[Federal Register Volume 69, Number 197 (Wednesday, October 13, 2004)]
[Notices]
[Pages 60904-60909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2595]


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DEPARTMENT OF LABOR

Employment and Training Administration


Alternative Trade Adjustment Assistance Program: Training and 
Employment Guidance Letter Interpreting Federal Law

    The Employment and Training Administration interprets federal law 
requirements pertaining to Alternative Trade Adjustment Assistance 
(ATAA). These interpretations are issued in Training and Employment 
Guidance Letters (TEGLs) to the state workforce agencies. The TEGL 
described below is published in the Federal Register in order to inform 
the public.
    TEGL 2-03 TEGL 2-03 advises states of the federal law requirements 
applicable to implementing the Alternative Trade Adjustment Assistance 
(ATAA) program enacted by the TAA Reform Act of 2002.
    The operating instructions in TEGL 2-03 are issued to the states 
and the cooperating state workforce agencies (SWAs) as guidance 
provided by the Department of Labor (DOL) in its role as the principal 
in the ATAA program. As agents of the Secretary of Labor, the states 
and cooperating SWAs may not vary from the operating instructions in 
TEGL 2-03 without prior approval from DOL.
    Pending the issuance of regulations implementing the provisions of 
the TAA Reform Act of 2002, the operating instructions in TEGL 2-03 
constitute the controlling guidance for the states and the cooperating 
SWAs in implementing and administering the ATAA program, pursuant to 
the agreements between the states and the Secretary of Labor under 
Section 239 of the Trade Act of 1974, as amended.

    Dated: October 6, 2004.
Emily Stover DeRocco,
Assistant Secretary for Employment and Training.
Employment and Training Administration
Advisory System
U.S. Department of Labor
Washington, DC 20210

Classification TAA

Employment and Training Administration
Advisory System
U.S. Department of Labor
Washington, DC 20210
Classification
TAA

Correspondence Symbol ONR

Date: August 6, 2003

Training and Employment Guidance Letter No. 2-03

To: All State Workforce Agencies; All State Workforce Liaisons /s/
From: Emily Stover DeRocco, Assistant Secretary
Subject: Interim Operating Instructions for Implementing the 
Alternative Trade Adjustment Assistance (ATAA) for Older Workers 
Program Established by the Trade Adjustment Assistance Reform Act of 
2002

    1. Purpose. To transmit interim operating instructions for 
implementing the Alternative Trade Adjustment Assistance (ATAA) for 
Older Workers Program established by the Trade Adjustment Assistance 
Reform Act of 2002.
    2. References. The Trade Act of 1974 (Pub. L. 93-619, as amended), 
the Trade Act of 2002 (Pub. L. 107-210); the Workforce Investment Act 
of 1998; 20 CFR part 617; 29 CFR part 90; TEGL No. 11-02; UIPL No. 24-
03. The amendments to the Trade Adjustment Assistance (``TAA'') program 
may also be referred to as the Trade Adjustment Assistance Reform Act 
of 2002 (``the Act'' or ``the Trade Act''). These amendments were 
included in Title I of the Trade Act of 2002.
    3. Background. The Act establishes ATAA as an alternative 
assistance program for older workers certified eligible to apply for 
Trade Adjustment Assistance. This program is effective for petitions 
filed on or after August 6, 2003. The Act requires that petitioners who 
request that workers be certified for the ATAA program must do so at 
the time the petition is filed. ATAA is designed to allow TAA eligible 
workers for whom retraining may not be appropriate and who find 
reemployment to receive a wage subsidy to help bridge the salary gap 
between

