notification and report described in section 2104(d)(3) (A) and (B);

        (B) within 60 days after entering into the agreement, the President submits to the Congress a description of those changes to existing laws that the President considers would be required in order to bring the United States into compliance with the agreement;

        (C) after entering into the agreement, the President submits to the Congress, on a day on which both Houses of Congress are in session, a copy of the final legal text of the agreement, together with--

          (i) a draft of an implementing bill described in section 2103(b)(3);

          (ii) a statement of any administrative action proposed to implement the trade agreement; and

          (iii) the supporting information described in paragraph (2); and

        (D) the implementing bill is enacted into law.

      (2) SUPPORTING INFORMATION- The supporting information required under paragraph (1)(C)(iii) consists of--

        (A) an explanation as to how the implementing bill and proposed administrative action will change or affect existing law; and

        (B) a statement--

          (i) asserting that the agreement makes progress in achieving the applicable purposes, policies, priorities, and objectives of this title; and

          (ii) setting forth the reasons of the President regarding--

            (I) how and to what extent the agreement makes progress in achieving the applicable purposes, policies, and objectives referred to in clause (i);

            (II) whether and how the agreement changes provisions of an agreement previously negotiated;

            (III) how the agreement serves the interests of United States commerce;

            (IV) how the implementing bill meets the standards set forth in section 2103(b)(3);

            (V) how and to what extent the agreement makes progress in achieving the applicable purposes, policies, and objectives referred to in section 2102(c) regarding the promotion of certain priorities; and

            (VI) in the event that the reports described in section 2104(b)(3) (C) and (D) contain any findings that the proposed amendments are inconsistent with the purposes, policies, and objectives described in section 2102(c)(9), an explanation as to why the President believes such findings to be incorrect.

      (3) RECIPROCAL BENEFITS- In order to ensure that a foreign country that is not a party to a trade agreement entered into under section 2103(b) does not receive benefits under the agreement unless the country is also subject to the obligations under the agreement, the implementing bill submitted with respect to the agreement shall provide that the benefits and obligations under the agreement apply only to the parties to the agreement, if such application is consistent with the terms of the agreement. The implementing bill may also provide that the benefits and obligations under the agreement do not apply uniformly to all parties to the agreement, if such application is consistent with the terms of the agreement.

      (4) DISCLOSURE OF COMMITMENTS- Any agreement or other understanding with a foreign government or governments (whether oral or in writing) that--

        (A) relates to a trade agreement with respect to which Congress enacts implementing legislation under trade authorities procedures, and

        (B) is not disclosed to Congress before legislation implementing that agreement is introduced in either House of Congress,

      shall not be considered to be part of the agreement approved by Congress and shall have no force and effect under United States law or in any dispute settlement body.

    (b) LIMITATIONS ON TRADE AUTHORITIES PROCEDURES-

      (1) FOR LACK OF NOTICE OR CONSULTATIONS-

        (A) IN GENERAL- The trade authorities procedures shall not apply to any implementing bill submitted with respect to a trade agreement or trade agreements entered into under section 2103(b) if during the 60-day period beginning on the date that one House of Congress agrees to a procedural disapproval resolution for lack of notice or consultations with respect to such trade agreement or agreements, the other House separately agrees to a procedural disapproval resolution with respect to such trade agreement or agreements.

        (B) PROCEDURAL DISAPPROVAL RESOLUTION- (i) For purposes of this paragraph, the term ‘procedural disapproval resolution’ means a resolution of either House of Congress, the sole matter after the resolving clause of which is as follows: ‘That the President has failed or refused to notify or consult in accordance with the Bipartisan Trade Promotion Authority Act of 2002 on negotiations with respect to XXXXXX and, therefore, the trade authorities procedures under that Act shall not apply to any implementing bill submitted with respect to such trade agreement or agreements.’, with the blank space being filled with a description of the trade agreement or agreements with respect to which the President is considered to have failed or refused to notify or consult.

        (ii) For purposes of clause (i), the President has ‘failed or refused to notify or consult in accordance with the Bipartisan Trade Promotion Authority Act of 2002’ on negotiations with respect to a trade agreement or trade agreements if--

          (I) the President has failed or refused to consult (as the case may be) in accordance with section 2104 or 2105 with respect to the negotiations, agreement, or agreements;

          (II) guidelines under section 2107(b) have not been developed or met with respect to the negotiations, agreement, or agreements;

          (III) the President has not met with the Congressional Oversight Group pursuant to a request made under section 2107(c) with respect to the negotiations, agreement, or agreements; or

          (IV) the agreement or agreements fail to make progress in achieving the purposes, policies, priorities, and objectives of this title.

        (C) PROCEDURES FOR CONSIDERING RESOLUTIONS- (i) Procedural disapproval resolutions--

          (I) in the House of Representatives--

            (aa) may be introduced by any Member of the House;

            (bb) shall be referred to the Committee on Ways and Means and, in addition, to the Committee on Rules; and

            (cc) may not be amended by either Committee; and

          (II) in the Senate--

            (aa) may be introduced by any Member of the Senate.

            (bb) shall be referred to the Committee on Finance; and

            (cc) may not be amended.

        (ii) The provisions of section 152 (d) and (e) of the Trade Act of 1974 (19 U.S.C. 2192 (d) and (e)) (relating to the floor consideration of certain resolutions in the House and Senate) apply to a procedural disapproval resolution introduced with respect to a trade agreement if no other procedural disapproval resolution with respect to that trade agreement has previously been considered under such provisions of section 152 of the Trade Act of 1974 in that House of Congress during that Congress.

        (iii) It is not in order for the House of Representatives to consider any procedural disapproval resolution not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules.

        (iv) It is not in order for the Senate to consider any procedural disapproval resolution not reported by the Committee on Finance.

      (2) FOR FAILURE TO MEET OTHER REQUIREMENTS- Prior to December 31, 2002, the Secretary of Commerce shall transmit to Congress a report setting forth the strategy of the United States for correcting instances in which dispute settlement panels and the Appellate Body of the WTO have added to obligations or diminished rights of the United States, as described in section 2101(b)(3). Trade authorities procedures shall not apply to any implementing bill with respect to an agreement negotiated under the auspices of the WTO, unless the Secretary of Commerce has issued such report in a timely manner.

    (c) RULES OF HOUSE OF REPRESENTATIVES AND SENATE- Subsection (b) of this section and section 2103(c) are enacted by the Congress--

      (1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such are deemed a part of the rules of each House, respectively, and such procedures supersede other rules only to the extent that they are inconsistent with such other rules; and

      (2) with the full recognition of the constitutional right of either House to change the rules (so far as relating to the procedures of that House) at any time, in the same manner, and to the same extent as any other rule of that House.

SEC. 2106. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR WHICH NEGOTIATIONS HAVE ALREADY BEGUN.

    (a) CERTAIN AGREEMENTS- Notwithstanding the prenegotiation notification and consultation requirement described in section 2104(a), if an agreement to which section 2103(b) applies--

      (1) is entered into under the auspices of the World Trade Organization,

      (2) is entered into with Chile,

      (3) is entered into with Singapore, or

      (4) establishes a Free Trade Area for the Americas,

    and results from negotiations that were commenced before the date of the enactment of this Act, subsection (b) shall apply.

    (b) TREATMENT OF AGREEMENTS- In the case of any agreement to which subsection (a) applies--

      (1) the applicability of the trade authorities procedures to implementing bills shall be determined without regard to the requirements of section 2104(a) (relating only to 90 days notice prior to initiating negotiations), and any procedural disapproval resolution under section 2105(b)(1)(B) shall not be in order on the basis of a failure or refusal to comply with the provisions of section 2104(a); and

      (2) the President shall, as soon as feasible after the enactment of this Act--

        (A) notify the Congress of the negotiations described in subsection (a), the specific United States objectives in the negotiations, and whether the President is seeking a new agreement or changes to an existing agreement; and

        (B) before and after submission of the notice, consult regarding the negotiations with the committees referred to in section 2104(a)(2) and the Congressional Oversight Group.

SEC. 2107. CONGRESSIONAL OVERSIGHT GROUP.

    (a) MEMBERS AND FUNCTIONS-

      (1) IN GENERAL- By not later than 60 days after the date of the enactment of this Act, and not later than 30 days after the convening of each Congress, the chairman of the Committee on Ways and Means of the House of Representatives and the chairman of the Committee on Finance of the Senate shall convene the Congressional Oversight Group.

      (2) MEMBERSHIP FROM THE HOUSE- In each Congress, the Congressional Oversight Group shall be comprised of the following Members of the House of Representatives:

        (A) The chairman and ranking member of the Committee on Ways and Means, and 3 additional members of such Committee (not more than 2 of whom are members of the same political party).

        (B) The chairman and ranking member, or their designees, of the committees of the House of Representatives which would have, under the Rules of the House of Representatives, jurisdiction over provisions of law affected by a trade agreement negotiations for which are conducted at any time during that Congress and to which this title would apply.

      (3) MEMBERSHIP FROM THE SENATE- In each Congress, the Congressional Oversight Group shall also be comprised of the following members of the Senate:

        (A) The chairman and ranking Member of the Committee on Finance and 3 additional members of such Committee (not more than 2 of whom are members of the same political party).

        (B) The chairman and ranking member, or their designees, of the committees of the Senate which would have, under the Rules of the Senate, jurisdiction over provisions of law affected by a trade agreement negotiations for which are conducted at any time during that Congress and to which this title would apply.

      (4) ACCREDITATION- Each member of the Congressional Oversight Group described in paragraph (2)(A) and (3)(A) shall be accredited by the United States Trade Representative on behalf of the President as official advisers to the United States delegation in negotiations for any trade agreement to which this title applies. Each member of the Congressional Oversight Group described in paragraph (2)(B) and (3)(B) shall be accredited by the United States Trade Representative on behalf of the President as official advisers to the United States delegation in the negotiations by reason of which the member is in the Congressional Oversight Group. The Congressional Oversight Group shall consult with and provide advice to the Trade Representative regarding the formulation of specific objectives, negotiating strategies and positions, the development of the applicable trade agreement, and compliance and enforcement of the negotiated commitments under the trade agreement.

