I
107TH CONGRESS
2D SESSION
H. R. 5678
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, security measures, or a military
conflict with Iraq.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 16, 2002
Mr. OBERSTAR (for himself, Mr. LIPINSKI, Mr. LARSEN of Washington, Mr.
HONDA, Ms. MILLENDER-MCDONALD, Ms. EDDIE BERNICE JOHNSON of
Texas, Mr. PASCRELL, Mr. CUMMINGS, Mr. MASCARA, Ms. NORTON, Mr.
CARSON of Oklahoma, Ms. BROWN of Florida, Mr. DEFAZIO, Mr. RA-
HALL, Mr. COSTELLO, Mr. HOLDEN, Mr. BLUMENAUER, Mr. NADLER,
Mr. BERRY, Mr. CAPUANO, Mr. MENENDEZ, Mr. BOSWELL, Mr. BORSKI,
Mr. SANDLIN, Ms. BERKLEY, Mr. BAIRD, Mr. MATHESON, Mr.
LAMPSON, and Mr. FILNER) introduced the following bill; which was re-
ferred to the Committee on Education and the Workforce, and in addition
to the Committees on Ways and Means, Energy and Commerce, and
Transportation and Infrastructure, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
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, security measures, or a military conflict with
Iraq.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Airline Worker Relief Act’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—ELIGIBILITY AND PROGRAM BENEFITS
Sec. 101. Definitions.
Sec. 102. Petitions and determinations.
Sec. 103. Program benefits.
Sec. 104. Administration.
Sec. 105. Regulations.
Sec. 106. Application and construction.
Sec. 107. Authorization of appropriations.
TITLE II—HEALTH INSURANCE COVERAGE OPTIONS FOR
ELIGIBLE INDIVIDUALS
Sec. 201. Premium assistance for COBRA continuation coverage for eligible in-
dividuals and their families.
Sec. 202. State option to provide temporary medicaid coverage for certain unin-
sured individuals.
Sec. 203. State option to provide temporary coverage under medicaid for the
unsubsidized portion of COBRA continuation premiums.
Sec. 204. Definitions.
TITLE III—OTHER BENEFITS
Sec. 301. Temporary extension of TEUCA for qualifying individuals.
Sec. 302. Preference for eligible individuals in hiring of airport security screen-
ing personnel.
Sec. 303. Performance incentive awards for hiring eligible employees.
TITLE I—ELIGIBILITY AND
PROGRAM BENEFITS
SEC. 101. DEFINITIONS.
In this Act:
(1) AFFECTED
AREA.—The term ‘‘affected
area’’ means an area that the Secretary determines
has a substantial number of eligible employees.
(2) AIR
CARRIER.—The term ‘‘air carrier’’
means an air carrier that holds a certificate issued
under chapter 411 of title 49, United States Code.
(3) COBRA CONTINUATION COVERAGE.—
(A) IN
GENERAL.—The term ‘‘COBRA
continuation coverage’’ means coverage under a
group health plan provided by an employer pur-
suant to title XXII of the Public Health Service
Act, section 4980B of the Internal Revenue
Code of 1986, part 6 of subtitle B of title I of
the Employee Retirement Income Security Act
of 1974, or section 8905a of title 5, United
States Code.
(B) APPLICATION
TO
EMPLOYERS
IN
STATES
REQUIRING
SUCH
COVERAGE.—Such
term includes such coverage provided by an em-
ployer in a State that has enacted a law that
requires the employer to provide such coverage
even though the employer would not otherwise
be required to provide such coverage under the
provisions of law referred to in subparagraph
(A).
(4) ELIGIBLE EMPLOYEE.—The term ‘‘eligible
employee’’ means an individual who has become to-
tally or partially separated, or is threatened to be-
come totally or partially separated, from employment
with an air carrier, employment at a facility at an
airport, employment that involves the provision of
transportation to or from an airport, or employment
with an upstream producer or supplier for an air
carrier, as a consequence of—
(A) reductions in service by an air carrier
as a result of a terrorist action or security
measure, as determined by the Secretary;
(B) a closure of an airport in the United
States as a result of a terrorist action or secu-
rity measure, as determined by the Secretary;
or
(C) a military conflict with Iraq that has
been authorized by Congress, as determined by
the Secretary.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Labor.
(6) SUPPLIER.—The term ‘‘supplier’’ means a
firm that produces component parts for, or articles
and contract services considered to be a part of the
production process or services for, another firm.
(7) TERRORIST
ACTION
OR
SECURITY
MEAS-
URE.—The term ‘‘terrorist action or security meas-
ure’’ means a terrorist attack on the United States
on September 11, 2001, or a security measure taken
in response to the attack.