[[Page 60905]]

their old and new employment. To receive the ATAA benefits, workers 
must be TAA and ATAA certified.
    Under the ATAA program, workers in an eligible worker group who are 
at least 50 years of age and who obtain different, full-time employment 
within 26 weeks of separation from adversely-affected employment at 
wages less than those earned in the adversely-affected employment, may 
receive up to half of the difference between the worker's old wage and 
the new wage. The wage subsidy may be paid up to a maximum of $10,000 
during a two-year eligibility period. To be eligible for the ATAA 
program, workers may not earn more than $50,000 per year in the new 
employment. In addition, the worker group must be certified as eligible 
to apply for TAA benefits and meet other ATAA eligibility criteria 
listed below. Workers who begin receiving payments under the ATAA 
program cannot receive other TAA benefits and services except for 
relocation allowances and the Health Coverage Tax Credit (HCTC).
    4. Guiding Principle for ATAA Implementation. It is essential that 
the Department of Labor (``DOL''), State Workforce Agencies (``SWA''), 
local One-Stop Career Center partners and other mission critical 
partners work together to move trade-affected workers into new jobs as 
quickly and effectively as possible. To this end, the primary focus of 
ATAA reemployment benefits and services will be toward rapid, suitable 
and long-term employment for adversely affected older workers served by 
the program.
    5. Operating Instructions. The operating instructions are being 
issued by DOL as the administrator of the TAA program. As agents of the 
Secretary of Labor, the states and cooperating state agencies may not 
vary from the operating instructions in this document without prior 
approval from DOL.
    Pending the issuance of regulations implementing the provisions of 
the Act, these operating instructions constitute the controlling 
guidance to the states and the cooperating state agencies for 
implementing and administering the ATAA program, under the agreements 
between the states and the Secretary of Labor under Section 239 of the 
Act.
    For purposes of these operating instructions, the following 
definitions will apply:
    1. The ``Act'' or the ``Trade Act'' means the Trade Act of 1974, 
including the 2002 Amendments set forth in P.L. 107-210.
    2. ``DOL'' means the U.S. Department of Labor.
    3. ``ETA'' means the Employment and Training Administration.
    4. ``Secretary'' means the Secretary of Labor.
    5. ``TAA'' means the Trade Adjustment Assistance program for 
workers.
    6. ``TRA'' means Trade Readjustment Allowances.
    7. ``ATAA'' means Alternative Trade Adjustment Assistance program.
    8. ``HCTC'' means Health Coverage Tax Credit.
    9. ``WIA'' means the Workforce Investment Act of 1998.
    10. ``SWA'' means State Workforce Agency.
    11. ``DTAA'' means the Division of Trade Adjustment Assistance.

A. Petitioning Process

    Workers who seek the benefits and services available under the ATAA 
program must file a regular TAA petition which includes a request that 
the worker group be considered for eligibility to apply for the ATAA 
program. Section 246(a)(3)(A)(i) of the Trade Act states, ``The 
Secretary shall provide the opportunity for a group of workers on whose 
behalf a petition is filed under section [221] to request that the 
group of workers be certified for the alternative trade adjustment 
assistance program under this section at the time the petition is 
filed.'' Petition forms that are currently available do not provide for 
such a request. Until revised petition forms are approved by the Office 
of Management and Budget (OMB) and become available for use, we have 
developed a supplemental form (attachment A) which may be used in the 
interim by petitioners seeking certification to apply for the ATAA 
program. This supplement may be provided by the states or may be 
accessed online at http://www.doleta.gov/tradeact/petitions.cfm. 
Petitioners are not required to use the supplemental form. However, the 
information requested on the supplemental form must be provided in 
order for a petitioner to be considered for eligibility under the ATAA 
program. Failure to submit the supplementary information with the 
petition means that DOL will not consider the worker group for 
certification under the ATAA program. A Federal Register Notice was 
published on July 7, 2003, seeking comments on the new form for the TAA 
program. Until the new form is approved, the process established for 
interim use will remain in effect.
    In all other respects, the petition for TAA, together with the 
supplemental form for the ATAA program, must meet all of the 
requirements for all TAA petitions. These requirements are set forth in 
regulations at 29 CFR part 90. Additional requirements are set forth in 
Training and Employment Guidance Letter (TEGL) No. 11-02, ``Operating 
Instructions for Implementing the Amendments to the Trade Act of 1974 
Enacted by the Trade Act of 2002,'' issued on October 10, 2002, and 
published in the Federal Register on November 14, 2002 (67 FR 69029).

