BILL TRACKING REPORT: 107 Bill
Tracking H.R. 3009
FULL TEXT VERSION(S) OF BILL: 107 H.R. 3009
An Act
To extend the
Andean Trade Preference Act, to grant additional trade benefits under that Act,
and for other purposes.
Be it enacted by the
Senate and House of Representatives of the United States of America in Congress assembled,
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 5 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.
(5)
Division e.-- Miscellaneous 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
PROGRAM
Subtitle A--Trade Adjustment
Assistance For Workers
Sec. 111.
Reauthorization of trade adjustment assistance program.
Sec. 112. Filing of
petitions and provision of rapid response assistance; expedited review of
petitions by secretary of labor.
Sec. 113. Group
eligibility requirements.
Sec. 114. Qualifying
requirements for trade readjustment allowances.
Sec. 115. Waivers of
training requirements.
Sec. 116. Amendments to
limitations on trade readjustment allowances.
Sec. 117. Annual total
amount of payments for training.
Sec. 118. Provision of
employer-based training.
Sec. 119. Coordination
with title I of the Workforce Investment Act of 1998.
Sec. 120. Expenditure
period.
Sec. 121. Job search
allowances.
Sec. 122. Relocation
allowances.
Sec. 123. Repeal of
NAFTA transitional adjustment assistance program.
Sec. 124. Demonstration
project for alternative trade adjustment assistance for older workers.
Sec. 125. Declaration
of policy; sense of Congress.
Subtitle B--Trade Adjustment
Assistance For Firms
Sec. 131.
Reauthorization of program.
Subtitle C--Trade Adjustment
Assistance For Farmers
Sec. 141. Trade
adjustment assistance for farmers.
Sec. 142. Conforming
amendments.
Sec. 143. Study on TAA
for fishermen.
Subtitle D--Effective Date
Sec. 151. Effective
date.
TITLE II--CREDIT FOR HEALTH
INSURANCE COSTS OF ELIGIBLE INDIVIDUALS
Sec. 201. Credit for
health insurance costs of individuals receiving a trade readjustment allowance
or a benefit from the Pension Benefit Guaranty Corporation.
Sec. 202. Advance
payment of credit for health insurance costs of eligible individuals.
Sec. 203. Health
insurance assistance for eligible individuals.
TITLE III--CUSTOMS REAUTHORIZATION
Sec. 301. Short title.
Subtitle A--United States Customs Service
Chapter 1--Drug Enforcement and
Other Noncommercial and Commercial Operations
Sec. 311. Authorization
of appropriations for noncommercial operations, commercial operations, and air
and marine interdiction.
Sec. 312. Antiterrorist
and illicit narcotics detection equipment for the United States-Mexico border,
United States-Canada border, and Florida and the Gulf Coast seaports.
Sec. 313. Compliance
with performance plan requirements.
Chapter 2--Child Cyber-smuggling Center of the Customs Service
Sec. 321. Authorization
of appropriations for program to prevent child pornography/child sexual
exploitation.
Chapter 3--Miscellaneous Provisions
Sec. 331. Additional
Customs Service officers for United States-Canada Border.
Sec. 332. Study and
report relating to personnel practices of the Customs Service.
Sec. 333. Study and
report relating to accounting and auditing procedures of the Customs Service.
Sec. 334. Establishment
and implementation of cost accounting system; reports.
Sec. 335. Study and
report relating to timeliness of prospective rulings.
Sec. 336. Study and
report relating to customs user fees.
Sec. 337. Fees for
customs inspections at express courier facilities.
Sec. 338. National
Customs Automation Program.
Sec. 339. Authorization
of appropriations for customs staffing.
Chapter 4--Antiterrorism Provisions
Sec. 341. Immunity for United States officials that act in good faith.
Sec. 342. Emergency
adjustments to offices, ports of entry, or staffing of the customs service.
Sec. 343. Mandatory
advanced electronic information for cargo and other improved Customs reporting
procedures.
Sec. 343A. Secure
systems of transportation.
Sec. 344. Border search
authority for certain contraband in outbound mail.
Sec. 345. Authorization
of appropriations for reestablishment of customs operations in New York City.
Chapter 5--Textile Transshipment
Provisions
Sec. 351. GAO audit of
textile transshipment monitoring by Customs Service.
Sec. 352. Authorization
of appropriations for textile transshipment enforcement operations.
Sec. 353.
Implementation of the African Growth and Opportunity Act.
Subtitle B--Office of the United
States Trade Representative
Sec. 361. Authorization
of appropriations.
Subtitle C--United States International Trade Commission
Sec. 371. Authorization
of appropriations.
Subtitle D--Other trade provisions
Sec. 381. Increase in
aggregate value of articles exempt from duty acquired abroad by United States residents.
Sec. 382. Regulatory
audit procedures.
Sec. 383. Payment of
duties and fees.
DIVISION B--BIPARTISAN TRADE PROMOTION
AUTHORITY
TITLE XXI--TRADE PROMOTION AUTHORITY
Sec. 2101. Short title
and 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. Interests of
small business.
Sec. 2113. Definitions.
DIVISION C--ANDEAN TRADE PREFERENCE ACT
TITLE XXXI--ANDEAN TRADE PREFERENCE
Sec. 3101. Short title.
Sec. 3102. Findings.
Sec. 3103. Articles
eligible for preferential treatment.
Sec. 3104. Termination.
Sec. 3105. Report on
Free Trade Agreement with Israel.
Sec. 3106. Modification
of duty treatment for tuna.
Sec. 3107. Trade
benefits under the caribbean basin economic recovery
act.
Sec. 3108. Trade
benefits under the African Growth and Opportunity Act.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL
TRADE TREATMENT
TITLE XLI--EXTENSION OF GENERALIZED
SYSTEM OF PREFERENCES
Sec. 4101. Extension of
generalized system of preferences.
Sec. 4102. Amendments
to generalized system of preferences.
DIVISION E--MISCELLANEOUS PROVISIONS
TITLE L--MISCELLANEOUS TRADE
BENEFITS
Subtitle A--Wool Provisions
Sec. 5101. Wool
provisions.
Sec. 5102. Duty
suspension on wool.
Subtitle B--Other Provisions
Sec. 5201. Fund for WTO
dispute settlements.
Sec. 5202. Certain
steam or other vapor generating boilers used in nuclear facilities.
Sec. 5203. Sugar
tariff-rate quota circumvention.
Sec. 101. SHORT TITLE.
This division
may be cited as the "Trade Adjustment Assistance Reform Act of 2002".
(a) Assistance
for Workers.--Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is amended
by striking "October 1, 1998, and ending September
30, 2001,"
each place it appears and inserting "October 1, 2001, and ending September
30, 2007,".
(b) Assistance
for Firms.--Section 256(b) of the Trade Act of 1974 (19 U.S.C. 2346(b)) is
amended by striking "October 1, 1998, and ending September
30, 2001"
and inserting "October 1, 2001, and ending September
30, 2007,".
(c)
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
chapter 2 of this title; 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 farmers.----
(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 after September 30, 2007.
(B) Exception.--Notwithstanding subparagraph (A), an agricultural
commodity producer (as defined in section 291(2)) shall continue to receive
adjustment assistance benefits and other benefits under chapter 6, for any week
for which the agricultural commodity producer meets the eligibility
requirements of chapter 6, if on or before September 30, 2007, the agricultural
commodity producer is--
(i) certified as eligible for adjustment
assistance benefits under chapter 6; and
(ii) is otherwise eligible to receive adjustment assistance
benefits under such chapter 6.".
