Title: Payroll Support Program Extension Act
Policy area: Transportation and Public Works

Summary:
Payroll Support Program Extension Act
This bill extends authority through March 31, 2021, for the Department of the Treasury to provide financial assistance to passenger air carriers, cargo air carriers, and contractors of passenger air carriers for the continuation of payment of employee wages, salaries, and benefits during the COVID-19 (i.e., coronavirus disease 2019) pandemic.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8504 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 8504

     To extend the Payroll Support Program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 2, 2020

 Mr. DeFazio (for himself and Mr. Larsen of Washington) introduced the 
   following bill; which was referred to the Committee on Financial 
   Services, and in addition to the Committees on Transportation and 
    Infrastructure, and the Budget, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
     To extend the Payroll Support Program, 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 ``Payroll Support Program Extension 
Act''.

SEC. 2. DEFINITIONS.

    Unless otherwise specified, the definitions in section 40102(a) of 
title 49, United States Code, shall apply to this Act, except that--
            (1) the term ``airline catering employee'' means an 
        employee who performs airline catering services;
            (2) the term ``airline catering services'' means 
        preparation, assembly, or both, of food, beverages, provisions 
        and related supplies for delivery, and the delivery of such 
        items, directly to aircraft or to a location on or near airport 
        property for subsequent delivery to aircraft;
            (3) the term ``contractor'' means--
                    (A) a person that performs, under contract with a 
                passenger air carrier conducting operations under part 
                121 of title 14, Code of Federal Regulations--
                            (i) catering functions; or
                            (ii) functions on the property of an 
                        airport that are directly related to the air 
                        transportation of persons, property, or mail, 
                        including but not limited to the loading and 
                        unloading of property on aircraft; assistance 
                        to passengers under part 382 of title 14, Code 
                        of Federal Regulations; security; airport 
                        ticketing and check-in functions; ground-
                        handling of aircraft; or aircraft cleaning and 
                        sanitization functions and waste removal; or
                    (B) a subcontractor that performs such functions;
            (4) the term ``employee'' means an individual, other than a 
        corporate officer, who is employed by an air carrier or a 
        contractor; and
            (5) the term ``Secretary'' means the Secretary of the 
        Treasury.

SEC. 3. PANDEMIC RELIEF FOR AVIATION WORKERS.

    (a) Financial Assistance for Employee Wages, Salaries, and 
Benefits.--Notwithstanding any other provision of law, to preserve 
aviation jobs and compensate air carrier industry workers, the 
Secretary shall provide financial assistance that shall exclusively be 
used for the continuation of payment of employee wages, salaries, and 
benefits to--
            (1) passenger air carriers, in an aggregate amount up to 
        $25,500,000,000;
            (2) cargo air carriers, in an aggregate amount up to 
        $300,000,000; and
            (3) contractors, in an aggregate amount up to 
        $3,000,000,000.
    (b) Administrative Expenses.--Notwithstanding any other provision 
of law, the Secretary may use funds made available under section 
4112(b) of the CARES Act (15 U.S.C. 9072(b)) for costs and 
administrative expenses associated with providing financial assistance 
under this Act.

SEC. 4. PROCEDURES FOR PROVIDING PAYROLL SUPPORT.