B. Investigation Process

    In order to establish that petitioning workers are eligible to 
apply for the ATAA program, DOL must first determine that all of the 
criteria for a regular TAA certification, as described in TEGL 11-02, 
are met. In addition, DOL must find that three additional criteria are 
met for ATAA certification. These additional criteria are:
    1. A significant number of adversely affected workers in the 
petitioning workers' firm are 50 years of age or older;
    2. The adversely affected workers in the petitioning workers' firm 
possess job skills that are not easily transferable to other 
employment; and
    3. The competitive conditions within the affected workers' industry 
are adverse.
    Obtaining data and other information necessary to determine that 
all three of these criteria are satisfied will be part of the normal 
petition investigation process conducted by the Division of Trade 
Adjustment Assistance (DTAA). Workers may transmit data with their 
petition for any or all of these criteria, which will be considered by 
DTAA in making its determination.
    For criterion 1, information will be obtained by telephone 
communication with the appropriate company official from the subject 
firm as part of DTAA's investigation. For this purpose, the term 
``significant number'' means five percent of the adversely affected 
workforce or 50 workers, whichever is less, or at least three workers 
in a firm with less than 50 adversely affected workers.
    For criterion 2, the necessary information will also be obtained 
through telephone communication with the appropriate company official 
at the subject firm. Specifically, the company official will be asked 
to confirm that the worker group for whom a petition has been filed 
possesses job skills that are not easily transferable to other 
employment, with a focus on what skills the worker possesses. Should 
the company official be unable to provide information as to whether the 
skills are easily transferable, the state (e.g., Rapid Response or 
other appropriate unit) will be asked to furnish the assessment.

[[Page 60906]]

    For criterion 3, information will be collected from government and 
industry association sources as part of DTAA's investigation process. 
Specifically, the information collected will be used to determine if: 
(a) The number of firms in the industry is declining; or (b) the 
conditions (such as declining production and/or employment) in the 
industry are such that the affected workers are not likely to find new 
employment within the industry; or (c) aggregate U.S. imports of 
products like or directly competitive with those produced in the 
industry are increasing.

C. Determination Process

    Whenever petitioners seek a determination of eligibility to apply 
for the ATAA program, the determination document issued at the 
conclusion of the investigation will clearly state whether or not the 
petitioning workers are eligible to apply for the ATAA program. This 
statement shall appear directly after the statement of eligibility to 
apply for regular TAA. Determinations of eligibility to apply for the 
ATAA program and for regular TAA, reached under the same petition, will 
be issued together in the same determination document. Determinations 
of eligibility to apply for regular TAA and for the ATAA program, 
issued under the same petition, will apply to the same identifiable 
worker group.
    Certifications issued based upon TAA petitions filed before August 
6, 2003, can only be for eligibility to apply for regular TAA. No 
active certification of eligibility to apply for regular TAA will be 
amended to include certification of eligibility to apply for the ATAA 
program. However, if DTAA has not yet issued a determination of 
eligibility for TAA, the petitioner may withdraw the TAA petition and 
submit a new petition requesting both TAA and ATAA (which will create a 
new impact date, and, thus, may jeopardize the eligibility of certain 
workers who may have been included in the withdrawn petition). The date 
of issuance is considered the date on the determination document.
    Requests for reconsiderations and/or judicial review of ATAA 
determinations are the same as under the regular petition process for 
TAA.