(a) Filing of
Petitions and Provision of Rapid Response Assistance.--Section 221(a) of the
Trade Act of 1974 (19 U.S.C. 2271(a)) is amended to read as follows:
(a)(1) A
petition for certification of eligibility to apply for adjustment assistance
for a group of workers under this chapter may be filed simultaneously with the
Secretary and with the Governor of the State in which such workers' firm or
subdivision is located by any of the following:
(A) The group of workers (including workers in an agricultural firm or
subdivision of any agricultural firm).
(B) The certified or recognized union or other duly authorized
representative of such workers.
(C) Employers of such workers, one-stop operators or one-stop partners
(as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C.
2801)), including State employment security agencies, or the State dislocated
worker unit established under title I of such Act, on behalf of such workers.
(2)
Upon receipt of a petition filed under paragraph (1), the Governor shall--
(A) ensure that rapid response assistance, and appropriate core and
intensive services (as described in section 134 of the Workforce Investment Act
of 1998 (29 U.S.C. 2864)) authorized under other Federal laws are made
available to the workers covered by the petition to the extent authorized under
such laws; and
(B) assist the Secretary in the review of the petition by verifying such
information and providing such other assistance as the Secretary may request.
(3)
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) Expedited
Review of Petitions by Secretary of Labor.--Section 223(a) of such Act (19
U.S.C. 2273(a)) is amended in the first sentence by striking "60
days" and inserting "40 days".
(a) Trade
Adjustment Assistance Program.--
(1)
In general.-- Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is amended--
(A) by amending subsection (a) to read as follows:
(a) In
General.--A group of workers (including workers in any agricultural firm or
subdivision of an agricultural firm) shall be certified by the Secretary as
eligible to apply for adjustment assistance under this chapter pursuant to a
petition filed under section 221 if the Secretary determines that--
(1)
a significant number or proportion of the workers in such 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
(2)(A) (i) the sales or production, or both, of
such firm or subdivision have decreased absolutely;
(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have increased; and
(iii) the increase in imports described in clause (ii) contributed
importantly to such workers' separation or threat of separation and to the
decline in the sales or production of such firm or subdivision; or(B)
(i) there has been a shift in production
by such workers' firm or subdivision to a foreign country of articles like or
directly competitive with articles which are produced by such firm or
subdivision; and
(ii)(ii) the country to which the workers' firm has shifted
production of the articles is a party to a free trade agreement with the United States;
(II) the country
to which the workers' firm has shifted production of the articles is a
beneficiary country under the Andean Trade Preference Act, African Growth and
Opportunity Act, or the Caribbean Basin Economic Recovery Act; or
(III) there has
been or is likely to be an increase in imports of articles that are like or
directly competitive with articles which are or were produced by such firm or
subdivision.";
(B) by redesignating subsection (b) as
subsection (c); and
(C) by inserting after subsection (a) the following:
(b) Adversely
affected secondary workers.--A group of workers (including workers in any
agricultural firm or subdivision of an agricultural firm) shall be certified by
the Secretary as eligible to apply for trade adjustment assistance benefits
under this chapter if the Secretary determines that--
(1)
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;
(2)
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 subsection (a), and such supply or
production is related to the article that was the basis for such certification
(as defined in subsection (c) (3) and (4)); and
(3)
either--
(A) the workers' firm is a supplier and the component parts it supplied
to the firm (or subdivision) described in paragraph (2) accounted for at least
20 percent of the production or sales of the workers' firm; or
(B) a loss of business by the workers' firm with the firm (or
subdivision) described in paragraph (2) contributed importantly to the workers'
separation or threat of separation determined under paragraph (1).".
(b)
Definitions.--Section 222(c) of such Act, as redesignated
by paragraph (1)(A), is amended--
(1)
in the matter preceding paragraph (1), by striking "subsection
(a)(3)" and inserting "this section"; and
(2)
by adding at the end the following:
(3)
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 subsection (a) of a group of workers
employed by such other firm, if the certification of eligibility under
subsection (a) is based on an increase in imports from, or a shift in
production to, Canada or Mexico.
(4)
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 subsection (a) of a
group of workers employed by such other firm.".
(a)
Clarification of Certain Reductions.--Section 231(a)(3)(B) of the Trade Act of
1974 (19 U.S.C. 2291(a)(3)(B)) is amended by inserting after "any unemployment
insurance" the following: ", except additional compensation that is
funded by a State and is not reimbursed from any Federal funds,".
(b) Enrollment
in Training Requirement.--Section 231(a)(5)(A) of such Act (19 U.S.C.
2291(a)(5)(A)) is amended--
(1)
by inserting (i)" after (A)";
(2)
by adding "and" after the comma at the end; and
(3)
by adding at the end the following:
(ii) the enrollment required under clause (i)
occurs no later than the latest of--
(I) the last day
of the 16th week after the worker's most recent total separation from adversely
affected employment which meets the requirements of paragraphs (1) and (2),
(II) the last
day of the 8th week after the week in which the Secretary issues a
certification covering the worker,
(III) 45 days
after the later of the dates specified in subclause
(I) or (II), if the Secretary determines there are extenuating circumstances
that justify an extension in the enrollment period, or
(IV) the last
day of a period determined by the Secretary to be approved for enrollment after
the termination of a waiver issued pursuant to subsection (c),".
(a) In
General.--Section 231(c) of the Trade Act of 1974 (19 U.S.C. 2291(c)) is
amended to read as follows:
(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)(5)(A) if the Secretary determines that it 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 therefor); 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.
(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 and shall notify the worker in writing of the
revocation.
(3)
Agreements under section 239.----
(A) Issuance by cooperating states.--Pursuant to an agreement under
section 239, the Secretary may authorize a cooperating State to issue waivers
as described in paragraph (1).
(B) Submission of statements.--An agreement under section 239 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.".
(b) Conforming
Amendment.--Section 231(a)(5)(C) of such Act (19 U.S.C. 2291(a)(5)(C)) is
amended by striking "certified".
(a) Increase in
Maximum Number of Weeks.--Section 233(a) of the Trade Act of 1974 (19 U.S.C.
2293(a)) is amended--
(1)
in paragraph (2), by inserting after "104-week period" the following:
(or, in the case of an adversely affected worker who requires a program of
remedial education (as described in section 236(a)(5)(D)) in order to complete
training approved for the worker under section 236, the 130-week period)";
and
(2)
in paragraph (3), by striking "26" each place it appears and
inserting "52".
(b) Special Rule
Relating to Break in Training.--Section 233(f) of the Trade Act of 1974 (19
U.S.C. 2293(f)) is amended in the matter preceding paragraph (1) by striking
"14 days" and inserting "30 days".
(c) Additional
Weeks for Individuals in Need of Remedial Education.--Section 233 of the Trade
Act of 1974 (19 U.S.C. 2293) is amended by adding at the end the following:
(g)
Notwithstanding any other provision of this section, in order to assist an
adversely affected worker to complete training approved for the worker under
section 236 which includes a program of remedial education (as described in
section 236(a)(5)(D)), and in accordance with regulations prescribed by the
Secretary, payments may be made as trade readjustment allowances for up to 26
additional weeks in the 26-week period that follows the last week of
entitlement to trade readjustment allowances otherwise payable under this
chapter.".
