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"(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)(I) 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 separa

tion 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

19 USC 2272.

(b)

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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.". SEC. 114. QUALIFYING REQUIREMENTS FOR TRADE READJUSTMENT

ALLOWANCES. (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,".

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 termi

nation of a waiver issued pursuant to subsection (c),”. SEC. 115. WAIVERS OF TRAINING REQUIREMENTS.

(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. 5030)), 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".

SEC. 116. AMENDMENTS TO LIMITATIONS ON TRADE READJUSTMENT

ALLOWANCES. (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.”. SEC. 117. ANNUAL TOTAL AMOUNT OF PAYMENTS FOR TRAINING.

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”. SEC. 118. PROVISION OF EMPLOYER-BASED TRAINING.

(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.".

SEC. 119. COORDINATION WITH TITLE I OF THE WORKFORCE INVEST

MENT ACT OF 1998. 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))". SEC. 120. EXPENDITURE PERIOD.

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.". SEC. 121. JOB SEARCH ALLOWANCES.

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

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