      (5) CHAIR- The Congressional Oversight Group shall be chaired by the Chairman of the Committee on Ways and Means of the House of Representatives and the Chairman of the Committee on Finance of the Senate.

    (b) GUIDELINES-

      (1) PURPOSE AND REVISION- The United States Trade Representative, in consultation with the chairmen and ranking minority members of the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate--

        (A) shall, within 120 days after the date of the enactment of this Act, develop written guidelines to facilitate the useful and timely exchange of information between the Trade Representative and the Congressional Oversight Group established under this section; and

        (B) may make such revisions to the guidelines as may be necessary from time to time.

      (2) CONTENT- The guidelines developed under paragraph (1) shall provide for, among other things--

        (A) regular, detailed briefings of the Congressional Oversight Group regarding negotiating objectives, including the promotion of certain priorities referred to in section 2102(c), and positions and the status of the applicable negotiations, beginning as soon as practicable after the Congressional Oversight Group is convened, with more frequent briefings as trade negotiations enter the final stage;

        (B) access by members of the Congressional Oversight Group, and staff with proper security clearances, to pertinent documents relating to the negotiations, including classified materials;

        (C) the closest practicable coordination between the Trade Representative and the Congressional Oversight Group at all critical periods during the negotiations, including at negotiation sites;

        (D) after the applicable trade agreement is concluded, consultation regarding ongoing compliance and enforcement of negotiated commitments under the trade agreement; and

        (E) the time frame for submitting the report required under section 2102(c)(8).

    (c) REQUEST FOR MEETING- Upon the request of a majority of the Congressional Oversight Group, the President shall meet with the Congressional Oversight Group before initiating negotiations with respect to a trade agreement, or at any other time concerning the negotiations.

SEC. 2108. ADDITIONAL IMPLEMENTATION AND ENFORCEMENT REQUIREMENTS.

    (a) IN GENERAL- At the time the President submits to the Congress the final text of an agreement pursuant to section 2105(a)(1)(C), the President shall also submit a plan for implementing and enforcing the agreement. The implementation and enforcement plan shall include the following:

      (1) BORDER PERSONNEL REQUIREMENTS- A description of additional personnel required at border entry points, including a list of additional customs and agricultural inspectors.

      (2) AGENCY STAFFING REQUIREMENTS- A description of additional personnel required by Federal agencies responsible for monitoring and implementing the trade agreement, including personnel required by the Office of the United States Trade Representative, the Department of Commerce, the Department of Agriculture (including additional personnel required to implement sanitary and phytosanitary measures in order to obtain market access for United States exports), the Department of the Treasury, and such other agencies as may be necessary.

      (3) CUSTOMS INFRASTRUCTURE REQUIREMENTS- A description of the additional equipment and facilities needed by the United States Customs Service.

      (4) IMPACT ON STATE AND LOCAL GOVERNMENTS- A description of the impact the trade agreement will have on State and local governments as a result of increases in trade.

      (5) COST ANALYSIS- An analysis of the costs associated with each of the items listed in paragraphs (1) through (4).

    (b) BUDGET SUBMISSION- The President shall include a request for the resources necessary to support the plan described in subsection (a) in the first budget that the President submits to the Congress after the submission of the plan.

SEC. 2109. COMMITTEE STAFF.

    The grant of trade promotion authority under this title is likely to increase the activities of the primary committees of jurisdiction in the area of international trade. In addition, the creation of the Congressional Oversight Group under section 2107 will increase the participation of a broader number of Members of Congress in the formulation of United States trade policy and oversight of the international trade agenda for the United States. The primary committees of jurisdiction should have adequate staff to accommodate these increases in activities.

SEC. 2110. CONFORMING AMENDMENTS.

    (a) IN GENERAL- Title I of the Trade Act of 1974 (19 U.S.C. 2111 et seq.) is amended as follows:

      (1) IMPLEMENTING BILL-

        (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is amended by striking ‘section 1103(a)(1) of the Omnibus Trade and Competitiveness Act of 1988, or section 282 of the Uruguay Round Agreements Act’ and inserting ‘section 282 of the Uruguay Round Agreements Act, or section 2105(a)(1) of the Bipartisan Trade Promotion Authority Act of 2002’.

        (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is amended by striking ‘or section 282 of the Uruguay Round Agreements Act’ and inserting ‘, section 282 of the Uruguay Round Agreements Act, or section 2105(a)(1) of the Bipartisan Trade Promotion Authority Act of 2002’.

      (2) ADVICE FROM INTERNATIONAL TRADE COMMISSION- Section 131 (19 U.S.C. 2151) is amended--

        (A) in subsection (a)--

          (i) in paragraph (1), by striking ‘section 123 of this Act or section 1102 (a) or (c) of the Omnibus Trade and Competitiveness Act of 1988,’ and inserting ‘section 123 of this Act or section 2103 (a) or (b) of the Bipartisan Trade Promotion Authority Act of 2002,’; and

          (ii) in paragraph (2), by striking ‘section 1102 (b) or (c) of the Omnibus Trade and Competitiveness Act of 1988’ and inserting ‘section 2103(b) of the Bipartisan Trade Promotion Authority Act of 2002’;

        (B) in subsection (b), by striking ‘section 1102(a)(3)(A)’ and inserting ‘section 2103(a)(3)(A) of the Bipartisan Trade Promotion Authority Act of 2002’; and

        (C) in subsection (c), by striking ‘section 1102 of the Omnibus Trade and Competitiveness Act of 1988,’ and inserting ‘section 2103 of the Bipartisan Trade Promotion Authority Act of 2002,’.

      (3) HEARINGS AND ADVICE- Sections 132, 133(a), and 134(a) (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by striking ‘section 1102 of the Omnibus Trade and Competitiveness Act of 1988,’ each place it appears and inserting ‘section 2103 of the Bipartisan Trade Promotion Authority Act of 2002,’.

      (4) PREREQUISITES FOR OFFERS- Section 134(b) (19 U.S.C. 2154(b)) is amended by striking ‘section 1102 of the Omnibus Trade and Competitiveness Act of 1988’ and inserting ‘section 2103 of the Bipartisan Trade Promotion Authority Act of 2002’.

      (5) ADVICE FROM PRIVATE AND PUBLIC SECTORS- Section 135 (19 U.S.C. 2155) is amended--

        (A) in subsection (a)(1)(A), by striking ‘section 1102 of the Omnibus Trade and Competitiveness Act of 1988’ and inserting ‘section 2103 of the Bipartisan Trade Promotion Authority Act of 2002’;

        (B) in subsection (e)(1)--

          (i) by striking ‘section 1102 of the Omnibus Trade and Competitiveness Act of 1988’ each place it appears and inserting ‘section 2103 of the Bipartisan Trade Promotion Authority Act of 2002’; and

          (ii) by striking ‘not later than the date on which the President notifies the Congress under section 1103(a)(1)(A) of such Act of 1988 of his intention to enter into that agreement’ and inserting ‘not later than the date that is 30 days after the date on which the President notifies the Congress under section 5(a)(1)(A) of the Bipartisan Trade Promotion Authority Act of 2002 of the President’s intention to enter into that agreement’; and

        (C) in subsection (e)(2), by striking ‘section 1101 of the Omnibus Trade and Competitiveness Act of 1988’ and inserting ‘section 2102 of the Bipartisan Trade Promotion Authority Act of 2002’.

      (6) TRANSMISSION OF AGREEMENTS TO CONGRESS- Section 162(a) (19 U.S.C. 2212(a)) is amended by striking ‘or under section 1102 of the Omnibus Trade and Competitiveness Act of 1988’ and inserting ‘or under section 2103 of the Bipartisan Trade Promotion Authority Act of 2002’.

    (b) APPLICATION OF CERTAIN PROVISIONS- For purposes of applying sections 125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 2136(a), and 2137)--

      (1) any trade agreement entered into under section 2103 shall be treated as an agreement entered into under section 101 or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 2111 or 2112); and

      (2) any proclamation or Executive order issued pursuant to a trade agreement entered into under section 2103 shall be treated as a proclamation or Executive order issued pursuant to a trade agreement entered into under section 102 of the Trade Act of 1974.

SEC. 2111. REPORT ON IMPACT OF TRADE PROMOTION AUTHORITY.

    (a) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the International Trade Commission shall report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives regarding the economic impact on the United States of the trade agreements described in subsection (b).

    (b) AGREEMENTS- The trade agreements described in this subsection are:

      (1) The United States-Israel Free Trade Agreement.

      (2) The United States-Canada Free Trade Agreement.

      (3) The North American Free Trade Agreement.

      (4) The Uruguay Round Agreements.

      (5) The Tokyo Round of Multilateral Trade Negotiations.

SEC. 2112. IDENTIFICATION OF SMALL BUSINESS ADVOCATE AT WTO.

    (a) IN GENERAL- The United States Trade Representative shall pursue the identification of a small business advocate at the World Trade Organization Secretariat to examine the impact of WTO agreements on the interests of small- and medium-sized enterprises, address the concerns of small- and medium-sized enterprises, and recommend ways to address those interests in trade negotiations involving the World Trade Organization.

    (b) ASSISTANT TRADE REPRESENTATIVE- The Assistant United States Trade Representative for Industry and Telecommunications shall be responsible for ensuring that the interests of small business are considered in all trade negotiations in accordance with the objective described in section 2102(a)(8). It is the sense of Congress that the small business functions should be reflected in the title of the Assistant United States Trade Representative assigned the responsibility for small business.

    (c) REPORT- Not later than 1 year after the date of enactment of this Act, and annually thereafter, the United States Trade Representative shall prepare and submit a report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives on the steps taken by the United States Trade Representative to pursue the identification of a small business advocate at the World Trade Organization.