Section
236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C. 2296(a)(2)(A)) is amended by
striking "$ 80,000,000" and all that follows through "$
70,000,000" and inserting "$ 220,000,000".
(a) In
General.--Section 236(a)(5)(A) of the Trade Act of 1974 (19 U.S.C.
2296(a)(5)(A)) is amended to read as follows:
(A) employer-based training, including--
(i) on-the-job training, and
(ii) customized training,".
(b)
Reimbursement.--Section 236(c)(8) of such Act (19 U.S.C. 2296(c)(8)) is amended
to read as follows:
(8)
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,".
(c)
Definition.--Section 236 of such Act (19 U.S.C. 2296) is amended by adding at
the end the following new subsection:
(f) For purposes
of this section, the term 'customized training' means training that is--
(1)
designed to meet the special requirements of an employer or group of employers;
(2)
conducted with a commitment by the employer or group of employers to employ an
individual upon successful completion of the training; and
(3)
for which the employer pays for a significant portion (but in no case less than
50 percent) of the cost of such training, as determined by the Secretary.".
Section 235 of
the Trade Act of 1974 (19 U.S.C. 2295) is amended by inserting before the
period at the end of the first sentence the following: ", including the
services provided through one-stop delivery systems described in section 134(c)
of the Workforce Investment Act of 1998 (29 U.S.C. 2864(c))".
Section 245 of
the Trade Act of 1974 (19 U.S.C. 2317), as amended by section 111(a) of this
Act, is further amended by amending subsection (b) to read as follows:
(b) Period of
Expenditure.--Funds obligated for any fiscal year to carry out activities under
sections 235 through 238 may be expended by each State receiving such funds
during that fiscal year and the succeeding two fiscal years.".
Section 237 of
the Trade Act of 1974 (19 U.S.C. 2297) is amended to read as follows:
Sec. 237. JOB
SEARCH ALLOWANCES.
(a) Job Search
Allowance Authorized.--
(1)
In general.-- An adversely affected worker covered by a certification issued
under subchapter A of this chapter 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
231(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 236(b) (1) and (2).
(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.".
Section 238 of
the Trade Act of 1974 (19 U.S.C. 2298) is amended to read as follows:
Sec. 238.
RELOCATION ALLOWANCES.
(a) Relocation
Allowance Authorized.--
(1)
In general.-- Any adversely affected worker covered by a certification issued
under subchapter A of this chapter 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 subchapter A of this chapter; 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
231(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 236(b) (1) and (2) 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
236(b) (1) and (2).".
(a) In
General.--Subchapter D of chapter 2 of title II of such Act (19 U.S.C. 2331) is
repealed.
(b) Conforming
Amendments.--
(1)
Section 225(b) (1) and (2) of the Trade Act of 1974 (19 U.S.C. 2275(b) (1) and
(2)) is amended by striking "or subchapter D" each place it appears.
(2)
Section 249A of such Act (19 U.S.C. 2322) is repealed.
(3)
The table of contents of such Act is amended--
(A) by striking the item relating to section 249A; and
(B) by striking the items relating to subchapter D of chapter 2 of title
II.
(4)
Section 284(a) of such Act is amended by striking "or section
250(c)".
(c) Effective
Date.--
(1)
In general.-- The amendments made by this section shall apply with respect to
petitions filed under chapter 2 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.
(2)
Workers certified as eligible before effective date.-- Notwithstanding
subsection (a), a worker receiving benefits under chapter 2 of title II of the
Trade Act of 1974 shall continue to receive (or be eligible to receive)
benefits and services under chapter 2 of title II of the Trade Act of 1974, as
in effect on the day before the amendments made by this section take effect
under subsection (a), for any week for which the worker meets the eligibility
requirements of such chapter 2 as in effect on such date.
(a)
Demonstration Program.--Chapter 2 of title II of the Trade Act of 1974 (19
U.S.C. 2271 et seq.) is amended by striking section 246 and inserting the
following new section:
Sec. 246.
DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE FOR OLDER
WORKERS.
(a) In
General.--
(1)
Establishment.-- Not later than 1 year after the date of enactment of the Trade
Adjustment Assistance Reform Act of 2002, the Secretary shall establish an
alternative trade adjustment assistance program for older workers that provides
the benefits described in paragraph (2).
(2)
Benefits.--
(A) Payments.--A State shall use the funds provided to the State under
section 241 to pay, for a period not to exceed 2 years, to a worker described
in paragraph (3)(B), 50 percent of the difference between--
(i) the wages received by the worker
from reemployment; and
(ii) the wages received by the worker at the time of separation.
(B) Health insurance.--A worker described in paragraph (3)(B)
participating in the program established under paragraph (1) is eligible to
receive, for a period not to exceed 2 years, a credit for health insurance
costs under section 35 of the Internal Revenue Code of 1986, as added by
section 201 of the Trade Act of 2002.
(3)
Eligibility.----
(A) Firm eligibility.--
(i) In general.--The Secretary shall
provide the opportunity for a group of workers on whose behalf a petition is
filed under section 221 to request that the group of workers be certified for
the alternative trade adjustment assistance program under this section at the
time the petition is filed.
(ii) Criteria.--In determining whether to certify a group of
workers as eligible for the alternative trade adjustment assistance program,
the Secretary shall consider the following criteria:
(I) Whether a
significant number of workers in the workers' firm are 50 years of age or
older.
(II) Whether the
workers in the workers' firm possess skills that are not easily transferable.
(III) The
competitive conditions within the workers' industry.
(iii) Deadline.--The Secretary shall determine whether the workers
in the group are eligible for the alternative trade adjustment assistance
program by the date specified in section 223(a).
(B) Individual Eligibility.--A worker in the group that the Secretary has
certified as eligible for the alternative trade adjustment assistance program
may elect to receive benefits under the alternative trade adjustment assistance
program if the worker--
(i) is covered by a certification under
subchapter A of this chapter;
(ii) obtains reemployment not more than 26 weeks after the date of
separation from the adversely affected employment;
(iii) is at least 50 years of age; and
(iv) earns not more than $ 50,000 a year in wages from
reemployment;
(v) is employed on a full-time basis as defined by State law in
the State in which the worker is employed; and
(vi) does not return to the employment from which the worker was
separated.
(4)
Total amount of payments.-- The payments described in paragraph (2)(A) made to
a worker may not exceed $ 10,000 per worker during the 2-year eligibility
period.
(5)
Limitation on other benefits.-- Except as provided in section 238(a)(2)(B), if
a worker is receiving payments pursuant to the program established under
paragraph (1), the worker shall not be eligible to receive any other benefits
under this title.
(b)
Termination.--
(1)
In general.-- Except as provided in paragraph (2), no payments may be made by a
State under the program established under subsection (a)(1) after the date that
is 5 years after the date on which such program is implemented by the State.
(2)
Exception.-- Notwithstanding paragraph (1), a worker receiving payments under
the program established under subsection (a)(1) on the termination date described
in paragraph (1) shall continue to receive such payments provided that the
worker meets the criteria described in subsection (a)(3)(B).".
(b) Table of
Contents.--The Trade Act of 1974 (U.S.C. et seq.) is amended in the table of
contents by inserting after the item relating to section 245 the following new
item:
Sec. 246. Demonstration
project for alternative trade adjustment assistance for older workers.".
(a) Declaration
of Policy.--Congress reiterates that, under the trade adjustment assistance
program under chapter 2 of title II of the Trade Act of 1974, workers are
eligible for transportation, childcare, and healthcare assistance, as well as
other related assistance under programs administered by the Department of
Labor.