    (a) Awardable Amounts.--The Secretary shall provide financial 
assistance under this Act--
            (1) to an air carrier required to file reports pursuant to 
        part 241 of title 14, Code of Federal Regulations, as of March 
        27, 2020, in an amount equal to--
                    (A) the amount such air carrier received under 
                section 4113 of the CARES Act (15 U.S.C. 9073); or
                    (B) at the request of such air carrier, or in the 
                event such an air carrier did not receive assistance 
                under section 4113 of the CARES Act (15 U.S.C. 9073), 
                the amount of the salaries and benefits reported by the 
                air carrier to the Department of Transportation 
                pursuant to such part 241, for the period from October 
                1, 2019, through March 31, 2020;
            (2) to an air carrier that did not transmit reports under 
        such part 241, as of March 27, 2020, in an amount equal to--
                    (A) the amount such air carrier received under 
                section 4113 of the CARES Act (15 U.S.C. 9073), plus an 
                additional 15 percent of such amount;
                    (B) in the event such an air carrier did not 
                receive assistance under section 4113 of the CARES Act 
                (15 U.S.C. 9073), an amount that such an air carrier 
                certifies, using sworn financial statements or other 
                appropriate data, as the amount of total salaries and 
                related fringe benefits that such air carrier incurred 
                and would be required to be reported to the Department 
                of Transportation pursuant to such part 241, if the air 
                carrier were required to transmit such information 
                during the period from October 1, 2019, through March 
                31, 2020; or
                    (C) at the request of such carrier, provided such 
                carrier received assistance under section 4113 of the 
                CARES Act (15 U.S.C. 9073), the sum of--
                            (i) the amount that such air carrier 
                        certifies, using sworn financial statements or 
                        other appropriate data, as the amount of total 
                        salaries and related fringe benefits that such 
                        air carrier incurred and would be required to 
                        be reported to the Department of Transportation 
                        pursuant to such part 241, if the carrier were 
                        required to transmit such information during 
                        the period from October 1, 2019, through March 
                        31, 2020; and
                            (ii) an additional amount equal to the 
                        difference between the amount certified under 
                        clause (i) and the amount the air carrier 
                        received under section 4113 of the CARES Act 
                        (15 U.S.C. 9073); and
            (3) to a contractor in an amount equal to--
                    (A) the amount such contractor received under 
                section 4113 of the CARES Act (15 U.S.C. 9073); or
                    (B) in the event such contractor did not receive 
                assistance under section 4113 of the CARES Act (15 
                U.S.C. 9073), an amount that the contractor certifies, 
                using sworn financial statements or other appropriate 
                data, as the amount of wages, salaries, benefits, and 
                other compensation that such contractor paid the 
                employees of such contractor during the period from 
                October 1, 2019, through March 31, 2020.
    (b) Deadlines and Procedures.--
            (1) In general.--
                    (A) Forms; terms and conditions.--Financial 
                assistance provided to an air carrier or contractor 
                under this Act shall--
                            (i) be in such form, on such terms and 
                        conditions (including requirements for audits 
                        and the clawback of any financial assistance 
                        provided upon failure by a passenger air 
                        carrier, cargo air carrier, or contractor to 
                        honor the assurances specified in section 5), 
                        as agreed to by the Secretary and the recipient 
                        for assistance received under section 4113 of 
                        the CARES Act (15 U.S.C. 9073), except where 
                        inconsistent with this Act; or
                            (ii) in the event such an air carrier or 
                        contractor did not receive assistance under 
                        section 4113 of the CARES Act (15 U.S.C. 9073), 
                        be in such form, on such terms and conditions 
                        (including requirements for audits and the 
                        clawback of any financial assistance provided 
                        upon failure by a passenger air carrier, cargo 
                        air carrier, or contractor to honor the 
                        assurances specified in section 5), as the 
                        Secretary determines appropriate.
                    (B) Procedures.--The Secretary shall publish 
                streamlined and expedited procedures not later than 5 
                days after the date of enactment of this Act for air 
                carriers and contractors to submit requests for 
                financial assistance under this Act.
            (2) Deadline for immediate payroll assistance.--Not later 
        than 10 days after the date of enactment of this Act, the 
        Secretary shall make initial payments to air carriers and 
        contractors that submit requests for financial assistance 
        approved by to the Secretary.
    (d) Pro Rata Reductions.--The amounts under subsections (a)(1)(B) 
and (a)(2)(B) shall, to the maximum extent practicable, be subject to 
the same pro rata reduction applied by the Secretary to air carriers or 
contractors, as applicable, that received assistance under section 4113 
of the CARES Act (15 U.S.C. 9073).
    (e) Audits.--The Inspector General of the Department of the 
Treasury shall audit certifications made under subsection (a).

SEC. 5. REQUIRED ASSURANCES.

