108th CONGRESS
2d Session
S. 2531
To assist displaced American workers during a jobless recovery, and
for other purposes.
IN THE SENATE OF THE UNITED STATES
June 16, 2004
Mr. WYDEN introduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To assist displaced American workers during a jobless recovery, 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 `Keeping American Jobs at Home Act'.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS- The Senate finds the following:
(1) The unusually prolonged period in which there has been negative job
growth has caused an unprecedented number of people to refrain from actively
looking for work and, therefore, to be excluded from the unemployment measurement,
effectively creating a `missing' labor force. If the unemployment rate in
February 2004 took into account this missing labor force, the unemployment
rate would have been 7.4 percent or 1.8 percent greater than the official
rate of 5.6 percent.
(2) Newly released unemployment figures show that the trend toward growing
long-term unemployment continued last year, the second year after the recession
ended.
(3) An analysis of long-term unemployment from 2000 to 2003 shows that the
number of people without work for 6 months or more has risen at the extraordinarily
high rate of 198.2 percent over this period, from just over 649,000 in 2000
to nearly 2,000,000 in 2003.
(4) According to the Bureau of Labor Statistics, in 2003, 22.1 percent of
all unemployed workers had been out of work for more than 6 months, an increase
from 18.3 percent in 2002. This proportion is higher than at comparable
points in the recovery periods of the 4 most recent recessions, and is the
highest rate since 1983.
(5) In 2005, 588,000 American jobs are projected to be moved overseas. In
2010, that number is expected to grow to 1,600,000 and by 2015, 3,300,000
American jobs will be moved overseas.
(6) In February 2004, the Chairman of the Council of Economic Advisors,
called offshoring `just a new way of doing international trade. More things
are tradable than were tradable in the past, and that's a good thing. When
a good or service is produced at lower cost in another country, it makes
sense to import it rather than to produce it domestically.'.
(7) Immediate action is necessary to encourage United States companies to
keep American jobs at home, to assist displaced American workers in finding
new, family wage jobs, and to assure that the current American workforce
has the skills to compete and win in the global economy.
(b) PURPOSE- The purpose of this Act is to assist displaced American workers
during a jobless recovery by--
(1) ensuring displaced workers in the software, information technology,
and services sectors have access to the same trade adjustment assistance
and health care tax credits as displaced manufacturing workers;
(2) providing wage insurance for qualifying displaced workers upon reemployment
(to make up part of the difference between a new, lower salary and a previous,
higher salary); and
(3) providing a legal safe harbor for United States businesses that choose
to keep American jobs at home.
TITLE I--ASSISTANCE FOR DISPLACED AMERICAN WORKERS
SEC. 101. ELIMINATION OF TAX SUBSIDIES FOR OUTSOURCING OF AMERICAN JOBS.
(a) IN GENERAL- Part IX of subchapter B of chapter 1 of the Internal Revenue
Code of 1986 (relating to items not deductible) is amended by adding at the
end the following new section:
`SEC. 280I. ELIMINATION OF TAX SUBSIDIES FOR OUTSOURCING OF AMERICAN JOBS.
`(a) IN GENERAL- No deduction or credit shall be allowed under this chapter
with respect to any applicable outsourcing item.
`(b) APPLICABLE OUTSOURCING ITEM- For purposes of this section--
`(1) IN GENERAL- The term `applicable outsourcing item' means any item of
expense (including any allowance for depreciation or amortization) or loss
arising in connection with 1 or more transactions which--
`(A) transfer the production of goods (or the performance of services)
from within the United States to outside the United States, and
`(B) result in the replacement of workers who reside in the United States
with other workers who reside outside of the United States.