(b) Sense of
Congress.--It is the sense of Congress that the Secretary of Labor, working
independently and in conjunction with the States, should, in accordance with
section 225 of the Trade Act of 1974, provide more specific information about
benefit allowances, training, and other employment services, and the petition
and application procedures (including appropriate filing dates) for such
allowances, training, and services, under the trade adjustment assistance program
under chapter 2 of title II of the Trade Act of 1974 to workers who are
applying for, or are certified to receive, assistance under that program,
including information on all other Federal assistance available to such
workers.
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 2003 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.".
(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) 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)).
(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 and in
which 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 agricultural
commodity 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)
Limitations.----
(A) Adjusted gross income.--
(i) 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 the level set forth in section
1001D of the Food Security Act of 1985.
(ii) 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 the level set forth in section 1001D of the Food
Security Act of 1985; or
(II) information
and documentation regarding the adjusted gross income of the producer through
other procedures established by the Secretary.
(B) Counter-cyclical payments.--The total amount of payments made to an
agricultural producer under this chapter during any crop year may not exceed
the limitation on counter-cyclical payments set forth in section 1001(c) of the
Food Security Act of 1985.
(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 II of
subchapter B 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 2003 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.
(a) Judicial
review.--
(1)
Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a)) is amended--
(A) by inserting "an agricultural commodity producer (as defined in
section 291(2)) aggrieved by a determination of the Secretary of Agriculture
under section 293, " after Section 251 of this title,"; and
(B) in the second sentence of subsection (a) and in subsections (b) and
(c), by striking "or the Secretary of Commerce" each place it appears
and inserting ", the Secretary of Commerce, or the Secretary of
Agriculture".
(b) Chapters
6.--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
T16--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.".
Not later than 1
year after the date of enactment of this Act, the Secretary of Commerce shall
conduct a study and report to Congress regarding whether a trade adjustment
assistance program is appropriate and feasible for fishermen. For purposes of
the preceding sentence, the term "fishermen" means any person who is
engaged in commercial fishing or is a United States fish processor.
(a) In
General.--Except as otherwise provided in sections 123(c) and 141(b), and
subsections (b), (c), and (d) of this section, the amendments made by this
division shall apply to 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.
(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 of 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.
(a) In
General.--Subpart C of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 35 as section 36 and inserting after
section 34 the following new section:
(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 65 percent of the
amount paid by the taxpayer for coverage of the taxpayer and qualifying family
members under qualified health insurance for eligible coverage months beginning
in the taxable year.
(b) Eligible
Coverage Month.--For purposes of this section--
(1)
In general.-- The term 'eligible coverage month' means any month if--
(A) as of the first day of such month, the taxpayer--
(i) is an eligible individual,
(ii) is covered by qualified health insurance, the premium for
which is paid by the taxpayer,
(iii) does not have other specified coverage, and
(iv) is not imprisoned under Federal, State, or local authority,
and
(B) such month begins more than 90 days after the date of the enactment
of the Trade Act of 2002.
(2)
Joint returns.-- In the case of a joint return, the requirements of paragraph
(1)(A) shall be treated as met with respect to any month if at least 1 spouse
satisfies such requirements.
(c) Eligible
Individual.--For purposes of this section--
(1)
In general.-- The term 'eligible individual' means--
(A) an eligible TAA recipient,
(B) an eligible alternative TAA recipient, and
(C) an eligible PBGC pension recipient.
(2)
Eligible taa recipient.-- The term 'eligible TAA
recipient' means, with respect to any month, any individual who is receiving
for any day of such month a trade readjustment allowance under chapter 2 of
title II of the Trade Act of 1974 or who would be eligible to receive such
allowance if section 231 of such Act were applied without regard to subsection
(a)(3)(B) of such section. An individual shall continue to be treated as an
eligible TAA recipient during the first month that such individual would
otherwise cease to be an eligible TAA recipient by reason of the preceding sentence.
(3)
Eligible alternative taa recipient.-- The term
'eligible alternative TAA recipient' means, with respect to any month, any
individual who--
(A) is a worker described in section 246(a)(3)(B) of the Trade Act of
1974 who is participating in the program established under section 246(a)(1) of
such Act, and
(B) is receiving a benefit for such month under section 246(a)(2) of such
Act.
An individual
shall continue to be treated as an eligible alternative TAA recipient during
the first month that such individual would otherwise cease to be an eligible
alternative TAA recipient by reason of the preceding sentence.
(4)
Eligible pbgc pension recipient.-- The term 'eligible
PBGC pension recipient' means, with respect to any month, any individual who--
(A) has attained age 55 as of the first day of such month, and
(B) is receiving a benefit for such month any portion of which is paid by
the Pension Benefit Guaranty Corporation under title IV of the Employee
Retirement Income Security Act of 1974.
(d) Qualifying
Family Member.--For purposes of this section--
(1)
In general.-- The term 'qualifying family member' means--
(A) the taxpayer's spouse, and
(B) any dependent of the taxpayer with respect to whom the taxpayer is
entitled to a deduction under section 151(c).
Such term does
not include any individual who has other specified coverage.
(2)
Special dependency test in case of divorced parents, etc.-- If paragraph (2) or
(4) of section 152(e) applies to any child with respect to any calendar year,
in the case of any taxable year beginning in such calendar year, such child
shall be treated as described in paragraph (1)(B) with respect to the custodial
parent (within the meaning of section 152(e)(1)) and not with respect to the noncustodial parent.
(e) Qualified
Health Insurance.--For purposes of this section--
(1)
In general.-- The term 'qualified health insurance' means any of the following:
(A) Coverage under a COBRA continuation provision (as defined in section
9832(d)(1)).
(B) State-based continuation coverage provided by the State under a State
law that requires such coverage.
(C) Coverage offered through a qualified State high risk pool (as defined
in section 2744(c)(2) of the Public Health Service Act).
(D) Coverage under a health insurance program offered for State
employees.
(E) Coverage under a State-based health insurance program that is
comparable to the health insurance program offered for State employees.
(F) Coverage through an arrangement entered into by a State and--
(i) a group health plan (including such
a plan which is a multiemployer plan as defined in section 3(37) of the
Employee Retirement Income Security Act of 1974),
(ii) an issuer of health insurance coverage,
(iii) an administrator, or
(iv) an employer.
(G) Coverage offered through a State arrangement with a private sector
health care coverage purchasing pool.
(H) Coverage under a State-operated health plan that does not receive any
Federal financial participation.
(I) Coverage under a group health plan that is available through the
employment of the eligible individual's spouse.
(J) In the case of any eligible individual and such individual's qualifying
family members, coverage under individual health insurance if the eligible
individual was covered under individual health insurance during the entire
30-day period that ends on the date that such individual became separated from
the employment which qualified such individual for--
(i) in the case of an eligible TAA
recipient, the allowance described in subsection (c)(2),
(ii) in the case of an eligible alternative TAA recipient, the
benefit described in subsection (c)(3)(B), or
(iii) in the case of any eligible PBGC pension recipient, the benefit
described in subsection (c)(4)(B).
For purposes of
this subparagraph, the term 'individual health insurance' means any insurance
which constitutes medical care offered to individuals other than in connection
with a group health plan and does not include Federal- or State-based health
insurance coverage.