SEC. 2113. DEFINITIONS.

    In this title:

      (1) AGREEMENT ON AGRICULTURE- The term ‘Agreement on Agriculture’ means the agreement referred to in section 101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2)).

      (2) CORE LABOR STANDARDS- The term ‘core labor standards’ means--

        (A) the right of association;

        (B) the right to organize and bargain collectively;

        (C) a prohibition on the use of any form of forced or compulsory labor;

        (D) a minimum age for the employment of children; and

        (E) acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health.

      (3) GATT 1994- The term ‘GATT 1994’ has the meaning given that term in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501).

      (4) ILO- The term ‘ILO’ means the International Labor Organization.

      (5) IMPORT SENSITIVE AGRICULTURAL PRODUCT- The term ‘import sensitive agricultural product’ means an agricultural product with respect to which, as a result of the Uruguay Round Agreements--

        (A) the rate of duty was the subject of tariff reductions by the United States, and pursuant to such Agreements, was reduced on January 1, 1995, to a rate which was not less than 97.5 percent of the rate of duty that applied to such article on December 31, 1994; or

        (B) became subject to a tariff-rate quota on or after January 1, 1995.

      (6) UNITED STATES PERSON- The term ‘United States person’ means--

        (A) a United States citizen;

        (B) a partnership, corporation, or other legal entity organized under the laws of the United States; and

        (C) a partnership, corporation, or other legal entity that is organized under the laws of a foreign country and is controlled by entities described in subparagraph (B) or United States citizens, or both.

      (7) URUGUAY ROUND AGREEMENTS- The term ‘Uruguay Round Agreements’ has the meaning given that term in section 2(7) of the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).

      (8) WORLD TRADE ORGANIZATION; WTO- The terms ‘World Trade Organization’ and ‘WTO’ mean the organization established pursuant to the WTO Agreement.

      (9) WTO AGREEMENT- The term ‘WTO Agreement’ means the Agreement Establishing the World Trade Organization entered into on April 15, 1994.

DIVISION C--ANDEAN TRADE PREFERENCE ACT

TITLE XXXI--ANDEAN TRADE PREFERENCE

SEC. 3101. SHORT TITLE; FINDINGS.

    (a) SHORT TITLE- This title may be cited as the ‘Andean Trade Preference Expansion Act’.

    (b) FINDINGS- Congress makes the following findings:

      (1) Since the Andean Trade Preference Act was enacted in 1991, it has had a positive impact on United States trade with Bolivia, Colombia, Ecuador, and Peru. Two-way trade has doubled, with the United States serving as the leading source of imports and leading export market for each of the Andean beneficiary countries. This has resulted in increased jobs and expanded export opportunities in both the United States and the Andean region.

      (2) The Andean Trade Preference Act has been a key element in the United States counternarcotics strategy in the Andean region, promoting export diversification and broad-based economic development that provides sustainable economic alternatives to drug-crop production, strengthening the legitimate economies of Andean countries and creating viable alternatives to illicit trade in coca.

      (3) Notwithstanding the success of the Andean Trade Preference Act, the Andean region remains threatened by political and economic instability and fragility, vulnerable to the consequences of the drug war and fierce global competition for its legitimate trade.

      (4) The continuing instability in the Andean region poses a threat to the security interests of the United States and the world. This problem has been partially addressed through foreign aid, such as Plan Colombia, enacted by Congress in 2000. However, foreign aid alone is not sufficient. Enhancement of legitimate trade with the United States provides an alternative means for reviving and stabilizing the economies in the Andean region.

      (5) The Andean Trade Preference Act constitutes a tangible commitment by the United States to the promotion of prosperity, stability, and democracy in the beneficiary countries.

      (6) Renewal and enhancement of the Andean Trade Preference Act will bolster the confidence of domestic private enterprise and foreign investors in the economic prospects of the region, ensuring that legitimate private enterprise can be the engine of economic development and political stability in the region.

      (7) Each of the Andean beneficiary countries is committed to conclude negotiation of a Free Trade Area of the Americas by the year 2005, as a means of enhancing the economic security of the region.

      (8) Temporarily enhancing trade benefits for Andean beneficiaries countries will promote the growth of free enterprise and economic opportunity in these countries and serve the security interests of the United States, the region, and the world.

SEC. 3102. TEMPORARY PROVISIONS.

    (a) IN GENERAL- Section 204(b) of the Andean Trade Preference Act (19 U.S.C. 3203(b)) is amended to read as follows:

    ‘(b) IMPORT-SENSITIVE ARTICLES-

      ‘(1) IN GENERAL- Subject to paragraphs (2) through (5), the duty-free treatment provided under this title does not apply to--

        ‘(A) textile and apparel articles which were not eligible articles for purposes of this title on January 1, 1994, as this title was in effect on that date;

        ‘(B) footwear not designated at the time of the effective date of this title as eligible articles for the purpose of the generalized system of preferences under title V of the Trade Act of 1974;

        ‘(C) tuna, prepared or preserved in any manner, in airtight containers;

        ‘(D) petroleum, or any product derived from petroleum, provided for in headings 2709 and 2710 of the HTS;

        ‘(E) watches and watch parts (including cases, bracelets, and straps), of whatever type including, but not limited to, mechanical, quartz digital, or quartz analog, if such watches or watch parts contain any material which is the product of any country with respect to which HTS column 2 rates of duty apply;

        ‘(F) articles to which reduced rates of duty apply under subsection (c);

        ‘(G) sugars, syrups, and sugar containing products subject to tariff-rate quotas; or

        ‘(H) rum and tafia classified in subheading 2208.40 of the HTS.

      ‘(2) TRANSITION PERIOD TREATMENT OF CERTAIN TEXTILE AND APPAREL ARTICLES-

        ‘(A) ARTICLES COVERED- During the transition period, the preferential treatment described in subparagraph (B) shall apply to the following articles imported directly into the customs territory of the United States from an ATPEA beneficiary country:

          ‘(i) APPAREL ARTICLES ASSEMBLED FROM PRODUCTS OF THE UNITED STATES AND ATPEA BENEFICIARY COUNTRIES OR PRODUCTS NOT AVAILABLE IN COMMERCIAL QUANTITIES- Apparel articles sewn or otherwise assembled in 1 or more ATPEA beneficiary countries, or the United States, or both, exclusively from any one or any combination of the following:

            ‘(I) Fabrics or fabric components formed, or 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 HTS and are formed in the United States), provided that apparel articles sewn or otherwise assembled from materials described in this subclause are assembled with thread formed in the United States.

            ‘(II) Fabric components knit-to-shape in the United States from yarns wholly formed in the United States and fabric components knit-to-shape in 1 or more ATPEA beneficiary countries from yarns wholly formed in the United States.

            ‘(III) Fabrics or fabric components formed or components knit-to-shape, in 1 or more ATPEA beneficiary countries, from yarns wholly formed in 1 or more ATPEA beneficiary countries, if such fabrics (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the HTS and are formed in 1 or more ATPEA beneficiary countries) or components are in chief weight of llama, or alpaca.

            ‘(IV) Fabrics or yarns that are not formed in the United States or in 1 or more ATPEA beneficiary countries, to the extent such fabrics or yarns are considered not to be widely available in commercial quantities for purposes of determining the eligibility of such apparel articles for preferential treatment under Annex 401 of the NAFTA.

          ‘(ii) KNIT-TO-SHAPE APPAREL ARTICLES- Apparel articles knit-to-shape (other than socks provided for in heading 6115 of the HTS) in 1 or more ATPEA beneficiary countries from yarns wholly formed in the United States.

          ‘(iii) REGIONAL FABRIC-

            ‘(I) GENERAL RULE- Knit apparel articles wholly assembled in 1 or more ATPEA beneficiary countries exclusively from fabric formed, or fabric components formed, or components knit-to-shape, or any combination thereof, in 1 or more ATPEA beneficiary countries from yarns wholly formed in the United States, in an amount not exceeding the amount set forth in subclause (II).

            ‘(II) LIMITATION- The amount referred to in subclause (I) is 70,000,000 square meter equivalents during the 1-year period beginning on March 1, 2002, increased by 16 percent, compounded annually, in each succeeding 1-year period through February 28, 2006.

          ‘(iv) CERTAIN OTHER APPAREL ARTICLES-

            ‘(I) GENERAL RULE- Subject to subclause (II), any apparel article classifiable under subheading 6212.10 of the HTS, if the article is both cut and sewn or otherwise assembled in the United States, or one or more of the ATPEA beneficiary countries, or both.

            ‘(II) LIMITATION- During the 1-year period beginning on March 1, 2003, and during each of the 2 succeeding 1-year periods, apparel articles described in subclause (I) of a producer or an entity controlling production shall be eligible for preferential treatment under subparagraph (B) only if the aggregate cost of fabric components formed in the United States that are used in the production of all such articles of that producer or entity that are entered during the preceding 1-year period is at least 75 percent of the aggregate declared customs value of the fabric contained in all such articles of that producer or entity that are entered during the preceding 1-year period.

            ‘(III) DEVELOPMENT OF PROCEDURE TO ENSURE COMPLIANCE- The United States Customs Service shall develop and implement methods and procedures to ensure ongoing compliance with the requirement set forth in subclause (II). If the Customs Service finds that a producer or an entity controlling production has not satisfied such requirement in a 1-year period, then apparel articles described in subclause (I) of that producer or entity shall be ineligible for preferential treatment under subparagraph (B) during any succeeding 1-year period until the aggregate cost of fabric components formed in the United States used in the production of such articles of that producer or entity that are entered during the preceding 1-year period is at least 85 percent of the aggregate declared customs value of the fabric contained in all such articles of that producer or entity that are entered during the preceding 1-year period.

