1 Trade and Globalization Adjustment Assistance Act Comparison of Trade Act of 2002 and the Trade Act of 2009

2 What is the Trade Adjustment Assistance (TAA) Program? The TAA program is federally funded and provides training and reemployment services to trade-affected workers who have lost their jobs as a result of foreign competition.

3 Purpose of TAA Program The TAA program is designed to provide workers the means to attain competitive and marketable skills for today’s work environment.

4 Historic Background The Trade Act of 1974 provided trade adjustment assistance for dislocated workers affected by the North America Free Trade Agreement (NAFTA) with Mexico and Canada. There have been numerous amendments since the original enactment. The Trade Act of 2002 repealed NAFTA/TAA, expanded eligibility to workers affected by trade from additional countries, and provided for additional benefits to trade-affected workers. The Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, effective May 18, 2009, expands coverage to workers in the service sector and public agencies which may be affected by foreign competition from any country. It also provides additional benefits for workers.

5 TAA Governing Law & Regulations Trade Act of 1974, as amended Code of Federal Regulations – 20 CFR 617 Operating Instructions for Implementation of the Trade Act of 1974 Enacted by the Trade and Globalization Adjustment Assistance Act of 2009 (Training and Employment Guidance Letter (TEGL) No )

6 Group Eligibility Old Trade Program The worker’s firm must produce an article Shifts in production had to be to a country that had specified trade agreements with the US New Trade Program Expands TAA coverage to service sector workers Expands eligibility to workers in public agencies Shifts in production or shifts of service to any country Expands TAA eligibility to all shifts in production or shifts of service, without the need to prove increased imports

7 Group Eligibility (cont’d) Old Trade Program Workers at downstream producers that are secondarily affected by increased imports or a shift in production to Canada or Mexico New Trade Program Expands definition of downstream producers, and applies it to all countries

8 USDOL Determinations Old Trade Program 40 days to conduct an investigation, issue a determination and publish a notice in the Federal Register Impact date retroactive to one year from petition filing date if separated from employment within one year of petition date New Trade Program 40 days to conduct an investigation, issue and publish determinations in the Federal Register, as well as the United States Department of Labor (USDOL) website

9 USDOL Determinations (cont’d) Old Trade Program New Trade Program Requires the USDOL to establish standards and data requirements for investigation of petitions and criteria for making determinations In verifying the information for a determination, the USDOL is required to use a subpoena if the information is not provided within 20 days of request unless the firm or its customer demonstrates that it will provide information in a reasonable period of time

10 USDOL Determinations (cont’d) Old Trade Program A specific request for Alternative Trade Adjustment Assistance (ATAA) for Older Workers was required to be included in the Petition in order for workers to be eligible to apply for ATAA benefits New Trade Program The new Reemployment Trade Adjustment Assistance (RTAA) replaces ATAA. No separate request for RTAA is required by petitioners; all workers age 50 or older covered under any certification may apply for individual eligibility for RTAA

11 Information to Workers Old Trade Program Upon receipt of a certification from the USDOL, States, as agents of USDOL, issue newspaper notices and letters to potential participants based on lists of adversely affected workers provided to the state by employers or other sources such as unions New Trade Program No change Adds new provision for USDOL to notify US Department of Commerce of each firm certified (increasing awareness of TAA for firms)

12 Trade Readjustment Allowances (TRA) Qualifying Requirements Old Trade Program Worker must be enrolled in training or receive a waiver of the training requirement within 8 weeks of certification or 16 weeks of layoff date (8/16 week deadline) Provides 45 days more if extenuating circumstances exist 60 days waiting period after filing petition to receive TRA New Trade Program Worker must be enrolled in training or placed on waiver of the training requirement within 26 weeks of certification or layoff 45-day period remains unchanged Provides for additional redress if worker misses application and enrollment deadlines due to not receiving notification Removes 60 day waiting period after certification limit on receipt of TRA

