[Federal Register Volume 84, Number 216 (Thursday, November 7, 2019)]
[Proposed Rules]
[Pages 60150-60275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20788]



[[Page 60149]]

Vol. 84

Thursday,

No. 216

November 7, 2019

Part II





Department of Labor





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29 CFR Part 90





Employment and Training Administration





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20 CFR Parts 617 and 618





Trade Adjustment Assistance for Workers; Proposed Rule

  Federal Register / Vol. 84 , No. 216 / Thursday, November 7, 2019 / 
Proposed Rules  

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DEPARTMENT OF LABOR

29 CFR Part 90

Employment and Training Administration

20 CFR Parts 617 and 618

[Docket No. ETA-2019-0009]
RIN 1205-AB78


Trade Adjustment Assistance for Workers

AGENCY: Employment and Training Administration, Labor.

ACTION: Proposed rule.

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SUMMARY: The Employment and Training Administration (ETA) of the 
Department of Labor (Department) proposes to expand protection and 
support for U.S. workers adversely impacted by foreign trade by 
revising its Trade Adjustment Assistance (TAA) for Workers program (TAA 
Program) regulations. The proposed rule (NPRM) would, among other 
improvements, make it easier for workers to qualify for job search and 
relocation allowances, increase those allowances in line with statute, 
expand training to include more flexibility for apprenticeships, ensure 
workers have access to individualized assessments, make it easier for 
groups of workers to apply for benefits, and offer assistance to 
additional categories of workers, including by helping workers in jobs 
threatened by foreign trade to receive training and support to 
transition to new employment.

DATES: Send comments on or before December 9, 2019. Comments on the 
information collection determination described in Section V. D of the 
preamble (Paperwork Reduction Act) may be submitted (postmarked, sent, 
or received) by January 6, 2020 in Docket Number ETA-2019-0010.

ADDRESSES: You may send comments, identified by Docket No. ETA-2019-
0009 and Regulatory Identification Number (RIN) 1205-AB78, by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Instructions for how to submit public comments electronically on the 
Federal eRulemaking Portal can be found on the http://www.regulations.gov website under ``Help'' > ``How to use 
Regulations.gov'' > ``Submit a Comment.''
     Mail: Heidi Casta, Deputy Administrator, Office of Policy 
Development and Research, U.S. Department of Labor, Employment and 
Training Administration, 200 Constitution Avenue NW, Room N-5641, 
Washington, DC 20210.
     Hand Delivery/Courier: Heidi Casta, Deputy Administrator, 
Office of Policy Development and Research, U.S. Department of Labor, 
Employment and Training Administration, 200 Constitution Avenue NW, 
Room N-5641, Washington, DC 20210.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking or ``RIN 1205-AB78.''
    Please submit your comments by only one method. Please be advised 
that the Department will post all comments received that relate to this 
NPRM without changes to http://www.regulations.gov, including any 
personal information provided. The http://www.regulations.gov website 
is the Federal e-Rulemaking Portal and all comments posted there are 
available and accessible to the public. Therefore, the Department 
recommends that commenters remove personal information (either about 
themselves or others) such as Social Security numbers, personal 
addresses, telephone numbers, and email addresses included in their 
comments, as such information may become easily available to the public 
via the http://www.regulations.gov website. It is the responsibility of 
the commenter to safeguard personal information.
    Also, please note that due to security concerns, postal mail 
delivery in Washington, DC may be delayed. Therefore, the Department 
encourages the public to submit comments on http://www.regulations.gov.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov (search using RIN 
1205-AB78 or Docket No. ETA-2019-0009). The Department also will make 
all the comments it receives available for public inspection by 
appointment during normal business hours at the Office of Policy 
Development and Research (OPDR), U.S. Department of Labor, Employment 
and Training Administration, 200 Constitution Avenue NW, Room N-5641, 
Washington, DC 20210. If you need assistance to review the comments, 
the Department will provide appropriate aids such as readers or print 
magnifiers. The Department will make copies of this NPRM available, 
upon request, in large print and electronic file. To schedule an 
appointment to review the comments or obtain the NPRM in an alternative 
format or both, contact OPDR at (202) 693-3700 (this is not a toll-free 
number). You may also contact this office at the address listed above.
    Comments under the Paperwork Reduction Act (PRA): Send a copy of 
any comments that concern the information collection (IC) aspects of 
this NPRM to: Office of Information and Regulatory Affairs, Attn: OMB 
Desk Officer for DOL-ETA, Office of Management and Budget, 725 17th 
Street NW, Washington, DC 20503, Fax: (202) 395-6881 (this is not a 
toll-free number), email: [email protected].
    Comments on the information collection determination described in 
Section V. D of the preamble (Paperwork Reduction Act) also may be 
submitted (postmarked, sent, or received) by January 6, 2020 in Docket 
Number ETA-2019-0010. The Department will consider comments on the 
information collection determination submitted in either docket, but is 
providing additional time for commenters to submit relevant information 
collection comments to Docket Number ETA-2019-0010. See section V.D of 
this NPRM (``Paperwork Reduction Act'') for particular areas of 
interest.

FOR FURTHER INFORMATION CONTACT: Heidi Casta, Deputy Administrator, 
Office of Policy Development and Research, U.S. Department of Labor, 
Employment and Training Administration, 200 Constitution Avenue NW, 
Room N-5641, Washington, DC 20210, Telephone: (202) 693-3700 (voice) 
(this is not a toll-free number) or 1-800-326-2577 (Telecommunications 
Device for the Deaf).

SUPPLEMENTARY INFORMATION: 

Preamble Table of Contents

I. Acronyms and Abbreviations
II. Executive Summary
III. Background
    A. Introduction to the Trade Adjustment Assistance Program
    B. Statutory and Regulatory History of the Trade Adjustment 
Assistance Program
    C. Need for the Notice of Proposed Rulemaking
IV. Section-by-Section Discussion of the Proposed Changes
    A. Subpart A--General
    B. Subpart B--Petitions, Investigations, and Determinations
    C. Subpart C--Employment and Case Management Services
    D. Subpart D--Job Search and Relocation Allowances
    E. Subpart E--Reemployment Trade Adjustment Assistance
    F. Subpart F--Training Services
    G. Subpart G--Trade Readjustment Allowances
    H. Subpart H--Administration by Applicable State Agencies
    I. Subpart I--Allocation of Funds to States for Training and 
Other Activities

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V. Agency Determinations
    A. Legal Authority
    B. Executive Orders 12866 (Regulatory Planning and Review), 
13563 (Improving Regulation and Regulatory Review), and 13771 
(Reducing Regulation and Controlling Regulatory Costs)
    C. Regulatory Flexibility Act, Small Business Regulatory 
Enforcement Fairness Act of 1996, and Executive Order 13272 (Proper 
Consideration of Small Entities in Agency Rulemaking)
    D. Paperwork Reduction Act
    E. Executive Order 13132 (Federalism)
    F. Unfunded Mandates Reform Act of 1995
    G. Executive Order 13175 (Indian Tribal Governments)

I. Acronyms and Abbreviations

AAIW(s) adversely affected incumbent worker(s)
AAW(s) adversely affected worker(s)
ABE adult basic education
ATAA Alternative Trade Adjustment Assistance
BLS Bureau of Labor Statistics
CFR Code of Federal Regulations
CSA(s) cooperating State agency(/ies)
Department Department of Labor
EB Extended Benefits
ECI Employment Cost Indices
ELA English language acquisition
E.O. Executive Order
ETA Employment and Training Administration
ETP(s) eligible training provider
EUCA Federal-State Extended Unemployment Compensation Act of 1970
FOIA Freedom of Information Act
FR Federal Register
FTR Federal Travel Regulation
FUTA Federal Unemployment Tax Act
FY Fiscal Year
GPA grade point average
GPRA Government Performance Results Act of 1993
HCTC Health Coverage Tax Credit
HEA Higher Education Act of 1965, as amended
HSE high school equivalency
IC information collection
IEP(s) individual employment plan(s)
IRS Internal Revenue Service
IT information technology
ITC International Trade Commission
JSP job search program
JTPA Job Training Partnership Act
LEP limited English proficient
local area local workforce development area
LWDB local workforce development board
MIS management information systems
NPRM Notice of Proposed Rulemaking
OECD Organisation for Economic Co-operation and Development
OJT on-the-job training
OMB Office of Management and Budget
OPDR Office of Policy Development and Research
OPM Office of Personnel Management
OTAA Office of Trade Adjustment Assistance
PCE Personal Consumption Expenditures
PII personally identifiable information
PIRL Participant Individual Record Layout
PRA Paperwork Reduction Act
PRWORA Personal Responsibility and Work Opportunity Reform Act
Pub. L. Public Law
RFA Regulatory Flexibility Act
RIN Regulatory Identification Number
RRUI Railroad Unemployment Insurance Act
RTAA Reemployment Trade Adjustment Assistance
Secretary Secretary of Labor
SSA Social Security Act
Stat. U.S. Statutes at Large
TAA Trade Adjustment Assistance
TAA Program
collective reference to the following three programs: TAA for 
Workers Program, ATAA, and RTAA
TAAEA Trade Adjustment Assistance Extension Act of 2011
TAARA 2002 Trade Adjustment Assistance Reform Act of 2002
TAARA 2015 Trade Adjustment Assistance Reauthorization Act of 2015
TaOA Training and Other Activities
TEGL(s) Training and Employment Guidance Letter(s)
TGAAA Trade and Globalization Adjustment Assistance Act of 2009
The Act chapter 2 of title II of the Trade Act of 1974, as amended
TRA Trade Readjustment Allowances
UI Unemployment Insurance
UIPL Unemployment Insurance Program Letter
UMRA Unfunded Mandates Reform Act of 1995
U.S.C. United States Code
USCIT United States Court of International Trade
WARN Worker Adjustment and Retraining Notice
WBA(s) weekly benefit amount(s)
WIA Workforce Investment Act of 1998
WIOA Workforce Innovation and Opportunity Act

II. Executive Summary

    The Department proposes to streamline and consolidate three 
separate parts of the CFR that contain TAA Program regulations (20 CFR 
parts 617 and 618, 29 CFR part 90) into a single part (20 CFR part 618) 
with nine subparts. In addition, the proposed revisions would codify 
into regulation elements of the most recent TAA Program reauthorization 
and amendment, the Trade Adjustment Assistance Reauthorization Act of 
2015 (Pub. L. 114-27, title IV) (TAARA 2015). This NPRM also 
incorporates existing operating instructions issued via administrative 
guidance into the TAA Program regulations, with some refinements. 
Further, the proposed revisions align the TAA Program regulations with 
the Workforce Innovation and Opportunity Act (WIOA) (Pub. L. 113-128), 
the 2014 comprehensive legislation that reauthorized the public 
workforce system.
    The NPRM would increase efficiency and flexibility for States and 
trade-affected workers. Because subpart B (Petitions, Investigations, 
and Determinations) of this NPRM expressly proposes to permit workers 
employed by a leasing or staffing agency (termed ``staffed workers'') 
to be members of a worker group, even if they are not mentioned 
specifically within the determination document, the Department 
anticipates a substantial reduction in the number of requests to amend 
certifications. The Department also proposes to increase flexibility in 
subpart D (Job Search and Relocation Allowances) by making it easier 
for adversely affected workers (AAWs) to qualify for a job search 
allowance and ensuring that workers who qualify for relocation 
allowances are finding comparable or better paying jobs. Subpart F 
(Training Services) would expand work-based training to include 
apprenticeships for all or part of a trade-affected worker's training 
program. It also establishes a regulatory framework to provide 
assistance to workers who are currently employed but threatened with 
job loss resulting from trade, thereby enabling such workers to retrain 
and seek new employment before job separation occurs. And in subpart H 
(Administration by Applicable State Agencies), the Department would 
extend flexibility by removing the requirement that only State merit 
staff can be funded through employment and case management funding 
available under the TAA Program, allowing States more flexibility with 
program operations and creating better alignment with WIOA.
    The NPRM seeks to improve service delivery, and thereby serve more 
trade-affected workers more effectively, by including service-delivery 
requirements that align with data-tested methods. The proposed subpart 
A (General) regulations better define certain investigations-based 
terms to add consistency at both the State and Federal level and 
improve program operations, including reducing burden and workload for 
TAA Program investigative reconsiderations and appeals related to these 
terms. In addition, the Department proposes to help provide positive 
outcomes for each trade-affected worker by including new data-driven 
requirements for assessments and individual employment plans (IEPs) in 
subpart C (Employment and Case Management Services).
    Lastly, the NPRM would implement statutory provisions for 
Reemployment Trade Adjustment Assistance (RTAA) and would incorporate 
administrative guidance previously issued by the Department in subpart 
E since no

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regulations covering the RTAA program exist. Proposed subpart G (Trade 
Readjustment Allowances (TRA)) would implement several statutory 
changes to TRA, including establishing deadlines to enroll in training, 
reducing the types of available waivers, allowing an election between 
Unemployment Insurance (UI) and TRA, and allowing AAWs to earn up to 
their weekly benefit amount without penalty. In addition, proposed 
subpart I (Allocation of Funds to States for Training and Other 
Activities) replaces the term ``training'' with ``Training and Other 
Activities'' (TaOA) to reflect the additional benefits and services 
covered by such funding.
    The NPRM would reduce costs and legal burden from court proceedings 
by providing the public and courts with the Department's authoritative 
interpretation of the Act. Proposed subpart B (Petitions, 
Investigations, and Determinations) also would produce other cost 
savings by eliminating the two-step process for reconsiderations, which 
would reduce the processing time involved for all reconsiderations, and 
by clarifying ``final determinations'' for judicial appeals, which 
would reduce the number of those appeals. Lastly, proposed subpart H 
(Administration by Applicable State Agencies) would produce cost 
savings by revising the merit staff requirements to allow States to 
charge time for non-merit staff to TAA Program funds for the provision 
of employment and case management services.
    The purposes of the proposed revisions are to ensure that the TAA 
Program regulations are modernized to reflect the program's current 
operation and make needed improvements. The proposed revisions also 
would provide clarity by eliminating confusing and overly technical 
language and update the TAA Program regulations by encouraging the use 
of paperless electronic mechanisms over paper-based methods.
    The Department's preliminary regulatory impact analysis determines 
that this NPRM is a deregulatory action under E.O. 13771 because the 
cost savings associated with the rule would be larger than the 
anticipated costs of the rule. Cost savings associated with the rule 
are from revisions to the definition of ``final determination'' related 
to judicial appeals and from streamlining the reconsideration process. 
The costs of the NPRM are those associated with State staff needing to 
familiarize themselves with the new regulations, the development of 
IEPs for trade-affected workers seeking training or job search 
allowances, and the implementation of two IC forms (ETA Forms 8561, 
Study of Domestic Industry, and 9185, Application for Reconsideration). 
The Department expects the NPRM to have an average annual cost of 
$6,604 and a total 10-year cost of $46,383 (with 7-percent 
discounting). The Department estimates that the NPRM would have an 
annual cost savings of $79,654 and a total 10-year cost savings of 
$559,456 (with 7-percent discounting). In addition, the NPRM is 
estimated to result in annual transfer payments (i.e., redistribution 
of resources from one group to another that do not affect total 
resources available to society) of $564,257 and total 10-year transfer 
payments of $3,963,105 (with 7-percent discounting). The Department 
estimates that the NPRM would result in net cost savings of $626,333 
discounted at 3 percent and $513,073 discounted at 7 percent, both 
expressed in 2018 dollars. See section V.B, the economic analysis, for 
a detailed discussion of the Department's preliminary regulatory impact 
analysis.

III. Background

A. Introduction to the Trade Adjustment Assistance Program

    The Trade Act of 1974 (Pub. L. 93-619), as amended (the Act) 
(codified at 19 U.S.C. 2271 et seq.), title II, chapter 2, established 
TAA for Workers program, Alternative Trade Adjustment Assistance 
(ATAA),\1\ and RTAA programs. These programs, collectively referred to 
as the TAA Program, assist U.S. workers who have lost or may lose their 
jobs as a result of foreign trade (i.e., trade-affected workers). The 
TAA Program provides AAWs and adversely affected incumbent workers 
(AAIWs) with opportunities to obtain skills, credentials, resources, 
and support to help them become reemployed. TAA Program benefits and 
services under TAARA 2015 include employment and case management 
services; training; out-of-area job search and relocation allowances; 
income support through TRA; the RTAA wage supplement benefit for AAWs 
aged 50 or older who find qualifying reemployment; and, if available, 
eligibility for assistance with health care premium costs under the 
Health Coverage Tax Credit (HCTC),\2\ which is administered by the 
Internal Revenue Service (IRS).
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    \1\ ATAA is largely unaddressed in this NPRM because this NPRM 
codifies the TAARA 2015 Program and ATAA was replaced by RTAA. RTAA 
is newly codified in this NPRM.
    \2\ Because under TAARA 2015, the HCTC expires by January 1, 
2020, references to the HCTC throughout this NPRM are coupled with 
``if available'' or similar phrasing.
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    There are two steps for trade-affected workers to obtain program 
benefits and services. First, a group of workers must file a petition 
or have a petition filed on their behalf with the Department to 
determine worker-group eligibility. Upon receiving a petition, the 
Department initiates an investigation to determine whether the 
circumstances of the layoff meet the group-eligibility criteria 
established by sec. 222 of the Act. Second, if the Department finds the 
group eligible and certifies the petition, individual trade-affected 
workers in the worker group may apply to their State for TAA Program 
benefits and services. Under agreements between the Secretary of Labor 
(Secretary) and each Governor, the States determine individual 
eligibility based on the statutory criteria and provide the TAA Program 
benefits and services to trade-affected workers with Federal funds 
allocated by the Department for that purposes. The TAA Program is a 
required one-stop partner under WIOA. One-stop centers--branded as 
American Job Centers under WIOA--deliver workforce development services 
to job seekers and businesses nationwide.
    Since 1975, the TAA Program has served over two million trade-
affected U.S. workers. In Fiscal Year (FY) 2017, an estimated 94,017 
workers became eligible for TAA Program benefits and services. Nearly 
75 percent of trade-affected workers obtained employment within 6 
months of completing the TAA Program, and over 90 percent of those who 
found work retained their jobs 6 months later.\3\
    Trade-affected workers come from a variety of backgrounds and 
industries, so they enter the program with a wide array of skills and 
experience. Most trade-affected workers who enter the program, however, 
face similar challenges in obtaining reemployment. Trade-affected 
workers have no postsecondary degree typically, an average age of 49, 
and an average of 12 years of experience in a specific job that may no 
longer exist.\3\ The TAA Program is designed to serve the needs of this 
unique population.
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    \3\ U.S. Department of Labor, Employment and Training 
Administration. (2018). ``Trade Adjustment Assistance for Workers 
Program: Fiscal Year 2017.'' Retrieved from: https://www.doleta.gov/tradeact/docs/AnnualReport17.pdf.
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    An ever-changing global marketplace drives the 21st-century 
economy. For America to compete in the global economy, its workers need 
to have the skills and support to take advantage of new opportunities. 
The TAA Program aims to do that by helping American workers retrain and 
reenter the workforce.

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B. Statutory and Regulatory History of the Trade Adjustment Assistance 
Program

    The foundation of the current TAA Program was established by 
chapter 2 of title II of the Trade Act of 1974 (Pub. L. 93-618).
    Congress has since reauthorized and amended chapter 2, and thus the 
TAA Program, multiple times. The TAA Program was changed extensively by 
amendments in 1981 (Pub. L. 97-35, title XXV), 1984 (Pub. L. 98-369, 
secs. 2671 and 2672), 1986 (Pub. L. 99-272, title XIII, subtitle A, 
part 1), 1988 (Pub. L. 100-418, title I, subtitle D, part 3), and 1993 
(Pub. L. 103-182, sec. 506). In 1987, the Department issued a final 
rule significantly revising the certification process in 29 CFR part 90 
(52 FR 23403, June 19, 1987) and in 1994, the Department issued a final 
rule significantly revising the TAA Program regulations in 20 CFR part 
617 to implement the 1988 amendments (59 FR 906, Jan. 6, 1994).
    In 2002, Congress reauthorized and amended the TAA Program in the 
Trade Adjustment Assistance Reform Act of 2002 (TAARA 2002) (Pub. L. 
107-210). TAARA 2002 expanded the scope of the TAA Program, increased 
its benefit amounts, repealed the North American Free Trade Agreement 
Transitional Adjustment Assistance (or NAFTA-TAA) program, established 
the HCTC to subsidize private health-insurance costs for qualified 
workers, and created ATAA as a demonstration program.
    The Department published two NPRMs in 2006, to implement the TAARA 
2002 amendments (71 FR 50760, Aug. 25, 2006 and 71 FR 61618, Oct. 19, 
2006). However, Congress in 2007 (Pub. L. 110-5), 2008 (Pub. L. 110-
161), and 2009 (Pub. L. 111-8) prohibited the Department from further 
action until Congress reauthorized the TAA Program. The next 
reauthorization, the Trade and Globalization Adjustment Assistance Act 
of 2009 (TGAAA) (Pub. L. 111-5, div. B, title I, subtitle I), made such 
substantial amendments to the TAA Program that it rendered the two 2006 
NPRMs obsolete. The Department withdrew the NPRMs in 2009 (74 FR 27262, 
June 9, 2009).
    TGAAA, part of the American Recovery and Reinvestment Act (Pub. L. 
111-5), reauthorized and substantially amended the TAA Program. It 
expanded the program's benefits and the types of trade-affected workers 
the Department could certify. Section 1893 of TGAAA provided that most 
of the TGAAA amendments would expire on December 31, 2010. Congress 
later extended that expiration date by 6 weeks (Pub. L. 111-344).
    The Department revised the TAA Program regulations in 2010, by 
adding a new 20 CFR part 618 (75 FR 16988, Apr. 2, 2010). The revisions 
addressed the allocation of TAA Program training funds to the States. 
The revisions also required for the first time by regulation that State 
administration of the TAA Program be performed by merit staff.
    The Trade Adjustment Assistance Extension Act of 2011 (TAAEA), 
enacted in 2011, for the most part restored the expanded certification 
criteria and benefits and services provided under TGAAA, but changed 
some provisions.
    TAARA 2015 reauthorized the TAA Program through 2021. It primarily 
followed TAAEA, the 2011 law, but amended a few key provisions. The 
amendments included capped funding for TaOA at $450 million per fiscal 
year and establishment of new performance indicators to align with 
WIOA. TAARA 2015 reauthorized the RTAA and HCTC benefit programs. TAARA 
2015 also continued to grandfather earlier versions of the TAA Program 
for trade-affected workers who had been certified under TAARA 2002, 
TGAAA, and TAAEA.

C. Need for the Notice of Proposed Rulemaking

    The TAA Program regulations were last updated in 1994, with only 
minor changes made in 2006,\4\ 2007,\5\ and 2010.\6\ Since that time, 
multiple TAA Program reauthorizations and amendments have required 
various changes to the program, which the Department has addressed 
through administrative guidance. This NPRM proposes to codify in 
regulation the most recent reauthorization and amendment (TAARA 2015) 
as well as significant elements of TAA Program administrative guidance. 
The NPRM is drafted to reflect how the TAA Program is currently 
operating under TAARA 2015, with some proposed adjustments that would 
improve the program. Once finalized, the Department will rescind 
redundant administrative guidance, as appropriate, based on the final 
rule.
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    \4\ 71 FR 35511 (June 21, 2006) (making technical amendments to 
update obsolete, nonsubstantive, or nomenclature references).
    \5\ 72 FR 37097 (July 9, 2007) (making minor changes to 29 CFR 
part 90).
    \6\ 75 FR 16988 (Apr. 2, 2010) (adding 20 CFR part 618 to 
include only subparts H and I relating to merit staffing of State 
administration and allocation of TAA Program training funds to 
States).
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    The NPRM, if finalized, would help States and the public better 
understand the proper operation of the TAA Program. States would no 
longer have to use a combination of regulations and administrative 
guidance to guide the worker-group certification process at the Federal 
level and the administration of individual benefits and services at the 
State level. The NPRM would promote transparency by setting out, in 
binding regulation, the major principles by which the TAA Program 
operates. In addition, it provides the public and courts with the 
Department's authoritative interpretation of the Act.
    In addition, the NPRM proposes clarifications that draw upon the 
Department's expertise gained from decades of experience operating the 
TAA Program. For example, the Department's litigation experience has 
provided insight into parts of the TAA Program regulations that need 
clarification to ensure more effective, efficient, and consistent 
operations of the TAA Program throughout the United States. In 
addition, since 2009, the Department has had the benefit of real-time 
data on trade-affected workers participating in the TAA Program, the 
analysis of which has driven some improvements to regulatory provisions 
included in this NPRM.
    The NPRM also includes changes that would align the TAA Program 
regulations with WIOA. For example, WIOA further integrated the TAA 
Program with the public workforce and education systems by affirming 
the TAA Program as a required partner in the one-stop delivery system. 
The NPRM also would remove outdated references to the Job Training 
Partnership Act (JTPA) and the Workforce Investment Act of 1998 (WIA). 
The proposed TAA Program regulations would align with and reference the 
WIOA regulations where appropriate.

IV. Section-by-Section Discussion of the Proposed Changes

A. Subpart A--General

    Proposed subpart A sets forth the purpose and scope of the TAA 
Program and defines relevant terms used throughout the rule. Proposed 
subpart A modifies and simplifies several definitions for greater 
clarity, eliminates definitions in response to statutory changes to the 
Act, and adds definitions of new terms based on statutory changes. The 
definitions used in this NPRM are intended to describe a modernized TAA 
Program, which has evolved since TAARA 2002, and ensure the TAA Program 
aligns with WIOA.
Section 618.100 Purpose and Scope
    Proposed Sec.  618.100 describes the purpose and scope of the TAA 
Program.

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The Department proposes updates to the scope and purpose based on 
programmatic experience to reflect more realistically the achievable 
outcomes for trade-affected workers.
    Proposed Sec.  618.100(a) establishes the purpose of the TAA 
Program. Under the existing statement of purpose at 20 CFR 617.2, the 
stated goal of the TAA Program is to return trade-affected workers to 
``suitable employment'' as quickly as possible. In this context, 
suitable employment means that after the trade-affected worker receives 
services under the TAA Program, the worker is reemployed at an equal or 
higher skill level, earning at least 80 percent of their former wages. 
This goal of attaining suitable employment has not changed.
    Unfortunately, there are situations in which trade-affected workers 
may be unable to obtain suitable employment. Such difficulties in 
obtaining suitable employment may occur because (1) few, if any, jobs 
are available at the workers' former wages that require the trade-
affected workers' experience; (2) the local labor market has few 
available jobs; or (3) the trade-affected workers have substantial 
barriers to reemployment. These factors can significantly limit trade-
affected workers' employment opportunities. Yet offering appropriate 
training, especially in a stagnant labor market, may significantly 
increase a trade-affected worker's prospects of obtaining suitable 
employment.
    The Department is committed to ensuring trade-affected workers have 
access to training that will allow them the best possible outcomes and 
ability to compete for work at the highest skill levels and highest 
wages achievable, given the trade-affected workers' preexisting skill 
levels, abilities, and education, and the current and projected labor 
market, and to do so as quickly as possible. This must be accomplished 
with prudence, careful management of limited TAA Program funds, and a 
practical understanding of labor market realities. States must ensure 
that they administer their programs equitably and reasonably. Proposed 
Sec.  618.100(b) expands the scope of the TAA Program beyond the scope 
in 20 CFR 617.1 and lists the types of TAA Program benefits and 
services that will be addressed in this proposed part 618. Proposed 
Sec.  618.100(c) carries forth a statement in 20 CFR 617.2 specifying 
that the regulations in this part are issued to implement the Act.
Section 618.110 Definitions
    Proposed Sec.  618.110 defines terms applicable to all other 
sections of the NPRM unless otherwise stated. The terms defined in the 
proposed rule are derived from the Act; 20 CFR part 617; 29 CFR part 
90; and the WIOA Final Rule (81 FR 56072 (Aug. 19, 2016); 81 FR 55792 
(Aug. 19, 2016)). Some definitions are taken from the Act, others 
interpret or expound upon terms in the Act, and others are terms that 
the Department will use in implementing the Act. The defined terms in 
the rule apply solely for purposes of this part 618.
    The following section lists and explains proposed new terms and 
their definitions, revisions to definitions, and removal of defined 
terms.
    Act--This NPRM modifies the definition of this term from 20 CFR 
617.3(a) and 29 CFR 90.2, and updates the U.S. Code citation to 19 
U.S.C. 2271-2323 and 2395. At the issuance of this NPRM, the most 
recent amendment, Public Law 114-27, applies.
    Administrator--This NPRM adds this term and defines it for the 
first time to reflect the statutory change in sec. 249A(a) and (b) of 
the Act, which requires that the Division of Trade Adjustment 
Assistance be designated as the Office of Trade Adjustment Assistance 
(OTAA), and that the head of the OTAA be designated an Administrator 
rather than a Director. Also, this NPRM removes the defined term 
``Director'' from 29 CFR 90.2.
    Adversely affected employment--This NPRM modifies the definition of 
this term from 20 CFR 617.3(b) and is based on the statutory definition 
in sec. 247(1) of the Act. No substantive changes from those 
definitions are intended. This NPRM omits the explicit reference to 
agricultural firms from the definition in 20 CFR 617.3(b). Although 
agricultural firms may be identified as adversely affected employment, 
there were no other references to agricultural firms in 20 CFR part 
617, and, other than in the definition of ``firm,'' which specifies 
that agricultural firms are included, there are no references to 
agricultural firms in the NPRM.
    Adversely affected worker or AAW--This NPRM modifies the definition 
of this term from 20 CFR 617.3(c) to clarify the Department's 
interpretation of this term defined in sec. 247(2) of the Act. 
Specifically, an employer may be considered an AAW when the employer is 
also an employee of a business that closes or experiences a reduction 
in operation. For example, the president of the firm lays off everyone 
at the firm, including herself. In this circumstance, if the employer 
becomes totally or partially separated from their adversely affected 
employment, the employer is an AAW. Additionally, this NPRM omits the 
reference in the definition of this term from 20 CFR 617.3 to a 
subdivision of a firm since employment in an appropriate subdivision of 
a firm is part of the definition of the term ``adversely affected 
employment'' and including it in the definition of the term ``adversely 
affected worker'' is redundant. The combined terms ``adversely affected 
worker'' and ``adversely affected incumbent worker'' are also referred 
to as a trade-affected worker throughout the NPRM.
    Adversely affected incumbent worker or AAIW--This NPRM adds this 
term and defines it for the first time. The proposed new definition is 
from sec. 247(18) of the Act. Under this proposed definition, workers 
who are part of a worker group that has been certified under subpart B 
as eligible to apply for the TAA Program, and are individually 
threatened to be, but who have not yet been, totally or partially 
separated from their adversely affected employment, may be eligible to 
receive certain benefits under the program. An AAIW, in combination 
with an AAW, is referred to as a trade-affected worker throughout this 
NPRM.
    Agent State--This NPRM modifies the definition of this term from 20 
CFR 617.3(aa)(2) and 617.16(e) by including the phrase ``trade-affected 
worker'' instead of the term ``individual.'' The term ``Liable State'' 
is now separately defined in this proposed subpart A.
    Applicable State law--This NPRM adds this term and defines it for 
the first time to clarify that this term, which appears in secs. 
232(a)(2), 239(e), and 247 of the Act, refers to State UI law. The 
definition is modified from 20 CFR 617.16(a) for clarity and procedures 
for determining applicable State law are provided in proposed Sec.  
618.898.
    Appropriate subdivision--This NPRM adds this term and modifies the 
definition of this term from 29 CFR 90.2 (included as part of the 
definition of the term ``firm''). The phrase ``appropriate 
subdivision'' is also part of the definition of the term ``firm'' under 
sec. 247(3) of the Act. The terms ``physical facility,'' 
``organizational department,'' ``product line,'' ``project team,'' 
``operational unit,'' or ``part or combination thereof'' have been 
added to the terms ``establishment'' and ``auxiliary facilities 
operated in conjunction with (whether or not physically separate from) 
production facilities'' from 29 CFR 90.2. This proposed definition 
reflects that service workers are now eligible for benefits

[[Page 60155]]

and explains that the term is defined flexibly. Included are all 
workers at the location(s) who have been totally or partially separated 
or threatened with separation, including teleworkers who identify as 
reporting to that location(s), and may include workers at a satellite 
office or shared space who function as if they were at that 
location(s), identified in the petition, or subsequently identified 
during the course of the investigation, whose employment is dependent 
upon the production of the specific article or supply of the specific 
service identified in the petition, or identified during the course of 
the investigation. The proposed definition also clarifies that 
colocation is neither a requirement nor a presumption in determining an 
appropriate subdivision. Thus, an appropriate subdivision of a firm 
could include operational units that produce the article or provide the 
service in question, even if the units are not at the same physical 
location. Teleworkers, and staffed workers, may be part of the 
appropriate subdivision. In contrast, the fact that all of the workers 
are located at the same physical location does not necessarily mean 
that they are part of the appropriate subdivision. Additionally, when 
worker separations and trade effects are limited to a discrete, 
individually distinct organizational unit, it may be that only a 
particular subset of workers in the specific organizational unit meets 
the sec. 222 group-eligibility requirements. In these cases, and as 
described in the example below, a narrower interpretation focusing on 
where the trade effects are concentrated, informs the definition of 
``appropriate subdivision.'' Identifying a discrete subset of workers 
makes for a clearer causal nexus between a trade effect and the worker 
separations, especially when an organization provides multiple 
services, produces multiple articles, or consists of multiple units. 
Consequently, a determination may consist of several appropriate 
subdivisions when each subdivision is impacted by a different trade 
effect, or it may consist of a certification of an appropriate 
subdivision and a denial of the remaining group(s) of workers.
    Here is an example. The appliances division of a company produces 
both ovens and refrigerators. The division's 200 workers are separately 
identifiable, with 150 who produce refrigerators and 50 who produce 
ovens. The company shifts abroad some of its oven production and lays 
off eight oven-producing workers. The ``appropriate subdivision'' would 
be the oven product line, not the entire appliances division. If, 
however, the company's sales fell due to foreign imports of ovens and 
refrigerators, and it laid off 25 workers from both product lines, the 
appropriate subdivision would be the entire appliances division.
    Here is another example. A petition is filed on behalf of a group 
of workers in the accounting division of a car-manufacturing facility. 
If the workers were being separated due to the manufacturer's decision 
to acquire the same accounting services abroad instead of performing 
them in-house, the appropriate subdivision would be the accounting 
division. If the workers were being separated as part of a larger set 
of layoffs across every unit in the manufacturing facility because of 
increased imports of foreign-made cars, the appropriate subdivision 
would be the entire facility.
    The Department's experience in implementing the provisions covering 
workers in the service sector has demonstrated that the organizational 
structures that companies use to supply services may differ 
significantly from those used to manufacture a product. Service sector 
workers are more likely to be spread out geographically or to work 
remotely than are workers in a manufacturing environment. The proposed 
definition makes it clear that flexibility is needed to ensure that the 
Department can address new and varied organizational structures.
    Appropriate week--This NPRM modifies the definition of this term 
from 20 CFR 617.3(d) by replacing ``individual'' with ``AAW.'' This 
term is used in the proposed definitions of the terms ``average weekly 
hours'' and ``average weekly wage.''
    Approved training or TAA approved training--This NPRM adds this 
term and defines it for the first time. For training to be approved, 
the trade-affected worker must apply for training with the State and 
receive approval of the training program from the State after meeting 
the requirements of sec. 236(a)(1) of the Act, as described in proposed 
Sec.  618.610. The other requirements and limitations of subpart F must 
also be met.
    Article--This NPRM adds this term and defines it for the first 
time. The proposed term is in secs. 222 and 224 of the Act and the 
proposed definition is based on case law and current practice. An 
article may be tangible (including manufactured items, livestock, and 
commodities) or intangible (including software code and digital media). 
There is a distinction between an object produced for the purpose of 
sale (such as a book) and one produced incidental to the provision of a 
service (such as a ticket). While both objects may be tangible 
(paperback novel and paper ticket, respectively) or intangible (e-book 
and e-ticket, respectively), the paperback book and the e-book are 
articles because they were produced by a firm and moved from one party 
to another at the contract of sale and for which ownership rights are 
transferred from one party to another under the contract of sale. The 
ticket is not an article but is a token that represents the intent or 
completion of a service. Where the revenue of the firm or appropriate 
subdivision is generated from the sale or production of an article, the 
firm or appropriate subdivision is deemed to be engaged in activity 
related to the sale or production of an article.
    Average weekly hours--This NPRM modifies the definition of this 
term from 20 CFR 617.3(e), and has been combined with the statutory 
definition in sec. 247(5) of the Act. The phrase ``consecutive 
calendar'' has been added to the word ``weeks'' to clarify that the 52 
weeks that comprise the average are the 52 consecutive calendar weeks 
before the worker's first qualifying separation. Additionally, for 
consistency purposes, the word ``individual'' has been replaced with 
``AAW.''
    Average weekly wage--This NPRM modifies the definition of this term 
from 20 CFR 617.3(f) by incorporating the statutory definition provided 
in sec. 247(4) of the Act. For consistency purposes, the word 
``individual'' has been replaced with ``AAW.''
    Average weekly wage in adversely affected employment--This NPRM 
removes this defined term from 20 CFR 617.3(g) because it is 
unnecessary, as both terms ``average weekly wage'' and ``adversely 
affected employment'' are already defined.
    Benefit period--This NPRM incorporates this defined term from 20 
CFR 617.3(h) without change.
    Certification or affirmative determination or petition 
certification-This NPRM modifies the definition of these terms from 20 
CFR 617.3(j)(1) to clarify that the Department intends ``group of 
workers,'' the term used in 20 CFR 617.3(j)(1), to refer to workers pre 
certification, and the term ``worker group'' to refer to a group that 
has been certified as eligible to apply for TAA Program benefits and 
services. (The terms ``group of workers'' and ``worker group'' are 
defined in this proposed subpart A.) Otherwise, the definition is 
unchanged. This definition does not apply for purposes of the term 
``certification'' in sec. 222(d)(3) (firm or customer must certify 
specific

[[Page 60156]]

information), 236(a)(5)(H) (training involving obtaining or completing 
a degree or certification), 239(a)(3) (certifications for training 
waivers under 231(c)(2)), or 247(19) (definition of ``recognized 
postsecondary credential'') of the Act. It also does not apply with 
respect to the term ``affirmative determination'' in sec. 222(e) (firms 
identified by the International Trade Commission (ITC)) or 224 (ITC 
notifications and investigations) of the Act.
    Certification date or date of certification--This NPRM adds these 
terms and defines them for the first time. This NPRM removes the 
defined term ``date of issuance'' from 29 CFR 90.2. The change is 
intended to make clear that the date the Certifying Officer signs a 
certification is the date on which the certification takes effect.
    Certification period--This NPRM modifies the definition of this 
term from 20 CFR 617.3(j)(2) to provide additional details to help 
clarify this specific time period. However, the meaning remains 
unchanged and is the period of time during which a worker group is 
covered by a certification.
    Certifying Officer--This NPRM modifies the definition of this term 
from 29 CFR 90.2 to reflect the statutory change in sec. 249A of the 
Act, which changes the ``Division of Trade Adjustment Assistance'' to 
the ``Office of Trade Adjustment Assistance'' and the title of the head 
of that office from ``Director'' to ``Administrator.''
    Co-enrollment--This NPRM adds this term and defines it for the 
first time. It refers to enrolling a trade-affected worker both in the 
TAA Program and also in another program administered through a State's 
one-stop delivery system.
    Commission or International Trade Commission or ITC--This NPRM 
incorporates these defined terms from 29 CFR 90.2 without change.
    Commuting area--This NPRM modifies the definition of this term from 
20 CFR 617.3(k) by replacing the word ``individual'' with ``trade-
affected worker.''
    Completion of training or complete training or completed training--
This NPRM adds these terms and defines them for the first time. It 
clarifies the Department's interpretation of when a trade-affected 
worker completes TAA approved training.
    Component part--This NPRM adds this term and defines it for the 
first time. The proposed definition is based on the statutory text, 
case law, and current practice. The Act consistently uses the term 
``component part'' in the context of articles and does not use it in 
the context of service. Consequently, the Department determines that 
there is no component part of a service. A component part is a tangible 
or intangible input that is directly incorporated into another article 
and that becomes a subunit of that other article, although it need not 
retain its original form or characteristics. Examples of a component 
part of an article include a button on a shirt, lacquer on a table, 
preservatives in processed food, and code embedded in a microchip. 
Examples of inputs that are not component parts include production 
equipment, molds and castings, energy to power the production facility, 
code in software to operate machinery, blueprints, and designs. A 
component part is neither like nor directly competitive with the 
article into which it is directly incorporated.
    Confidential business information--This NPRM modifies the 
definition of this term from 29 CFR 90.33(a) by including a reference 
to the Trade Secrets Act, 18 U.S.C. 1905, and by omitting the phrase 
``obtained from a person'' since the confidentiality exception applies 
regardless of its source. Title 29 CFR 90.33(a) identifies the Freedom 
of Information Act (FOIA), 5 U.S.C. 552, and the Department's 
regulations implementing FOIA, 29 CFR part 70, as the bases for 
designating confidential business information as ``privileged or 
confidential.'' FOIA exemption (b)(4) exempts from mandatory disclosure 
under FOIA trade secrets and certain commercial or financial 
information. The Trade Secrets Act prohibits the disclosure of trade 
secrets and confidential business information without legal authority. 
The proposed definition also adds that confidential business 
information could be received by the Department, or by the States on 
the Department's behalf.
    The proposed definition also reflects TGAAA's addition of paragraph 
(e)(3) to sec. 222 of the Act (now sec. 222(d)(3)), which in part 
requires the Department to protect the confidentiality of information 
obtained during an investigation ``that the Secretary considers to be 
confidential business information,'' unless the firm or customer 
submitting the information had notice, at the time of submitting the 
information, that the information would be released by the Department, 
or subsequently agrees to its disclosure.
    Finally, the proposed definition is used in conjunction with 
investigations under proposed subpart B. The NPRM relocates the 
information provided by 29 CFR 90.33(b) and (c) to proposed subpart B.
    Contributed importantly--This NPRM adds this term and defines it 
for the first time. The proposed definition adopts the statutory 
definition in sec. 222(c) of the Act and is used in the petition 
investigation process described in proposed subpart B.
    Cooperating State agency or CSA--This NPRM adds these terms and 
defines them for the first time to accurately identify the agency at 
the State level that will act as an agent of the Department in 
receiving applications from and providing benefits and services to 
trade-affected workers. The proposed definition incorporates language 
that is used in Governor-Secretary Agreements, as further described in 
proposed subpart H.
    Customized training--This NPRM adds this term and defines it for 
the first time to identify a type of training approvable under the Act 
and proposed subpart F. The proposed definition of ``customized 
training'' is taken from sec. 236(f) of the Act. Proposed subpart F 
addresses exclusions specific to AAIWs from sec. 236(a)(10)(B) of the 
Act.
    Date of issuance--This NPRM removes this defined term from 29 CFR 
90.2 because it is not used in the Act or in the NPRM and is therefore 
unnecessary.
    Date of the petition--This NPRM removes this defined term from 29 
CFR 90.2. In its place, the NPRM proposes a new term, ``petition 
date.''
    Date of separation--This NPRM removes this defined term from 20 CFR 
617.3(k)(1). In its place, the NPRM proposes a new term, ``separation 
date.''
    Denial or negative determination or petition denial--This NPRM adds 
these terms and defines them for the first time. The proposed 
definition is derived from 29 CFR 90.16(f) and describes the result 
when a group of workers has not met the requirements for certification 
and so is not eligible for TAA Program benefits.
    Department of Labor or Department--This NPRM adds this term and 
defines it for the first time. It is used to identify references to the 
U.S. Department of Labor.
    Downstream producer--This NPRM adds this term and defines it for 
the first time. It incorporates the statutory definition at sec. 
222(c)(3) of the Act. A downstream producer is a firm that performs 
additional value-added production processes or services directly for 
another firm for articles or services with respect to which a worker 
group in such other firm has been certified as eligible to apply for 
TAA Program benefits and services. Value-added production processes or 
services

[[Page 60157]]

include final assembly, finishing, testing, packaging, or maintenance 
or transportation services. Production processes are services provided 
directly for the primary firm even if ownership of the primary firm 
changes. Additionally, a firm can be a downstream producer even if the 
article for which the value-added production processes or services are 
carried out will become a component part of the article received from 
the primary firm, or if further value-added finishing or assembly of 
the article occurs downstream by another firm. Additionally, a 
downstream producer may be a firm that provides services to a primary 
firm that produces physical products. For example, a shipping company 
will be a downstream producer if a significant portion of its business 
is lost from a TAA certified primary firm.
    Eligible RTAA recipient and eligible TAA recipient--This NPRM adds 
these terms and defines them for the first time to describe categories 
of persons who may be eligible to qualify for the HCTC (see proposed 
definition of ``HCTC''), if that benefit is available. These terms are 
defined in HCTC administrative guidance.
    Employer--This NPRM incorporates this defined term from 20 CFR 
617.3(n) without change.
    Employment--This NPRM incorporates this defined term from 20 CFR 
617.3(o) without change.
    Enrolled in training--This NPRM modifies the definition of this 
term from 20 CFR 617.11(a)(2)(vii)(D)(1). This term is found at sec. 
231(a)(5)(A) of the Act. The proposed definition is reworded from 20 
CFR 617.11(a)(2)(vii)(D)(1). The proposed definition omits the 
instruction that a waiver is not required for a worker who is enrolled 
in training. That instruction is more clearly provided in proposed 
subpart G. The definition of this term is not the same definition used 
for the performance reporting under subpart H. Separate guidance, 
outside of this rule, is published on reporting requirements.
    Exhaustion of UI--This NPRM removes this defined term from 20 CFR 
617.3(p) and it is to be included in proposed subpart G rather than in 
this proposed subpart A.
    Family--This NPRM modifies the definition of this term from 20 CFR 
617.3(q), which was based on the Internal Revenue Code definition. The 
definition used in this NPRM is the definition of ``immediate family'' 
used in the Federal Travel Regulation (FTR) at 41 CFR 300-3.1.
    Filing date--This NPRM modifies the definition of the term ``date 
of filing'' from 29 CFR 90.2. This term refers to the date on which 
petitions are deemed to be filed. OTAA, the office currently handling 
petitions under the TAA Program, is substituted for ``Division of Trade 
Adjustment Assistance.'' The phrase ``other documents'' has been 
replaced with the phrase ``attachments to the petition form'' to 
clarify that the definition applies to attachments to a petition, and 
not to other documents submitted to the Department. The phrase ``and 
determined to be valid'' has also been added. The Department would 
review a petition, including attachments, to determine if it is valid, 
in accordance with proposed Sec.  618.205, within 2 business days of 
receipt of the petition to the Department. The date on which the 
petition is determined to be valid is the filing date. The Department 
would not initiate the investigation until the petition is deemed 
valid, in accordance with proposed Sec.  618.205(f). Accordingly, this 
interpretation applies to sec. 221(a)(3) of the Act, which states that 
``[u]pon receipt of the petition, [the Department] shall promptly 
publish notice in the Federal Register and on the website of the 
Department of Labor that the Secretary has received the petition and 
initiated an investigation.''
    Firm--This NPRM modifies the definition of this term from 29 CFR 
90.2 and adds some new language derived from sec. 247(3) of the Act, 
including ``[w]here the term `firm' appears in this part, it means 
`firm or appropriate subdivision.' '' This has been added to clarify 
that the term ``firm,'' as defined in sec. 247(3) of the Act, includes 
an appropriate subdivision thereof. Also included in the proposed 
definition is that ``firm'' includes ``an agricultural firm or service 
sector firm or an appropriate subdivision thereof.'' The Department 
also added a clarification that for purposes of determining group 
eligibility only, as described in subpart B, a firm does not include a 
public agency or any subdivision of a public agency. TAAEA modified 
sec. 247 of the Act (19 U.S.C. 2319) by striking ``public agency'' from 
the definition of a ``firm.'' Accordingly, individuals employed by a 
public agency, which the Department defines by reference to 29 U.S.C. 
203(x), are not eligible for a certification of eligibility to apply 
for the TAA Program. This proposed definition of a ``firm'' is intended 
to encompass diverse organizations and to include closely related or 
affiliated organizations. The definition, however, follows basic rules 
of corporate and organizational law by limiting it to entities under 
common ownership or control.
    First benefit period--This NPRM modifies the definition of this 
term from 20 CFR 617.3(r) by replacing ``individual'' with ``AAW'' to 
achieve consistency throughout the NPRM.
    First exhaustion of UI--This definition is proposed for removal, as 
it is included in 20 CFR 617.3(s) and has been included in proposed 
subpart G, rather than in proposed subpart A.
    First qualifying separation--This NPRM removes this defined term 
from 20 CFR 617.3(t)(3). The term is not necessary because the plain 
meaning of the term first qualifying separation is sufficient for use 
in the NPRM and additional clarifying language was added to the term 
``qualifying separation.''
    First separation--This NPRM removes this defined term from 20 CFR 
617.3(t)(1). It was written to address pre-TAARA statutory provisions 
that are outdated due to subsequent statutory amendments. The proposed 
definitions for the terms ``partial separation,'' ``qualifying 
separation,'' and ``total separation'' make this term and definition 
unnecessary.
    Full-time training--This NPRM adds this term and defines it for the 
first time. It is derived from 20 CFR 617.22(f)(4) and defines full-
time training as attendance in training in accordance with the training 
provider's established full-time hours in a day (or credit hours) and 
days in a week. The Department has added an interpretation, originally 
published in TAAEA administrative guidance, that provides that in the 
last semester of training, if the remaining required courses to 
complete the approved training will not meet the training provider's 
normal definition of full-time training, the State must consider the 
AAW to be in full-time training, and otherwise eligible to apply for 
TRA benefits.
    Group of workers--This NPRM adds this term and defines it for the 
first time. It relates to the workers who file a petition or for whom a 
petition is filed and means at least two workers employed or formerly 
employed by the same firm, or an appropriate subdivision. The proposed 
definition includes teleworkers and staffed workers because they are 
frequently performing the same work as other trade-affected workers in 
the subject firm and are under the subject firm's operational control. 
Separated workers are included in the definition because they, too, may 
be trade-affected workers. This term is different from the term 
``worker group.'' This NPRM also removes the defined term ``group,'' 
from 29 CFR 90.2, because it defines ``group'' as three or more workers 
in a firm. The Act does not define this term and ``group'' can be 
interpreted as two or

