II

107TH CONGRESS

1ST SESSION S. 1454

To provide assistance for employees who are separated from employment

as a result of reductions in service by air carriers, and closures of

airports, caused by terrorist actions or security measures.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 21, 2001

Mrs. CARNAHAN (for herself, Mr. DASCHLE, Mr. KENNEDY, Mrs. MURRAY,

Ms. CANTWELL, Mr. ALLEN, Mr. WELLSTONE, Mr. DURBIN, Mr. ROCKEFELLER, Mr. CLELAND, and Mr. DAYTON) introduced the following bill;

which was read twice and referred to the Committee on Finance

A BILL

To provide assistance for employees who are separated from

employment as a result of reductions in service by air

carriers, and closures of airports, caused by terrorist

actions or security measures.

Be it enacted by the Senate and House of Representatives of the United States of

America in Congress assembled,

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Displaced Workers As3 sistance Act’’.

4 SEC. 2. DEFINITIONS.

5 In this Act:
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1 (1) AFFECTED AREA.—The term ‘‘affected

2 area’’ means an area that the Secretary determines

3 has a substantial number of eligible employees.

4 (2) AIR CARRIER.—The term ‘‘air carrier’’

5 means an air carrier that holds a certificate issued

6 under chapter 411 of title 49, United States Code.

7 (3) COBRA CONTINUATION COVERAGE.—The

8 term ‘‘COBRA continuation coverage’’ means cov9 erage under a group health plan provided by an em10 ployer pursuant to title XXII of the Public Health

11 Service Act, section 4980B of the Internal Revenue

12 Code of 1986, part 6 of subtitle B of title I of the

13 Employee Retirement Income Security Act of 1974,

14 or section 8905a of title 5, United States Code.

15 (4) ELIGIBLE EMPLOYEE.—The term ‘‘eligible

16 employee’’ means an individual who has become to17 tally or partially separated, or is threatened to be18 come totally or partially separated, from employment

19 with an air carrier, employment at a facility at an

20 airport, employment that involves the provision of

21 transportation to or from an airport, or employment

22 with an upstream producer or supplier for an air

23 carrier, as a consequence of—
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1 (A) reductions in service by an air carrier

2 as a result of a terrorist action or security

3 measure, as determined by the Secretary; or

4 (B) a closure of an airport in the United

5 States as a result of a terrorist action or secu6 rity measure, as determined by the Secretary.

7 (5) SECRETARY.—The term ‘‘Secretary’’ means

8 the Secretary of Labor.

9 (6) SUPPLIER.—The term ‘‘supplier’’ means a

10 firm that produces component parts for, or articles

11 and contract services considered to be a part of the

12 production process or services for, another firm.

13 (7) TERRORIST ACTION OR SECURITY MEAS14 URE.—The term ‘‘terrorist action or security meas15 ure’’ means a terrorist attack on the United States

16 on September 11, 2001, or a security measure taken

17 in response to the attack.

18 (8) UPSTREAM PRODUCER.—The term ‘‘up19 stream producer’’ means a firm that performs addi20 tional, value-added, production processes, including

21 firms that perform final assembly, finishing, or

22 packaging of articles, for another firm.

23 (9) OTHER TERMS.—Terms defined in section

24 247 of the Trade Act of 1974 shall have the mean25 ings given the terms in that section.
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1 SEC. 3. PETITIONS AND DETERMINATIONS.

2 (a) PETITIONS.—A petition for a certification of eligi3 bility to apply for adjustment assistance under this Act

4 may be filed with the Secretary by a group of workers

5 or by their certified or recognized union or other duly au6 thorized representative. The Secretary shall comply with

7 the notice requirements of section 221 of the Trade Act

8 of 1974 with respect to the petition.

9 (b) CERTIFICATION.—

10 (1) IN GENERAL.—The Secretary shall certify a

11 group of workers as eligible to apply for adjustment

12 assistance under this Act if the Secretary determines

13 that a significant number or proportion of the work14 ers in such workers’ firm or an appropriate subdivi15 sion of the firm are eligible employees.

16 (2) CERTIFICATIONS WITH AND WITHOUT PETI17 TIONS.—The Secretary shall certify—

18 (A) a group that files a petition under sub19 section (a) and meets the requirements of para20 graph (1); and

21 (B) any other group that the Secretary de22 termines meets such requirements.

23 (3) OTHER GROUPS.—A group described in

24 paragraph (2)(B) shall be deemed to have filed a pe25 tition under subsection (a) on the date of the certifi-
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1 cation, for purposes of this Act (other than sub2 sections (a) and (c)).

3 (c) DETERMINATIONS.—

4 (1) PETITIONING GROUPS.—As soon as possible

5 after the date on which a petition is filed under sub6 section (a), but in any event not later than 60 days

7 after that date, the Secretary shall determine wheth8 er the petitioning group meets the requirements of

9 subsection (b)(1) and shall issue a certification of

10 eligibility to apply for adjustment assistance under

11 this Act covering workers in any group that meets

12 such requirements.