          ‘(v) APPAREL ARTICLES ASSEMBLED FROM FABRICS OR YARN NOT WIDELY AVAILABLE IN COMMERCIAL QUANTITIES- At the request of any interested party, the President is authorized to proclaim additional fabrics and yarn as eligible for preferential treatment under clause (i)(IV) if--

            ‘(I) the President determines that such fabrics or yarn cannot be supplied by the domestic industry in commercial quantities in a timely manner;

            ‘(II) the President has obtained advice regarding the proposed action from the appropriate advisory committee established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155) and the United States International Trade Commission;

            ‘(III) within 60 days after the request, the President has submitted a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate that sets forth the action proposed to be proclaimed and the reasons for such actions, and the advice obtained under subclause (II);

            ‘(IV) a period of 60 calendar days, beginning with the first day on which the President has met the requirements of subclause (III), has expired; and

            ‘(V) the President has consulted with such committees regarding the proposed action during the period referred to in subclause (III).

          ‘(vi) HANDLOOMED, HANDMADE, AND FOLKLORE ARTICLES- A handloomed, handmade, or folklore article of an ATPEA beneficiary country identified under subparagraph (C) that is certified as such by the competent authority of such beneficiary country.

          ‘(vii) SPECIAL RULES-

            ‘(I) EXCEPTION FOR FINDINGS AND TRIMMINGS- (aa) An article otherwise eligible for preferential treatment under this paragraph shall not be ineligible for such treatment because the article contains findings or trimmings of foreign origin, if such findings and trimmings do not exceed 25 percent of the cost of the components of the assembled product. Examples of findings and trimmings are sewing thread, hooks and eyes, snaps, buttons, ‘bow buds’, decorative lace, trim, elastic strips, zippers, including zipper tapes and labels, and other similar products. Elastic strips are considered findings or trimmings only if they are each less than 1 inch in width and are used in the production of brassieres.

            ‘(bb) In the case of an article described in clause (i)(I) of this subparagraph, sewing thread shall not be treated as findings or trimmings under this subclause.

            ‘(II) CERTAIN INTERLININGS- (aa) An article otherwise eligible for preferential treatment under this paragraph shall not be ineligible for such treatment because the article contains certain interlinings of foreign origin, if the value of such interlinings (and any findings and trimmings) does not exceed 25 percent of the cost of the components of the assembled article.

            ‘(bb) Interlinings eligible for the treatment described in division (aa) include only a chest type plate, ‘hymo’ piece, or ‘sleeve header’, of woven or weft-inserted warp knit construction and of coarse animal hair or man-made filaments.

            ‘(cc) The treatment described in this subclause shall terminate if the President makes a determination that United States manufacturers are producing such interlinings in the United States in commercial quantities.

            ‘(III) DE MINIMIS RULE- An article that would otherwise be ineligible for preferential treatment under this paragraph because the article contains yarns not wholly formed in the United States or in 1 or more ATPEA beneficiary countries shall not be ineligible for such treatment if the total weight of all such yarns is not more than 7 percent of the total weight of the good. Notwithstanding the preceding sentence, an apparel article containing elastomeric yarns shall be eligible for preferential treatment under this paragraph only if such yarns are wholly formed in the United States.

            ‘(IV) SPECIAL ORIGIN RULE- An article otherwise eligible for preferential treatment under clause (i) of this subparagraph shall not be ineligible for such treatment because the article contains nylon filament yarn (other than elastomeric yarn) that is classifiable under subheading 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 of the HTS duty-free from a country that is a party to an agreement with the United States establishing a free trade area, which entered into force before January 1, 1995.

            ‘(V) CLARIFICATION OF CERTAIN KNIT APPAREL ARTICLES- Notwithstanding any other provision of law, an article otherwise eligible for preferential treatment under clause (iii)(I) of this subparagraph, shall not be ineligible for such treatment because the article, or a component thereof, contains fabric formed in the United States from yarns wholly formed in the United States.

          ‘(viii) TEXTILE LUGGAGE- Textile luggage--

            ‘(I) assembled in an ATPEA beneficiary country from fabric wholly formed and cut in the United States, from yarns wholly formed in the United States, that is entered under subheading 9802.00.80 of the HTS; or

            ‘(II) assembled from fabric cut in an ATPEA beneficiary country from fabric wholly formed in the United States from yarns wholly formed in the United States.

        ‘(B) PREFERENTIAL TREATMENT- Except as provided in subparagraph (E), during the transition period, the articles to which subparagraph (A) applies shall enter the United States free of duty and free of any quantitative restrictions, limitations, or consultation levels.

        ‘(C) HANDLOOMED, HANDMADE, AND FOLKLORE ARTICLES- For purposes of subparagraph (A)(vi), the President shall consult with representatives of the ATPEA beneficiary countries concerned for the purpose of identifying particular textile and apparel goods that are mutually agreed upon as being handloomed, handmade, or folklore goods of a kind described in section 2.3(a), (b), or (c) of the Annex or Appendix 3.1.B.11 of the Annex.

        ‘(D) PENALTIES FOR TRANSSHIPMENTS-

          ‘(i) PENALTIES FOR EXPORTERS- If the President determines, based on sufficient evidence, that an exporter has engaged in transshipment with respect to textile or apparel articles from an ATPEA beneficiary country, then the President shall deny all benefits under this title to such exporter, and any successor of such exporter, for a period of 2 years.

          ‘(ii) PENALTIES FOR COUNTRIES- Whenever the President finds, based on sufficient evidence, that transshipment has occurred, the President shall request that the ATPEA beneficiary country or countries through whose territory the transshipment has occurred take all necessary and appropriate actions to prevent such transshipment. If the President determines that a country is not taking such actions, the President shall reduce the quantities of textile and apparel articles that may be imported into the United States from such country by the quantity of the transshipped articles multiplied by 3, to the extent consistent with the obligations of the United States under the WTO.

          ‘(iii) TRANSSHIPMENT DESCRIBED- Transshipment within the meaning of this subparagraph has occurred when preferential treatment under subparagraph (B) has been claimed for a textile or apparel article on the basis of material false information concerning the country of origin, manufacture, processing, or assembly of the article or any of its components. For purposes of this clause, false information is material if disclosure of the true information would mean or would have meant that the article is or was ineligible for preferential treatment under subparagraph (B).

        ‘(E) BILATERAL EMERGENCY ACTIONS-

          ‘(i) IN GENERAL- The President may take bilateral emergency tariff actions of a kind described in section 4 of the Annex with respect to any apparel article imported from an ATPEA beneficiary country if the application of tariff treatment under subparagraph (B) to such article results in conditions that would be cause for the taking of such actions under such section 4 with respect to a like article described in the same 8-digit subheading of the HTS that is imported from Mexico.

          ‘(ii) RULES RELATING TO BILATERAL EMERGENCY ACTION- For purposes of applying bilateral emergency action under this subparagraph--

            ‘(I) the requirements of paragraph (5) of section 4 of the Annex (relating to providing compensation) shall not apply;

            ‘(II) the term ‘transition period’ in section 4 of the Annex shall have the meaning given that term in paragraph (5)(D) of this subsection; and

            ‘(III) the requirements to consult specified in section 4 of the Annex shall be treated as satisfied if the President requests consultations with the ATPEA beneficiary country in question and the country does not agree to consult within the time period specified under section 4.

      ‘(3) TRANSITION PERIOD TREATMENT OF CERTAIN OTHER ARTICLES ORIGINATING IN BENEFICIARY COUNTRIES-

        ‘(A) EQUIVALENT TARIFF TREATMENT-

          ‘(i) IN GENERAL- Subject to clauses (ii) and (iii), the tariff treatment accorded at any time during the transition period to any article referred to in any of subparagraphs (B), (D) through (F), or (H) of paragraph (1) that is an ATPEA originating good, imported directly into the customs territory of the United States from an ATPEA beneficiary country, shall be identical to the tariff treatment that is accorded at such time under Annex 302.2 of the NAFTA to an article described in the same 8-digit subheading of the HTS that is a good of Mexico and is imported into the United States.

          ‘(ii) EXCEPTION- Clause (i) does not apply to any article accorded duty-free treatment under U.S. Note 2(b) to subchapter II of chapter 98 of the HTS.

          ‘(iii) CERTAIN FOOTWEAR-

            ‘(I) IN GENERAL- Duties on any article described in subclause (II), that is an ATPEA originating good imported directly into the customs territory of the United States from an ATPEA beneficiary country, shall be reduced by 1/15 a year beginning on the date of enactment of the Andean Trade Preference Expansion Act.

            ‘(II) ARTICLES DESCRIBED- An article described in this subclause means an article described in subheading 6401.10.00, 6401.91.00, 6401.92.90, 6401.99.30, 6401.99.60, 6401.99.90, 6402.30.50, 6402.30.70, 6402.30.80, 6402.91.50, 6402.91.80, 6402.91.90, 6402.99.20, 6402.99.30, 6402.99.80, 6402.99.90, 6403.91.60, 6404.11.50, 6404.11.60, 6404.11.70, 6404.11.80, 6404.11.90, 6404.19.20, 6404.19.35, 6404.19.50, or 6404.19.70 of the HTS.

        ‘(B) RELATIONSHIP TO SUBSECTION (C) DUTY REDUCTIONS- If at any time during the transition period the rate of duty that would (but for action taken under subparagraph (A)(i) in regard to such period) apply with respect to any article under subsection (c) is a rate of duty that is lower than the rate of duty resulting from such action, then such lower rate of duty shall be applied for the purposes of implementing such action.

        ‘(C) SPECIAL RULE FOR SUGARS, SYRUPS, AND SUGAR CONTAINING PRODUCTS- Duty-free treatment under this Act shall not be extended to sugars, syrups, and sugar-containing products subject to over-quota duty rates under applicable tariff-rate quotas.