[[Page 60158]]

more. The Department is interested in comments related to this change.
    Head of family--This NPRM removes this defined term from 20 CFR 
617.3(u) because it is not used in this NPRM.
    Health Coverage Tax Credit or HCTC--This NPRM adds these terms and 
defines them for the first time to describe the tax credit under sec. 
35 of the Internal Revenue Code of 1986 (26 U.S.C. 35), which is 
available to eligible TAA recipients, eligible RTAA recipients, and 
other eligible recipients, including qualifying family members. The 
HCTC benefit is available under TAARA 2015 and was available under 
TAARA 2002, TGAAA, and TAAEA for a limited time.
    Impact date--This NPRM modifies the definition of this term from 20 
CFR 617.3(v) for clarity. Section 223(a) of the Act requires that each 
certification specify the date on which the total or partial separation 
began or threatened to begin. Section 223(b) requires that the impact 
date may not be more than 1 year before the petition date, with 
exceptions for certifications based in sec. 222(e) of the Act and those 
specified in proposed subpart B.
    Increased imports--This NPRM incorporates this defined term from 29 
CFR 90.2 without change.
    Individual employment plan or IEP--This NPRM adds these terms and 
defines them for the first time. It describes an employment and case 
management service required by sec. 235(2) of the Act. The IEP is a 
dynamic document that may be changed based on comprehensive and 
specialized assessments, training program modifications, or other 
factors that emerge during program participation. Proposed subpart C 
describes development of an IEP in more detail.
    Job finding club--This NPRM incorporates this defined term from 20 
CFR 617.3(y) and sec. 247(16)(C) of the Act without change.
    Job search program or JSP--This NPRM incorporates this defined term 
from 20 CFR 617.3(w) and sec. 247(16)(A) of the Act without change.
    Job search workshop--This NPRM modifies the definition of this term 
from 20 CFR 617.3(x) to conform to the definition provided in sec. 
247(16)(B) of the Act.
    Lack of work--This NPRM adds this term and defines it for the first 
time. The proposed term is in sec. 247(2) of the Act and is also in the 
definitions of the terms ``adversely affected worker'' and ``layoff'' 
in this NPRM. The proposed definition incorporates the administrative 
guidance in TEGL No. 12-16 on ``strikes'' and ``lockouts'' and their 
effect on eligibility for TAA Program benefits and services. 
Specifically, a ``lack of work'' separation occurs when the employer 
initiates the unavailability of work--the employer either does not have 
work for the worker to perform or does not make that work available to 
the worker. A lack of work separation can be based on a lockout, 
because a lockout is initiated by the employer. Another example is when 
an employer provides a retirement package incentive or other bonus to 
reduce the workforce through voluntary separations. Some AAWs will meet 
this definition of a ``lack of work'' separation but may still be 
disqualified for UI in some States under their voluntary quit 
provisions. Although the UI disqualification will make these workers 
ineligible for TRA, they may qualify for other benefits and services 
under the TAA Program.
    Layoff--This NPRM modifies the definition of this term from 20 CFR 
617.3(z) and 29 CFR 90.2. The phrase ``suspension or separation from 
employment'' used in 20 CFR 617.3(z) is adopted instead of the phrase 
``suspension from pay status'' used in 29 CFR 90.2 because the 
Department intends for ``layoff'' to include persons separated from 
employment who receive severance pay and, therefore, may be deemed in a 
pay status. Some of these workers may be eligible for TAA Program 
benefits and services, whether or not State law prevents them from 
qualifying for TRA. The words ``of time'' have been added to the 20 CFR 
617.3(z) phrase ``expected to be for a definite or indefinite period,'' 
and this is a change from the 29 CFR 90.2 definition, which does not 
include the latter phrase. In addition, the language at 20 CFR 617.3(z) 
and 29 CFR 90.2 that requires that the layoff be expected to last for 
``not less than seven consecutive days'' and ``no less than seven (7) 
consecutive calendar days,'' respectively, has not been included in the 
proposed definition, because that restriction is not supported by the 
Act. These changes will remove any ambiguity about whether a suspension 
or separation from employment may be for a definite or indefinite 
period and still be a ``layoff'' for TAA Program purposes.
    Liable State--This NPRM modifies the definition of this term from 
20 CFR 617.3(aa)(1) and 617.16(e) to provide more specific directions 
about identifying the liable State. It also includes the phrase 
``trade-affected worker'' instead of ``individual'' and updates 
references to this NPRM. The term ``Agent State'' is now separately 
defined in this proposed subpart A.
    Like or directly competitive--This NPRM modifies the definition of 
this term from 29 CFR 90.2 in order to accommodate the statutory 
changes to group eligibility, which now includes worker groups 
performing services, to address intangible articles and services, and 
to remove the second paragraph, which states, ``An imported article is 
directly competitive with a domestic article at an earlier or later 
stage of processing, and a domestic article is directly competitive 
with an imported article at an earlier or later stage of processing, if 
the importation of the article has an economic effect on producers of 
the domestic article comparable to the effect of importation of 
articles in the same stage of processing as the domestic article.'' The 
Department proposes the removal of the second paragraph of the 
definition because it was seldom used and the proposed changes to the 
definition maintain the Department's ability to determine whether an 
article at an earlier or later stage of production or a service at an 
earlier or later stage of supply are commercially interchangeable. In 
addition, the proposed definition clarifies that like and directly 
competitive articles and services can be tangible or intangible. 
Examples of ``like'' tangible articles could include jackets and coats; 
examples of ``like'' intangible articles could include programming 
software code and operating software code. Examples of ``like'' 
services could include payroll services and billing services. Examples 
of ``directly competitive'' articles could include corrective 
eyeglasses and corrective contact lens. Examples of ``directly 
competitive'' services could include physical fitness personal trainer 
services and virtual fitness training programs available online. A 
component part is neither like nor directly competitive with the 
article into which it is incorporated because the component part is a 
subunit of the article.
    Office of Trade Adjustment Assistance or OTAA--This NPRM adds this 
term and defines it for the first time as authorized by sec. 249A of 
the Act. It refers to the name of the organization within the U.S. 
Department of Labor, Employment Training Administration with 
responsibility for administering the TAA Program, or OTAA's successor 
organization.
    One-stop delivery system--This NPRM adds this term and defines it 
for the first time. It refers to the American Job Center network, which 
brings together workforce development, education, and other human 
resource services in a seamless, customer-focused

[[Page 60159]]

service delivery network that enhances access to partner programs' 
services and improves long-term employment outcomes for individuals 
receiving assistance. This includes coordination of services to 
eligible dislocated workers as defined under sec. 3(15) of WIOA. States 
operate the one-stop delivery system consistent with the requirements 
of WIOA and its implementing regulations. WIOA sec. 121(b)(1)(B)(vii) 
requires the TAA Program to be a partner in the one-stop delivery 
system.
    On-the-job training or OJT--This NPRM modifies the definition of 
this term from sec. 247(15) of the Act and 20 CFR 617.3(bb). It adds 
that the training is work-based and performed under contract with an 
employer. The term ``AAW'' replaces ``individual.''
    Partial separation or partially separated--This NPRM modifies the 
definition of this term from 20 CFR 617.3(cc), 29 CFR 90.2, and sec. 
247(6) of the Act. The definition of this term in 29 CFR 90.2 applies 
to separations ``at the firm or appropriate subdivision thereof,'' 
referring to workers who have not yet been certified as eligible to 
apply for the TAA Program. After being determined eligible to apply for 
the TAA Program, the AAW's ``partial separation'' is referred to in 20 
CFR 617.3(cc) as being ``in adversely affected employment,'' the term 
used in sec. 247(6)(A) and (B) of the Act. The proposed definition 
retains the statutory criteria of ``partial separation'' for both 
workers on whose behalf a petition has been filed and workers who are 
covered by a certification, and offers different definitions for usage 
under proposed subpart B and the other proposed subparts of this NPRM. 
The proposed definition also retains the provision in 20 CFR 617.3(cc) 
that, in order for the AAW to be counted as partially separated from 
adversely affected employment, the requisite reduction of hours and 
wages must have occurred. However, the proposed definition simplifies 
the language about when the separation must occur by substituting the 
phrase ``during the certification period'' for ``during a week ending 
on or after the impact date specified in the certification under which 
an adversely affected worker is covered'' (see proposed definition of 
``certification period'').
    Period of duty--This NPRM adds this term and defines it for the 
first time. It is from sec. 233(i)(2) of the Act, added by TGAAA, and 
relates to service performed in the reserve components of the Armed 
Services of the United States.
    Petition date--This NPRM adds the term and defines it for the first 
time. It means the date a petition form is signed by the petitioner(s). 
This change reflects the common, everyday usage of this phrase. When 
petitioners sign on different dates, the petition date is the latest of 
those dates. This NPRM also removes the defined term ``date of 
petition'' from 29 CFR 90.2.
    Prerequisite education or prerequisite coursework or prerequisite 
training--This NPRM adds these terms and defines them for the first 
time. They refer to approvable training under sec. 236(a)(5)(E) of the 
Act. For example, a trainee enrolled in an engineering program might 
have to complete courses in mathematics before registering for 
engineering courses. Similarly, some nursing programs may require 
additional math coursework beyond the trainee's high school classes 
before starting the nursing program curriculum.
    Program of remedial education or remedial education or remedial 
training--This NPRM adds these terms and defines them for the first 
time. They refer to approvable training under sec. 236(a)(5)(D) of the 
Act and are used to refer to education designed to improve trade-
affected workers' basic knowledge.
    Qualifying separation--This NPRM modifies the definition of this 
term from 20 CFR 617.3(t)(2). The Department is proposing to amend the 
definition of ``qualifying separation'' to include partially separated 
workers. The definition at 20 CFR 617.3(t)(2) excludes partially 
separated workers and is based on an August 23, 1988, amendment to sec. 
233(a)(2) of the Act, which added a 104-week limitation period for the 
receipt of Basic TRA with respect to totally separated workers. See 
Public Law 100-418, sec. 1425(a). The Department has reviewed the Act 
for this NPRM and has concluded that under a plain reading of the Act, 
partially separated workers are otherwise eligible for TRA benefits if 
the eligibility requirements in sec. 231 of the Act are met. The 
proposed definition covers qualifying separation for the purposes of 
assisting States in determining an AAW's eligibility to receive Basic 
TRA; the 26-week period for enrollment in approved training; and the 
Basic TRA eligibility period. The first qualifying separation is used 
for purposes of determining a worker's eligibility for Basic TRA and 
the weekly and maximum amounts of Basic TRA. This is discussed further 
in proposed subpart G.
    Reemployment Trade Adjustment Assistance or RTAA--This NPRM adds 
these terms and defines them for the first time to refer to the 
employment-based benefit described in sec. 246 of the Act. RTAA was 
established with TGAAA and continued under TAAEA and TAARA 2015.
    Regional Administrator--This NPRM modifies the definition of this 
term from 20 CFR 617.3(dd), by reversing the order of the terms ``U.S. 
Department of Labor'' and ``Employment and Training Administration.''
    Remuneration--This NPRM removes this defined term from 20 CFR 
617.3(ee) because it does not appear in this NPRM.
    Secretary--This NPRM incorporates this defined term from 20 CFR 
617.3(ff) and 29 CFR 90.2 without change.
    Separation date--This NPRM adds this term and defines it for the 
first time. It replaces the term ``date of separation'' and is 
substantially the same as in 20 CFR 617.3(l), but rephrases the 
employer-authorized leave language slightly for clarity, adds a 
reference to leave for military service as provided in sec. 
231(a)(2)(D) of the Act, and uses the word ``worker'' instead of 
``individual.'' This NPRM also removes the defined term ``date of 
separation'' from 20 CFR 617.3(l).
    Service--This NPRM adds this term and defines it for the first time 
to explain how the term is used in sec. 222 of the Act as part of group 
eligibility requirements. This proposed definition has been developed 
from case law and current practice. A service is the work performed by 
a worker for a service firm or appropriate subdivision. The work of a 
service firm is measured in units of time, labor, and tasks completed. 
Services may include the incidental production of an article, such as a 
license, ticket, certificate, permit, model, drawing, or prototype. For 
example, a travel agent provides travel-planning services, but may send 
customers a ticket or voucher. An online education company provides 
education services, but may send students a textbook. Where the revenue 
of the firm or its appropriate subdivision is generated from the sale 
of a service, the firm or subdivision is engaged in the supply of a 
service.
    Significant number or proportion of the workers--This NPRM modifies 
the definition of this term from 29 CFR 90.2 to reflect that both 
partially and totally separated workers, as well as workers threatened 
with total or partial separation, are counted towards the number and 
proportion of workers affected, as established in sec. 222(a)(1) and 
(b)(1) of the Act. The phrases ``[i]n most cases'' and ``would 
ordinarily have to be affected'' have also been omitted from the 
definition.
    Staffed worker--This NPRM adds this term and defines it for the 
first time under the authority of sec. 223(e) of the

[[Page 60160]]

Act, which allows the Department to establish standards for 
investigations of petitions filed under sec. 221 of the Act and to 
develop criteria for making determinations under sec. 223(a) of the 
Act. Previously referred to as leased workers, staffed workers are more 
fully addressed in proposed subpart B.
    State--This NPRM modifies the definition of this term from 20 CFR 
617.3(hh), by replacing the phrase ``such Commonwealth'' to ``the 
Commonwealth of Puerto Rico'' for clarity.
    State agency--This NPRM removes this defined term from 20 CFR 
617.3(ii). This is a commonly understood term. The term is defined at 
sec. 247(8) of the Act.
    State law--This NPRM modifies the definition of this term from 20 
CFR 617.3(jj) and sec. 247(9) of the Act. The reference to the Internal 
Revenue Code has been updated and additional language is added to 
include other State laws that may be explicitly mentioned in this 
proposed part 618.
    Successor-in-interest--This NPRM adds this term and defines it for 
the first time to provide clarity to States when there are mergers and 
acquisitions, name changes, bankruptcy proceedings, and other actions 
that may change the name of the firm under which a worker's wages are 
reported to the State or by whom a termination notice or threatened 
status letter is issued. There is a test used by the Department in 
determining whether there is a successor-in-interest when the question 
arises as part of a determination as to the scope of the worker group 
under a certification. In determining whether or not there is a 
successor-in-interest, the State must determine whether most or all of 
the following conditions are met: There is continuity in business 
operations; there is continuity in location; there is continuity in the 
workforce; there is continuity in supervisory personnel; the same jobs 
exist under similar conditions; there is continuity in machinery, 
equipment, and process; there is continuity in product/service. If the 
State's investigation finds a successor-in-interest relationship exists 
and that could result in a denial of any TAA benefits, except RTAA, the 
State should file a new petition requesting an amendment to a 
certification in accordance with proposed Sec.  618.250. The Department 
specifically encourages comments on this topic.
    Suitable employment--This NPRM modifies the definition of this term 
from 20 CFR 617.22(a)(1)(i) and sec. 236(e) of the Act. Specifically, 
the Act uses the term suitable employment in sec. 236(a)(1)(A) (the 
first criterion for the approval of training), providing for approval 
where ``there is no suitable employment . . . available for an 
adversely affected worker.'' The Department has concluded that suitable 
employment, to be considered such, excludes part-time, temporary, or 
threatened employment. Thus, the proposed definition adds this caveat. 
Additionally, unlike 20 CFR 617.22(a)(1)(i), the NPRM does not restrict 
applicability of the definition to sec. 236(a)(1)(A) of the Act.
    Suitable work--This NPRM removes this defined term from 20 CFR 
617.3(kk)(1) and (2) and defines it within proposed subpart G, rather 
than in this proposed subpart A.
    Supplier--This NPRM adds this term and defines it for the first 
time. It is derived from sec. 222(c)(4) of the Act. The Department 
proposes to add this term and definition in response to statutory 
changes to group eligibility requirements. The Department has 
supplemented the statutory definition with a statement explaining that 
there is no direct supply where an intervening entity receives the 
component parts for articles, aside from a delivery or bailment 
situation, or in the case of a service supplier, if an intervening 
entity performs the service. The Department's interpretation is based 
on case law and current practice.
    Supportive services--This NPRM adds this term and defines it for 
the first time. It is derived from sec. 235(8) of the Act and is used 
to refer to such services as are needed to enable a trade-affected 
worker to participate in activities authorized under the Act. 
Additional information on supportive services is in the WIOA 
regulations at 20 CFR 680.900.
    Threatened to become totally or partially separated--This NPRM adds 
this term and defines it for the first time. It is similar to the term 
``threatened to begin'' in 29 CFR 90.2 and is used in the context of 
petition investigations. The proposed definition describes that workers 
in a firm or appropriate subdivision can be threatened to become 
totally or partially separated when there is evidence of intent to 
separate workers. Evidence may include a Worker Adjustment and 
Retraining Notice (WARN) Act notification, a letter to a union official 
from the company, a memo to the employees from the company, or other 
forms of notice. Similar to 29 CFR 90.2, the phrase applies when it is 
reasonable to anticipate that separations are imminent.
    Threatened to begin--This NPRM incorporates this defined term from 
29 CFR 90.2 without change. It is used in conjunction with the proposed 
defined term ``threatened to become totally or partially separated,'' 
and is the date(s) on which the applicable event(s) occurred.
    Total separation or totally separated--This NPRM modifies the 
definition of these terms from 20 CFR 617.3(ll) and 29 CFR 90.2 and 
specifies the difference between how the terms are applied to a worker 
for purposes of investigating a petition and determining group 
eligibility, in accordance with proposed subpart B, and how they are 
applied to an AAW otherwise.
    Trade Adjustment Assistance for Workers or Trade Adjustment 
Assistance or TAA Program--This NPRM modifies these defined terms from 
20 CFR 617.3(mm) to state that the programs included as part of the TAA 
Program include RTAA and also to refer generally to the provision of 
benefits and services to trade-affected workers as described in this 
NPRM.
    Trade-affected worker--This NPRM adds this term and defines it for 
the first time to simplify the reference when the NPRM applies to both 
categories of workers: ``adversely affected workers'' and ``adversely 
affected incumbent workers.''
    Trade Readjustment Allowance or TRA--This NPRM modifies the 
definition of these terms from 20 CFR 617.3(nn) and (m)(1) and (2) to 
reference the administration of the TRA benefit in proposed subpart G 
and includes the three categories of TRA available under TAARA 2015: 
Basic, Additional, and Completion. This revised definition does not 
define the three categories of TRA, but provides a cross-reference to 
their definitions in proposed subpart G.
    Unemployment Insurance or UI--This NPRM modifies the definition of 
these terms from 20 CFR 617.3(oo), to use the word ``worker'' instead 
of ``individual.'' The terms ``regular compensation,'' ``additional 
compensation,'' and ``extended compensation'' are the same as the 
definitions in the Federal-State Extended Unemployment Compensation Act 
of 1970 (EUCA) (26. U.S.C. 3304 note), except that the word ``worker'' 
has been substituted for the word ``individual,'' and the term 
``Federal supplemental compensation'' has been updated and moved within 
the definition of ``extended compensation.''
    Value-added production processes or services--This NPRM adds this 
term and defines it for the first time. It is derived from sec. 
222(c)(3)(B) of the Act and used in reference to the petition 
investigation process and identifying adversely affected secondary 
workers

[[Page 60161]]

who perform work for a firm that is a downstream producer.
    Wages--This NPRM incorporates this defined term from 20 CFR 
617.3(pp) without change. For purposes of proposed subpart G, this 
includes wages paid to a worker by a successor-in-interest.
    Wagner-Peyser Act--This NPRM adds this term and defines it for the 
first time to refer to the Wagner-Peyser Act, as amended (29 U.S.C. 49 
et seq.). It references a program that is a required WIOA partner and 
may provide assistance to TAA Program participants.
    Week--This NPRM incorporates this defined term from 20 CFR 
617.3(qq) and sec. 247(12) of the Act without change.
    Week of unemployment--This NPRM modifies the definition of this 
term from 20 CFR 617.3(rr). The phrase ``Federal unemployment 
compensation law'' has been changed to ``Federal Unemployment Insurance 
law'' to mirror the definition in sec. 247(13) of the Act.
    Worker group--This NPRM adds this term and defines it for the first 
time. It defines who may comprise a group of workers certified under 
proposed subpart B as eligible to apply for TAA Program benefits and 
services. The proposed definition includes teleworkers and staffed 
workers. The proposed definition is derived from sec. 223(a) of the 
Act, which refers to a certification of eligibility to apply for 
assistance as ``covering workers in any group.'' The term is 
differentiated in this NPRM from the term ``group of workers'' (defined 
in this proposed subpart A), which refers to workers who file a 
petition for certification under sec. 221(a)(1)(A) of the Act.
    Workforce Innovation and Opportunity Act or WIOA--This NPRM adds 
this term and defines it for the first time to refer to the Workforce 
Innovation and Opportunity Act (Pub. L. 113-128), as amended, under 
which the Department provides funding for States to carry out 
employment and training activities for adult, dislocated worker, and 
for youth activities in conjunction with local workforce development 
areas. The TAA Program is a mandatory one-stop partner under WIOA.

B. Subpart B--Petitions, Investigations, and Determinations

    The purpose of subpart B is to set forth regulations required by 
sec. 248 of the Act, directing the Department to prescribe regulations 
to implement the provisions for rendering group determinations on 
adjustment assistance for trade-affected workers. This subpart will 
provide for the prompt and effective investigation of petitions for 
certification of eligibility to apply for adjustment assistance.
    Proposed subpart B addresses secs. 221, 222, 223, and 224 of the 
Act and codifies and relocates 29 CFR part 90 by incorporating it into 
part 618. The proposed subpart makes several changes to update those 
regulations to reflect statutory changes; current procedures for filing 
petitions, conducting investigations, and issuing determinations of TAA 
Program eligibility; and requires exhaustion of administrative 
remedies, specifically use of the reconsideration process, prior to 
judicial review. The Department proposes to relocate most of the 
definitions in 29 CFR 90.2 to subpart A of part 618 for clarity and 
consistency.
Section 618.200 Scope
    Proposed Sec.  618.200 provides the same general scope for subpart 
B as 29 CFR part 90 but expounds upon the description of the scope 
given in 29 CFR 90.1.
Section 618.205 Petitions
    Proposed Sec.  618.205 updates the provision related to petitions 
at 29 CFR 90.11 and also makes the following changes. Proposed 
paragraph (a) updates who may file a petition, based on changes to sec. 
221(a) of the Act. It also changes Sec.  90.11(a) to reduce the number 
of workers who must sign the petition from three to two. The Act does 
not specify a minimum number of workers that make up a ``group of 
workers.'' Therefore, the Department interprets this to require that a 
group of workers be a minimum of two workers, instead of the current 
requirement of three workers. Proposed paragraph (b) combines and 
modifies 29 CFR 90.11(b) and (c) regarding the form and content of 
petitions. It requires petitioners to provide information the 
Department needs to begin its investigation. Absent this required 
information, a petition will not be valid. The required information 
remains substantially the same with the exception of proposing to 
remove the requirements in Sec.  90.11(c)(6) and (7). The requirements 
in Sec.  90.11(c)(6) and (7) are not worded in such a way to elicit 
information in keeping with all of the statutory requirements for group 
eligibility. Primarily, the requirements in 29 CFR 90.11(c)(6) and (7) 
do not apply to a petition filed identifying a shift. Therefore, the 
Department proposes to remove and replace them with proposed paragraph 
(b)(8), which requires that the petitioner explain why it is believed 
that worker separations that have occurred or may occur at the worker's 
firm are due to foreign trade impacts, or provide a reason that an 
amendment to an existing and active certification is being requested. 
Proposed paragraph (b)(3) also adds a requirement to provide the 
address of the location(s) where the group of workers who have been 
totally or partially separated or threatened with separation report to 
work (for a teleworker, the address of the location to which they 
report) to assist the investigator in identifying the group of workers.
    Proposed paragraph (c) is new and provides that supplemental 
information, while not required when the petition is filed, may be 
provided with the initial filing to assist the Department in rendering 
a timely decision.
    Proposed paragraph (d) updates 29 CFR 90.11(c) and maintains the 
methods of filing, allowing petition submissions by fax, email, and 
mail, but strongly encourages that all petitions be filed 
electronically with the Department through the Department's website. 
Due to built-in quality control measures, online filing ensures that 
petitions are complete when filed, which improves the overall 
processing time of all petitions by minimizing the need for the 
Department to return incomplete petitions. Individuals requiring 
assistance with online filing may contact their nearest one-stop center 
or their State's rapid response unit.
    Proposed paragraph (e) is a new provision that implements sec. 224 
of the Act, requiring the Department to take specific actions when the 
ITC issues an affirmative determination on the investigation under sec. 
202 or 421 of the Act, or issues an affirmative final determination 
under sec. 705 or 735 of the Tariff Act of 1930. This language follows 
the statutory requirements.
    Proposed paragraph (f) revises 29 CFR 90.12 and provides the 
Department's procedures for acceptance of a petition. Upon receipt of a 
petition, the Department will make an initial determination of 
validity, which will be limited to checking whether all required 
petition elements are included. Once a petition has been determined to 
be valid, the Department will begin an investigation.
    Proposed paragraph (g) is new and provides that if the Department 
receives multiple petitions for the same group of workers, the petition 
date from the first petition filed will be used. This reflects current 
practice and ensures fairness to workers.
    Proposed paragraph (h) was previously part of 29 CFR 90.12 and 
provides that the Department will publish a notice of the petition in 
the Federal Register and on the

[[Page 60162]]

Department's website announcing the initiation of an investigation into 
all valid petitions filed.
    Proposed paragraph (i) modifies 29 CFR 90.32 and reinforces that 
petitions and any attachments included are public documents. As such, 
the Department will publish redacted versions of petitions on the 
Department's website. This will remove the need for individuals to file 
a FOIA request for copies of posted petitions. Lastly, proposed 
paragraph (j) is a new provision and is part of the States' 
responsibilities under sec. 239 of the Act to ensure that petitions 
that have not been filed with the Department, as required under the 
Act, are identified and filed with the Department. The proposed 
language requires that if a petition is filed with the State, upon 
receipt of that petition, the State must ensure the Department has 
received a copy of the petition or the State must forward the petition 
to the Department.
Section 618.210 Investigation
    Proposed Sec.  618.210 describes the investigation process, 
authorized under secs. 221 and 222 of the Act, and updates the language 
from 29 CFR part 90 to reflect current procedures and practices in the 
areas of timing; period of investigation; investigative processes; 
protection of confidential business information; termination of an 
investigation; the investigative record; and site visits. Proposed 
paragraph (a) reiterates the requirement in proposed Sec.  618.205(f) 
that before an investigation can begin, the Department must determine 
that the petition is valid. Proposed paragraph (b) expands on 29 CFR 
90.12 and defines the period of investigation to be used during 
investigations under this subpart B. The statutory timeframe for 
completing the investigation begins once a petition is filed with the 
Department and determined to be valid. Proposed paragraph (c) is new 
and explains the steps the investigator may take in order to render a 
determination regarding whether to certify a petition. It also 
identifies commonly used sources of information, providing added 
detail, structure, and transparency to stakeholders about the 
investigation process.
    Proposed paragraph (d) derives from sec. 222(d)(3)(C) of the Act 
and updates the language from 29 CFR 90.32 to reflect the availability 
of information and protection of confidential business information 
received during the investigation process. This provision reiterates 
that the Department will not disclose confidential business information 
without the consent of the submitting firm or a court order.
    Paragraph (e) is new and describes the conditions under which the 
Department may terminate an investigation. If an investigation is 
terminated, the Department will inform the petitioner and publish a 
notice in the Federal Register and on the Department's website. This 
proposed paragraph also provides that the Department may retain the 
original impact date for terminated petitions if the petition is later 
reinstated or a valid petition is filed for the same group of workers. 
A terminated investigation is subject to reconsideration and judicial 
review (see proposed Sec.  618.245).
    Proposed paragraph (f) is new and describes the contents of the 
investigative record of a determination. The investigative record will 
not include documents covered by attorney work-product protection, such 
as documents prepared in anticipation of litigation; documents covered 
by the attorney-client privilege, such as confidential communications 
with counsel seeking legal advice; documents covered by the 
deliberative process privilege, such as early drafts of determination 
documents; and other information otherwise exempt from disclosure. 
Proposed paragraph (g) expounds upon 29 CFR 90.12 and authorizes the 
use of site visits, previously called field visits, during the 
investigation to collect or validate information furnished by 
petitioners or to gather other relevant information.
Section 618.215 Public Hearings
    Proposed Sec.  618.215 discusses the provision governing public 
hearings and, other than updating regulatory citations, there are only 
a few changes from 29 CFR 90.13. These changes are as follows: Proposed 
paragraph (a)(3) is new and has been added to assist the parties in 
clearly communicating the issues to be heard; proposed paragraph (c) 
substitutes that a notice of public hearings will be published in the 
Federal Register within ``a reasonable period of time'' rather than at 
least 7 calendar days before the scheduled hearing, because the 7-day 
requirement may delay hearings; and proposed paragraph (j) revises 29 
CFR 90.13(j) to allow for transcripts and recordings of hearings in 
place of being stenographically recorded.
Section 618.220 Use of Subpoena
    Proposed Sec.  618.220 explains the use of subpoena authority 
available to the Administrator under sec. 222(d)(3)(B) of the Act. It 
modifies 29 CFR 90.14 by providing factors the Department will use in 
determining the need for issuance of a subpoena during the 
investigation process. States are also provided subpoena authority in 
this NPRM, as discussed in subpart H. Proposed paragraph (a) is 
unchanged from 29 CFR 90.14(a). Proposed paragraph (b) is new and 
describes five factors the Department will consider when determining 
whether to issue a subpoena. Proposed paragraph (c) is unchanged from 
29 CFR 90.14(c). Proposed paragraph (d) is substantially the same as 29 
CFR 90.14(d), but includes a new reference to Rule 5(b) of the Federal 
Rules of Civil Procedure, which describes service and filing procedures 
of court pleadings and other papers. Proposed paragraph (e) is 
substantially the same as 29 CFR 90.14(b).
Section 618.225 Criteria for Certification of a Group of Workers
    Proposed Sec.  618.225 substantially updates 29 CFR 90.16(b) to 
describe the criteria the Department uses to certify a group of 
workers, which has expanded significantly under sec. 222 of the Act. It 
also identifies factors under consideration in determining whether a 
criterion is met. The revised language provides transparency on how 
investigations are conducted, the importance of information collected, 
and how the information is used. The proposed new provisions, listed 
below, reflect Congressional intent, existing Departmental practices 
and, in some instances, thresholds for select criteria.
    Proposed paragraph (a) covers increased imports and provides the 
criteria for certification of a group of workers under sec. 222(a) of 
the Act. While 29 CFR 90.16(b) covered certifications based on 
increased imports, the modifications to the provision are significant 
enough to deem this a new provision. Proposed paragraph (a)(1) 
describes five possible bases for an increased imports certification. 
Proposed paragraph (a)(2) describes the four criteria that must be met 
in order to issue a certification under increased imports.
    Proposed paragraph (b) covers shift in production of articles and 
supply of services by the group of workers' firm to another country and 
provides the criteria for certification of a group of workers under 
sec. 222(a) of the Act. Proposed paragraph (b)(1) describes the two 
possible bases of a shift in production certification. Proposed 
paragraph (b)(2) describes the three criteria that must be met in order 
to issue a certification under a shift.
    Proposed paragraph (c) covers foreign acquisition and also provides 
the

[[Page 60163]]

criteria for certification of a group of workers under sec. 222(a) of 
the Act. The introductory text to proposed paragraph (c) describes the 
two possible bases for a foreign acquisition certification. Proposed 
paragraphs (c)(1) through (3) describe the three criteria that must be 
met in order to issue a certification under foreign acquisition.
    Proposed paragraph (d) covers the certification of a group of 
workers as a supplier under sec. 222(a) of the Act. Proposed paragraphs 
(d)(1) through (5) describe the five criteria that must be met in order 
to issue a certification for a supplier.
    Proposed paragraph (e) covers the certification of a group of 
workers as a downstream producer under sec. 222(b) of the Act. Proposed 
paragraphs (e)(1) through (5) describe the five criteria that must be 
met in order to issue a certification as a downstream producer.
    Proposed Paragraph (f) implements sec. 222(e) of the Act related to 
a group of workers in a firm or firms named as a member of a domestic 
industry for an affirmative determination issued by the ITC. Proposed 
paragraphs (f)(1) through (3) describe the three criteria that must be 
met in order to issue a certification based on an affirmative 
determination issued by the ITC.
    Proposed paragraph (g) is new and describes the Department's 
longstanding interpretation of the 1-year period prior to the petition 
date for production and sales declines.
    Proposed paragraph (h) is new. The Department is making explicit an 
eligibility requirement contained in sec. 222(c)(2) of the Act, which 
states that firms, or appropriate subdivisions thereof, that engage in 
exploration or drilling for oil and natural gas must be considered to 
be engaged in the production of oil or natural gas. However, the 
Department will not interpret this provision to prevent workers from 
meeting criteria set forth in other portions of the Act. A petition 
covering a group of workers providing oil and gas services may be 
investigated as both a firm engaged in the supply of exploration or 
drilling services and a firm engaged in the production of oil or 
natural gas. This means the Department may conduct a parallel 
investigation to determine whether the petitioning group of workers 
meets any criteria for certification of worker groups set forth in 
proposed Sec.  618.225.
    Proposed paragraph (i) is new and provides that staffed workers, 
working on or off-site, will be classified as part of the worker group 
of the firm. The Department will specify in the determination document 
that all members of the affected worker group include teleworkers and 
staffed workers, but will not list specific leasing companies or 
temporary staffing entities. The Department will continue to collect 
information from the subject firm in order to establish the leasing or 
temporary staffing entity or entities over which the workers' firm has 
operational control. The Department will provide contact information to 
States for the aforementioned leasing or temporary staffing entities to 
assist them in notifying workers. States that discover additional 
leasing or temporary staffing entities employing staffed workers who 
are members of a certified worker group may serve those workers without 
the delay of filing a new petition or requesting an amendment to the 
certification. This change in procedure will enhance service delivery 
to workers. Although every case is decided on its own merits, proposed 
paragraphs (i)(1) through (9) list the control questions used to 
evaluate operational control and have been added to ensure uniformity 
in the Department's decisions. The Department is also considering an 
alternative approach to this provision, changing its previous 
interpretation and not including staffed workers as part of the worker 
group of the firm. It would instead require staffed workers to file a 
separate petition to seek certification as their own worker group. The 
Department seeks comments on both proposed paragraph (i) and the 
alternative approach the Department is considering.
    Proposed paragraph (j) codifies administrative guidance issued as 
part of the TAAEA operating instructions. This section explains that 
teleworkers, also known as remote workers, may be part of a certified 
worker group without being specifically referenced in a certification 
document, insofar as their position is affected by the same trade 
effects as other workers in the worker group. Teleworkers should not be 
excluded simply because they are teleworkers. Rather, they should be 
considered part of the worker group when they otherwise fit the 
description.
    Proposed paragraph (k) is new and provides that workers employed by 
a firm that is a successor-in-interest are members of a worker group 
even if they are not specifically mentioned within the determination 
document issued under proposed Sec.  618.235.
Section 618.230 Evidence
    Proposed Sec.  618.230 is new and provides a description of the 
types of evidence to be gathered and used in evaluating the criteria 
for certification during the investigation process under Sec.  618.210. 
Section 223(e) of the Act requires the Department to establish 
standards, including data requirements, for investigations under sec. 
221 and for making determinations under sec. 223(a). Section 222(d) of 
the Act authorizes the Department to collect such information as 
necessary to make a determination. There is no similar provision in 29 
CFR part 90 as this provision originated with TGAAA.
    Proposed paragraph (a) provides that the Department will seek to 
verify all information provided in support of a criteria as accurate, 
complete, and current as part of considering the evidence. Proposed 
paragraph (b) provides that evidence may be accepted from sources 
including, but not limited to, petitioners, company officials, current 
and former workers of the firm, customers of the firm, trade 
associations, union representatives, Federal agencies, and reliable 
public sources such as State agencies and academic institutions. 
Another example of a party who may produce evidence is a party who 
submits information in response to the publication of the petition in 
the Federal Register or the Department's website. Proposed paragraph 
(c) provides that the Department may share information submitted in 
support of a petition, for verification purposes, with any entity as 
deemed appropriate for completing the investigation. For example, the 
Department may share a media article submitted by the petitioner in 
support of the petition with the company official to verify its 
accuracy.
Section 618.235 Determinations
    Proposed Sec.  618.235 clarifies the process the certifying officer 
will use for issuing a determination based on the findings of the 
investigation as set forth in proposed Sec.  618.230. This is similar 
to 29 CFR 90.16, but reorders it, condenses the description of types of 
determinations into four categories, and adds a discussion of the oil 
and gas provision at sec. 222(c)(2) of the Act. The NPRM removes the 
reference in 29 CFR 90.16(a) to the issuance of a determination within 
60 days. The statutory period is 40 days, as provided in sec. 223(a) of 
the Act. Proposed paragraph (a) describes the affirmative determination 
or certification category of determinations. It contains predominantly 
the same information provided in 29 CFR 90.16, but adds a discussion of 
the impact date and coverage of workers under the petition. Proposed 
paragraph (b) covers a negative determination or denial and derives 
from 29 CFR 90.16(f) but also incorporates additional language to 
explain the Department's process more

[[Page 60164]]

fully and to align it with proposed paragraph (a). Proposed paragraph 
(c) covers determinations and derives from 29 CFR 90.16(d). Excluded is 
language that has been incorporated from 29 CFR 90.16 into proposed 
paragraphs (a) and (b).
    Proposed paragraph (d) covers amended determinations and codifies 
the practice of amending a certification to limit or expand a worker 
group or other elements of a certification, which aligns with 
longstanding practice and administrative guidance. Proposed paragraph 
(d) also states the Department's position that it reserves the right to 
begin reconsideration proceedings of a denial without a request for 
reconsideration being filed. Proposed Sec.  618.250 of this subpart B 
also discusses this issue. In addition, this paragraph states that a 
termination will not take effect until the period in which to request 
reconsideration has elapsed.
Section 618.240 Termination of Certification
    Proposed Sec.  618.240 discusses the termination of certifications 
under sec. 223(d) of the Act, updating the regulations to reflect 
current practice and procedures through minor revisions to 29 CFR 
90.17. Any party eligible under proposed Sec.  618.225 to submit a 
petition may file for a reconsideration of a terminated or partially 
terminated certification. A decision to uphold the termination of a 
certification after reconsideration is a final determination by the 
Department and subject to judicial appeal.
    Proposed paragraph (a) restates sec. 222(d) of the Act and is 
unchanged from 29 CFR 90.17(a). Proposed paragraph (a)(1) is new and 
describes that unless a termination is issued under proposed Sec.  
618.240, all certifications under proposed Sec.  618.235(a)(1)(ii) are 
considered terminated the day following the expiration date of the 
certification. And as provided in the definition of the term 
``certification period'' in proposed subpart A, a certification expires 
2 years after the certification date. Proposed paragraph (a)(2) is new 
and provides that all ITC certifications, described at Sec.  
618.225(f), are considered terminated the day following the expiration 
date of the certification, which is 1 year following the date of 
publication of the determination in the Federal Register. Proposed 
paragraphs (a)(1) and (2) have been added to make clear that the 
expiration date of a certification serves the same purpose as a notice 
of termination as described further in proposed paragraph (e) of this 
section. The expiration date cannot be extended, however, so if it is 
known that further separations or threat of separations will continue 
to exist after that date, a new petition must be filed.
    Proposed paragraph (b) includes the notice language from 29 CFR 
90.17(a) and updates it to include to whom the notices will be made. It 
also requires the State to notify the workers in the worker group of 
the initiation of the investigation. Proposed paragraph (c) updates 29 
CFR 90.17(b) and describes how interested parties may comment on a 
notice of the initiation of an investigation to terminate a 
certification. Proposed paragraph (d) is new and describes the 
information that will be considered in determining whether to terminate 
a certification. It also provides that the period of investigation will 
remain the same as the period of investigation for the original 
certification.
    Proposed paragraph (e) combines 29 CFR 90.17(d) and (e) to provide 
details on the process of issuing a notice of termination or notice of 
partial termination, as well as detailing to whom the notices will be 
issued. It requires States to notify the worker group of the 
termination or partial termination. It also states that a termination 
will not take effect until the period in which a party may request 
reconsideration has elapsed. Proposed paragraph (f) updates 29 CFR 
90.17(f) and provides detail on the process of issuing a notice of 
continuation of certification, as well as detailing to whom the notice 
will be issued. It requires States to notify the worker group of the 
continuation of certification. Proposed paragraph (g) is new and allows 
for reconsideration of a determination of termination or partial 
termination of a certification. It refers parties to Sec.  618.245.
Section 618.245 Reconsideration of Termination of an Investigation, 
Denial, or Termination or Partial Termination of Certification
    Proposed Sec.  618.245 contains the process for reconsiderations of 
determinations on petitions. There are several changes from 29 CFR 
90.18, enumerated below, to provide additional clarifications and to 
enhance efficiency of investigations. The Department encourages 
comments addressing the impact of this revised process. Proposed 
paragraph (a) updates 29 CFR 90.18(a) and (b) to clarify that the 
reconsideration process allows for a party to apply to the Department 
to reconsider the termination of an investigation, as described in 
proposed Sec.  618.210(e); a negative determination issued under 
proposed Sec.  618.235(b); or a termination or partial termination of 
certification issued under proposed Sec.  618.240. It also lists the 
information required as part of the application in order for it to be 
complete and valid. Proposed paragraph (b) aligns with the last 
sentence in 29 CFR 90.18 (a) and maintains the requirement that all 
applications must be in writing and must be filed no later than 30 days 
after the notice of the termination of the investigation, negative 
determination, or termination or partial termination of a certification 
has been published in the Federal Register. Proposed paragraph (c) is 
new and addresses the process for reviewing and returning an incomplete 
application for reconsideration. The refiling of the complete 
application must occur within the 30-day period identified in proposed 
paragraph (b) or within 5 days of receipt if the application is 
returned less than 5 days prior to the end of that period.
    Proposed paragraph (d) addresses the publication of a notice in the 
Federal Register and on the Department's website of the application and 
the initiation of an investigation on reconsideration. The Department 
proposes to eliminate 29 CFR 90.18(c), which required a determination 
to accept the application for reconsideration before conducting an 
investigation. The Department concluded that eliminating the step 
requiring the certifying officer to make and issue a determination on 
whether or not to initiate a reconsideration will decrease time and 
burden and simplify the process. The Department will initiate an 
investigation on all complete reconsideration applications. Proposed 
paragraph (e) is substantially the same as 29 CFR 90.18(f). Proposed 
paragraph (f) is new and describes the procedures for investigation on 
reconsideration. It also provides that the period of investigation will 
remain the same as the period of investigation for the original 
certification. Proposed paragraph (g) combines and updates 29 CFR 
90.18(h) and (i). It also includes the requirement of the State to 
notify a worker group of a certification in accordance with proposed 
Sec.  618.820 in subpart H. Proposed paragraph (g) also states that 
should a reconsideration investigation extend past 60 days, the 
Department will contact the applicant for a directive to continue or 
terminate the investigation. If the applicant directs the Department to 
continue its investigation, the Department will issue a notice of 
determination on reconsideration, which will be the Department's final 
determination. If the applicant directs the Department to

[[Page 60165]]

terminate the investigation, the Department will issue a notice of 
termination of investigation, which will render the initial 
determination the Department's final determination.
Section 618.250 Amendments of Certifications
    Proposed Sec.  618.250 provides the process for seeking amendments 
to certifications. This proposed section is new, though in practice the 
Department has been issuing amendments for many years. Section 223 of 
the Act establishes that a determination be issued for ``any group'' 
that meets the eligibility criteria of sec. 222 of the Act. The 
Department interprets that provision to mean that, should new or 
supplemental information support a clarification of the certified 
worker group, the Department may issue an amended certification under 
the same petition number and publish the amendment in the Federal 
Register and post it on the Department's website. Proposed paragraph 
(a) describes the types of amendments and explains that amendments must 
not extend the impact date as that would go beyond the period covered 
by the certification itself. Common reasons for amendments include 
changes to the ownership of a successor firm, correcting any technical 
errors made, and clarifying the worker group. Clarifying the worker 
group does not include adding teleworkers or staffed workers, as they 
are considered part of the worker group.
    Proposed paragraph (b) includes a new requirement that amendments 
be requested through the regular petition process, which is a change to 
current practice. This change will help formalize the amendment process 
and ensure that all individuals are aware of and able to use the 
process. Proposed paragraph (c) requires the Department to publish a 
notice of the amendment in the Federal Register and requires the States 
to notify any additional certified trade-affected workers impacted by 
the amendment.
Section 618.255 Judicial Review of Determinations
    Proposed Sec.  618.255 explains the process for judicial review of 
determinations issued under proposed Sec. Sec.  618.240(g) and 618.245. 
This is a significant update to 29 CFR 90.19. Section 284 of the Act 
allows for judicial review of only ``final determinations.'' Under 
existing regulations, all determinations rendered by the Department are 
final determinations subject to judicial review. In the NPRM, the 
Department is defining only determinations on reconsideration issued 
under proposed Sec. Sec.  618.240(g) and 618.245 as final 
determinations and, therefore, only these determinations are subject to 
judicial review through the United States Court of International Trade 
(USCIT). Proposed paragraph (a) is substantially the same as 29 CFR 
90.19(a), but eliminates the citations within part 90. Proposed 
paragraph (b) is new and defines only determinations on reconsideration 
issued under proposed Sec. Sec.  618.240(g) and 618.245 as final 
determinations subject to judicial review through the USCIT. Proposed 
paragraphs (c) and (d) are substantially the same as 29 CFR 90.19(b) 
and (c), with only minor language changes to reflect modernization. 
Proposed paragraph (e) contains an updated reference and title from 29 
CFR 90.19(d). Proposed paragraphs (f) and (g) are new and provide 
clarity on the determinations subject to judicial review under sec. 284 
of the Act and specify that USCIT rules apply to filings with the 
court.
Section 618.260 Study Regarding Certain Affirmative Determinations by 
the Commission
    Proposed Sec.  618.260 provides for a study and report to be 
undertaken by the Department in response to certain ITC affirmative 
determinations under sec. 224 of the Act. This is an update to the 
requirements at 29 CFR 90.21. There are no substantial changes, but the 
additional detail provided explains what information the study will 
include.
Section 618.265 Availability of Information to the Public
    Proposed Sec.  618.265 discusses the availability of information 
under this part 618 and is largely unchanged from 29 CFR 90.32, except 
to indicate that copies of petitions, in redacted form, will be 
available on the Department's website.
    29 CFR 90.36, related to the computation of time for purposes of 
subpart B, is proposed for deletion as it does not apply to 
calculations for petitions or reconsiderations. Individual sections of 
this proposed subpart B address time periods as appropriate.