(8) UPSTREAM
PRODUCER.—The term ‘‘up-
stream producer’’ means a firm that performs addi-
tional, value-added, production processes, including
firms that perform final assembly, finishing, or
packaging of articles, for another firm.
(9) OTHER TERMS.—Terms defined in section
247 of the Trade Act of 1974 shall have the mean-
ings given the terms in that section.
SEC. 102. PETITIONS AND DETERMINATIONS.
(a) PETITIONS.—A petition for a certification of eligi-
bility to apply for adjustment assistance under this Act
may be filed with the Secretary by a group of workers
or by their certified or recognized union or other duly au-
thorized representative. The Secretary shall comply with
the notice requirements of section 221 of the Trade Act
of 1974 with respect to the petition.
(b) CERTIFICATION.—
(1) IN GENERAL.—The Secretary shall certify a
group of workers as eligible to apply for adjustment
assistance under this Act if the Secretary determines
that a significant number or proportion of the work-
ers in such workers’ firm or an appropriate subdivi-
sion of the firm are eligible employees.
(2) CERTIFICATIONS WITH AND WITHOUT PETI-
TIONS.—The Secretary shall certify—
(A) a group that files a petition under sub-
section (a) and meets the requirements of para-
graph (1); and
(B) any other group that the Secretary de-
termines meets such requirements.
(3) OTHER
GROUPS.—A group described in
paragraph (2)(B) shall be deemed to have filed a pe-
tition under subsection (a) on the date of the certifi-
cation, for purposes of this Act (other than sub-
sections (a) and (c)).
(c) DETERMINATIONS.—
(1) PETITIONING GROUPS.—As soon as possible
after the date on which a petition is filed under sub-
section (a), but in any event not later than 40 days
after that date, the Secretary shall determine wheth-
er the petitioning group meets the requirements of
subsection (b)(1) and shall issue a certification of
eligibility to apply for adjustment assistance under
this Act covering workers in any group that meets
such requirements.
(2) OTHER GROUPS.—Not later than 30 days
after the date of enactment of this Act, the Sec-
retary shall determine groups of workers (other than
petitioning groups) that meet the requirements of
subsection (b)(1) and shall issue a certification of
eligibility to apply for adjustment assistance under
this Act covering workers in any group that meets
such requirements. In issuing the certifications, not
later than 30 days after the date of enactment of
this Act, the Secretary shall issue certifications cov-
ering all employees of air carriers.
(3) PROCEDURES.—The Secretary shall issue
and terminate such certifications in accordance with
section 223 of the Trade Act of 1974.
(d) INFORMATION.—The Secretary shall provide the
information, assistance, and notice described in section
225 of the Trade Act of 1974 with respect to certifications
made under subsection (b), and agreements entered into
and benefits available under this Act.
SEC. 103. PROGRAM BENEFITS.
(a) DETERMINATIONS.—The Secretary shall deter-
mine, with respect to an eligible employee covered by a
certification issued by the Secretary under section 102,
whether—
(1) the employee is unlikely to return to the in-
dustry involved;
(2) the employee is likely to return to that in-
dustry, but unlikely to return to the employee’s pre-
vious occupation in the industry; or
(3) the employee is likely to return to that occu-
pation.
(b) DIFFERENT INDUSTRY OR OCCUPATION.—If the
Secretary determines that an eligible employee described
in subsection (a) meets the requirements of paragraph (1)
or (2) of subsection (a) and engages in appropriate job
search activities, and that the employee and any training
approved by the Secretary for the employee meet the re-
quirements of paragraphs (1) and (3) of section 236(a)
of the Trade Act of 1974, the employee shall be provided,
in the same manner and to the same extent as an em-
ployee covered under a certification under subchapter A
of chapter 2 of title II of the Trade Act of 1974, 1 or
more of the following:
(1) Employment services described in section
235 of the Trade Act of 1974 (including, in the case
of an eligible employee in an affected area, employ-
ment services provided through programs developed
and conducted through partnerships between public
agencies, employers, and labor organizations).
(2) Training that consists of—
(A) training (including supplemental as-
sistance) described in section 236 of the Trade
Act of 1974, notwithstanding the provisions of
section 236(a)(2) of such Act;
(B) training for a position requiring dif-
ferent technical skill than the original position;
or
(C) in the case of an eligible employee in
an affected area, training provided through pro-
grams developed and conducted through part-
nerships between public agencies, employers,
and labor organizations.
(3) Readjustment allowances described in sec-
tions 231 through 234 of the Trade Act of 1974, ex-
cept that—
(A) an eligible employee is not required to
enroll in training to receive such an allowance;
and
(B) the reference in section 233(a)(1) of
the Trade Act of 1974 to ‘‘52’’ shall be consid-
ered to be a reference to ‘‘78’’.
(4) Job search allowances described in section
237 of the Trade Act of 1974.