13 Trade Readjustment Allowances Qualifying Requirements (cont’d) Old Trade Program Waivers of the enrolled in training requirement may be issued under six conditions for up to six months Must be reviewed and reauthorized every 30 days Training requirement may be waived only after an assessment is completed New Trade Program No change Waiver reviewed three months after issuance, then monthly This requirement is still in effect Marketable skills waivers may include post-graduate degrees Retirement waivers do not require review

14 Trade Readjustment Allowances Qualifying Requirements (cont’d) Old Trade Program Failure to begin, or cease training without justifiable cause, will stop TRA benefits until training resumes Employed 26 of previous 52 weeks with $30 earnings per week (with the trade-affected company) Must exhaust Unemployment Insurance (UI) benefits (including extended benefits) No deadline for training enrollment if not eligible to receive TRA New Trade Program No change

15 Trade Readjustment Allowances Weekly Amounts Old Trade Program All TRA is equal to workers UI Weekly Benefit Amount (WBA) If a trade-affected worker gets a new job and is subsequently laid off, his/her UI benefits may be lower than the original TRA WBA. New Trade Program Workers in full-time training: Part- time wages up to the WBA shall not be counted as earnings for purposes of deductible income Allows workers to choose between receiving TRA or UI if the filing of a subsequent UI claim could result in a lower weekly benefit amount

16 Trade Readjustment Allowances Limitations Old Trade Program TRA provides income support beyond UI Basic TRA equals 52 weeks minus any weeks of UI received and must be used within 104 weeks after Qualifying Separation or foregone. Application for training must be made within 210 days to qualify for additional TRA New Trade Program No change Strikes the 210 day rule for bona-fide application for training and receipt of additional TRA

17 Trade Readjustment Allowances Limitations (cont’d) Old Trade Program Provides 52 weeks of additional TRA benefits if participating in training with no breaks greater than 30 consecutive days. Additional TRA must be used within 52 consecutive weeks. New Trade Program Provides 78 weeks of additional TRA benefits to allow longer term training Provides a 91-week period in which the worker may collect up to 78 weeks of TRA, allowing for up to 13 weeks in training breaks (summer or employment) during which the worker is not eligible to receive TRA

18 Trade Readjustment Allowances Limitations (cont’d) Old Trade Program An additional period up to 26 weeks of TRA is also available to workers participating in remedial education New Trade Program The 26-week additional period may also be used for prerequisite courses Provides protection for workers covered under certifications delayed by judicial and administrative appeals Adjusts period of eligibility for workers called up for active military duty if service lasts at least 30 days (restarts enrollment process)

19 Application of State Laws Old Trade Program State law may not be used to waive deadlines New Trade Program Time limitations for application for TRA or training enrollment, or late filing of claims may be waived if state UI law, regulation, policy, or practice provides a good cause waiver, e.g., agency error or claimant was not at fault (if consistent with State UI laws).

20 Service Delivery System and WIA Wrap Around Services Old Trade Program States choose which agency to designate as responsible for TAA program Enrollment of trade affected workers in WIA is voluntary New Trade Program No change

21 Service Delivery System and WIA Wrap Around Services (cont’d) Old Trade Program States cannot use TAA funds for wrap around services provided by other programs, i.e., career counseling, assessment and job placement services New Trade Program Creates an additional entitlement to case management and employment services to include Comprehensive Assessments, Individual Employment Plans, information on available training, information on financial aid, prevocational services, career counseling, labor market information, and availability of supportive services. These are payable with TAA funds.

22 Service Delivery System and WIA Wrap Around Services (cont’d) Old Trade Program States receive an additional 15% of training funds for program administration. New Trade Program States receive an additional 15% of training funds. At least 1/3 of these funds must be used for case management. No more than 2/3 of these funds may be used for administration. An additional $350,000 annually per state is provided for employment and case management which cannot be used for administration or MIS improvements.