C. Subpart C--Employment and Case Management Services

    Proposed subpart C sets forth requirements under sec. 235 of the 
Act for States to provide employment and case management services to 
trade-affected workers. Proposed subpart C makes significant changes to 
the employment and case management services provisions in 20 CFR part 
617 because the enactment of TGAAA altered these requirements. However, 
20 CFR 617.20 and 617.21 contain many of the same elements now 
contained in sec. 235 of the Act in proposed subpart C. TAARA 2002 
required States to ``make every reasonable effort'' to provide case 
management services to trade-affected workers through programs other 
than the TAA Program. TGAAA enacted and funded a requirement to offer 
case management services to trade-affected workers. TAARA 2015 
continues these provisions and requires States to provide employment 
and case management services, either through TAA Program funding, 
through programs other than the TAA Program, or through a combination 
of both.
    Proposed subpart C also updates 20 CFR part 617 to reflect changes 
to the TAA Program and related workforce development programs due to 
the authorization and implementation of WIOA. Proposed subpart C 
emphasizes the integration of the TAA Program into the one-stop 
delivery system established under WIA and continued under WIOA.
    Some key additions within proposed subpart C include requiring 
initial assessments for trade-affected workers; clarifying the 
provision of required case management services; and prescribing 
requirements for IEPs.
Section 618.300 Scope
    Proposed Sec.  618.300 discusses the scope of this subpart and does 
not have a directly comparable section in 20 CFR part 617. This 
proposed section describes the TAA Program benefits that States must 
make available and their required integration with the reemployment and 
career services provided through the one-stop delivery system 
established under WIOA. States must provide trade-affected workers with 
seamless delivery of services and benefits described in subpart C to 
help them return to employment as quickly as possible. Providing timely 
employment and case management services is important for improving the 
efficiency and effectiveness of the TAA Program. Immediately conducting 
an assessment improves participation rates, gives trade-affected 
workers more time to consider their options, and leads to better 
employment, retention, and post-program earnings outcomes.
    The Act requires States to provide services to two groups of 
workers: (1) Members of a group of workers covered by a petition for 
TAA filed by, or on behalf of, such group of workers; and (2) members 
of a worker group covered by a petition that the Department has 
certified. Under sec. 221(a)(2)(A) of the Act, the Governor must 
provide rapid

[[Page 60166]]

response services and appropriate WIOA career services to groups of 
workers for whom a petition has been filed under subpart B. States must 
provide these services at the time of filing, whether or not the 
petition has been, or eventually will be, certified or denied. Once 
covered by a certification, States must offer trade-affected workers 
employment and case management services, including counseling, testing 
and placement services, and information on supportive and other 
services. This requirement is based on new language in secs. 235 and 
239(a), (e), and (g) of the Act, and the Congressional Declaration of 
Policy in sec. 125(a) of TAARA 2002, which states that trade-affected 
workers ``are eligible for transportation, childcare, and healthcare 
assistance, as well as other related assistance under programs 
administered by the Department of Labor.'' Section 239(f) of the Act 
requires that these services be coordinated with workforce activities 
and services under title I of WIOA and provides the Department with the 
authority to establish the responsibilities and requirements for such 
coordination. These requirements are not new. Many of the employment 
and case management services discussed in this subpart are contained in 
20 CFR 617.20 and 617.21.
Section 618.305 The Trade Adjustment Assistance Program as a One-Stop 
Partner
    Proposed Sec.  618.305 is new and requires States to ensure that 
their TAA Program, as a required partner in the one-stop delivery 
system, complies with one-stop partnership requirements such as sharing 
staff, materials, and financial resources. Coordination with the 
broader public workforce system established under WIA, now WIOA, is 
required at 20 CFR 617.59(h). This section expands upon the existing 
rules and updates them to reflect the requirements established under 
WIOA. The partnership activities help ensure the seamless delivery of 
necessary services, including a comprehensive array of appropriate 
services not funded under the TAA Program, to groups of workers covered 
by filed petitions and to members of worker groups for whom a 
certification has been issued. Services provided before the 
certification of a petition for TAA cannot be charged to the TAA 
Program. Services provided by partner programs must not be duplicated 
using TAA Program funds. However, there may be a need to supplement the 
previous services if they do not meet the requirements of the TAA 
Program. Proposed paragraph (a) reiterates that the TAA Program is a 
required partner under WIOA. Proposed paragraph (b) requires that the 
TAA Program meet the WIOA one-stop partner requirements, including 
paying infrastructure costs in areas where the TAA Program is being 
carried out. Proposed paragraph (c) provides that, for locations where 
the TAA Program is being carried out, States must ensure that their 
administration of the TAA Program complies with the one-stop 
partnership requirements, including appropriate cost allocation for 
infrastructure and operating costs of one-stop centers, and the terms 
and conditions of the memorandum of understanding established under the 
WIOA Final Rule at 20 CFR 678.500.
    If the TAA Program is carried out in a local workforce development 
area (or local area), the State must provide access to the TAA Program 
services in at least one of the local area's comprehensive one-stop 
centers in accordance with 20 CFR 678.305(d) and WIOA sec. 
121(b)(1)(A)(i). Access to the TAA Program occurs in one of three ways:
     Option 1. Having a program staff member physically present 
at the one-stop center;
     Option 2. Having a staff member from a different partner 
program physically present at the one-stop center and appropriately 
trained to provide information to customers about the programs, 
services, and activities available through all partner programs; or
     Option 3. Making available a direct linkage through 
technology to a program staff member who can provide meaningful 
information or services.
    The options above offer a wide range of possibilities to partners. 
Option 2 could require varying levels of assistance depending on the 
trade-affected worker's needs. For example, this could be as simple as 
having an adequately trained WIOA staff member providing basic program 
information to a one-stop customer regarding group and individual 
eligibility requirements of the TAA Program. In this example, the one-
stop center staff has been trained on TAA Program eligibility 
requirements as well as how to search for and file a TAA Program 
petition. Once the Department renders a determination on a petition, 
the one-stop center staff will then connect the worker to appropriately 
trained one-stop center staff who can further assist them. If the 
petition is certified, the trade-affected worker is eligible to apply 
for individual benefits and the appropriately trained one-stop center 
staff must guide them through the application and enrollment process. 
This option allows the trade-affected worker to receive high-quality 
service through the one-stop center, in a timely manner. In this 
example, it would be essential that the Wagner-Peyser Act Employment 
Service staff person document their time and effort to ensure that the 
charges to the appropriate program, namely the TAA Program, for 
salaries and wages are based on records that accurately reflect the 
work performed, consistent with Federal cost principles in the Office 
of Management and Budget's (OMB's) Uniform Guidance at 2 CFR 200.430.
    Option 3, a direct linkage, can take many forms as well. As 
described in 20 CFR 678.305(d)(3), a ``direct linkage'' means providing 
a direct connection at the one-stop center within a reasonable time, by 
phone or through a real-time web-based communication, to a program 
staff member who can provide program information or services, including 
career services, to the customer. Solely providing a phone number, 
website, information, pamphlets, or materials does not constitute a 
``direct linkage.'' The flexibility provided through the three optional 
methods for assuring customer access to required one-stop partner 
services and activities at the comprehensive centers ensures that the 
TAA Program remains accessible through the one-stop center network.
Section 618.310 Responsibilities for the Delivery of Employment and 
Case Management Services
    Proposed Sec.  618.310 explains the State's responsibilities for 
delivering and making available employment and case management 
services. These responsibilities are from sec. 235 of the Act. Proposed 
paragraph (a) addresses the information that States must provide to 
trade-affected workers. The information requirements are detailed in 
subpart H.
    Proposed paragraph (b) lists the State's specific responsibilities 
for delivering employment and case management services. The proposed 
regulatory text would modify 20 CFR 617.20(b). The language in 20 CFR 
617.20 was based on workforce programs that have been replaced by WIOA; 
it also uses outdated language to describe reemployment services, now 
known under the TAA Program as employment and case management services. 
Proposed paragraph (b) does not significantly change the activities and 
services that States must provide or make available to trade-affected 
workers. States must: (1) Interview and review training opportunities 
for each trade-affected worker; (2) inform trade-

[[Page 60167]]

affected workers of the services and allowances available; (3) help 
them secure suitable employment; (4) accept applications for training; 
(5) help them secure appropriate training; (6) monitor their training 
progress; (7) devise a training-waiver process; (8) provide access to 
workshops and other employment resources; and (9) coordinate other 
employment benefits that workers may be eligible for.
    Proposed paragraph (b) reorganizes 20 CFR 617.20(b). Paragraph 
(b)(1) is included in proposed Sec.  618.310(b). Paragraph (b)(2), 
registering AAWs for work, is omitted from the NPRM. Registering AAWs 
for work is a function of the Wagner-Peyser and UI programs. Although 
TAA Program staff may assist with this process, it is not an employment 
and case management service listed under sec. 235 of the Act. Paragraph 
(b)(3) is covered in both proposed Sec.  618.310(b)(2) and proposed 
Sec.  618.816 of subpart H. Paragraphs (b)(4) and (6) are retained as 
proposed Sec.  618.310(b)(3). Paragraph (b)(7) is covered in subparts F 
(training) and D (job search and relocation allowances). Paragraph 
(b)(8) is covered through the comprehensive and specialized assessment 
and IEP discussed in this subpart. Paragraphs (b)(9) through (12), 
regarding the selection of, referral to, and determinations on 
training, are covered in proposed Sec.  618.310(b)(5) and (6) and in 
more detail in subpart F of this NPRM. Paragraph (b)(13), regarding the 
periodic review of reemployment plans, is covered in proposed Sec.  
618.350. Paragraph (b)(14), regarding periodic review of waivers, is 
included as proposed Sec.  618.310(b)(7). Paragraph (b)(15), regarding 
the coordination of services with WIOA, is divided into proposed Sec.  
618.310(b)(8) and (9).
    Proposed paragraph (c) implements sec. 235 of the Act by requiring 
States to provide, if appropriate, specific employment and case 
management services to trade-affected workers. Proposed paragraph 
(c)(1) requires States to assess workers' skills and service needs 
through assessments and by identifying appropriate employment goals and 
barriers to employment. These goals should be based on a realistic 
assessment of available training; the worker's knowledge, skills, and 
abilities; and the gap between them and those required for the worker's 
identified employment goal.
    Proposed paragraph (c)(2) requires States to inform trade-affected 
workers of the availability of an IEP to identify employment goals and 
objectives, and appropriate training and services needed to achieve 
those goals and objectives. An IEP is a combination of the ``training 
plan'' contained in 20 CFR 617.20(b)(8) and the ``reemployment plan'' 
in 20 CFR 617.20(b)(13). The requirement to periodically review the 
reemployment plan in 20 CFR 617.20(b)(13) is carried forward as a 
requirement for an IEP under this NPRM. For workers seeking training or 
job search allowances, Sec.  618.350(a) requires States to provide 
workers with an IEP, though this is not a requirement for eligibility 
for benefits.
    Proposed paragraph (c)(3) requires the State to provide information 
to trade-affected workers on how to apply for financial aid, including 
referring workers to educational opportunity centers under the Higher 
Education Act of 1965, as amended (HEA). In addition, States must 
notify workers that they may request financial aid administrators to 
use current year income data, rather than preceding year income data, 
to determine the workers' financial need. This is required by sec. 
235(4) of the Act. There is no corresponding requirement in the 
existing rule.
    Proposed paragraph (c)(4) requires States to provide, if 
appropriate, certain services to trade-affected workers, including 
short-term, prevocational services, including development of learning 
skills, communications skills, interviewing skills, punctuality, 
personal maintenance skills, and professional conduct to prepare 
workers for employment or training. These are referred to commonly as 
``soft skills'' within the public workforce system. These services are 
required by sec. 235(5) of the Act. There is no corresponding provision 
in the existing rule.
    Proposed paragraph (c)(5) requires States to provide, if 
appropriate, individual and group counseling, including job search and 
placement counseling. These services can be provided in one-on-one 
counseling sessions or in workshops at a one-stop center. These 
services are referenced indirectly in 20 CFR 617.20 and 617.21 and are 
required by sec. 235(6) of the Act. This NPRM uses more modern 
terminology that reflects the changes to the public workforce system 
that have occurred through the transition from JTPA, to WIA, and now to 
WIOA.
    Proposed paragraph (c)(6) requires States to provide various kinds 
of employment statistics, including local, regional, and national labor 
market information, to ensure trade-affected workers make informed 
decisions about their employment goals and training needs. Part 617 of 
title 20 of the CFR references the provision of labor market 
information to trade-affected workers in relation to job search 
activities, relocation, and training programs. Section 235(7) of the 
Act requires States to provide this information.
    Lastly, proposed paragraph (c)(7) requires States to inform trade-
affected workers about supportive services available through partner 
programs, as required by sec. 235(8) of the Act. This requirement also 
was contained in 20 CFR 617.20(b)(5) and 617.21(e). The TAA Program 
reimburses limited travel and subsistence costs for training outside 
the worker's commuting area and provides for all training-related 
expenses (see subpart F). However, the TAA Program does not pay for 
vehicle repairs, local travel costs, childcare, or other similar 
supportive services traditionally paid for under WIOA.
    Proposed paragraph (d) further defines what it means to ``make 
available'' the employment and case management services described in 
this subpart. TEGL No. 16-16, ``One-Stop Operations Guidance for the 
American Job Center Network,'' discussed the requirement that career 
services under WIOA be ``made available.'' The Department there 
concluded that this phrase had the same meaning as ``provided.'' The 
Department reaches the same conclusion under the Act. While not all 
employment and case management services will be appropriate for all 
trade-affected workers, they must be made available to them. This 
requires informing trade-affected workers of the available services; 
providing those services if requested or if the services are deemed 
appropriate for the worker; and documenting the services that they 
offered, any that were not offered, and why those services were not 
offered.
Section 618.325 Integrated Service Strategies and Workforce Innovation 
and Opportunity Act Co-Enrollment
    Proposed Sec.  618.325 does not have a comparable section in 20 CFR 
part 617. Proposed Sec.  618.325 discusses co-enrollment between the 
TAA Program and WIOA and other programs to ensure the availability of a 
comprehensive array of services for trade-affected workers and the 
integration of workforce development programs. The Department long ago 
concluded that co-enrollment of trade-affected workers in the 
dislocated worker program under WIOA, WIA, and title III of JTPA before 
that, is the best way to integrate services and ensure successful 
reemployment of trade-affected workers, and States have been co-
enrolling in accordance with administrative guidance. The State also 
should explore partnerships with community and faith-based 
organizations, including organizations

[[Page 60168]]

not affiliated with the broader WIOA system, to ensure the provision of 
appropriate, holistic services to trade-affected workers, their 
families, and their trade-affected communities. This integration of 
service strategies arises from the requirement in sec. 239 of the Act 
to make available employment and case management services, such as 
counseling, testing, placement services, and supportive and other 
services for trade-affected workers.
    Co-enrollment of TAA Program participants in the WIOA dislocated 
worker program drastically improves the quality of service to trade-
affected workers and improves participant outcomes. Based on data 
reported by the States between FYs 2009 and 2017, TAA participants who 
are co-enrolled in the dislocated worker program under WIA/WIOA have 
superior post-program employment results, by a consistent margin, in 
comparison to TAA participants who were not co-enrolled in a WIA/WIOA 
dislocated worker program. Moreover, these data show no adverse impact 
on outcomes under the dislocated worker program as a result of co-
enrolling TAA Program participants. Additionally, TAA Program 
participants co-enrolled in the dislocated worker program have:
    (1) Higher training participation (75 percent versus 51 percent for 
those not co-enrolled);
    (2) Higher training completion rates (78 percent versus 71 percent 
for those not co-enrolled); and
    (3) Higher credential attainment (73 percent versus 62 percent for 
those not co-enrolled).
    All of these outcomes are correlated with higher performance 
outcomes and are statistically significant.
    Proposed paragraph (a)(1) requires co-enrollment of trade-affected 
workers in WIOA's dislocated worker program. Co-enrollment allows for 
more efficient use of public workforce system resources and reduces 
barriers to program integration. A trade-affected worker may decline 
co-enrollment, which has no effect on eligibility for benefits and 
services under the TAA Program. In implementing the co-enrollment 
requirement, States must make trade-affected workers aware that they 
are being co-enrolled in the WIOA program.
    Proposed paragraph (a)(2) requires that States make available to 
eligible trade-affected workers co-enrollment in Wagner-Peyser Act 
Employment Service activities, vocational rehabilitation services, and 
veterans' programs, such as the Jobs for Veterans State Grants program, 
and other one-stop partner programs, if appropriate. When trade-
affected workers are co-enrolled properly in other one-stop programs, 
provided timely rapid response services, and given appropriate career 
services, they return to work as quickly as possible. Co-enrolled 
trade-affected workers also can receive supportive services that may 
help them complete TAA approved training and then return to employment. 
The Department expects the TAA Program, in general, to pay for all 
training and related costs and the majority of employment and case 
management services. However, trade-affected workers often also benefit 
from WIOA's supportive services and post-employment follow-up services, 
which cannot be funded through the TAA Program.
    Proposed paragraph (b)(1) emphasizes that most trade-affected 
workers are dislocated workers as defined at WIOA sec. 3(15). Most 
trade-affected workers have been laid off, are likely to be eligible 
for unemployment compensation or are otherwise attached to the 
workforce, and are unlikely to return to a previous industry or 
occupation, which are the primary eligibility criteria for the 
dislocated worker program. There are only a few barriers to WIOA 
eligibility. Proposed paragraph (b)(2) recognizes that AAIWs will 
generally not be eligible for the WIOA dislocated worker program, but 
in certain circumstances, such as a general announcement of a closure, 
they may meet those eligibility criteria and must also be co-enrolled. 
Similarly, some partially separated workers' wages and time on the job 
will have decreased, but they remain employed and do not meet any other 
eligibility requirements of the WIOA dislocated worker program. 
Proposed paragraph (b)(3) describes that the broader requirement under 
WIOA that certain males be registered under the Selective Service 
provisions can be a barrier to co-enrollment. There is no Selective 
Service registration requirement under the TAA Program. If an 
individual knowingly and willfully fails to register, he cannot co-
enroll in WIOA and, therefore the co-enrollment requirement does not 
apply.
Section 618.330 Assessment of Trade-Affected Workers
    Proposed Sec.  618.330 is new and requires States to design an 
assessment process. Section 239(g)(4) of the Act permits the Department 
to require initial assessments for all trade-affected workers and 
requires the State to ``perform outreach to, intake of, and orientation 
for [AAWs] and [AAIWs] covered by a certification under [the Act].'' 
States must provide all trade-affected workers an initial assessment 
after determining that they are individually eligible for the TAA 
Program as part of the intake process. This meets a necessary component 
of the requirement at TAARA 2015 sec. 239(g)(4) that each State perform 
``intake of'' trade-affected workers covered by a petition. Intake 
includes these assessments but also the collection of demographic 
information for reporting purposes. The initial assessment must include 
an evaluation of a trade-affected worker's skill levels (including 
literacy, numeracy, and English language proficiency), abilities 
(including skills gaps), and supportive service needs.
    Proposed paragraph (a) provides an overview of assessments. 
Proposed paragraph (b) provides that the States must ensure the 
scheduling of the assessment gives trade-affected workers enough time 
and information to consider, request, and enroll in training or obtain 
a waiver of the training requirement for TRA before expiration of the 
26-week deadlines for enrollment in training provided under sec. 
231(a)(5)(A) of the Act. Proposed paragraph (c) provides that 
assessments are created in cooperation with the trade-affected worker 
with their interests, skills, aptitudes, and abilities discussed. 
Proposed paragraph (d) requires that the results be documented in the 
worker's case file. An assessment requires more than a review of 
information available about the trade-affected worker, their education, 
and previous employment. An assessment is an interactive process that 
includes the involvement of the trade-affected worker. Proposed 
paragraph (e) discusses what to do if a partner program conducts the 
assessment(s). The use of partner programs' assessments can increase 
efficiency, ensure that workers quickly receive appropriate 
reemployment services, and quickly identify those workers requiring a 
more comprehensive and specialized assessment of their skills. The 
Department recognizes that the lack of uniform requirements for 
assessments means that some assessments conducted by partner programs 
may not meet all TAA Program requirements for an initial assessment. If 
so, the State must supplement those partner program assessments with 
additional information to comply with Sec.  618.335. Proposed paragraph 
(f) requires that States must explain the advantages of receiving an 
assessment to trade-affected workers and also confirms that a worker 
may refuse an assessment. However, the worker must provide any 
information necessary (outside the assessment process) that enables 
States to determine

[[Page 60169]]

eligibility for any benefit under this part 618.
Section 618.335 Initial Assessment of Trade-Affected Workers
    Proposed Sec.  618.335 is new and implements sec. 239(g)(4) of the 
Act. WIOA sec. 134(c)(2)(A)(iii) requires individuals be provided with 
an ``initial assessment of skill levels (including literacy, numeracy, 
and English language proficiency), aptitudes, abilities (including 
skills gaps), and supportive service needs'' as a career service 
through the one-stop center. The WIOA regulations mirror this language 
at 20 CFR 678.430(a)(3). Proposed Sec.  618.335 aligns the TAA Program 
with WIOA and it provides the requirements for an initial assessment of 
trade-affected workers. The first step in the process is to determine 
whether the worker will need employment and case management services 
and training. The State must provide TAA Program benefit information to 
trade-affected workers no later than at the time of the initial 
assessment, as discussed in proposed Sec.  618.816(f). However, the 
State may provide this information to a worker even earlier, upon 
receiving a notice of a certified petition covering that worker.
    Proposed paragraph (a) requires that States conduct an initial 
assessment for each trade-affected worker, as authorized by sec. 
239(g)(4) of the Act. If an initial assessment has been completed 
before the trade-affected worker enrolls in the TAA Program, the State 
must use the previous assessment and not conduct a duplicate assessment 
in accordance with proposed Sec.  618.330(e). Proposed paragraph (b) 
lists factors that States must consider to find the best approach to 
reemployment for each particular worker. A review of local labor market 
conditions will help the State determine if any jobs are available in 
the local area for which the worker could apply. A review of the 
worker's knowledge, skills, and abilities gained from their education 
and previous employment helps the State determine whether the worker 
will be able to use those skills in new available jobs, or whether the 
worker's skills are too specialized to be transferred to other 
available employment. A review of all barriers to the worker's 
employment will help the State identify training that may overcome 
those barriers, such as English language training or remedial training 
to get a high school equivalency degree. Any feedback from the trade-
affected worker, including disagreement with the assessment's 
conclusions, must be documented in the case file.
    Proposed paragraph (c) explains the State's options for service 
strategies based on the information gathered from the initial 
assessment. This involves first making a determination of whether or 
not there is suitable employment available to the trade-affected worker 
and the options for moving forward. Proposed paragraph (d) explains 
that if suitable employment is not available, the State must advise the 
worker to explore available training under subpart F.
Section 618.345 Comprehensive and Specialized Assessment of Trade-
Affected Workers
    Proposed Sec.  618.345 is new and implements sec. 235 of the Act. 
WIOA sec. 134(c)(2)(A)(xii) and its implementing regulation at 20 CFR 
678.430(b)(1) require States to provide ``[c]omprehensive and 
specialized assessments of the skill levels and service needs of adults 
and dislocated workers, which may include . . . [d]iagnostic testing 
and use of other assessment tools; and [i]n-depth interviewing and 
evaluation to identify employment barriers and appropriate employment 
goals'' as an individualized career service ``if determined to be 
appropriate in order for an individual to obtain or retain 
employment.'' WIOA draws a distinction between basic career services 
and individualized career services as individualized career services 
only are required to be provided if it is determined appropriate. 
Proposed Sec.  618.345 aligns the TAA Program with WIOA. Proposed 
paragraph (a) requires the comprehensive and specialized assessment to 
be made available to all trade-affected workers. Proposed paragraph (b) 
explains that the trade-affected workers' goals and interests must be 
taken into account, as well as their location as it relates to 
available local employment and whether or not it is inside their 
current commuting area. Proposed paragraph (c) reiterates WIOA's 
regulations and is meant to ensure that States have the information 
needed to help workers select appropriate training and a viable future 
career, thus increasing their chances of successfully completing 
training and finding sustainable employment. Finally, proposed 
paragraph (d) provides that States can design their comprehensive and 
specialized assessments to gather the information necessary for 
determining whether the six criteria for training approval can be met 
under subpart F.
Section 618.350 Individual Employment Plans for Trade-Affected Workers
    Proposed Sec.  618.350 revises and combines two separate sections 
of 20 CFR part 617: a ``training plan'' at 20 CFR 617.20(b)(8) and a 
``reemployment plan'' at 20 CFR 617.20(b)(13), and implements a new 
process for making available IEPs for trade-affected workers.
    Proposed paragraph (a) requires the State to make available an IEP 
to all trade-affected workers and requires the establishment of an IEP 
for workers who apply for training under subpart F or a job search 
allowance under subpart D. Proposed paragraph (b) requires that the IEP 
must document both the results of the assessment and a service strategy 
to provide the trade-affected worker with needed services for 
reemployment. Proposed paragraph (c) provides the required elements of 
an IEP. The IEP must be developed jointly between the State and the 
trade-affected worker. These elements are required because they cover 
most aspects of the training and reemployment process. Proposed 
paragraph (d) explains that the IEP can be developed by a partner 
program, but it must be supplemented to include the elements required 
in proposed paragraph (c) if the IEP does not already include them. 
This reduces duplication of services, while still meeting program-
specific needs. Proposed paragraph (e) requires the State to monitor 
the worker's progress toward meeting the IEP's elements. Proposed 
paragraph (f) requires the State to modify the IEP as necessary, and 
with the worker's input. The State also must modify the IEP when there 
is a change to the trade-affected worker's approved training program or 
revisions to receipt of subsistence and transportation payments. 
Proposed paragraph (g) explains that a trade-affected worker seeking a 
job-search allowance under subpart D or training under subpart F may 
refuse to participate in the IEP process. However, the trade-affected 
worker must provide sufficient information, either through a partial 
IEP or outside of the IEP process, for the State to make a 
determination on the six required training approval criteria or the 
job-search allowance application criteria. Failure to do so will result 
in denial of the training program or allowance. A trade-affected worker 
so denied can appeal the training denial, in accordance with provisions 
in subparts D, F, and H.

[[Page 60170]]

Section 618.355 Knowledge, Skills, and Abilities of Staff Performing 
Assessments
    Proposed Sec.  618.355 is new and has no comparable counterpart in 
existing regulations or in administrative guidance. The Department is 
proposing this section for the first time in order to assist States to 
ensure that requirements under sec. 235 of the Act are fully realized. 
TAA Program funds described in sec. 235A of the Act may assist in 
ensuring that States are able to obtain adequate staff to perform these 
services. Proposed paragraph (a) describes the qualifications that 
staff performing assessments should possess. In essence, staff should 
understand what jobs in the area are available to whom, and how trade-
affected workers may be able to fill those jobs, either immediately or 
after receiving additional training. Staff with these qualifications 
can perform assessments quickly and properly, which helps the TAA 
Program run efficiently.
    Proposed paragraph (b) confirms that the staff performing the 
assessments may be from any partner program and need not be limited to 
those funded under this Act. This flexibility better integrates the 
services of the TAA Program and partner programs. Proposed paragraph 
(c) references funds available under sec. 235A(2) of the Act to assist 
in training staff to meet these recommendations.
Section 618.360 Employment and Case Management Services for Trade-
Affected Workers in Training
    Proposed Sec.  618.360 is a new clarification that is added as a 
result of TAA Program oversight and monitoring conducted by the 
Department. Proposed Sec.  618.360 requires States to continue to make 
employment and case management services available to all trade-affected 
workers considering training (on a waiver from training in accordance 
with subpart G), taking TAA approved training, or who have completed 
training. Keeping these services available will help workers as they 
move from training to reemployment, and increases the chances of a good 
return on that training investment. Those services include placement 
and referrals to appropriate supportive services to trade-affected 
workers upon their completion of training and until they find 
reemployment. Post-employment follow-up services cannot be funded by 
the TAA Program, but must be provided through co-enrollment in WIOA.

D. Subpart D--Job Search and Relocation Allowances

    Proposed subpart D governs job search and relocation allowances, 
which are authorized, respectively, under secs. 237 and 238 of the Act. 
Proposed subpart D consolidates provisions contained in subparts D, E, 
and F of 20 CFR part 617, which implement these allowances. Proposed 
subpart D largely preserves the 20 CFR part 617 requirements for job 
search and relocation allowances, with a few substantive changes 
regarding a statutory increase to the limit for job search allowance 
reimbursement per AAW and per certification to $1,250 from $800 
previously; an increase in the maximum lump-sum payment for relocation 
to $1,250 from $800 previously; and the definition of ``suitable 
employment'' used in the eligibility requirement for both job search 
and relocation allowances, explained below. Proposed subpart D also 
contains procedural changes from 20 CFR part 617.
    Finally, proposed subpart D continues to require the use of the FTR 
at 41 CFR chapters 300 through 304, in determining amounts for use by 
States to provide travel, subsistence, and transportation benefits, and 
establishing specified other requirements, to eligible AAWs. This is 
not a new requirement; the Department already requires use of the FTR 
for specified purposes in 20 CFR 617.34, 617.42, and 617.45 through 
617.47. However, there has been confusion in some States as to what 
travel requirements apply to the TAA Program. Proposed subpart D, in 
expanding references to the FTR, clarifies that workers using job 
search and relocation allowances are subject to the same Federal travel 
rules as employees of the Department.
Section 618.400 Scope
    Proposed Sec.  618.400 explains the scope of this subpart D. This 
provision is new. It explains that the purpose of job search and 
relocation allowances is to help AAWs secure suitable employment and 
relocate outside their commuting area.
Section 618.405 General
    Proposed Sec.  618.405 contains general provisions and revises and 
consolidates 20 CFR 617.30 and 617.40. Proposed paragraph (a) retains 
the content in 20 CFR 617.30, except that it replaces the reference to 
``securing a job'' with ``suitable employment.'' Proposed paragraph (b) 
retains the content of 20 CFR 617.40, except that it eliminates the 
reference to the ``head of the family.'' Instead, it authorizes payment 
to the AAW in the family who first applies for the relocation 
allowance, if otherwise eligible. The Department has concluded that 
this minor change makes it easier for States to administer these 
benefits by eliminating the need to identify the head of the family.
Section 618.410 Applying for a Job Search Allowance
    Proposed Sec.  618.410 describes the same application process in 20 
CFR 617.31, but changes instructions on when to file an application. 
Under 20 CFR 617.31(b), an AAW who is covered under a petition and who 
is totally or partially separated may apply for a job search allowance 
before or after the Department issues a certification. Proposed Sec.  
618.410 changes these procedures to require that a State accept 
applications for job search allowance only after the Department has 
issued a certification. Further, the Department proposes to eliminate 
precertification applications for job search allowances to avoid 
unrealistic expectations for reimbursement. For most workers, requiring 
certification prior to filing a job search application will result in 
only a short delay in filing and no delay in payment because only AAWs 
may receive job search allowances. This approach is similar to that of 
many assistance programs that do not reimburse individuals for 
activities conducted with their own funds before the individual becomes 
eligible for assistance. Related to the change in when applications may 
be accepted, this proposed subpart includes a change that all 
references to ``individuals'' in 20 CFR part 617 will instead be 
``adversely affected workers.'' This change is consistent with sec. 
237(a)(1) of the Act, which provides that ``an [AAW] covered by a 
certification'' may file an application for a job search allowance.
Section 618.415 Eligibility for a Job Search Allowance
    Proposed Sec.  618.415 sets forth the eligibility requirements for 
job search allowances. Section 237(a)(2)(B) of the Act requires, as a 
condition for receipt of a job search allowance, that ``the worker 
cannot reasonably be expected to secure suitable employment in the 
commuting area in which the worker resides.'' In implementing this 
provision, the Department proposes to use the same definition of the 
term ``suitable employment'' as is used in proposed subpart F and 
defined in proposed Sec.  618.110. This departs from 20 CFR 
617.32(a)(4) and 617.42(a)(6), which use ``suitable work,'' applying 
the State UI law definition of suitable work,

[[Page 60171]]

as the threshold for approval of job search and relocation allowances.
    Proposed paragraph (a) has several changes from 20 CFR 617.32(a). 
Proposed paragraph (a) excludes language on registration with the State 
agency (a requirement in 20 CFR 617.32(a)(3)) because proposed Sec.  
618.310 already requires States to provide employment and case 
management services, and the Act does not contain this particular 
registration requirement for job search allowance eligibility. Proposed 
paragraph (a)(1) provides the time limits within which an AAW must 
request a job search allowance. It contains minor rewording for 
readability, but the requirements are unchanged from 20 CFR 617.31(c).
    Proposed paragraph (a)(3) substitutes the term ``suitable 
employment'' for ``suitable work'' and eliminates the reference to 
long-term duration. Suitable employment may exclude some work--i.e., 
some lower-skilled and lower-paying work--that would qualify as 
suitable work under a State law. Suitable employment is work at a 
substantially equal or higher skill level paying at least 80 percent of 
the AAW's previous wage. Suitable employment differs from suitable work 
because, in most States, suitable work includes jobs with wages, skills 
requirements, or both, that are lower than those in jobs that would 
qualify as suitable employment under the Act. Proposed paragraph (a)(3) 
also adds ``employment that pays a wage of at least the 75th percentile 
of national wages, as determined by the National Occupational 
Employment Wage Estimates.'' This alternative ensures that AAWs who can 
reasonably expect to find a job that otherwise meets the suitable 
employment definition except that it pays a wage of at least the 75th 
percentile of national wages, rather than paying at least 80 percent of 
the AAW's previous wage, would still be eligible for job search 
allowances.
    The proposed changes would make it easier for workers to qualify 
for a job search allowance, because fewer local jobs would qualify as 
suitable employment. The proposed change, however, might make it harder 
for workers to qualify for a relocation allowance, because, similarly, 
fewer jobs requiring relocation would qualify as suitable employment. 
This difficulty should be mitigated by the fact that workers who find 
suitable employment with the help of a job search allowance would also 
be eligible for a moving allowance to relocate to that same suitable 
employment. The Department proposes this change because of the unique 
economic circumstances of workers adversely affected by international 
trade. The Organisation for Economic Co-operation and Development 
(OECD) notes that changes brought on by technology and trade can cause 
local labor market shocks; such shocks cause some workers to move 
elsewhere, but often not in large enough numbers to mitigate fully the 
shock in the affected locality.\7\ Compounding the problem for trade-
affected workers, worker migration has slowed over the last several 
decades.\8\ Together these trends have caused the Department to respond 
by proposing this change from suitable work to suitable employment. 
This change also would provide administrative consistency and 
uniformity of interpretation and application of Federal law, a policy 
goal described in 20 CFR 617.52(b), and in this NPRM, in proposed Sec.  
618.840.
---------------------------------------------------------------------------

    \7\ OECD. (2018). ``OECD Economic Surveys: United States at 
81.'' Retrieved from: https://read.oecd-ilibrary.org/economics/oecd-economic-surveys-united-states-2018_eco_surveys-usa-2018-en.
    \8\ See id.; see, e.g., David Ihrke, U.S. Census Bureau. (2017). 
``United States Mover Rate at a New Record Low.'' Retrieved from: 
https://www.census.gov/newsroom/blogs/random-samplings/2017/01/mover-rate.html.
---------------------------------------------------------------------------

    Proposed paragraph (a)(4) is new and has no comparable counterpart 
in existing regulations or in administrative guidance. It establishes 
for the first time that the State determines whether an AAW could 
reasonably expect to find suitable employment through alternatives to a 
job search allowance, such as by having an AAW search and interview for 
jobs through electronic means. The Department added this provision to 
reflect the cost-saving technological advances of the modern era. There 
are now countless websites, apps, and online services that connect 
employers with workers, and many communication technologies make face-
to-face discussion via video conferencing simple and inexpensive. By 
this proposed change, the Department is encouraging States and AAWs to 
use these cost-saving, and possibly equally effective, measures.
    Proposed paragraph (a)(5) is new and has no comparable counterpart 
in existing regulations or in administrative guidance. It clarifies for 
the first time that a State may not approve job search allowances if 
the AAW received a relocation allowance under the same certification 
since an AAW must have already obtained work to qualify for the 
relocation allowance.
    Proposed paragraph (a)(6) gives an AAW 30 calendar days to complete 
a job search, clarifying 20 CFR 617.32(a)(5), which provides ``a 
reasonable period not exceeding 30 days after the day on which the job 
search began'' within which to conduct a job search outside the 
commuting area.
    Proposed paragraph (b) describes when a job search is complete and 
mirrors 20 CFR 617.32(b), with organizational changes for clarity and 
one change. A job search is not complete until the AAW has received a 
bona fide (i.e., good faith) offer of employment, or has contacted each 
employer the AAW either planned to contact or to whom the AAW was 
referred by the State agency or other one-stop partner. The language in 
20 CFR 617.32(b) refers only to State agency-referred employment, but 
the proposed addition of employers that the AAW ``planned to contact'' 
broadens the scope and satisfies this requirement.
Section 618.420 Findings Required
    Proposed Sec.  618.420 explains what a State must find before 
approving a job search allowance, and further delineates the 
responsibilities between a liable State and an agent State, when a job 
search occurs in a different State from the liable State. Proposed 
subpart H, Administration by Applicable State Agencies, establishes the 
responsibilities of the liable State and an agent State. Specifically, 
proposed Sec.  618.824 establishes that the liable State makes all 
determinations on each claim for program benefits, and the agent State 
pays the costs for job search and relocation allowances.
    Proposed paragraph (a) mirrors 20 CFR 617.33(a), except that it 
removes paragraph (a)(2) as redundant and adds the employer contact 
verification requirement that is in the eligibility requirements in 20 
CFR 617.32(c). The Department has determined that this requirement, 
which requires a liable State to verify the AAW's contacts with 
employers certified by the AAW in the worker's own job search plan or 
through referrals, more logically fits under the section on required 
findings.
    Proposed paragraph (b) in its first sentence mirrors 20 CFR 
617.33(b), but adds a new requirement that the agent State, when 
requested by the liable State, must verify with the employer and report 
to the liable State whether the AAW has obtained suitable employment, 
or a bona fide offer of suitable employment, and pay the job search 
allowance.
Section 618.425 Amount of a Job Search Allowance
    Proposed Sec.  618.425 explains how to calculate the amount of a 
job search allowance. It follows 20 CFR 617.34, but updates the maximum 
amount available for allowances to the statutory limit of

[[Page 60172]]

$1,250, instead of $800. It also simplifies requirements by basing 
allowable travel, lodging, and meal costs on the FTR, which in the 
Department's judgment are reasonable and necessary in amount. The 
lodging and meal allowance is set, by statute, at 90 percent of the 
lower of actual meal and lodging costs or one-half the applicable 
prevailing per diem rates in the FTR. Proposed Sec.  618.425 reflects 
the statutory limit. Proposed Sec.  618.425 inserts the FTR citation 
and a hyperlink to the FTR. Proposed Sec.  618.425 also replaces the 
term ``public transportation'' with the term ``mode of 
transportation.'' The reference to public transportation has been 
unduly limiting, so the Department proposes this more expansive term.
Section 618.430 Determination and Payment of a Job Search Allowance
    Proposed Sec.  618.430 requires an AAW to provide supporting 
documentation upon completion of a job search in order for the State to 
make payment and requires the State to reimburse the AAW promptly. 
Proposed paragraph (a) departs from 20 CFR 617.35(a) by eliminating the 
reference to the State making determinations ``before or after'' the 
Department issues a certification covering a worker. This aligns with 
the rationale for proposed Sec.  618.410(b), which provides that the 
State may accept applications for job search allowances only after the 
Department issues a certification. Consistent with this change, all 
references in proposed subpart D are to AAWs, not to ``individuals'' as 
in 20 CFR part 617. Further, proposed Sec.  618.410(a) clarifies that 
job search allowance determinations are subject to the requirements of 
proposed Sec. Sec.  618.820 (determinations and notice) and 618.828 
(appeals and hearings), and requires States to include copies of job 
search allowance applications and determinations in the AAW's case 
file. These are changes from 20 CFR 617.35(a) to ensure proper 
administration of job search allowances.
    Proposed paragraph (b) revises its counterpart provision in 20 CFR 
617.35(b) to clarify, without changing, the conditions for payment of a 
job search allowance, and adding that payment is conditioned on the 
availability of funds.
    Proposed paragraph (c), like 20 CFR 617.35(c), permits the State to 
advance up to 60 percent of the cost of an expected job search 
allowance, but increases the maximum amount of an advance from $360 to 
$750, which is 60 percent of the statutory dollar limit of $1,250. 
Inflation in the years since this limit was initially established 
reduced the value of the previous amount, and this NPRM ameliorates 
that reduced value.
    Proposed paragraph (d) specifies the evidence an AAW must provide 
to receive a job search allowance. The Department proposes to align the 
requirements for documentation with the FTR and the Uniform Guidance at 
2 CFR part 200. At the time of this proposed publication, receipts are 
required for all lodging and purchased transportation expenses. A 
receipt is also required for any expense of $75.00 or greater.
Section 618.435 Job Search Program Participation
    Proposed Sec.  618.435 replaces 20 CFR 617.49 and implements sec. 
237(c) of the Act. Proposed paragraph (a) provides the requirements for 
an AAW participating in a job search program (JSP) to receive 
reimbursement for the necessary expenses of subsistence and 
transportation related to participation in an approved JSP. Proposed 
paragraph (b) allows a State to approve a JSP if it is provided through 
WIOA, the public employment service, or any other Federal- or State-
funded program, and meets the definition provided in Sec.  618.110, or 
is sponsored by the firm from which the AAW has been separated. 
Proposed paragraph (c) requires that subsistence and transportation 
costs must be approved, as appropriate, for workers participating in a 
JSP and the JSP may be within or outside the AAW's commuting area.
Section 618.440 Applying for a Relocation Allowance
    Proposed Sec.  618.440 describes the application process for a 
relocation allowance but differs from 20 CFR 617.41 on when to file an 
application. While proposed paragraph (a) is essentially unchanged from 
20 CFR 617.41(a), proposed paragraph (b) allows an AAW to apply for a 
relocation allowance only after the Department issues a certification 
covering that worker. This is consistent with sec. 238(a)(1) of the 
Act, which permits ``an [AAW] covered by a certification . . . to file 
an application for a relocation allowance.'' This mirrors the change 
for job search allowances reflected in proposed Sec.  618.410, which 
also does not permit applications until after the Department issues a 
certification. A State may not issue a relocation allowance or a 
reimbursement to anyone not covered by a certified petition for any 
reason. As previously noted in the preamble discussion of proposed 
Sec.  618.410 regarding job search allowances, the Department proposes 
this change because permitting precertification applications can raise 
workers' expectations of payments that may not become available.
    Proposed paragraph (b) also contains the requirement that the State 
may approve the relocation only after an AAW files an application and 
before such worker undertakes the relocation.
Section 618.445 Eligibility for a Relocation Allowance
    Proposed Sec.  618.445 on eligibility for a relocation allowance 
combines the requirements in 20 CFR 617.42 (Eligibility) and 617.43 
(Time of relocation), edits them for clarity, and makes several 
significant changes.
    First, proposed Sec.  618.445 removes the requirement in 20 CFR 
617.42(a)(5) regarding registration with the State agency from the job 
search eligibility requirements because the Act does not contain a 
registration requirement for relocation allowance eligibility and 
because proposed Sec.  618.310 of subpart C, absent from 20 CFR part 
617, already requires that States make available employment and case 
management services to all trade-affected workers. Further, proposed 
paragraph (a)(5) departs from 20 CFR 617.42(a)(6) in three respects. 
Proposed paragraph (a)(5) substitutes a Federal law definition of 
``suitable employment'' for ``suitable work'' under State law and 
eliminates the reference to ``affording a reasonable expectation of 
employment of long-term duration'' because the concept of long-term 
employment is substantially included in the definition of ``suitable 
employment.'' Proposed paragraph (a)(5) also adds ``employment that 
pays a wage of at least the 75th percentile for national wages, as 
determined by the National Occupational Employment Wage Estimates.'' 
This alternative ensures that AAWs who obtain or receive a bona fide 
offer of a job that otherwise meets the suitable employment definition 
except that it pays a wage of at least the 75th percentile of national 
wages, rather than paying at least 80 percent of the AAW's previous 
wage, would still be eligible for relocation allowances.
    Therefore, before granting a relocation allowance, the State must 
determine that an AAW has no reasonable expectation of securing 
suitable employment in the commuting area. This is consistent with the 
treatment of job search allowances, and, as explained earlier, is in 
many States likely to be a higher standard than the suitable work 
standard used in 20 CFR part 617. Using suitable employment in the 
eligibility criteria for relocation allowances limits the jobs for 
which a State may pay a

[[Page 60173]]

relocation allowance. However, the Department has concluded this 
proposed change would increase workers' options. The change would 
permit more AAWs to use a relocation allowance to secure suitable 
employment or other high-paying employment outside the commuting area, 
rather than settle for suitable work within the commuting area. And 
AAWs who are eligible for the job search allowance, and thereby find 
suitable employment or other high-paying employment, will similarly be 
eligible to relocate to that same suitable employment by using a 
relocation allowance.
    Two other significant differences between proposed Sec.  618.445 
and 20 CFR part 617 involve the timing of relocations. First, proposed 
paragraph (a)(6) integrates 20 CFR 617.42(a)(7) and 617.43 and simply 
states the two statutory 182-day time limits for beginning a 
relocation, instead of stating that an AAW must begin a relocation 
``within a reasonable period'' and later elaborating on what is a 
reasonable period merely by providing the same deadlines as in this 
proposed paragraph (a)(6). Proposed Sec.  618.445 omits references to 
reasonable period to begin a relocation because the firm deadlines 
provided for an AAW beginning a relocation are sufficient, and render 
moot the references to a reasonable period. Proposed paragraph (a)(7) 
requires an AAW to complete the relocation within a ``reasonable time'' 
under the FTR, while retaining the required factors in 20 CFR 617.43(a) 
that a State must consider in determining whether a worker has 
completed the relocation within a reasonable time.
    The second significant difference involves the statutory 182-day 
time limit in which the relocation must occur. TAARA 2002 amended sec. 
238(c)(2) of the Act, which requires the AAW's relocation to occur 
within 182 days after the conclusion of an approved training program, 
by adding at the end of the provision the alternative condition ``if 
the worker entered a training program approved by the Secretary under 
[sec.] 236(b)(1) and (2)'' (which govern supplemental assistance for 
workers in training outside the commuting area). All workers who 
conclude TAA approved training must apply for a relocation allowance no 
later than the 182nd day after concluding such training, in accordance 
with sec. 238(a)(2)(E)(ii) the Act and proposed Sec.  
618.445(a)(1)(ii). However, the Department interprets sec. 238(c)(2) of 
the Act to mean that an AAW approved by the State, under proposed Sec.  
618.640(c) and (d), to receive subsistence and transportation payments 
(supplemental assistance) for training at facilities outside the 
worker's commuting area, must also begin the relocation within 182 days 
after completing training, the same as the relocation allowance 
application deadline. In contrast, AAWs who are not approved by the 
State to receive subsistence and transportation payments, because they 
receive training within their commuting area, may begin relocation 
within 182 days after applying for a relocation allowance, which 
effectively permits these workers to begin relocation much later than 
workers who receive supplemental assistance in training.
    Proposed Sec.  618.445 also makes one minor change. Proposed 
paragraph (a)(1) provides the time limits within which an AAW must 
apply for a relocation allowance. It contains the same requirements as 
20 CFR 617.31(c), but is proposed to be moved here for better 
organization.
Section 618.450 Findings Required
    Proposed Sec.  618.450 regarding ``findings required'' is the 
counterpart to 20 CFR 617.44 and further delineates the 
responsibilities between a liable State and an agent State with respect 
to relocation allowances when a relocation occurs in a different State 
than the liable State. Proposed subpart H establishes the 
responsibilities of the liable State and the agent State. Specifically, 
proposed Sec.  618.824 establishes that the liable State makes all 
determinations on each claim for program benefits, and the agent State 
pays the costs for job search and relocation allowances.
    Proposed Sec.  618.450 mirrors 20 CFR 617.44(a), with a change. 
Proposed paragraph (a)(1) adds a new requirement that, as a condition 
of approving final payment of a relocation allowance, the AAW is not 
simultaneously receiving a job search allowance. This is the same 
prohibition contained in the eligibility requirements in proposed Sec.  
618.445(b). This provision is proposed for the first time and has no 
comparable counterpart in existing regulations or in administrative 
guidance.
Section 618.455 Determining the Amount of a Relocation Allowance
    Proposed Sec.  618.455, on determining the amount of a relocation 
allowance, consolidates, reorganizes, and updates the requirements in 
20 CFR 617.45 (Amount), 617.46 (Travel allowance), and 617.47 (Moving 
allowance). A relocation allowance includes, with specified 
qualifications, 90 percent of the travel and subsistence costs of the 
AAW and their family to reach their new home, 90 percent of the cost of 
moving household effects, and a lump sum equal to three times the 
worker's average weekly wage, not to exceed $1,250. The lump sum 
maximum reflects the statutory limit and is an increase from the $800 
maximum provided in 20 CFR 617.45(a)(3). Proposed Sec.  618.455 
requires States to follow the FTR but eliminates the specific citation 
to FTR sections. Proposed paragraph (a)(1) refers to 41 CFR chapter 301 
(travel) and proposed paragraph (a)(3) refers to 41 CFR chapter 302 
(movement of household goods). Proposed paragraph (a)(2) sets 
reimbursement amounts for the family's meals and lodging at 90 percent 
of the lower of their actual meals and lodging costs or one-half the 
applicable prevailing per diem rates in the FTR. The current per diem 
rates can be found on the internet using the ``per diem rates'' 
hyperlink at: https://www.gsa.gov. Proposed paragraph (a)(3)(ii) 
increases the allowable amount of insurance coverage of such household 
goods and effects to $40,000 from $10,000, found in 20 CFR 
617.47(a)(1). The Department first introduced the allowable amount of 
insurance coverage of $10,000 in Sec.  635.47(a)(1) of regulations 
proposed by the Department on March 4, 1983 (48 FR 9444), and finalized 
on December 22, 1986 (51 FR 45840), with an effective date of January 
21, 1987. The Department has determined that $10,000 is no longer an 
appropriate level of insurance coverage as households' accumulated 
goods and effects have increased in value due to inflation and rising 
household incomes since 1987. While no measure tracks the value of 
accumulated household goods and effects, a proxy is the core Personal 
Consumption Expenditures (PCE). Core PCE measures, for all households, 
personal expenditures on goods and services, excluding food and energy. 
It follows that the accumulated value of goods a household owns, and 
would move and require to be insured, is correlated with the annual 
amount spent on goods and services by households. According to the 
Bureau of Economic Analysis, the core PCE increased from $2,443 billion 
in January 1987 to $11,626 billion in January 2018.\9\ This increase in 
PCE by a multiple of 4.76 is a proxy for the increase in the value of 
goods a household would need to have insured. Therefore, proposed 
paragraph (a)(3)(ii)

[[Page 60174]]

conservatively increases the allowable insurance coverage by a multiple 
of 4, from $10,000 as established in 1987, to $40,000.
---------------------------------------------------------------------------

    \9\ Federal Reserve Bank of St. Louis. (2018). ``Personal 
consumption expenditures excluding food and energy 
[DPCCRC1M027SBEA].'' Retrieved from: https://fred.stlouisfed.org/series/DPCCRC1M027SBEA.
---------------------------------------------------------------------------

    Proposed Sec.  618.455 omits the more detailed provisions for 
trailers, rental trucks, house trailers, and temporary storage 
contained in 20 CFR 617.47. These detailed requirements are unnecessary 
and better addressed by the FTR. The Department notes that moving a 
house trailer or mobile home, as permitted under proposed paragraph 
(a)(3)(i), has special requirements under the FTR, at 41 CFR part 302-
10, of which the worker must be notified before planning such a move.
Section 618.460 Determinations and Payment of a Relocation Allowance
    Proposed Sec.  618.460 regarding determinations and payment of a 
relocation allowance serves the same purpose as 20 CFR 617.48 (Time and 
method of payment), with some changes and reorganization. Nothing in 
proposed Sec.  618.460 departs in substance from 20 CFR 617.48 except 
for the requirements that an AAW be covered by a certification as a 
condition of the State accepting an application, and that workers 
submit documentation supporting all lodging, transportation, and meal 
expenses to be reimbursed by the State. This documentation requirement 
is proposed for the same reasons it has been proposed for workers 
seeking reimbursement of expenses from a job search allowance. Proposed 
Sec.  618.460 otherwise reorganizes the provisions of 20 CFR 617.48 and 
revises them for greater clarity.
    Proposed paragraphs (a) and (b) contain and somewhat revise the 
requirements in 20 CFR 617.48(a). Proposed paragraph (a) departs from 
20 CFR 617.48(a) by omitting any reference to determinations before a 
worker becomes an AAW; this reflects that proposed subpart D does not 
provide for applications before the Department issues a certification. 
Proposed paragraph (a) also newly requires States to promptly make and 
record determinations as well as include copies of job search allowance 
applications and determinations in the AAW's case file. This provision 
has no comparable counterpart in existing regulations or in 
administrative guidance. This is to ensure proper administration of job 
search allowances and mirrors the requirement for job search allowances 
in proposed Sec.  618.430(a). Proposed paragraph (b) includes 
provisions from 20 CFR 617.48(a).
    Proposed paragraph (c) specifies what the AAW must provide for 
expenses to be reimbursed by a State under a relocation allowance. This 
would clarify 20 CFR 617.48(b)(1)(ii) by requiring workers to provide 
documentation in accordance with the FTR and the Uniform Guidance. At 
the time of this proposed publication, this includes receipts for all 
lodging, purchased transportation, and any expense equal to or greater 
than $75.00. Proposed paragraphs (d), (e), and (f) incorporate the 
provisions from 20 CFR 617.48(b), (c), and (d).

E. Subpart E--Reemployment Trade Adjustment Assistance

    Proposed subpart E governs RTAA. TGAAA established the RTAA program 
to replace the demonstration project known as ATAA, established by 
TAARA 2002. This proposed subpart prescribes regulations implementing 
provisions in sec. 246 of the Act and incorporates administrative 
guidance. There are no existing regulations covering the RTAA program.
    RTAA provides wage supplements to eligible AAWs, aged 50 and older, 
who return to work earning less than their adversely affected 
employment and $50,000 or less per year. AAWs receiving RTAA may also 
be eligible to receive employment and case-management services, job 
search and relocation allowances, and TAA approved training. If the 
HCTC benefit is available, RTAA recipients are eligible to apply for or 
claim the HCTC. The goal of RTAA is to encourage reemployment for older 
workers who may find it difficult to secure a new job that pays as much 
as their old job.
    Section 246(a)(3) of the Act sets forth the eligibility criteria 
for RTAA. An AAW is eligible for RTAA after beginning a new, full-time 
job at a firm other than the one from which the AAW was separated (or 
combination of jobs at firms that equate to full-time employment) that 
pays less (or collectively pays less if a combination of jobs) than the 
AAW's adversely affected employment, or after beginning TAA approved 
training while reemployed at least 20 hours per week at a new job with 
a firm other than the one from which the AAW was separated.
    Compared to ATAA, RTAA expands the range of benefits available by 
permitting training while receiving RTAA, and by allowing receipt of 
RTAA after such training is completed, if the AAW otherwise meets 
eligibility requirements. This proposed subpart permits eligible AAWs 
to remain eligible for RTAA when employed part-time, provided that the 
AAW is enrolled in TAA approved training. Some AAWs may receive a TRA, 
the income support component of TAA, before receiving their first RTAA 
benefit payment. For such workers, sec. 246(a)(4) of the Act requires 
reduction in the RTAA eligibility period by the number of weeks of TRA 
received as well as a reduction in the maximum RTAA amount payable.
Section 618.500 Scope
    Proposed Sec.  618.500 provides the scope of this subpart and 
addresses the governance of RTAA. An AAW may combine wage supplements 
with other benefits and services, including employment and case 
management services, TAA approved training, job search and relocation 
allowances, and, if available, the HCTC.
Section 618.505 Individual Eligibility
    Proposed Sec.  618.505 enumerates the eligibility criteria for 
RTAA, as set forth in sec. 246 of the Act. Proposed paragraph (a) 
outlines the general age, wage, and reemployment requirements to be 
eligible for RTAA. An AAW, aged 50 or older, is eligible for RTAA if 
the following criteria are met:
    (1) The AAW must have a full-time job (or combination of jobs that 
equate to full-time employment as defined by State UI law) or a job of 
at least 20 hours per week while enrolled in TAA approved training;
    (2) The qualifying job in criterion 1 must pay less (or 
collectively pays less if a combination of jobs) than the AAW's 
adversely affected employment;
    (3) The AAW must be earning wages that do not exceed $50,000 over a 
12-month period; and
    (4) The qualifying job in criterion 1 above is not at the firm from 
which the AAW was separated.
    Proposed paragraph (b) explains terms specifically for the purposes 
of RTAA. As explained in more detail in the preamble to subpart A, the 
proposed definition of ``firm'' revises the term at 29 CFR 90.2. Of 
note, the proposed definition of ``firm'' incorporates the definition 
set forth at sec. 247(3) of the Act. Pursuant to the Act, the term 
``firm'' means ``a firm, including an agricultural firm or service 
sector firm; [or] an appropriate subdivision thereof.'' Therefore, the 
term ``firm'' in the RTAA context means ``firm or appropriate 
subdivision.''
    This definition of ``firm'' is used by the Department to identify 
the ``firm'' in the certification. To determine that an AAW is eligible 
for RTAA, the State must make a finding that the new employment 
obtained by the worker is not at the ``firm'' from which the worker was 
separated and that forms the basis for the worker's applicable 
certification.