    (a) In General.--To be eligible for financial assistance under this 
Act, an air carrier or contractor shall enter into an agreement with 
the Secretary, or otherwise certify in such form and manner as the 
Secretary shall prescribe, that the air carrier or contractor shall--
            (1) refrain from conducting involuntary furloughs or 
        reducing pay rates and benefits until--
                    (A) with respect to air carriers, March 31, 2021; 
                or
                    (B) with respect to contractors, March 31, 2021, or 
                the date on which the contractor exhausts such 
                financial assistance, whichever is later;
            (2) ensure that neither the air carrier or contractor nor 
        any affiliate of the air carrier or contractor may, in any 
        transaction, purchase an equity security of the air carrier or 
        contractor or the parent company of the air carrier or 
        contractor that is listed on a national securities exchange 
        through--
                    (A) with respect to air carriers, March 31, 2022; 
                or
                    (B) with respect to contractors, March 31, 2022, or 
                the date on which the contractor exhausts such 
                financial assistance, whichever is later;
            (3) ensure that the air carrier or contractor shall not pay 
        dividends, or make other capital distributions, with respect to 
        common stock (or equivalent interest) of the air carrier or 
        contractor through--
                    (A) with respect to air carriers, March 31, 2022; 
                or
                    (B) with respect to contractors, March 31, 2022, or 
                the date on which the contractor exhausts such 
                financial assistance, whichever is later;
            (4) meet the requirements of sections 6 and 7; and
            (5) affirm that the air carrier or contractor has--
                    (A) in the case of an air carrier or contractor 
                that received loans, loan guarantees, other 
                investments, or financial assistance under title IV of 
                the CARES Act, recalled any employees involuntarily 
                furloughed by such air carrier or contractor between 
                March 27, 2020, and the date such air carrier or 
                contractor enters into an agreement with the Secretary 
                for financial assistance under this Act, compensated 
                such employees for lost pay and benefits, and restored 
                the rights and protections for such employees as if 
                they had not been involuntarily furloughed; or
                    (B) in the case of an air carrier or contractor 
                that did not receive loans, loan guarantees, other 
                investments, or financial assistance under title IV of 
                the CARES Act, recalled any employees involuntarily 
                furloughed by such air carrier or contractor between 
                October 1, 2020, and the date such air carrier or 
                contractor enters into an agreement with the Secretary 
                for financial assistance under this Act, compensated 
                such employees for lost pay and benefits, and restored 
                the rights and protections for such employees as if 
                they had not been involuntarily furloughed.

SEC. 6. PROTECTION OF COLLECTIVE BARGAINING AGREEMENTS.

    (a) In General.--Neither the Secretary, nor any other actor, 
department, or agency of the Federal Government, shall condition the 
issuance of financial assistance under this Act on an air carrier's or 
contractor's implementation of measures to enter into negotiations with 
the certified bargaining representative of a craft or class of 
employees of the air carrier or contractor under the Railway Labor Act 
(45 U.S.C. 151 et seq.) or the National Labor Relations Act (29 U.S.C. 
151 et seq.), regarding pay or other terms and conditions of 
employment.
    (b) Air Carrier Period of Effect.--With respect to any air carrier 
to which financial assistance is provided under this Act, this section 
shall be in effect with respect to the air carrier beginning on the 
date on which the air carrier is first issued such financial assistance 
and ending on March 31, 2021.
    (c) Contractor Period of Effect.--With respect to any contractor to 
which financial assistance is provided under this Act, this section 
shall be in effect with respect to contractor beginning on the date on 
which the contractor is first issued such financial assistance and 
ending on March 31, 2021, or until the date on which all funds are 
expended, whichever is later.

SEC. 7. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.