(2)
Requirements for state-based coverage.----
(A) In general.--The term 'qualified health insurance' does not include
any coverage described in subparagraphs (B) through (H) of paragraph (1) unless
the State involved has elected to have such coverage treated as qualified
health insurance under this section and such coverage meets the following
requirements:
(i) Guaranteed issue.--Each qualifying
individual is guaranteed enrollment if the individual pays the premium for
enrollment or provides a qualified health insurance costs credit eligibility
certificate described in section 7527 and pays the remainder of such premium.
(ii) No imposition of preexisting condition exclusion.--No
pre-existing condition limitations are imposed with respect to any qualifying
individual.
(iii) Nondiscriminatory premium.--The total premium (as determined
without regard to any subsidies) with respect to a qualifying individual may
not be greater than the total premium (as so determined) for a similarly
situated individual who is not a qualifying individual.
(iv) Same benefits.--Benefits under the coverage are the same as
(or substantially similar to) the benefits provided to similarly situated
individuals who are not qualifying individuals.
(B) Qualifying individual.--For purposes of this paragraph, the term
'qualifying individual' means--
(i) an eligible individual for whom, as
of the date on which the individual seeks to enroll in the coverage described
in subparagraphs (B) through (H) of paragraph (1), the aggregate of the periods
of creditable coverage (as defined in section 9801(c)) is 3 months or longer
and who, with respect to any month, meets the requirements of clauses (iii) and
(iv) of subsection (b)(1)(A); and
(ii) the qualifying family members of such eligible individual.
(3)
Exception.-- The term 'qualified health insurance' shall not include--
(A) a flexible spending or similar arrangement, and
(B) any insurance if substantially all of its coverage is of excepted
benefits described in section 9832(c).
(f) Other
Specified Coverage.--For purposes of this section, an individual has other
specified coverage for any month if, as of the first day of such month--
(1)
Subsidized coverage.----
(A) In general.--Such individual is covered under any insurance which
constitutes medical care (except insurance substantially all of the coverage of
which is of excepted benefits described in section 9832(c)) under any health
plan maintained by any employer (or former employer) of the taxpayer or the
taxpayer's spouse and at least 50 percent of the cost of such coverage
(determined under section 4980B) is paid or incurred by the employer.
(B) Eligible alternative taa recipients.--In
the case of an eligible alternative TAA recipient, such individual is either--
(i) eligible for coverage under any
qualified health insurance (other than insurance described in subparagraph (A),
(B), or (F) of subsection (e)(1)) under which at least 50 percent of the cost
of coverage (determined under section 4980B(f)(4)) is paid or incurred by an
employer (or former employer) of the taxpayer or the taxpayer's spouse, or
(ii) covered under any such qualified health insurance under which
any portion of the cost of coverage (as so determined) is paid or incurred by
an employer (or former employer) of the taxpayer or the taxpayer's spouse.
(C) Treatment of cafeteria plans.--For purposes of subparagraphs (A) and
(B), the cost of coverage shall be treated as paid or incurred by an employer
to the extent the coverage is in lieu of a right to receive cash or other
qualified benefits under a cafeteria plan (as defined in section 125(d)).
(2)
Coverage under medicare, medicaid,
or schip.-- Such individual--
(A) 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
(B) is enrolled in the program under title XIX or XXI of such Act (other
than under section 1928 of such Act).
(3)
Certain other coverage.-- Such individual--
(A) is enrolled in a health benefits plan under chapter 89 of title 5,
United States Code, or
(B) is entitled to receive benefits under chapter 55 of title 10, United
States Code.
(g) Special
Rules.--
(1)
Coordination with advance payments of credit.-- With respect to any taxable
year, the amount which would (but for this subsection) be allowed as a credit
to the taxpayer under subsection (a) shall be reduced (but not below zero) by
the aggregate amount paid on behalf of such taxpayer under section 7527 for
months beginning in such taxable year.
(2)
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.
(3)
MSA distributions.-- Amounts distributed from an Archer MSA (as defined in
section 220(d)) shall not be taken into account under subsection (a).
(4)
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.
(5)
Both spouses eligible individuals.-- The spouse of the taxpayer shall not be
treated as a qualifying family member for purposes of subsection (a), if--
(A) the taxpayer is married at the close of the taxable year,
(B) the taxpayer and the taxpayer's spouse are both eligible individuals
during the taxable year, and
(C) the taxpayer files a separate return for the taxable year.
(6)
Marital status; certain married individuals living apart.-- Rules similar to
the rules of paragraphs (3) and (4) of section 21(e) shall apply for purposes
of this section.
(7)
Insurance which covers other individuals.-- For purposes of this section, rules
similar to the rules of section 213(d)(6) shall apply with respect to any
contract for qualified health insurance under which amounts are payable for
coverage of an individual other than the taxpayer and qualifying family
members.
(8)
Treatment of payments.-- For purposes of this section--
(A) Payments by secretary.--Payments made by the Secretary on behalf of
any individual under section 7527 (relating to advance payment of credit for
health insurance costs of eligible individuals) shall be treated as having been
made by the taxpayer on the first day of the month for which such payment was
made.
(B) Payments by taxpayer.--Payments made by the taxpayer for eligible
coverage months shall be treated as having been made by the taxpayer on the first
day of the month for which such payment was made.
(9)
Regulations.-- The Secretary may prescribe such regulations and other guidance
as may be necessary or appropriate to carry out this section, section 6050T,
and section 7527.".
(b) Promotion of
State High Risk Pools.--Title XXVII of the Public Health Service Act is amended
by inserting after section 2744 the following new section:
Sec. 2745.
PROMOTION OF QUALIFIED HIGH RISK POOLS.
(a) Seed Grants
to States.--The Secretary shall provide from the funds appropriated under
subsection (c)(1) a grant of up to $ 1,000,000 to each State that has not
created a qualified high risk pool as of the date of the enactment of this
section for the State's costs of creation and initial operation of such a pool.
(b) Matching
Funds for Operation of Pools.--
(1)
In general.-- In the case of a State that has established a qualified high risk
pool that--
(A) restricts premiums charged under the pool to no more than 150 percent
of the premium for applicable standard risk rates;
(B) offers a choice of two or more coverage options through the pool; and
(C) has in effect a mechanism reasonably designed to ensure continued
funding of losses incurred by the State after the end of fiscal year 2004 in
connection with operation of the pool;
the Secretary
shall provide, from the funds appropriated under subsection (c)(2) and allotted
to the State under paragraph (2), a grant of up to 50 percent of the losses
incurred by the State in connection with the operation of the pool.
(2)
Allotment.-- The amounts appropriated under subsection (c)(2) for a fiscal year
shall be made available to the States in accordance with a formula that is
based upon the number of uninsured individuals in the States.
(c) Funding.--Out
of any money in the Treasury of the United States not otherwise appropriated, there
are authorized and appropriated--
(1)
$ 20,000,000 for fiscal year 2003 to carry out subsection (a); and
(2)
$ 40,000,000 for each of fiscal years 2003 and 2004 to carry out subsection
(b).
Funds
appropriated under this subsection for a fiscal year shall remain available for
obligation through the end of the following fiscal year. Nothing in this
section shall be construed as providing a State with an entitlement to a grant
under this section.
(d) Qualified
High Risk Pool and State Defined.--For purposes of this section, the term
'qualified high risk pool' has the meaning given such term in section
2744(c)(2) and the term 'State' means any of the 50 States and the District of
Columbia.".
(c) 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 35 of such Code".