13 (2) OTHER GROUPS.—Not later than 30 days

14 after the date of enactment of this Act, the Sec15 retary shall determine groups of workers (other than

16 petitioning groups) that meet the requirements of

17 subsection (b)(1) and shall issue a certification of

18 eligibility to apply for adjustment assistance under

19 this Act covering workers in any group that meets

20 such requirements. In issuing the certifications, not

21 later than 30 days after the date of enactment of

22 this Act, the Secretary shall issue certifications cov23 ering all employees of air carriers.
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1 (3) PROCEDURES.—The Secretary shall issue

2 and terminate such certifications in accordance with

3 section 223 of the Trade Act of 1974.

4 (d) INFORMATION.—The Secretary shall provide the

5 information, assistance, and notice described in section

6 225 of the Trade Act of 1974 with respect to certifications

7 made under subsection (b), and agreements entered into

8 and benefits available under this Act.

9 SEC. 4. PROGRAM BENEFITS.

10 (a) DETERMINATIONS.—The Secretary shall deter11 mine, with respect to an eligible employee covered by a

12 certification issued by the Secretary under section 3,

13 whether—

14 (1) the employee is unlikely to return to the in15 dustry involved;

16 (2) the employee is likely to return to that in17 dustry, but unlikely to return to the employee’s pre18 vious occupation in the industry; or

19 (3) the employee is likely to return to that occu20 pation.

21 (b) DIFFERENT INDUSTRY OR OCCUPATION.—If the

22 Secretary determines that an eligible employee described

23 in subsection (a) meets the requirements of paragraph (1)

24 or (2) of subsection (a) and engages in appropriate job

25 search activities, and that the employee and any training
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1 approved by the Secretary for the employee meet the re2 quirements of paragraphs (1) and (3) of section 236(a)

3 of the Trade Act of 1974, the employee shall be provided,

4 in the same manner and to the same extent as an em5 ployee covered under a certification under subchapter A

6 of chapter 2 of title II of the Trade Act of 1974, 1 or

7 more of the following:

8 (1) Employment services described in section

9 235 of the Trade Act of 1974 (including, in the case

10 of an eligible employee in an affected area, employ11 ment services provided through programs developed

12 and conducted through partnerships between public

13 agencies, employers, and labor organizations).

14 (2) Training that consists of—

15 (A) training (including supplemental as16 sistance) described in section 236 of the Trade

17 Act of 1974, notwithstanding the provisions of

18 section 236(a)(2) of such Act;

19 (B) training for a position requiring dif20 ferent technical skill than the original position;

21 or

22 (C) in the case of an eligible employee in

23 an affected area, training provided through pro24 grams developed and conducted through part-
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1 nerships between public agencies, employers,

2 and labor organizations.

3 (3) Readjustment allowances described in sec4 tions 231 through 234 of the Trade Act of 1974, ex5 cept that—

6 (A) an eligible employee is not required to

7 enroll in training to receive such an allowance;

8 (B) the reference in section 233(a)(1) of

9 the Trade Act of 1974 to ‘‘52’’ shall be consid10 ered to be a reference to ‘‘78’’; and

11 (C) no employee shall receive additional

12 weeks of assistance under section 233(a)(3) of

13 such Act.

14 (4) Job search allowances described in section

15 237 of the Trade Act of 1974.

16 (c) SAME INDUSTRY AND OCCUPATION.—If the Sec17 retary determines that an eligible employee described in

18 subsection (a) meets the requirements of subsection

19 (a)(3), the employee shall be provided, in the same manner

20 and to the same extent as an employee covered under a

21 certification under subchapter A of chapter 2 of title II

22 of the Trade Act of 1974, 1 or more of the following:

23 (1) Employment services described in section

24 235 of the Trade Act of 1974 (including, in the case

25 of an eligible employee in an affected area, employ-
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1 ment services provided through programs developed

2 and conducted through partnerships between public

3 agencies, employers, and labor organizations).

4 (2) Readjustment allowances described in sec5 tions 231 through 234 of the Trade Act of 1974, ex6 cept that—

7 (A) an eligible employee is not required to

8 enroll in training to receive such an allowance;

9 (B) the reference in section 233(a)(1) of

10 the Trade Act of 1974 to ‘‘52’’ shall be consid11 ered to be a reference to ‘‘78’’; and

12 (C) no employee shall receive additional

13 weeks of assistance under section 233(a)(3) of

14 such Act.

15 (d) EMPLOYEES NOT ELIGIBLE FOR UNEMPLOY16 MENT INSURANCE.—An eligible employee who is totally

17 separated from employment in a State who does not meet

18 the requirements of paragraphs (2) through (4) of section

19 231(a) of the Trade Act of 1974 shall be provided, under

20 this Act, only an allowance, for a period of 26 weeks, in

21 the amount of the average weekly benefit received by an

22 individual in the State under the State unemployment in23 surance program during the most recent 52-week period

24 for which data are available.
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1 (e) COBRA CONTINUATION COVERAGE.—In the case

2 of an individual who is eligible for benefits under sub3 section (b) or (c), the Secretary shall provide for payment

4 of premiums for COBRA continuation coverage with re5 spect to such individual. Such payment may be made

6 through appropriate direct payment arrangements with

7 the group health plan or health insurance issuer involved.

