SECTION 222. GROUP ELIGIBILITY REQUIREMENTS

Section 222 replaces section 301 (c) (2) and (3) of the Trade Expansion Act of 1962. It provides new criteria for certification of eligibility of groups of workers to apply for adjustment assistance and substitutes the Secretary of Labor for the Tariff Commission for the purpose of determiniing whether the criteria are met.

This section also eliminates the requirement in the Trade Expansion Act of a causal link of increased imports to trade agreement concessions, and requires that increased imports only "contribute substantially" to the separations rather than being the major cause. It adds the requirement that sales or production, or both, of the affected firm or subdivision must have declined on an absolute basis.

SECTION 223. DETERMINATION BY SECRETARY OF LABOR

Subsection (a) provides that as soon as possible but not later than 60 days after a petition is filed under section 221, the Secretary shall determine whether the petitioning group of workers meets the eligibility requirements of section 222, and shall issue a certification of eligibility to apply for adjustment assistance under subchapter B covering workers in any group which meets such requirements. The certification is of a continuing nature and covers not only workers totally or partially separated from the impact date through the period ending with the date of the certification but separation of other workers thereafter. Each certification shall specify the date on which the total or partial separation began or threatened to begin. The date to be determined is the earliest date on which any part of the total or partial separations involving a significant number or proportion of workers began or threatens to begin. The date when total or partial separations threatens to begin is the date on which they are expected to begin.

Subsection (b) provides that a certification of eligibility to apply for assistance shall not apply to any worker who was last totally or partially separated from the firm or subdivision prior to his application under section 231 (1) more than one year before the date of the petition upon which the certification covering him was granted or (2) more than six months before the effective date of this Act. Section 244 (b) adjusts the applicable petition date for subsection (b)(1) and makes subsection (b) (2) inapplicable in the case of groups and workers meeting certain requirements set forth therein.

Subsection (c) authorizes the Secretary to request the Tariff Commission to conduct an investigation of the facts relevant to a determination under section 223 and to report the results within a specified time. The Secretary may state the particular kinds of data which he deems appropriate to be included. This is not intended, however, to preclude the Tariff Commission from gathering and including in its report such additional data as it considers relevant.

Subsection (d) requires the Secretary to publish promptly in the Federal Register a summary of his determination on a petition under subsection (a). If the determination is affirmative, the Secretary would issue a certification and the summary would therefore be of the certification.

Subsection (e) provides for the termination of certifications of eligibility to apply for adjustment assistance if the Secretary determines that total or partial separations are no longer attritutable to the conditions specified under section 222. This subsection is the same in substance as section 302 (e) of the Trade Expansion Act, except that the Secretary is given the statutory authority to terminate, instead of by delegation from the President, and the publication of terminations in the Federal Register is expressly required by statuts instead of by regulation. As in the existing provisions, it is expressly provided that such termination shall apply only to total or partial separation occurring after the termination date specified by the Secretary. Therefore, the termination would not affect the eligibility of workers separated before the termination date to apply for and receive assistance.

Subchapter B-Program Benefits

Part I-Supplemental Payments

SECTION 231. QUALIFYING REQUIREMENTS FOR WORKERS

This section states the qualifications an individual worker must have in order to obtain supplemental payments for weeks in which he is entitled to State un

employment insurance payments. The qualifications are similar to those in section 322 of the Trade Expansion Act. The major differences, in subsection (B), are omission of the requirement of employment during 78 of 156 weeks immediately preceding total or partial separation, an increase of the wages for a qualifying week of employment from $15 to $30, and the new requirement that the qualifying weeks be with a single firm or subdivision of a firm.

In order to qualify for unemployment insurance supplemental payments, an adversely affected worker covered by a certification under subchapter A must file an application with a cooperating State agency. The worker's last total or partial separation before he applies must have occurred after the "impact date" (the date specified in the certification when total or partial separation began or threatened to begin), within two years after the Secretary issued the certification covering the worker, and before the termination date determined under section 233 (e). The date of issuance of the certification is the date on which the Secretary or his delegate signs the certification. The worker must also have had 26 weeks of employment with a single firm or subdivision at $30 or more wages a week in adversely affected employment within the 52 weeks immediately preceding his total or partial separation.