        ‘(D) SPECIAL RULE FOR CERTAIN TUNA PRODUCTS-

          ‘(i) IN GENERAL- The President may proclaim duty-free treatment under this Act for tuna that is harvested by United States vessels or ATPEA beneficiary country vessels, and is prepared or preserved in any manner, in airtight containers in an ATPEA beneficiary country. Such duty-free treatment may be proclaimed in any calendar year for a quantity of such tuna that does not exceed 20 percent of the domestic United States tuna pack in the preceding calendar year. As used in the preceding sentence, the term ‘tuna pack’ means tuna pack as defined by the National Marine Fisheries Service of the United States Department of Commerce for purposes of subheading 1604.14.20 of the HTS as in effect on the date of enactment of the Andean Trade Preference Expansion Act.

          ‘(ii) UNITED STATES VESSEL- For purposes of this subparagraph, a ‘United States vessel’ is a vessel having a certificate of documentation with a fishery endorsement under chapter 121 of title 46, United States Code.

          ‘(iii) ATPEA VESSEL- For purposes of this subparagraph, an ‘ATPEA vessel’ is a vessel--

            ‘(I) which is registered or recorded in an ATPEA beneficiary country;

            ‘(II) which sails under the flag of an ATPEA beneficiary country;

            ‘(III) which is at least 75 percent owned by nationals of an ATPEA beneficiary country or by a company having its principal place of business in an ATPEA beneficiary country, of which the manager or managers, chairman of the board of directors or of the supervisory board, and the majority of the members of such boards are nationals of an ATPEA beneficiary country and of which, in the case of a company, at least 50 percent of the capital is owned by an ATPEA beneficiary country or by public bodies or nationals of an ATPEA beneficiary country;

            ‘(IV) of which the master and officers are nationals of an ATPEA beneficiary country; and

            ‘(V) of which at least 75 percent of the crew are nationals of an ATPEA beneficiary country.

      ‘(4) CUSTOMS PROCEDURES-

        ‘(A) IN GENERAL-

          ‘(i) REGULATIONS- Any importer that claims preferential treatment under paragraph (2) or (3) shall comply with customs procedures similar in all material respects to the requirements of Article 502(1) of the NAFTA as implemented pursuant to United States law, in accordance with regulations promulgated by the Secretary of the Treasury.

          ‘(ii) DETERMINATION-

            ‘(I) IN GENERAL- In order to qualify for the preferential treatment under paragraph (2) or (3) and for a Certificate of Origin to be valid with respect to any article for which such treatment is claimed, there shall be in effect a determination by the President that each country described in subclause (II)--

‘(aa) has implemented and follows; or

‘(bb) is making substantial progress toward implementing and following, procedures and requirements similar in all material respects to the relevant procedures and requirements under chapter 5 of the NAFTA.

            ‘(II) COUNTRY DESCRIBED- A country is described in this subclause if it is an ATPEA beneficiary country--

‘(aa) from which the article is exported; or

‘(bb) in which materials used in the production of the article originate or in which the article or such materials undergo production that contributes to a claim that the article is eligible for preferential treatment under paragraph (2) or (3).

        ‘(B) CERTIFICATE OF ORIGIN- The Certificate of Origin that otherwise would be required pursuant to the provisions of subparagraph (A) shall not be required in the case of an article imported under paragraph (2) or (3) if such Certificate of Origin would not be required under Article 503 of the NAFTA (as implemented pursuant to United States law), if the article were imported from Mexico.

        ‘(C) REPORT BY USTR ON COOPERATION OF OTHER COUNTRIES CONCERNING CIRCUMVENTION- The United States Commissioner of Customs shall conduct a study analyzing the extent to which each ATPEA beneficiary country--

          ‘(i) has cooperated fully with the United States, consistent with its domestic laws and procedures, in instances of circumvention or alleged circumvention of existing quotas on imports of textile and apparel goods, to establish necessary relevant facts in the places of import, export, and, where applicable, transshipment, including investigation of circumvention practices, exchanges of documents, correspondence, reports, and other relevant information, to the extent such information is available;

          ‘(ii) has taken appropriate measures, consistent with its domestic laws and procedures, against exporters and importers involved in instances of false declaration concerning fiber content, quantities, description, classification, or origin of textile and apparel goods; and

          ‘(iii) has penalized the individuals and entities involved in any such circumvention, consistent with its domestic laws and procedures, and has worked closely to seek the cooperation of any third country to prevent such circumvention from taking place in that third country.

        The Trade Representative shall submit to Congress, not later than October 1, 2002, a report on the study conducted under this subparagraph.

      ‘(5) DEFINITIONS AND SPECIAL RULES- For purposes of this subsection--

        ‘(A) ANNEX- The term ‘the Annex’ means Annex 300-B of the NAFTA.

        ‘(B) ATPEA BENEFICIARY COUNTRY- The term ‘ATPEA beneficiary country’ means any ‘beneficiary country’, as defined in section 203(a)(1) of this title, which the President designates as an ATPEA beneficiary country, taking into account the criteria contained in subsections (c) and (d) of section 203 and other appropriate criteria, including the following:

          ‘(i) Whether the beneficiary country has demonstrated a commitment to--

            ‘(I) undertake its obligations under the WTO, including those agreements listed in section 101(d) of the Uruguay Round Agreements Act, on or ahead of schedule; and

            ‘(II) participate in negotiations toward the completion of the FTAA or another free trade agreement.

          ‘(ii) The extent to which the country provides protection of intellectual property rights consistent with or greater than the protection afforded under the Agreement on Trade-Related Aspects of Intellectual Property Rights described in section 101(d)(15) of the Uruguay Round Agreements Act.

          ‘(iii) The extent to which the country provides internationally recognized worker rights, including--

            ‘(I) the right of association;

            ‘(II) the right to organize and bargain collectively;

            ‘(III) a prohibition on the use of any form of forced or compulsory labor;

            ‘(IV) a minimum age for the employment of children; and

            ‘(V) acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health.

          ‘(iv) Whether the country has implemented its commitments to eliminate the worst forms of child labor, as defined in section 507(6) of the Trade Act of 1974.

          ‘(v) The extent to which the country has met the counter-narcotics certification criteria set forth in section 490 of the Foreign Assistance Act of 1961 (22 U.S.C. 2291j) for eligibility for United States assistance.

          ‘(vi) The extent to which the country has taken steps to become a party to and implements the Inter-American Convention Against Corruption.

          ‘(vii) The extent to which the country--

            ‘(I) applies transparent, nondiscriminatory, and competitive procedures in government procurement equivalent to those contained in the Agreement on Government Procurement described in section 101(d)(17) of the Uruguay Round Agreements Act; and

            ‘(II) contributes to efforts in international fora to develop and implement international rules in transparency in government procurement.

          ‘(viii) The extent to which the country has taken steps to support the efforts of the United States to combat terrorism.

        ‘(C) ATPEA ORIGINATING GOOD-

          ‘(i) IN GENERAL- The term ‘ATPEA originating good’ means a good that meets the rules of origin for a good set forth in chapter 4 of the NAFTA as implemented pursuant to United States law.

          ‘(ii) APPLICATION OF CHAPTER 4- In applying chapter 4 of the NAFTA with respect to an ATPEA beneficiary country for purposes of this subsection--

            ‘(I) no country other than the United States and an ATPEA beneficiary country may be treated as being a party to the NAFTA;

            ‘(II) any reference to trade between the United States and Mexico shall be deemed to refer to trade between the United States and an ATPEA beneficiary country;

            ‘(III) any reference to a party shall be deemed to refer to an ATPEA beneficiary country or the United States; and

            ‘(IV) any reference to parties shall be deemed to refer to any combination of ATPEA beneficiary countries or to the United States and one or more ATPEA beneficiary countries (or any combination thereof).

        ‘(D) TRANSITION PERIOD- The term ‘transition period’ means, with respect to an ATPEA beneficiary country, the period that begins on the date of enactment, and ends on the earlier of--

          ‘(i) February 28, 2006; or

          ‘(ii) the date on which the FTAA or another free trade agreement that makes substantial progress in achieving the negotiating objectives set forth in section 108(b)(5) of Public Law 103-182 (19 U.S.C. 3317(b)(5)) enters into force with respect to the United States and the ATPEA beneficiary country.

        ‘(E) ATPEA- The term ‘ATPEA’ means the Andean Trade Preference Expansion Act.

        ‘(F) FTAA- The term ‘FTAA’ means the Free Trade Area of the Americas.’.

    (b) DETERMINATION REGARDING RETENTION OF DESIGNATION- Section 203(e) of the Andean Trade Preference Act (19 U.S.C. 3202(e)) is amended--

      (1) in paragraph (1)--

        (A) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;

        (B) by inserting ‘(A)’ after ‘(1)’; and

        (C) by adding at the end the following:

    ‘(B) The President may, after the requirements of paragraph (2) have been met--

      ‘(i) withdraw or suspend the designation of any country as an ATPEA beneficiary country; or

      ‘(ii) withdraw, suspend, or limit the application of preferential treatment under section 204(b) (2) and (3) to any article of any country;

    if, after such designation, the President determines that, as a result of changed circumstances, the performance of such country is not satisfactory under the criteria set forth in section 204(b)(5)(B).’; and

      (2) by adding after paragraph (2) the following new paragraph:

    ‘(3) If preferential treatment under section 204(b) (2) and (3) is withdrawn, suspended, or limited with respect to an ATPEA beneficiary country, such country shall not be deemed to be a ‘party’ for the purposes of applying section 204(b)(5)(C) to imports of articles for which preferential treatment has been withdrawn, suspended, or limited with respect to such country.’.

    (c) REPORTING REQUIREMENTS- Section 203(f) of the Andean Trade Preference Act (19 U.S.C. 3202(f)) is amended to read as follows:

    ‘(f) REPORTING REQUIREMENTS-

      ‘(1) IN GENERAL- Not later than December 31, 2002, and every 2 years thereafter during the period this title is in effect, the United States Trade Representative shall submit to Congress a report regarding the operation of this title, including--

        ‘(A) with respect to subsections (c) and (d), the results of a general review of beneficiary countries based on the considerations described in such subsections; and

        ‘(B) the performance of each beneficiary country or ATPEA beneficiary country, as the case may be, under the criteria set forth in section 204(b)(5)(B).