[[Page 60175]]

A State must determine what constitutes the ``firm'' for purposes of 
determining RTAA eligibility on a case-by-case basis, depending on the 
certification. A certification may cover one or more worker groups at 
either an entire firm or one or more subdivisions of a firm located in 
one or several States. Proposed paragraph (b)(1) provides instructions 
to States on how to make decisions relative to determining RTAA 
eligibility based on whether or not the Department issued a 
certification for a subdivision of a firm or the entire firm. Proposed 
paragraph (b)(2) explains that the term ``firm'' includes predecessors 
and successors-in-interest, affiliated firms, and continuity of 
operations at the same location. The proposed regulatory text 
establishes several criteria in descending order that the State should 
apply to determine whether one firm is a successor-in-interest to 
another, including a list of conditions at paragraphs (b)(3)(i) through 
(vii) that a State may need to consider when rendering a determination. 
The intent of this provision is to assist States in determining whether 
the worker has become employed by a ``firm'' that is different from the 
``firm'' from which the worker was separated in accordance with sec. 
246(a)(3)(B)(iv) of the Act.
    Proposed paragraph (c) explains that, for purposes of RTAA, full-
time employment is defined by the law applicable to the State in which 
the reemployment occurs. The Department proposes to define State law in 
Sec.  618.110 as the State UI law. Following longstanding practice, 
State UI law means State statutory provisions and their implementing 
regulations. In the absence of State statutory provisions and 
regulations, State law may be determined via State court decisions, 
program letters, manuals, and any other State documents interpreting 
State UI law. Thus, even if a State did not define full-time employment 
in the State code, a definition contained in another State-issued 
document would apply. Proposed paragraph (c)(1) explains that if State 
law does not contain a definition of full-time employment, the State is 
required to define full-time employment for RTAA purposes. Proposed 
paragraph (c)(2) requires the State to verify reemployment in 
accordance with State policies. Verification of the firm can occur by 
such communication methods as email, phone call, certified letter, or 
other means determined by the State. Proposed paragraph (c)(3) 
establishes that if an AAW has multiple jobs, the State must combine 
hours of all employment to determine whether the worker meets the 
definition of full-time employment. Proposed paragraph (c)(4) provides 
that if the worker is employed in more than one State, the State must 
apply the State law with the lowest threshold of hours required for 
full-time employment.
    Proposed paragraph (d) provides that an application or eligibility 
for UI is not needed for RTAA purposes. There is no direct relationship 
between UI and RTAA. Eligibility for RTAA is not dependent on 
eligibility for UI.
    Lastly, proposed paragraph (e) explains the types of employment 
that are considered qualifying reemployment for RTAA. Proposed 
paragraph (e)(1) establishes that qualifying reemployment under RTAA is 
the same as covered employment for UI purposes. This provides 
uniformity in administration. It also provides efficiency, since the 
rules for covered employment for UI are well defined and familiar to 
State administrators. However, this paragraph requires that the 
employment be legal under Federal, State, and local laws. The 
Department recognizes that there are situations where certain 
employment may be legal under local or State law but illegal under 
Federal law. The Department is establishing a requirement that to be 
qualifying reemployment, the employment must be legal at all levels of 
government. Proposed paragraph (e)(2) explicitly allows a State to 
consider employment that provides wages plus commission, and piecework-
based employment to be reemployment when determining RTAA eligibility. 
The Department proposes to authorize these specific types of employment 
to ensure that States are not limiting reemployment opportunities. 
Proposed paragraph (e)(3) provides that qualifying reemployment may 
include multiple jobs. In some instances, an AAW may have multiple 
part-time jobs instead of a single full-time job. This flexibility will 
allow AAWs to combine multiple part-time jobs to be considered full-
time employment. Proposed paragraph (e)(4) provides that the State must 
count hours in which an RTAA-eligible worker is on employer-authorized 
leave as hours of work for purposes of meeting the full- or part-time 
employment definitions of this section, provided that doing so is 
consistent with State law. The Department found that States were not 
counting holidays or leave as hours of employment. This resulted in 
States disqualifying AAWs when there was a paid, observed holiday 
because the AAW did not ``work'' those hours, or in instances where the 
worker may have used a sick day.
Section 618.510 Eligibility Period for Payments of Reemployment Trade 
Adjustment Assistance and Application Deadline
    Proposed Sec.  618.510 sets forth the eligibility period for 
payments of RTAA as provided by sec. 246(a)(4) of the Act. Proposed 
paragraphs (a) and (b) of this section explain the differences in 
eligibility periods for AAWs that have not received TRA and those that 
have received TRA, respectively. Proposed paragraph (a) provides that 
for an AAW who has not received TRA, the worker may receive RTAA 
benefits for a period not to exceed 104 weeks (2 years) beginning on 
the earlier of: The date on which the worker exhausts all rights to UI 
based on the separation of the worker from the adversely affected 
employment that is the basis of the certification; or, the date on 
which the worker first begins qualifying reemployment as described in 
Sec.  618.505(e). Proposed paragraph (b) provides that for a worker who 
has received TRA under a certification, the worker may also receive 
RTAA benefits for a period of 104 weeks (2 years) beginning on the date 
on which the worker first begins qualifying reemployment, reduced by 
the total number of weeks for which the worker received TRA. Proposed 
paragraph (c) describes that the State will need to know certain 
applicable dates before making an RTAA determination.
    Proposed paragraph (d) establishes an exception to the general rule 
that all events to establish RTAA eligibility occur when the individual 
turns 50 years old. Proposed paragraph (d) provides that the AAW may 
obtain reemployment before the age of 50, which later may be deemed as 
RTAA-qualifying reemployment when the AAW turns 50. It is at this time 
(after turning 50) that the AAW may be potentially RTAA-eligible, if 
all other eligibility requirements are met. This is because upon 
obtaining the reemployment, which is a date certain, the State can 
establish the RTAA eligibility period (104 weeks or 2 years, as the 
case may be) and when the AAW turns 50, they may be eligible during the 
remaining RTAA eligibility period. The AAW potentially is eligible if 
the eligibility period is established sometime after turning 48 and 
consequently such period expires after turning 50. If the RTAA 
eligibility period has expired by the time the AAW turns 50, the AAW 
will not be eligible for RTAA. This would foreclose the opportunity for 
an AAW whose RTAA-eligibility period is established before turning 48 
and consequently expires

[[Page 60176]]

before turning 50. Furthermore, if the AAW obtains employment before 
age 48, and is not eligible for RTAA at 50, because the 104-week 
eligibility has expired, the worker cannot obtain other employment to 
establish RTAA eligibility based on an eligibility period established 
with subsequent employment after turning 48, and thereafter. RTAA is 
for workers 50 or older and the Department concludes this worker 
readjusted.
    Proposed paragraph (e) allows for exceptions to the eligibility 
periods set forth in paragraphs (a) and (b) as well as to the overall 
filing deadline in instances of judicial appeals, where the Department 
later grants a certification of the worker group covered by that 
petition and the ITC has not indicated that a delay in the 
certification was attributed to either the petitioner or the AAW.
Section 618.515 Continuing Eligibility and Timing of Payments
    Proposed Sec.  618.515 explains the requirements for an AAW's 
continued eligibility under RTAA and the timing of payments. Proposed 
paragraph (a)(1) allows workers to change jobs without loss of access 
to RTAA so long as the worker continues to meet other eligibility 
criteria. Proposed paragraph (a)(2) prohibits the payment of RTAA 
during a period of unemployment and provides that the AAW may resume 
receipt of RTAA payments upon obtaining qualifying reemployment for the 
remaining portion of the eligibility period. Section 246(a)(7) of the 
Act prohibits payment of TRA and RTAA for the same week.
    Proposed paragraph (a)(3) establishes a requirement that if the 
computed annualized reemployment wages exceed $50,000, no additional 
RTAA payments may be made unless conditions change again, resulting in 
recomputed annualized reemployment wages of $50,000 or less. This 
provision is established to reduce the likelihood and number of 
overpayments that would otherwise occur.
    Proposed paragraph (b) addresses the timing of RTAA payments and 
continues a longstanding practice allowing States to pay RTAA on a 
weekly, biweekly, or monthly basis, for not more than a 104-week period 
(2 years) under any one certification, beginning no earlier than the 
date of qualifying reemployment under Sec.  618.505. This proposed 
regulatory text also allows for retroactive payments, including a lump 
sum payment, for which an AAW may have been eligible but who may not 
have known such benefit was available at the time. The Department has 
established this provision to require regular payments to RTAA-eligible 
workers. This allows workers to anticipate regular payments, as this 
may have been one of the factors in their decision to seek qualifying 
reemployment and the RTAA benefit.
    Proposed paragraph (c) requires the State to verify, on at least a 
monthly basis, that the AAW continues to meet the eligibility 
requirements for RTAA. The proposed regulatory text requires the State 
to determine whether any changes have occurred to the worker's 
reemployment wages. The NPRM also requires the State to determine 
whether any changes have occurred to the participant's annualized 
reemployment wages. This is established to reduce the likelihood and 
number of overpayments that would otherwise occur.
    Proposed paragraph (d) establishes procedures for States to 
recompute the appropriate RTAA payment based on a change in annualized 
reemployment wages. These two provisions are added to reduce the 
likelihood and number of overpayments that would otherwise occur. 
Proposed paragraph (d)(1) requires States to cease additional payments 
and issue a determination to a participant if the annualized 
reemployment wages exceed $50,000 or if the annualized reemployment 
wages equal or exceed the annualized separation wages. Proposed 
paragraph (d)(2) requires States to adjust the RTAA payment if the 
annualized reemployment wages change but do not exceed $50,000 or the 
annualized separation wages.
Section 618.520 Benefits Available to Eligible Adversely Affected 
Workers
    Proposed Sec.  618.520 details the benefits available under RTAA as 
provided by sec. 246 of the Act. Benefits available include wage 
subsidies, training, job search and relocation allowances, and, if 
available, the HCTC. Proposed paragraph (a) explains that eligible RTAA 
AAWs may receive a total payment of up to $10,000 over a period of not 
more than 104 weeks. Proposed paragraph (a)(1) provides that the total 
amount of RTAA benefit available to an eligible AAW is an amount equal 
to the annualized wage differential as computed under proposed 
paragraph (a)(2) or (3) of this section. Proposed paragraph (a)(2) 
provides, for initial eligibility, the computation of the annualized 
wage differential for an AAW employed full-time, while proposed 
paragraph (a)(3) provides the computation of the annualized wage 
differential, for initial eligibility, for an AAW employed at least 20 
hours per week, and enrolled in TAA approved training. The annualized 
wage differential in either instance is a percentage of the difference 
between the wages received by the AAW at the time of separation and the 
wages received by the AAW from reemployment. RTAA benefits are not 
available if the AAW's annualized separation wages do not exceed the 
AAW's annualized reemployment wages. This is because sec. 246(a)(2)(A) 
of the Act establishes the RTAA benefit as 50 percent of the difference 
between the wages received by the worker at the time of separation and 
the wages at reemployment. If the wages at reemployment are equal to or 
greater than the wages at separation, the result would be zero or a 
negative number.
    Proposed paragraph (a)(2) provides that for an eligible AAW 
employed full-time, the annualized wage differential is an amount equal 
to 50 percent of the result of the AAW's annualized wages at separation 
minus the AAW's annualized wages from reemployment.
    Proposed paragraphs (a)(2)(i) and (ii) provide the computations for 
annualized wages at separation and annualized wages from reemployment, 
respectively. A State would compute annualized wages at separation by 
multiplying the AAW's hourly rate during the last full week of the 
AAW's regular schedule in adversely affected employment by the number 
of hours the AAW worked during the last full week of such employment, 
multiplied by 52 (i.e., the number of weeks in a year). Proposed 
paragraph (a)(2)(i) refers to the AAW's ``regular schedule'' and also 
excludes certain types of compensation from the meaning of ``wages,'' 
because certain types of work hours and compensation are too 
speculative and cannot be anticipated in computing annualized wages 
from reemployment under paragraph (a)(2)(ii) of this section. Thus, a 
State would exclude overtime wages and hours from the computation of 
annualized wages at separation, along with employer-paid health 
insurance premiums, employer pension contributions, bonuses, severance 
payments, buyouts, and similar payments too variable to properly be 
included in the AAW's regular weekly pay computation. Finally, the 
computation of annualized wages at separation uses wages earned only in 
the last full week of the AAW's regular schedule in adversely affected 
employment, rather than, for example, the AAW's wages during the 
preceding 12-month period. This is because the Act describes the 
formula as using the wages received by the AAW ``at the time of 
separation.'' The Department concludes that this language requires

[[Page 60177]]

reliance on regular wages toward the end of an AAW's adversely affected 
employment, rather than during a longer period of time. In the case of 
an AAW who had a partial separation that resulted in a reduction of the 
AAW's wage or hours, the computation of annualized wages at separation 
is based on the wages or hours immediately before the partial 
separation went into effect. Proposed paragraph (a)(2)(i) does not 
explicitly address computation of annualized wages at separation for 
AAWs experiencing partial separations because the computation as 
provided already is sufficient to address partial separations. So long 
as an AAW experiences reductions in both hours and wages to 80 percent 
of their previous amounts, the AAW's computations are the same as those 
for an AAW who experiences a total separation from adversely affected 
employment.
    Proposed paragraph (a)(2)(ii) computes the annualized wages from 
reemployment. The Department proposes here the same criteria for work 
hours and compensation used for annualized wages at separation, in 
order to ensure a fair and logical comparison. Proposed paragraph 
(a)(2)(ii) computes these annualized wages by multiplying the AAW's 
hourly rate during the first full week of reemployment by the number of 
hours the AAW worked during the first full week of such reemployment, 
multiplied by 52 (i.e., the number of weeks in a year). This 
computation requires combining wages or hours from all jobs, because 
proposed Sec.  618.505(c)(3) provides that full-time employment may 
include any combination of part-time jobs. However, as is the case for 
the computation of annualized wages at separation, the computation of 
annualized wages from reemployment excludes overtime hours and wages; 
employer-paid health insurance premiums; employer pension 
contributions; bonuses; severance payments; buyouts; and similar 
payments not reflective of weekly pay. For an AAW's initial RTAA 
determination, the computation of annualized wages from reemployment 
uses wages earned in the first full week of reemployment because that 
amount is the only available at the outset of an AAW's reemployment. 
Tips are not included in the proposed computation of annualized wages, 
either at separation or from reemployment. The Department recognizes 
that tips are, in fact, an expected form of income supplementing 
regular wages for restaurant servers and perhaps for workers in other 
occupations. However, the Department proposes excluding them from the 
computations in paragraphs (a)(2)(i) and (ii) because, like other forms 
of irregular compensation excluded in RTAA computations, they vary in 
amounts and are unpredictable.
    Proposed paragraph (a)(3) governs the computation of the annualized 
wage differential for initial eligibility of an AAW working at least 20 
hours per week and enrolled in TAA approved training. This computation 
is required by sec. 246(a)(6) of the Act and is the same as under 
proposed paragraph (a)(2) for an AAW reemployed full-time except for 
the percentage reduction applied to the difference between the wages 
received by the AAW at the time of separation and the wages received by 
the AAW from reemployment. As is the case with an AAW reemployed full-
time, proposed paragraph (a)(3) provides that, as part of the RTAA 
benefit amount computation for an AAW reemployed part-time, the amount 
of annualized wages from reemployment is multiplied by the ratio of the 
AAW's number of weekly hours of reemployment to the AAW's number of 
weekly hours of employment at the time of separation, not to exceed 50 
percent.
    Proposed paragraph (b) incorporates the provision of the Act at 
sec. 246(a)(2)(C) that allows RTAA recipients to receive training and 
other services, including employment and case management services. The 
Department addresses these services in proposed subparts F (training) 
and C (employment and case management).
    Proposed paragraph (c) explains that RTAA recipients are otherwise 
eligible for job search and relocation allowances, subject to the 
provisions of subpart D.
    Proposed paragraph (d) incorporates sec. 246(a)(2)(B) of the Act 
that permits eligible RTAA recipients to apply for the HCTC, if 
available, to assist in paying their health coverage premiums.
    Lastly, proposed paragraph (e) establishes the restriction that 
once an AAW has received a payment under RTAA, they are no longer 
eligible to receive TRA. Section 246(a)(4)(B) of the Act provides that 
an AAW may receive RTAA after receipt of TRA and also provides that a 
State must reduce RTAA payments as a result of receipt of TRA. The Act 
does not provide that recipients of RTAA may receive TRA at a later 
date. In order to limit the administrative complexity of allowing 
eligible AAWs to move back and forth between RTAA and TRA, this NPRM 
prohibits receipt of TRA after RTAA. This has been the operating policy 
of the Department since TAARA 2002.
Section 618.525 Determinations, Redeterminations, and Appeals
    Proposed Sec.  618.525 explains the requirements related to 
determinations, redeterminations, and appeals under RTAA. Proposed 
paragraph (a) provides that specified provisions in proposed subpart H 
concerning determinations, redeterminations, notice, and appeals and 
hearings apply to RTAA. Proposed paragraphs (a)(1) through (3) provide 
further procedural requirements specific to RTAA. Specifically, 
proposed paragraph (a)(1) provides that in reviewing the application, 
the State must verify and document the AAW's age, reemployment, and 
wages in determining whether the worker meets the individual 
eligibility criteria in proposed Sec.  618.505(a).
    Proposed paragraph (a)(2) provides that a determination of 
eligibility issued to an AAW must include a notice that the State will 
recompute regularly the benefit amount and may change it if the 
eligible AAW's wages in reemployment vary. RTAA payments frequently 
change; therefore, this requirement would prevent confusion as AAWs see 
their benefit amounts change.
    Proposed paragraph (a)(3) allows an AAW to file a new application 
each time the AAW is reemployed and obtain RTAA if the AAW meets the 
criteria of proposed Sec.  618.505(a) at the time of filing of the new 
application, even if the State has denied a prior application.
    Proposed paragraph (a)(4) provides that a State may approve a RTAA 
payment and pay it retroactively to an AAW who is covered by a TAA 
certification but who becomes reemployed before the Department issues 
the certification, provided the AAW otherwise meets eligibility 
requirements of Sec.  618.505(a). This is explained above in the 
discussion of proposed Sec.  618.505.
    Proposed paragraph (b) provides that the recordkeeping and 
disclosure of information requirements of proposed Sec.  618.852 apply 
to the State's administration of RTAA. The language of proposed Sec.  
618.852 already states that it applies to the administration of the 
Act, which includes RTAA; however, proposed Sec.  618.525(b) ensures 
there is no confusion concerning the applicability of proposed Sec.  
618.852 to RTAA.
Section 618.530 Reductions of RTAA Payments; Priority of Payments
    Proposed Sec.  618.530 explains the requirements related to the 
reduction of payments and the priority of payments under RTAA. Proposed 
paragraph (a) explains when a State can deduct court-

[[Page 60178]]

ordered child support payments from RTAA payments. A State must treat 
RTAA payments in the same manner as TRA. State laws regarding 
deductions of payments from UI and TRA must follow the Social Security 
Act (SSA). SSA sec. 303(e)(1) defines ``child support obligations'' as 
``only includ[ing] obligations which are being enforced pursuant to a 
plan described in [sec. 454 of SSA] which has been approved by the 
Secretary of Health and Human Services under part D of title IV of 
[SSA].'' SSA therefore does not permit deductions for alimony or for 
child support in general, but only for child support obligations of the 
type specified. Unemployment Insurance Program Letter (UIPL) No. 45-89 
(55 FR 1886, Jan. 19, 1990) explained in detail the deductions 
permitted under SSA sec. 303(e)(2). Proposed paragraph (b) provides 
that RTAA does not fit into the priority of payments under UI because 
this benefit is related to employment, not unemployment.

F. Subpart F--Training Services

    Proposed subpart F governs the training portion of the TAA Program. 
Training is an opportunity to gain skills and reenter the workforce 
after a total or partial separation or threat of separation from 
adversely affected employment. The TAA Program's goal is to help each 
trade-affected worker participating in the program obtain suitable 
employment when possible and nonsuitable employment otherwise. Training 
under the TAA Program should assist a trade-affected worker in 
obtaining the skills necessary for employment as quickly as possible 
and at a reasonable cost. With those principles in mind, training 
should allow workers to compete for the highest paying employment 
achievable given their preexisting skills, abilities, and education and 
the current and projected job market.
    Proposed subpart F sets out the regulations for administering the 
training benefit under the TAA Program. TAA approval of a training 
program entitles a trade-affected worker to the payment of the costs of 
that training and related costs, subject to a number of limitations 
described in this subpart. Participation in a TAA approved training 
program is an eligibility requirement for TRA, with certain exceptions, 
as explained in subpart G. Under sec. 236(a)(6) of the Act, however, 
workers may still be entitled to TRA and other TAA Program benefits if 
other funding sources pay all or part of the costs of a TAA approved 
training program.
    Subpart F applies the FTR at 41 CFR chapters 300 through 304 for 
use by States in providing TAA Program training participants with 
supplemental assistance in the form of subsistence and transportation 
benefits. This is not a new policy. The Department already enforces 
this requirement under several provisions in the existing regulations, 
including 20 CFR 617.27 and 617.28, which reference the use of the FTR. 
This ensures uniform interpretation of the FTR and access to 
subsistence and transportation benefits. TAA Program training 
participants travel under the same rules as employees of the 
Department. Some key changes covered in this proposed subpart include 
expansion of apprenticeship training; approvable part-time training; 
parameters for serving AAIWs; benchmark requirements to meet Completion 
TRA eligibility; and procedures for amending approved training 
programs.
Section 618.600 Scope
    Proposed Sec.  618.600 is new and provides the scope of proposed 
subpart F. This section has been added to give the reader a helpful 
overview of subpart F. This section explains that the goal of training 
is to help trade-affected workers obtain the skills necessary to get 
back to work as quickly as possible at a reasonable training cost. The 
type of reemployment aimed for is suitable employment. Obtaining 
suitable employment is an aspirational goal, but not a requirement. 
Training that leads to reemployment that pays as much or more than the 
trade-affected worker's adversely affected employment is another 
aspirational goal.
Section 618.605 General Procedures
    Proposed Sec.  618.605 is new and is derived, in part, from 20 CFR 
617.20. The proposed section discusses general procedures for trade-
affected workers to apply for training, as well as other procedures 
States must follow in making determinations on applications for 
training. Proposed paragraph (a) is new and was developed in 
conjunction with proposed subpart C in accordance with sec. 235 of the 
Act. It requires States to ensure that every trade-affected worker has 
an initial assessment and that a comprehensive and specialized 
assessment has been made available to them, as required in proposed 
subpart C. Assessments assist in the development of an IEP, as 
described in proposed subpart C, and must be in place before approving 
an application for training, or if not in place, the information 
necessary to determine eligibility for training must be collected and 
documented in the trade-affected worker's case file. The use of 
assessments in the development of a worker's IEP is essential to ensure 
proper coordination with WIOA. Assessments are the foundation of the 
worker's IEP and they ensure that the appropriate reemployment 
services, which may include training, are added to the IEP.
    Proposed paragraph (b) replaces 20 CFR 617.22(d) and addresses 
applications for training, as well as for transportation and 
subsistence payments. It reflects more accurately that applications 
must be made to the States in accordance with their policies and 
procedures. Because the use of forms will vary from State to State, the 
Department is not establishing specific requirements for their use or 
content and has instead referenced compliance with State policies and 
procedures.
    Proposed paragraph (c) expands upon 20 CFR 617.22(e) by adding that 
liable and agent State responsibilities apply to various types of 
decisions, and that decisions on whether to provide TAA Program-funded 
transportation and subsistence payments are determinations to which 
apply the sections on determinations and notice, liable and agent State 
responsibilities, and appeals and hearings. In order to comply with 
OMB's Uniform Guidance and documentation requirements to ensure access 
to due process, copies of such applications and all determinations by 
the State on whether to approve or deny the training, including whether 
to approve TAA Program-funded transportation and subsistence payments, 
must be included in the trade-affected worker's case file. The 
documentation may be made through paper or electronic records or a 
combination thereof.
    Proposed paragraph (d) revises 20 CFR 617.23(a) but retains its 
intent. Proposed paragraph (d)(1) requires the State to explore, 
identify, and secure training opportunities to ensure trade-affected 
workers return to employment as soon as possible. States must use all 
necessary and reasonable means to find appropriate training where no 
appropriate training opportunities exists. States, in collaboration 
with local workforce development boards (LWDBs), one-stop partners, and 
other partners, must explore how to make new training opportunities 
available either by approving out-of-area training or by encouraging 
training providers to provide needed training in the local area, as 
well as exploring ways in which work-based training (e.g., OJT, 
apprenticeships) and other types of training programs could be adapted 
to accommodate workers in disciplines that lack training opportunities. 
Proposed paragraph (d)(2) provides that

[[Page 60179]]

TAA Program funds may be used to create customized, group training 
opportunities. Funds may be used to create trainings including, but not 
limited to, remedial education classes, English language training, or 
contextualized occupational training, in order to serve a particular 
dislocation event where available education and training programs are 
not sufficient. Contextualized learning is training that combines 
academic and occupational training. The Department, through its 
oversight efforts, has observed that a large-scale dislocation can 
overburden a local area's resources for adult basic education or 
English language education. TAA Program funds can be used to add 
additional capacity when that occurs. Proposed paragraph (d)(3) 
requires States to coordinate with other public and private agencies, 
in cooperation with LWDBs established under WIOA to ensure a wide-range 
of training opportunities are available to trade-affected workers in 
demand occupations.
    Proposed paragraph (e) is a new provision, added for the first 
time, and has no comparable counterpart in existing regulations or in 
administrative guidance. It is authorized under sec. 225 of the Act. 
Proposed paragraph (e) allows training for trade-affected workers any 
time after their certification date without regard to whether such 
worker has applied for or exhausted UI. This new provision was added 
because the Department has discovered through monitoring and oversight 
activities that many States use the application for or filing of a UI 
claim to be the sole trigger for providing trade-affected workers with 
access to TAA Program benefits and services. Relying on this as the 
sole outreach strategy to assist trade-affected workers in applying for 
training may cause a delay in services. Section 225 of the Act makes 
clear that outreach to trade-affected workers should begin as soon as a 
certification is issued and that States must provide whatever 
assistance is necessary to enable trade-affected workers to prepare 
applications for program benefits, including training, in as timely a 
fashion as possible. States should use multiple strategies for 
providing trade-affected workers with access to TAA Program benefits 
and services.
Section 618.610 Criteria for Approval of Training
    Proposed Sec.  618.610, which corresponds to 20 CFR 617.22(a)(1) 
through (6), implements all six statutory criteria for training 
approval from sec. 236(a)(1)(A) through (F). The introductory language 
adds a new requirement that a State must refer to a trade-affected 
worker's initial or comprehensive and specialized assessments and IEP, 
if available, before approving training.
    Criterion 1, implemented by proposed paragraph (a), is modified 
from 20 CFR 617.22(a)(1). Section 236(e) of the Act provides the 
definition of ``suitable employment,'' which appears at proposed Sec.  
618.110. This is a change from 20 CFR 617.22(a)(1) where suitable 
employment is defined within the paragraph rather than in 20 CFR 617.3 
with the other definitions. A second change is the elimination of the 
requirement that no suitable employment is available outside the 
commuting area in an area in which the worker desires to relocate 
``with the assistance of a relocation allowance.'' The Department 
determined that the language in 20 CFR 617.22(a)(1)(i) created 
confusion as to whether an application for a relocation allowance is 
required before determining whether suitable employment is available 
outside the commuting area. The proposed change clarifies that only a 
trade-affected worker's stated intent to relocate to a different area 
is necessary, and this change is intended to eliminate undue delay in 
the training approval process. Proposed paragraph (a)(2) reflects minor 
changes to the phrasing of this criterion versus the language used in 
20 CFR 617.22(a)(1). However, there is no change to the intent.
    Criterion 2, implemented by proposed paragraph (b), contains 
similar requirements to 20 CFR 617.22(a)(2)(i) but rephrases and 
reorganizes them. Proposed paragraph (b)(1) emphasizes that for the 
trade-affected worker to benefit from appropriate training, the 
training must improve the worker's chances of obtaining employment than 
would occur without training. The training should also improve the 
worker's chances of either earning higher wages than would otherwise be 
the case or that the training will place the worker on a career pathway 
to do so. The change emphasizes that approved training can provide the 
worker with access to a career pathway that will lead to higher 
earnings, even if the initial placement does not. The Department 
concludes that the 20 CFR 617.22(a)(2)(i) criterion that the worker be 
job ready on completion of the training program is too vague and does 
not reflect the most effective or prudent course of action in workforce 
development programs on career pathways. These changes help ensure that 
the targeted employment is to be stable and long-term, with the 
potential for higher wages and growth opportunities for the worker.
    This change is also the result of evidence gathered from studies 
and evaluations of career pathways programs. The Department has 
recently published the results \10\ of a survey of evaluations of 
career pathways models. Of nine completed studies examining earnings, 
three found positive results, five found mixed results, and one found 
mostly negative results. Of 10 completed studies that examined 
educational outcomes, 7 found positive results, 1 found mixed results, 
and 2 found mostly negative results. Earnings impacts ranged from an 
increase of 17 percent to 32 percent in the random assignment studies.
---------------------------------------------------------------------------

    \10\ Abt Associates. (2018). ``Career Pathways Research and 
Evaluation Synthesis.'' Retrieved from: https://www.dol.gov/asp/evaluation/completed-studies/Career-Pathways-Design-Study/2-Career-Pathways-Research-and-Evaluation-Synthesis.pdf.
---------------------------------------------------------------------------

    Proposed paragraph (b)(2) follows 20 CFR 617.22(a)(2)(i) in 
requiring that a worker be capable of undertaking, making satisfactory 
progress in, and completing the training. However, the Department 
proposes substituting ``knowledge, skills, and abilities'' for ``mental 
and physical capabilities'' as the test for determining whether a 
worker can go through the training. This change is proposed to comply 
with laws that forbid the denial of training to an otherwise qualified 
trade-affected worker because of a disability. See sec. 504 of the 
Rehabilitation Act of 1973, as amended (29 U.S.C. 794) and its 
implementing regulations at 29 CFR part 32, and WIOA sec. 188 (29 
U.S.C. 3248) and its implementing regulations at 29 CFR part 38. Under 
both secs. 504 and 188, a qualified trade-affected worker in this 
context is one who satisfies the requisite skill, experience, 
education, and other training-related requirements, and who with or 
without a reasonable accommodation can perform the essential functions 
of such training. See also the definition of ``qualified handicapped 
individual'' in 29 CFR 32.3 and ``qualified individual with a 
disability'' in 29 CFR 38.4. For similar reasons, the NPRM also 
proposes replacing ``physical and mental capabilities'' in 20 CFR 
617.22(a)(5) and ``capabilities'' in 20 CFR 617.22(a)(6) with 
``knowledge, skills, and abilities'' in Sec.  618.610(e)(1) and (f)(1), 
respectively.
    Criterion 3 is implemented by proposed paragraph (c). It retains 
and expands on the provisions in 20 CFR 617.22(a)(3). This criterion 
requires States to assess, based on labor market information, whether 
trade-affected

[[Page 60180]]

workers who complete an approved training program are likely to find 
employment using the skills and education acquired while in the 
training. This criterion does not limit approval only to training 
programs that result in suitable employment (except for training 
programs that include OJT, which must lead to suitable employment with 
the employer offering the OJT). It is not always feasible to train 
trade-affected workers for suitable employment. Obtaining suitable 
employment is a goal, not an inflexible requirement, for the approval 
of training--except for OJT. However, the expectation is that all 
training leads to employment and is an inflexible requirement.
    Proposed paragraph (c)(1) is derived from 20 CFR 617.22(a)(3) and 
implements sec. 236(a)(3) of the Act, which states that ``a reasonable 
expectation of employment does not require that employment 
opportunities for a [trade-affected] worker be available, or offered, 
immediately upon the completion of approved training.'' In addition, 
paragraph (c)(1) requires that when initially approving such training, 
there must be a projection based on labor market information of 
employment opportunities expected to exist at the time of completion of 
the training program. This criterion requires the State to review 
current local labor market data and trends. As such, States should use 
real-time sources of State labor market information.
    Proposed paragraphs (c)(2) through (6) are new and based on 
established administrative guidance. They are proposed after 
consideration of Department monitoring and oversight findings and 
technical assistance requests. Paragraph (c)(2) requires States to 
measure expected job market conditions using pertinent labor market 
data, including job order activity, short-term projections data, job 
vacancy surveys, business visitation programs, and local and regional 
strategic plans. Paragraph (c)(2) also indicates that labor market 
information should be documented in the trade-affected worker's case 
file, and that the State should work with the LWDBs and its one-stop 
partners to understand current labor market conditions and 
opportunities for work-based learning.
    Proposed paragraph (c)(3) places a new obligation on the State when 
determining whether Criterion 3 is met, as part of the process of 
approving training for a trade-affected worker who desires to relocate 
upon completion of training. Under proposed paragraph (c)(3), the State 
must document the labor market information in the area to which the 
worker intends to relocate. This is because that is the area where the 
worker will be seeking employment upon completion of training and is 
the relevant labor market.
    Proposed paragraph (c)(4) recognizes that a demand for a single 
trade-affected worker trained in a specific occupation can exist in the 
local labor market and permits the State to determine that a reasonable 
expectation of employment exists in occupations where there are limited 
job openings. States must verify with businesses in the commuting area 
or in the area of intended relocation that such demand exists for a 
worker with such training, and these efforts must be documented in the 
trade-affected worker's case file. This situation may exist in smaller 
labor market areas or in larger areas where only a few skilled 
specialists are needed to meet the current demand (e.g., taxidermy or 
boat repair). However, States must ensure that they do not create an 
excess supply of trained workers where there is limited opportunity. In 
occupations with limited demand, the State must consider the number of 
workers currently enrolled in training that are likely to meet that 
demand prior to enrolling additional workers in training for that 
occupation.
    Proposed paragraph (c)(5) recognizes that self-employment may be a 
viable employment goal. States must review the labor market conditions 
to determine that the skills to be obtained in the training will lead 
to self-employment that will provide the trade-affected worker with 
wages or earnings at or near their wages in adversely affected 
employment.
    Proposed paragraph (c)(6) codifies the requirement in sec. 
236(c)(B)(i) of the Act that an OJT can only be approved that can 
reasonably be expected to lead to suitable employment with the employer 
offering the OJT.
    Criterion 4 is implemented by proposed paragraph (d) and 
corresponds to 20 CFR 617.22(a)(4), but is simpler, better organized, 
and free of outdated references. References to approval of training 
outside the trade-affected worker's commuting area for cost reasons 
have been moved to proposed paragraph (f), Criterion 6.
    Criterion 5, implemented by proposed paragraph (e), follows the 
requirements in 20 CFR 617.22(a)(5), but has been reorganized and some 
minor provisions have been added. Proposed paragraph (e)(1) modernizes 
the criterion's personal qualification language. Proposed paragraph 
(e)(2) adds a new requirement directing the State to review the trade-
affected worker's initial assessment, and the comprehensive and 
specialized assessment and IEP, if available, to determine if the 
proposed training is appropriate based on the worker's current skills. 
Proposed paragraph (e)(3) generally follows 20 CFR 617.22(a)(5)(ii), 
and stresses that the duration of the approved training must be 
commensurate with the worker's financial resources. Proposed paragraph 
(e)(3) also provides considerations for determining whether the worker 
has sufficient financial resources when the worker's remaining 
available weeks of UI and TRA payments will not equal or exceed the 
duration of the training. Proposed paragraph (e)(4) requires 
information to be documented by the State. Proposed paragraph (e)(5) 
reiterates 20 CFR 617.22(a)(5)(iii) with minor word changes.
    Criterion 6 is implemented by proposed paragraph (f) and generally 
follows and expands on 20 CFR 617.22(a)(6). Proposed paragraph (f)(1) 
provides that the determination must be appropriate given the trade-
affected worker's knowledge, skills, abilities, background, and 
experience as identified in proposed paragraph (e). States should 
compare the trade-affected worker's ability to undertake the training 
program against the worker's employment goals as identified through the 
criteria used in proposed paragraph (c) and determine if the training 
program is suitable based on that comparison. States should also 
examine the trade-affected worker's IEP, if available, but at minimum, 
must have the worker's stated employment goal. For example, if a trade-
affected worker's stated employment goal is to be a welder and their 
assessment results, education, past work history, and skills are all 
compatible with welding, and there is a demand for welders in the local 
labor market, and the training program will result in the worker being 
able to meet any certification standards required for a welding 
position, then the training program for this worker can be considered 
suitable.
    Proposed paragraph (f)(2) discusses reasonable cost. Reasonable 
cost is a critical determinant in approving training programs. The 
amount of training funds available to the States is limited by sec. 
236(a)(2)(A) of the Act and discussed in more detail in proposed 
subpart I. When training is approved, a trade-affected worker is 
entitled to payment of all the costs of the approved training. Due to 
these conditions, States must control training costs and approve only 
that training ``available at a reasonable cost.''
    Proposed paragraph (f)(2)(i) corresponds to 20 CFR

[[Page 60181]]

617.22(a)(6)(iii)(A) and provides examples of training-related costs 
that must be considered in the approval of training. The Department has 
expanded the list of examples from the list in 20 CFR 
617.22(a)(6)(iii)(A) to reflect common costs associated with training 
programs and to ensure that States fully understand the costs of a 
training program before they approve it. The list is not all-inclusive. 
States must ensure that training funds are expended wisely, are 
available for the maximum number of trade-affected workers, and will 
support workers to ensure that they will complete their selected 
training program. Proposed paragraph (f)(2)(i) also requires the State 
to ensure and document that the training program costs are reasonable 
by researching costs for similar training programs. States must exhaust 
alternatives before purchasing equipment or related materials for 
workers, to ensure that those purchases are truly necessary.
    Proposed paragraph (f)(2)(ii), based on 20 CFR 617.22(a)(6)(ii), 
generally prohibits the State from approving training when the costs of 
the training are unreasonably high in comparison with the average costs 
of training other workers in similar occupations at other providers. 
However, there may be instances where a higher cost training program is 
the better investment of funds, so the NPRM would allow a State to 
approve higher cost training if it is expected to achieve a higher 
likelihood of employment, employment retention, or wage replacement, or 
achieve comparable results in a significantly shorter duration, 
resulting in reduced weeks of TRA or a more rapid return to employment. 
Based on this standard, higher cost training must not be approved 
unless there is a clear difference in the quality and results of the 
training or unless comparable results can be achieved in a 
significantly shorter period of time. The latter standards are 
consistent with the Act's intent to get trade-affected workers back 
into employment as rapidly as possible. States should have well-defined 
policies and procedures addressing this topic to ensure consistency and 
clear explanations to workers. The definition of ``reasonable cost'' is 
further addressed in proposed Sec.  618.650.
    Proposed paragraph (f)(2)(iii) follows 20 CFR 617.22(a)(6)(iii)(C) 
in prohibiting approval where transportation or subsistence payments 
for training outside the trade-affected worker's commuting area adds 
substantially to the total cost of training, if other appropriate 
training in the commuting area is available at a lower cost. In 
addition, the Department relocated a portion of 20 CFR 617.22(a)(4)(ii) 
to proposed paragraph (f)(2)(iii) because it is more related to 
determining reasonable cost. Proposed paragraph (f)(2)(iv) is new and 
explains that approval of training under Criterion 6 is also subject to 
the provisions of Sec.  618.650.
Section 618.615 Limitations on Training Approval
    Proposed Sec.  618.615 discusses the various limitations on a 
State's approval of a training program. The NPRM relocates some of the 
limitations on approval of training provisions from 20 CFR 617.25 to 
sections other than proposed Sec.  618.615, where they more logically 
fit.
    Proposed paragraph (a)(1) retains the single training program rule 
of 20 CFR 617.22(f)(2). A training program may evolve over the trade-
affected worker's period of participation in the TAA Program. For 
example, during the training, the State may learn that the worker's 
program needs an OJT component, additional coursework, or remedial 
training to ensure employment. Changes to an ongoing training program 
are considered to be part of one training program. The only exception 
is discussed in proposed paragraph (d)(4) for certain workers who 
perform a period of military service. Proposed paragraph (a)(2) retains 
the State's ability to amend training programs, as explained in 
proposed Sec.  618.665. This provision is in 20 CFR 617.22(f)(3)(ii). 
Proposed paragraph (a)(3) codifies existing policy and operation that 
allows for a training program to consist of multiple types of training. 
For example, a single training program could consist of remedial 
training, occupational training, and an OJT.
    Proposed paragraph (b) corresponds to 20 CFR 617.22(f)(4) with 
respect to full-time training but differs significantly by permitting 
States to approve part-time training, as allowed under sec. 236(g) of 
the Act. Part-time training may be appropriate when trade-affected 
workers cannot undertake full-time training and the part-time training 
is reasonably expected to help them increase their earnings, ideally by 
helping them secure suitable employment. States must not approve part-
time training that does not meet these requirements.
    Proposed paragraph (b)(1) retains the provision in 20 CFR 
617.22(f)(4) that training is full-time if it is in accordance with the 
established hours and days (or credit hours) of the training provider.
    Proposed paragraph (b)(2) is new and discusses part-time training 
under the TAA Program. There is no corresponding language in part 617, 
because the Act did not allow part-time training when the regulations 
were last promulgated. Paragraph (b)(2)(i) provides that a State may 
approve part-time training. Proposed paragraph (b)(2)(i) also provides 
that the maximum duration for part-time approved training is the same 
as that for other approved training, as set out in proposed paragraph 
(d)(3)(i). Proposed paragraph (b)(2)(ii) implements sec. 236(g)(2) of 
the Act's restriction on payment of TRA to AAWs in part-time training. 
It also establishes that the training-approval requirements of this 
section apply to part-time training. Proposed paragraph (b)(2)(iii) 
clarifies that a trade-affected worker may participate in part-time 
training while employed either part-time or full-time. Proposed 
paragraph (b)(2)(iv) requires the State to inform an AAW who chooses 
part-time training that the worker will not be eligible for TRA and may 
lose HCTC eligibility, if available, while engaged in part-time 
training. AAIWs also should be informed of this in the event they are 
separated and become an AAW. However, AAIWs are not eligible for either 
TRA or the HCTC. Proposed paragraph (b)(2)(v) cross-references proposed 
Sec.  618.780(b)(1)(i), which provides that a State law cannot 
disqualify an AAW from receiving UI or TRA because such worker is 
enrolled in or participating in a training program approved under 
subpart F. However, an AAW enrolled in part-time training is not 
eligible for TRA and AAIWs are ineligible for TRA. Therefore, proposed 
paragraph (b)(2)(v) only specifies that State law cannot disqualify an 
AAW for UI because of part-time training. Proposed paragraph (b)(2)(vi) 
cross-references proposed Sec.  618.780(b)(1)(ii), which allows a 
trade-affected worker to refuse work to which the State agency referred 
the AAW because such work would either stop or interfere with 
participation in TAA approved training. Because AAWs enrolled in part-
time training are not eligible for TRA and AAIWs are not eligible for 
TRA, proposed paragraph (b)(2)(vi) specifies that this applies to UI or 
other program benefits.
    Proposed paragraph (c) generally follows 20 CFR 617.22(c), but adds 
language to clarify the process by which (pre-TAA Program) workers who 
are part of a group of workers that has not yet received a 
certification under proposed subpart B can transition to training under 
the TAA Program from training originally approved under another 
program, such as WIOA.