D. Rapid Response Activities

    The implementation of the ATAA program provides additional 
opportunities for Trade Act coordinators and other local One-Stop 
Career Center partners to work more closely with state and local Rapid 
Response teams to enhance the provision of information and services to 
workers who have been or will be impacted by increased imports or 
shifts in production to other countries. The ATAA program provides an 
opportunity for adversely affected older workers who may not be 
interested in retraining to take full advantage of comprehensive 
reemployment services and assistance available through TAA, WIA and the 
One-Stop system.
    The ATAA program is an integral part of an enhanced menu of 
reemployment services and assistance available to eligible individuals 
through the Act. State and local trade program staff should be working 
closely with Rapid Response teams and other local One-Stop Career 
Center system partners to ensure the dissemination of information 
regarding all aspects of the Trade Act program, including HCTC and 
ATAA, both prior to and following the notification of layoffs, petition 
filings and certifications. It is essential that timely and accurate 
information about the Trade Act program be provided to affected workers 
to facilitate more informed decision-making and to expedite their 
return to employment.
    Rapid Response activities for potentially trade affected workers 
within the local One-Stop Career Center should include:
     Immediate and ongoing dissemination of information on TAA, 
HCTC, and ATAA, including early intervention measures prior to and 
following notices of layoff.
     Distribution of available TAA, HCTC, and ATAA posters, 
brochures, Web sites, fact sheets, desk aids, videos, and public 
service announcements.
     Presentations regarding TAA, HCTC, and ATAA to Chambers of 
Commerce and other employer organizations, organized labor, economic 
development agencies, state and local elected officials, community-
based organizations, and faith-based organizations.
     Upon request, provision of information to DTAA 
investigators with respect to the transferability of worker job skills 
to other employment for determination of ATAA group eligibility.

E. Eligibility Requirements

    After the issuance of a certification of eligibility to apply for 
TAA and ATAA and when the adversely affected worker is fully informed 
of the benefits and services available under the TAA and ATAA programs, 
the worker will need to consider the choice of benefits and services 
under one program or the other. If the worker's preferred option is the 
ATAA program, the worker should be encouraged to take advantage of 
reemployment services and assistance available to him/her with the goal 
of returning to work within 26 weeks of their qualifying separation in 
order to be eligible for ATAA. In making this choice, workers should 
avail themselves of assistance from local Trade Act coordinators and 
WIA employment managers.
    While an adversely affected worker is seeking employment to qualify 
for the ATAA program, actions must be taken to ensure regular TAA 
deadlines are met and options are preserved. Section 231 of the Act 
imposed a deadline by which a worker must be enrolled in approved 
training, or have a waiver of this requirement, in order to be eligible 
for TRA. This deadline is either 8 weeks after the issuance of the 
relevant certification of eligibility to apply for TAA benefits or 
services or 16 weeks after the worker's most recent qualifying 
separation, whichever is later (commonly referred to as the 8/16 
deadline). This 8/16 deadline applies to eligibility for all TRA, both 
basic and additional.
    The state should assess whether a worker is entitled to a training 
waiver, prior to the 8/16 week deadline for applying for training, 
based on one of the waiver criteria described below, as appropriate, 
which preserves the worker's TRA eligibility if a job is not obtained 
within 26 weeks of the worker's qualifying separation. The waiver 
criteria are:
    1. Recall.--The worker has been notified that the he/she will be 
recalled by the firm from which the separation occurred.
    2. Marketable Skills.--The worker possesses marketable skills for 
suitable employment (as determined pursuant to an assessment of the 
worker, which may include the profiling system under section 303(j) of 
the Social Security Act (42 U.S.C. 503(j)), carried out in accordance 
with guidelines issued by the Secretary) and there is a reasonable 
expectation of employment at equivalent wages in the foreseeable 
future.
    3. Retirement.--The worker is within 2 years of meeting all 
requirements for entitlement to either--
    a. Old-age insurance benefits under title II of the Social Security 
Act (42 U.S.C. 401 et. seq.) (except for application therefore); or
    b. A private pension sponsored by an employer or labor 
organization.
    4. Health.--The worker is unable to participate in training due to 
the health of the worker, except that a waiver under this subparagraph 
shall not be construed to exempt a worker from requirements relating to 
the availability