(c) SAME INDUSTRY AND OCCUPATION.—If the Sec-
retary determines that an eligible employee described in
subsection (a) meets the requirements of subsection
(a)(3), the employee shall be provided, in the same manner
and to the same extent as an employee covered under a
certification under subchapter A of chapter 2 of title II
of the Trade Act of 1974, 1 or more of the following:
(1) Employment services described in section
235 of the Trade Act of 1974 (including, in the case
of an eligible employee in an affected area, employ-
ment services provided through programs developed
and conducted through partnerships between public
agencies, employers, and labor organizations).
(2) Readjustment allowances described in sec-
tions 231 through 234 of the Trade Act of 1974, ex-
cept that—
(A) an eligible employee is not required to
enroll in training to receive such an allowance;
and
(B) the reference in section 233(a)(1) of
the Trade Act of 1974 to ‘‘52’’ shall be consid-
ered to be a reference to ‘‘78’’.
(d) EMPLOYEES NOT ELIGIBLE
FOR UNEMPLOY-
MENT INSURANCE.—An eligible employee who is totally
separated from employment in a State who does not meet
the requirements of paragraphs (2) through (4) of section
231(a) of the Trade Act of 1974 shall be provided, under
this Act, only an allowance, for a period of 26 weeks, in
the amount of the average weekly benefit received by an
individual in the State under the State unemployment in-
surance program during the most recent 52-week period
for which data are available.
(e) PREMIUM ASSISTANCE FOR COBRA CONTINU-
ATION COVERAGE AND OTHER HEALTH CARE ASSIST-
ANCE.—In the case of an individual who is eligible for ben-
efits under subsection (b) or (c), the individual is also eli-
gible for health care benefits under title II.
SEC. 104. ADMINISTRATION.
The provisions of subchapter C of chapter 2 of title
II of the Trade Act of 1974 shall apply to the administra-
tion of the program under this Act in the same manner
and to the same extent as such provisions apply to the
administration of the program under subchapters A and
B of chapter 2 of title II of the Trade Act of 1974, except
that—
(1) the agreement between the Secretary and
the States described in section 239 of the Trade Act
of 1974 shall specify the procedures that will be
used to carry out the certification process under sec-
tion 102, the procedures for providing relevant data
by the Secretary to assist the States in making pre-
liminary findings under section 102, and the adjust-
ment assistance described in section 103;
(2) the provisions of such subchapter C relating
to training shall not be applicable under this Act;
and
(3) the provisions of such subchapter shall
apply to COBRA continuation coverage under sec-
tion 103(e) to the extent specified by the Secretary.
SEC. 105. REGULATIONS.
The Secretary—
(1) may issue interim regulations to carry out
this Act, notwithstanding chapters 5 and 7 of title
5, United States Code; and
(2) shall issue final regulations to carry out this
Act in accordance with such chapters.
SEC. 106. APPLICATION AND CONSTRUCTION.
(a) APPLICATION.—For purposes of applying provi-
sions of chapter 2 of title II of the Trade Act of 1974
under this Act, references in such chapter—
(1) to a worker shall be considered to be ref-
erences to an eligible employee;
(2) to a benefit shall be considered to be ref-
erences to the corresponding benefit provided under
this subsection to an eligible employee; and
(3) to a provision of chapter 2 of title II of the
Trade Act of 1974 shall be considered to be ref-
erences to the corresponding provision of this Act.
(b) CONSTRUCTION.—
(1) NO IMPACT ON TRADE ADJUSTMENT AS-
SISTANCE.—Nothing in this Act shall be construed
to modify or affect title II of the Trade Act of 1974.
(2) NO IMPACT ON EXISTING AGREEMENTS AND
BENEFITS.—Nothing in this Act shall be construed
to diminish the obligation of an employer to comply
with any collective bargaining agreement or any em-
ployment benefit program or plan.
SEC. 107. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There is authorized to be appro-
priated and there is appropriated to carry out this title
a total of $2,100,000,000 for fiscal years 2003 and 2004.
(b) ADMINISTRATION.—There are authorized to be
appropriated and there are appropriated such sums as
may be necessary for the administration of this Act for
fiscal years 2003 and 2004 (but not more than
$37,500,000).
(c) DESIGNATION.—Congress designates the entire
amounts described in subsections (a) and (b) as emer-
gency requirements pursuant to section 252(e) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985.
TITLE II—HEALTH INSURANCE
COVERAGE OPTIONS FOR ELI-
GIBLE INDIVIDUALS
SEC. 201. PREMIUM ASSISTANCE FOR COBRA CONTINU-
ATION COVERAGE FOR ELIGIBLE INDIVID-
UALS AND THEIR FAMILIES.