[[Page 60182]]

    Proposed paragraph (d)(1) provides a general statement of 
appropriate duration, requiring that the duration be appropriate to the 
skill level needed to facilitate reemployment. The training must be of 
suitable duration to achieve the desired skill level in the shortest 
possible time. Proposed paragraph (d)(2) describes factors that may 
impact the length of training, including a trade-affected worker's 
full- or part-time employment status, the need for supportive services 
from partner programs, and scheduled breaks in training.
    Proposed paragraph (d)(3) corresponds to 20 CFR 617.22(f)(2) and 
explains the maximum duration of approvable training. For most workers, 
the availability of income support is critical to their ability to 
engage in training. The Department interprets the Act to mean that the 
maximum number of weeks of training are intended to align with the 
maximum number of available weeks of income support. There is a maximum 
of 130 weeks of income support available to an AAW that is totally 
separated. This includes regular State funded UI, plus basic, 
additional, and Completion TRA. Therefore, paragraph (d)(3)(i) changes 
the 104-week regulatory limit on weeks of training to a total of up to 
130 weeks, except as otherwise provided for OJT and apprenticeship at 
proposed Sec.  618.635(a)(3) and (c)(1), respectively, and as provided 
for certain workers who perform a period of duty in the Uniformed 
Services in proposed Sec.  618.615(d)(4). Proposed paragraph (d)(3)(ii) 
updates 20 CFR 617.22(f)(3)(ii) by specifically stating the requirement 
of counting actual weeks of training when measuring the duration of 
training. Scheduled breaks in training are not counted as weeks in 
training.
    Proposed paragraph (d)(3)(iii), provides a pathway for approving a 
training program that exceeds the period during which TRA is available, 
as allowed under sec. 236(a)(9) of the Act, but is still within the 
maximum duration of training. It cross-references proposed Sec.  
618.610(e)(3), which provides the requirements for determining whether 
the trade-affected worker has sufficient financial resources available 
to support the worker through the completion of the training. Many 
training participants fail to complete training because they run out of 
income support. Notably, while AAWs are eligible for TRA, AAIWs are 
not. However, AAIWs will become AAWs if they are separated from 
adversely affected employment. Thus, both AAWs and AAIWs should be made 
aware of these limitations, and attention must also be paid to ensuring 
an AAIW has adequate financial resources to complete training. A State 
can approve a training program for longer than the duration of income 
support available if the State determines that the trade-affected 
worker has sufficient personal resources to support themselves while 
completing the training program. This does not mean that a trade-
affected worker is expected to obtain personal loans or other such 
funds that they do not already possess. The worker must attest to the 
State that they have sufficient resources to sustain themselves while 
in training. The Department encourages comments on the implementation 
of this requirement and this issue in general.
    Proposed paragraph (d)(4) implements sec. 233(i) of the Act, which 
creates an exception to the duration-of-training requirements for 
trade-affected workers who are also U.S. Armed Forces reservists 
ordered to active duty. There is no similar provision in 20 CFR part 
617. As Congress has made clear, these workers should not be penalized 
for serving their country. The exception tolls the duration-of-training 
requirement so that workers returning from an involuntary call to 
active duty can reenroll in a training program upon their return, begin 
a new training program, or repeat parts of the training, as necessary.
    Proposed paragraph (e) retains the provision in 20 CFR 617.22(i) 
that training must be within the United States. Proposed paragraph (e) 
clarifies this provision, explaining that both the trade-affected 
worker and the training provider (including providers of distance 
training) cannot be physically located outside the United States. 
Certain criteria for training approval, such as suitable employment, 
cannot be met if the worker is physically located outside of the United 
States. This provision is also consistent with Congress's intent in 
sec. 2 of the Act ``to foster the economic growth of and full 
employment in the United States'' and ``to safeguard American industry 
and labor.''
Section 618.620 Selection of Training Program
    Proposed Sec.  618.620, authorized by sec. 236(a)(5) of the Act, 
provides for the selection of training programs and has substantially 
changed from 20 CFR 617.23 due to statutory changes. Proposed paragraph 
(a) represents a change from the language at 20 CFR 617.23, which 
outlined the selection criteria for training programs and specified 
evaluation of a training provider's success by placement rates. The 
State must document the standards and procedures used to select 
training providers and training(s) in which the training program under 
this subpart will be approved. Proposed paragraph (a)(1) is similar to 
20 CFR 617.23(a) and (b) but updates the language to align with WIOA 
provisions. The Department suggests that the State work with partners 
and partner programs to identify jointly appropriate training programs 
in their communities that will assist trade-affected workers in 
obtaining work or place them on a career pathway towards suitable 
employment leading to higher wages.
    Proposed paragraph (a)(2) is new and allows a State to choose a 
training provider from the eligible training provider (ETP) list, 
established under WIOA, without establishing additional standards or 
procedures. Section 236(a)(5) of the Act prohibits States from limiting 
training available under the TAA Program to only those training 
providers on the ETP list.
    Proposed paragraph (b) addresses types of training. This replaces 
20 CFR 617.23(b) and (c)(1) and (2). The regulation at 20 CFR 617.23(b) 
is not carried forward into this NPRM in any manner. The regulation at 
20 CFR 617.23(c)(1) is replaced because the Act no longer establishes 
OJT as the preferred training method. Proposed paragraph (b)(1) 
describes work-based training and provisions for both AAWs and AAIWs. 
Although the Act no longer mandates work-based learning as the 
preferred training method, the Department maintains that work-based 
training options like apprenticeship, OJT, and customized training are 
excellent training options for establishing a career pathway and 
rapidly returning trade-affected workers to employment. Successful 
work-based training requires implementing the business engagement 
strategies developed under WIOA sec. 107(d)(4) in cooperation with the 
LWDBs.
    Proposed paragraph (b)(2), which describes institutional training, 
is derived from 20 CFR 617.23(c)(2), but does not contain the 
requirement establishing priority to public area vocational-technical 
schools. The Department has added the reference to community colleges 
in recognition of their importance to the nation's overall training 
efforts.
    Proposed paragraphs (b)(2)(i) through (iv) are new and based on 
established administrative guidance. These proposed paragraphs 
establish criteria for the approval of distance learning. Proposed 
paragraph (b)(2)(i) requires that the provider and trade-affected 
worker be located within the United

[[Page 60183]]

States. Paragraph (b)(2)(ii) requires the distance learning program to 
meet the criteria established under subpart F. Proposed paragraph 
(b)(2)(iii) requires the State to establish and monitor milestones of a 
distance learning program. This ensures that a trade-affected worker 
continues to make progress towards completing the training. Paragraph 
(b)(2)(iv) establishes that a trade-affected worker that fails to meet 
the milestones established in paragraph (b)(2)(iii) may be deemed to 
have ceased participation in training under subpart G (although AAIWs 
are ineligible for TRA, this may be helpful for States to use as a 
guideline). Proposed paragraph (b)(3) is new and defines the term 
``higher education'' in accordance with sec. 236(a)(5)(H) of the Act.
    Proposed paragraph (c), which provides a nonexclusive list of other 
specific types of approvable training programs, generally follows 20 
CFR 617.24(b) through (f). OJT, from 20 CFR 617.24(a), is discussed 
under Sec.  618.635(a). The Department is not retaining the heading of 
``Preferred Training,'' as there is no longer a preference requirement 
in the Act. The selection of training, as discussed in this subpart, 
must be based on the need of the trade-affected worker to return to 
employment. This paragraph adds career and technical education to the 
list of approvable types of training because they are included in the 
Strengthening Career and Technical Education for the 21st Century Act 
(Pub. L. 115-224 (2018)), which supersedes the Carl D. Perkins Career 
and Technical Education Act of 2006, which superseded the Vocational 
Education Act of 1963, to which sec. 236(a)(1)(D) of the Act refers.
    Proposed paragraph (d) is new and builds on proposed paragraph 
(b)(3) of this section and administrative guidance. It reflects the 
Department's conclusion that TAA Program funds can be used to provide 
training to trade-affected workers seeking to obtain an advanced degree 
or to complete coursework towards obtaining an unfinished advanced 
degree. It clarifies that workers who already possess an advanced 
degree or credential must not be denied further training for that 
reason alone. Approved training for advanced degrees is expected to be 
rare, and States must exercise special care to ensure that the costs 
are reasonable under the criteria in proposed Sec.  618.610(f)(2)(ii).
Section 618.625 Payment Restrictions for Training Programs
    Proposed Sec.  618.625 makes plain a series of restrictions on 
payments for training programs. It follows 20 CFR 617.25(b), but has 
been rewritten, simplified, and condensed. Proposed paragraphs (a)(1) 
through (3) are unchanged from 20 CFR 617.25(b)(1)(i) through (iii).
    Proposed paragraph (b)(1) replaces the last paragraph of 20 CFR 
617.25(b)(1). States must ensure that TAA Program funds are not used to 
duplicate payment of training costs by another source of funds. 
Proposed paragraph (b)(2) is unchanged from 20 CFR 
617.25(b)(4)(i)(A)(2). Proposed paragraph (b)(3) follows 20 CFR 
617.25(b)(4)(ii)(B) with only minor word changes and addresses State 
establishments of nonduplication procedures.
    Proposed paragraph (c) permits the State to share training costs. 
It is based on sec. 236(a)(5)(F) and (6) of the Act, allowing for the 
sharing of program costs, and is derived from 20 CFR 617.25(b)(2) and 
(3).
    Proposed paragraph (c)(1) contains new provisions. It codifies that 
TAA Program funds are the primary source of Federal assistance to 
trade-affected workers. It also implements sec. 236(a)(4)(A) of the 
Act, which forbids all other funding under Federal law when the TAA 
Program pays the training costs for a trade-affected worker. However, 
if the costs of training exceed State TaOA funds, and if the Department 
has notified the States that there are no remaining TaOA funds to 
allocate, including reserve funds, then States may use other sources to 
continue funding training, as provided in proposed paragraph (d)(2)(ii) 
of this section.
    Proposed paragraph (c)(2) is a new provision, added for the first 
time, and has no comparable counterpart in existing regulations or in 
administrative guidance. Proposed paragraph (c)(2) allows States to 
share training costs with authorities administering non-Federal, State, 
and private funding sources provided that there are insufficient TAA 
Program funds to cover the total cost of training. This was added to 
give States more flexibility to enter into cost-sharing arrangements 
with non-Federal entities.
    Proposed paragraph (c)(3) retains language from 20 CFR 
617.25(b)(3)(ii)(A) prohibiting reimbursement from TAA Program funds of 
any training costs that were accrued before the approval of the 
training program under the TAA Program. Proposed paragraph (c)(4) 
corresponds to 20 CFR 617.25(b)(2)(ii) and (b)(3)(ii)(A), describing 
prearrangements and what is required in prearrangement agreements. 
Proposed paragraph (c)(4)(i) explains that these agreements may be 
entered into on a case-by-case basis to address specific training 
situations of trade-affected workers or they may be part of a statewide 
strategy. Prearrangements help prevent duplication of the payment of 
training costs. They also help ensure that training costs that are 
reimbursable are not paid from TAA Program funds, which would violate 
sec. 236(a)(4)(B) of the Act. In addition to describing that 
prearrangements must be specific, binding agreements entered into 
before TAA Program funds are obligated, proposed paragraph (c)(4)(ii) 
provides new flexibility to States to determine that after a training 
program has been approved and TAA Program funds have been committed if 
funds become available under another source, the State may decide to 
continue to pay for the training under the TAA Program or share those 
costs. If the decision is made to share the costs, then the State must 
enter into a prearrangement with the other funding source to specify 
how the worker's training program will be funded. The Department has 
added this provision for clarity because it specifically covers a 
situation not previously addressed in the regulations. Many States have 
adopted tuition-free community-college programs for residents, and 
States will need to determine which program best meets the needs of 
trade-affected workers. If a cost-sharing agreement is put in place 
after the training program has been approved, then the worker's 
approved training program must be amended to reflect the 
prearrangement. Proposed paragraph (c)(4)(iii) follows 20 CFR 
617.25(b)(3)(ii)(B) and is derived from sec. 236(a)(6)(B) of the Act. 
This provision will help avoid duplicate payments of training costs by 
requiring the worker to enter into a written agreement with the State 
providing that TAA Program funds will not be applied toward, or used to 
pay, any portion of the costs of the training that the worker has 
reason to believe will be paid by any other source.
    Proposed paragraph (c)(5) follows 20 CFR 617.25(b)(4)(ii)(C) but 
clarifies it. As required by sec. 236(a)(4)(C) of the Act, in 
determining the amount of training costs payable from TAA Program 
funds, the State must not consider payments to the trade-affected 
worker under other Federal laws that do not directly cover the costs of 
training. Significantly, subchapter IV of the

[[Page 60184]]

Higher Education Act of 1965, codified at 20 U.S.C. 1087uu, provides 
that, ``[n]otwithstanding any other provision of law, student financial 
assistance received under [subchapter IV of the Higher Education Act] . 
. . shall not be taken into account in determining the need or 
eligibility of any person for benefits or assistance, or the amount of 
such benefits or assistance, under any Federal . . . program.'' This 
includes, but is not limited to Pell Grants, benefits under 
Supplemental Educational Opportunity Grants, Federal educational loan 
programs, Presidential Access Scholarships, Federal student work-study 
programs, and Bureau of Indian Affairs Student Assistance. Therefore, a 
State may not consider Federal student financial assistance in 
determining whether to approve training under the Act and may not 
require the worker to use such funds to pay the costs of approved 
training. Federal student financial assistance paid directly to a 
worker is not deducted from the worker's TAA Program benefits. This 
differs from 20 CFR 617.25(b)(4)(ii)(C)(1). The relationship between 
Federal student financial assistance and TRA is discussed in subpart G. 
Proposed paragraph (c)(5) also addresses the transition of Federal 
student financial assistance recipients from WIOA and other programs to 
the TAA Program. Specifically, WIOA sec. 134(c)(3)(B)(i) (29 U.S.C. 
3174(c)(3)(B)(i)) overrides 20 U.S.C. 1087uu and limits WIOA-funded 
training services to individuals who are unable to obtain other grant 
assistance for training services, including through Pell Grants, or who 
require assistance beyond the assistance made available under other 
grant assistance programs, including Pell Grants. Federal student 
financial assistance must cease to be applied to tuition and other 
training related costs that are covered by TAA Program funds upon 
transition to the TAA Program.
    Proposed paragraph (c)(6) has no existing reference in 20 CFR part 
617 and has been added as a result of States' technical assistance 
questions to the Department. It addresses the situation where a trade-
affected worker's firm agrees to fund training costs under conditions 
that may make the worker liable for all or a portion of those costs if 
certain conditions are not met. For example, the employer may offer 
separated employees paid training, but require the worker to reimburse 
the employer if the worker does not maintain a certain minimum grade 
point average (GPA). If the training is otherwise approvable under the 
Act, this proposed provision would require the State to contract with 
an adversely affected employer to assume any unfunded costs on the 
worker's behalf. Thus, in the above example, if the employer required 
the worker to maintain a 2.5 GPA or lose the paid training benefit, the 
worker could enroll in and receive employer-funded training, and, if 
the worker later achieves only a 2.4 GPA, the agreement would allow the 
State to assume the cost of training and not require the AAW to 
reimburse the employer. This provides the State with greater 
flexibility to leverage the use of nongovernmental funds made available 
by employers to AAWs. Workers funded under this provision are, like all 
others, still required to attend all classes and participate fully in 
training to avoid the establishment of an overpayment in the event of a 
failure.
    Proposed paragraph (d)(1) is new and combines requirements at sec. 
236(a)(7)(A) through (C) of the Act into a single statement. Section 
236(a)(7)(A) through (C) states that the Secretary shall not approve a 
training program if--
     All or a portion of the costs of such training program are 
paid under any nongovernmental plan or program;
     the [trade-affected worker] has a right to obtain training 
or funds for training under such plan or program; and
     such plan or program requires the worker to reimburse the 
plan or program from funds provided under this chapter, or from wages 
paid under such training program, for any portion of the costs of such 
training program paid under the plan or program.
    Proposed paragraph (d)(1) simplifies these statements by 
prohibiting the use of TAA Program funds or wages paid under the 
training program to reimburse all or any portion of training costs from 
any source, regardless of whether it is from a Federal, State, 
nongovernmental plan or program, or another source. The authority for 
this is provided by combining secs. 236(a)(4)(B), (6)(A), and (7)(A) 
through (C). This is also partially addressed in proposed paragraph 
(c)(6) of this section. Proposed paragraph (d)(2)(i), modifying 20 CFR 
617.25(b)(5)(ii), prohibits the approval of a training program if the 
trade-affected worker is required to obtain funds or pay training costs 
from TAA Program funds or any funds belonging to the worker from any 
source. This prohibition follows sec. 236(a)(1) of the Act, subject to 
the annual training cap limitation under sec. 236(a)(2)(A). Proposed 
paragraph (d)(2)(ii) requires that if no TAA Program training funds are 
available, the States must seek other funding, including the use of 
WIOA national dislocated worker grant funds, to provide training.
Section 618.630 Training of Reemployed Trade-Affected Workers Not in 
Suitable Employment
    Proposed Sec.  618.630, which follows 20 CFR 617.22(g), derives 
from sec. 236(d) of the Act. This provision addresses AAWs who cannot 
find suitable employment but who obtain nonsuitable employment. These 
AAWs, while employed, continue to be eligible for TAA Program training. 
They may continue their employment while waiting for their selected 
training course to begin. Upon approval and enrollment in training, 
they may choose to terminate their employment, reduce the hours worked, 
or continue in either full- or part-time employment while a participant 
in training (as discussed in proposed Sec.  618.615(b)). As provided in 
sec. 236(d) of the Act, the AAWs may not be determined ineligible or 
disqualified for UI or TAA Program benefits, including TRA, because 
they left work that is not suitable employment. However, choosing to 
continue in such employment, either part- or full-time, may have 
negative effects on UI and TAA Program benefits, including TRA and the 
possible loss of the HCTC, if available. The wages earned in such 
employment may impact the weekly benefits payable under UI or TRA.
Section 618.635 Work-Based Training
    Proposed Sec.  618.635 modifies 20 CFR 617.25(a) to set forth 
detailed requirements for OJT, customized training, and apprenticeship. 
The requirements in proposed paragraph (a) were not fully implemented 
in 20 CFR part 617, so several new provisions have been proposed to 
implement statutory requirements from sec. 236(c) of the Act.
    Proposed paragraph (a)(1) provides the description of OJT that 
follows the statutory definition at sec. 247(15) of the Act. OJT must 
be provided under a contract between the State and an employer, which 
may be in either the public or private sector, including nonprofits. 
Proposed paragraphs (a)(1)(i) through (iv) are derived from sec. 
236(c)(1)(B) of the Act.
    Proposed paragraph (a)(2) describes components of related 
education. Classroom training sponsored by the employer and as part of 
the contract may be part of OJT and may be provided for part of the day 
with the balance of the training day in a productive setting, or in 
some other described schedule. Proposed paragraph (a)(3) implements

[[Page 60185]]

sec. 236(c)(3)(A) of the Act and requires that that the OJT contract 
specify the duration of the OJT, and be limited in duration as 
appropriate. Although statutorily limited to a maximum of 104 weeks 
under sec. 236(c)(3)(B) of the Act, the length of an OJT contract must 
also be limited to the specific vocational preparation required for the 
occupation, as listed on O*NET (www.onetonline.org). Proposed paragraph 
(a)(4) implements the statutory language in sec. 236(c)(4) of the Act, 
which excludes certain employers from receiving OJT contracts.
    Proposed paragraph (a)(5) sets out the reimbursement provisions for 
the OJT contract at a rate of up to 50 percent of the wage rate for the 
OJT participant, limited to the duration of the contract, as provided 
in sec. 236(c)(5)(H) of the Act. Proposed paragraph (a)(6) contains the 
labor standards required by sec. 236(c)(5) of the Act for approval of 
the costs of OJT. Proposed paragraphs (a)(5)(i) through (ix) are 
essentially unchanged from 20 CFR 617.25(a)(1) through (7), (9), and 
(10), except for minor language changes for clarification. Paragraph 
(a)(8) of 20 CFR 617.25(a) has been dropped because of the repeal of 
the previous language of sec. 236(c)(8) of the Act, which required the 
employer to certify that they will continue to employ such AAW for at 
least 26 weeks after completion of training if the worker desires to 
continue employment and the employer does not have due cause to 
terminate the employment.
    Proposed paragraph (a)(7) follows sec. 236(c)(2) of the Act, which 
requires payments for OJT to be made to employers in monthly 
installments. This is a change from 20 CFR 617.25(a), which requires 
payment in equal monthly installments. The dollar amounts of the 
monthly payments may fluctuate because, though paid at the same rate of 
pay, the payments may be based on different numbers of hours worked.
    Proposed paragraph (a)(8), largely adopted from sec. 233(d) of the 
Act and 20 CFR 617.18(c), is a reminder that proposed Sec.  618.780(c) 
provides that AAWs engaged in OJT are not eligible for TRA. It also 
explains that the AAW may be considered ineligible for the HCTC, if 
available. Proposed paragraph (a)(9) allows for participants enrolled 
in OJT to also enroll in RTAA, if they are found eligible and all the 
requirements are met, as described in subpart E. Proposed paragraph 
(a)(10) conveys that TAA Program funds may be leveraged with WIOA funds 
to reach the maximum reimbursement level established under WIOA. 
Proposed paragraph (a)(11) states that the State must not approve OJT, 
under sec. 236(a)(5)(i) of the Act, for AAIWs.
    Proposed paragraph (b) implements provisions related to customized 
training, defined by sec. 236(f) of the Act, and sets forth specific 
requirements. Customized training is a type of work-based training 
authorized under sec. 236(a)(5)(A) of the Act. Customized training was 
not addressed in 20 CFR part 617 and is a source of many technical 
assistance questions. Implementing rules related to customized training 
will provide clarification about this type of work-based training. 
Proposed paragraph (b)(1) describes that customized training meets the 
special requirements of a single employer or a group of employers and 
may be provided by the same, or a training provider, which could 
include State or local staff. An example would be a single machine shop 
or group of small machine shops that require employees with training on 
a specific tool, software package, or process. Proposed paragraph 
(b)(2) codifies that for the purposes of customized training, 
employer(s) must commit to employ a trade-affected worker upon 
successful completion of the training. The employer(s) must enter into 
an agreement with the State that describes the conditions that must be 
met and reiterates the expectation of employment after training is 
completed. Proposed paragraph (b)(3) requires the employer(s) to pay 
for at least 50 percent of the costs for the training. Proposed 
paragraph (b)(4) explains the limitation from sec. 236(a)(10)(B) of the 
Act that AAIWs are eligible for customized training if the position is 
for a position other than their adversely affected position.
    Proposed paragraph (c) is new and establishes apprenticeship 
provisions that specifically provide that both registered 
apprenticeships under the National Apprenticeship Act, as well as other 
training programs that include a paid work-based learning component and 
required educational or instructional component that results in the 
issuance of an industry-recognized credential, are approvable TAA 
Program training activities. The Department encourages comments on 
implementing these new provisions. These provisions are based on sec. 
236(a)(5)(A) of the Act. The requirement that an apprenticeship lead to 
a recognized postsecondary credential, which includes an industry-
recognized credential, differentiates an apprenticeship from a regular 
OJT. Proposed paragraph (c)(1) limits the duration of the paid work-
based learning component of an apprenticeship to a maximum of 130 
weeks, in line with the general limitation on training duration in 
Sec.  618.615(d)(3). However, the length of the educational or 
instructional training component is limited only by the scheduled 
completion date of the apprenticeship. In setting these time periods 
for apprenticeship training, the Department considered that the average 
total program duration (from FY 2009 to FY 2017) of an apprenticeship 
participant in the TAA Program was 66 weeks. Only 38 weeks of this time 
was spent in training (related instruction component). The average 
duration for TAA Program participants in an OJT was 80 weeks, with 45 
weeks of OJT instruction. The TAA Program has been criticized in the 
past for keeping trade-affected workers out of the workforce while they 
are receiving benefits. Such criticism does not apply to OJT or 
apprenticeship because these are work-based trainings and participants 
are employed while participating in the TAA Program. The Department 
concludes that sec. 236(a)(5)(G) of the Act allows the Department to 
establish apprenticeships as a type of approvable training under the 
TAA Program and to establish regulations governing them. Apprenticeship 
is not the same as a regular OJT and is therefore not subject to the 
duration limit at sec. 236(c)(3)(B) of the Act.
    Proposed paragraph (c)(2) describes the expenses related to 
apprenticeship that can be covered using TAA Program funds. These costs 
include expenses for the educational or instructional component of an 
apprenticeship (tuition, fees, tools, uniforms, equipment, books, 
etc.). In addition, the sponsor may be reimbursed not more than 50 
percent of the apprentice's regular wage rate for the cost of providing 
the work-based training and additional supervision related to the work-
based training provided by the sponsor.
    Proposed paragraph (c)(3) prohibits States from entering into 
contracts with sponsors that exhibit a pattern of failing to provide 
apprentices with the successful attainment of an industry-recognized 
credential or the apprenticeship completion certificate if a registered 
apprenticeship under the National Apprenticeship Act.
    Proposed paragraph (c)(4) is divided into paragraphs (c)(4)(i) and 
(ii). Paragraph (c)(4)(i) addresses compliance with registered 
apprenticeships under the National Apprenticeship Act. Specifically, 
the costs for the registered apprenticeship program, discussed in 
proposed paragraphs (c)(2) and (3), may only be approved by the State 
if the

[[Page 60186]]

requirements of 29 CFR parts 29 and 30, and Departmental administrative 
guidance are met. Paragraph (c)(4)(ii) addresses other apprenticeships. 
It explains that costs for an apprenticeship program will be approved 
if certain labor standards are met.\11\ These are based on the labor 
standards that apply to OJT under sec. 236(c)(5) of the Act and are 
applied to apprenticeships other than registered apprenticeships, 
although the labor standards at sec. 236(c)(5)(H) of the Act is 
incorporated in proposed paragraph (c)(2)(ii), rather than in proposed 
paragraph (c)(4)(ii). Proposed paragraph (c)(5) instructs the State to 
make individual benefit determinations on TRA benefits to AAWs and to 
inform the AAWs considering apprenticeship of the possible loss of 
eligibility for TRA and the HCTC, if available. Proposed paragraph 
(c)(6) allows for the combination of apprenticeship and RTAA, if all 
eligibility requirements under subpart E are met. Proposed paragraph 
(c)(7) defines the term ``sponsor'' as it relates to apprenticeships. 
Proposed paragraph (c)(8) requires the State to enter into a contract 
with the sponsor that establishes the terms and conditions of the 
apprenticeship.
---------------------------------------------------------------------------

    \11\ The six criteria for the approval of training at sec. 
236(a)(1)(A)-(F) of the Act also apply to apprenticeships.
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    The Department will be monitoring all participant outcomes achieved 
through apprenticeships approved under the Act via coordination between 
OTAA and the Office of Apprenticeship to ensure that AAWs who complete 
apprenticeships continue to successfully retain employment.
Section 618.640 Supplemental Assistance
    Proposed Sec.  618.640 discusses the requirements for TAA Program-
funded supplemental assistance in the form of subsistence and 
transportation payments. Proposed paragraphs (a) and (b) describe 
general information and application instructions and are derived in 
part from 20 CFR 617.27(a) and (c) and 20 CFR 617.28(a) and (d). It 
eliminates outdated references to expired workforce programs. Proposed 
paragraph (a) also requires the need for such payments to be documented 
in the trade-affected worker's IEP, if available, or case file. 
Proposed paragraph (b) requires the trade-affected worker to submit an 
application for supplemental assistance in accordance with subpart H 
and the processes established by the State.
    Proposed paragraphs (c) and (d) correspond to, condense, and 
clarify 20 CFR 617.27 and 20 CFR 617.28, respectively, regarding 
payments for subsistence and transportation. They codify the statutory 
provisions at sec. 236(b) of the Act. Proposed paragraph (c)(1) 
clarifies that subsistence payments include the costs of temporary 
living quarters (separate maintenance), meals, and incidental expenses, 
which was previously inferred by the use of the term ``per diem'' in 20 
CFR 617.27. Proposed paragraph (c)(2) establishes the requirements for 
subsistence payments. Proposed paragraph (c)(3) limits the amount of 
subsistence payments to the lesser of the worker's actual per diem 
expenses for subsistence, or 50 percent of the prevailing per diem 
allowance rate authorized under the FTR (see 41 CFR chapters 300 
through 304) for the location of the training facility. Proposed 
paragraph (c)(4) requires States to make subsistence payments upon a 
worker's completion of a week of training, but allows States to advance 
a subsistence payment for a week if the State determines that doing so 
is necessary to enable the worker to participate in the approved 
training.
    Proposed paragraph (d) provides that a trade-affected worker must 
be reimbursed for transportation expenses when commuting to and from a 
training facility located outside the worker's commuting area. 
Transportation payments are solely for those miles beyond the worker's 
commuting area. This is a significant change from 20 CFR 617.28(b), 
which provides an allowance for the entire round-trip distance where 
training is conducted outside the commuting area. Proposed paragraph 
(d) establishes a maximum limit for transportation payments of 90 
percent of the cost per mile at the prevailing personal vehicle mileage 
rate authorized under the FTR.
    Section 236(b) of the Act permits, but does not require, the 
Department to pay ``where appropriate'' supplemental assistance 
necessary to defray ``reasonable'' transportation expenses when the 
training is not within commuting distance of a worker's residence. The 
Department proposes limiting TAA Program-funded transportation 
allowances to those miles beyond the regular commuting area for several 
reasons. The proposed change is fairer to trade-affected workers who 
travel to training within the commuting area, who receive no allowance. 
It encourages trade-affected workers to attend training closer to home, 
which avoids the costs and disruption of a temporary relocation. And it 
preserves funds for actual training. Moreover, trade-affected workers 
may still be able to receive transportation reimbursement within their 
commuting area if they qualify under WIOA or a national dislocated 
worker grant. See 20 CFR part 680, subpart G.
    Proposed paragraph (d)(2) is new and has no comparable counterpart 
in existing regulations or in administrative guidance. It addresses 
transportation payments for trade-affected workers who are residing 
temporarily in the area of training. It clarifies for the first time 
that the per diem transportation payment may not exceed the amount of 
the per diem subsistence payment that would be payable under proposed 
paragraph (c)(3). Proposed paragraph (d)(3)(i), which addresses 
transportation payments, is derived from 20 CFR 617.28(b)(1), except 
that paragraph (d)(3)(i) does not state that the travel cost begins at 
the worker's home, as discussed above. Proposed paragraph (d)(3)(ii) 
updates the reference to the FTR and provides a U.S. General Services 
Administration reference. Proposed paragraph (d)(4) adds a new 
provision that a trade-affected worker must receive transportation 
payments promptly after completion of a week of approved training, and 
that payments must be made at a minimum on a monthly basis. This was 
added to make sure that trade-affected workers are not in a situation 
where they do not have the resources to take transportation to training 
because they have not been reimbursed within a reasonable period.
    Proposed paragraph (e) is new, added for the first time, and has no 
comparable counterpart in existing regulations or in administrative 
guidance. It is intended to assist States in understanding how 
subsistence and transportation work together. It explains that payment 
can be made for both subsistence and transportation, and proposed 
paragraph (e)(1) newly clarifies that for the first and last day of 
arriving and departing a training, a trade-affected worker receiving 
subsistence may receive reimbursement transportation. This means, for 
example, that workers no longer have to choose between receiving 
mileage reimbursement for driving to a distant training and receiving 
reimbursement for the cost of a hotel the night before their training 
begins. An example of proposed paragraph (e)(1) would be where a worker 
travels outside of the worker's commuting area for a 1-month training 
session. The TAA Program would pay for travel on the first day out to 
the new location, subsistence during the training, and then for the 
travel back home. On the first and last day, there could

[[Page 60187]]

potentially be payments for both travel and subsistence. This exception 
is also available, as described in proposed paragraph (e)(2) in the 
event a trade-affected worker fails to complete the training for a 
justifiable cause, as described in proposed Sec.  618.780(b)(3)(iii).
    Proposed paragraph (f) is derived in part from 20 CFR 617.28(d), 
and requires the State to adjust the payments for transportation and 
subsistence for any advance payments made to a trade-affected worker in 
order to take into account the amount of the advance that is more or 
less than the amount that the worker is entitled to receive. Proposed 
paragraph (g) is new and has no comparable counterpart in existing 
regulations or in administrative guidance. It clarifies for the first 
time that trade-affected workers must submit expense receipts. This 
will help to ensure proper accounting and management of Federal funds 
and is consistent with proposed subpart D regarding expenses for job 
search and relocation allowances available to AAWs.
Section 618.645 Voluntary Withdrawal From a Training Program
    Proposed Sec.  618.645 establishes a new requirement, added for the 
first time, for a trade-affected worker's voluntary withdrawal from a 
training program. This provision has no comparable counterpart in 
existing regulations or in administrative guidance. During its 
oversight of the TAA Program, the Department has encountered numerous 
situations where a worker has withdrawn from training. States have also 
requested technical assistance and interpretations of the Act and 
regulations related to this topic. This proposed section seeks to 
provide direction to the States on this topic. Proposed paragraph (a) 
provides that the State must advise a trade-affected worker who chooses 
to withdraw from a TAA approved training program that the withdrawal 
may, subject to the requirements in subpart H, be established as an 
overpayment and may, subject to proposed subpart G, result in 
ineligibility for TRA for AAWs. Proposed paragraph (b) provides an 
exception for service in the Uniformed Services under the criteria set 
out in Sec.  618.615(d)(4). Proposed paragraph (c) allows for a trade-
affected worker who ceases participation in training for justifiable 
cause as described in Sec.  618.780(b)(3)(iii) to resume the approved 
training program. Proposed paragraph (d) recognizes that AAWs who 
withdraw from training still may receive job search and relocation 
allowances if they meet all the eligibility requirements for these 
benefits as set forth in proposed Sec. Sec.  618.410 and 618.440 of 
subpart D. Proposed paragraph (e) is not a new requirement but was 
clarified in previously issued administrative guidance. The goal of TAA 
approved training is to help trade-affected workers obtain suitable 
employment. The acquisition of an apprenticeship completion certificate 
or industry-recognized credentials forms an important part of that 
long-term reemployment strategy. Therefore, States must provide 
training for TAA Program training participants as approved by the State 
in the training program, even if the AAW becomes employed in suitable 
employment during that training. The State must evaluate, with input 
from the AAW, how the employment impacts the AAW's training program 
(and whether the training program needs to be amended); determine that 
training completion serves the long-term employment goals of the 
worker; and the AAW must continue to meet benchmarks that were 
established as part of the approved training program, even though the 
employed AAW is not likely to be eligible for TRA payments.
Section 618.650 State Standards and Procedures for Establishing 
Reasonable Cost of Training
    Proposed Sec.  618.650 is new and does not have a counterpart in 20 
CFR part 617. It describes limitations on States that establish a 
policy defining a ceiling on the amount of training costs payable for 
trade-affected workers. Section 236(a)(1)(F) of the Act requires States 
to approve training suitable for the worker and available at a 
reasonable cost. ``Reasonable cost'' in proposed Sec.  618.610(f)(2) 
incorporates Sec.  200.404 of OMB's Uniform Guidance (2 CFR 200.404) 
and its interpretive guidance. The expenditure must be prudent under 
those standards. Section 200.404 provides that ``[a] cost is reasonable 
if, in its nature and amount, it does not exceed that which would be 
incurred by a prudent person under the circumstances prevailing at the 
time the decision was made to incur the cost.'' States must follow the 
prudent person test to determine if the training costs are reasonable 
and necessary for the trade-affected worker to achieve the goals of the 
TAA Program. Additionally, States must also comply with the standards 
for reasonableness in proposed Sec.  618.610(f)(2), including those 
permitting States to allow training other than the least-cost option if 
the extra cost is justified by better worker outcomes or a faster 
return to the workforce.
    To achieve the goal of expanding training opportunities for the 
largest number of trade-affected workers, the Department determined 
that States are not prohibited from setting specific training limit 
amounts, such as matching the training limit amount to the WIOA 
individual training account limit in each local area, as a tool to 
ensure they approve training for trade-affected workers at a reasonable 
cost that will lead to employment. Proposed paragraph (a) informs 
States that training limits may be established, and, if limits are 
established, they must reasonably take into account the varying costs 
for training throughout the State. The Department is concerned that a 
statewide training cost ceiling could result in unnecessary barriers to 
training for trade-affected workers. In addition, the State must have a 
method to approve training exceeding the training cap, and it must 
include a requirement that a local area secure State approval to exceed 
the statewide training cost ceiling prior to approving the training.
    Proposed paragraph (b) requires the State to develop a policy that 
allows for consideration and approval of training costs that exceed the 
established training cost limits set by the State. If used, this 
exception will prevent the denial of a training program solely based on 
a cost limitation. While the Department expects States will be 
judicious in granting exceptions, the Department recognizes that there 
will likely be cases in which relief is appropriate. The policy must 
include transparent standards and procedures that provide for prompt 
consideration of any request to exceed the training cost limit.
    Proposed paragraph (c) requires the State to propose an alternative 
training program, when training is not approvable due to exceeding the 
State's maximum amount established in policy and the State policy to 
exceed, described in proposed paragraph (b), has not been met.
    Proposed paragraph (d) requires States to review their established 
policy on a reasonable cost limit annually and to change or remove the 
limits when warranted. Proposed paragraph (e) requires that whenever a 
State establishes, modifies, or rescinds its policy, the State must 
notify the Department and provide full documentation supporting its 
action to the Department for review.
    Proposed paragraph (f) explicitly provides that there is no 
requirement that a State establish a limit on training costs.

[[Page 60188]]

    The Department also is considering an alternative approach to 
establishing a definition of available at a reasonable cost. Under this 
alternative approach, the Department would establish via regulation 
that the soft cap would be initially established as the local area's 
established limit for ITAs under WIOA. Under this alternative approach, 
the local area would be able to request to exceed this cap to meet the 
needs of the trade affected worker. The Department seeks comments on 
both proposed paragraph (a) and the alternative approach the Department 
is considering.
Section 618.655 Training for Adversely Affected Incumbent Workers
    Proposed Sec.  618.655 is new and addresses the approval of 
training for AAIWs. Section 236(a)(1) of the Act includes the phrase 
``or an [AAIW]'' after ``[AAW]'' in the provision for the approval of 
training. The Act thus extends to AAIWs the same training benefits 
provided to AAWs under the Act, except as provided in sec. 236(a)(10) 
and proposed Sec.  618.635(a)(10) and (b)(4). Section 236(a)(1) of the 
Act allows workers threatened with total or partial separation from 
adversely affected employment, AAIWs, to begin TAA approved training 
before their separation. TAA Program-funded training for AAIWs is 
intended to allow earlier intervention where layoffs are planned in 
advance and the employer can specifically identify which workers will 
be affected, or where the threat of separations are possible. AAIWs may 
begin training before a layoff, thereby reducing the time needed to 
complete the training program after the separation occurs and reducing 
the duration of the worker's weeks of unemployment. Training options 
for an AAIW should be designed to meet the long-term needs of the AAIW 
based on the expectation that the AAIW will be laid off. Training 
programs may also be amended in accordance with proposed Sec.  618.665. 
The criteria and limitations for approval of training for AAIWs are the 
same as they are for AAWs, except for certain exclusions. AAIWs, like 
AAWs, are entitled to supplemental assistance (transportation and 
subsistence payments), and employment and case management services. 
Proposed paragraph (a) clarifies that AAIWs are eligible for approved 
training before separation, and further clarifies that AAIWs may apply 
for training and States may approve training for any AAIW at any time 
after the date on which they are determined to be individually 
threatened with separation regardless of filing for, receiving, or 
exhausting UI.
    Proposed paragraph (b) clarifies how a State will verify that an 
AAIW is threatened with total or partial separation. This paragraph 
explains that an AAIW is threatened with total or partial separation 
when the AAIW has received a notice of termination or layoff from 
employment. Verification of a threat of total or partial separation may 
be obtained from the firm that is trade impacted or another reliable 
source that the State determines to be appropriate.
    Proposed paragraph (c) states that the provisions of subpart F 
extend to AAIWs, unless otherwise noted. It also lists exceptions that 
apply to AAIW training. Proposed paragraph (c)(1) explains that 
training may not be approved for an AAIW if such training includes an 
OJT component consistent with sec. 236(a)(10)(A) of the Act.
    Proposed paragraph (c)(2) implements the statutory requirement in 
sec. 236(a)(10)(B) of the Act that customized training may not be 
approved for an AAIW unless the training is for a position other than 
the AAIW's adversely affected employment.
    Proposed paragraph (d) implements sec. 236(a)(11) of the Act, and 
provides conditions for terminating the approval of training for AAIWs, 
under certain conditions. Paragraph (d)(1) requires the State to 
continue to monitor that the threat of total or partial separation 
continues to exist for the AAIW during the course of training approved 
under the Act. The State must periodically verify, with the AAIW's 
employer, that the threat of separation still exists before funding 
each subsequent portion of the training. Proposed paragraph (d)(2) 
provides that if the threat of separation is removed, TAA Program 
funding of the AAIW's training program must cease at the conclusion of 
the most recently funded portion, or semester or quarter. The AAIW will 
be allowed to complete any portion of the training program for which 
the TAA Program has already recognized an accrued expenditure; however, 
no additional funding will be available while the threat of separation 
is removed. Funding may resume for the original training program that 
had been previously approved upon a determination by the State that the 
threat of separation has been reestablished, or upon total or partial 
separation from adversely affected employment, if the requirements 
under Sec.  618.610 are still met. The approved training program must 
be amended in compliance with proposed Sec.  618.665(a)(1)(ix). 
Proposed paragraph (d)(3) clarifies that, as with all training 
approvals under the Act, the AAIW is only eligible for one training 
program per certification; thus, a training program begun prior to 
separation and while under a threat of layoff continues to constitute 
the one allowed training program available to that AAIW. Proposed 
paragraph (d)(4) provides that the training duration limitations 
addressed in proposed Sec.  618.615 are applicable to training program 
approval for AAIWs. Proposed paragraph (d)(5) further emphasizes that 
an AAIW will not be eligible for a new or different training program 
when a total or partial separation occurs; however, the existing 
training program may be amended under the provisions of proposed Sec.  
618.665. Lastly, proposed paragraph (d)(6) provides that the State must 
not consider the AAIW's threatened employment suitable employment under 
proposed Sec.  618.610(a). Without this interpretation, training for 
AAIW would otherwise never be approvable.
    Proposed paragraph (e) explains that an AAIW may transition to an 
AAW. Proposed paragraph (e)(1) provides that the separation must occur 
prior to the expiration of the petition under which the AAIW was 
determined to be threatened and the total or partial separation must be 
for lack of work. Proposed paragraph (e)(2) specifies that once an AAIW 
has become an AAW under the conditions specified in paragraph (e)(1), 
the worker's approved training program must be amended, as described in 
Sec.  618.665, and the State must determine what other benefits under 
the TAA Program the worker may now be eligible for, including TRA. Any 
time spent in training as an AAIW applies to the duration limits 
contained in Sec.  618.615.
    The Department specifically encourages comment relating to proposed 
Sec.  618.655, particularly on potential strategies States may use to 
encourage employers to inform their workers of planned layoffs so that 
the workers may apply for training as AAIWs as early as possible. The 
Department also encourages comment on creative solutions for these 
workers so that they can seamlessly transition from threatened 
employment into new, good-paying jobs.
Section 618.660 Training Benchmarks
    Proposed Sec.  618.660 is new and provides the process for 
establishing and monitoring compliance with training benchmarks. 
Benchmarks are required by sec. 233(f)(3)(A) of the Act when the trade-
affected worker enrolls in an approved training program that will 
extend beyond the duration of payable weeks of Basic TRA and

[[Page 60189]]

Additional TRA, for the purposes of eligibility for Completion TRA, in 
accordance with subpart G. Although AAIWs are ineligible for TRA, 
establishing training benchmarks is recommended, as an AAIW may become 
an AAW. The purpose of training benchmarks is to allow early and 
ongoing assessment of the performance of a training participant to 
determine whether the original training program is a good fit. 
Benchmarks also function as a protection of the appropriate expenditure 
of TAA Program funds. This section implements existing operations of 
the TAA Program.
    Proposed paragraph (a) requires States to establish and document 
training benchmarks for AAWs (and it is recommended to do so for AAIWs) 
so that they can meet Completion TRA eligibility requirements described 
at proposed Sec.  618.765. The benchmarks must be established when the 
trade-affected worker enrolls in an approved training program so that 
the State can monitor the worker's progress toward completing the 
approved training duration limits at proposed Sec.  618.615. Inclusion 
of benchmarks should occur when the training program is initially 
established and approved, and, in the unusual event that benchmarks are 
not included in the initial training program, at such time the training 
program is amended. Proposed paragraph (b) requires training benchmarks 
to be established for all but short-term training programs, such as a 
3-month certificate program. The establishment of benchmarks is a 
useful practice and may be required later in the AAW's training if 
unanticipated circumstances arise that extend the training beyond the 
duration of payable weeks of Basic TRA and Additional TRA. Proposed 
paragraph (c) provides that to review the trade-affected worker's 
progress against the benchmarks, States may request that the training 
provider provide documentation of the worker's satisfactory progress, 
including instructor attestations, progress reports, etc. The case 
manager may attest to the worker's progress after consultation with the 
vendor and the worker. Proposed paragraph (d) requires the benchmarks 
to be described in the trade-affected worker's IEP, if available, or 
otherwise documented in the worker's case file. Proposed paragraph (e) 
requires that benchmarks be flexible enough to allow for some 
variability (e.g., a single course failure or missed week of attendance 
may contribute to a failed benchmark but should not, on its own, make 
the AAW ineligible for Completion TRA), and both practical and 
measurable enough to allow administration across a broad spectrum of 
training scenarios and State environments. These benchmarks are related 
to, but differ from, the requirement that an AAW ``participate in 
training'' as a condition of eligibility for TRA. ``Participation in 
training'' merely requires that an AAW must attend scheduled classes 
and required events or otherwise follow the rules of the training 
program in accordance with the requirements documented by the training 
provider, while training benchmarks measure satisfactory progress of 
the trade-affected worker during their training. Training benchmarks 
may be used to provide early intervention that will provide the 
opportunity to determine whether the training program in place is 
appropriate for the trade-affected worker or whether it would be 
prudent to amend the training program to meet the needs of the worker 
better.
    Section 233(f)(3) of the Act requires an AAW to substantially meet 
performance benchmarks to remain eligible for Completion TRA. There are 
two benchmarks that must be met. The first is that the AAW is expected 
to continue to make progress toward the completion of the training. The 
second is that they are on schedule to complete the training during 
that period of eligibility. In Sec.  618.660(f), the Department 
interprets these benchmarks to mean that the AAW is maintaining 
satisfactory academic standing (e.g., not on probation or determined to 
be ``at risk'' by the instructor or training provider) and is on 
schedule to complete training within the timeframe identified in the 
approved training program. Paragraph (f) requires these benchmarks to 
be evaluated and documented at least every 60 days, beginning with the 
start of the approved training program.
    Under paragraph (g)(1), upon failure to meet either or both of the 
benchmarks for the first time during the same evaluation period, the 
State must provide a warning to the AAW that their eligibility for 
Completion TRA is in jeopardy. The warning may be provided verbally, in 
writing, or both, and must be documented in the worker's case file. An 
AAWs approved training program may be amended after they fail to 
satisfy one or both training benchmarks for the first time. There is no 
requirement to wait for a second substandard review. If the first-time 
benchmark failure is of a magnitude as to make a failure at a later 
benchmark review likely, then the State should reevaluate the training 
program, if necessary, to improve the likelihood that the AAW will 
complete the training program. Similarly, if an AAW is failing two 
courses in one benchmark assessment period, this will result in only 
one substandard review; however, if the failure of two courses makes 
timely completion of training under the approved training program 
unlikely, then the training program should be amended. Paragraph (g)(2) 
provides that if an AAW who has previously failed to meet a benchmark 
under paragraph (g)(1) fails to meet a benchmark during a subsequent 
benchmark review under paragraph (f), the State must notify the worker 
of their ineligibility for Completion TRA. An AAW may elect to continue 
in the approved training but will not receive any Completion TRA 
payments; or, the training program must be amended according to 
proposed Sec.  618.665, and Completion TRA payments may resume. In 
cases where a State denies payment of Completion TRA because the AAW 
has not made satisfactory progress toward training benchmarks, the AAW 
may appeal the determination through the appeal process described in 
subpart H at Sec.  618.552. An AAW may refuse an amendment to the 
training program but will not be eligible for Completion TRA.
Section 618.665 Amending Approved Training
    Proposed Sec.  618.665 provides conditions for amending an approved 
training program. Proposed Sec.  618.665 greatly expands upon the 
regulatory provision for amending an approved training program. The 
second sentence of 20 CFR 617.22(f)(3)(ii) merely permitted an 
amendment ``to add a course designed to satisfy unforeseen needs of the 
individual, such as remedial education or specific occupational 
skills.'' Proposed Sec.  618.665 recognizes that more substantial 
amendments may be necessary to provide trade-affected workers with 
skills necessary to obtain employment and sets forth the circumstances, 
and conditions, under which amendments must be made. The ability to 
amend a training program is not new but does require some additional 
structure to ensure consistent treatment of trade-affected workers.
    Proposed paragraph (a) requires the State to work in cooperation 
with the trade-affected worker in amending a training program where the 
need for such amendment was not foreseeable and where the customer 
demonstrates good cause for the need to amend. Proposed paragraphs 
(a)(1)(i) through (x) provide the list of conditions to be met for an 
amendment to be appropriate. One or more of the conditions must be met. 
Proposed paragraph (a)(2) provides

[[Page 60190]]

that the training duration limits at proposed Sec.  618.615(d)(3) apply 
to amended programs. Proposed paragraph (a)(3) requires an amendment to 
be made before completion of the original training program. Proposed 
paragraph (b) sets forth the criteria that must be met in order for a 
training program to be amended. The Department concludes that since the 
State is amending an existing approved training program, not all of the 
training approval criteria described in proposed Sec.  618.610 apply to 
an amendment. For example, since the State already determined that 
there was no suitable employment available when the training program 
was originally approved, it is not reasonable to conduct a subsequent 
review of available suitable employment in order to amend a training 
program. As a result, proposed paragraphs (b)(1) through (4) apply only 
Criteria 3 through 6, from proposed Sec.  618.610 of this subpart F, to 
amended training programs.

G. Subpart G--Trade Readjustment Allowances

    Proposed subpart G covers the eligibility requirements for, and the 
amounts and duration of, TRA. Proposed subpart G reorganizes and 
simplifies some of the provisions of 20 CFR part 617 to make them 
easier to follow and modifies or excludes provisions of part 617 to 
reflect statutory amendments and policy determinations found in 
administrative guidance.
Section 618.700 Scope
    Proposed Sec.  618.700 is new and does not have a comparable 
section in 20 CFR part 617. It describes the scope of this proposed 
subpart G.
Section 618.705 Definitions
    Proposed Sec.  618.705 is new and has no comparable counterpart in 
existing regulations or in administrative guidance. It establishes for 
the first time definitions of the terms ``participating in approved 
training'' and ``training allowance'' as used in this proposed subpart 
G. It also addresses the issue of wages as it relates to successor-in-
interest. Proposed paragraph (a) redresses the numerous references in 
20 CFR part 617 that refer to ``participation in training'' and 
replaces the term with ``participation in approved training'' 
throughout this subpart G. Part 617 does not interpret or define this 
term, despite using the phrase ``participating in a training program 
approved under [20 CFR] 617.22(a)'' throughout. The term ``approved 
training'' takes the place of ``training program approved under [20 
CFR] 617.22(a).'' Proposed paragraph (a)(1) describes ``participating 
in approved training'' generally, relative to attendance and taking 
part in on-site classes, activities, and events as well as covering 
excused absences. Proposed paragraph (a)(2) describes the term 
specifically for distance learning but is otherwise the same as 
proposed paragraph (a)(1) in this section.
    Proposed paragraph (b) is new and has no comparable counterpart in 
existing regulations or in administrative guidance. It establishes, for 
the first time, a definition of the term ``training allowance,'' which 
is used throughout sec. 232 of the Act and in 20 CFR 617.13. The term 
``training allowance'' has been used to describe such Federal programs 
as Veterans Educational Assistance and Supplemental Educational 
Opportunity Grants whereas payments would go directly to the AAW, as 
opposed to payments provided directly to a training provider. Federal 
student financial assistance is excluded from being a ``training 
allowance'' and reasons for the exclusion are discussed in more detail 
in proposed Sec.  618.745(c)(4).
    Proposed paragraph (c) is new, added for the first time, and has no 
comparable counterpart in existing regulations or in administrative 
guidance. It is not a new interpretation or new concept. Instead, it is 
an explicit clarification of existing policy. This proposed paragraph 
is derived from the definition of the term ``firm'' contained in 29 CFR 
90.2 and in proposed Sec.  618.110, which provides that any 
predecessors or a successor-in-interest are considered part of the same 
firm for purposes of proposed subpart B. Proposed paragraph (c) extends 
that logic to the wages earned by a worker that may be reported under 
the subject firm named on a petition, a predecessor, or a successor-in-
interest. For purposes of TRA, wages reported to a State or paid to an 
AAW by a successor-in-interest are to be treated as weeks and wages in 
adversely affected employment for purposes of establishing TRA 
eligibility.
Section 618.710 Categories of Trade Readjustment Allowances
    Proposed Sec.  618.710 is new and explains that there are three 
categories of TRA: Basic, Additional, and Completion. These three 
categories of TRA are used throughout subpart G, so the basic 
explanation here should make the rest of proposed subpart G easier to 
follow. This proposed section has no parallel in part 617 but is part 
of administrative guidance.
    Proposed paragraphs (a), (b), and (c) identify, respectively, Basic 
TRA, Additional TRA, and Completion TRA, and reference their respective 
qualifying requirements contained in later sections in subpart G. 
Proposed paragraph (a) describes Basic TRA, which is payable to an AAW 
who meets the requirements of proposed Sec.  618.720. Proposed 
paragraph (b) describes Additional TRA, which is payable to an AAW who 
meets the requirements of proposed Sec.  618.760. Additional TRA begins 
the first week after exhaustion of Basic TRA.
    Proposed paragraph (c), describes Completion TRA, which is payable 
to an AAW who meets the requirements of proposed Sec.  618.765. 
Completion TRA is payable after exhaustion of Basic and Additional TRA 
and only if the AAW is pursuing a program leading to a certificate or 
industry-recognized credential, participates satisfactorily, and the 
program is completed by the established eligibility period. The 
eligibility period will begin once the individual files an initial 
claim for Completion TRA, files for compensation for a given week while 
participating in TAA training, and is expected to complete such 
training in the established 20-week period during which to receive 
Completion TRA. The State must assist the AAW to meet these strict 
requirements. The State must work with the AAW to determine the best 
timing for the start of the 20-week period to ensure that the training 
will be completed within the established period. The first week of 
Completion TRA cannot automatically be established as the first week 
after exhaustion of Additional TRA as doing so could result in an AAW 
receiving no Completion TRA at all. For example, if a training program 
required 21 weeks beyond the end of Additional TRA and the first week 
of Completion TRA were automatically started at the conclusion of 
Additional TRA, no Completion TRA would be payable as the AAW would not 
complete the training within the 20-week period.
Section 618.715 Applications for Trade Readjustment Allowances and 
Payment
    Proposed Sec.  618.715 covers applications for TRA and payment. 
Proposed paragraph (a) modifies 20 CFR 617.10(b) and changes the phrase 
``may be filed within a reasonable period of time after publication of 
the determination certifying the appropriate group of workers'' to 
``must be filed after publication of the certification of the 
appropriate worker group'' to clarify that filing before a 
certification is issued is not optional. It also omits all references 
to applications for TRA that appeared in 20 CFR 617.10(b) for weeks

[[Page 60191]]

of unemployment beginning before the initial application for TRA is 
filed because it needlessly confuses the requirement that TRA cannot be 
paid until an AAW is covered by a certification as described in 
proposed paragraph (d) of this section. Proposed paragraph (a)(2) 
provides that an application for TRA must be filed within the time 
limit applicable to claims for regular compensation under the 
applicable State law.
    Proposed paragraph (b) is nearly the same as 20 CFR 617.10(c) in 
providing the procedures for filing TRA applications, except that it 
updates references to this subpart G and newly provides for the filing 
and processing of applications by any means allowed for UI claims in 
the State, as reiterated in proposed paragraph (e)(2) of this section. 
This new provision allows States flexibility in application processing. 
In addition, proposed paragraph (b) has been edited for clarity.
    Proposed paragraph (c) is new and has no comparable counterpart in 
existing regulations or in administrative guidance. It establishes for 
the first time that TRA determinations are subject to specified 
requirements in proposed subpart H concerning determinations, appeals, 
and hearings. It also requires that an AAW's case file include the 
worker's TRA applications and the determinations on the applications. 
These have been added for clarity, as a result of State monitoring and 
oversight findings.
    Proposed paragraph (d) is new, added for the first time, and has no 
comparable counterpart in existing regulations or in administrative 
guidance. It explains when TRA is payable. Proposed paragraph (d)(1) 
states that TRA payments must not be made until a certification is 
issued and the State determines that the AAW is a member of a worker 
group covered under the certification, in accordance with sec. 231(a) 
of the Act. Proposed paragraph (d)(2) also implements sec. 231(a) of 
the Act and provides that the first week of TRA entitlement is the week 
that begins on or after the certification. This is a change, which 
eliminates the provision at 20 CFR 617.11(b) establishing the first 
week of TRA entitlement as the later of: (1) The week that begins more 
than 60 days after the date of the filing of the petition that resulted 
in the certification; or (2) the first week beginning after the 
exhaustion of UI entitlement. The 60-day waiting period was removed 
from the Act and is no longer applicable. Proposed paragraph (d)(3) is 
new and specifies that an AAW may receive only one form of TRA (Basic, 
Additional, or Completion) for any given week. This has been added for 
clarity.
    Proposed paragraph (e) is new and has been added to make clear that 
an application is required for each TRA benefit type available to the 
AAW. States must ensure that workers are provided timely information 
regarding the specific requirements of the benefit for which they are 
making application, so that AAWs can file applications on time. 
Proposed paragraph (e)(2) is new and reiterates proposed paragraph (b) 
of this section, which provides States the flexibility for the filing 
and processing of applications by any means allowed for UI claims in 
the State.
Section 618.720 Qualifying Requirements for Basic Trade Readjustment 
Allowances
    Proposed Sec.  618.720 sets forth the requirements for Basic TRA 
eligibility and is largely taken from 20 CFR 617.11(a)(2) but contains 
some changes. It replaces the term ``individual'' with ``AAW'' or 
``worker.'' It also updates the language about petitions and 
certifications in subpart B and references the terms ``worker group'' 
and ``group of workers'' in order to be consistent with this part 618. 
Proposed paragraph (a) updates 20 CFR 617.11(a)(2)(i) to conform to 
language specific to part 618. Proposed paragraph (b) replaces 20 CFR 
617.11(a)(2)(ii) by replacing paragraphs (a)(2)(ii)(A) and (B) with the 
term ``certification period.'' Proposed paragraph (b) also proposes a 
significant change in eligibility for TRA by incorporating the amended 
definition of ``qualifying separation'' that includes partially 
separated workers. A qualifying separation was previously construed as 
requiring a total separation, an interpretation provided in 20 CFR 
617.3(t)(2), based on sec. 233(a)(2) of the Act. The Department's 
exclusion of partially separated workers from the definition of 
``qualifying separation'' has been based on 1988 amendments to the Act, 
codified in sec. 232(a)(2). The 1988 amendments added a 104-week 
limitation period on the receipt of Basic TRA that begins ``with the 
first week following the week in which the [AAW] was most recently 
totally separated from adversely affected employment.'' Public Law 100-
418 sec. 1425(a). The Department's prior interpretation of sec. 
233(a)(2) was that it created a moveable 104-week eligibility period 
for Basic TRA that only could be initiated based on a total separation. 
See 59 FR 906 (Jan. 6, 1994); 20 CFR 617.3(m)(1) (basing the 
``eligibility period'' for Basic TRA ``upon the most recent such total 
qualifying separation'').
    The Department proposes that under a plain reading of the Act, 
partially separated workers are eligible for TRA benefits if the 
requirements in sec. 231 of the Act are otherwise met. The Department's 
revised interpretation is based on sec. 231(a) of the Act directing 
that TRA payments ``shall be made to an [AAW]'' who meets the 
requirements for statutory eligibility contained in sec. 231(a)(1) 
through (5). The term AAW in turn is defined in sec. 247(2) of the Act 
as an individual who ``has been totally or partially separated'' from 
adversely affected employment because of lack of work.
    Section 231 of the Act prescribes the qualifying requirements for 
receipt of TRA. Section 231(a)(1) explicitly references a partial 
separation. Further support for this revised interpretation is provided 
by sec. 231(a)(2) of the Act that refers to partial separations with 
respect to the earnings requirements to establish TRA eligibility, and 
sec. 231(a)(3)(A) of the Act that refers to partial separations in the 
context of the eligibility requirement of UI entitlement. Lastly, sec. 
234(a)(2) of the Act explains which State law applies with respect to 
filing a claim for TRA and references partially separated workers.
    The Department's proposal to revise the definition of the term 
``qualifying separation'' to include partial separations raises the 
question of how to interpret sec. 231(a)(5)(A)(ii) of the Act that 
establishes the 26-week training enrollment deadline, as well as sec. 
233(a)(2) of the Act that establishes a 104-week eligibility period for 
Basic TRA, because both sections of the Act reference only total 
separations. Section 618.725 proposes to use the same 26-week training 
enrollment deadline for all qualifying separations, regardless of 
whether the AAW experienced a total or a partial separation. Similarly, 
Sec.  618.755 limits the receipt of Basic TRA to 104 weeks, regardless 
of whether the qualifying separation was total or partial.
    Proposed paragraph (c)(1) is much the same as 20 CFR 
617.11(a)(2)(iii)(A) but has been revised for clarity in accordance 
with the general changes described in the preamble introduction of 
proposed Sec.  618.720. The phrase ``first qualifying separation, or 
any subsequent total qualifying separation under the same 
certification'' has been replaced with ``total or partial separation 
from adversely affected employment during the certification period,'' 
to explain the requirements more specifically that must be met for 
there to be a ``qualifying separation.'' The phrase ``where there is 
more than one subdivision, the