`(2) CERTAIN ITEMS INCLUDED- The term `applicable outsourcing item' shall
include with respect to any transaction described in paragraph (1)--
`(A) any amount paid or incurred in training the replacement workers described
in paragraph (1)(B),
`(B) any amount paid or incurred in transporting tangible property outside
the United States in connection with the transfer described in paragraph
(1)(A),
`(C) any expense or loss incurred in connection with the sale, abandonment,
or other disposition of any property or facility located within the United
States and used in the production of goods (or the performance of services)
before such transfer,
`(D) expenses paid or incurred for travel in connection with the planning
and carrying out of any such transaction,
`(E) any general or administrative expenses properly allocable to any
such transaction,
`(F) any amount paid or incurred in connection with any such transaction
for the acquisition of any property or facility located outside the United
States, and
`(G) any other item specified by the Secretary.
`(3) CERTAIN ITEMS NOT INCLUDED- The term `applicable outsourcing item'
shall not include any expenses directly allocable to the sale of goods and
services without the United States.
`(c) REGULATIONS- The Secretary shall prescribe such regulations as are necessary
or appropriate to carry out the provisions of this section. The Secretary
shall prescribe initial regulations not later than 180 days after the date
of enactment of this section.'.
(b) CONFORMING AMENDMENT- The table of sections for part IX of subchapter
B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
`Sec. 280I. Elimination of tax subsidies for outsourcing of American jobs.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to transactions
occurring on or after the date of enactment of this Act.
SEC. 102. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICES SECTOR.
(a) ADJUSTMENT ASSISTANCE FOR WORKERS- Section 221(a)(1)(A) of the Trade Act
of 1974 (19 U.S.C. 2271(a)(1)(A)) is amended by striking `firm)' and inserting
`firm, and workers in a service sector firm or subdivision of a service sector
firm or public agency)'.
(b) GROUP ELIGIBILITY REQUIREMENTS- Section 222 of the Trade Act of 1974 (19
U.S.C. 2272) is amended--
(A) in the matter preceding paragraph (1), by striking `agricultural firm)'
and inserting `agricultural firm, and workers in a service sector firm
or subdivision of a service sector firm or public agency)';
(B) in paragraph (1), by inserting `or public agency' after `of the firm';
and
(i) in subparagraph (A)(ii), by striking `like or directly competitive
with articles produced' and inserting `or services like or directly
competitive with articles produced or services provided'; and
(ii) by striking subparagraph (B) and inserting the following:
`(B)(i) there has been a shift, by such workers' firm, subdivision, or
public agency to a foreign country, of production of articles, or in provision
of services, like or directly competitive with articles which are produced,
or services which are provided, by such firm, subdivision, or public agency;
or
`(ii) such workers' firm, subdivision, or public agency has obtained or
is likely to obtain such services from a foreign country.';
(A) in the matter preceding paragraph (1), by striking `agricultural firm)'
and inserting `agricultural firm, and workers in a service sector firm
or subdivision of a service sector firm or public agency)';
(B) in paragraph (2), by inserting `or service' after `related to the
article'; and
(C) in paragraph (3)(A), by inserting `or services' after `component parts';
(i) by inserting `or services' after `value-added production processes';
(ii) by striking `or finishing' and inserting `, finishing, or testing';
(iii) by inserting `or services' after `for articles'; and
(iv) by inserting `(or subdivision)' after `such other firm'; and
(i) by striking `for articles' and inserting `, or services, used in
the production of articles or in the provision of services'; and
(ii) by inserting `(or subdivision)' after `such other firm'; and
(4) by adding at the end the following new subsection:
`(d) BASIS FOR SECRETARY'S DETERMINATIONS-
`(1) INCREASED IMPORTS- For purposes of subsection (a)(2)(A)(ii), the Secretary
may determine that increased imports of like or directly competitive articles
or services exist if the workers' firm or subdivision or customers of the
workers' firm or subdivision accounting for not less than 20 percent of
the sales of the workers' firm or subdivision certify to the Secretary that
they are obtaining such articles or services from a foreign country.
`(2) OBTAINING SERVICES ABROAD- For purposes of subsection (a)(2)(B)(ii),
the Secretary may determine that the workers' firm, subdivision, or public
agency has obtained or is likely to obtain like or directly competitive
services from a firm in a foreign country based on a certification thereof
from the workers' firm, subdivision, or public agency.