(2)
The table of sections for subpart C of part IV of chapter 1 of the Internal
Revenue Code of 1986 is amended by striking the last item and inserting the
following new items:
Sec. 35. Health
insurance costs of eligible individuals.
Sec. 36.
Overpayments of tax.".
(d) Effective
Date.--
(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.
(2)
State high risk pools.-- The amendment made by subsection (b) shall take effect
on the date of the enactment of this Act.
(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 CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.
(a) General
Rule.--Not later than August 1, 2003, the Secretary shall establish a program
for making payments on behalf of certified individuals to providers of
qualified health insurance (as defined in section 35(e)) for such individuals.
(b) Limitation
on Advance Payments During any Taxable Year.--The Secretary may make payments
under subsection (a) only to the extent that the total amount of such payments
made on behalf of any individual during the taxable year does not exceed 65
percent of the amount paid by the taxpayer for coverage of the taxpayer and
qualifying family members under qualified health insurance for eligible
coverage months beginning in the taxable year.
(c) Certified
Individual.--For purposes of this section, the term 'certified individual'
means any individual for whom a qualified health insurance costs credit
eligibility certificate is in effect.
(d) Qualified
Health Insurance Costs Credit Eligibility Certificate.--For purposes of this
section, the term 'qualified health insurance costs credit eligibility
certificate' means any written statement that an individual is an eligible
individual (as defined in section 35(c)) if such statement provides such
information as the Secretary may require for purposes of this section and--
(1)
in the case of an eligible TAA recipient (as defined in section 35(c)(2)) or an
eligible alternative TAA recipient (as defined in section 35(c)(3)), is
certified by the Secretary of Labor (or by any other person or entity
designated by the Secretary), or
(2)
in the case of an eligible PBGC pension recipient (as defined in section
35(c)(4)), is certified by the Pension Benefit Guaranty Corporation (or by any
other person or entity designated by the Secretary).".
(b) Disclosure
of Return Information for Purposes of Carrying out a Program for Advance
Payment of Credit for Health Insurance Costs of Eligible Individuals.--
(1)
In general.-- Subsection (l) of section 6103 of such Code (relating to
disclosure of returns and return information for purposes other than tax
administration) is amended by adding at the end the following new paragraph:
(18) Disclosure of return information for purposes of carrying out a
program for advance payment of credit for health insurance costs of eligible
individuals.-- The Secretary may disclose to providers of health insurance for
any certified individual (as defined in section 7527(c)) return information with
respect to such certified individual only to the extent necessary to carry out
the program established by section 7527 (relating to advance payment of credit
for health insurance costs of eligible individuals).".
(2)
Procedures and recordkeeping related to disclosures.-- Subsection (p) of such
section is amended--
(A) in paragraph (3)(A) by striking "or (17)" and inserting
(17), or (18)", and
(B) in paragraph (4) by inserting "or (17)" after "any
other person described in subsection (l)(16)" each place it appears.
(3)
Unauthorized inspection of returns or return information.-- Section
7213A(a)(1)(B) of such Code is amended by striking Section 6103(n)" and
inserting "subsection (l)(18) or (n) of section 6103".
(c) 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 CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.
(a) Requirement
of Reporting.--Every person who is entitled to receive payments for any month
of any calendar year under section 7527 (relating to advance payment of credit
for health insurance costs of eligible individuals) with respect to any
certified individual (as defined in section 7527(c)) shall, at such time as the
Secretary may prescribe, make the return described in subsection (b) with
respect to each such individual.
(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 number of months for which amounts were entitled to be received
with respect to such individual under section 7527 (relating to advance payment
of credit for health insurance costs of eligible individuals),
(C) the amount entitled to be received for each such month, 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.".
(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 credit for
health insurance costs of eligible individuals),".
(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 credit for health insurance costs of
eligible individuals).".
(d) Clerical
Amendments.--
(1)
Advance payment.-- 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 credit for health insurance costs of eligible
individuals.".
(2)
Information reporting.-- 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 credit for health insurance costs of eligible
individuals.".
(e) Effective
Date.--The amendments made by this section shall take effect on the date of the
enactment of this Act.
(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 or entity (as defined in section 173(c)(1)(B)) to carry
out subsection (f), including providing assistance to eligible individuals; and
(B) to a State or entity (as so defined) to carry out subsection (g),
including providing assistance to eligible individuals.".
(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 Individuals.--
(1)
In general.-- Funds made available to a State or entity under paragraph (4)(A)
of subsection (a) may be used by the State or entity for the following:
(A) Health insurance coverage.--To assist an eligible individual and such
individual's qualifying family members in enrolling in qualified health
insurance.
(B) Administrative and start-up expenses.--To pay the administrative
expenses related to the enrollment of eligible individuals and such
individuals' qualifying family members in qualified health insurance,
including--
(i) eligibility verification activities;
(ii) the notification of eligible individuals of available
qualified health insurance options;
(iii) processing qualified health insurance costs credit
eligibility certificates provided for under section 7527 of the Internal
Revenue Code of 1986;
(iv) providing assistance to eligible individuals in enrolling in
qualified health insurance;
(v) the development or installation of necessary data management
systems; and
(vi) any other expenses determined appropriate by the Secretary,
including start-up costs and on going administrative expenses to carry out
clauses (iv) through (ix) of paragraph (2)(A).
(2)
Qualified health insurance.-- For purposes of this subsection and subsection
(g)--
(A) In general.--The term 'qualified health insurance' means any of the
following:
(i) Coverage under a COBRA continuation
provision (as defined in section 733(d)(1) of the Employee Retirement Income
Security Act of 1974).
(ii) State-based continuation coverage provided by the State under
a State law that requires such coverage.
(iii) Coverage offered through a qualified State high risk pool
(as defined in section 2744(c)(2) of the Public Health Service Act).
(iv) Coverage under a health insurance program offered for State
employees.
(v) Coverage under a State-based health insurance program that is
comparable to the health insurance program offered for State employees.
(vi) Coverage through an arrangement entered into by a State and--
(I) a group
health plan (including such a plan which is a multiemployer plan as defined in
section 3(37) of the Employee Retirement Income Security Act of 1974),
(II) an issuer
of health insurance coverage,
(III) an
administrator, or
(IV) an
employer.
(vii) Coverage offered through a State arrangement with a private
sector health care coverage purchasing pool.
(viii) Coverage under a State-operated health plan that does not
receive any Federal financial participation.
(ix) Coverage under a group health plan that is available through
the employment of the eligible individual's spouse.
(x) In the case of any eligible individual and such individual's
qualifying family members, coverage under individual health insurance if the
eligible individual was covered under individual health insurance during the
entire 30-day period that ends on the date that such individual became
separated from the employment which qualified such individual for--
(I) in the case
of an eligible TAA recipient, the allowance described in section 35(c)(2) of
the Internal Revenue Code of 1986,
(II) in the case
of an eligible alternative TAA recipient, the benefit described in section
35(c)(3)(B) of such Code, or
(III) in the
case of any eligible PBGC pension recipient, the benefit described in section
35(c)(4)(B) of such Code. For purposes of this clause, the term 'individual
health insurance' means any insurance which constitutes medical care offered to
individuals other than in connection with a group health plan and does not
include Federal- or State-based health insurance coverage.