[[Page 60192]]

appropriate subdivision of that firm'' has been added to address 
circumstances where an AAW may have been a member of a certified worker 
group of an appropriate subdivision. Proposed paragraph (c)(2) updates 
20 CFR 617.11(a)(2)(iii)(B) by including references to this part 618, 
rephrases paragraphs (c)(2)(i) through (iv), and reverses the order of 
paragraphs (c)(2)(ii) and (iii).
    Proposed paragraph (d) is substantially the same as 20 CFR 
617.11(a)(2)(iv).
    Proposed paragraph (e) requires exhaustion of UI prior to receipt 
of TRA and sets forth two requirements. Proposed paragraph (e)(1) 
requires exhaustion of UI entitlement and is based on 20 CFR 
617.11(a)(2)(v)(A) and (B), with three changes. First, proposed 
paragraph (e) contains an exception to the exhaustion requirement in 20 
CFR 617.11(a)(2)(v)(B), under sec. 231(a)(3)(B) of the Act, that 
exhaustion of additional compensation that is funded by a State and not 
reimbursed from any Federal funds, is not required. This was from an 
amendment to the Act included in TAARA 2002 and retained by TAARA 2015. 
Second, it explains that whenever an AAW becomes entitled (or would 
become entitled if the worker had applied therefore) to UI (except 
additional compensation that is funded by a State and not reimbursed 
from any Federal funds) TRA eligibility is suspended until the worker 
again exhausts UI.
    Proposed paragraph (e)(2) codifies sec. 232(d) of the Act. This 
provision allows an AAW to elect to receive TRA instead of UI under 
certain circumstances. The new entitlement must be based on employment 
that occurs after establishing the first UI benefit period. In such 
scenarios, an AAW may elect to receive TRA instead of UI, provided that 
the initial UI claim was exhausted, and the worker is otherwise 
eligible for TRA.
    In adopting this statutory amendment to the WBA payable to an AAW, 
Congress addressed a longstanding problem resulting from AAWs working 
after initially establishing TAA Program/TRA eligibility. For example, 
AAWs may have worked in part-time or short-term employment during 
summer breaks resulting in earning some wage and thereby establishing a 
new and/or subsequent UI benefit period with a lower WBA. Previously, 
TRA eligibility ceased if an AAW established a subsequent UI claim, 
which in some cases resulted in the AAW dropping out of TAA approved 
training because the WBA was substantially reduced once the AAW became 
entitled to UI benefits while continuing or resuming training after a 
break. This unwarranted outcome discouraged workers from completing 
training and from seeking employment between training periods. The 
Department's interpretation is that subsequent employment that forms 
the basis of the subsequent UI benefit period can be any employment, 
including recalls to the adversely affected employment.
    Proposed paragraph (e)(3) details the requirement that States 
provide the AAW with a summary of their potential UI and TRA benefits 
in writing and document the AAW's choice in the case management file.
    Proposed paragraph (e)(4) provides that if the worker exercises the 
election to receive TRA, State law governs what happens to the valid UI 
claim filed. For States where claims may be withdrawn if no benefits 
are paid, the worker might subsequently file a claim in a later 
quarter, and the worker might potentially exercise the TRA option a 
second time. Furthermore, the election made will be in effect until the 
election is available once again or the benefit chosen is exhausted.
    Finally, it is important to recognize that in most cases, the main 
driver for the election is the possibility of a lower WBA in the 
subsequent UI benefit period, but other factors are also relevant. For 
example, if the break in TAA approved training is longer than allowed 
for TRA to be payable, the AAW may not be an eligible TAA recipient for 
purposes of the HCTC, if available. In the latter scenario, it may be 
more advantageous to opt for the UI eligibility because, during an 
extended break in TAA approved training in which TRA is not payable, 
the UI benefit may allow the AAW to be an eligible TAA recipient and 
potentially be eligible for the HCTC.
    Proposed paragraph (e)(5) provides that the AAW must have no 
unexpired waiting period applicable for such worker for any UI, except 
when collecting TRA.
    Proposed paragraph (f) combines the requirements in 20 CFR 
617.11(a)(2)(vi) and 20 CFR 617.17. Proposed paragraph (f) also 
reorganizes and rephrases the paragraphs containing the specified means 
for meeting the Extended Benefits (EB) work test requirements in an 
easier to follow format. Proposed paragraph (f) provides that the AAW 
must be able and available for work and must meet the EB work test 
requirements set forth in proposed paragraph (f)(1) for each week TRA 
is claimed, except while enrolled in, or participating in, approved 
training, as explained in proposed paragraph (f)(2)(i). In addition, 
proposed paragraph (f)(2)(ii) provides that the EB work test 
requirements do not apply during a break in training that does not 
exceed 30 days. Lastly, proposed paragraph (f)(2)(iii) provides the 
weeks that the worker is not subject to the EB work test.
    Proposed paragraph (f)(3) contains the definition of ``suitable 
work.'' Specifically, the term ``suitable work'' is either suitable 
work as defined in the applicable State law for claimants for regular 
compensation, or suitable work as defined in applicable State law 
provisions consistent with sec. 202(a)(3) of the EUCA. The applicable 
definition depends on an AAW's job prospects as discussed in 20 CFR 
615.8(d). For an AAW with job prospects determined to be ``good,'' the 
applicable definition is that of claimants for regular compensation. 
Conversely, where a worker's job prospects are ``not good,'' the EUCA 
definition applies, and it considers any work within the worker's 
capabilities to be suitable. Lastly, the proposed definition, as well 
as the part 617 definition, excludes self-employment or employment as 
an independent contractor from the definition of ``suitable work.''
    Proposed paragraph (g) follows the ``participation in training'' 
requirement of 20 CFR 617.11(a)(2)(vii) with a few significant 
differences. Proposed paragraph (g) no longer contains the definitions 
for ``enrolled in training'' and ``completed training'' in 20 CFR 
617.11(a)(2)(vii)(D) because those definitions have been incorporated 
into subpart A of part 618. Proposed paragraph (g)(1) provides the 
general requirement that an AAW be enrolled or participating in 
approved training or have a training waiver approved under proposed 
Sec.  618.735, of this proposed subpart G, in place in order to receive 
Basic TRA. Proposed paragraph (g) specifically references Basic TRA 
because the participation in training requirements differ from 
Additional TRA and Completion TRA.
    Proposed paragraphs (g)(2) through (4) explain the circumstances in 
which an AAW may receive Basic TRA for weeks in which the general 
requirement in proposed paragraph (g)(1) has not been met. Proposed 
paragraph (g)(2) provides the Department's position that the 
participation in training requirement does not apply to a worker before 
what is commonly referred to as the ``26/26-week deadline'' for 
enrollment in training found in sec. 231(a)(5)(A)(ii) of the Act and 
incorporated into proposed Sec.  618.725. Thus, an AAW may receive 
Basic TRA up to the applicable training enrollment deadline in proposed

[[Page 60193]]

Sec.  618.725 without meeting the participation in training 
requirement. Applying the participation in approved training 
requirement before the training enrollment deadline would undermine one 
purpose of the deadlines: to provide sufficient time to identify and 
make arrangements for an appropriate training program. Further, 
applying the participation in approved training requirement before the 
deadlines would cause some AAWs who do not participate in approved 
training before the training enrollment deadline to be denied 
eligibility for the HCTC (if available) because, by not meeting a 
requirement for TRA eligibility, they would not be an ``eligible TAA 
recipient'' as is required to receive the HCTC.
    Proposed paragraph (g)(3), is substantially similar to 20 CFR 
617.11(a)(2)(vii)(B). This proposed provision represents the 
interpretation announced in administrative guidance (TEGL No. 11-02, 
Change 3). It waives the training requirement for claims for Basic TRA 
for weeks of unemployment beginning before the filing of an initial 
claim for TRA (after publication of the certification of the 
appropriate worker group, as provided in proposed Sec.  618.715(a) of 
this subpart G), and for weeks before notification that an AAW is 
covered by a certification and is fully informed of the requirements 
for enrollment in training.
    Proposed paragraph (g)(4) codifies the long-standing Departmental 
interpretation that an AAW may receive Basic TRA after completing 
approved training even though the AAW will no longer be participating 
in approved training. To continue to receive TRA upon completion of 
training, the AAW must otherwise be eligible for Basic TRA and must 
have met the participation in approved training requirements in 
proposed paragraph (g)(1) of this section in a timely fashion.
    Furthermore, an AAW whose participation in a TAA approved training 
program occurred on a part-time basis, in part or in its entirety, may 
receive Basic TRA after completing such training, even though no TRA 
eligibility was established or received at the time. This accommodates 
the statutory requirement that part-time TAA training is permissible 
and that after completion of the training, Basic TRA may be payable if 
the remaining eligibility requirements of the Act are met.
Section 618.725 Training Enrollment Deadlines
    Proposed Sec.  618.725 does not have a counterpart in 20 CFR part 
617 but is administered by States based on administrative guidance. 
Proposed Sec.  618.725 establishes the deadlines by which an AAW must 
be enrolled or participating in approved training, or have a training 
waiver in effect as a condition for receiving TRA. These deadlines are 
commonly referred to as the training enrollment deadlines or the ``26/
26-week deadlines.'' There are five possible deadlines outlined in sec. 
231(a)(5)(A)(ii) of the Act and in proposed Sec.  618.725(a). The 
training enrollment deadlines are: (1) The last day of the 26th week 
after the worker's most recent qualifying separation; (2) the last day 
of the 26th week after the week in which the certification covering the 
worker is issued; (3) 45 days after the later of the above two dates, 
if there are extenuating circumstances to justify an extension in the 
enrollment period; (4) the last day of a period where there was a 
failure by the State to provide the worker with timely information 
related to the applicable deadlines; or (5) the last day of a period to 
be approved for enrollment after the termination of a waiver. These 
training enrollment deadlines are implemented in proposed Sec.  
618.725(a)(1) through (5) and are discussed below in the preamble 
discussion of those paragraphs. Although the Act does not provide a 
deadline for the issuance of a training waiver, the Department's 
position is that the deadlines in proposed Sec.  618.725(a) are also 
applicable to the issuance of a training waiver. If the training is 
approved but not available at the time, a waiver of such training is 
appropriate.
    Proposed paragraphs (a)(1) and (2) implement the training 
enrollment deadlines that require an AAW to be enrolled in training or 
have a waiver granted no later than the last day of the 26th week after 
either the worker's most recent qualifying separation or the last day 
of the 26th week in which the certification was issued to receive Basic 
TRA. This is also what is known as the ``26/26-week deadlines.'' The 
training enrollment deadlines are established by sec. 
231(a)(5)(A)(ii)(I) and (II) of the Act.
    Proposed paragraph (a)(3) implements the deadline in sec. 
231(a)(5)(A)(ii)(III) of the Act that allows an AAW 45 additional days 
after the later of the training enrollment deadlines described above, 
if there are extenuating circumstances that justify the extension. The 
Act does not elaborate on what are extenuating circumstances. Proposed 
paragraph (a)(3) explains that extenuating circumstances are those that 
constitute good cause--unusual situations that are beyond the control 
of the AAW and that make enrollment within the otherwise applicable 
deadline impossible or unreasonable. Additional discussion of 
extenuating circumstances and good cause is found in the preamble for 
proposed Sec.  618.730.
    Proposed paragraph (a)(4) implements sec. 231(a)(5)(A)(ii)(V) of 
the Act. The Department determined the ``last day of a period 
determined by the Secretary'' to enroll in training to be the Monday of 
the first week occurring 60 consecutive calendar days following the 
date of the AAW's proper notification.
    Proposed paragraph (a)(5) implements sec. 231(a)(5)(A)(ii)(V) of 
the Act, added by TAARA 2002, which directs the Department to determine 
the deadline by which an AAW must enroll in approved training after the 
termination of a waiver. The Department provides a deadline of the 
Monday of the first week occurring 30 consecutive calendar days 
following the day of termination. The Department has determined that 30 
calendar days is sufficient time for a worker whose waiver was 
terminated or revoked to be advised of, and consider, training options, 
select an option, and enroll in training.
    Proposed paragraph (b) provides three exceptions to the training 
enrollment deadlines listed in proposed paragraph (a) of this section. 
Proposed paragraph (b)(1) extends the training enrollment deadline in 
specific circumstances when a denial of a TRA application is later 
overturned on appeal or reconsideration. Proposed paragraph (b)(2) is 
the Department's interpretation of the Special Rule with Respect to 
Military Service established in sec. 233(i) of the Act for purposes of 
the training enrollment deadline. If an AAW who is a member of a 
reserve component of the Armed Forces and has served a period of duty 
during the AAW's Basic TRA eligibility period, but before enrolling in 
training, the AAW's training enrollment deadline will be the last day 
of the 26th week following the last day of the AAW's period of duty. 
Additional rules regarding sec. 233(i) of the Act are contained in 
proposed Sec.  618.884.
Section 618.730 Good Cause
    Proposed Sec.  618.730 does not have a counterpart in 20 CFR part 
617 but is administered by States based on administrative guidance that 
implements sec. 234(b) of the Act. The Act uses three different 
concepts where exceptions to certain deadlines are appropriate: 
Extenuating circumstances, justifiable cause, and good cause. However, 
the Act does not explicitly define these terms. Upon review of the Act, 
the Department proposes that for purposes of the TAA Program, 
extenuating circumstance, justifiable cause, and good cause will have 
the

[[Page 60194]]

same meaning and application. In determining whether to apply the 
exceptions allowed under these provisions, States should consider the 
following: Whether the State failed to provide timely notice of the 
need to act before the deadline passed; whether factors outside the 
control of the worker prevented the worker from taking timely action to 
meet the deadline; whether the worker attempted to seek an extension of 
time by promptly notifying the State; whether the worker was physically 
unable to take timely action to meet the deadline; whether the employer 
warned, instructed, threatened, or coerced the worker in any way that 
prevented the worker's timely filing of an application for TRA or 
enrolling in training; whether the State failed to perform its 
affirmative duty to provide advice reasonably necessary for the 
protection of the worker's entitlement to TRA; or whether there are 
other compelling reasons or circumstances that would prevent a 
reasonable person from meeting a deadline.
    Proposed Sec.  618.730 simplifies previously issued administrative 
guidance. Proposed paragraph (a) provides that States must apply the 
good cause exception for waiving the time limitations with respect to 
an application for TRA, the training enrollment deadline, and the 
receipt of a training waiver, if the AAW makes a showing of good cause. 
Proposed paragraph (b) provides that for good cause to exist, the AAW 
must have acted diligently yet been unable to complete the task 
described in proposed paragraph (a) of this section because of exigent 
circumstances. Finally, proposed paragraph (c) provides that good cause 
must always be determined on a worker-by-worker basis.
    The following factors should be considered when determining whether 
good cause exists:
    (1) Whether the State failed to provide timely notice of the need 
to act before the deadline passed;
    (2) Whether factors outside the control of the worker prevented the 
worker from taking timely action to meet the deadline;
    (3) Whether the worker attempted to seek an extension of time by 
promptly notifying the State;
    (4) Whether the worker was physically unable to take timely action 
to meet the deadline;
    (5) Whether the employer warned, instructed, threatened, or coerced 
the worker in any way that prevented the worker's timely filing of an 
application for TRA or enrolling in training;
    (6) Whether the State failed to perform its affirmative duty to 
provide advice reasonably necessary for the protection of the worker's 
entitlement to TRA; and
    (7) Other compelling reasons or circumstances that would prevent a 
reasonable person from meeting a deadline.
Section 618.735 Waiver of Training Requirement for Basic Trade 
Readjustment Allowances
    Proposed Sec.  618.735 addresses waivers of the training 
requirement as a condition for receiving Basic TRA. This proposed 
section differs substantially from the waiver provisions in 20 CFR 
617.19(a)(2) and (b) through (d) because there are fewer statutory 
bases for waiver now. The Act, at sec. 231(c), has three conditions for 
waivers of the training requirement and the statutory language for 
these conditions is used in the proposed regulatory text. The 
Department requests comments offering more descriptive language about 
the bases of these remaining three waiver criteria.
    Proposed paragraph (a) reorganizes and rephrases 20 CFR 
617.19(a)(2) and implements the requirement of sec. 231(c) of the Act 
that a State may issue a waiver of the training requirement to an AAW 
if it finds that training is not feasible or appropriate for one or 
more of the reasons listed in proposed paragraph (b) of this section. 
Proposed paragraph (a) also explains that the waiver must contain the 
information required in proposed paragraph (c) of this section, and 
newly specifies for the sake of clarity that no waiver of the training 
requirement is permitted for Additional TRA or Completion TRA 
eligibility. Finally, proposed paragraph (a) requires, as discussed in 
the preamble of proposed Sec.  618.720(g) of this subpart G that a 
waiver must be issued no later than the latest of the applicable 
training enrollment deadlines described in proposed Sec.  618.725 of 
this subpart G.
    Proposed paragraph (b) replaces most of 20 CFR 617.19(b)(2)(i) and 
(ii) implements sec. 231(c) of the Act and sets forth the permissible 
bases for waiving the training requirement. Before TAAEA, TAARA 2002 
permitted a waiver of the training requirement where one of six 
conditions for finding that the training requirement is not feasible or 
appropriate was met. Prior to TAARA 2002, the Department was not 
limited to prescribed conditions for determining whether training is 
not feasible or appropriate. TAAEA reduced the waiver conditions to the 
three that are detailed in proposed Sec.  618.735(b). This reduction in 
the types of waivers available was to place an additional emphasis on 
the training component of the TAA Program rather than an emphasis on 
income support. At least one of these conditions must be cited in any 
determination that training is not feasible or appropriate for an AAW. 
Proposed paragraphs (b)(1) through (b)(3) of this section identify the 
three conditions, mostly verbatim from the Act; however, some of them 
elaborate on the statutory requirement, as explained below.
    Proposed paragraph (b)(1) implements the statutory waiver criterion 
that the AAW is unable to participate in training for health reasons. 
Proposed paragraph (b)(2) implements the statutory waiver criterion 
that the first available enrollment date for the approved training of 
the worker is within 60 consecutive calendar days after the date of the 
waiver determination or, if later, there are extenuating circumstances 
for the delay in enrollment. Proposed paragraph (b)(2) also repeats the 
60 consecutive calendar day deadline almost verbatim from the statutory 
language and, for consistency, interprets the phrase ``extenuating 
circumstances'' by applying the good cause provisions at proposed Sec.  
618.730 for determining if there are extenuating circumstances. 
Proposed paragraph (b)(3) implements the statutory waiver criterion 
that a waiver of the training requirement may be issued if training is 
unavailable.
    Proposed paragraph (c) governs the contents of a waiver and 
provides that a waiver does not take effect unless it contains, at a 
minimum, six specific items of information. Proposed paragraph (c) is 
modified from 20 CFR 617.19(a)(2)(i) through (vii) to account for the 
statutory change concerning allowable conditions for issuing a waiver, 
and is slightly reorganized to make it easier to follow. In particular, 
the requirement for the recipient's signature has been modified to 
account for current claims-taking practice and to permit evidence of 
the AAW's receipt and acknowledgement of the waiver by means other than 
the worker's signature. Electronic signatures are also permitted. 
States may use paper-based or electronic files (or a combination 
thereof) for documentation purposes. Records in either format must be 
made available to the Department upon request or access to those 
systems must be provided to the Department upon request for oversight 
purposes, in accordance with proposed subpart H, and further discussed 
in proposed paragraph (h) of this section.
    Proposed paragraph (d) has no corollary in part 617 and was added 
to clarify the parameters for requesting a waiver. Proposed paragraph 
(d) advises

[[Page 60195]]

that as a best practice, States may find it helpful to determine if an 
AAW's initial assessment indicates the need for a waiver. Proposed 
paragraph (d) also allows an AAW to request a waiver from the State 
before the applicable deadline in Sec.  618.725.
    Proposed paragraph (e) slightly modifies 20 CFR 617.19(a)(3) by 
simplifying the language in order to clarify the required contents of a 
waiver determination denial. It requires that whenever a waiver 
determination is a denial, the AAW to whom the denial pertains must be 
furnished with notice of the denial, and that the notice must contain 
certain specified information, including the right to appeal consistent 
with the procedures in proposed Sec.  618.828 of subpart H.
    Proposed paragraph (f) replaces 20 CFR 617.19(c)(1) due to 
statutory revisions. Proposed paragraph (f) implements the provisions 
of sec. 231(c)(2)(A) and (3)(B) of the Act. Proposed paragraph (f)(1) 
implements sec. 231(c)(2)(A) of the Act, which requires that a waiver 
be in effect for not more than 6 months after the date on which it is 
issued ``unless the Secretary determines otherwise.''
    Proposed paragraph (f)(2) implements the statutory authority to 
extend a waiver beyond 6 months by providing two criteria that must be 
met in order for a State to extend a waiver. The first criterion is 
that training continues not to be feasible or appropriate for the AAW 
for one or more of the reasons described in proposed paragraph (b) of 
this section, even if the original conditions for issuing the waiver no 
longer apply, and the second criterion is that the worker has not yet 
exhausted their Basic TRA entitlement. The first criterion maintains 
the statutory requirement that a waiver be in effect only if one or 
more of the specified conditions for the waiver are met. The Department 
is proposing the second criterion because a waiver of the training 
requirement cannot be extended if the worker has exhausted Basic TRA 
eligibility. The Department has concluded that these criteria provide 
the maximum flexibility to extend a waiver within the spirit of the 
statutory requirements for such waivers.
    Paragraph (f)(3) implements sec. 231(c)(3) of the Act by requiring 
regular review of the waivers. States are required first to review the 
waiver 3 months after it is issued to determine if one or more of the 
criteria in paragraph (b) of this section apply, but they are 
encouraged to review the waiver every 30 consecutive calendar days 
during this period. After the first 3 months, States are required to 
review the waivers on a monthly basis. The Department has concluded 
this requirement will be an effective means of ensuring that the waiver 
criteria continue to be met for the duration of the waiver. A failure 
to review waivers regularly would undermine the statutory requirement 
that waivers remain in effect only as long as the basis for a waiver 
continues to apply.
    Proposed paragraph (g) revises 20 CFR 617.19(c) and implements sec. 
231(c)(2)(B) of the Act, by requiring that a waiver be revoked if the 
waiver criteria are no longer met and that the AAW be notified in 
writing of the revocation. The notice to the worker must contain the 
same information as what would be required in a denial of waiver issued 
under proposed paragraph (e) of this section. The revocation must 
contain appeal rights. Omitted from the regulation in proposed 
paragraph (g) are two suggestions from 20 CFR 617.19(c)(2) and (3) that 
have been removed because they do not impose substantive requirements. 
The first states, ``For example, a written notice of revocation shall 
be issued to the [AAW] concurrent with the approval of the training in 
which the [AAW] has enrolled (if such training is scheduled to commence 
within 30 days), and shall not be issued prior to such approval.'' The 
second reads, ``State agencies may incorporate a revocation section in 
the waiver form or on a separate revocation form.''
    Proposed paragraph (h) revises 20 CFR 617.19(d) and implements the 
statutory requirement in sec. 231(c)(3)(C) of the Act. Proposed 
paragraph (h) implements this requirement by requiring States to 
transmit, upon request only, a copy to the Department of any or all 
waivers or revocations of waivers together with a statement of the 
reasons for the waiver or revocation. As a practical matter, a separate 
statement of reasons will not need to be submitted if the waiver 
follows the requirements of proposed paragraphs (c) and (f) and 
contains the reasons for the waiver or revocation. Information on 
waivers, at the individual level, is also submitted to the Department 
via the performance and service reports submitted by the State under 
sec. 249B of the Act. Electronic copies are acceptable.
Section 618.740 Evidence of Qualification for Basic, Additional, and 
Completion Trade Readjustment Allowances
    Proposed Sec.  618.740 is modeled after 20 CFR 617.12 and provides 
the requirements for evidence of qualification for Basic, Additional, 
and Completion TRA. If the firm provides a worker list to the State 
with enough information to assist an AAW to apply for TAA Program 
benefits and services, the State should make every effort to use the 
information provided to expedite the application process and not delay 
the application process by asking the worker for duplicate information.
    Proposed paragraph (a) is substantially the same as 20 CFR 
617.12(a) and contains the requirement that States obtain the basic 
information necessary to establish whether a TRA applicant is eligible 
to receive TRA. However, proposed paragraph (a) excludes the 
requirement in 20 CFR 617.12(a)(2) that a State must obtain a TRA 
applicant's average weekly wage for all AAWs. This information is not 
administratively necessary in the case of a TRA applicant who is 
totally separated from adversely affected employment, but is needed for 
partially separated AAWs.
    Proposed paragraphs (b) and (c) include only one change from 20 CFR 
617.12(b) and (c) and address obtaining alternative information where 
records are unavailable. Whereas 20 CFR 617.12(c) requires verification 
by the employer of information received from other sources, proposed 
paragraph (c) requires such verification only ``if possible.'' This 
change acknowledges that in some cases the employer might have gone out 
of business, so that obtaining the required verification is virtually 
impossible.
    Proposed paragraph (d), concerning the data on which a State must 
base a determination on TRA entitlement and benefit amounts, is 
substantively similar to 20 CFR 617.12(d), but, rather than requiring 
the State to make adjustments to the suspect data and make its 
determinations on the basis of the adjusted data, requires the State to 
make its determinations from the best available information. This 
change provides States with more flexibility.
    Proposed paragraph (e) is new, added for the first time, and has no 
comparable counterpart in existing regulations or in administrative 
guidance. It is included as a clarification in response to technical 
assistance provided to States by the Department. Proposed paragraph (e) 
instructs States to follow established methods used for processing 
regular UI claims. If, for example, the employer is provided 10 days to 
respond to a request for information under regular UI, then the same 
process should be used for TRA. If an employer does not respond within 
the established timeframe, the State must act on the best available 
information.

[[Page 60196]]

Section 618.745 Weekly Amounts of Basic, Additional, and Completion 
Trade Readjustment Allowances
    Proposed Sec.  618.745, governing the determination of an AAW's 
weekly amount of TRA, whether Basic, Additional, or Completion, is 
modeled after 20 CFR 617.13. Proposed paragraph (a) is similar to 20 
CFR 617.13(a) except that it reformats the section, simplifies the 
language, and incorporates the eligibility of partially separated 
workers for TRA. It specifies that partially separated workers' weekly 
benefit amount must be calculated under applicable State law. The NPRM 
removes the language in 20 CFR 617.13(a) that discusses ``varying 
amounts related to wages with separate employers'' because this was an 
exception used only by one State at the time of the last promulgation 
of these rules. That State no longer uses that exception, so this 
language is not needed. Proposed paragraph (b) has been changed from 20 
CFR 617.13(b), and replaced with language from sec. 232(b) of the Act, 
except some language has been simplified and it cross-references 
proposed Sec.  618.705 of this subpart G, as the term ``training 
allowance'' is not defined in the Act.
    Proposed paragraph (c), requiring specified reductions to the TRA 
weekly amount, follows 20 CFR 617.13(c) in some respects. Specifically, 
proposed paragraph (c)(1) explains that the weekly amount of TRA 
payable under the section will be reduced (but not below zero) by 
income that is deductible from UI under the disqualifying income 
provisions of the applicable State or Federal UI law. The NPRM 
implements the earnings disregard in sec. 232(a)(2) that allows TRA 
recipients participating in approved training to earn up to their most 
recent weekly UI benefit amount without a reduction in their TRA 
payment. Proposed paragraph (c)(2), which requires a deduction of the 
training allowance (including a training allowance referred to in 
proposed paragraph (b) of this section) is modified from 20 CFR 
617.13(c)(2). Proposed paragraph (c)(3) is taken directly from sec. 
232(c) of the Act but some language is simplified, and again, a cross-
reference is provided to Sec.  618.705 to define the term ``training 
allowance.''
    Proposed paragraph (c)(4) is intended to resolve a conflict between 
sec. 232(c) of the Act and a provision in subchapter IV of the Higher 
Education Act (20 U.S.C. chapter 28, subchapter IV). Specifically, sec. 
232(c) of the Act requires that an AAW's TRA weekly benefit amount be 
reduced by the amount of a training allowance (note the term ``training 
allowance'' is defined in proposed Sec.  618.705) to which the worker 
was entitled for that week under any other Federal law. The Higher 
Education Act, at 20 U.S.C. 1087uu, prohibits taking into account 
Federal student financial assistance received under subchapter IV of 
the Higher Education Act, or under Bureau of Indian Affairs student 
assistance programs, in determining the need or eligibility of any 
person for benefits or assistance, or the amount of such benefits or 
assistance, under any Federal program financed in whole or in part with 
Federal funds. The provision at 20 CFR 617.13(c)(2) interprets training 
allowances referred to in sec. 232(c) of the Act as including specified 
types of payments that constitute Federal student financial assistance 
under 20 U.S.C. 1087uu. Proposed paragraph (c)(4) resolves this 
conflict by excluding the receipt of Federal student financial 
assistance from the definition of ``training allowance'' in paragraphs 
(c)(2) and (3) of this section. As a result, the receipt of Federal 
student financial assistance is not excluded from the weekly amount of 
TRA payments, nor are weeks in which Federal student financial 
assistance is paid to be deducted from the maximum number of weeks for 
which TRA can be paid.
    Proposed paragraph (c)(5) is substantially the same as 20 CFR 
617.13(c)(3) and requires that TRA payments be reduced by any amount 
that would be deductible from UI for days of absence from training 
under the provisions of the applicable State law that apply to AAWs in 
training.
Section 618.750 Maximum Amount of Basic Trade Readjustment Allowances
    Proposed Sec.  618.750 explains how to calculate the maximum amount 
of Basic TRA. It is derived from 20 CFR 617.14, with a few substantive 
and organizational differences. The calculation in proposed paragraph 
(a) is largely the same as 20 CFR 617.14(a), except for two changes. 
The first change is that additional compensation is not included in the 
total sum of UI entitlement that must be subtracted as part of the 
calculation of the maximum amount of Basic TRA. This results from an 
amendment by TAARA 2002, and retained by TAARA 2015, at sec. 
231(a)(3)(B), that an AAW need not exhaust additional compensation 
funded by a State and not reimbursed from Federal funds and, 
accordingly, this entitlement is not reduced from the maximum amount of 
TRA payable in the first benefit period. This allows a State to pay TRA 
either before or after additional compensation.
    The second change concerns the reduction for the total sum of the 
AAW's UI entitlement. Paragraph (a)(2) of 20 CFR 617.14 provides that a 
worker's UI reduction must include, in addition to any UI to which the 
worker was entitled, any UI to which the worker would have been 
entitled had the worker applied for it during the worker's first 
benefit period. The last sentence of that paragraph adds that in 
calculating the worker's maximum TRA amount, the worker's full UI 
entitlement for the first benefit period must be subtracted, regardless 
of the amount, if any, actually paid to the worker.
    This last sentence of 20 CFR 617.14(a)(2) created an unintended 
result for AAWs who, during the first UI benefit period exhausted 
regular compensation, became eligible for EB under 20 CFR part 615 and, 
while continuously unemployed, could not receive the full EB 
entitlement because prior to EB exhaustion, the EB period triggered 
``off'' such that no further EB benefits were payable in the State. 
This proposition created a ``manifest injustice'' because, while the 
statutory and regulatory language implies that the full entitlement 
must be reduced, the AAW could not have filed and received such 
benefits. The Department has determined that the reduction of benefits 
is mandated in the event the AAW could have filed but did not because 
such AAW was not eligible for many reasons such as returned to work or 
chose not to file. In this case, the AAW would have been able to 
receive the benefit had the worker filed and met all other eligibility 
requirements. A similar situation occurs when a worker becomes eligible 
for a supplemental compensation benefit amount, collects a few weeks 
but forgoes the full entitlement because the worker's benefit year ends 
and such worker is now entitled to regular compensation in a second 
benefit year. Reducing the entire supplemental compensation entitlement 
amounts to another example of a ``manifest injustice'' if the AAW is 
not eligible for the remaining entitlement in the future. Accordingly, 
the Department's revised position is that if, and only if, the benefit 
was available to the AAW, it must be reduced.
    There is another situation to consider and clarify such as when an 
AAW, during the first UI benefit period, has exhausted regular 
compensation, became entitled and received TRA, and subsequently 
becomes eligible for EB or the supplemental compensation (in such first 
benefit period). The EB and/or supplemental compensation arising from 
the first UI benefit period must be exhausted prior to resuming TRA.

[[Page 60197]]

Consequently, TRA must be suspended. The AAW will receive the full 
entitlement to EB and/or the supplemental compensation until exhaustion 
or until the worker is eligible for a subsequent UI benefit period. The 
amount of EB and/or supplemental compensation payable subsequent to the 
TRA paid during the first UI benefit period reduces the maximum amount 
of TRA payable such that the AAW will receive the balance, if any. The 
amount of TRA already paid in the first benefit period also reduces the 
maximum TRA benefit amount payable. The initial amount of TRA paid is 
not to be construed as an overpayment, as the AAW was entitled to such 
benefit at the time and properly paid.
    Proposed paragraph (b), which contains exceptions to the maximum 
TRA amount calculation is substantively unchanged from 20 CFR 
617.14(b)(1) and (2). However, proposed paragraph (b) excludes 20 CFR 
617.14(b)(3) that references additional weeks and provides that nothing 
in that paragraph will affect an AAW's eligibility for supplemental, 
increased, or additional allowances. The Department has concluded that 
this language is unnecessary.
    Finally, another difference between proposed Sec.  618.750(b) and 
20 CFR 617.14(b) is that the heading for proposed Sec.  618.750 
explicitly provides that this section applies only to calculating the 
maximum amount of Basic TRA. The heading for 20 CFR 617.14 does not 
contain this limitation, but 20 CFR 617.14(b)(3) effectuates the same 
result by explicitly excluding Additional TRA from the maximum amount 
calculation. The Department has determined it can accomplish the same 
result simply by modifying the section heading.
Section 618.755 Eligibility Period for Basic Trade Readjustment 
Allowances
    Proposed Sec.  618.755, establishing the Basic TRA eligibility 
period, differs from 20 CFR 617.15. Proposed paragraph (a) uses 
different phrasing to state that AAWs are ineligible to receive Basic 
TRA for any week of unemployment beginning after the close of the 104-
week period beginning with the first week following the week in which 
the AAW's most recent qualifying separation occurred except as provided 
in paragraphs (b) and (c). As provided in the revised definitions on 
separations, this change is needed to track the plain English meaning 
and language of the Act. Additional exceptions established under sec. 
233(h) of the Act are discussed in proposed Sec.  618.770. Deadlines 
and eligibility periods may also be impacted by periods of military 
service, as discussed in proposed Sec.  618.884, and by equitable 
tolling, discussed in proposed Sec.  618.888. Use of the word 
``qualifying separation'' in proposed Sec.  618.755(a) in place of 
``total qualifying separation'' as used in 20 CFR 617.15(a) 
incorporates the same maximum eligibility period in the case of 
partially separated AAWs. Section 233(a)(2) of the Act provides that no 
Basic TRA may be paid after the close of the 104-week period after an 
AAW was most recently ``totally separated from adversely affected 
employment.'' The Act does not address when the receipt of Basic TRA 
must end for partially separated workers, though theirs count as 
qualifying separations for TRA as proposed in Sec.  618.720(b). The 
Department proposes to limit the receipt of Basic TRA to 104 weeks for 
both partially and totally separated workers, and use of the term 
``qualifying separation'' in proposed paragraph (a) effects this 
result.
    Proposed paragraph (b) is new and has no comparable counterpart in 
existing regulations or in administrative guidance. This is a 
longstanding practice that is proposed for codification. It addresses 
situations where certifications issued after delays associated with 
litigation following denials of petitions resulted in covered worker 
groups with a limited eligibility period or expired eligibility periods 
in which to receive Basic TRA. Proposed paragraph (b) tolls the 
eligibility period during the pendency of any judicial or 
administrative appeal of the Department's denial and establishes the 
104-week eligibility period with the week that begins after the 
certification.
Section 618.760 Qualifying Requirements for, and Timing and Duration 
of, Additional Trade Readjustment Allowances
    Proposed Sec.  618.760, establishing the qualifying requirements 
for, and duration of, Additional TRA, has no specific counterpart in 20 
CFR part 617; however, most of the provisions in proposed Sec.  618.760 
are contained in various sections of 20 CFR part 617 and have been 
updated through administrative guidance in the form of Operating 
Instructions. These requirements should be codified.
    Proposed paragraph (a) contains Additional TRA qualifying 
requirements and is largely unchanged from 20 CFR 617.11(a)(2) (TRA 
qualifying requirements), 20 CFR 617.15(b)(2) (training application 
filing deadlines), and 20 CFR 617.15(b)(3) (requirement of 
participation in training except during breaks in training). Proposed 
paragraph (a)(2) specifies that the AAW must have exhausted Basic TRA 
before establishing eligibility for Additional TRA. This addition is 
intended to clarify that Additional TRA is not a permissible 
alternative to Basic TRA for an AAW who missed the training enrollment 
deadlines in Sec.  618.725 and who lacks good cause for failure to meet 
such deadlines.
    Proposed paragraph (b), governing the duration of Additional TRA, 
closely follows the definition of ``eligibility period'' for Additional 
TRA in 20 CFR 617.3(m)(2). The only substantive difference is that an 
AAW may receive up to 65 weeks of Additional TRA during a 78-week 
period, as required by sec. 233(a)(3) of the Act.
    Proposed paragraph (b)(1) addresses the first potential start date 
for the receipt of Additional TRA, which is the period immediately 
following the last week of entitlement to Basic TRA. Proposed paragraph 
(b)(2) provides the second potential start date for the receipt of 
Additional TRA, which is the period beginning with the first week of 
approved training, if the training starts after the last week of Basic 
TRA. Proposed paragraph (b)(3) provides the third possible start date 
for Additional TRA, which is the first week in which training already 
in progress is approved under subpart F. Proposed paragraph (b)(3) is 
similar to 20 CFR 617.3(m)(2)(iii).
Section 618.765 Qualifying Requirements for, and Timing and Duration 
of, Completion Trade Readjustment Allowances
    Proposed Sec.  618.765, providing the qualifying requirements for, 
and duration of, Completion TRA, is a new section because Completion 
TRA was added by TAAEA and administrative guidance was issued to 
States. Proposed Sec.  618.765 codifies sec. 233(f) of the Act as well 
as provisions in administrative guidance implementing the provision and 
resolving policy issues arising from the implementation.
    Proposed paragraph (a) describes the qualifying requirements and 
proposed paragraphs (a)(1) through (3) contain the eligibility criteria 
to receive Completion TRA. Completion TRA can be paid only if the AAW 
meets the qualifying requirements for, and has subsequently exhausted, 
Basic and Additional TRA. Proposed paragraph (a)(4) requires that, 
during the period in which the AAW is eligible to receive Completion 
TRA, if at any time the AAW fails to meet the eligibility criteria in 
proposed paragraphs (a)(1) through (3), the State must make no further 
payments to the

[[Page 60198]]

AAW. For example, if a worker has been meeting training benchmarks as 
required in proposed paragraph (a)(3)(i) and was expected to complete 
approved training within the established period, but at the point of 
payment of week five, there is an indication that approved training 
will not be completed within the established period, Completion TRA 
payments must cease. However, weeks of Completion TRA previously paid 
based on information that was correct at the time of payment is 
properly paid, and therefore States must not treat them as 
overpayments.
    Proposed paragraph (b) describes that sec. 233(f) of the Act gives 
the Department discretion to establish the eligibility period within 
which the 13 weeks of Completion TRA are payable and training must be 
completed in order to meet the Completion TRA eligibility requirements. 
Proposed paragraph (c) explains that the Department determined that the 
eligibility period for Completion TRA will be the 20-week consecutive 
calendar period beginning with the first week in which an AAW files a 
claim for Completion TRA and seeks compensation for such week, 
regardless of when the first payment is received. The eligibility 
period may be extended for justifiable cause in accordance with 
proposed Sec.  618.770(a). Proposed paragraph (d) requires that States 
have a process for taking Completion TRA applications and goes on to 
say that although the 20-week period may begin at the end of Additional 
TRA, a State must not automatically begin Completion TRA the week 
following the end of Additional TRA. States may not amend the AAWs 
approved training program to provide for a later 20-week eligibility 
period for Completion TRA if: (1) Training is interrupted after the AAW 
has filed a claim for Completion TRA; and (2) that interruption leads 
to a training completion date that occurs after the 20-week eligibility 
period in the approved training program. The 20-week eligibility period 
to receive up to 13 weeks of Completion TRA allows for the flexibility 
of a break in training of up to 7 weeks, but no more. In this scenario, 
since the amended training completion date is after the 20-week 
eligibility period in the approved training program, the worker will no 
longer be eligible for Completion TRA. In the same scenario, if a 
worker has not yet filed a claim for Completion TRA, the eligibility 
period for Completion TRA has not begun. In that case, the State may 
amend the AAWs approved training program to provide for a later 
training completion date and correspondingly later 20-week eligibility 
period for Completion TRA.
Section 618.770 Special Rule for Justifiable Cause
    Proposed Sec.  618.770 addresses the Special Rule for Justifiable 
Cause contained in sec. 233(h) of the Act. There is no similar 
provision in 20 CFR part 617. Proposed paragraph (a) allows for an 
extension of the Basic, Additional, and Completion TRA eligibility 
periods for good cause according to the same good-cause standard found 
in proposed Sec.  618.730, as discussed in the preamble for that 
section. Proposed paragraph (b) specifies that while the eligibility 
period for Basic, Additional, and Completion TRA may be extended for 
justifiable cause as determined by the State, the maximum benefit 
amount and number of weeks this benefit may be received must not 
change.
Section 618.775 Payment of Trade Readjustment Allowances During Breaks 
in Training
    Proposed Sec.  618.775, governing payment of TRA, whether Basic or 
Additional, during breaks in training, is substantially the same as 20 
CFR 617.15(d) except that, as the result of a statutory change to sec. 
233(e) of the Act, it extends the maximum number of days a break may 
last without interrupting TRA payments from 14 days to 30 days. 
Proposed paragraph (a) eliminates the provisions in 20 CFR 617.15(d)(5) 
and (6), concerning the effect of breaks in training on Basic and 
Additional TRA payments and eligibility periods, because the maximum 
eligibility periods for Basic and Additional are covered in detail in 
Sec. Sec.  618.750, 618.755, and 618.760. Proposed paragraph (b) 
provides a basis for counting days similar to 20 CFR 617.15(d). 
Proposed paragraph (c) addresses breaks in training for Completion TRA 
and references the eligibility period for Completion TRA in proposed 
Sec.  618.765. No payments for breaks in training are allowed, and the 
worker only can be paid Completion TRA for each week of approved 
training, and then only if all of the Completion TRA eligibility 
criteria are met. The 20-week consecutive calendar period within which 
an AAW may receive up to 13 weeks of Completion TRA, in accordance with 
Sec.  618.765 of this subpart G, allows the further flexibility of 
continuing eligibility to accommodate any break in training (scheduled 
or unscheduled) of up to but no longer than 7 weeks, so long as the 
worker completes the approved training by the end of the 20-week 
eligibility period.
Section 618.780 Disqualifications
    Proposed Sec.  618.780, governing disqualifications from receiving 
TRA, is structured the same as 20 CFR 617.18. Proposed paragraph (a) is 
as the same as 20 CFR 617.18(a) but is titled ``General rule'' instead 
of ``State law applies.'' Proposed paragraph (b)(1)(i) is unchanged 
from 20 CFR 617.18(b)(2)(i). Proposed paragraph (b)(1)(ii) removes the 
specific language in 20 CFR 617.18(b)(2)(ii) requiring training 
combined with work to be more than 8 hours a day or 40 days in a week. 
Instead, an AAW may refuse work because such work either would require 
discontinuation of approved training or interfere with successful 
participation in TAA approved training.
    Proposed paragraph (b)(2)(i) follows 20 CFR 617.18(b)(2)(i), except 
that it adds clarifications. Proposed paragraph (b)(2)(i) omits 
language in 20 CFR 617.18(b)(2)(i) that a disqualification under that 
paragraph applies to not just Basic TRA but also to ``any other 
payment'' under part 617. The Department determined this language is 
both inaccurate and unnecessary. It is inaccurate because participation 
in training is not an eligibility requirement for job search or 
relocation allowances, so that a TRA disqualification under proposed 
paragraph (b)(2)(i) would not affect the AAW's entitlement to those 
payments. It is unnecessary because provisions in other sections of 
this proposed subpart G, and other proposed subparts, are sufficient to 
ensure that a worker who fails to meet the participation in training 
requirement, would not receive benefits for which participation in 
training is required as a condition of receiving such benefits. 
Specifically, proposed Sec. Sec.  618.760 and 618.765 prohibit payment 
of, respectively, Additional TRA and Completion TRA for any week in 
which the worker did not participate in training.
    Secondly, proposed paragraph (b)(2)(i) includes two clarifications 
not contained in 20 CFR 617.18(b)(2)(i). The first is that an AAW who 
has justifiable cause (as described in paragraph (b)(3)(iii)) for a 
failure to begin participation in approved training, or for ceasing 
participation in such training, may receive Basic TRA for any week in 
which such failure or cessation occurred if the worker otherwise meets 
the requirements of this subpart G. The Department concludes that if an 
AAW is unable to begin or continue participation in training through no 
fault of the worker, it is appropriate to permit the worker to continue 
to collect Basic TRA. In these situations, a waiver

[[Page 60199]]

of the training requirement is not needed. The second clarification is 
that failure to begin participation in training, cessation of 
participation in training, or revocation of a waiver normally does not 
change the eligibility periods in proposed Sec. Sec.  618.755, 
618.760(b), and 618.765(b).
    Proposed paragraph (b)(2)(ii) is a new provision but is helpful if 
a person reading proposed Sec.  618.780 in isolation overlooks the 
exception to the participation in training requirement contained in 
proposed Sec.  618.720(g)(2). Proposed paragraph (b)(2)(ii) provides 
that the disqualification in proposed paragraph (b)(2)(i) does not 
apply to an AAW for TRA claims for weeks beginning before the filing of 
an initial claim for TRA, nor for any week beginning before the worker 
is notified that they are covered by a TAA Program certification and is 
fully informed of the disqualification rules.
    Proposed paragraph (b)(3) provides the interpretation of three 
terms used in proposed paragraph (b)(2). Proposed paragraphs (b)(3)(i) 
and (ii) interpret, respectively, ``failed to begin participation'' and 
``ceased participation'' in training the same as in 20 CFR 
617.18(b)(2)(ii)(A) and (B). Both interpretations require that an AAW 
participate in all classes and activities in the training program, and 
the Department thereby intends that the worker be disqualified from 
receiving TRA if the worker misses even a single class or activity in 
the training program in a week without justifiable cause. TAA approved 
training is meant to provide AAWs with the opportunity to find new 
employment as quickly and efficiently as possible. The Department has 
determined that the best way to carry out this intent, ensure that TAA 
Program funds are effectively spent, and improve program performance, 
is to require that the AAWs who receive those funds participate in 
every class and activity in their approved training program unless 
there is justifiable cause.
    Proposed paragraph (b)(3)(iii) interprets ``justifiable cause'' to 
mean ``good cause'' under proposed Sec.  618.730 and as discussed in 
the preamble for that section. Specifically excepted, however, are 
excused absences, whether or not those would otherwise meet the 
stringent standard of good cause. This exception is proposed so that 
workers in training are held to the same standard as other students.
    Proposed paragraph (c), prohibiting payment of TRA to an AAW for 
any week during which the worker is receiving OJT, is substantively 
similar to 20 CFR 617.18(c).
    Proposed paragraph (d), prohibiting payment of TRA to an AAW for 
any week during which the worker is receiving part-time training, does 
not have a comparable section in 20 CFR part 617, as it is a new 
statutory requirement in sec. 236(g) of the Act, which has been 
implemented provisionally via administrative guidance in the form of 
Operating Instructions.