[[Page 60907]]

for work, active search for work, or refusal to accept work under 
Federal or State unemployment compensation laws.
    5. Enrollment Unavailable.--The first available enrollment date for 
the approved training of the worker is within 60 days after the date of 
the determination made under this paragraph, or, if later, there are 
extenuating circumstances for the delay in enrollment, as determined 
pursuant to guidelines issued by the Secretary.
    6. Training Not Available.--Training approved by the Secretary is 
not reasonably available to the worker from either governmental 
agencies or private sources (which may include area vocational 
education schools, as defined in section 3 of the Carl D. Perkins 
Vocational and Technical Education Act of 1998 (20 U.S.C. 2302), and 
employers), no training that is suitable for the worker is available at 
reasonable cost, or no training funds are available.
    All workers should be informed that, if they anticipate not being 
able to obtain a job within 26 weeks of their qualifying separation, 
they should contact their local One-Stop Career Center immediately, and 
consider seeking the TAA benefits, including training to which they are 
entitled. While ATAA participants are eligible for HCTC, they are only 
eligible once they are participating in the ATAA program and receiving 
a benefit under the program. Thus, if workers considering ATAA have not 
become reemployed and are in need of HCTC, the Trade Act coordinator 
should assess whether a training waiver might be appropriate under one 
of the enumerated criteria. As with all training waivers, any waivers 
issued should be reviewed every 30 days to determine their continued 
applicability. In cases where the waiver is no longer appropriate, it 
should be revoked.
    To be eligible for ATAA, an individual must meet the following 
conditions at the time of reemployment:
    1. Be at least age 50 at time of reemployment. The individual's age 
can be verified with a driver's license or other appropriate 
documentation.
    2. Obtain reemployment by the last day of the 26th week after the 
worker's qualifying separation from the TAA/ATAA certified employment. 
This reemployment may be verified with a copy of the job offer letter 
or a check stub.
    3. Must not be expected to earn more than $50,000 annually in gross 
wages (excluding overtime pay) from the reemployment. If a paycheck has 
not been issued at the time of application, the employer must submit a 
supporting statement indicating that annual wages will not exceed 
$50,000.
    4. Be reemployed full-time as defined by the state law where the 
worker is employed. The verification will be conducted in the same 
manner as is used for determining UI benefits.
    5. Cannot return to work to the employment from which the worker 
was separated. Thus, the worker cannot return to the same division/
facility that he/she was separated from nor can the worker do the same 
or similar work for the employer that he/she was separated from in 
another division/facility.
    The application for ATAA must be filed within two years of the 
first day of qualifying reemployment. For purposes of this application, 
and in order to establish the ATAA payment, wages at separation are 
defined as the annualized hourly rate at the time of the most recent 
separation, which is set forth in Section G of this TEGL, ``ATAA 
Payments.'' Wages at reemployment are defined as the annualized hourly 
rate at the time of reemployment, which is also set forth in Section G. 
In addition, the worker must indicate that a ``choice'' has been made 
and that she/he understands that she/he cannot subsequently switch to 
the TAA program once she/he begins receiving the ATAA supplement. 
Receipt of the initial ATAA payment represents the individual's 
decision with respect to choosing ATAA and voids the participant's 
rights to retraining, allowances and TRA. Correspondingly, once a 
worker has enrolled in training, he/she forfeits his/her right to ATAA 
participation.
    The State TAA Coordinator will issue a written determination 
informing the ATAA applicant of eligibility for ATAA payments within 5 
working days of receiving the worker's application for such benefits. 
If approved, the State TAA Coordinator will also notify the appropriate 
state payment unit and other appropriate component offices within the 
state. The ATAA applicant has the right to appeal a state determination 
which denies ATAA benefits in the same manner as provided for in state 
law for TRA determinations.
    For purposes of the ATAA program, the eligibility determination 
date, which establishes the two-year period during which ATAA benefits 
can be paid, will be the date of the first qualifying reemployment.