(B) Requirements for state-based coverage.--
(i) In general.--The term 'qualified
health insurance' does not include any coverage described in clauses (ii)
through (viii) of subparagraph (A) unless the State involved has elected to
have such coverage treated as qualified health insurance under this paragraph
and such coverage meets the following requirements:
(I) Guaranteed
issue.--Each qualifying individual is guaranteed enrollment if the individual
pays the premium for enrollment or provides a qualified health insurance costs
credit eligibility certificate described in section 7527 of the Internal
Revenue Code of 1986 and pays the remainder of such premium.
(II) No
imposition of preexisting condition exclusion.--No pre-existing condition
limitations are imposed with respect to any qualifying individual.
(III)
Nondiscriminatory premium.--The total premium (as determined without regard to
any subsidies) with respect to a qualifying individual may not be greater than
the total premium (as so determined) for a similarly situated individual who is
not a qualifying individual.
(IV) Same
benefits.--Benefits under the coverage are the same as (or substantially
similar to) the benefits provided to similarly situated individuals who are not
qualifying individuals.
(ii) Qualifying individual.--For purposes of this subparagraph,
the term 'qualifying individual' means--
(I) an eligible
individual for whom, as of the date on which the individual seeks to enroll in
clauses (ii) through (viii) of subparagraph (A), the aggregate of the periods
of creditable coverage (as defined in section 9801(c) of the Internal Revenue
Code of 1986) is 3 months or longer and who, with respect to any month, meets
the requirements of clauses (iii) and (iv) of section 35(b)(1)(A) of such Code;
and
(II) the
qualifying family members of such eligible individual.
(C) Exception.--The term 'qualified health insurance' shall not include--
(i) a flexible spending or similar
arrangement, and
(ii) any insurance if substantially all of its coverage is of
excepted benefits described in section 733(c) of the Employee Retirement Income
Security Act of 1974.
(3)
Availability of funds.----
(A) Expedited procedures.--With respect to applications submitted by
States or entities 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 or
entity, notify the State or entity of the determination of the Secretary with
respect to the approval or disapproval of such application;
(ii) in the case of an application of a State or other entity that
is disapproved by the Secretary, provide technical assistance, at the request
of the State or entity, in a timely manner to enable the State or entity to
submit an approved application; and
(iii) develop procedures to expedite the provision of funds to
States and entities 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 and entities throughout the period described
in section 174(c)(2)(A).
(4)
Eligible individual defined.-- For purposes of this subsection and subsection
(g), the term 'eligible individual' means--
(A) an eligible TAA recipient (as defined in section 35(c)(2) of the
Internal Revenue Code of 1986),
(B) an eligible alternative TAA recipient (as defined in section 35(c)(3)
of the Internal Revenue Code of 1986), and
(C) an eligible PBGC pension recipient (as defined in section 35(c)(4) of
the Internal Revenue Code of 1986),
who, as of the
first day of the month, does not have other specified coverage and is not
imprisoned under Federal, State, or local authority.
(5)
Qualifying family member defined.-- For purposes of this subsection and
subsection (g)--
(A) In general.--The term 'qualifying family member' means--
(i) the eligible individual's spouse,
and
(ii) any dependent of the eligible individual with respect to whom
the individual is entitled to a deduction under section 151(c) of the Internal
Revenue Code of 1986.
Such term does
not include any individual who has other specified coverage.
(B) Special dependency test in case of divorced parents, etc.--If
paragraph (2) or (4) of section 152(e) of such Code applies to any child with
respect to any calendar year, in the case of any taxable year beginning in such
calendar year, such child shall be treated as described in subparagraph (A)(ii)
with respect to the custodial parent (within the meaning of section 152(e)(1) of
such Code) and not with respect to the noncustodial
parent.
(6)
State.-- For purposes of this subsection and subsection (g), the term 'State'
includes an entity as defined in subsection (c)(1)(B).
(7)
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 insurance which constitutes medical care (except insurance
substantially all of the coverage of which is of excepted benefits described in
section 9832(c) of the Internal Revenue Code of 1986) under any health plan
maintained by any employer (or former employer) of the taxpayer or the
taxpayer's spouse and at least 50 percent of the cost of such coverage
(determined under section 4980B of such Code) is paid or incurred by the
employer.
(ii) Eligible alternative taa
recipients.--In the case of an eligible alternative TAA recipient (as defined
in section 35(c)(3) of the Internal Revenue Code of 1986), such individual is
either--
(I) eligible for
coverage under any qualified health insurance (other than insurance described
in clause (i), (ii), or (vi) of paragraph (2)(A))
under which at least 50 percent of the cost of coverage (determined under
section 4980B(f)(4) of such Code) is paid or incurred by an employer (or former
employer) of the taxpayer or the taxpayer's spouse, or
(II) covered
under any such qualified health insurance under which any portion of the cost
of coverage (as so determined) is paid or incurred by an employer (or former
employer) of the taxpayer or the taxpayer's spouse.
(iii) Treatment of cafeteria plans.--For purposes of clauses (i) and (ii), the cost of coverage shall be treated as paid
or incurred by an employer to the extent the coverage is in lieu of a right to
receive cash or other qualified benefits under a cafeteria plan (as defined in
section 125(d) of the Internal Revenue Code of 1986).
(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 of such Act).
(C) Certain other coverage.--Such individual--
(i) is enrolled in a health benefits
plan under chapter 89 of title 5, United States Code, or
(ii) is entitled to receive benefits under chapter 55 of title 10,
United States Code.
(g) Interim
Health Insurance Coverage and Other Assistance.--
(1)
In general.-- Funds made available to a State or entity under paragraph (4)(B)
of subsection (a) may be used by the State or entity to provide assistance and
support services to eligible individuals, including health care coverage to the
extent provided under subsection (f)(1)(A), transportation, child care,
dependent care, and income assistance.
(2)
Income support.-- With respect to any income assistance provided to an eligible
individual 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 Act of 2002) or the unemployment compensation laws
of the State where the eligible individual resides.
(3)
Health insurance coverage.-- With respect to any assistance provided to an
eligible individual with such funds in enrolling in qualified health insurance,
the following rules shall apply:
(A) The State or entity may provide assistance in obtaining such coverage
to the eligible individual and to such individual's qualifying family members.
(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 or entities 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 or
entity, notify the State or entity of the determination of the Secretary with
respect to the approval or disapproval of such application;
(ii) in the case of an application of a State or entity that is
disapproved by the Secretary, provide technical assistance, at the request of
the State or entity, in a timely manner to enable the State or entity to submit
an approved application; and
(iii) develop procedures to expedite the provision of funds to
States and entities 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 and entities throughout the period described
in section 174(c)(2)(B).
(5)
Inclusion of certain individuals as eligible individuals.-- For purposes of
this subsection, the term 'eligible individual' includes 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 Act of 2002) and is participating in the trade adjustment
allowance program under such chapter (as so in effect) or who would be determined
to be participating in such program under such chapter (as so in effect) if
such chapter were applied without regard to section 231(a)(3)(B) of the Trade
Act of 1974 (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)
Authorization and appropriation for fiscal year 2002.-- There are authorized to
be appropriated and appropriated--
(A) to carry out subsection (a)(4)(A) of section 173, $ 10,000,000 for
fiscal year 2002; and
(B) to carry out subsection (a)(4)(B) of section 173, $ 50,000,000 for
fiscal year 2002.