`(3) AUTHORITY OF THE SECRETARY- The Secretary may obtain the certifications
under paragraphs (1) and (2) through questionnaires or in such other manner
as the Secretary determines is appropriate.'.
(c) TRAINING- Section 236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C. 2296(a)(2)(A))
is amended by striking `$220,000,000' and inserting `$440,000,000'.
(d) DEFINITIONS- Section 247 of the Trade Act of 1974 (19 U.S.C. 2319) is
amended--
(A) by inserting `or public agency' after `of a firm'; and
(B) by inserting `or public agency' after `or subdivision';
(2) in paragraph (2)(B), by inserting `or public agency' after `the firm';
(3) by redesignating paragraphs (8) through (17) as paragraphs (9) through
(18), respectively; and
(4) by inserting after paragraph (6) the following:
`(7) The term `public agency' means a department or agency of a State or
local government or of the Federal Government.
`(8) The term `service sector firm' means an entity engaged in the business
of providing services.'.
(e) TECHNICAL AMENDMENT- Section 245(a) of the Trade Act of 1974 (19 U.S.C.
2317(a)) is amended by striking `, other than subchapter D'.
SEC. 103. WAGE INSURANCE FOR QUALIFYING DISPLACED WORKERS UPON REEMPLOYMENT.
(a) IN GENERAL- Section 246 of the Trade Act of 1974 (19 U.S.C. 2318) is amended
to read as follows:
`SEC. 246. WAGE INSURANCE FOR DISPLACED WORKERS.
`(1) ESTABLISHMENT- The Secretary shall establish a wage insurance program
for displaced workers that provides the benefits described in paragraph
(2).
`(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.
`(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 wage insurance
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 wage insurance program, the Secretary shall consider
the following criteria:
`(I) Whether the workers in the workers' firm possess skills that
are not easily transferable.
`(II) The competitive conditions within the workers' industry.
`(iii) DEADLINE- The Secretary shall determine whether the workers in
the group are eligible for the wage insurance 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 wage insurance program may elect to
receive benefits under the wage insurance 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; and
`(iii) earns not more than $50,000 a year in wages from reemployment;
`(iv) is employed on a full-time basis as defined by State law in the
State in which the worker is employed; and
`(v) 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.
`(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) CONFORMING AMENDMENT- The table of contents for title II of the Trade
Act of 1974 is amended by striking the item relating to section 246 and inserting
the following:
`Sec. 246. Wage insurance for displaced workers.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to workers
certified as eligible for adjustment assistance under chapter 2 of title II
of the Trade Act of 1974 on or after the date of enactment of this Act.
SEC. 104. BUSINESS JUDGMENT DEFENSE FOR NON-OUTSOURCING.
Notwithstanding any other provision of law, a determination by the officers
or directors of a corporation that it is in the best interest of the corporation
to keep jobs within the United States and to not locate the domicile of the
corporation outside of the United States, or move or carry out production
or other business activities of the corporation or any portion thereof, outside
of the United States, shall be considered in any action brought against the
corporation based on such determination by the court of competent jurisdiction
to be a matter of business judgment, and such officers or directors may not
be found to have violated their fiduciary duty to the corporation in any such
action, based on that determination.
TITLE II--IMPROVEMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS
SEC. 201. EXPEDITED REFUND OF CREDIT FOR PRORATED FIRST MONTHLY PREMIUM
AND SUBSEQUENT MONTHLY PREMIUMS PAID PRIOR TO CERTIFICATION OF ELIGIBILITY
FOR THE CREDIT.