F. Continuing Eligibility

    Once approved for the ATAA program, individuals who continue to 
meet the eligibility criteria are paid ATAA benefits until a total of 
$10,000 in benefits has been received, or a period of two years has 
elapsed since their first qualifying reemployment, whichever occurs 
first. Nothing in the statute precludes an individual from working for 
different employers within this two-year period. Further, employment is 
not required to be consecutive. However, ATAA benefits are not payable 
during periods of unemployment (i.e., one full week without wages). 
Changes in employment that do not encompass a period of unemployment 
will be handled during the state's ongoing review of each worker's ATAA 
status, as described below. In the event of a period of unemployment, 
workers will need to complete a new Individual Application for ATAA 
upon reemployment. The worker would be eligible for the remaining ATAA 
benefits to which he/she is entitled. The two-year eligibility period 
continues to run from the date of first qualifying reemployment.
    In the event a worker has more than one job, the employment must, 
at a minimum, meet the definition of full-time work as defined by state 
law. If additional job(s) are obtained, the wages from this employment 
will be included in the calculation to determine whether the worker is 
expected to reach the $50,000 annual limit for reemployment wages.
    Each certified worker for ATAA will need to visit a state or local 
office in person to provide information and determine initial 
individual eligibility for ATAA. If the individual is determined to be 
eligible for ATAA, the state will need to assess continuing eligibility 
for the ATAA program. The worker will need to provide verification of 
employment and wages that will be used to determine continuing 
eligibility for ATAA benefits on at least a monthly basis. The state 
can choose to have the worker come to the local office and provide 
documentation to the staff, or the state has the option to accept proof 
of continuing eligibility by mail, fax, or some other means to verify 
proof of employment and wages. However, the state may not use telephone 
certification in these instances.
    In either alternative, the state must have documented verification 
of the individual worker's employment and wage status on at least a 
monthly basis. The information provided at the local level will need to 
be forwarded to the State TAA Coordinator for review and approval. Once 
the TAA Coordinator approves the information, the state payment unit, 
local office, and worker will be notified and the worker will receive 
equivalent payment for the preceding month on a weekly, biweekly, or 
other basis as determined by the state

[[Page 60908]]

as long as the calculated monthly allotment is not exceeded. The worker 
will receive at least a minimum monthly payment. Because the worker 
will receive the ATAA wage subsidy for the preceding period for which 
she/he has demonstrated eligibility, the worker will not receive 
payment until after the initial month has been verified by the TAA 
Coordinator.
    With respect to HCTC, the SWAs are required to report ATAA 
recipients (workers who are receiving the ATAA wage subsidy) to the 
Internal Revenue Service (IRS) in the manner described in Unemployment 
Insurance Program Letter (UIPL) 24-03, dated April 14, 2003.