    (a) In General.--The Secretary may only provide financial 
assistance under this Act to an air carrier or contractor after such 
carrier or contractor enters into an agreement with the Secretary which 
provides that, during the 2-year period beginning October 1, 2020, and 
ending October 1, 2022, no officer or employee of the air carrier or 
contractor whose total compensation exceeded $425,000 in calendar year 
2019 (other than an employee whose compensation is determined through 
an existing collective bargaining agreement entered into prior to 
enactment of this Act)--
            (1) will receive from the air carrier or contractor total 
        compensation which exceeds, during any 12 consecutive months of 
        such 2-year period, the total compensation received by the 
        officer or employee from the air carrier or contractor in 
        calendar year 2019;
            (2) will receive from the air carrier or contractor 
        severance pay or other benefits upon termination of employment 
        with the air carrier or contractor which exceeds twice the 
        maximum total compensation received by the officer or employee 
        from the air carrier or contractor in calendar year 2019; and
            (3) no officer or employee of the air carrier or contractor 
        whose total compensation exceeded $3,000,000 in calendar year 
        2019 may receive during any 12 consecutive months of such 
        period total compensation in excess of the sum of--
                    (A) $3,000,000; and
                    (B) 50 percent of the excess over $3,000,000 of the 
                total compensation received by the officer or employee 
                from the air carrier or contractor in calendar year 
                2019.
    (b) Total Compensation Defined.--In this section, the term ``total 
compensation'' includes salary, bonuses, awards of stock, and other 
financial benefits provided by an air carrier or contractor to an 
officer or employee of the air carrier or contractor.

SEC. 8. MINIMUM AIR SERVICE GUARANTEES.

    (a) In General.--The Secretary of Transportation is authorized to 
require, to the extent reasonable and practicable, an air carrier 
provided financial assistance under this Act to maintain scheduled air 
transportation, as the Secretary of Transportation determines 
necessary, to ensure services to any point served by that air carrier 
before March 1, 2020, continues to receive a basic level of air 
service.
    (b) Required Considerations.--When considering whether to exercise 
the authority provided by this section, the Secretary of Transportation 
shall take into consideration the air transportation needs of small and 
remote communities, the need to maintain well-functioning health care 
supply chains, including medical devices and supplies, and 
pharmaceutical supply chains, and such other matters as the public 
interest requires.
    (c) Sunset.--The authority provided under this section shall 
terminate on September 1, 2022, and any requirements issued by the 
Secretary of Transportation under this section shall cease to apply 
after that date.

SEC. 9. TAX PAYER PROTECTION.

    (a) Cares Act Assistance Recipients.--With respect to a recipient 
of assistance under section 4113 of the CARES Act (15 U.S.C. 9073) that 
receives assistance under this Act, the Secretary may receive warrants, 
options, preferred stock, debt securities, notes, or other financial 
instruments issued by such recipient in the same form and amount, and 
under the same terms and conditions, as agreed to by the Secretary and 
the recipient for assistance received under such section 4113 to 
provide appropriate compensation to the Federal Government for the 
provision of the financial assistance under this Act.
    (b) Other Applicants.--With respect to an applicant that did not 
receive assistance under such section 4113, the Secretary may receive 
warrants, options, preferred stock, debt securities, notes, or other 
financial instruments issued by an applicant that receives assistance 
under this Act in a form and amount that are, to the maximum extent 
practicable, the same as the terms and conditions as agreed to by the 
Secretary and similarly situated recipients of assistance under such 
section 4113 to provide appropriate compensation to the Federal 
Government for the provision of the financial assistance under this 
Act.

SEC. 10. REPORTS.

    (a) Report.--Not later than May 1, 2021, the Secretary shall update 
and submit to the Committee on Transportation and Infrastructure and 
the Committee on Financial Services of the House of Representatives and 
the Committee on Commerce, Science, and Transportation and the 
Committee on Banking, Housing, and Urban Affairs of the Senate a report 
on the financial assistance provided to air carriers and contractors 
under this Act, which includes--
            (1) a description of any financial assistance provided to 
        air carrier and contractors under this Act;
            (2) any audits of air carriers or contractors receiving 
        financial assistance under this Act;
            (3) any reports filed by air carriers or contractors 
        receiving financial assistance under this Act;
            (4) any non-compliances by air carriers or contractors 
        receiving financial assistance under this Act with the terms 
        and conditions of this Act or agreements entered into with the 
        Secretary to receive such financial assistance; and
            (5) information relating to any clawback of any financial 
        assistance provided to air carriers or contractors under this 
        Act.
    (b) Internet Updates.--The Secretary shall update the website of 
the Department of the Treasury on a daily basis as necessary to reflect 
new or revised distributions of financial assistance under this Act 
with respect to each air carrier or contractor that receives such 
assistance, the identification of any applicant that applied for 
financial assistance under this Act, and the date of application.
    (c) Supplemental Update.--Not later than the last day of the 1-year 
period following the date of enactment of this Act, the Secretary shall 
update and submit to the Committee on Transportation and Infrastructure 
and the Committee on Financial Services of the House of Representatives 
and the Committee on Commerce, Science, and Transportation and the 
Committee on Banking, Housing, and Urban Affairs of the Senate, the 
report submitted under subsection (a).