(2)
Authorization of appropriations for subsequent fiscal years.-- There are
authorized to be appropriated--
(A) to carry out subsection (a)(4)(A) of section 173, $ 60,000,000 for
each of fiscal years 2003 through 2007; and
(B) to carry out subsection (a)(4)(B) of section 173--
(i) $ 100,000,000 for fiscal year 2003;
and
(ii) $ 50,000,000 for fiscal year 2004.
(3)
Availability of funds.-- Funds appropriated pursuant to--
(A) paragraphs (1)(A) and (2)(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 Act of 2002; and
(B) paragraph (1)(B) and (2)(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 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)
ERISA amendments.-- Section 605 of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1165) is amended--
(A) by inserting (a) In General.--" before "For purposes of
this part"; and
(B) by adding at the end the following:
(b) Temporary
Extension of COBRA Election Period for Certain Individuals.--
(1)
In general.-- In the case of a nonelecting
TAA-eligible individual and notwithstanding subsection (a), such individual may
elect continuation coverage under this part during the 60-day period that
begins on the first day of the month in which the individual becomes a
TAA-eligible individual, but only if such election is made not later than 6
months after the date of the TAA-related loss of coverage.
(2)
Commencement of coverage; no reach-back.-- Any continuation coverage elected by
a TAA-eligible individual under paragraph (1) shall commence at the beginning
of the 60-day election period described in such paragraph and shall not include
any period prior to such 60-day election period.
(3)
Preexisting conditions.-- With respect to an individual who elects continuation
coverage pursuant to paragraph (1), the period--
(A) beginning on the date of the TAA-related loss of coverage, and
(B) ending on the first day of the 60-day election period described in
paragraph (1),
shall be
disregarded for purposes of determining the 63-day periods referred to in
section 701(c)(2), section 2701(c)(2) of the Public Health Service Act, and
section 9801(c)(2) of the Internal Revenue Code of 1986.
(4)
Definitions.-- For purposes of this subsection:
(A) Nonelecting taa-eligible
individual.--The term 'nonelecting TAA-eligible
individual' means a TAA-eligible individual who--
(i) has a TAA-related loss of coverage;
and
(ii) did not elect continuation coverage under this part during
the TAA-related election period.
(B) TAA-eligible individual.--The term 'TAA-eligible individual' means--
(i) an eligible TAA recipient (as
defined in paragraph (2) of section 35(c) of the Internal Revenue Code of
1986), and
(ii) an eligible alternative TAA recipient (as defined in
paragraph (3) of such section).
(C) TAA-related election period.--The term 'TAA-related election period'
means, with respect to a TAA-related loss of coverage, the 60-day election
period under this part which is a direct consequence of such loss.
(D) TAA-related loss of coverage.--The term 'TAA-related loss of
coverage' means, with respect to an individual whose separation from employment
gives rise to being an TAA-eligible individual, the loss of health benefits
coverage associated with such separation.".
(2)
PHSA amendments.-- Section 2205 of the Public Health Service Act (42 U.S.C.
300bb-5) is amended--
(A) by inserting (a) In General.--" before "For purposes of
this title"; and
(B) by adding at the end the following:
(b) Temporary
Extension of COBRA Election Period for Certain Individuals.--
(1)
In general.-- In the case of a nonelecting
TAA-eligible individual and notwithstanding subsection (a), such individual may
elect continuation coverage under this title during the 60-day period that
begins on the first day of the month in which the individual becomes a
TAA-eligible individual, but only if such election is made not later than 6
months after the date of the TAA-related loss of coverage.
(2)
Commencement of coverage; no reach-back.-- Any continuation coverage elected by
a TAA-eligible individual under paragraph (1) shall commence at the beginning
of the 60-day election period described in such paragraph and shall not include
any period prior to such 60-day election period.
(3)
Preexisting conditions.-- With respect to an individual who elects continuation
coverage pursuant to paragraph (1), the period--
(A) beginning on the date of the TAA-related loss of coverage, and
(B) ending on the first day of the 60-day election period described in
paragraph (1),
shall be
disregarded for purposes of determining the 63-day periods referred to in
section 2701(c)(2), section 701(c)(2) of the Employee Retirement Income
Security Act of 1974, and section 9801(c)(2) of the Internal Revenue Code of
1986.
(4)
Definitions.-- For purposes of this subsection:
(A) Nonelecting taa-eligible
individual.--The term 'nonelecting TAA-eligible
individual' means a TAA-eligible individual who--
(i) has a TAA-related loss of coverage;
and
(ii) did not elect continuation coverage under this part during
the TAA-related election period.
(B) TAA-eligible individual.--The term 'TAA-eligible individual' means--
(i) an eligible TAA recipient (as
defined in paragraph (2) of section 35(c) of the Internal Revenue Code of
1986), and
(ii) an eligible alternative TAA recipient (as defined in
paragraph (3) of such section).
(C) TAA-related election period.--The term 'TAA-related election period'
means, with respect to a TAA-related loss of coverage, the 60-day election
period under this part which is a direct consequence of such loss.
(D) TAA-related loss of coverage.--The term 'TAA-related loss of
coverage' means, with respect to an individual whose separation from employment
gives rise to being an TAA-eligible individual, the loss of health benefits
coverage associated with such separation.".
(3)
IRC amendments.-- Paragraph (5) of section 4980B(f) of the Internal Revenue
Code of 1986 (relating to election) is amended by adding at the end the
following:
(C) Temporary extension of cobra election period for certain
individuals.--
(i) In general.--In the case of a nonelecting TAA-eligible individual and notwithstanding
subparagraph (A), such individual may elect continuation coverage under this
subsection during the 60-day period that begins on the first day of the month
in which the individual becomes a TAA-eligible individual, but only if such
election is made not later than 6 months after the date of the TAA-related loss
of coverage.
(ii) Commencement of coverage; no reach-back.--Any continuation
coverage elected by a TAA-eligible individual under clause (i)
shall commence at the beginning of the 60-day election period described in such
paragraph and shall not include any period prior to such 60-day election
period.
(iii) Preexisting conditions.--With respect to an individual who
elects continuation coverage pursuant to clause (i),
the period--
(I) beginning on
the date of the TAA-related loss of coverage, and
(II) ending on
the first day of the 60-day election period described in clause (i), shall be disregarded for purposes of determining the
63-day periods referred to in section 9801(c)(2), section 701(c)(2) of the
Employee Retirement Income Security Act of 1974, and section 2701(c)(2) of the
Public Health Service Act.
(iv) Definitions.--For purposes of this subsection:
(I) Nonelecting taa-eligible
individual.--The term 'nonelecting TAA-eligible
individual' means a TAA-eligible individual who has a TAA-related loss of
coverage and did not elect continuation coverage under this subsection during
the TAA-related election period.
(II)
TAA-eligible individual.--The term 'TAA-eligible individual' means an eligible
TAA recipient (as defined in paragraph (2) of section 35(c)) and an eligible
alternative TAA recipient (as defined in paragraph (3) of such section).
(III)
TAA-related election period.--The term 'TAA-related election period' means,
with respect to a TAA-related loss of coverage, the 60-day election period
under this subsection which is a direct consequence of such loss.
(IV) TAA-related
loss of coverage.--The term 'TAA-related loss of coverage' means, with respect
to an individual whose separation from employment gives rise to being an
TAA-eligible individual, the loss of health benefits coverage associated with
such separation.".
(f) Rule of
Construction.--Nothing in this title (or the amendments made by this title),
other than provisions relating to COBRA continuation coverage and reporting
requirements, shall be construed as creating any new mandate on any party
regarding health insurance coverage.