(a) ESTABLISHMENT.—Not later than 90 days after
the date of enactment of this Act, the Secretary of the
Treasury, in consultation with the Secretary of Labor,
shall establish a program under which 75 percent of the
premium for COBRA continuation coverage shall be pro-
vided for an eligible individual (as defined in section
204(3)) who is also eligible for COBRA continuation cov-
erage. Payment of such premium assistance may be made
through appropriate direct payment arrangements with
the group health plan or health insurance issuer involved.
The Secretary may require documentation of election of
benefits or proof of premium payment as a condition for
the receipt of such assistance.
(b) LIMITATION OF PERIOD OF PREMIUM ASSIST-
ANCE.—Premium assistance provided in accordance with
this section shall end with respect to an eligible individual
on the earlier of—
(1) the date the eligible individual is no longer
covered under COBRA continuation coverage; or
(2) 18 months after the date the eligible indi-
vidual is first enrolled in the premium assistance
program established under this section.
(c) PAYMENT ARRANGEMENTS; CREDITING OF AS-
SISTANCE.—
(1) PROVISION OF ASSISTANCE.—Premium as-
sistance shall be provided under the program estab-
lished under this section through direct payment ar-
rangements with a group health plan (including a
multiemployer plan), an issuer of health insurance
coverage, an administrator, or an employer as appro-
priate with respect to the eligible individual provided
such assistance.
(2) PREMIUMS
PAYABLE
BY
INDIVIDUAL
RE-
DUCED BY AMOUNT OF ASSISTANCE.—Premium as-
sistance provided under this section shall be credited
by the group health plan, issuer of health insurance
coverage, or an administrator against the premium
otherwise owed by the individual involved for
COBRA continuation coverage.
(d) PROGRAM REQUIREMENTS.—Premium assistance
shall be provided under the program established under this
section to any eligible individual. An eligible individual
may apply for such assistance at any time during the pe-
riod in which the individual is eligible for benefits under
subsection (b) or (c) of section 103.
(e) DISREGARD OF SUBSIDIES FOR PURPOSES OF
FEDERAL AND STATE PROGRAMS.—Notwithstanding any
other provision of law, any premium assistance provided
to, or on behalf of, an eligible individual under this section,
shall not be considered income or resources in determining
eligibility for, or the amount of assistance or benefits pro-
vided under, any other Federal public benefit or State or
local public benefit.
(f) CHANGE IN COBRA NOTICE.—
(1) GENERAL NOTICE.—
(A) IN GENERAL.—In the case of notices
provided under section 4980B(f)(6) of the In-
ternal Revenue Code of 1986, section 2206 of
the Public Health Service Act (42 U.S.C.
300bb–6), section 606 of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C.
1166), or section 8905a(f)(2)(A) of title 5,
United States Code, with respect to eligible in-
dividuals who become entitled to elect COBRA
continuation coverage under subsection (a),
such notices shall include an additional notifica-
tion to the recipient of the availability of pre-
mium assistance for such coverage under this
section and for temporary medicaid assistance
under section 203 for the remaining portion of
COBRA continuation premiums.
(B) ALTERNATIVE NOTICE.—In the case of
COBRA continuation coverage to which the no-
tice provision under such sections does not
apply, the Secretary of the Treasury, in con-
sultation with the Secretary of Labor, shall, in
coordination with administrators of the group
health plans (or other entities) that provide or
administer the COBRA continuation coverage
involved, assure the provision of such notice.
(C) FORM.—The requirement of the addi-
tional notification under this paragraph may be
met by amendment of existing notice forms or
by inclusion of a separate document with the
notice otherwise required.
(2) SPECIFIC REQUIREMENTS.—Each additional
notification under paragraph (1) shall include—
(A) the forms necessary for establishing
eligibility and enrollment in the premium assist-
ance program established under this section in
connection with the coverage with respect to
each eligible individual;
(B) the name, address, and telephone num-
ber necessary to contact the administrator and
any other person maintaining relevant informa-
tion in connection with the premium assistance;
and
(C) the following statement displayed in a
prominent manner:
‘‘You may be eligible to receive assistance with pay-
ment of 75 percent of your COBRA continuation coverage
premiums and with temporary medicaid coverage for the
remaining premium portion for a duration of not to exceed
12 months.’’.
(3) MODEL NOTICES.—Not later than 90 days
after the date of enactment of this Act, the Sec-
retary of the Treasury shall prescribe models for the
additional notification required under this sub-
section.
(g) EXTENSION OF 60-DAY COBRA CONTINUATION
ENROLLMENT PERIOD.—Notwithstanding any other pro-
vision of law, in the case of an eligible individual who has
not elected COBRA continuation coverage during the 60-
day enrollment period otherwise provided for such cov-
erage, if such enrollment period began before the date of
the enactment of this Act—