      ‘(2) PUBLIC COMMENT- Before submitting the report described in paragraph (1), the United States Trade Representative shall publish a notice in the Federal Register requesting public comments on whether beneficiary countries are meeting the criteria listed in section 204(b)(5)(B).’.

    (d) CONFORMING AMENDMENTS-

      (1) IN GENERAL-

        (A) Section 202 of the Andean Trade Preference Act (19 U.S.C. 3201) is amended by inserting ‘(or other preferential treatment)’ after ‘treatment’.

        (B) Section 204(a)(1) of the Andean Trade Preference Act (19 U.S.C. 3203(a)(1)) is amended by inserting ‘(or otherwise provided for)’ after ‘eligibility’.

        (C) Section 204(a)(1) of the Andean Trade Preference Act (19 U.S.C. 3203(a)(1)) is amended by inserting ‘(or preferential treatment)’ after ‘duty-free treatment’.

      (2) DEFINITIONS- Section 203(a) of the Andean Trade Preference Act (19 U.S.C. 3202(a)) is amended by adding at the end the following new paragraphs:

      ‘(4) The term ‘NAFTA’ means the North American Free Trade Agreement entered into between the United States, Mexico, and Canada on December 17, 1992.

      ‘(5) The terms ‘WTO’ and ‘WTO member’ have the meanings given those terms in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501).’.

    (e) PETITIONS FOR REVIEW-

      (1) IN GENERAL- Not later than 120 days after the date of enactment of this Act, the President shall promulgate regulations regarding the review of eligibility of articles and countries under the Andean Trade Preference Act, consistent with section 203(e) of such Act, as amended by this title.

      (2) CONTENT OF REGULATIONS- The regulations shall be similar to the regulations regarding eligibility under the Generalized System of Preferences with respect to the timetable for reviews and content, and shall include procedures for requesting withdrawal, suspension, or limitations of preferential duty treatment under the Act, conducting reviews of such requests, and implementing the results of the reviews.

SEC. 3103. TERMINATION.

    (a) IN GENERAL- Section 208(b) of the Andean Trade Preference Act (19 U.S.C. 3206(b)) is amended to read as follows:

    ‘(b) TERMINATION OF PREFERENTIAL TREATMENT- No preferential duty treatment extended to beneficiary countries under this Act shall remain in effect after February 28, 2006.’.

    (b) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND RELIQUIDATIONS-

      (1) IN GENERAL- Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, and subject to paragraph (3), the entry--

        (A) of any article to which duty-free treatment (or preferential treatment) under the Andean Trade Preference Act (19 U.S.C. 3201 et seq.) would have applied if the entry had been made on December 4, 2001,

        (B) that was made after December 4, 2001, and before the date of the enactment of this Act, and

        (C) to which duty-free treatment (or preferential treatment) under the Andean Trade Preference Act did not apply,

      shall be liquidated or reliquidated as if such duty-free treatment (or preferential treatment) applied, and the Secretary of the Treasury shall refund any duty paid with respect to such entry.

      (2) ENTRY- As used in this subsection, the term ‘entry’ includes a withdrawal from warehouse for consumption.

      (3) REQUESTS- Liquidation or reliquidation may be made under paragraph (1) with respect to an entry only if a request therefor is filed with the Customs Service, within 180 days after the date of the enactment of this Act, that contains sufficient information to enable the Customs Service--

        (A) to locate the entry; or

        (B) to reconstruct the entry if it cannot be located.

TITLE XXXII--MISCELLANEOUS TRADE BENEFITS

SEC. 3201. WOOL PROVISIONS.

    (a) SHORT TITLE- This section may be cited as the ‘Wool Manufacturer Payment Clarification and Technical Corrections Act’.

    (b) CLARIFICATION OF TEMPORARY DUTY SUSPENSION- Heading 9902.51.13 of the Harmonized Tariff Schedule of the United States is amended by inserting ‘average’ before ‘diameters’.

    (c) PAYMENTS TO MANUFACTURERS OF CERTAIN WOOL PRODUCTS-

      (1) PAYMENTS- Section 505 of the Trade and Development Act of 2000 (Public Law 106-200; 114 Stat. 303) is amended as follows:

        (A) Subsection (a) is amended--

          (i) by striking ‘In each of the calendar years’ and inserting ‘For each of the calendar years’; and

          (ii) by striking ‘for a refund of duties’ and all that follows through the end of the subsection and inserting ‘for a payment equal to an amount determined pursuant to subsection (d)(1).’.

        (B) Subsection (b) is amended to read as follows:

    ‘(b) WOOL YARN-

      ‘(1) IMPORTING MANUFACTURERS- For each of the calendar years 2000, 2001, and 2002, a manufacturer of worsted wool fabrics who imports wool yarn of the kind described in heading 9902.51.13 of the Harmonized Tariff Schedule of the United States shall be eligible for a payment equal to an amount determined pursuant to subsection (d)(2).

      ‘(2) NONIMPORTING MANUFACTURERS- For each of the calendar years 2001 and 2002, any other manufacturer of worsted wool fabrics of imported wool yarn of the kind described in heading 9902.51.13 of the Harmonized Tariff Schedule of the United States shall be eligible for a payment equal to an amount determined pursuant to subsection (d)(2).’.

        (C) Subsection (c) is amended to read as follows:

    ‘(c) WOOL FIBER AND WOOL TOP-

      ‘(1) IMPORTING MANUFACTURERS- For each of the calendar years 2000, 2001, and 2002, a manufacturer of wool yarn or wool fabric who imports wool fiber or wool top of the kind described in heading 9902.51.14 of the Harmonized Tariff Schedule of the United States shall be eligible for a payment equal to an amount determined pursuant to subsection (d)(3).

      ‘(2) NONIMPORTING MANUFACTURERS- For each of the calendar years 2001 and 2002, any other manufacturer of wool yarn or wool fabric of imported wool fiber or wool top of the kind described in heading 9902.51.14 of the Harmonized Tariff Schedule of the United States shall be eligible for a payment equal to an amount determined pursuant to subsection (d)(3).’.

        (D) Section 505 is further amended by striking subsection (d) and inserting the following new subsections:

    ‘(d) AMOUNT OF ANNUAL PAYMENTS TO MANUFACTURERS-

      ‘(1) MANUFACTURERS OF MEN’S SUITS, ETC. OF IMPORTED WORSTED WOOL FABRICS-

        ‘(A) ELIGIBLE TO RECEIVE MORE THAN $5,000- Each annual payment to manufacturers described in subsection (a) who, according to the records of the Customs Service as of September 11, 2001, are eligible to receive more than $5,000 for each of the calendar years 2000, 2001, and 2002, shall be in an amount equal to one-third of the amount determined by multiplying $30,124,000 by a fraction--

          ‘(i) the numerator of which is the amount attributable to the duties paid on eligible wool products imported in calendar year 1999 by the manufacturer making the claim, and

          ‘(ii) the denominator of which is the total amount attributable to the duties paid on eligible wool products imported in calendar year 1999 by all the manufacturers described in subsection (a) who, according to the records of the Customs Service as of September 11, 2001, are eligible to receive more than $5,000 for each such calendar year under this section as it was in effect on that date.

        ‘(B) ELIGIBLE WOOL PRODUCTS- For purposes of subparagraph (A), the term ‘eligible wool products’ refers to imported worsted wool fabrics described in subsection (a).

        ‘(C) OTHERS- All manufacturers described in subsection (a), other than the manufacturers to which subparagraph (A) applies, shall each receive an annual payment in an amount equal to one-third of the amount determined by dividing $1,665,000 by the number of all such other manufacturers.

      ‘(2) MANUFACTURERS OF WORSTED WOOL FABRICS OF IMPORTED WOOL YARN-

        ‘(A) IMPORTING MANUFACTURERS- Each annual payment to an importing manufacturer described in subsection (b)(1) shall be in an amount equal to one-third of the amount determined by multiplying $2,202,000 by a fraction--

          ‘(i) the numerator of which is the amount attributable to the duties paid on eligible wool products imported in calendar year 1999 by the importing manufacturer making the claim, and

          ‘(ii) the denominator of which is the total amount attributable to the duties paid on eligible wool products imported in calendar year 1999 by all the importing manufacturers described in subsection (b)(1).

        ‘(B) ELIGIBLE WOOL PRODUCTS- For purposes of subparagraph (A), the term ‘eligible wool products’ refers to imported wool yarn described in subsection (b)(1).

        ‘(C) NONIMPORTING MANUFACTURERS- Each annual payment to a nonimporting manufacturer described in subsection (b)(2) shall be in an amount equal to one-half of the amount determined by multiplying $141,000 by a fraction--

          ‘(i) the numerator of which is the amount attributable to the purchases of imported eligible wool products in calendar year 1999 by the nonimporting manufacturer making the claim, and

          ‘(ii) the denominator of which is the total amount attributable to the purchases of imported eligible wool products in calendar year 1999 by all the nonimporting manufacturers described in subsection (b)(2).

      ‘(3) MANUFACTURERS OF WOOL YARN OR WOOL FABRIC OF IMPORTED WOOL FIBER OR WOOL TOP-

        ‘(A) IMPORTING MANUFACTURERS- Each annual payment to an importing manufacturer described in subsection (c)(1) shall be in an amount equal to one-third of the amount determined by multiplying $1,522,000 by a fraction--

          ‘(i) the numerator of which is the amount attributable to the duties paid on eligible wool products imported in calendar year 1999 by the importing manufacturer making the claim, and

          ‘(ii) the denominator of which is the total amount attributable to the duties paid on eligible wool products imported in calendar year 1999 by all the importing manufacturers described in subsection (c)(1).

        ‘(B) ELIGIBLE WOOL PRODUCTS- For purposes of subparagraph (A), the term ‘eligible wool products’ refers to imported wool fiber or wool top described in subsection (c)(1).