23 Service Delivery System and WIA Wrap Around Services (cont’d) Old Trade Program New Trade Program Section 239 Agreement with States requires USDOL to establish procedures to ensure uniform application by the States and includes new monitoring and data requirements

24 Funding Old Trade Program $220 million annually 75% allocated at beginning of year 25% in reserve for high participant activity New Trade Program Increases cap to $575 million Requires 35% of training funds held in reserve, but 90% of all funds must be distributed by July 15

25 Funding (cont’d) Old Trade Program 85% Hold Harmless New Trade Program Provides specific factors to take into consideration in creating new funding formula including 25% hold harmless and more current activity projections: Number of workers certified in most recent 4 quarters Number of workers in training in most recent 4 quarters Number of workers estimated in training during the fiscal year Estimate of training funds needed for fiscal year Other factors

26 Funding (cont’d) Old Trade Program New Trade Program Requires USDOL to enact regulations to carry out the funding formula provisions within one year of enactment (February 17, 2010)

27 Training Programs Old Trade Program Workers are “entitled” to the full cost of training No part-time or incumbent worker training New Trade Program This requirement is made more explicit in the 2009 Amendment Allows for Incumbent Worker training without UI or TRA Allows for part-time training without TRA

28 Training Programs (cont’d) Old Trade Program By regulation, training is available for up to two years, with an additional 6 months available for workers who require remedial education New Trade Program Training may be approved that exceeds the availability of TRA if worker can demonstrate having adequate financial resources and having the means to pay for the cost of training (beyond 156 weeks) Training may not be limited by WIA approvable training Allows TAA training for incumbent workers except for On-the-Job (OJT) and customized training, in adversely affected employment

29 Training Programs (cont’d) Old Trade Program New Trade Program Allows TAA training to include registered apprenticeship programs Obtain or complete a degree or certification program Workers who take temporary work during a break in training may not be determined ineligible for UI/TRA and may elect to receive TRA instead of the new UI benefits

30 Training Programs (cont’d) Old Trade Program New Trade Program Creates new standards for OJT: Expectation of suitable employment with employer Compatible with workers’ skills A curriculum that creates proficiency in the worker Benchmarks indicating attainment of knowledge and skills Shall not exceed 104 weeks

31 Training Programs (cont’d) Old Trade Program New Trade Program Workers who leave OJT within 30 days of starting, if training did not meet all requirements, may not be determined ineligible for UI/TRA and may elect to receive TRA instead of any new UI entitlement Prerequisites are considered similar to remedial training (up to 26 weeks total)

32 Job Search Allowances Old Trade Program The program will reimburse 90% of the total expenses capped at $1,250 per participant to help workers search for employment outside their local commuting area New Trade Program Increases the percentage of job search expenses that may be paid on behalf of a qualified participant to 100% of the total expenses capped at $1,500 Strikes restriction on people who got a waiver allowing application up to 182 days after training completion

33 Relocation Allowances Old Trade Program The program will cover 90% of expenses to help cover the costs of moving for workers who obtain new employment in another area Lump-sum payment up to $1,250 New Trade Program Increases the percentage of relocation expenses that may be paid on behalf of a qualified participant to 100% of the total expenses Lump-sum payment up to $1,500 Strikes restriction on people who got a waiver allowing application up to 182 days after training completion

34 Collection and Publication of Data Old Trade Program New Trade Program Requires the USDOL to report on: Number of petitions, certifications, and denials, and the basis for the certifications Data on training by major types of training Data on outcomes Data on Rapid Response activities Requires an annual report to Congress as well as posting on USDOL website Requires USDOL to implement a system to collect data on adversely affected workers employed in the service sector within 90 days of enactment

35 Agreement and Data Collection Old Trade Program New Trade Program States are required to collect, validate, and report new data elements to USDOL Satisfactory immigration status must be verified for an individual who is not a citizen or national (and re-verified if immigration documents expire while worker is receiving benefits) through the Systematic Alien Verification for Entitlement (SAVE) program