Section 7527 of the Internal Revenue Code of 1986 (relating to advance payment
of credit for health insurance costs of eligible individuals) is amended by
adding at the end the following:
`(e) EXPEDITED PAYMENT OF PREMIUMS PAID PRIOR TO ISSUANCE OF CERTIFICATE-
The program established under subsection (a) shall provide for payment to
a certified individual of an amount equal to the percentage specified in section
35(a) of the premiums paid by such individual for coverage of the taxpayer
and qualifying family members under qualified health insurance for eligible
coverage months (as defined in section 35(b)) occurring prior to the issuance
of a qualified health insurance costs credit eligibility certificate upon
receipt by the Secretary of evidence of such payment by the certified individual.'.
SEC. 202. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF DETERMINING
WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE COVERAGE.
(a) ERISA AMENDMENT- Section 701(c)(2) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding at the end the following:
`(C) TAA-ELIGIBLE INDIVIDUALS-
`(i) TAA PRE-CERTIFICATION PERIOD RULE- In the case of a TAA-eligible
individual, the period beginning on the date the individual has a TAA-related
loss of coverage and ending on the date the individual is certified
by the Secretary (or by any person or entity designated by the Secretary)
as being eligible for a qualified health insurance costs credit eligibility
certificate for purposes of section 7527 of the Internal Revenue Code
of 1986 shall not be taken into account in determining the continuous
period under subparagraph (A).
`(ii) DEFINITIONS- The terms `TAA-eligible individual', and `TAA-related
loss of coverage' have the meanings given such terms in section 605(b)(4)(C).'.
(b) PHSA AMENDMENT- Section 2701(c)(2) of the Public Health Service Act (42
U.S.C. 300gg(c)(2)) is amended by adding at the end the following:
`(C) TAA-ELIGIBLE INDIVIDUALS-
`(i) TAA PRE-CERTIFICATION PERIOD RULE- In the case of a TAA-eligible
individual, the period beginning on the date the individual has a TAA-related
loss of coverage and ending on the date the individual is certified
by the Secretary (or by any person or entity designated by the Secretary)
as being eligible for a qualified health insurance costs credit eligibility
certificate for purposes of section 7527 of the Internal Revenue Code
of 1986 shall not be taken into account in determining the continuous
period under subparagraph (A).
`(ii) DEFINITIONS- The terms `TAA-eligible individual', and `TAA-related
loss of coverage' have the meanings given such terms in section 2205(b)(4)(C).'.
(c) IRC AMENDMENT- Section 9801(c)(2) of the Internal Revenue Code of 1986
(relating to not counting periods before significant breaks in creditable
coverage) is amended by adding at the end the following:
`(D) TAA-ELIGIBLE INDIVIDUALS-
`(i) TAA PRE-CERTIFICATION PERIOD RULE- In the case of a TAA-eligible
individual, the period beginning on the date the individual has a TAA-related
loss of coverage and ending on the date the individual is certified
by the Secretary of Labor (or by any person or entity designated by
the Secretary of Labor) as being eligible for a qualified health insurance
costs credit eligibility certificate for purposes of section 7527 shall
not be taken into account in determining the continuous period under
subparagraph (A).
`(ii) DEFINITIONS- The terms `TAA-eligible individual', and `TAA-related
loss of coverage' have the meanings given such terms in section 4980B(f)(5)(C)(iv).'.
SEC. 203. CLARIFICATION OF ELIGIBILITY OF SPOUSE OF CERTAIN INDIVIDUALS
ENTITLED TO MEDICARE.
(a) IN GENERAL- Subsection (b) of section 35 of the Internal Revenue Code
of 1986 (defining eligible coverage month) is amended by adding at the end
the following:
`(3) SPECIAL RULE FOR SPOUSE OF INDIVIDUAL ENTITLED TO MEDICARE- Any month
which would be an eligible coverage month with respect to a taxpayer (determined
without regard to subsection (f)(2)(A)) shall be an eligible coverage month
for any spouse of such taxpayer.'.
(b) CONFORMING AMENDMENT- Section 173(f)(5)(A)(i) of the Workforce Investment
Act of 1998 (29 U.S.C. 2918(f)(5)(A)(i)) is amended by inserting `(including
with respect to any month for which the eligible individual would have been
treated as such but for the application of paragraph (7)(B)(i))' before the
comma.