        ‘(C) NONIMPORTING MANUFACTURERS- Each annual payment to a nonimporting manufacturer described in subsection (c)(2) shall be in an amount equal to one-half of the amount determined by multiplying $597,000 by a fraction--

          ‘(i) the numerator of which is the amount attributable to the purchases of imported eligible wool products in calendar year 1999 by the nonimporting manufacturer making the claim, and

          ‘(ii) the denominator of which is the amount attributable to the purchases of imported eligible wool products in calendar year 1999 by all the nonimporting manufacturers described in subsection (c)(2).

      ‘(4) LETTERS OF INTENT- Except for the nonimporting manufacturers described in subsections (b)(2) and (c)(2) who may make claims under this section by virtue of the enactment of the Wool Manufacturer Payment Clarification and Technical Corrections Act, only manufacturers who, according to the records of the Customs Service, filed with the Customs Service before September 11, 2001, letters of intent to establish eligibility to be claimants are eligible to make a claim for a payment under this section.

      ‘(5) AMOUNT ATTRIBUTABLE TO PURCHASES BY NONIMPORTING MANUFACTURERS-

        ‘(A) AMOUNT ATTRIBUTABLE- For purposes of paragraphs (2)(C) and (3)(C), the amount attributable to the purchases of imported eligible wool products in calendar year 1999 by a nonimporting manufacturer shall be the amount the nonimporting manufacturer paid for eligible wool products in calendar year 1999, as evidenced by invoices. The nonimporting manufacturer shall make such calculation and submit the resulting amount to the Customs Service, within 45 days after the date of enactment of the Wool Manufacturer Payment Clarification and Technical Corrections Act, in a signed affidavit that attests that the information contained therein is true and accurate to the best of the affiant’s belief and knowledge. The nonimporting manufacturer shall retain the records upon which the calculation is based for a period of five years beginning on the date the affidavit is submitted to the Customs Service.

        ‘(B) ELIGIBLE WOOL PRODUCT- For purposes of subparagraph (A)--

          ‘(i) the eligible wool product for nonimporting manufacturers of worsted wool fabrics is wool yarn of the kind described in heading 9902.51.13 of the Harmonized Tariff Schedule of the United States purchased in calendar year 1999; and

          ‘(ii) the eligible wool products for nonimporting manufacturers of wool yarn or wool fabric are wool fiber or wool top of the kind described in heading 9902.51.14 of such Schedule purchased in calendar year 1999.

      ‘(6) AMOUNT ATTRIBUTABLE TO DUTIES PAID- For purposes of paragraphs (1), (2)(A), and (3)(A), the amount attributable to the duties paid by a manufacturer shall be the amount shown on the records of the Customs Service as of September 11, 2001, under this section as then in effect.

      ‘(7) SCHEDULE OF PAYMENTS; REALLOCATIONS-

        ‘(A) SCHEDULE- Of the payments described in paragraphs (1), (2)(A), and (3)(A), the Customs Service shall make the first and second installments on or before the date that is 45 days after the date of enactment of the Wool Manufacturer Payment Clarification and Technical Corrections Act, and the third installment on or before April 15, 2003. Of the payments described in paragraphs (2)(C) and (3)(C), the Customs Service shall make the first installment on or before the date that is 45 days after the date of enactment of the Wool Manufacturer Payment Clarification and Technical Corrections Act, and the second installment on or before April 15, 2003.

        ‘(B) REALLOCATIONS- In the event that a manufacturer that would have received payment under subparagraph (A) or (C) of paragraph (1), (2), or (3) ceases to be qualified for such payment as such a manufacturer, the amounts otherwise payable to the remaining manufacturers under such subparagraph shall be increased on a pro rata basis by the amount of the payment such manufacturer would have received.

      ‘(8) REFERENCE- For purposes of paragraphs (1)(A) and (6), the ‘records of the Customs Service as of September 11, 2001’ are the records of the Wool Duty Unit of the Customs Service on September 11, 2001, as adjusted by the Customs Service to the extent necessary to carry out this section. The amounts so adjusted are not subject to administrative or judicial review.

    ‘(e) AFFIDAVITS BY MANUFACTURERS-

      ‘(1) AFFIDAVIT REQUIRED- A manufacturer may not receive a payment under this section for calendar year 2000, 2001, or 2002, as the case may be, unless that manufacturer has submitted to the Customs Service for that calendar year a signed affidavit that attests that, during that calendar year, the affiant was a manufacturer in the United States described in subsection (a), (b), or (c).

      ‘(2) TIMING- An affidavit under paragraph (1) shall be valid--

        ‘(A) in the case of a manufacturer described in paragraph (1), (2)(A), or (3)(A) of subsection (d) filing a claim for a payment for calendar year 2000 or 2001, or both, only if the affidavit is postmarked no later than 15 days after the date of enactment of the Wool Manufacturer Payment Clarification and Technical Corrections Act; and

        ‘(B) in the case of a claim for a payment for calendar year 2002, only if the affidavit is postmarked no later than March 1, 2003.

    ‘(f) OFFSETS- Notwithstanding any other provision of this section, any amount otherwise payable under subsection (d) to a manufacturer in calendar year 2001 and, where applicable, in calendar years 2002 and 2003, shall be reduced by the amount of any payment received by that manufacturer under this section before the enactment of the Wool Manufacturer Payment Clarification and Technical Corrections Act.

    ‘(g) DEFINITION- For purposes of this section, the manufacturer is the party that owns--

      ‘(1) imported worsted wool fabric, of the kind described in heading 9902.51.11 or 9902.51.12 of the Harmonized Tariff Schedule of the United States, at the time the fabric is cut and sewn in the United States into men’s or boys’ suits, suit-type jackets, or trousers;

      ‘(2) imported wool yarn, of the kind described in heading 9902.51.13 of such Schedule, at the time the yarn is processed in the United States into worsted wool fabric; or

      ‘(3) imported wool fiber or wool top, of the kind described in heading 9902.51.14 of such Schedule, at the time the wool fiber or wool top is processed in the United States into wool yarn.’.

      (2) FUNDING- There is authorized to be appropriated and is appropriated, out of amounts in the General Fund of the Treasury not otherwise appropriated, $36,251,000 to carry out the amendments made by paragraph (1).

SEC. 3202. DUTY SUSPENSION ON WOOL.

    (a) EXTENSION OF TEMPORARY DUTY REDUCTIONS-

      (1) HEADING 9902.51.11- Heading 9902.51.11 of the Harmonized Tariff Schedule of the United States is amended by striking ‘2003’ and inserting ‘2005’.

      (2) HEADING 9902.51.12- Heading 9902.51.12 of the Harmonized Tariff Schedule of the United States is amended--

        (A) by striking ‘2003’ and inserting ‘2005’; and

        (B) by striking ‘6%’ and inserting ‘Free’.

      (3) HEADING 9902.51.13- Heading 9902.51.13 of the Harmonized Tariff Schedule of the United States is amended by striking ‘2003’ and inserting ‘2005’.

      (4) HEADING 9902.51.14- Heading 9902.51.14 of the Harmonized Tariff Schedule of the United States is amended by striking ‘2003’ and inserting ‘2005’.

    (b) LIMITATION ON QUANTITY OF IMPORTS-

      (1) NOTE 15- U.S. Note 15 to subchapter II of chapter 99 of the Harmonized Tariff Schedule of the United States is amended--

        (A) by striking ‘from January 1 to December 31 of each year, inclusive’; and

        (B) by striking ‘, or such other’ and inserting the following: ‘in calendar year 2001, 3,500,000 square meter equivalents in calendar year 2002, and 4,500,000 square meter equivalents in calendar year 2003 and each calendar year thereafter, or such greater’.

      (2) NOTE 16- U.S. Note 16 to subchapter II of chapter 99 of the Harmonized Tariff Schedule of the United States is amended--

        (A) by striking ‘from January 1 to December 31 of each year, inclusive’; and

        (B) by striking ‘, or such other’ and inserting the following: ‘in calendar year 2001, 2,500,000 square meter equivalents in calendar year 2002, and 3,500,000 square meter equivalents in calendar year 2003 and each calendar year thereafter, or such greater’.

    (c) EXTENSION OF DUTY REFUNDS AND WOOL RESEARCH TRUST FUND-

      (1) IN GENERAL- The United States Customs Service shall pay each manufacturer that receives a payment under section 505 of the Trade and Development Act of 2000 (Public Law 106-200) for calendar year 2002, and that provides an affidavit that it remains a manufacturer in the United States as of January 1 of the year of the payment, 2 additional payments, each payment equal to the payment received for calendar year 2002 as follows:

        (A) The first payment to be made after January 1, 2004, but on or before April 15, 2004.

        (B) The second payment to be made after January 1, 2005, but on or before April 15, 2005.

      (2) CONFORMING AMENDMENT- Section 506(f) of the Trade and Development Act of 2000 (Public Law 106-200) is amended by striking ‘2004’ and inserting ‘2006’.

      (3) AUTHORIZATION- There is authorized to be appropriated and is appropriated out of amounts in the general fund of the Treasury not otherwise appropriated such sums as are necessary to carry out the provisions of this subsection.

    (d) EFFECTIVE DATE- The amendment made by subsection (a)(2)(B) applies to goods entered, or withdrawn from warehouse for consumption, on or after January 1, 2002.

SEC. 3203. CEILING FANS.

    (a) IN GENERAL- Notwithstanding any other provision of law, ceiling fans classified under subheading 8414.51.00 of the Harmonized Tariff Schedule of the United States imported from Thailand shall enter duty-free and without any quantitative limitations, if duty-free treatment under title V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.) would have applied to such entry had the competitive need limitation been waived under section 503(d) of such Act.

    (b) APPLICABILITY- The provisions of this section shall apply to ceiling fans described in subsection (a) that are entered, or withdrawn from warehouse for consumption--

      (1) on or after the date that is 15 days after the date of enactment of this Act; and

      (2) before July 30, 2002.

