article: SECTION 1. SHORT TITLE; REFERENCE. (a) Short Title.--This Act may be cited as the ``NAFTA Worker Adjustment Assistance Act''. (b) Reference.--Whenever in this Act an amendment is expressed in terms of an amendment to a section, subsection, or other provision, the reference shall be considered to be made to a section, subsection, or other provision of the Trade Act of 1974. SEC. 2. ELIGIBILITY OF WORKERS AFFECTED BY NORTH AMERICAN FREE TRADE AGREEMENT. (a) Adjustment Assistance for Workers.-- (1) In general.--Section 222 (19 U.S.C. 2272) is amended by adding at the end thereof the following new subsection: ``(c) Special Rule for Workers Affected by North American Free Trade Agreement.-- ``(1) In the case of a group of workers affected by the North American Free Trade Agreement (including workers in any agricultural firm or subdivision thereof), the Secretary shall certify such group as eligible for adjustment assistance under this chapter, if-- ``(A) the Secretary makes the determination under paragraphs (1) and (2) of subsection (a), and ``(B) the Secretary determines that-- ``(i) increases of imports of articles like or directly competitive with articles which are produced by such workers' firm or appropriate subdivision thereof, contributed importantly to such total or partial separation, or threat thereof, and to such decline in sales, ``(ii) the North American Free Trade Agreement contributed importantly to a shift in production to Mexico of articles like or directly competitive with articles which are produced by such workers' firm or appropriate subdivision thereof, or ``(iii) the group of workers is employed in the manufacture of motor vehicles in the United States. ``(2) For purposes of this subsection, the term `North American Free Trade Agreement' means an agreement between the United States and Mexico (without regard to whether Canada is a party to all or part of such agreement) which provides for the establishment of a free trade area between the two nations through the reduction and elimination of barriers to trade.''. (2) Conforming amendment.--Subsection (b) of section 222 (19 U.S.C. 2272(b)) is amended by inserting ``and subsection (c)'' after ``subsection (a)(3)''. (b) Determinations by Secretary of Labor.--Section 223 (19 U.S.C. 2273) is amended by striking ``(a)'' and inserting ``(a)(1)'', and by adding at the end of subsection (a) the following new paragraph: ``(2) As soon as possible after the date a notice is received under section 239(a)(5), but in no event later than 10 working days after that date, the Secretary shall determine if-- ``(A) the group of workers is described in section 222(c)(1)(B)(iii), or ``(B)(i) there has been a shift in production to Mexico of articles like or directly competitive with articles which are produced by such workers' firm or appropriate subdivision thereof, and ``(ii) the North American Free Trade Agreement contributed importantly to such shift, and shall issue a certification of eligibility to apply for assistance under this chapter covering workers in any group with respect to which such determination has been made.''. (c) Effective Date.--The amendments made by this section shall take effect on the day a bill implementing the North American Free Trade Agreement is enacted into law and shall terminate on the date on which such Agreement is fully phased in. SEC. 3. AMENDMENTS TO TITLE II OF THE TRADE ACT OF 1974. (a) Reemployment Services.--Section 235 (19 U.S.C. 2295) is amended to read as follows: ``SEC. 235. EMPLOYMENT SERVICES. ``(a) In General.--The Secretary shall ensure that adversely affected workers covered by a certification under subchapter A of this chapter are provided early and effective reemployment assistance. Such assistance should include-- ``(1) counseling, ``(2) testing, ``(3) labor market information, ``(4) job development, ``(5) job search and placement services, and ``(6) other supportive services provided for under any other Federal law, including services provided by a State pursuant to title III of the Job Training Partnership Act. ``(b) Agreements With States.--The Secretary shall, whenever appropriate, procure the services described in subsection (a) by entering into agreements with States, and shall make available to States such funds as may be necessary to provide such services.''. (b) Training.-- (1) In general.--Section 236(a)(2)(A) of such Act (19 U.S.C. 2296(a)(2)(A)) is amended by striking ``$80,000,000'' and inserting ``$120,000,000''. (2) Effective date.--The amendment made by paragraph (1) shall apply to the first fiscal year after the fiscal year in which the United States enters into the North American Free Trade Agreement, and to each fiscal year thereafter. (c) Agreements With States.-- (1) Section 239(a) (19 U.S.C. 2311(a)) is amended-- (A) by striking ``and (4)'' and inserting ``(4)'', and (B) by striking the period at the end thereof and inserting ``, and (5) will notify the Employment and Training Administration of any notice received under the Worker Adjustment and Retraining Notification Act within 5 working days after receiving such notice.''. (2) Section 239 (19 U.S.C. 2311) is amended by adding at the end thereof the following new subsection: ``(g) Reporting.