SEC. 204. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.
(a) IN GENERAL- Section 35(a) of the Internal Revenue Code of 1986 (relating
to credit for health insurance costs of eligible individuals) is amended by
striking `65' and inserting `75'.
(b) CONFORMING AMENDMENT- Section 7527(b) of such Code (relating to advance
payment of credit for health insurance costs of eligible individuals) is amended
by striking `65' and inserting `75'.
(c) EFFECTIVE DATE- The amendments made by this section apply to taxable years
beginning after December 31, 2004.
SEC. 205. EXTENSION OF NATIONAL EMERGENCY GRANTS TO FACILITATE ESTABLISHMENT
OF GROUP COVERAGE OPTION AND TO PROVIDE INTERIM HEALTH COVERAGE FOR ELIGIBLE
INDIVIDUALS IN ORDER TO QUALIFY FOR GUARANTEED ISSUE AND OTHER CONSUMER PROTECTIONS;
CLARIFICATION OF REQUIREMENT FOR GROUP COVERAGE OPTION.
(a) IN GENERAL- Section 173(f) of the Workforce Investment Act of 1998 (29
U.S.C. 2918(f)) is amended--
(1) by striking paragraph (1) and inserting the following:
`(A) HEALTH INSURANCE COVERAGE FOR ELIGIBLE INDIVIDUALS IN ORDER TO OBTAIN
QUALIFIED HEALTH INSURANCE THAT HAS GUARANTEED ISSUE AND OTHER CONSUMER
PROTECTIONS- Funds made available to a State or entity under paragraph
(4)(A) of subsection (a) shall be used to provide an eligible individual
described in paragraph (4)(C) and such individual's qualifying family
members with health insurance coverage for the 3-month period that immediately
precedes the first eligible coverage month (as defined in section 35(b)
of the Internal Revenue Code of 1986) in which such eligible individual
and such individual's qualifying family members are covered by qualified
health insurance that meets the requirements described in clauses (i)
through (iv) of section 35(e)(2)(A) of the Internal Revenue Code of 1986
(or such longer minimum period as is necessary in order for such eligible
individual and such individual's qualifying family members to be covered
by qualified health insurance that meets such requirements).
`(B) ADDITIONAL USES- 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:
`(i) HEALTH INSURANCE COVERAGE- To assist an eligible individual and
such individual's qualifying family members in enrolling in health insurance
coverage and qualified health insurance.
`(ii) ADMINISTRATIVE EXPENSES AND START-UP EXPENSES TO ESTABLISH GROUP
COVERAGE OPTIONS FOR QUALIFIED HEALTH INSURANCE- To pay the administrative
expenses related to the enrollment of eligible individuals and such
individuals' qualifying family members in health insurance coverage
and qualified health insurance, including--
`(I) eligibility verification activities;
`(II) the notification of eligible individuals of available health
insurance and 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
health insurance coverage and 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, in
order for the State to treat at least 1 of the options described in
subparagraphs (B) through (H) of subsection (e)(1) of section 35 of
the Internal Revenue Code of 1986 as qualified health insurance under
that section.
`(iii) OUTREACH- To pay for outreach to eligible individuals to inform
such individuals of available health insurance and qualified health
insurance options, including outreach consisting of notice to eligible
individuals of such options made available after the date of enactment
of this clause.'; and
(2) by striking paragraph (2) and inserting the following:
`(2) QUALIFIED HEALTH INSURANCE- For purposes of this subsection and subsection
(g), the term `qualified health insurance' has the meaning given that term
in section 35(e) of the Internal Revenue Code of 1986.'.