SEC. 11. COORDINATION.

    In implementing this Act, the Secretary shall coordinate with the 
Secretary of Transportation.

SEC. 12. DIRECT APPROPRIATION.

    Notwithstanding any other provision of law, there is appropriated, 
out of amounts in the Treasury not otherwise appropriated, 
$28,800,000,000 to carry out this Act.

SEC. 13. TECHNICAL CORRECTIONS AND CLARIFICATION.

    (a) Section 4003(c)(1)(B) of the CARES Act (15 U.S.C. 
9042(c)(1)(B)) is amended--
            (1) by striking ``As soon'' and inserting the following:
                            ``(i) In general.--Subject to clause (ii), 
                        as soon''; and
            (2) by adding at the end the following:
                            ``(ii) Requirement.--The procedures and any 
                        related guidance issued under clause (i) shall 
                        not prohibit any air carrier from applying for 
                        or receiving a loan or loan guarantee under 
                        paragraph (1), (2), or (3) of subsection (b) 
                        based on the amount of the loan or loan 
                        guarantee requested.''.
    (b) Section 4113(c) of the CARES Act (15 U.S.C. 9073(c)) is 
amended--
            (1) by striking `` section 4112'' and inserting 
        ``subsection (a)''; and
            (2) by striking ``such section'' and inserting ``such 
        subsection''.
    (c) Section 4114 of the CARES Act (15 U.S.C. 9074) is amended by 
adding at the end the following new subsections:
    ``(c) Continued Application.--
            ``(1) In general.--If, after September 30, 2020, a 
        contractor expends funds made available pursuant to section 
        4112 and distributed pursuant to section 4113, the assurances 
        under this section shall continue to apply until all funds are 
        expended, notwithstanding the time limits included in 
        paragraphs (1) through (3) of subsection (a), or section 4115 
        or 4116.
            ``(2) Special rule.--Not later than January 5, 2021, each 
        contractor that has received funds pursuant to such section 
        4112 shall report to the Secretary on the amount of such funds 
        that the contractor has expended through December 31, 2020. If 
        the contractor has expended an amount that is less than 50 
        percent of the total amount of funds the contractor received 
        under such section, the Secretary shall initiate an action to 
        recover any funds that remain unexpended as of January 31, 
        2021.
    ``(d) Clawback of Assistance.--Any contractor that conducted 
involuntary furloughs or reduced pay rates and benefits, between March 
27, 2020, and the date on which the contractor entered into an 
agreement with the Secretary related to financial assistance under this 
subtitle, shall recall employees who were involuntary furloughed, or 
the Secretary shall claw back such financial assistance, as 
necessary.''.
    (d) With respect to loans issued under paragraph (1) or (2) of 
section 4003(b) of the CARES Act (15 U.S.C. 9042(b)) after the date of 
enactment of this Act to an air carrier, the Secretary may accept an 
unsecured debt instrument (in addition to a senior secured debt 
instrument) for a total loan allocation less than $300,000,000, if the 
air carrier certifies that the air carrier cannot feasibly issue 
collateral sufficient to receive the full amount of its loan 
allocation.

SEC. 14. EMERGENCY REQUIREMENT.

    (a) In General.--This Act is designated as an emergency requirement 
pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 
U.S.C. 933(g)).
    (b) Designation in Senate.--In the Senate, this Act is designated 
as an emergency requirement pursuant to section 4112(a) of H. Con. Res. 
71 (115th Congress), the concurrent resolution on the budget for fiscal 
year 2018.
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