G. ATAA Payments

    Section 246(a)(4) of the Trade Act provides that a State shall use 
the funds provided under section 241 to pay for a period not to exceed 
two years to a worker described in Section 246(a)(3)(B), 50 percent of 
the difference between:
    (i) The wages received by the worker from reemployment; and
    (ii) The wages received by the worker at the time of separation.
    Section 246(a)(4) supplements an individual's wages for up to two 
years or $10,000, whichever occurs first, by an amount equal to 50 
percent of the difference between the wages earned from the adversely 
affected employer and the new employment obtained after separation from 
adversely affected employment that is approved for ATAA payments.
    An individual receiving this benefit may receive TAA relocation 
benefits and the HCTC, but is not eligible to receive any other 
benefits, including training, TRA payments, and job search allowances. 
The ATAA supplement shall cease in the event of one of the following:
     The individual's annualized wage, excluding the ATAA wage 
subsidy, is projected to exceed $50,000 a year.
     The individual has received $10,000 in ATAA benefits.
     The worker has reached the end of the two-year eligibility 
period.
    The choice of payment unit for paying the ATAA wage subsidy is a 
state responsibility. However, the organizational placement of this 
payment by the state must meet Governmental Accounting Standards Board 
requirements. It is the responsibility of the SWA when calculating the 
ATAA payment to annualize the recipient's wages on a monthly basis to 
assure that the recipient's annual wages do not exceed $50,000. Annual 
wage calculations will include all jobs in which the worker is employed 
and constitute at least full-time employment as defined by the state. 
This may include any combination of full- and part-time work that meets 
or exceeds full-time employment.
    Annualized wages at separation are defined as the annualized hourly 
rate at the time of the most recent qualifying separation. The 
annualized wages are computed by multiplying the worker's hourly rate 
received during the last full week of his/her employment by the number 
of hours the individual worked during the last full week of employment 
and multiplying that number by 52. Overtime wages and hours are 
excluded from the calculation. Annualized wages at reemployment are 
defined similarly to annualized wages at separation, except that the 
hourly rate and hours worked must reflect those of the first full week 
of reemployment.
    The calculated monthly allotment will be derived as follows:

Wage Calculation Methodology

    Annualized Separation Wages minus Annualized Reemployment Wages 
divided by 2 equals 50% of the difference between the two periods of 
wages.
    50% of the difference between the two periods of wages divided by 
12 equals the monthly ATAA wage subsidy.
    If, as a result of the monthly verification exercise, the 
participant's hourly wage and/or hours are determined to have changed 
in such a way as to affect the ATAA wage subsidy, the state will repeat 
the above calculation and adjust the ATAA payment accordingly.
    The ATAA wage subsidy will be paid on a weekly, biweekly, or other 
payment frequency not to exceed monthly, as established by the state, 
ensuring that the total payment does not exceed the $10,000 maximum 
over a two-year period.
    SWAs will follow the current interstate arrangement for the regular 
UI program regarding the agent/liable state relationship for the filing 
of ATAA claims.

H. Overpayments

    The determination of ``annualized wages'' is made prospectively. An 
individual is deemed to have met the ``earns not more than $50,000 a 
year in wages from reemployment'' requirement set forth in section 246 
for a given month if the monthly determination of annualized wages is 
accurate and complete at the time it is made. No overpayment 
determinations need be made for that month based on projections for the 
yearly annual wage that later changed based on information that was not 
available at the time that the monthly determination was made. Monthly 
payments derived from the annualized wage projection based on complete 
and accurate information at the time will be considered valid payments 
that the individual was entitled to, and are not considered 
overpayments.
    In instances where there are overpayments, due to error or fraud, 
for example, the state should adhere to the overpayment provisions of 
the Trade Act regulations at 20 CFR 617.55.

I. Documentation of Benefit History

    It is suggested that the state maintain a manual or automated 
benefit history for the ATAA recipient for a period of no less than 
three years for audit purposes. It is suggested that the benefit 
history include the following:
     Claimant name.
     Social Security Number.
     Certified TAA Petition Number.
     Reemployment hourly wages and hours worked per week.
     Weekly Reemployment Earnings (or biweekly or other 
employer payment schedule).
     Address changes including phone numbers.
     Status of full time work each week.
     Date of birth.
     Separation hourly wages and hours worked per week.
     Separation wages with the Adversely Affected Employer.
     Projected wage with the new employer.
     Weekly benefit amounts.
     Cumulative payments made under the ATAA Program.
     Individuals remaining balance under the $10,000 maximum 
amount time remaining under the two-year eligibility period.

J. Funding

    ATAA benefits for FY 2003 will be paid from the FY 2003 Federal 
Unemployment Benefit Account (FUBA) from which TRA benefits are paid.
    ATAA administrative costs, relating to payment of ATAA benefits, 
are paid from funds appropriated for TAA administration under the State 
Unemployment Insurance and Employment Services Operations (SUIESO) 
account which supports TRA payments. Creating the list of ATAA 
recipients for HCTC eligibility must be funded in the same manner as 
creation of the list of eligible TAA recipients.
    No benefit payments may be made by a state after the date that is 5 
years from

[[Page 60909]]

the date on which the state implements an ATAA program (the 
``termination date'') except for workers who are receiving payments 
under the ATAA program at the time of the termination date. Such 
workers will continue to receive payments throughout the worker's two-
year eligibility period.