SECTION 232. SUPPLEMENT TO UNEMPLOYMENT INSURANCE

This section establishes the amount of supplemental payment that an adversely affected worker who receives State unemployment insurance for a week of unemployment and meets the qualifying requirements of section 231 shall receive. A supplemental payment is equal to the amount (if any) by which the State unemployment insurance he receives for such week is less than the payment he would have received if under the State law his weekly benefit amount was one-half of his average weekly wage, or the maximum weekly benefit amount, whichever is less. The maximum weekly benefit amount used in computing the weekly benefit amount which he would have received, for trade readjustment purposes, would be 66% percent of the statewide average weekly wage computed before the beginning of the applicant's benefit year as that term is defined in the State law. Each State would be required to compute the statewide average weekly wage at least once a year. This establishes a Federal standard by which to measure the amount to be paid as a supplement to State unemployment insurance.

Legislation is being introduced amending section 3304 (a) of the Internal Revenue Code to require State unemployment insurance laws with respect to benefit years beginning on and after July 1, 1975 to provide weekly benefit amounts which will meet, as a minimum, precisely the same standard here proposed. If such legislation is enacted in the form proposed, on and after July 1, 1975, it is most likely that all adversely affected workers would receive an amount of State unemployment insurance which would make supplementation unnecessary.

If the State weekly benefit amount of unemployment insurance equaled or exceeded the Federal standard, no trade readjustment allowance would be paid. No adversely affected worker would receive total benefits (State unemployment insurance and Federal supplement, if necessary) less than the Federal standard. Subsection (c) defines the terms used in establishing the weekly benefit amount on the basis of which the supplemental payment would be made. "Benefit year" would be the benefit year as defined in State law but could not be more than a one-year period beginning after the end of the individual's base period. "Base period" would be the base period as defined in State law with the limitation that it be either 52 consecutive weeks, one year, or four calendar quarters and could not end earlier than six months prior to the beginning of an individual's benefit year. This is to assure that the weekly benefit amount is based on recent earnings.

The definition of "individual's average weekly wage" takes account of variations in State laws. Where a State computes weekly benefit amounts on the basis of high quarter wages, the average weekly wage would be 1/13th of the amount of wages received in such quarter. In other States, the average weekly wage will be computed on the basis of a simple formula. Total wages in the base period will be divided by the number of weeks in the base period during which the individual performed services in employment covered under the State law during the base period. "High quarter wages" are the amount of wages paid to an individual in that quarter of his base period in which the wages were the highest.

The "statewide average weekly wage" will be total wages paid by covered employers in the State for the first four of the last six completed calendar quarters divided by the average number of workers in covered employment during the same four quarter period. Since the figures used in the computation will be based on reports furnished by employers, there is a lag between the period used in making the computation and the computation date to enable the State agency to collect the data needed to make the computation.

Part II-Training and Related Services

SECTION 233. EMPLOYMENT SERVICES

Section 233 provides that the Secretary shall make every reasonable effort to secure counseling, testing, and placement services, and supportive and other services provided for under any Federal law for adversely affected workers covered by a certification under subchapter A of chapter 2. The Secretary shall procure such services through agreements with cooperating State agencies whenever appropriate.

It is the intention under this provision that the Secretary shall make arrangements for effective referral of the workers for the services to the extent such services are provided for under any other Federal law, and that appropriations made available under this Act are not to be expended to defray the cost or expense of the actual services. In procuring such services through agreements with cooperating State agencies, it is expected that the services will be funded through funds made available under other programs, including under revenuesharing arrangements.

As used in section 233, it is intended that the phrase "supportive and other services" includes, to the extent provided in Federal law, services such as work orientation, basic education, communication skills, employment skills, minor health services, and other services which are necessary to prepare a worker for full employment. It is intended that the minor health services referred to above shall be limited to those which are necessary to correct a condition that would otherwise prevent a worker from being able to accept a training or employment opportunity.