H. Subpart H--Administration by Applicable State Agencies

    Proposed subpart H governs the administrative requirements and 
rules that States must follow in delivering TAA Program benefits and 
services. Proposed subpart H mirrors subpart G of 20 CFR part 617 with 
a few exceptions. These exceptions include organizing sections 
differently for improved clarity; revising provisions to reflect recent 
statutory amendments and policy determinations; and adding new sections 
to address requirements for veterans' priority of service, general 
fiscal and administrative requirements, and TAA Program performance. 
Proposed subpart H also excludes some provisions that are contained in 
subpart G of 20 CFR part 617 because they are based on expired laws. 
Other major changes cover topics such as merit staff requirements; 
actions the Department may take in the absence of an executed Governor-
Secretary Agreement; State submissions of administrative rulings and 
waivers of training; veterans' priority of service requirements; 
program performance requirements; and overpayment requirements and 
instructions.
Section 618.800 Scope
    Proposed Sec.  618.800 sets out the scope for subpart H. This 
provision states that subpart H covers the administrative requirements 
governing the TAA Program. No similar provision exists in subpart G of 
20 CFR part 617. However, OMB's Uniform Guidance at 2 CFR part 200 and 
the Department's exceptions at 2 CFR part 2900 also apply to the TAA 
Program.
Section 618.804 Agreements With the Secretary of Labor
    Proposed Sec.  618.804 addresses the agreements between the States 
and the Secretary (known as Governor-Secretary Agreements) that are 
required under sec. 239 of the Act before a State may deliver TAA 
Program benefits and services. It follows 20 CFR 617.59, but reorders 
the provisions and edits them for clarity. Proposed Sec.  618.804 omits 
the provision at 20 CFR 617.59(d) requiring a newly executed agreement 
following amendments to the Act. The Department concludes that 
requiring this could delay services to trade-affected workers and cause 
unnecessary interruptions in program operations. Although the 
Department will require amended Governor-Secretary Agreements in 
certain circumstances, including for significant statutory changes, 
services will not be suspended while that process is completed. This 
section also lists the contents of the Governor-Secretary Agreements, 
which derive from the requirements of the Act.
    Proposed paragraph (a) is the same as 20 CFR 617.59(a) and requires 
States to execute a Governor-Secretary Agreement. Proposed paragraph 
(b), which provides the requirements for executing a Governor-Secretary 
Agreement, is significantly rephrased but remains substantively 
unchanged from 20 CFR 617.59(b). Proposed paragraph (b) recognizes the 
current practice of executing agreements. A new sentence, indicating 
the statutorily mandated consequences to a State of not entering into a 
Governor-Secretary Agreement, has been added to proposed paragraph (b). 
Should a State not execute a Governor-Secretary Agreement, sec. 
3302(c)(3) of the Federal Unemployment Tax Act (FUTA) requires that 
credits provided to employers under FUTA will be suspended in that 
State until a Governor-Secretary Agreement is executed. Paragraph 
(b)(2) also requires the State to execute an amended Governor-Secretary 
Agreement, upon the Secretary's request, in response to legislative, 
regulatory, or operational changes. This is a change from 20 CFR 
617.59(d), which required the States to execute an amended agreement 
with the Secretary prior to administering amendments to the TAA 
provisions of the Act. This revised provision gives the Secretary the 
authority to require States to execute a new Governor-Secretary 
Agreement when there are amendments to the Act or other changes to the 
program that require amending the Governor-Secretary Agreement. This 
provision does not require a new Governor-Secretary Agreement before 
the State can continue to implement the program. Proposed paragraph 
(a)(3) contains the same requirement as 20 CFR 617.59(b), that an 
agreement will be executed on behalf of the United States by the 
Secretary.
    Proposed paragraph (c) requires that the executed Governor-
Secretary Agreement be available for public review to individuals and 
organizations, upon request. This was previously required in 20 CFR 
617.59(c).

[[Page 60200]]

    Proposed paragraph (d) establishes the CSA as an agent of the 
United States for purposes of receiving applications and providing 
payments in accordance with the Act. A similar provision appears in 20 
CFR 617.59(e). The changes here act to conform the regulation more 
closely to secs. 239 and 241 of the Act, which expressly identify CSAs 
as agents of the United States only for these particular purposes.
    Proposed paragraph (e) discusses breach of the Governor-Secretary 
Agreement, the impact on certain employer tax credits in a State deemed 
in breach, and requires the Department to provide reasonable notice and 
an opportunity for a hearing before determining that a State has 
breached the Governor-Secretary Agreement. This rephrases 20 CFR 
617.59(f), but is not a new provision.
    Proposed paragraph (f) provides that the Department is responsible 
for monitoring and reviewing State compliance with the Governor-
Secretary Agreement. It modifies 20 CFR 617.59(g) by removing language 
assigning this responsibility to the ETA Regional Administrators. 
Although the ETA Regional Administrators retain primary responsibility 
for oversight of the grants provided to States under this part, the 
Department's methods of oversight have changed over time. There are now 
multiple units within the Department involved in components of grants 
management and oversight in addition to the regional offices. It also 
omits the reference in 20 CFR 617.59(g) to ``periodic'' monitoring and 
review because Departmental review is now an ongoing process.
    Proposed paragraph (g) requires States to comply with the staffing 
flexibility requirements proposed in Sec.  618.890. There is no similar 
provision in 20 CFR 617.20.
    Proposed paragraph (h) provides a nonexhaustive list of mandatory 
terms for Governor-Secretary Agreements between the Secretary and 
States. The terms include the following:
     Provisions consistent with the requirements of sec. 239 of 
the Act (19 U.S.C. 2311) providing for these Governor-Secretary 
Agreements (proposed paragraph (h)(1)). This reminds States of, and 
ensures compliance with, sec. 239 of the Act without listing all its 
requirements.
     Authorization for the States to issue waivers under 
proposed Sec.  618.725 (waiver of the training requirement for Basic 
TRA) and the requirement that the State submit, upon request, to the 
Department a copy of each such waiver and, if not already contained 
within each waiver, a statement of the reasons for such waiver 
(proposed paragraph (h)(2)).
     The requirement that the State supply data to the 
Department on national TAA Program performance goals identified in 
applicable regulations, the Department's written directives, or any 
other written means used to communicate such goals (proposed paragraph 
(h)(3)). This is a new requirement designed to implement guidance from 
OMB on the Government Performance and Results Act of 1993 (GPRA). GPRA 
requires, among other things, that Federal agencies take steps to 
improve the performance outcomes of federally funded programs. While 
proposed Sec.  618.864 also requires States to report specified data on 
TAA Program performance outcomes to the Department, the Department has 
concluded that including a specific provision in the Governor-Secretary 
Agreements requiring reporting of performance data would emphasize to 
States the importance of pursuing improved performance outcomes in the 
TAA Program.
     Provisions establishing TAA Program funds as the primary 
source of Federal assistance to trade-affected workers (proposed 
paragraph (h)(4)). There are numerous workforce development programs 
aimed at serving dislocated workers, but the TAA Program is the only 
program that specifically serves trade-affected workers. Thus, to 
ensure the most efficient and effective use of Federal funds, the 
Department is establishing the TAA Program as the primary source of 
funds for trade-affected workers. This is not a new requirement. It has 
been included in Governor-Secretary Agreements. Operationally, this 
means that while groups of workers covered under a filed petition are 
to be served with WIOA rapid response and other funds, once a petition 
is certified under subpart B, the source of funding must shift to the 
TAA Program. The Department's regional offices will continue to provide 
technical assistance related to this matter.
    Proposed paragraph (i) is revised from 20 CFR 617.59(i) and 
provides for the operation of the TAA Program absent a Governor-
Secretary Agreement with a State. Proposed paragraph (i) provides that, 
should the need arise to operate the program in a State without a 
Governor-Secretary Agreement, the Department will issue administrative 
guidance informing trade-affected workers within that State, and the 
other States, about how the program will operate. This paragraph also 
sets out a list of options the Department may pursue should a State 
fail to execute a Governor-Secretary Agreement or be found in violation 
of the Governor-Secretary Agreement. The Department may execute an 
agreement with another State to operate the TAA Program; execute an 
agreement with a qualified organization that meets all requirements of 
the TAA regulations within the State to operate the TAA Program; or may 
operate the TAA Program directly. In the only instance this has ever 
occurred since the establishment of the TAA Program, the Department 
operated the program directly, but each situation is unique and the 
NPRM maintains the Department's flexibility to choose the option best 
suited to the circumstances. The Department encourages comments 
regarding this topic. Proposed paragraph (j) updates 20 CFR 617.59(h) 
to replace references to programs and services under the Workforce 
Investment Act with a reference to WIOA and adds a clarification of 
what constitutes a CSA.
Section 618.808 State Rulemaking
    Proposed Sec.  618.808 modifies 20 CFR 617.54 and breaks the 
section into paragraphs. This section provides States the authority and 
some flexibility to establish laws, regulations, procedures, or other 
policies related to the administration of the TAA Program while 
ensuring the Department can still administer the uniform interpretation 
of the program throughout the United States. Proposed paragraph (a) 
rewords 20 CFR 617.54 and replaces the generic term ``supplemental 
procedures'' with specific references to the establishment of laws, 
regulations, procedures, or other policies not inconsistent with the 
Act, this part 618, or administrative guidance issued by the 
Department. Proposed paragraph (b) retains the requirement in 20 CFR 
617.54 that certified copies of the proposed law, regulation, 
procedure, or other policy be provided to the Department, but removes 
the requirement for them to be submitted on a form supplied by the 
Department to accommodate the improvements in technology that make this 
process much easier. Proposed paragraph (c) is unchanged from 20 CFR 
617.54 and requires that all laws, regulations, procedures, or policies 
by the States be reviewed and approved by the Department before taking 
effect. It also authorizes temporary approval by the Department, in 
cases of administrative necessity, for a period not to exceed 90 days. 
Proposed paragraph (d) allows the Department, after providing the State 
notice of at least 30 days, to withdraw a previous approval. This 
modifies 20 CFR 617.54, which does not have a specific minimum period 
for reasonable notice.

[[Page 60201]]

Proposed paragraph (e) differs from 20 CFR 617.54 and requires States 
to follow State UI law requirements for public notice and opportunity 
for hearings on rulemaking. Proposed paragraph (e) more broadly also 
requires the State to follow any other State or Federal law that may 
require such public notice and opportunity for hearing. This change 
accommodates the possibility that other laws that require public notice 
of changes to State plans or procedures, such as WIOA, could apply.
Section 618.812 Subpoenas
    Proposed Sec.  618.812, authorizing States to issue and enforce 
subpoenas, is substantially the same as 20 CFR 617.53, with one 
significant clarification. Proposed paragraph (a) changes 20 CFR 617.53 
to identify the purposes for which subpoenas may be issued. These 
provisions align with the Department's longstanding interpretation of 
the provision. Proposed paragraph (b) is new and has no comparable 
counterpart in existing regulations or in administrative guidance. It 
establishes for the first time that States may use subpoenas to gather 
information on individual members of a certified worker group. This 
addition clarifies the Department's position and addresses the 
challenges that States face in obtaining timely information from 
employers in order best to serve trade-affected workers. Lastly, 
proposed paragraph (c) is the same as 20 CFR 617.53 with only minor 
rewording.
Section 618.816 Trade Adjustment Assistance Program Benefit Information 
and Provision of Services to Workers
    Proposed Sec.  618.816 contains requirements the States must meet 
in providing TAA Program benefit information and services to trade-
affected workers. It is significantly modified from 20 CFR 617.4 and 
has been moved from its previous location to this subpart; however, the 
purpose of 20 CFR 617.4, to instruct what benefit information must be 
provided, is unchanged. Proposed Sec.  618.816 omits some provisions in 
20 CFR 617.4 that the Department concludes are unnecessary or 
redundant. It updates other provisions and adds new provisions to 
reflect the various amendments to the Act that have occurred since the 
last rulemaking occurred. It also includes some of the requirements 
historically contained in the agreements with the States, for purposes 
of formal codification in regulation and allowing for public comment.
    Proposed paragraph (a), requiring States to provide general program 
information and advice to trade-affected workers, is very similar to 20 
CFR 617.4(a) and contains only minor language changes. This requirement 
derives from the obligation in sec. 225(a) of the Act to provide 
information to trade-affected workers about the benefits and services 
available to workers and their associated applications and timelines. 
The information provided to workers must cover all benefits and 
services available under the TAA Program, including the HCTC, if 
available.
    Proposed paragraph (b) is a new provision mandated by the Act that 
requires States to provide rapid response assistance and appropriate 
career services, consistent with sec. 134 of WIOA, to all groups of 
workers covered by a petition filed under subpart B. The Governor, upon 
receipt of a petition for TAA, must ensure the availability of WIOA 
rapid response assistance (described as ``rapid response activities'' 
in 20 CFR 682.300, et seq.) and appropriate career services to the 
groups of workers covered by the petition. These services are to be 
provided as soon as possible after the petition is filed. The 
Department strongly encourages States to make the full suite of career 
services available under title I of WIOA available to groups of workers 
using rapid response funding to maximize layoff aversion. These 
services must be made available regardless of whether the petition is 
ultimately certified.
    Proposed paragraph (c) implements sec. 235 of the Act and requires 
States to provide specified employment and case management services to 
trade-affected workers. This is a new provision that replaces 20 CFR 
617.21. Proposed paragraph (c)(2) requires that, should there be 
insufficient TaOA funds available under the TAA Program to provide 
these services, States must make arrangements to make available these 
services through other Federal programs, such as WIOA.
    Proposed paragraph (d)(1) requires States to provide assistance to 
groups of workers to file petitions for TAA. It combines requirements 
contained in 20 CFR 617.4(b) and (e)(2), simplifies the language of 
those provisions, and adds the authorization for States to file a 
petition on behalf of a group of workers. Section 239(g)(2) of the Act 
requires a State to facilitate the early filing of petitions for any 
group of workers that the State considers ``likely'' to be determined 
eligible. Proposed paragraph (d)(2) provides guidance on a 
determination of ``likely to be eligible.'' This means that the State 
has a reasonable belief that a group of workers may be impacted by 
foreign trade. Likelihood can be determined, for example, by the 
existence of certifications in the same industry, sector, supply chain, 
or for another location of the same firm. It may also be based on 
observations of the State, information provided by impacted workers, 
the employer, a union, press coverage, industry reports, or other 
similar sources. Proposed paragraph (d)(3) is reworded from 20 CFR 
617.4(b) to remove the specific reference to ``unorganized'' workers. 
Proposed paragraph (d)(4) is not addressed in 20 CFR 617.4 but is 
authorized by sec. 225(a) of the Act, and it establishes that the State 
shall provide whatever assistance is necessary to enable groups of 
workers to prepare petitions or applications for program benefits. The 
State must assist in the filing of the petition where there is a 
likelihood of eligibility, despite any objections from other entities. 
Entities that may object, such as firms, should be reminded that a 
certification under the TAA Program does not have an additional 
financial cost to the firm.
    Proposed paragraph (e) requires States to provide certain 
information and assistance to trade-affected workers after issuance of 
a certification covering their worker group. The provisions in proposed 
paragraph (e) are substantively similar to 20 CFR 617.4, but this 
paragraph rephrases and reorganizes them for clarity and simplicity. 
This section continues to implement sec. 225(b) of the Act, which 
requires written notices to each trade-affected worker, via the mail, 
and a general notice through newspaper advertisements. Proposed 
paragraph (e)(1), which was previously in 20 CFR 617.4(c), implements 
sec. 225(a) of the Act and requires States to inform the State board on 
vocational and technical education or equivalent agency, and other 
public or private agencies, institutions, and employers, as 
appropriate, of each certification issued under subpart B and of 
projections, if available, of the needs for training under subpart F as 
a result of such certification. These efforts should be coordinated 
with State and local workforce development boards (LWDBs) established 
under WIOA. Proposed paragraph (e)(2) is similar 20 CFR 617.4(d)(1) but 
adds to the information that must be included in the written notice 
mailed to each worker covered by a certification, including information 
regarding the training enrollment deadlines (set forth in proposed 
Sec.  618.720(c)) that are a condition of TRA eligibility. Proposed 
paragraph

[[Page 60202]]

(e)(2)(viii) specifically requires the State to include a Babel notice. 
A Babel notice is a short statement in multiple languages informing the 
reader that the communication contains vital information and explaining 
how to access language services to have the contents of the 
communication provided in other languages. Although this is the first 
explicit reference to this requirement in TAA Program regulations, this 
is not a new requirement for workforce development or UI programs. The 
Department already addressed this practice in administrative guidance, 
specifically UIPL No. 30-11, ``State Responsibilities Regarding Limited 
English Proficient (LEP) Individuals,'' and TEGL No. 26-02, 
``Publication of Revised Guidance Regarding the Title VI Prohibition 
Against National Origin Discrimination Affecting Limited English 
Proficient (LEP) Persons,'' which both seek to ensure full 
implementation of title VI of the Civil Rights Act. Proposed paragraph 
(e)(3) provides that it is permissible to obtain a list of workers that 
are partially or totally separated from adversely affected employment 
or threatened with separation via subpoena pursuant to proposed Sec.  
618.812. Proposed paragraph (e)(4) maintains the requirement that 
notice of certification be published in a newspaper of general 
circulation. In particular, the Department is interested in learning 
what the States believe to be the most effective and least burdensome 
ways of ensuring that workers covered by a certification receive notice 
and a meaningful opportunity to receive TAA benefits should they so 
choose.
    This NPRM eliminates the provision in 20 CFR 617.4(d)(2) that 
exempts the State from publishing a newspaper notice if the State can 
substantiate that all workers have received written notice about the 
certification. Upon further review of this regulation, the Department 
has concluded that this is not consistent with the notification 
requirements contained in sec. 225(b)(2) of the Act. The Department 
welcomes comments related to the definition of ``newspaper of general 
circulation'' and the interpretation of that term as it relates to the 
significant expansion in digital media since the original promulgation 
of 20 CFR part 617.
    Proposed paragraph (e)(5) codifies sec. 239(f) of the Act and 
requires that upon receipt of a copy of a certification issued by the 
Department, the State must perform outreach to, intake of, and 
orientation for trade-affected workers covered by the certification 
with respect to assistance and benefits available under this part 618. 
There is no direct similar provision in the existing rule.
    Proposed paragraphs (e)(6) and (7) are new provisions, added for 
the first time, and have no comparable counterparts in existing 
regulations or in administrative guidance. Proposed paragraph (e)(6) 
requires, in addition to the written notices sent by mail, that the 
State also use one method of modern electronic communication, such as 
email, to inform workers of the certification. The Department has 
concluded that the use of modern communication methods will better give 
notice to workers of their entitlement to TAA benefits and, if 
applicable, other program opportunities available under the public 
workforce system. Proposed paragraph (e)(7) allows States the 
flexibility to use social media and other means to reach workers.
    Proposed paragraph (f) requires States to provide specific benefit 
assistance to workers. In addition to all of the benefits described in 
detail in this part 618, States must also include information on the 
HCTC, if available as described in subparagraph (B) of sec. 35(b)(1) of 
the Internal Revenue Code of 1986. Proposed paragraph (f)(1) is modeled 
on 20 CFR 617.4(e)(1) but is rephrased for clarity. One minor change 
from 20 CFR 617.4(e)(1) is that proposed paragraph (f)(1) omits the 
reference to UI claimants because it might be confusing. The Department 
interprets sec. 225(b)(1) of the Act to require that the State provide 
notice to each member of a worker group that it can reasonably identify 
as being covered by a certification whether or not that worker has 
applied for UI. This is especially important for AAIWs who are still 
employed and, thus, will not file a UI claim but are still potentially 
eligible for TAA approved training and employment and case management 
services. Where a petition has already been certified, the State must 
provide TAA Program information to all trade-affected workers covered 
by the certification. Where a petition is still pending, the State must 
provide the TAA Program information to the trade-affected workers 
covered by the petition following issuance of the certification.
    Proposed paragraph (f)(2) combines the requirements of 20 CFR 
617.4(e)(3) and (4) into a single paragraph because they are closely 
related. The language has been changed to emphasize the need for the 
State to provide in a timely manner the information and employment and 
case management services that trade-affected workers are entitled to 
receive to preserve eligibility for TAA Program benefits.
Section 618.820 Determinations of Eligibility; Notices to Individuals
    Proposed Sec.  618.820 contains procedural requirements that apply 
to State benefit determination and redetermination processes. There are 
three substantive changes from 20 CFR 617.50. The first is in proposed 
paragraph (d), which excludes an exception contained in 20 CFR 
617.50(d) that the State law and regulations do not apply where they 
are inconsistent with the letter or purpose of 20 CFR part 617. This 
exception is unnecessary because this paragraph applies only to matters 
that, by the terms of Federal law, are decided under State law. The 
second difference is in proposed paragraphs (f) and (g). Proposed 
paragraph (f) requires the prompt payment of benefits when due, a 
requirement adopted from standard procedures under UI. Proposed 
paragraph (g) is unchanged from 20 CFR 617.50(g). Lastly, the language 
from 20 CFR 617.50(b) has been simplified and incorporated into the 
NPRM. There is no operational impact as a result of the revised 
language. The Department has also made other nonsubstantive changes to 
simplify the language in this section.
Section 618.824 Liable State and Agent State Responsibilities
    Proposed Sec.  618.824, concerning the respective responsibilities 
of a liable State and agent States, updates 20 CFR 617.26 to reflect 
secs. 235, 237, 238, and 245 of the Act and reorganizes the 
requirements. In addition, the definitions for agent State and liable 
State are now found in subpart A of part 618. The changes are discussed 
below.
    Proposed paragraph (a) is largely unchanged from 20 CFR 617.26(a) 
but reorders information and breaks it up into subordinate paragraphs. 
Proposed paragraph (a)(3)(i) adds the requirement for liable States to 
provide rapid response and appropriate career services (as described in 
sec. 134 of WIOA) to a group of workers for whom a petition is filed as 
required by sec. 221(a)(2)(A) of the Act. Proposed paragraph (a)(3)(ii) 
is new and provides that career services established under other 
Federal laws must also be made available to the group of workers, to 
the extent authorized by those laws. This NPRM does not attempt to 
identify all Federal laws that may be applicable. It is included to 
ensure that trade-affected workers are fully integrated into the public 
workforce system and are not excluded from any career services 
available to other dislocated workers. Proposed paragraph (a)(3)(iii) 
is new and has no comparable counterpart in

[[Page 60203]]

existing regulations or in administrative guidance. It clarifies for 
the first time that, in some instances, the liable State may seek 
assistance from one or more agent States in the provision of rapid 
response and appropriate career services, especially in situations 
where residency of the group of workers is divided into two or more 
States. Proposed paragraph (a)(4) updates language from 20 CFR 
617.26(a) but has the same meaning. Proposed paragraph (a)(5) is new 
but codifies administrative guidance. It requires a liable State to 
provide lists of eligible TAA recipients and eligible RTAA recipients 
to the IRS. These lists are necessary for the IRS to determine who is 
potentially eligible to receive the HCTC and must be provided if HCTC 
is available, as States have been doing in accordance with 
administrative guidance. Also, the specific reference in 20 CFR 
617.26(a) that ``the liable State also is responsible for publishing 
newspaper notices'' alerting the public to certifications is omitted 
here as unnecessary because it is contained in proposed Sec.  
618.816(e)(4).
    Proposed Sec.  618.824(b) is largely unchanged from 20 CFR 
617.26(b) but reorders information and breaks it up into subordinate 
paragraphs. Proposed paragraph (b)(4) contains new language requiring 
the provision of employment and case management services, as described 
in subpart C. Proposed paragraph (b)(6) contains new language 
referencing subpart F and requires agent States to secure and pay the 
cost of any approved training and subsistence and transportation 
payments, according to determinations issued by the liable State. 
Whether the agent or liable State was responsible for payment of job 
search and relocation allowances was omitted from 20 CFR 617.26. 
Proposed paragraph (b)(7) is new and establishes that the agent State 
is responsible for the payment of job search and relocation benefits. 
Lastly, proposed paragraph (b)(8) adds language that requires agent 
States to assist in other activities and functions required by the 
Governor-Secretary Agreement, and is modified to specify that this 
includes assisting in the review of petitions by verifying such 
information and providing such other assistance as the Department may 
request. In certain circumstances, especially when layoffs occur near a 
border between States, there may be multiple agent States. Workers may 
choose to access services at a one-stop center closer to their 
residence rather than near their place of adversely affected 
employment. This may result in there being multiple agent States 
involved in serving the same group of workers.
    Proposed Sec.  618.824(c) is new and clarifies that in most 
instances, the liable State and agent State are the same State, and 
that, when this occurs, the State is responsible for all activities 
listed in proposed Sec.  618.824(a) and (b).
Section 618.828 Appeals and Hearings
    Proposed Sec.  618.828 provides requirements governing appeals and 
hearings of TAA Program determinations and redeterminations. It 
reiterates the requirements in 20 CFR 617.51, but slightly rephrases 
the language for clarity and also adds two new paragraphs. Proposed 
paragraph (a) largely follows 20 CFR 617.51(a), but notes that there 
are exceptions to the general rule that the applicable State law 
applies to appeals of TAA determinations or redeterminations. Proposed 
paragraph (b), clarifies that, as an exception to the general rule 
concerning appeals in proposed paragraph (a), a complaint that a 
determination or redetermination under this part 618 violates 
applicable Federal nondiscrimination laws administered by the 
Department, must be handled in accordance with the procedures of 29 CFR 
parts 31, 32, 35, 36, and/or 38, as provided in proposed Sec.  618.894 
(Nondiscrimination and equal opportunity requirements). This 
clarification helps ensure that proper procedures are followed where a 
claimant alleges discrimination. Proposed paragraph (c) follows 20 CFR 
617.51(b) requiring appeals to be decided with a degree of promptness.
    Proposed paragraph (d) is new and has no comparable counterpart in 
existing regulations or in administrative guidance. It addresses for 
the first time the impact of a reversal of a denial of a training 
program. In the case of a redetermination or decision reversing a 
training denial, the redetermination or decision must be given effect 
retroactively to the date of issuance of the determination that was 
subsequently reversed. No costs of training may be paid unless such 
costs actually were incurred for training in which the individual 
participated, and no TRA may be paid with respect to any week during 
which the individual was not actually participating in the training.
Section 618.832 Overpayments; Penalties for Fraud
    Proposed Sec.  618.832, concerning overpayments, fraud, and 
penalties for fraud, generally repeats 20 CFR 617.55, but reorganizes 
the section for clarity. Proposed Sec.  618.832 slightly rephrases some 
of the provisions in 20 CFR 617.55 and also contains a few substantive 
differences from 20 CFR 617.55. Proposed Sec.  618.832 omits provisions 
in 20 CFR 617.55(h) on use of TAA Program funds to offset other debts. 
Because of the importance the Department places upon these provisions, 
proposed subpart H devotes a separate proposed section to this issue, 
Sec.  618.836.
    Proposed paragraph (a)(1) updates the requirements in 20 CFR 
617.55(a) based on the amended statute. The most significant change is 
that the decision to waive overpayments under certain conditions is now 
mandatory rather than optional. While the no-fault requirement remains, 
as described in proposed Sec.  618.832(a)(1)(i) and (ii), instead of an 
``equity and good conscience'' standard described in 20 CFR 
617.55(a)(1)(ii), States must look to whether repayment would 
constitute a financial hardship. Proposed paragraph (a)(2) provides 
rules for the administration and interpretation of financial hardship 
for overpayment waiver purposes.
    Proposed paragraph (a)(3) requires that workers be provided a 
reasonable opportunity to demonstrate that they were without fault and 
are unable to repay their TAA Program overpayments and, therefore, are 
eligible for waivers of overpayments. As a result of Congressional 
action, see Public Law 111-5, sec. 1855(2), 123 Stat. 115, 394 (2009), 
the Department is also changing the language related to financial 
hardship. A financial hardship exists where the funds would otherwise 
be needed to pay for ordinary and necessary living expenses after 
taking into account the income and other resources reasonably available 
to the individual and their household. This is a significant change in 
operations and the Department is seeking to establish a national 
standard. Comments on this topic are encouraged and appreciated.
    Proposed paragraph (b) is substantially the same as 20 CFR 
617.55(b), but reorders and slightly rewords the language. It provides 
the statutory requirement for a lifetime disqualification from receipt 
of benefits under the Act for anyone found to have knowingly provided a 
false representation or nondisclosure of material fact.
    Proposed paragraph (c) follows 20 CFR 617.55 in that, prior to 
requiring repayment, a State or the Department, as appropriate, must 
provide notice of the determination to the individual and an 
opportunity for a fair hearing. Only then, can a decision become final 
and repayment be required, unless a ruling has already been made by a 
court, in

[[Page 60204]]

which case, that requirement has been met and repayment can be 
required.
    Proposed paragraph (d) provides instructions related to 
overpayments under training, job search and relocation allowances, and 
RTAA, primarily following the existing provisions in 20 CFR 617.55(c). 
Proposed paragraph (d)(2) adds some further clarification providing 
that if an AAW or AAIW (although AAIWs are ineligible for job search or 
relocation allowances) fails to complete a training, job search, or 
relocation without good cause, the portion not completed is an 
overpayment, but that costs for the completed portions are not 
overpayments. If, for example, a trade-affected worker completed 3 out 
of 4 semesters of an approved training program, and then did not 
complete the last semester without good cause, any payments made for 
the fourth semester would become overpayments under this part 618. 
Proposed paragraph (d)(3) is new and has no comparable counterpart in 
existing regulations or in administrative guidance. It establishes for 
the first time that for purposes of proposed Sec.  618.832(d), a trade-
affected worker has good cause if the worker acted diligently yet was 
unable to complete the training, job search, or relocation because of 
an exigent circumstance. The State must determine whether good cause 
exists on a worker-by-worker basis. Proposed paragraph (d)(5) has no 
corresponding provision in 20 CFR part 617. It provides the rules for 
addressing overpayments under RTAA. If a State has verified continued 
eligibility, as required by proposed Sec.  618.515(c), then payments 
made after an AAW's wages have changed that were correct and accurate 
at the time they were made (based on all the information available at 
that time) are considered payments to which the AAW was entitled under 
sec. 243 of the Act. Such payments are not overpayments subject to 
proposed Sec.  618.832. The Department encourages comments related to 
proposed paragraph (d), specifically with respect to how to treat 
failure to complete as it relates to overpayments.
    Proposed paragraph (e) carries forward the provisions from 20 CFR 
617.55(a)(2)(ii)(C)(5), with changes concerning recovering an 
overpayment from the affected person's State UI entitlement and also 
adds some new provisions. Because 20 CFR 617 contains no provision for 
cross-program offsets, proposed paragraph (e)(2) adds language 
requiring overpayment recovery from State UI, as required by the Middle 
Class Tax Relief and Job Creations Act, subject to the limitation on 
the amount that may be recovered from any single payment in proposed 
paragraph (e)(3). Proposed paragraph (e)(3) is new and limits 
recoveries from all types of UI described in proposed paragraph (e) to 
no more than 50 percent of each of the affected person's State or 
Federal UI payments. This limitation would implement the limitation in 
sec. 243(a)(2) of the Act. However, since the Act sets the 50 percent 
deduction as a ceiling, proposed paragraph (e)(3) requires each State 
to follow its own law if its law provides for a lower limit.
    Proposed paragraph (f) repeats the requirements of 20 CFR 617.55(g) 
but makes one change. It changes the requirement that State procedures 
for detection and prevention of fraudulent TAA Program overpayments be 
``commensurate with'' those for UI to a requirement that State 
procedures to be ``the same as'' those for UI. This language change 
clarifies that States must apply processes used for the detection and 
prevention of overpayments under UI to TAA Program benefits as well. 
The Department concluded from oversight activities that most States' 
processes did not meet the ``commensurate with'' standard. Based on 
oversight reviews conducted by the Department, States have not 
sufficiently or equitably enforced the detection and prevention of 
overpayments under the TAA Program. The Department proposes to further 
clarify that States must apply the same detection and prevention 
measures to the TAA Program to increase and simplify compliance
    Proposed paragraph (g) follows 20 CFR 617.55(i) in explaining who 
is a ``person'' for purposes of proposed Sec. Sec.  618.832 and 
618.836, except for two modifications. The modifications are that 
proposed paragraph (g) explicitly includes a ``training provider as 
well as the officers and officials thereof'' and ``a trade-affected 
worker or other individual.'' The first of these changes closes a 
loophole that may have allowed officers and officials of training 
providers to avoid culpability and liability in instances of fraud and 
recovery of debts to the United States. The second change makes it 
clear that TAA Program participants (trade-affected workers) and 
nonparticipants (other individuals) may also be found culpable and 
liable under the fraud and debt recovery portions of this rule.
    Proposed paragraph (h) is new and implements sec. 244 of the Act 
establishing penalties for knowingly making a false statement, not 
disclosing a material fact, or causing others to do so. The penalties 
established by the Act are imprisonment for not more than 1 year, a 
fine under title 18 of the United States Code, or both. Because these 
penalties are imprisonment or a fine under the Federal criminal code, 
the Department views the penalties as criminal sanctions rather than 
administrative penalties, which cannot be imposed absent the safeguards 
and higher standards of proof afforded criminal defendants. Suspected 
violations must be reported to the U.S. Department of Labor Office of 
the Inspector General.
Section 618.836 Recovery of Debts Due the United States or to Others by 
Trade Adjustment Assistance Offset
    Proposed Sec.  618.836 governs the use of TAA Program benefits to 
offset debts that a benefit recipient owes to others. Proposed 
paragraph (a) largely follows 20 CFR 617.55(h)(1) but rephrases it for 
clarity and adds RTAA. The authority for this requirement is the Debt 
Collection Act of 1982 (Pub. L. 97-365) and its implementing 
regulations in 29 CFR part 20.
    Proposed paragraph (b) makes a significant change in 20 CFR 
617.55(h)(2), which prohibits using TAA Program funds to pay debts owed 
to any State or other person or entity except that it permits offset 
for debts owed for child support and alimony required to be collected 
under State and Federal law. Proposed paragraph (b) changes this to 
provide that TAA Program benefits may only be used to recover debts 
owed to others to the same extent allowed under Federal UI law. The 
Department proposes this change because the exception in 20 CFR 
617.55(h)(2) goes beyond Federal law and singles out one specific 
instance in which SSA requires or permits collection of debts but 
ignores others. For example, SSA sec. 303(e)(2) requires a State to 
deduct ``child support obligations'' from ``any unemployment 
compensation otherwise payable to an individual.'' Under SSA sec. 
303(e)(2)(B), this deduction is applicable to TRA. However, SSA sec. 
303(e)(1) defines ``child support obligations'' as ``only includ[ing] 
obligations which are being enforced pursuant to a plan described in 
[sec. 454 of SSA] which has been approved by the Secretary of Health 
and Human Services under part D of title IV of [SSA].'' It therefore 
does not permit deductions for alimony or for child support, in 
general, as provided by 20 CFR 617.55(h)(2), but only for child support 
obligations of the type specified. UIPL No. 45-89 (55 FR 1886, Jan. 19, 
1990) explained in detail the deductions permitted under SSA sec. 
303(e)(2). Other SSA provisions

[[Page 60205]]

permit deductions from State UI for other purposes. These SSA 
provisions, like sec. 303(e)(2), apply to TRA. For example, sec. 
303(d)(2)(A) of SSA permits offset of UI to recover uncollected over-
issuances of food stamps under sec. 303(e)(2)(B)(iii). The Department 
concludes that all TAA Program benefits, which relate closely to TRA 
and RTAA, should follow the same rules for the offset of benefits as 
Federal UI law, except as provided under proposed paragraph (a).
Section 618.840 Uniform Interpretation and Application of the Act and 
Regulations
    Proposed Sec.  618.840 repeats the requirements in 20 CFR 617.52, 
but with some reorganization and a few substantive changes.
    Proposed paragraphs (a) and (b) repeat the requirements in 20 CFR 
617.52(a) and (b), except that they replace the references to 20 CFR 
part 617 with references to part 618. The Department has also revised 
the rules of construction to remove two references to ``the Act.'' The 
Department has reconsidered this language and acknowledges Congress's 
statement in sec. 288 of the Act that ``[i]t is the sense of Congress 
that'' the Department should apply the provisions of the Act ``with the 
utmost regard for the interests of workers, firms, communities, and 
farmers petitioning for benefits.'' The Department agrees with this 
goal and this NPRM gives the utmost regard to those petitioning for 
benefits.
    Proposed paragraph (c)(1)(i) modifies the requirement in 20 CFR 
617.52(c)(1) that States automatically forward to the Department a copy 
of each administrative decision rendered under the TAA Program. 
Instead, States must submit administrative decisions only upon request 
by the Department. The Department has determined that this requirement 
is unduly burdensome. There is one exception to this rule, expressed in 
paragraph (c)(1)(ii). The Department will require States to submit to 
the Department all decisions appealed to the State's highest UI 
administrative appeals authority, which is the highest level of 
administrative appeal. In some States, this body is known as the Board 
of Review, Board of Appeals, or Unemployment Insurance Commission. For 
States without such an agency, this provision does not apply. This 
process provides the Department an opportunity to resolve issues before 
they become judicial actions. States are also encouraged to send to the 
Department any other administrative decision that it determines is 
erroneous or contrary to the Act, regulations, or administrative 
guidance. Proposed paragraph (c)(1)(iii) applies to all State or 
Federal court decisions and notices of pending State or Federal court 
actions and requires all State and Federal court decisions and notices 
to be sent to the Department. This includes notices by a State or 
Federal court of a hearing date or court date as well as all rulings 
related to the action.
    Proposed Sec.  618.840(c)(2) through (6) retains the provisions in 
20 CFR 617.52(c)(2) through (6). These provisions set out the 
relationship between the Department and the State with regard to 
determinations, redeterminations, and judicial proceedings under the 
Act. Proposed paragraph (d) retains the remaining provisions from 20 
CFR 617.52(c)(3).
Section 618.844 Inviolate Rights to Trade Adjustment Assistance or 
Reemployment Trade Adjustment Assistance
    Proposed Sec.  618.844 repeats the requirements in 20 CFR 617.56 
concerning inviolate rights to TAA with no substantive change.
Section 618.848 Veterans' Priority of Service
    Proposed Sec.  618.848, a new section, establishes priority of 
service requirements for the TAA Program. Under 38 U.S.C. 4215, 
eligible veterans and specified covered persons are entitled to 
priority of service in Department-funded workforce development 
programs, if the individual otherwise meets the eligibility 
requirements for the program. 38 U.S.C. 4215(b). This proposed section 
requires States to give priority for approval and funding of TAA 
Program benefits and services to trade-affected workers meeting the 
requirements for veterans' priority of service. In particular, this 
priority would become effective if the TAA Program has already 
allocated the full fiscal year funds for TaOA, and States have 
exhausted a significant proportion of their available funds. In that 
case, each State must give priority to veterans and to the specified 
categories of covered persons, over other trade-affected workers' 
applications for services, in approving and funding TaOA.
Section 618.852 Recordkeeping and Disclosure of Information 
Requirements
    Proposed Sec.  618.852 repeats the requirements in 20 CFR 617.57 
concerning recordkeeping and disclosure of information but makes a few 
changes. Proposed paragraph (a) is very similar to 20 CFR 617.57(a), 
with two changes. First, proposed paragraph (a) omits reference to 
reporting form ETA-563. This particular report is no longer required. 
Rather, required reporting will be governed by proposed Sec.  618.864. 
Second, proposed paragraph (a) adds that States are required to 
maintain records that contain any information the Department determines 
to be appropriate in support of any reports the Department may require, 
including the reports specified in proposed Sec. Sec.  618.860(f) and 
618.864(e). Paragraph (a) also contains a cross-reference to the record 
retention requirements of the Uniform Guidance at 2 CFR 200.333. Per 
the Uniform Guidance, States are required to retain records, in 
general, for 3 years after the last action taken on that record 
(determination, appeal, payment, inclusion in a performance or 
financial report, etc.). Proposed paragraph (a)(4) requires States to 
document that employment and case management services described in 
subpart C were provided or offered to a participant. This is not a new 
requirement; however, this was not previously explicitly stated in 
regulation. This NPRM allows for paper-based or electronic case 
management systems, or a combination thereof. All records must be 
available for review by the Department.
    Proposed paragraph (b) retains the requirements in 20 CFR 617.57(b) 
with regard to confidentiality requirements but reformats the section 
and adds a subordinate paragraph addressing information a State obtains 
in support of the Department's investigation of a petition for 
certification of the eligibility of a group of workers. Proposed 
paragraph (b)(1) addresses confidentiality and the disclosure of 
personally identifiable information (PII). The language in proposed 
paragraph (b) is consistent with the language in the Governor-Secretary 
Agreements with the States, which more broadly encompasses any State 
and Federal confidentiality and disclosure requirements that might 
apply to TAA Program information. To facilitate the provision of 
services, States should have workers sign a release of information 
document. Proposed paragraph (b)(2) notes that information obtained by 
the State for the Department in support of an investigation under 
subpart B must comply with the requirements in subpart B of this 
regulation.
    Proposed paragraph (c) is new, added for the first time, and has no 
comparable counterpart in existing regulations or in administrative 
guidance. It explicitly allows for the use of paper and electronic 
records or a combination thereof. This paragraph requires that 
regardless of the medium used, the

[[Page 60206]]

records must be available for review for oversight purposes. This 
addition addresses the improvements in technology and means of 
transmitting, storing, and maintaining documents that have occurred 
since the publication of 20 CFR part 617.
    Proposed paragraph (d) is new, added for the first time, and has no 
comparable counterpart in existing regulations or in administrative 
guidance. It addresses the use of electronic signatures. The Electronic 
Signatures in Global and National Commerce Act (Pub. L. 106-229) 
establishes that electronic contracts and electronic signatures have 
the same legal standing and enforcement as traditional paper contracts 
signed in ink.
Section 618.856 Information, Reports, and Studies
    Proposed Sec.  618.856 retains the language in 20 CFR 617.61 
requiring States to submit such information and reports and conduct 
such studies as the Department requires for TAA Program purposes.
Section 618.860 General Fiscal and Administrative Requirements and Cost 
Classification
    Proposed Sec.  618.860 is a new section that contains general 
fiscal and administrative requirements applicable to State 
administration of the TAA Program. It is modeled on WIOA regulations, 
but with significant differences. Proposed Sec.  618.860 contains no 
requirements that States are not already required to meet. These 
requirements come from the Act, OMB guidance at 2 CFR part 200, the 
Department-specific regulations at 2 CFR 2900, and the Department's 
administrative guidance and regulations. The Department is including 
this section in subpart H to highlight these requirements and improve 
compliance by States and other entities receiving TAA Program funds.
    States should consult the appropriate regional office for 
additional technical assistance related to classification of costs 
under the TAA Program or other requirements in this section.
    Proposed paragraph (a)(1) requires compliance with the Uniform 
Guidance at 2 CFR part 200 and the Department's specific requirements 
at 2 CFR part 2900.
    Proposed paragraph (a)(2) provides that the period of expenditure 
for TAA Program funds granted for employment services, training, and 
job search and relocation allowances is 3 years. This provision follows 
sec. 245(b) of the Act. Funds to pay TRA and RTAA benefits are 
available for expenditure only in the fiscal year for which they are 
awarded.
    Proposed paragraph (a)(3) provides that equipment, as described in 
2 CFR 200.33, and computing devices, as described in 2 CFR 200.20, 
includes equipment acquired with TAA Program funds under TAA Program 
Annual Funding Agreements. This provision restates existing Federal 
requirements and responds specifically to two situations observed in 
the States. First, in the case of a State's internal reorganization, 
any equipment purchased in prior years with TAA Program funds must 
continue to be used for the TAA Program. Second, proposed paragraph 
(a)(3) makes clear that the provisions of 2 CFR 200.313 apply to 
equipment purchased under the TAA Program.
    Proposed paragraph (a)(4) requires, (see 2 CFR 200.307(e)(2)), that 
TAA Program grant recipients apply the addition method to all program 
income earned under TAA Program grants. The instructions for the 
quarterly financial report for the TAA Program also contain this 
requirement.
    Proposed paragraph (b) provides guidance on cost classification as 
administrative costs under the TAA Program, as authorized by sec. 235A 
of the Act and described in each TAA Program Annual Funding Agreement, 
which States are required to submit annually. Paragraph (b)(1) provides 
that the Department will include each fiscal year's administrative cost 
limitation in grant documents or annual funding agreements. Paragraph 
(b)(2) provides a definition of ``administrative costs'' under the TAA 
Program. Although the language in this section is similar to WIOA, 
there is one significant difference. Under the TAA Program, 
administrative costs do not automatically become program costs when 
expended at the subrecipient level. Proposed paragraph (b)(2)(i) 
through (xviii) lists costs deemed administrative costs, following WIOA 
except as described above. Proposed paragraph (b)(3) addresses when 
awards to subrecipients or contractors are administrative costs. 
Proposed paragraph (b)(4) provides that, in compliance with the Uniform 
Guidance, costs for personnel and nonpersonnel must be properly 
allocated between program and administrative costs based on time worked 
or another equitable measure. Proposed paragraph (b)(5) indicates that 
costs for developing systems and procedures, including management 
information systems (MIS), required for administrative functions are to 
be charged as administrative costs. An MIS may include multiple 
components and while some of those components, or modules, will relate 
to services to individuals, others will be purely administrative, such 
as reporting. Where that is the case, States must appropriately 
allocate costs between the employment and case management and the 
administrative costs categories. Maintenance and enhancement of 
electronic case management systems to allow for improved case 
management services can be charged to employment and case management 
funds, rather than to related State administration funds. In addition, 
if multiple programs use an integrated MIS, States must also ensure 
that costs are properly allocated between those programs. Proposed 
paragraph (b)(6) reiterates the requirement to minimize duplication of 
efforts.
    Proposed paragraph (c) addresses the requirement in 2 CFR 200.407 
that grant recipients obtain the grantor's prior written approval 
before purchasing equipment, as defined in 2 CFR 200.33, using grant 
funds. No prior approval is required for the purchase of equipment with 
TAA Program funds. As provided in 2 CFR 200.439(b)(1), the Department 
retains the prior approval requirement for capital expenditures (2 CFR 
200.13) and for capital assets (2 CFR 200.12), other than equipment.
    Proposed paragraph (d) provides the audit requirements applicable 
to States and other entities administering the TAA Program under the 
Uniform Guidance.
    Proposed paragraph (e) ensures compliance with the government-wide 
debarment and suspension requirements and drug-free workplace 
requirements.
    Proposed paragraph (f) contains fiscal reporting requirements for 
States. This paragraph establishes, in accordance with 2 CFR 200.327 
and 2 CFR 2900.14, that States are required to report financial results 
on an accrual basis. States must submit financial data on program 
activities as specified in reporting instructions. Paragraph (f)(4) 
requires States to maintain sufficient records to obligate participant 
funds on at least a quarterly, but no less than on a fiscal year basis, 
and periodically review obligations and de-obligate funds when a 
participant drops, completes, or is no longer eligible for training. 
States are encouraged to obligate and de-obligate funds on a semester-
by-semester basis, when possible, to maximize the availability of 
funds.
    Proposed paragraph (g) provides the statutory limit and minimum for 
administrative and employment and case management costs, respectively. 
Administrative costs under the TAA Program are limited to 10 percent of

[[Page 60207]]

allotted funds under sec. 235A of the Act. The Act also requires States 
to spend a minimum of 5 percent of funds allotted to them for 
employment and case management services described in subpart C. There 
is no corresponding regulation in 20 CFR part 617, but sec. 235A of the 
Act specifically authorizes this requirement. Compliance with the 10 
percent maximum and 5 percent minimum will be monitored throughout the 
grant life cycle and enforced during the closeout process.
    Paragraph (h) is a new requirement. This paragraph requires States 
to maintain sufficient and effective technology solutions required for 
reporting and the provision of services to participants. This 
requirement derives from several provisions of the Uniform Guidance at 
2 CFR part 200. Under 2 CFR 200.205, for example, the Department is 
required to consider a grantee's quality of management systems, 
compliance with reporting requirements, and expenditure of funds. 
Specifically, 2 CFR 200.400(a) states that grantees are ``responsible 
for the efficient and effective administration of the Federal award 
through the application of sound management practices.'' The 
Department, based on its historical oversight of grantees, has found 
some MIS and information technology (IT) systems insufficient to allow 
the State to meet the requirement for ``efficient and effective 
administration.'' This requirement ensures a grantee's ability to serve 
participants, provide required performance and service reports, and 
meet financial management and reporting obligations.
    Finally, paragraph (i) requires the States to dedicate an 
appropriate portion of funds (administrative and employment and case 
management) for the development, maintenance, and upgrading of MIS. An 
appropriate portion must be allocated to maintain and continuously 
improve the State's MIS. This portion will vary by State based on MIS 
deployment and usage. The Department has concluded, based on our 
oversight of the TAA Program, that States have historically failed to 
adequately budget for MIS activity. This has resulted in outdated 
systems that present a risk to the ability of States to provide TAA 
Program benefits to trade-affected workers and to provide the required 
performance and financial reports to the Department.
Section 618.864 Trade Adjustment Assistance Program Performance
    Proposed Sec.  618.864 is a new section that contains TAA Program 
performance requirements, as established by sec. 239(j) of the Act. The 
NPRM uses the term ``worker.'' This is taken directly from the Act. For 
purposes of proposed Sec.  618.864, the term worker means a trade-
affected worker. Proposed paragraph (a) requires States to report 
specified data on TAA Program performance outcomes to the Department 
and requires a description of the efforts made to improve outcomes for 
workers under the TAA Program. Specifically, States must report the 
primary indicators of performance identified in paragraph (b) of this 
section, which are very similar to those reported under WIOA.
    Proposed paragraph (b)(1) identifies the primary indicators of 
performance. These are from the Act and are very similar to those 
established under WIOA. The Act uses the term ``workers'' and in this 
section the term ``workers'' refer to AAWs and AAIWs (trade-affected 
workers) as appropriate. AAIWs are eligible for training and employment 
and case management services only. However, in addition to reporting on 
the percentage of workers as WIOA does, the indicators also include a 
requirement to report on the number of workers who have achieved the 
indicator. In addition, unlike the WIOA programs, the TAA Program is 
not subject to the measure on effectiveness of serving employers. The 
primary indicators of performance under the TAA Program are:
     The percentage and number of workers who received benefits 
under the TAA Program who are in unsubsidized employment during the 
second calendar quarter after exit from the program;
     The percentage and number of workers who received benefits 
under the TAA Program and who are in unsubsidized employment during the 
fourth calendar quarter after exit from the program;
     The median earnings of workers who are in unsubsidized 
employment during the second calendar quarter after exit from the 
program;
     The percentage and number of workers who received benefits 
under the TAA Program (excluding those in OJT and customized training) 
who obtain a recognized postsecondary credential or a secondary school 
diploma or its recognized equivalent, during participation in the 
program or within 1 year after exit from the program; and
     The percentage and number of workers who received benefits 
under the TAA Program who, during a year while receiving such benefits, 
are in an education or training program that leads to a recognized 
postsecondary credential or employment and who are achieving measurable 
gains in skills toward such a credential or employment.
    Paragraph (b)(2) relates to the credential attainment indicator in 
paragraph (b)(1)(iv) and provides that, under the Act, workers who 
received benefits under the TAA Program and obtained a secondary school 
diploma or its recognized equivalent are only included in this 
indicator if they also obtained employment, or are in an education or 
training program leading to a recognized postsecondary credential 
within 1 year after exit from the program.
    Consistent with sec. 239(j)(2)(B) of the Act, proposed paragraph 
(c) provides that the Department and a State may agree upon and 
establish additional indicators of performance. The Department is not 
proposing any additional measures at this time.
    Proposed paragraph (d) requires States, under sec. 239(j)(3) of the 
Act, to use quarterly wage record information, as that term is defined 
in WIOA regulations at 20 CFR 677.175, in measuring progress on the 
primary indicators of performance and any additional measures 
established by the Department. The use of wage record information helps 
ensure the reporting of more complete and accurate performance 
outcomes. Per 20 CFR 667.175, quarterly wage record information means 
intrastate and interstate wages paid to an individual, the Social 
Security number (or numbers, if more than one) of the individual, and 
the name, address, State, and the Federal employer identification 
number of the employer paying the wages to the individual. Proposed 
paragraph (d) authorizes States to use Social Security numbers to 
measure the progress of TAA Program participants using quarterly wage 
information. Proposed paragraph (d) permits States to use supplemental 
information to obtain pertinent wage and employment data in accordance 
with TEGL No. 26-16, ``Guidance on the use of Supplemental Wage 
Information to implement the Performance Accountability Requirements 
under the Workforce Innovation and Opportunity Act.'' The Department 
encourages States to participate in data sharing agreements to access 
wage records. The Department will continue to develop administrative 
guidance to facilitate this process. Further, the Department, in tandem 
with the Department of Education, is developing a new State data 
sharing agreement to aid in the interstate exchange of wage record 
information to ensure States meet the performance

