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“(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

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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 Deadline. 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

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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 TAAeligible 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 “ΤΑΑeligible 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 “TAArelated election period' means, with respect to a TAArelated 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.

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“(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 TAAeligible 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 “TAAeligible 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 “TAArelated election period' means, with respect to a TAArelated 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) 26 USC 4980B. 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- Deadline. 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 REACHBACK.—Any continuation coverage elected by a TAAeligible 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,

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"(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 TAArelated 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 60day 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.

29 USC 2918 note.

Customs Border Security Act of 2002.

TITLE III—CUSTOMS
REAUTHORIZATION

19 USC 1654 note.

SEC. 301. SHORT TITLE.

This Act may be cited as the "Customs Border Security Act of 2002”.

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