8 The Secretary may require documentation of election of

9 benefits or proof of premium payment.

10 (f) OPTIONAL TEMPORARY MEDICAID COVERAGE

11 FOR UNINSURED ELIGIBLE EMPLOYEES.—

12 (1) IN GENERAL.—Notwithstanding any other

13 provision of law, a State may elect to provide, under

14 its medicaid program under title XIX of the Social

15 Security Act, medical assistance in the case of an in16 dividual who is eligible for benefits under subsection

17 (b) or (c), who is not eligible for COBRA continu18 ation coverage, and who is uninsured. For purposes

19 of this subsection, an individual is considered to be

20 uninsured if the individual is not covered under a

21 group health plan, health insurance coverage, or

22 under such program or a program under title XVIII

23 or XXI of such Act.
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1 (2) LIMITATION TO 18 MONTHS OF COV2 ERAGE.—Assistance under this subsection shall end

3 with respect to an individual on the earlier of—

4 (A) the date the individual is no longer un5 insured; or

6 (B) 18 months after the date the indi7 vidual is first determined to be eligible for med8 ical assistance under this subsection.

9 (3) SPECIAL RULES.—In the case of medical as10 sistance provided under this subsection—

11 (A) the Federal medical assistance percent12 age under section 1905(b) of the Social Secu13 rity Act shall be 100 percent;

14 (B) a State may elect to disregard any in15 come, asset, or resource limitation imposed

16 under the State medicaid plan or under title

17 XIX of such Act;

18 (C) such medical assistance shall not be

19 provided for periods before the date the indi20 vidual is determined eligible for such assistance;

21 (D) a State may elect to make eligible for

22 such assistance a dependent spouse or children

23 of an individual eligible for medical assistance

24 under paragraph (1), if such spouse or children

25 are uninsured; and
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1 (E) individuals eligible for medical assist2 ance under this subsection shall be deemed to

3 be described in the list of individuals described

4 in the matter preceding paragraph (1) of sec5 tion 1905(a) of such Act.

6 SEC. 5. ADMINISTRATION.

7 The provisions of subchapter C of chapter 2 of title

8 II of the Trade Act of 1974 shall apply to the administra9 tion of the program under this Act in the same manner

10 and to the same extent as such provisions apply to the

11 administration of the program under subchapters A and

12 B of chapter 2 of title II of the Trade Act of 1974, except

13 that—

14 (1) the agreement between the Secretary and

15 the States described in section 239 of the Trade Act

16 of 1974 shall specify the procedures that will be

17 used to carry out the certification process under sec18 tion 3, the procedures for providing relevant data by

19 the Secretary to assist the States in making prelimi20 nary findings under section 3, and the adjustment

21 assistance described in section 4;

22 (2) the provisions of such subchapter C relating

23 to training shall not be applicable under this Act;

24 and
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1 (3) the provisions of such subchapter shall

2 apply to COBRA continuation coverage under sec3 tion 4(e) to the extent specified by the Secretary.

4 SEC. 6. REGULATIONS.

5 The Secretary—

6 (1) may issue interim regulations to carry out

7 this Act, notwithstanding chapters 5 and 7 of title

8 5, United States Code; and

9 (2) shall issue final regulations to carry out this

10 Act in accordance with such chapters.

11 SEC. 7. APPLICATION AND CONSTRUCTION.

12 (a) APPLICATION.—For purposes of applying provi13 sions of chapter 2 of title II of the Trade Act of 1974

14 under this Act, references in such chapter—

15 (1) to a worker shall be considered to be ref16 erences to an eligible employee;

17 (2) to a benefit shall be considered to be ref18 erences to the corresponding benefit provided under

19 this subsection to an eligible employee; and

20 (3) to a provision of chapter 2 of title II of the

21 Trade Act of 1974 shall be considered to be ref22 erences to the corresponding provision of this Act.

23 (b) CONSTRUCTION.—
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1 (1) NO IMPACT ON TRADE ADJUSTMENT AS2 SISTANCE.—Nothing in this Act shall be construed

3 to modify or affect title II of the Trade Act of 1974.

4 (2) NO IMPACT ON EXISTING AGREEMENTS AND

5 BENEFITS.—Nothing in this Act shall be construed

6 to diminish the obligation of an employer to comply

7 with any collective bargaining agreement or any em8 ployment benefit program or plan.

9 SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

10 (a) IN GENERAL.—There is authorized to be appro11 priated and there is appropriated to carry out this Act

12 a total of $3,750,000,000 for fiscal years 2002 and 2003.

13 (b) ADMINISTRATION.—There are authorized to be

14 appropriated and there are appropriated such sums as

15 may be necessary for the administration of this Act for

16 fiscal years 2002 and 2003 (but not more than

17 $37,500,000).

18 (c) DESIGNATION.—Congress designates the entire

19 amounts described in subsections (a) and (b) as emer20 gency requirements pursuant to section 252(e) of the Bal21 anced Budget and Emergency Deficit Control Act of 1985.

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