SECTION 234. TRAINING

This section authorizes the Secretary to provide or assure provision of appropriate training to trade-impacted workers under manpower and related service programs established by law, on a priority basis.

Subsection (a) provides that the Secretary may authorize training, under manpower and related service programs established by law for adversely affected workers covered under certifications under subchapter A for whom suitable employment (including technical and professional employment) would be available only after such training. These provisions are similar to section 326(a) of the Trade Expansion Act.

Subsection (a) also provides that the Secretary shall assure the provision of training, insofar as possible, on a priority basis. In relation to Federally financed manpower training programs, this language authorizes the Secretary to exercise such guidance and control as is possible in order to assure that manpower funds allocated to and primarily administered by State and local officials shall be used to serve workers certificated under this chapter. The reference to priority is intended to place such workers in a favored position if training resources are not adequate to meet the needs of all applicants. The only other such priority with statutory support is that provided for veterans in Title V of Public Law 92-540. As under section 233, it is intended that appropriations under this Act will not be expended to defray the cost or expense of training, but that funds available under other programs, including revenue sharing arrangements, shall be utilized. Subsection (b) authorizes supplemental assistance to defray transportation and subsistence costs when training is provided in facilities which are not within commuting distance. This provision is identical in substance to section 326 (a) of the Trade Expansion Act, including the maximum amounts of $5 per day for subsistence and 10¢ per mile for transportation expenses.

Subsection (c) provides that the Secretary shall not authorize training which begins more than one year after the certification under subchapter A or of the worker's last total or partial separation before applying under subchapter B, whichever is later. There is no directly comparable section in the Trade Expansion Act.

Subsection (d) provides that any worker refusing without good cause to accept or continue, or failing to make satisfactory progress in suitable training to which he was referred by the Secretary shall be disqualified from receiving payments under this chapter until he enters or resumes the training. This subsection is identical in substance to section 327 of the Trade Expansion Act.

Part III-Job search and relocation allowances

SECTION 285. JOB SEARCH ALLOWANCES

This section provides that a worker covered by a certification under subchapter A may file an application with the Secretary for a job search allowance. This allowance provides reimbursement to the worker of 80 percent of the cost of his necessary job search expenses, not to exceed $500.

The allowance can only be granted to assist the worker in obtaining employment within the United States, only when the worker cannot reasonably be expected to obtain suitable employment in his commuting area, and only if the application for the allowance is filed within one year from his last total separation prior to applying under section 231.

SECTION 236. RELOCATION ALLOWANCES

Section 236 retains most of the provisions for relocation allowances under sections 328, 329, and 330 of the Trade Expansion Act.

Subsection (a) is identical in substance to section 328 of the Trade Expansion Act. Relocation allowances are afforded (upon application and meeting qualifying requirements) to any adversely affected worker covered by a certification under subchapter A of this chapter who is the head of a family, as defined in regulations prescribed by the Secretary, and who has been totally separated from adversely affected employment. The qualifying requirements of subsection (b) are identical to those of section 329 (a) of the Trade Expansion Act.

Subsection (c), which is comparable to section 329 (b) of the Trade Expansion Act, authorizes payment of a relocation allowance only if for the week in which the worker files an application for such allowance, he is entitled to a supplemental payment under section 232, or would be so entitled (without regard to whether he filed application for the supplemental payment) if it were not for the fact that he has either obtained the employment to which he wishes to relocate, or received an unemployment insurance payment equal to or greater than the payment he would have received for such week had the applicable State law provided as set forth in section 232(a) (1) and (2) of this Act.

Subsection (c) also provides that to be entitled to a relocation allowance, the worker must relocate within a reasonable time after he applies for such allowance. If the applicant is a worker undergoing vocational training under the provisions of any Federal statute he must relocate within a reasonable time after the conclusion of such training.