-- ``(1) Any agreement entered into under this section shall provide for the establishment of a standardized system for reporting the operation and effectiveness of the State program during the preceding year. ``(2) Reports under this subsection shall be submitted by the States to the Secretary on an annual basis.''. SEC. 4. FUNDING FOR NAFTA WORKER ADJUSTMENT ASSISTANCE. (a) Temporary Imposition of De Minimus Worker Adjustment Fee.--The President shall make a determination of the amount necessary to fund worker assistance programs under chapter 2 of title II of the Trade Act of 1974 for workers described in section 222(c) of such Act and shall negotiate an agreement as part of the supplemental agreements to the North American Free Trade Agreement for the imposition by the United States of a de minimus uniform fee on all articles imported into the United States from Mexico. Such fee shall-- (1) be used to fund programs which assist United States workers experiencing dislocation as a result of the implementation and operation of the North American Free Trade Agreement, (2) take effect on the date that is 30 days after the date a bill implementing the North American Free Trade Agreement is enacted into law, and (3) expire on the date which is 30 days after the date on which such Agreement is fully phased in. (b) Part of Revenues To Fund Trade Adjustment Assistance.--If the President is unable to negotiate the imposition of a de minimus uniform fee pursuant to subsection (a), the President shall determine the amount necessary to fund the programs described in such subsection and shall designate a portion of the tariffs imposed on articles imported from Mexico sufficient to fund such programs. Such amount shall be transferred to the Trade Adjustment Assistance Trust Fund (established under section 286 of the Trade Act of 1974). In negotiating the elimination of tariffs under the North American Free Trade Agreement, the President shall assure revenues from such tariffs are adequate to provide assistance to United States workers who are dislocated as a result of such Agreement. (c) Special Safeguard Provisions.--Any increase in duties under any special safeguard provision in the North American Free Trade Agreement, which are imposed to remedy injury to United States industries resulting from increased imports, shall be transferred to the Trade Adjustment Assistance Trust Fund. SEC. 5. CONFORMING AMENDMENTS TO TRADE ADJUSTMENT ASSISTANCE TRUST FUND. (a) In General.--Section 286(b)(1) of the Trade Act of 1974 (19 U.S.C. 2396(b)(1)) is amended by striking ``the duty imposed by section 287'' and inserting ``any fees imposed or duties collected pursuant to section 4 of the NAFTA Worker Adjustment Assistance Act.''. (b) Availability of Amounts in Trust Fund; Authorization.-- Subsections (d) and (e) of section 286 (19 U.S.C. 2396) are amended to read as follows: ``(d) Availability of Amounts in Treasury.-- ``(1) Amounts in the Trust Fund shall be available as provided in appropriation Acts for expenditures that are required to carry out the provisions of chapter 2 with respect to workers described in section 222(c) (including administrative costs) and for payments required under subsection (e)(2). ``(2)(A) If the total amount of funds expended in any fiscal year to carry out chapter 2 with respect to such workers (including administrative costs) exceeds the amount collected under section 4 of the NAFTA Worker Adjustment Assistance Act during the preceding 1-year period, the Secretary of Labor and the Secretary of Commerce (in consultation with the Secretary of the Treasury) shall make a pro rata reduction in the amount of trade adjustment allowances that are paid under sections 231 through 234 to such workers. ``(B) The reduction shall be-- ``(i) based on estimates of the amount of funds that will be necessary to carry out chapter 2 and the amount of revenue that will be raised by section 4 of the NAFTA Worker Adjustment Assistance Act during the remainder of such fiscal year and the succeeding fiscal year, ``(ii) made in a manner that ensures that all workers eligible for assistance under section 222(c) receive some assistance under such chapter 2, and ``(iii) made in a manner that ensures that the expenditures for such assistance during the remainder of the fiscal year and the succeeding fiscal year do not exceed the amount of funds available in the Trust Fund. ``(C) No reduction may be made under this paragraph in the amount of trade readjustment allowance payable under sections 231 through 234 to a worker who-- ``(i) is described in section 222(c), and ``(ii) received a trade readjustment allowance under sections 231 through 234 for the week preceding the first week for which a reduction is otherwise being made under this paragraph. ``(D) If a pro rata reduction is in effect at the close of a fiscal year, the Secretary of Labor and the Secretary of Commerce, in consultation with the Secretary of the Treasury, may adjust or modify such reduction at the beginning of the fiscal year succeeding such fiscal year, based on estimates of the amount of funds that will be necessary to carry out chapter 2 with respect to workers described in section 222(c), and of the amount of revenue that will be raised by section 4 of the NAFTA Worker Adjustment Assistance Act during the