36 Agreement and Data Collection Old Trade Program New Trade Program Cooperating agreements have additional clauses: Outreach and orientation must be performed States must include monitoring, oversight and control measures to improve accuracy and timeliness of data which must be reported quarterly Employment and case management services must be provided, including the use of other federal programs as needed

37 Overpayment Old Trade Program If a claimant receives an overpayment, repayment may be waived if the overpayment occurred without fault and the repayment “would go against equity and good conscience” New Trade Program In case of an overpayment, repayment shall be waived if the overpayment occurred without fault and repayment would cause financial hardship for the individual or the household

38 ATAA versus RTAA Old Trade Program Available to certified group of workers that obtain reemployment not more than 26 weeks after the date of separation, are at least 50, and earn not more than $50,000 a year in a different full-time job Available only if ATAA was specifically approved as part of the certification New Trade Program RTAA replaces ATAA Strikes the requirement that a worker finds employment within 26 weeks of being laid-off Increases the limit on wages in eligible reemployment to $55,000 a year Eliminates the requirement for a group certification

39 ATAA versus RTAA (cont’d) Old Trade Program Wage supplement of up to $10,000 over two years is available only to workers age 50 and over Full-time workers eligible for ATAA The wage subsidy is equal to 50% of the difference between reemployment wages and wages from employment prior to trade- affected layoff New Trade Program Increases the wage supplement to up to $12,000 over two years Allows a worker to qualify for RTAA when working part-time, if employed at least 20 hours a week and participating in approved full-time training The percentage of wage subsidy is variable based on weekly hours of employment before (trade-affected employment) and after (reemployment) but no more than 50% of the difference

40 ATAA versus RTAA (cont’d) Old Trade Program New Trade Program Allows RTAA participants to receive TAA-funded training, employment and case management services Allows recipients to go from TRA to RTAA, but may not receive concurrently

41 ATAA versus RTAA (cont’d) Old Trade Program New Trade Program Two Year (104 week) Benefit Period: An individual who has not received TRA, two years from UI exhaustion based on trade employer separation or two years from date when qualifying reemployment is obtained An individual who received TRA may receive RTAA for up to 104 weeks from date of reemployment. The time period for receipt of RTAA is reduced by number of weeks of TRA RTAA no longer a Pilot - It is part of TAA and is due to expire with TAA on December 31, 2010

42 Program Administration Old Trade Program New Trade Program Creates an Office of TAA directly under Division of Administrative Services (DAS) rather than Office of National Response (ONR) at USDOL Requires USDOL to designate an officer to receive, resolve complaints and requests for assistance New accountability and transparency provisions

43 Health Coverage Tax Credit (HCTC) Old Trade Program Available to workers who are receiving TRA or would be eligible to receive TRA if they had exhausted their UI or workers receiving an ATAA wage supplement HCTC pays 65% of health coverage premium for eligible workers who have qualified coverage New Trade Program New HCTC benefits are made available retroactively (effective March 1, 2009) to eligible TRA and ATAA recipients. RTAA beneficiaries are also eligible for HCTC. (Effective May 18, 2009) Effective May 1, 2009, HCTC pays 80% of health coverage premium

44 Health Coverage Tax Credit (cont’d) Old Trade Program New Trade Program Scheduled breaks in training may not impact HCTC eligibility Non-Trade workers who are involuntarily terminated get 65% support for COBRA payments for 9 months if same year income is less than $125,000 for an individual or $250,000 for a family (no “UI” requirement in language)

45 TAA Related Websites United States Department of Labor – Employment & Training Administration - (Guidance for the 2009 Amendment can be found in TEGL No ) TEGL No Florida Department of Economic Opportunity - Internal Revenue Service – HCTC Site Florida Apprenticeship Program

46 Contact Information Trade Program Unit