K. Reporting Requirements

    In order to monitor and manage the ATAA program for results, a 
quarterly activity report will be required. This report has been 
designed and will be provided to OMB in the near future for review and 
approval. Once approval is obtained, implementation instructions will 
be issued. Our intention is to have the report submitted via a Web-
based interface.
    6. Action Required. States must ensure that the state workforce 
investment system is able to implement the ATAA program and make 
payments to eligible program participants for petitions filed on or 
after August 6, 2003.
    7. Inquiries. States should direct all inquiries to the appropriate 
ETA Regional Office.
    Attachment A: Request for Determination of Eligibility to Apply for 
the Alternative Trade Adjustment Assistance (ATAA) Program for Older 
Workers

Attachment A

OMB APPROVAL NO. 1205-0442
Expiration date: 10/31/2003
REQUEST FOR DETERMINATION OF ELIGIBILITY TO APPLY FOR THE ALTERNATIVE 
TRADE ADJUSTMENT ASSISTANCE (ATAA) PROGRAM FOR OLDER WORKERS
Suggested Supplement to Petition for Trade Adjustment Assistance
    In addition to a determination of eligibility to apply for regular 
TAA, do the petitioners seek a determination of eligibility to apply 
for the Alternative Trade Adjustment Assistance (ATAA) Older Workers 
Program for workers 50 years of age or older? If so, check ``yes'' 
below and attach to the Petition for Trade Adjustment Assistance.
    Yes ----
    If you do not check ``yes'' above, the petitioning worker group 
will not be considered for eligibility certification under the ATAA 
program. If you do check yes, and the worker group is determined to be 
eligible for the ATAA program, the individual workers within the 
certified worker group who meet individual ATAA eligibility criteria 
will have the option of choosing ATAA or TAA benefits and services.
    Criterion that must be met for group certification include:
    1. A significant number of adversely affected workers in the 
petitioning workers' firm are 50 years of age or older;
    2. The adversely affected workers in the petitioning workers' firm 
possess job skills that are not easily transferable to other 
employment; and
    3. The competitive conditions within the adversely affected workers 
industry are adverse.
    Additional criteria that must be met for individual eligibility 
include:
    1. A worker must be at least 50 years of age
    2. The worker must obtain different, full-time reemployment within 
26 weeks of separation from adversely affected employment
    3. Reemployment wages on an average annual basis must be less than 
wages earned in the adversely affected employment
    4. The worker may not earn more than $50,000 per year in new 
employment
    5. The worker must be certified as eligible to apply for TAA 
benefits
    These reporting requirements are approved under the Paperwork 
Reduction Act of 1995, OMB Control No. 1205-0442, expiring 10/31/2003. 
Persons are not required to respond to this collection of information 
unless it displays a currently valid OMB number. Public reporting 
burden for this collection of information is estimated to average 60 
seconds per response, including the time for reviewing instructions, 
searching existing data sources, gathering and reviewing the collection 
of information. Respondent's obligation to reply is required to obtain 
or retain benefits. (Section 246 of the Trade Act of 1974, as amended 
by the Trade Act of 2002). Send comments regarding this burden estimate 
or any other aspect of this collection, including suggestions for 
reducing this burden, send them to the U.S. Department of Labor, 
Division of Trade Adjustment Assistance, Room c-5311, 200 Constitution 
Ave., NW, Washington, D.C. 20210 (Paperwork Reduction Project 1205-
0442).

 [FR Doc. E4-2595 Filed 10-12-04; 8:45 am]
BILLING CODE 4510-30-P