SEC. 3204. CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS USED IN NUCLEAR FACILITIES.

    (a) IN GENERAL- Subheading 9902.84.02 of the Harmonized Tariff Schedule of the United States is amended--

      (1) by striking ‘4.9%’ and inserting ‘Free’; and

      (2) by striking ‘12/31/2003’ and inserting ‘12/31/2006’.

    (b) EFFECTIVE DATE-

      (1) IN GENERAL- The amendments made by subsection (a) shall apply to goods entered, or withdrawn from warehouse for consumption, on or after January 1, 2002.

      (2) RETROACTIVE APPLICATION- Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, and subject to paragraph (4), the entry of any article--

        (A) that was made on or after January 1, 2002, and

        (B) to which duty-free treatment would have applied if the amendment made by this section had been in effect on the date of such entry,

      shall be liquidated or reliquidated as if such duty-free treatment applied, and the Secretary of the Treasury shall refund any duty paid with respect to such entry.

      (3) ENTRY- As used in this subsection, the term ‘entry’ includes a withdrawal from warehouse for consumption.

      (4) REQUESTS- Liquidation or reliquidation may be made under paragraph (2) with respect to an entry only if a request therefor is filed with the Customs Service, within 180 days after the date of the enactment of this Act, that contains sufficient information to enable the Customs Service--

        (A) to locate the entry; or

        (B) to reconstruct the entry if it cannot be located.

DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT AND OTHER PROVISIONS

TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES

SEC. 4101. GENERALIZED SYSTEM OF PREFERENCES.

    (a) EXTENSION OF DUTY-FREE TREATMENT UNDER SYSTEM- Section 505 of the Trade Act of 1974 (19 U.S.C. 2465) is amended by striking ‘September 30, 2001’ and inserting ‘December 31, 2006’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on the date of enactment of this Act.

    (c) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND RELIQUIDATIONS-

      (1) IN GENERAL-

        (A) ENTRY OF CERTAIN ARTICLES- Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, and subject to paragraph (2), the entry--

          (i) of any article to which duty-free treatment under title V of the Trade Act of 1974 would have applied if the entry had been made on September 30, 2001;

          (ii) that was made after September 30, 2001, and before the date of enactment of this Act; and

          (iii) to which duty-free treatment under title V of that Act did not apply,

        shall be liquidated or reliquidated as free of duty, and the Secretary of the Treasury shall refund any duty paid with respect to such entry.

        (B) ENTRY- In this subsection, the term ‘entry’ includes a withdrawal from warehouse for consumption.

      (2) REQUESTS- Liquidation or reliquidation may be made under paragraph (1) with respect to an entry only if a request therefor is filed with the Customs Service, within 180 days after the date of enactment of this Act, that contains sufficient information to enable the Customs Service--

        (A) to locate the entry; or

        (B) to reconstruct the entry if it cannot be located.

SEC. 4102. AMENDMENTS TO GENERALIZED SYSTEM OF PREFERENCES.

    (a) ELIGIBILITY FOR GENERALIZED SYSTEM OF PREFERENCES- Section 502(b)(2)(F) of the Trade Act of 1974 (19 U.S.C. 2462(b)(2)(F)) is amended by striking the period at the end and inserting ‘or such country has not taken steps to support the efforts of the United States to combat terrorism.’.

    (b) DEFINITION OF INTERNATIONALLY RECOGNIZED WORKER RIGHTS- Section 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4)) is amended--

      (1) by striking ‘and’ at the end of subparagraph (D);

      (2) by striking the period at the end of subparagraph (E) and inserting ‘; and’;

      (3) by adding at the end the following new subparagraph:

        ‘(F) a prohibition on discrimination with respect to employment and occupation.’; and

      (4) by amending subparagraph (D) to read as follows:

        ‘(D) a minimum age for the employment of children, and a prohibition on the worst forms of child labor, as defined in paragraph (6);’.

TITLE XLII--OTHER PROVISIONS

SEC. 4201. TRANSPARENCY IN NAFTA TRIBUNALS.

    (a) FINDINGS- Congress makes the following findings:

      (1) Chapter Eleven of the North American Free Trade Agreement (NAFTA) allows foreign investors to file claims against signatory countries that directly or indirectly nationalize or expropriate an investment, or take measures ‘tantamount to nationalization or expropriation’ of such an investment.

      (2) Foreign investors have filed several claims against the United States, arguing that regulatory activity has been ‘tantamount to nationalization or expropriation’. Most notably, a Canadian chemical company claimed $970,000,000 in damages allegedly resulting from a California State regulation banning the use of a gasoline additive produced by that company.

      (3) A claim under Chapter Eleven of the NAFTA is adjudicated by a three-member panel, whose deliberations are largely secret.

      (4) While it may be necessary to protect the confidentiality of business sensitive information, the general lack of transparency of these proceedings has been excessive.

    (b) PURPOSE- The purpose of this amendment is to ensure that the proceedings of the NAFTA investor protection tribunals are as transparent as possible, consistent with the need to protect the confidentiality of business sensitive information.

    (c) CHAPTER 11 OF NAFTA- The President shall negotiate with Canada and Mexico an amendment to Chapter Eleven of the NAFTA to ensure the fullest transparency possible with respect to the dispute settlement mechanism in that Chapter, consistent with the need to protect information that is classified or confidential, by--

      (1) ensuring that all requests for dispute settlement under Chapter Eleven are promptly made public;

      (2) ensuring that with respect to Chapter Eleven--

        (A) all proceedings, submissions, findings, and decisions are promptly made public; and

        (B) all hearings are open to the public; and

      (3) establishing a mechanism under that Chapter for acceptance of amicus curiae submissions from businesses, unions, and nongovernmental organizations.

    (d) CERTIFICATION REQUIREMENTS- Within one year of the date of enactment of this Act, the U.S. Trade Representative shall certify to Congress that the President has fulfilled the requirements set forth in subsection (c).

SEC. 4202. EXPRESSION OF SOLIDARITY WITH ISRAEL IN ITS FIGHT AGAINST TERRORISM.

    (a) FINDINGS- Congress makes the following findings:

      (1) The United States and Israel are now engaged in a common struggle against terrorism and are on the frontlines of a conflict thrust upon them against their will.

      (2) President George W. Bush declared on November 21, 2001, ‘We fight the terrorists and we fight all of those who give them aid. America has a message for the nations of the world: If you harbor terrorists, you are terrorists. If you train or arm a terrorist, you are a terrorist. If you feed a terrorist or fund a terrorist, you are a terrorist, and you will be held accountable by the United States and our friends.’.

      (3) The United States has committed to provide resources to states on the frontline in the war against terrorism.

    (b) SENSE OF CONGRESS- The Congress--

      (1) stands in solidarity with Israel, a frontline state in the war against terrorism, as it takes necessary steps to provide security to its people by dismantling the terrorist infrastructure in the Palestinian areas;

      (2) remains committed to Israel’s right to self-defense;

      (3) will continue to assist Israel in strengthening its homeland defenses;

      (4) condemns Palestinian suicide bombings;

      (5) demands that the Palestinian Authority fulfill its commitment to dismantle the terrorist infrastructure in the Palestinian areas;

      (6) urges all Arab states, particularly the United States allies, Egypt and Saudi Arabia, to declare their unqualified opposition to all forms of terrorism, particularly suicide bombing, and to act in concert with the United States to stop the violence; and

      (7) urges all parties in the region to pursue vigorously efforts to establish a just, lasting, and comprehensive peace in the Middle East.

SEC. 4203. LIMITATION ON USE OF CERTAIN REVENUE.

    Notwithstanding any other provision of law, any revenue generated from custom user fees imposed pursuant to Section 13031(j)(3) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) may be used only to fund the operations of the United States Customs Service.

SEC. 4204. SENSE OF THE SENATE REGARDING THE UNITED STATES-RUSSIAN FEDERATION SUMMIT MEETING, MAY 2002.

    (a) FINDINGS- The Senate finds that--

      (1) President George W. Bush will visit the Russian Federation May 23-25, 2002, to meet with his Russian counterpart, President Vladimir V. Putin;

      (2) the President and President Putin, and the United States and Russian governments, continue to cooperate closely in the fight against international terrorism;

      (3) the President seeks Russian cooperation in containing the war-making capabilities of Iraq, including that country’s ongoing program to develop and deploy weapons of mass destruction;

      (4) during his visit, the President expects to sign a treaty to significantly reduce deployed American and Russian nuclear weapons by 2012;

      (5) the President and his NATO partners have further institutionalized United States-Russian security cooperation through establishment of the NATO-Russia Council, which meets for the first time on May 28, 2002, in Rome, Italy;

      (6) during his visit, the President will continue to address religious freedom and human rights concerns through open and candid discussions with President Putin, with leading Russian activists, and with representatives of Russia’s revitalized and diverse Jewish community; and

      (7) recognizing Russia’s progress on religious freedom and a broad range of other mechanisms to address remaining concerns, the President has asked the Congress to terminate application to Russian of title IV of the Trade Act of 1974 (commonly known as the ‘Jackson-Vanik Amendment’) and authorize the extension of normal trade relations to the products of Russia.

    (b) SENSE OF THE SENATE- The Senate--

      (1) supports the President’s efforts to deepen the friendship between the American and Russian peoples;

      (2) further supports the policy objectives of the President mentioned in this section with respect to the Russian Federation;

      (3) supports terminating the application of title IV of the Trade Act of 1974 to Russia in an appropriate and timely manner; and

      (4) looks forward to learning the results of the President’s discussions with President Putin and other representatives of the Russian government and Russian society.

SEC. 4205. NO APPROPRIATIONS.

    Notwithstanding any other provision of this Act, no direct appropriation may be made under this Act.

Attest:

Secretary.

107th CONGRESS

2d Session

H. R. 3009

AMENDMENT