succeeding fiscal year. ``(E) Any pro rata reduction made under subparagraph (A), and any pro rata reduction which is adjusted or modified under subparagraph (D), shall cease to apply after the week in which-- ``(i) a 1-year period ends during which the total amount of funds that would have been expended to carry out chapter 2 with respect to workers described in section 222(c) (including administrative costs), if such reduction were not in effect, did not exceed an amount equal to the total amount collected under section 4 of the NAFTA Worker Adjustment Assistance Act during such 1-year period, or ``(ii) the Secretary of Labor and the Secretary of Commerce, in consultation with the Secretary of the Treasury, determine that the amount of funds available in the Trust Fund are sufficient to carry out chapter 2 with respect to workers described in section 222(c) without such reduction. ``(e) Authorization of Appropriations; Repayable Advances.-- ``(1)(A) There are authorized to be appropriated to the Trust Fund, as repayable advances, such sums as may from time to time be necessary to make the expenditures described in subsection (d)(1). ``(B) Any advance appropriated to the Trust Fund under subparagraph (A) may be paid to the Trust Fund only to the extent that the total amount of advances paid during the fiscal year to the Trust Fund from any appropriation authorized under subparagraph (A) that are outstanding after such advance is paid to the Trust Fund does not exceed the lesser of-- ``(i) the excess of-- ``(I) the total amount of funds that the Secretary of the Treasury (in consultation with the Secretary of Labor and the Secretary of Commerce) estimates will be necessary for the payments and expenditures described in subsection (d)(1) for such fiscal year, over ``(II) the total amount of funds that the Secretary of the Treasury estimates will be available in the Trust Fund during the fiscal year (determined without regard to any advances made under this subsection during such fiscal year), or ``(ii) the excess of-- ``(I) an amount equal to the total amount the Secretary of the Treasury estimates will be collected under section 4 of the NAFTA Worker Adjustment Assistance Act during such fiscal year, over ``(II) the amount described in clause (i)(II). ``(2) Advances made to the Trust Fund from appropriations authorized under paragraph (1)(A) shall be repaid, and interest on such advances shall be paid, to the general fund of the Treasury of the United States when the Secretary of the Treasury determines that sufficient funds are available in the Trust Fund for such purposes. ``(3) Interest on advances made from appropriations authorized under paragraph (1)(A) shall be at a rate determined by the Secretary of the Treasury (as of the close of the calendar month preceding the month in which the advance is made) to be equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the anticipated period during which the advance will be outstanding.''. (c) Effective Date.--Section 1430(c) of the Omnibus Trade and Competitiveness Act of 1988 (19 U.S.C. 2397 note) is amended by striking ``the first date'' and all that follows through the end period and inserting ``the day on which a bill implementing the North American Free Trade Agreement is enacted into law.''. SEC. 6. EXTENSION OF SUNSET. Subsection (b) of section 285 (19 U.S.C. 2271, preceding note) is amended by striking ``no duty shall be imposed under section 287, after September 30, 1993'' and inserting ``no fee shall be imposed under section 4 of the NAFTA Worker Adjustment Assistance Act after September 30, 1998''.
summary: NAFTA Worker Adjustment Assistance Act - Amends the Trade Act of 1974 to provide trade adjustment assistance to workers adversely affected by the North American Free Trade Agreement (NAFTA) between the United States and Mexico. Makes such workers eligible for assistance if the Secretary of Labor determines that: (1) increases of imports like or directly competitive with imports produced by such workers' firm contributed importantly to a separation and decline in sales; (2) NAFTA contributed importantly to a shift in U.S. production in Mexico; or (3) the workers are employed in the manufacture of motor vehicles in the United States. Makes such assistance available during the phase-in period of the Agreement. Revises provisions under the trade adjustment assistance program concerning reemployment assistance to include labor market information, job development, and job search and placement services. Makes funds available to States to provide such services. Increases the funds available for training under such program. Requires the establishment of a standardized reporting system to determine the effectiveness of State-run programs. Directs the President to negotiate an agreement for the temporary imposition of a de minimis uniform fee on all articles imported into the United States from Mexico to fund trade adjustment assistance programs needed as a result of NAFTA. Requires, if the President is unable to negotiate such an agreement, that a certain portion of tariffs imposed on Mexican imports be used to fund such programs. Transfers any increase in duties to the Trade Adjustment Assistance Trust Fund. Authorizes appropriations to such Fund as necessary.