(b) FUNDING- Section 174(c)(1) of the Workforce Investment Act of 1998 (29
U.S.C. 2919(c)(1)) is amended--
(1) in the paragraph heading, by striking `AUTHORIZATION AND APPROPRIATION
FOR FISCAL YEAR 2002' and inserting `APPROPRIATIONS'; and
(2) by striking subparagraph (A) and inserting the following:
`(A) to carry out subsection (a)(4)(A) of section 173--
`(i) $10,000,000 for fiscal year 2002; and
`(ii) $300,000,000 for the period of fiscal years 2004 through 2006;
and'.
(c) REPORT REGARDING FAILURE TO COMPLY WITH REQUIREMENTS FOR EXPEDITED APPROVAL
PROCEDURES- Section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C.
2918(f)) is amended by adding at the end the following:
`(8) REPORT FOR FAILURE TO COMPLY WITH REQUIREMENTS FOR EXPEDITED APPROVAL
PROCEDURES- If the Secretary fails to make the notification required under
clause (i) of paragraph (3)(A) within the 15-day period required under that
clause, or fails to provide the technical assistance required under clause
(ii) of such paragraph within a timely manner so that a State or entity
may submit an approved application within 2 months of the date on which
the State or entity's previous application was disapproved, the Secretary
shall submit a report to Congress explaining such failure.'.
(d) CLARIFICATION OF REQUIREMENT TO ESTABLISH GROUP COVERAGE OPTION- Subsection
(g) of section 35 of the Internal Revenue Code of 1986 (relating to special
rules) is amended--
(1) by redesignating paragraph (9) as paragraph (11); and
(2) by inserting after paragraph (8) the following:
`(9) REQUIREMENT TO ESTABLISH GROUP COVERAGE OPTION- With respect to a State,
no credit shall be allowed under this section to an individual who resides
in that State on or after the date that is 2 years after the date of the
enactment of this paragraph unless, not later than such date, the State
has elected to have at least 1 of the options described in subparagraphs
(B) through (H) of subsection (e)(1) treated as qualified health insurance
under this section.
`(10) GROUP HEALTH PLAN- For purposes of this section, the term `group health
plan' has the meaning given that term in section 5000(b)(1).'.
(e) TECHNICAL AMENDMENT- Effective as if included in the enactment of the
Trade Act of 2002 (Public Law 107-210; 116 Stat. 933), subsection (f) of section
203 of that Act is repealed.
SEC. 206. ALIGNMENT OF COBRA COVERAGE WITH TAA PERIOD FOR TAA-ELIGIBLE INDIVIDUALS.
(a) ERISA- Section 605(b) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1165(b)) is amended--
(1) in the subsection heading, by inserting `AND COVERAGE' after `ELECTION';
and
(A) in the paragraph heading, by inserting `AND PERIOD' after `COMMENCEMENT';
(B) by striking `and shall' and inserting `, shall'; and
(C) by inserting `, and in no event shall the maximum period required
under section 602(2)(A) be less than the period during which the individual
is a TAA-eligible individual' before the period at the end.
(b) INTERNAL REVENUE CODE OF 1986- Section 4980B(f)(5)(C) of the Internal
Revenue Code of 1986 is amended--
(1) in the subparagraph heading, by inserting `AND COVERAGE' after `ELECTION';
and
(A) in the clause heading, by inserting `AND PERIOD' after `COMMENCEMENT';
(B) by striking `and shall' and inserting `, shall'; and
(C) by inserting `, and in no event shall the maximum period required
under paragraph (2)(B)(i) be less than the period during which the individual
is a TAA-eligible individual' before the period at the end.
(c) PUBLIC HEALTH SERVICE ACT- Section 2205(b) of the Public Health Service
Act (42 U.S.C. 300bb-5(b)) is amended--
(1) in the subsection heading, by inserting `AND COVERAGE' after `ELECTION';
and
(A) in the paragraph heading, by inserting `AND PERIOD' after `COMMENCEMENT';
(B) by striking `and shall' and inserting `, shall'; and
(C) by inserting `, and in no event shall the maximum period required
under section 2202(2)(A) be less than the period during which the individual
is a TAA-eligible individual' before the period at the end.
END