Subsection (d) changes the definition and therefore the amounts of the relocation allowances under section 330 of the Trade Expansion Act. "Relocation allowance" is defined as (1) 80 percent of the reasonable and necessary expenses (as specified in regulations prescribed by the Secretary of Labor) incurred in transporting the worker, his family, and their household effects from their present location, and (2) a lump sum payment equivalent to three times the worker's average weekly wage, up to a maximum payment of $500.

Subchapter C-General Provisions

SECTION 237. AGREEMENTS WITH STATES

Subsections (a), (b) and (c) of this section provide for agreements between the Secretary and States or State agencies to carry out the functions required under subchapter B. These subsections are substantially the same as section 331 of the Trade Expansion Act. Subsection (d), which provides for review of State determinations made under terms of such agreements differs somewhat from the review provision under section 336 of the Trade Expansion Act.

Subsection (a) authorizes the Secretary to enter into agreements under which States or State agencies will, as agents of the United States: (1) receive applications and provide payments as provided in this chapter; (2) offer testing, counseling, referral to training, and placement services to adversely affected

workers applying for payments, where appropriate, and (3) otherwise cooperate in providing payments and services under this chapter.

Subsection (b) states that agreements shall include terms and conditions for amendment, suspension or termination. Subsection (c) requires that agreements shall not deny or reduce unemployment insurance payments to adversely affected workers by reason of any right to payments under this chapter.

Subsection (d) provides that determinations with respect to entitlement to payments made by cooperating State agencies under agreements with the Secretary shall be subject to review in exactly the same manner and to the same extent as determinations under the applicable State law. Section 336 of the Trade Expansion Act provided for such review to the maximum extent practicable and consistent with the worker assistance provisions of that Act. Subsection (d) has the effect of channeling all questions arising from determinations by State agencies under subchapter B through the normal State review procedure.

SECTION 238. ADMINISTRATION ABSENT STATE AGREEMENT

Subsection (a) authorizes the Secretary to arrange by regulations for performance of necessary functions under subchapter B where there is no agreement in force with a State or State agency. Among the functions to be carried out is provision of a fair hearing for any worker whose application for payments is denied. This provision follows the terms of 5 U.S.C. § 8503 (c), a section that states the procedures for provision of unemployment compensation to Federal employees absent a State agreement to administer that compensation program. Subsection (b) provides for review by the courts of final determinations under subsection (a) of entitlement to payments under subchapter B in the same manner and to the same extent as is provided by 42 U.S.C. § 405 (g), the judicial review provision for the social security program. Section 336 of the Trade Expansion Act provides that determinations as to entitlement of individuals for adjustment assistance shall be final and not subject to court review except as provided in the Secretary's regulations.

SECTION 239. PAYMENTS TO STATES

This section provides that the State agencies pay supplemental payments out of funds advanced to them from the Federal Treasury.

The section eliminates the requirement of section 332 (a) (2) of the Trade Expansion Act that the Federal Government reimburse a cooperating State for the unemployment compensation paid to a worker who qualified under State law to receive such compensation. Previously, if the Federal Government determined that such a worker was unemployed due to trade concessions, it would reimburse the State the amounts paid out to such a worker for unemployment compensation. Subsection (b) provides for appropriate fiscal safeguards for funds not spent. Subsection (c) stipulates that agreements made under this subchapter may include requirements that any State employee certifying or disbursing funds under this agreement be bonded.

SECTION 240. LIABILITIES OF CERTIFYING AND DISBURSING OFFICERS

Subsection (a), which is identical to section 333 of the Trade Expansion Act, relieves a designated certifying officer, in the absence of gross negligence or intent to defraud the United States, from liability with respect to the payment of any payment certified by him under this chapter.

Subsection (b) provides similar relief from liability for a disbursing officer with respect to any payment by him under this chapter if it was based upon a voucher signed by a designated certifying officer.

SECTION 241. RECOVERY OF OVERPAYMENT

This section is identical in substance to section 334 of the Trade Expansion Act.

It provides that if a person has been found to have received any payment to which he was not entitled, as a result of false statements, such person shall be liable to repay such amount to the State agency or to the Secretary. Such recovery may also be made by deducting the amount to which the person was not entitled from any sum payable to him under this chapter.