[[Page 60208]]

reporting requirements outlined in the NPRM.
    Proposed paragraph (e) establishes performance reporting 
requirements for States. The Department plans initially to require the 
use of only the Participant Individual Record Layout (PIRL), as part of 
the DOL-Only Performance Accountability, Information, and Reporting 
System (OMB Control No. 1205-0521). States use the PIRL to submit 
required reporting elements. However, proposed paragraph (e) recognizes 
that the Department in the future might require reports that supersede 
or supplement this report. Proposed paragraph (e) also requires the 
verification or validation of reports as accurate.
    Proposed paragraph (f) provides that the Department will publish 
the States' TAA Program performance annually in the form of a TAA 
Annual Report, as required by sec. 239(j)(4) of the Act, including on 
the Department's website. This program performance information will be 
provided at the State level. Due to restrictions on the release of PII, 
files containing the individual records will not be published or made 
available.
    Proposed paragraph (g) implements the control measures required by 
sec. 239(i) of the Act. States are required to have a formal monitoring 
program in place that includes the review of participant case files on 
a regular basis. Section 239(i)(2) of the Act defines control measures 
as measures that are internal to a system used by a State to collect 
data and are designed to ensure accuracy and verifiability of such 
data. A number of administrative guidance documents provided additional 
information, in addition to the TAA Program and UI Annual Funding 
Agreements, the Trade Adjustment Assistance Data Integrity review 
process as described in proposed paragraph (g)(3), grant agreements, 
and Regional monitoring requirements are all part of effective control 
measures.
    Proposed paragraph (g)(1) implements the control measures. Proposed 
paragraph (g)(2) describes that systems must be internal to the State. 
Proposed paragraph (g)(3) explains the purpose of the control measures 
and sets out a number of requirements. It codifies the Trade Adjustment 
Assistance Data Integrity review process used by the Department to 
verify and validate the data reported by the States in accordance with 
TEGL No. 04-14 (and any subsequent changes), ``Trade Adjustment 
Assistance Data Integrity.'' Proposed paragraph (g)(4) requires States 
to implement a formal monitoring program in compliance with the Uniform 
Guidance at 2 CFR part 200 and the Department's exceptions at 2 CFR 
part 2900. The requirement to conduct program monitoring is not new. In 
addition to the requirement in the Uniform Guidance to conduct 
monitoring, administrative guidance established such a requirement, but 
the explicit inclusion of monitoring in the TAA Program regulations is 
new. The monitoring program must be designed to identify and share 
promising State practices, identify and correct deficiencies, and 
identify and address staff training needs. A minimum quarterly random 
sample of 20 cases must be audited and must include at least 2 
certifications issued under subpart B. The four quarterly samples 
within a calendar year should also cover at least four different 
geographic areas of the State administering the program. The Department 
recognizes that in some States, it may be difficult to meet these 
requirements based on enrollment levels and the geographic distribution 
of certifications. If circumstances preclude a State from meeting these 
criteria, the State must contact the appropriate ETA regional office to 
design a monitoring program that better suits the TAA Program in that 
State, and make sure it is sufficient to ensure the accuracy and 
verifiability of such data.
    Proposed paragraph (h) implements sec. 249B(b) of the Act, which 
requires collection and reporting of specific information, and the 
proposed paragraph is taken from sec. 249B(b)(2) through (6) of the 
Act. Proposed paragraph (h) does not include references to sec. 
249B(b)(1) of the Act (data on petitions filed, certified, and denied) 
as these data are collected internally by the Department and included 
in TAA Annual Report. Changes from statutory language include only the 
removal of additional statutory citations; proposed paragraph (h)(2), 
which replaces the phrase credits for health insurance costs under sec. 
35 of the Internal Revenue Code with the HCTC; and proposed paragraph 
(h)(19) consolidates sec. 249B(b)(6) of the Act into one requirement to 
report on the total amount of the TaOA payments to the States in the 
aggregate and for each State. TaOA refers to funds to provide 
employment and case management services; training; and job search and 
relocation allowances, to trade-affected workers, and for related State 
administration. Subpart I discusses TaOA more broadly.
Section 618.868 Unemployment Insurance
    Proposed Sec.  618.868 retains the language of 20 CFR 617.58, but 
changes the reference from part 617 to part 618. This provision ensures 
that UI benefits are not denied or reduced by receipt of payment TAA 
benefits.
Section 618.872 Travel Under the Trade Adjustment Assistance Program
    Proposed Sec.  618.872 carries forward the FTR at 41 CFR chapters 
300 through 304, and the policies of the Department, as the standard 
for State-provided travel, subsistence, and transportation benefits to 
TAA Program participants. This is not a new policy. The Department 
already enforces this requirement under 20 CFR 617.52 by ensuring the 
uniform interpretation of the rule--in this particular instance as it 
relates to payment of benefits related to travel costs. There has been 
some confusion over the years as to which travel policies apply to TAA 
Program participants. This NPRM makes it clear that TAA Program 
participants travel under the same rules as employees of the 
Department--allowing for consistent treatment of participants 
regardless of their location within the United States.
Section 618.876 Verification of Eligibility for Program Benefits
    Proposed Sec.  618.876 implements the requirements at sec. 239(k) 
of the Act for States to verify a participant is in satisfactory 
immigration status. Section 239(k) of the Act directs States to use the 
immigration status verification system in 42 U.S.C. 1320b-7(d) for 
purposes of reestablishing a worker's eligibility for unemployment 
compensation The Department has historically interpreted this 
verification requirement, for the TAA Program, to require participants 
to meet the requirements for eligibility under UI, including the 
requirement that the participant be authorized to work in the United 
States. This is because UI eligibility is a requirement of TRA and 
RTAA, and training can be approved only where there is ``a reasonable 
expectation of employment following completion of . . . training'' 
(sec. 236(a)(1)(C) of the Act). Without authorization to work in the 
United States, there can be no reasonable expectation of employment 
following completion of training.
    While the Personal Responsibility and Work Opportunity Reform Act 
(PRWORA) ordinarily prescribes the categories of aliens eligible for 
Federal public benefits, which includes many of the benefits offered 
under the TAA Program, as a required one-stop partner under WIOA the 
TAA Program is governed by WIOA sec. 188 and the corresponding 
regulations, which limit the scope of PRWORA's application. WIOA sec. 
188(a)(5) specifically

[[Page 60209]]

requires that participation in programs and activities and receipt of 
funds under WIOA title I be available to ``citizens and nationals of 
the United States, lawfully admitted permanent resident aliens, 
refugees, asylees, and parolees, and other immigrants authorized by the 
Attorney General to work in the United States.'' 29 U.S.C. 3248(a)(5). 
Thus, for immigration status verification under the TAA Program, 
``satisfactory immigration status'' is not defined by PRWORA, but by 
WIOA and the eligibility requirements of the TAA Program itself.
    As proposed paragraph (b) explains, for participants who obtained 
UI, the Act considers the initial verification required by sec. 239(k) 
of the Act to have been completed through use of the Systematic Alien 
Verification for Entitlement (or SAVE) program maintained by the United 
States Customs and Immigration Service (or USCIS) at the time 
eligibility for UI benefits was determined. The State is not required 
to reverify the participant's immigration status unless the 
documentation used during the initial verification is set to expire 
during the period the participant is eligible to receive TAA benefits.
    Proposed paragraph (c) requires the State to redetermine 
periodically the eligibility of a noncitizen or national to ensure 
their continued satisfactory immigration status. The timing of the 
redetermination is based on the expiration date of materials used 
during the initial verification process and reverification must be done 
before the individual's status expires.
Section 618.884 Special Rule With Respect to Military Service
    Proposed Sec.  618.884 codifies the special rule with regard to 
military service established in sec. 233(i) of the Act. Proposed 
paragraph (a) provides that a State may waive any requirement of this 
part that the State determines is necessary to ensure that an AAW who 
is a member of a reserve component of the Armed Forces and serves a 
period of duty described in proposed paragraph (a)(2) is eligible to 
receive TRA, training, and other benefits under this part in the same 
manner and to the same extent as if the worker had not served the 
period of duty. Proposed paragraph (b) defines period of duty for 
various classes of military service. Although the Act uses the phrase 
``may waive,'' the Department strongly encourages States to apply this 
rule broadly to provide service members the most flexible access to the 
TAA Program allowed by law.
Section 618.888 Equitable Tolling
    Proposed Sec.  618.888 originates from administrative guidance. It 
clarifies that TAA Program deadlines may be equitably tolled and 
provides the limited circumstances under which equitable tolling may be 
available. Proposed paragraph (a) sets out a uniform test for 
determining when equitable tolling is available. It adopts the exacting 
standards for equitable tolling applied by the U.S. Supreme Court in a 
variety of contexts. See, e.g., Menominee Indian Tribe of Wisc. v. 
United States, 136 S. Ct. 750, 755 (2016); Pace v. DiGuglielmo, 544 
U.S. 408, 418 (2005).
    Proposed paragraph (b) sets out a burden-shifting framework for 
equitable tolling in one unique circumstance--when the State fails to 
give required notice to a worker of a particular benefit (or potential 
benefit) and so the deadline for that benefit (or potential benefit) 
runs without the worker's knowledge. This circumstance only applies 
when the particular notice is one expressly required by this part 618. 
If a worker alleges (or claims) that the State failed to give such 
required notice, the State can rebut that evidence definitively by 
showing that the worker received actual notice by other means. Proposed 
paragraph (b) acts to emphasize to States the importance of complying 
with the notice requirements in this part 618. It should not be 
construed to otherwise lessen or lighten a worker's burden to show 
entitlement to equitable tolling in other circumstances.
    Proposed paragraph (c) explains that a deadline equitably tolled is 
tolled for as long as the extraordinary circumstance preventing timely 
filing exists. Once the extraordinary circumstance is removed, then the 
deadline clock begins ticking again.
    Finally, proposed paragraph (d) sets a limit on how long a deadline 
may be equitably tolled: 36 months. For example, if a deadline were to 
require the submission of an application by September 15, 2020, but 
extraordinary circumstances prevented timely submission, the latest the 
application could possibly be submitted, even with the benefit of 
equitable tolling, is September 15, 2023. The 36-month limit strikes a 
balance between, on the one hand, fairness and equity for individual 
workers and, on the other, the need for clarity and efficiency in the 
operation of the program as a whole. If equitable tolling were 
permitted to extend deadlines longer, or indefinitely, at least two 
adverse consequences would result. First, financial planning for the 
TAA Program would be more difficult because of potentially large 
numbers of dormant claims. Second, administration of the program would 
become more costly as State-level employees and reviewers applied the 
equitable-tolling test rather than simply accepting or denying claims; 
the fact-finding difficulties associated with older, stale evidence 
would compound this problem. All this work would leave fewer resources 
for workers themselves. The Department seeks comments on the 
establishment of this limit.
Section 618.890 Staffing Flexibility
    Proposed Sec.  618.890 on staffing flexibility amends the current 
rule at this same section (Sec.  618.890) to clarify that only certain 
activities under the TAA Program need to be performed by staff covered 
by a system meeting Federal merit personnel criteria regardless of 
whether they are funded by the TAA Program. This is a significant 
change. The Department has received inquiries in recent years about the 
applicability of the Federal merit system standards, promulgated by the 
U.S. Office of Personnel Management (OPM) in 5 CFR 900.603, to the TAA 
Program. These standards apply to the States' administration of, among 
other things, the UI program as a condition of the States receiving 
administrative grants.
    The changes give States the freedom to staff employment case 
management services in the most effective and efficient way, using a 
combination of State employees, local government employees, contracted 
services, and other staffing models in the way that makes the most 
sense for them. This allows States to provide these services in a more 
seamless manner along with other programs co-located at the American 
Job Centers. One-size-fits-all merit-personnel-system staffing 
requirements have been part of the TAA regulations only since 2010, see 
75 FR 16988 (Apr. 2, 2010), though they were part of the Governor-
Secretary Agreements from 1975 to 2005. Based on program oversight 
activity and observations of operations at the State and local level, 
the Department now concludes that States should have the flexibility to 
use the staffing solutions that are most appropriate for their unique 
situations. In imposing the staffing requirements in 2010 by 
regulation, the Department stated that its purpose was promoting 
consistency, efficiency, accountability, and transparency. See id. at 
16994-95. The Department values these goals but recognizes that they 
can be met by approaches other than a requirement

[[Page 60210]]

mandating one-size-fits-all merit staffing. This proposed rule fulfills 
other valuable policy objectives as well. Allowing States flexibility 
in their administration of the TAA Program gives them the opportunity 
to innovate, better integrates WIOA services, and may improve 
efficiency by focusing States on serving employers, workers, and 
training programs rather than complying with one-size-fits-all staffing 
requirements. Under the proposed rule, the Department would continue to 
hold States accountable for complying with their Governor-Secretary 
Agreements, consistent with the Act and its implementing regulations.
    The Act requires States to provide the benefits and services 
authorized under the Act for trade-affected workers and to secure 
appropriate services provided through the one-stop delivery system 
established under WIOA. To avoid imposing barriers to integration of 
services among the one-stop partner programs, the regulations proposed 
here allow such services to be provided by State staff, local staff, or 
other local one-stop center employees. WIOA envisions an integrated 
workforce development system that provides streamlined service delivery 
of the WIOA partner programs, including the TAA Program. For services 
under WIOA's adult, dislocated worker, and youth programs, Congress did 
not require, nor does the Department require, that they be provided 
with personnel that meet Federal merit personnel system criteria. 
States and local areas have discretion in how to staff the provision of 
WIOA programs and services, and they have adopted a variety of staffing 
approaches--local-area staff, contractors, and State employees. The 
specific staffing requirements in the current TAA Program regulations 
may inhibit full integration of the TAA Program with WIOA's other 
services. This proposal, if finalized, would allow States to use the 
same service-delivery model for both the TAA Program and WIOA.
    Some staffing requirements remain. Proposed paragraph (a) provides 
that the merit staff provisions of SSA apply to the appeals process 
under applicable State law. This is required by the Act at sec. 239(e) 
(19 U.S.C. 2311(e)) and also comports with the staffing requirements 
for State unemployment insurance offices.
    Proposed paragraph (b) requires that all determinations on 
eligibility must be made by State staff, with the exception of the 
functions in paragraph (a) of this section, which must be carried out 
by merit staff. This aligns with sec. 239(e) of the Act as well as the 
staffing requirements for State unemployment insurance offices and 
ensures access to the appeals process under applicable State law.
    Proposed paragraph (c) explains that all other functions under the 
TAA Program may be carried out using a variety of staffing models. 
Those models could include State staff under a merit-personnel system, 
other State staff, local providers, one-stop partners, or a combination 
of these solutions.
    The Department has concluded that it is authorized to provide 
States this flexibility. When imposing the staffing requirements in 
2010, the Department stated that ``promulgation of the merit staffing 
rule is within the discretionary authority delegated to it to interpret 
the Trade Act and administer the TAA program.'' 75 FR 16988, 16990. The 
Department also noted that ``the Trade Act does not directly address 
merit staffing; the legislative history is ambiguous, and for 30 years 
Congress did not expressly repudiate the Department's longstanding 
interpretation of the Trade Act as requiring merit staffing.'' Id. The 
Department also relied on the Federal district court decision in 
Michigan v. Herman, 81 F. Supp. 2d 840 (W.D. Mich. 1998), a case 
construing the staffing requirements under the Wagner-Peyser Act. 
There, the court held that the Department's interpretation of the 
Wagner-Peyser Act as requiring merit-personnel staffing was 
``reasonable and permissible,'' but also observed that ``there is ample 
basis for a conflicting interpretation of the Wagner-Peyser Act's 
requirements.'' Id. at 848.
    The Department recognized then that it had discretion to impose 
staffing requirements in the absence of a clear congressional mandate 
in one direction or the other. By the same token, the Department has 
discretion to remove those staffing requirements. It proposes to do so 
here for the reasons described above.
    This means that TAA Program funding may be used to pay for 
employment and case management services rendered by State merit staff, 
State staff, and non-State staff, such as local providers, one-stop 
partners, and so on. The NPRM would require all determinations on 
eligibility for program benefits be approved by State staff.
Section 618.894 Nondiscrimination and Equal Opportunity Requirements
    Proposed Sec.  618.894 has no corresponding section in 20 CFR part 
617 and addresses the applicability of the nondiscrimination and equal 
opportunity requirements contained in 29 CFR parts 31, 32, 35, 36, and 
38.
    Proposed paragraph (a) notifies States and subrecipients of 
financial assistance under the TAA Program that, as recipients of 
Federal financial assistance, they are subject to the requirements of 
29 CFR parts 31, 32, 35, and 36, which set forth prohibitions relating 
to discrimination.
    Proposed paragraph (b) notifies States and subrecipients of 
financial assistance under the TAA Program of the circumstances under 
which they are subject to 29 CFR part 38, which implements the 
nondiscrimination and equal opportunity provisions in sec. 188 of WIOA. 
It states that WIOA nondiscrimination regulations apply to States and 
subrecipients that operate their TAA programs and activities ``as part 
of the one-stop delivery system'' as provided in 29 CFR 38.2(a)(2). 
Since States and entities that carry out ``activities authorized under 
chapter 2 of title II of the Trade Act of 1974'' (29 U.S.C. 
3151(b)(1)(B)(vii)) are required one-stop partners, WIOA 
nondiscrimination regulations apply to them ``to the extent that the 
programs and activities are being conducted as part of the one-stop 
delivery system'' (29 CFR 38.2(a)(2)). Coverage under this provision is 
not limited to States or subrecipients that colocate their operations 
in a one-stop center. Proposed paragraph (b)(2) notifies States and 
subrecipients they are also subject to 29 CFR part 38 if they otherwise 
meet the definition of ``recipient'' in that part.
    Proposed paragraph (c) directs those with questions about the cited 
nondiscrimination provisions to the Department's Civil Rights Center.
    Proposed paragraph (d) explains how the cited nondiscrimination 
provisions affect the applicability of any other Federal 
nondiscrimination laws, or any relevant State or local laws, to the TAA 
Program. Proposed paragraph (d)(1) provides that proposed Sec.  618.894 
does not affect any rights regarding, or protections against, 
discrimination provided by other Federal laws. Proposed paragraph 
(d)(2) likewise provides that proposed Sec.  618.894 does not affect 
any rights regarding, or protections against, discrimination provided 
by other State and local laws, except as described in paragraph (d)(3). 
Finally, paragraph (d)(3) prohibits States from engaging in 
discrimination that is prohibited by 29 CFR parts 31, 32, 35, 36, and 
38 (as applicable) in the areas pertaining to the TAA Program: The 
reception of aid, benefits, services, training or employment; 
participation in TAA programs and activities; employment at a State; 
and practice in

[[Page 60211]]

any occupation or profession. A State or local antidiscrimination law 
is incompatible if it, among other examples, provides less protection 
to an individual than that provided by 29 CFR part 31, 32, 35, 36, or 
38; if it permits favoritism prohibited by those parts; or if it does 
not provide an exception to antidiscrimination law provided by those 
parts.
Section 618.898 Applicable State Law
    Proposed Sec.  618.898 is substantially the same as 20 CFR 617.16 
and eliminates only minor outdated citations and 20 CFR 617.16(e) 
describing liable State, which has been incorporated into proposed 
Sec.  618.824. The term ``applicable State law'' has been defined in 
proposed subpart A rather than in this proposed section. The separate 
paragraph addressing workers entitled to UI under the Railroad 
Unemployment Insurance Act in 20 CFR 617.16(d) is also proposed for 
removal because it has been incorporated into the proposed definition 
of ``applicable State law'' in Sec.  618.110.

I. Subpart I--Allocation of Funds to States for Training and Other 
Activities

    Proposed subpart I revises the regulations currently found at 20 
CFR 618.900 through 618.940. The Department first published these 
regulations on April 2, 2010 (75 FR 16988); they became effective May 
3, 2010. The proposed updates in this NPRM reflect subsequent statutory 
revisions and policy updates. Subpart I addresses the Act's provisions 
at secs. 236(a)(2) and 245 and establishes how funds appropriated for 
TaOA are allocated by the Department to the States. Some highlights of 
changes to the regulation include introduction of a new term, TaOA; a 
statutory update of the annual funding limit; and an update to the 
reserve fund request process. This proposed subpart also addresses the 
recapture and reallocation provisions established by sec. 245(c) of the 
Act.
Section 618.900 Annual Cap on Funds Available for Training and Other 
Activities
    Proposed Sec.  618.900 is revised to remove the introductory 
sentence and include additional revisions to the existing rule at 20 
CFR 618.900, as discussed below. Proposed Sec.  618.900(a) summarizes 
what services may be paid under the funding, and introduces a new term, 
``Training and Other Activities,'' and its acronym, TaOA, both of which 
refer to the benefits and services described in secs. 235 through 238 
of the Act. TaOA benefits and services are: Employment and case 
management services, training, job search and relocation allowances, 
and related State administration. Since sec. 236(a)(2)(A) of the Act 
was amended by TAAEA, and retained in TAARA 2015, to provide that the 
annual cap applies to funding for TaOA, not just to training under sec. 
236, this new term is adopted to include these additional benefits and 
services. The phrase ``payments that may be made'' in the existing rule 
at 20 CFR 618.900 is replaced by ``funds made available,'' to accord 
with the language of sec. 236(a)(2)(A) of the Act. This section is also 
updated to reflect TAARA 2015's annual funding limit of $450,000,000 
for FYs 2015 through 2021.
    Proposed Sec.  618.900(b) is new and explains the statutory period 
of availability of funds set out at sec. 245(b) of the Act. Funds 
allocated to States under the TAA Program for TaOA can be spent in the 
fiscal year awarded and the next 2 fiscal years, for a maximum 
altogether of 3 fiscal years.
Section 618.910 Initial Allocation of Funds
    Proposed Sec.  618.910 updates the language in the existing rule at 
20 CFR 618.910 to reflect statutory changes and minor grammatical 
corrections and other clarifications. These changes primarily relate to 
indicating, consistent with proposed Sec.  618.900(a), that the annual 
funding cap in sec. 236(a)(2)(A) of the Act applies to TaOA, not only 
to the training services described in sec. 236. Proposed Sec.  
618.910(a) through (f)(1) contain nonsubstantive changes to enhance the 
readability of the section.
    Proposed Sec.  618.910(f)(2) moves into a separate paragraph the 
first sentence of the existing rule at 20 CFR 618.910(f)(3) giving each 
of the four factors listed in proposed paragraphs (f)(1)(i) through 
(iv) equal weight. Proposed Sec.  618.910(f)(3) retains the rest of the 
existing rule at 20 CFR 618.910(f)(3) but removes the word ``weighted'' 
in referring to the factors.
    The existing rules at 20 CFR 618.910(f)(2) and (4) are both 
removed. However, under its authority at sec. 236(a)(2)(C)(ii)(V) of 
the Act, the Department may, through promulgation of changes to the 
rule, adjust the weights provided in proposed paragraph (f)(2), or add 
additional factors. Any needed changes to the formula in the future can 
be done through rulemaking, which will benefit from the views of the 
public and the procedural safeguards of the notice-and-comment process.
Section 618.920 Reserve Fund Distributions
    Proposed Sec.  618.920 describes the reserve fund request process 
established by sec. 236(a)(2)(D). Proposed Sec.  618.920(a) updates the 
existing rule at 20 CFR 618.920(a) by removing the language that 
restricts a State from receiving additional funds for administrative 
costs or employment and case management costs without also requesting 
additional funds for training. Funds are not awarded by the Department 
against these specific line items, so there is no way for the 
Department to award funds in this manner. Furthermore, the statutory 
limitation on administrative cost, established by sec. 235A(1) of the 
Act, always applies.
    The existing rule at 20 CFR 618.920(b) is divided into proposed 
Sec.  618.920(b) and (c) for organizational purposes. There are minor 
edits in the NPRM, as well as a reference to TaOA instead of training 
funds. There are no substantive changes to the existing rule at 20 CFR 
618.920(b).
Section 618.930 Second Distribution
    Proposed Sec.  618.930 updates the existing rule at 20 CFR 618.930 
regarding the second distribution of TaOA funds, by changing the 
reference from training funds to TaOA funds, and makes other minor 
language clarifications and organizational changes.
Section 618.940 Insufficient Funds
    Proposed Sec.  618.940 modifies the existing rule at 20 CFR 618.940 
to include the expanded list of benefits and services in addition to 
training for which funds may be expended. The Department will 
communicate by administrative guidance to States as necessary regarding 
the continued operation of the TAA Program if the Department determines 
that there are insufficient funds available for the remainder of a 
fiscal year. The intent of the existing rule at 20 CFR 618.940 is 
unchanged.
Section 618.950 Recapture and Reallocation of Training and Other 
Activities Funds
    Proposed Sec.  618.950 is new and provides the description of 
recapture and reallocation procedures that the Department may use to 
implement the recapture and reallocation provisions of sec. 245(c) of 
the Act. Although the Department is including this provision in the 
NPRM, this is an extreme action that will only be taken in the event of 
a catastrophic event. This will not be an annual process.

[[Page 60212]]

    Consistent with sec. 245(c) of the Act, proposed Sec.  
618.950(a)(1) provides that funds remaining unobligated at the end of 
the second or third fiscal year after the funds were provided to the 
State may be recaptured. Proposed Sec.  618.950(a)(2) provides that 
those recaptured funds may be reallocated in accordance with the 
procedures established in this section of the NPRM.
    Proposed Sec.  618.950(b) sets out the circumstances under which 
the Department may recapture and reallocate funds. The Department may 
recapture and reallocate unobligated funds when it is determined there 
are, or are projected to be, insufficient funds in a State or States to 
carry out TaOA for a fiscal year, or when the recapture and 
reallocation of funds would likely promote the more efficient and 
effective use of funds among the States. The Department concludes these 
procedures provide the necessary flexibility to promote sound financial 
practices, and use the limited available funds most effectively, by 
directing unobligated funds that are not likely to be spent to those 
States that are more in need of such funds in order to continue to 
provide program services.
    Proposed Sec.  618.950(c) and (d) provide the methodology that will 
be used during the recapture and reallocation process. If the 
Department determines that there are, or are projected to be, 
insufficient funds in a State or States to carry out TaOA for a fiscal 
year, proposed Sec.  618.950(c) allows the Department to recapture 
unobligated funds from the State or States with the highest percentage 
of unobligated or unexpended funds from the second or third fiscal year 
after the year in which the funds were awarded, and reallocate them to 
the States with, or projected to have, insufficient funds.
    Proposed Sec.  618.950(d) allows the Department to recapture funds 
from the State or States with the highest percentage of unobligated or 
unexpended funds from the second or third fiscal year after the year in 
which the funds were awarded, and reallocate them to the States with 
the lowest percentage of unobligated or unexpended funds or to all 
States from which funds are not being recaptured.
    Proposed Sec.  618.950(e) provides that if the Department 
determines to recapture and reallocate funds under this section, an 
administrative notice must be sent to the States describing the 
methodology used and the amounts to be recaptured from and reallocated 
to each affected State not less than 15 business days in advance of the 
recapture of funds.
    Lastly, proposed Sec.  618.950(f) makes clear that the reallocation 
of funds under this section does not extend the period of availability 
for those funds.
    Neither 20 CFR part 617 nor 20 CFR part 618 discuss funding for TRA 
or RTAA. This NPRM does not provide regulatory text for TRA or RTAA 
funding since those allocations are made through the Department's 
administration of the UI Program. The one exception, as provided by 
sec. 235A(1)(C) of the Act, and addressed in proposed subpart H, 
involves the use of TAA Program funds for the administration of RTAA.

V. Agency Determinations

A. Legal Authority

    The Trade Act of 1974 (Pub. L. 93-618), title II, chapter 2, 
established the programs collectively known as the Trade Adjustment 
Assistance Program (TAA Program) (codified at 19 U.S.C. 2271 et seq.). 
This statute has been amended many times since its enactment, including 
multiple amendments since 2002 that have substantially affected the TAA 
Program (e.g., Pub. L. 107-210 (2002); Pub. L. 111-5 (2009); Pub. L. 
112-40 (2011); Pub. L. 114-27 (2015)). The Department's existing 
regulations under the Act, codified at 20 CFR parts 617 and 618, and 29 
CFR part 90, have not been fully updated in response to the various 
statutory amendments to the Act. As a result, some portions of the 
existing regulations may not reflect current law. Section 248(a) of the 
Act (19 U.S.C. 2320(a)) requires that the Department prescribe such 
regulations as are necessary to carry out the provisions of the Act. 
Therefore, the Department seeks to develop and issue an NPRM that 
proposes to update and consolidate the existing regulations in order to 
fully implement all statutory amendments to the TAA Program.

B. Executive Orders 12866 (Regulatory Planning and Review), 13563 
(Improving Regulation and Regulatory Review), and 13771 (Reducing 
Regulation and Controlling Regulatory Costs)

    Under E.O. 12866, OMB's Office of Information and Regulatory 
Affairs (OIRA) determines whether a regulatory action is significant 
and, therefore, subject to the requirements of the E.O. and review by 
OMB. See 58 FR 51735 (Oct. 4, 1993). Section 3(f) of E.O. 12866 defines 
a ``significant regulatory action'' as an action that is likely to 
result in a rule that: (1) Has an annual effect on the economy of $100 
million or more, or adversely affects in a material way a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or communities 
(also referred to as economically significant); (2) creates serious 
inconsistency or otherwise interferes with an action taken or planned 
by another agency; (3) materially alters the budgetary impacts of 
entitlement grants, user fees, or loan programs, or the rights and 
obligations of recipients thereof; or (4) raises novel legal or policy 
issues arising out of legal mandates, the President's priorities, or 
the principles set forth in the E.O. Id. Based on the analysis below, 
this NPRM is not an economically significant regulatory action under 
sec. 3(f) of E.O. 12866.
    E.O. 13563 directs agencies to propose or adopt a regulation only 
upon a reasoned determination that its benefits justify its costs; the 
regulation is tailored to impose the least burden on society, 
consistent with achieving the regulatory objectives; and in choosing 
among alternative regulatory approaches, the agency has selected those 
approaches that maximize net benefits. E.O. 13563 recognizes that some 
benefits are difficult to quantify and provides that, where appropriate 
and permitted by law, agencies may consider and discuss qualitatively 
values that are difficult or impossible to quantify, including equity, 
human dignity, fairness, and distributive impacts.
    E.O. 13771, titled Reducing Regulation and Controlling Regulatory 
Costs, was issued on January 30, 2017. This NPRM is expected to be an 
E.O. 13771 deregulatory action, because the cost savings associated 
with the rule are larger than the anticipated costs of the rule. Costs 
associated with the rule are from rule familiarization, the development 
of IEPs for trade-affected workers seeking training or job search 
allowances, and the implementation of two IC forms. Cost savings 
associated with the rule are from revisions to the definition of 
``final determination'' related to judicial appeals and from 
streamlining the reconsideration process.
Outline of the Analysis
    Section V.B.1 describes the need for the NPRM, and section V.B.2 
describes the process used to estimate the costs of the NPRM and the 
general inputs used such as wages and number of affected entities. 
Section V.B.3 explains how the provisions of the NPRM would result in 
quantifiable costs, cost savings, and transfer payments, and presents 
the calculations the Department used to estimate them. In addition, 
section V.B.3 describes the qualitative costs, transfer payments, and 
benefits of the NPRM. Finally, section V.B.4

[[Page 60213]]

summarizes the estimated first-year and 10-year total costs, cost 
savings, net cost savings, and transfer payments of the NPRM. Section 
V.B.5 describes the regulatory alternatives that were considered during 
the development of the NPRM.
Summary of the Analysis
    The Department estimates that the NPRM would result in costs, cost 
savings, and transfer payments. As shown in Exhibit 1, the NPRM is 
expected to have an average annual cost of $5,952 and a total 10-year 
cost of $46,383 (with 7-percent discounting). The NPRM is estimated to 
have annual cost savings of $79,654 and total 10-year cost savings of 
$559,456 (with 7-percent discounting). Cost savings associated with the 
rule are from revisions to the definition of ``final determination'' 
related to judicial appeals and from streamlining the reconsideration 
process. In addition, the NPRM is estimated to result in annual 
transfer payments of $564,257 and total 10-year transfer payments of 
$3,963,105 (with 7-percent discounting). The Department estimates that 
the NPRM would result in net cost savings of $626,333 discounted at 3 
percent and $513,073 discounted at 7 percent, both expressed in 2018 
dollars. For the purpose of E.O. 13771, the annualized net cost savings 
in 2016 dollars, when perpetuated, is $71,434 discounted at 7 
percent.\12\
---------------------------------------------------------------------------

    \12\ Based on OMB's E.O. 13771 guidance memo, M-17-21, 
perpetuated net cost savings for the purposes of E.O. 13771 are 
presented in 2016 dollars. Net cost savings in 2018 dollars are 
converted to 2016 dollars using the GDP deflator from the Bureau of 
Economic Analysis. BEA. (2019). ``Table 1.1.9. Implicit Price 
Deflators for Gross Domestic Product.'' Retrieved from: https://apps.bea.gov/iTable/iTable.cfm?reqid=19&step=3&isuri=1&select_all_years=0&nipa_table_list=13&series=a&first_year=2000&scale=-99&last_year=2019&categories=survey&thetable=x.

     Exhibit 1--Estimated Monetized Costs, Cost Savings, Net Cost Savings, and Transfer Payments of the NPRM
                                                 [2018 dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                     Net cost        Transfer
                                                       Costs       Cost savings     savings \a\      payments
----------------------------------------------------------------------------------------------------------------
Undiscounted 10-Year Total......................         $59,523        $796,540        $737,017      $5,642,570
10-Year Total with 3% Discounting...............          53,132         679,465         626,333       4,813,227
10-Year Total with 7% Discounting...............          46,383         559,456         513,073       3,963,105
 
10-Year Average.................................           5,952          79,654          73,702         564,257
Annualized with 3% Discounting..................           6,229          79,654          73,425         564,257
Annualized with 7% Discounting..................           6,604          79,654          73,050         564,257
                                                 ---------------------------------------------------------------
Perpetuated Net Cost Savings \a\ with 7%          ..............  ..............          71,434  ..............
 Discounting (2016 dollars).....................
----------------------------------------------------------------------------------------------------------------
\a\ Net Cost Savings = [Total Cost Savings] - [Total Costs].

    The costs of the NPRM are those associated with State staff needing 
to familiarize themselves with the new regulations, the development of 
IEPs for trade-affected workers, and the implementation of two IC forms 
(i.e., ETA Form 8561, Study of Domestic Industry, and ETA Form 9185, 
Application for Reconsideration). The largest contributors to the cost 
savings of the NPRM are from revisions to the definition of ``final 
determination'' related to judicial appeals and from streamlining the 
reconsideration process. See the cost and cost savings subsections of 
section V.A.3 (Subject-by-Subject Analysis) below for a detailed 
explanation.
    The Department was unable to quantify one cost, three transfer 
payments, and the benefits of the NPRM. We describe these costs and 
transfer payments, along with the rule benefits, qualitatively in 
section V.A.3 (Subject-by-Subject Analysis).
1. Need for Regulation
    On June 29, 2015, the Trade Preferences Extension Act of 2015 (Pub. 
L. 114-27) was signed into law. Title IV reauthorizes the TAA for 
Workers program through 2021; it is known as TAARA 2015.
    The regulations governing the current TAA Program were last updated 
in 1994, with only minor changes made in 2007 \13\ and 2010. Since that 
time, multiple TAA Program reauthorizations and amendments have 
occurred. In addition, a recent reauthorization and reform of the 
public workforce system, WIOA (Pub. L. 113-128), reaffirms the TAA 
Program as a mandatory partner program in the one-stop delivery system.
---------------------------------------------------------------------------

    \13\ Minor changes were made to 29 CFR part 90.
---------------------------------------------------------------------------

    The Department has addressed all TAA Program reauthorizations and 
amendments through administrative guidance. As a result, a combination 
of regulations and a patchwork of administrative guidance guides the 
worker-group certification process at the Federal level and the 
administration of individual benefits and services at the State level.
    The NPRM would promote transparency by setting out in binding 
regulation the major principles by which the TAA Program operates, and 
they would provide the public and courts with the Department's 
authoritative interpretation of the Act. The NPRM would also include 
changes that increase States' flexibility to administer the program, 
improve service delivery, and reduce costs. In addition, the NPRM would 
incorporate clarifications that draw upon the Department's expertise 
gained from decades of experience operating the TAA Program.
    Through the NPRM, the Department seeks to modernize its TAA Program 
regulations to reflect changes to the workforce, technology, and the 
administration of the program that have occurred since the Department's 
last comprehensive update to the regulations in 1994. The Department 
also seeks to consolidate all applicable program regulations into a 
single section of the CFR.
    The goal of the TAA Program is to help each participating worker 
obtain, as quickly as possible, suitable employment when possible and 
nonsuitable employment otherwise. This goal will be accomplished by 
providing trade-affected workers access to training that will allow 
workers to compete for work at the highest skill levels and highest 
wages achievable, given the workers' preexisting skill levels, 
abilities, and education, and the

[[Page 60214]]

current and projected labor market, and do so as quickly as possible. 
The TAA Program includes the RTAA benefit, which may be available to 
workers 50 years of age or older. The TAARA 2015 reauthorization and 
amendment of the TAA Program restored the major expansions in TAA 
worker group eligibility to service sector workers and workers who are 
affected by trade from any country, including countries that do not 
have Free Trade Agreements with the United States, including China and 
India.
2. Analysis Considerations
    The Department estimated the costs, cost savings, and transfer 
payments of the NPRM relative to the existing baseline, that is, the 
current practices for complying with, at a minimum, the TAA Program as 
currently codified at 20 CFR parts 617 and 618, and 29 CFR part 90, as 
well as in administrative guidance.\14\ The Department explains how the 
required actions of States, government agencies, and other related 
entities were linked to the expected costs, cost savings, transfer 
payments, and benefits.
---------------------------------------------------------------------------

    \14\ Current TEGLs related to the TAA Program can be found at 
https://www.doleta.gov/tradeact/law/directives-guidance/.
---------------------------------------------------------------------------

    In accordance with the regulatory analysis guidance articulated in 
OMB Circular A-4 and consistent with the Department's practices in 
previous rulemakings, this regulatory analysis focuses on the likely 
consequences of the NPRM (i.e., costs, cost savings, transfer payments, 
and benefits that accrue to entities affected). The analysis covers 10 
years (2019 through 2028) to ensure it captures major costs, cost 
savings, and transfer payments that accrue over time. The Department 
expresses all quantifiable impacts in 2018 dollars and uses 3-percent 
and 7-percent discounting following OMB Circular A-4.
    Exhibit 2 presents the number of entities that would be affected by 
the requirements of the NPRM. The Department provides these estimates 
and uses them throughout this analysis to estimate the costs, cost 
savings, and transfer payments of the NPRM.

            Exhibit 2--Number of Affected Entities by Type a
------------------------------------------------------------------------
                       Entity type                            Number
------------------------------------------------------------------------
States (total) \b\......................................              52
Additional trade-affected workers that will require an                23
 IEP due to a comprehensive and specialized assessment
 (annual) \c\...........................................
Number of firms that will participate in domestic                     12
 industry study each year (annual) \d\..................
Number of applications for reconsideration submitted                  25
 each year (annual).....................................
------------------------------------------------------------------------
\a\ Unless otherwise noted, the number of affected entities was obtained
  from Trade Act Participant Report (TAPR)--State quarterly reporting
  and record keeping information; Management Information System (MIS)--
  OTAA's petition database. Data as of December 5, 2017.
\b\ The 52 States used for purposes of this analysis consist of the 50
  States, the District of Columbia, and Puerto Rico.
\c\ The Department derived this number by taking the average of the
  annual number of individuals who received training, job search, or
  relocation allowances (i.e., program exiters) in FY 2013 through FY
  2017.
\d\ Since 1998, the Department has conducted three domestic industry
  studies. However, for purposes of this analysis, the Department
  estimates that it will conduct one study per year.

Estimated Number of Workers and Level of Effort \15\
---------------------------------------------------------------------------

    \15\ Trade Act Participant Report (TAPR)--State quarterly 
reporting and record keeping information; Management Information 
System (MIS)--OTAA's petition database. (2017). Unpublished data.
---------------------------------------------------------------------------

    The Department presents the estimated average number of trade-
affected workers and the estimated average level of effort required per 
worker for each activity in the subject-by-subject analysis. To derive 
these estimates, Department TAA Program experts estimated the average 
levels of effort and the average number of workers needed for each 
activity to meet the requirements relative to the baseline (i.e., the 
current practice under the TAA Program). These estimates are the 
national averages for all States; thus, some States could experience 
higher actual costs, cost savings, or transfer payments, while these 
impacts could be lower for other States.
Compensation Rates
    In the subject-by-subject analysis, the Department presents the 
labor and other costs associated with the implementation of the 
provisions of the NPRM. Exhibit 3 presents the compensation rates for 
the occupational categories expected to experience a change in the 
level of effort (workload) due to the NPRM. We use Bureau of Labor 
Statistics (BLS) mean hourly wage rates for State government and 
private sector employees.16 17 18 We use OPM and U.S. courts 
wage rates for Federal employees.19 20 We adjust the wage 
rates

[[Page 60215]]

to reflect total compensation, which includes nonwage factors such as 
overhead \21\ and fringe benefits (e.g., health and retirement 
benefits). For the State government employees, we use an overhead rate 
of 41 percent and a fringe benefits rate of 59 percent. The fringe 
benefits rate is derived from the ratio of average total compensation 
\22\ to average wages and salaries in 2018.\23\ For the private sector 
employees, we use an overhead rate of 57 percent and a fringe benefits 
rate of 43 percent.\24\ The fringe benefits rate is derived from the 
ratio of average total compensation \25\ to average wages and salaries 
in 2018 for the private sector.\26\ For the Federal Government, we use 
an overhead rate of 37 percent \27\ and a fringe benefits rate of 63 
percent.\28\ We then multiply the loaded wage factor by the 
corresponding occupational category wage rate to calculate an hourly 
compensation rate.
---------------------------------------------------------------------------

    \16\ BLS. (2019). ``May 2018 National Industry-Specific 
Occupational Employment and Wage Estimates: NAICS 999200--State 
government, excluding schools and hospitals (OES designation).'' 
Retrieved from: http://www.bls.gov/oes/current/naics4_999200.htm. 
The May 2018 mean hourly wages were adjusted to December 2018 values 
using Employment Cost Indices (ECI) for State and local government 
workers. ECI data were obtained from ``Table 7. Employment Cost 
Index for total compensation, for State and local government 
workers, by occupation and industry (not seasonally adjusted).'' 
BLS. (2019). ``Employment Cost Index Historical Listing--Volume V, 
Continuous Occupational and Industry Series, September 1975-March 
2019 (December 2005=100).'' Retrieved from: https://www.bls.gov/web/eci/ecicois.pdf.
    \17\ BLS. (2019). ``May 2018 National Occupational Employment 
and Wage Estimates by Ownership: Cross-industry, private ownership 
only: SOC Major Groups in Cross-industry, private ownership only 
(OES designation).'' Retrieved from: https://www.bls.gov/oes/current/000001.htm. The May 2018 mean hourly wages were adjusted to 
December 2018 values using Employment Cost Indices (ECI) for private 
industry workers. ECI data were obtained from ``Table 5. Employment 
Cost Index for total compensation, for private industry workers, by 
occupation and industry, Continuous occupational and industry series 
(not seasonally adjusted).'' BLS. (2019). ``Employment Cost Index 
Historical Listing--Volume V--Continuous Occupational and Industry 
Series, September 1975-March 2019 (December 2005=100.'' Retrieved 
from: https://www.bls.gov/web/eci/ecicois.pdf.
    \18\ ETA Form 9185 (Application for Reconsideration) may be 
filed by a company official, a union representative, two workers, or 
a State. To estimate the average hourly wage rate for the person 
completing ETA Form 9185, the Department used a weighted-average 
based on the percent of petitioners by type (in FY 2017) and the 
corresponding hourly rate: (1) Company/union officials account for 
21% of petitioners at an hourly labor wage rate of $60.60 per hour; 
(2) workers account for 17% of petitioners at an hourly labor wage 
rate of $24.71 per hour; (3) States account for 62% of petitioners 
at an hourly labor wage rate of $24.96 per hour. This calculation 
results in a weighted average resulted of $32.40 ([0.21 x $60.60] + 
[0.17 x $24.71] + [0.62 x $24.96]).
    \19\ Office of Personnel Management (OPM). (2018). ``Salary 
Table 2018-DCB Incorporating the 1.4% General Schedule Increase and 
a Locality Payment of 28.22% for the Locality Pay Area of 
Washington-Baltimore-Arlington, DC-MD-VA-WV-PA.'' Retrieved from: 
https://www.opm.gov/policy-data-oversight/pay-leave/alaries-wages/salary-tables/pdf/2018/DCB_h.pdf. Federal employee wage rates are 
used to estimate cost savings associated with reconsiderations and 
judicial appeals. Because these two processes are conducted by 
Headquarter staff, the Department uses DC-MD-VA-WV-PA wage rates to 
estimate labor costs.
    \20\ U.S. Courts. (2019). ``Judicial Compensation.'' Retrieved 
from: http://www.uscourts.gov/judges-judgeships/judicial-compensation.
    \21\ The Department derived these overhead factors based on 
Department administrative guidance, developed with OIRA, on how to 
include overhead costs in regulatory impact analyses.
    \22\ BLS. (2019). ``2018 Employer Costs for Employee 
Compensation.'' Retrieved from: https://www.bls.gov/ncs/ect/data.htm. Total compensation for all workers. Average Series ID 
CMU3010000000000D, CMU3010000000000P. To calculate the average total 
compensation in 2018, we averaged the total compensation for all 
workers for Quarters 1 through 4.
    \23\ BLS. (2019). ``2018 Employer Costs for Employee 
Compensation.'' Retrieved from: https://www.bls.gov/ncs/ect/data.htm. Wages and salaries for all workers. Average Series ID 
CMU3020000000000D, CMU3020000000000P. To calculate the average wage 
and salary in 2018, we averaged the wages and salaries for all 
workers for Quarters 1 through 4
    \24\ The Department derived this overhead factor based on 
Department administrative guidance, developed with OIRA, on how to 
include overhead costs in regulatory impact analyses.
    \25\ BLS. (2019). ``2018 Employer Costs for Employee 
Compensation.'' Retrieved from: https://www.bls.gov/ncs/ect/data.htm. Total compensation for all workers. Average Series ID 
CMU2010000000000D, CMU2010000000000P. To calculate the average total 
compensation in 2018, we averaged the total compensation for all 
workers for Quarters 1 through 4.
    \26\ BLS. (2019). ``2018 Employer Costs for Employee 
Compensation.'' Retrieved from: https://www.bls.gov/ncs/ect/data.htm. Wages and salaries for all workers. Average Series ID 
CMU2020000000000D, CMU2020000000000P. To calculate the average wage 
and salary in 2018, we averaged the wages and salaries for all 
workers for Quarters 1 through 4.
    \27\ The Department derived this overhead factor based on 
Department administrative guidance, developed with OIRA, on how to 
include overhead costs in regulatory impact analyses.
    \28\ Department of Labor. (2018). ``DOL-Only Performance 
Accountability, Information, and Reporting System; OMB Control No. 
1205-0521.'' Retrieved from: https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201802-1205-003.
---------------------------------------------------------------------------

    The Department uses the hourly compensation rates presented in 
Exhibit 3 throughout this analysis to estimate the labor costs for each 
provision.

                                          Exhibit 3--Compensation Rates
                                                 [2018 dollars]
----------------------------------------------------------------------------------------------------------------
                                                                   Loaded wage factor components
                                                                 --------------------------------     Hourly
            Position                Grade level   Average hourly                      Fringe       compensation
                                                       rate          Overhead        benefits          rate
                                                                      factor          factor
                                  ..............               a               b               c    d = a + (a x
                                                                                                    b) + (a x c)
----------------------------------------------------------------------------------------------------------------
Private Sector Employees:
    Employment Counselor........             N/A          $21.79            0.57            0.43          $43.58
    Attorney....................                           74.49                                          148.98
    Individual Completing ETA                              60.60                                          121.20
     Form 8561, Domestic
     Industry Study.............
    Individual Completing ETA                              32.40                                           64.80
     Form 9185, Application for
     Reconsideration............
State Government Employees:
    Employment Counselor........             N/A           24.96            0.40            0.60           49.92
    Attorney....................                           45.20                                           90.40
Federal Government Employees:
    Investigator................   GS-11, Step 5           36.95            0.37            0.63           73.90
    Certifying Officer..........   GS-14, Step 5           62.23                                          124.46
    Attorney....................   GS-14, Step 7           65.89                                          131.78
    District Court Clerk........     GS-13, Step           36.36                                           72.72
    District Court Judge........           N/A 1          100.00                                          200.00
----------------------------------------------------------------------------------------------------------------

Transfer Payments
    The Department provides an assessment of transfer payments 
associated with the NPRM. In accordance with OMB Circular A-4, we 
consider transfer payments as payments from one group to another that 
do not affect total resources available to society.
3. Subject-by-Subject Analysis
    The Department's analysis below covers the expected costs, cost 
savings, and transfer payments of the NPRM.
    The Department emphasizes that many of the provisions in the NPRM 
are existing requirements in regulation, statute, or administrative 
guidance. The NPRM would codify these practices under one set of 
regulations and, therefore, they are not considered ``new'' burdens 
resulting from the NPRM. Accordingly, the regulatory analysis focuses 
on new costs, cost savings, and transfer payments that can be 
attributed exclusively to the NPRM.
Costs
    The following sections describe the costs of the NPRM.
Quantifiable Costs
a. Rule Familiarization
    When the NPRM takes effect, State staff will need to read and 
interpret the regulations. Through this review, State staff will 
familiarize themselves with the structure of the new regulation. Based 
on previous experience on similar rulemaking efforts, the Department 
anticipates that non-legal (program) staff will review the new 
regulations during the first year to identify any new provisions 
relevant to their operations. The Department also anticipates that 
legal staff will review the new

[[Page 60216]]

regulations during the second year, as denials and other legal issues 
need to be resolved. As a result, reviewing the new regulation will 
impose an initial one-time cost in each of the first 2 years.
    To estimate the first year cost of rule familiarization, the 
Department multiplied the number of States (52) by the estimated number 
of non-legal staff that will conduct the activity (2 State employment 
counselors). The Department then multiplied this product by the amount 
of time required to review the rule (2 hours) and by the hourly 
compensation rate ($49.92 per hour). This calculation results in a one-
time undiscounted cost of $10,383 in the first year of the NPRM.
    In the second year, the Department estimates that two-thirds of the 
States will have legal staff review the rule. Therefore, to calculate 
the one-time cost of rule familiarization in the second year, the 
Department multiplied the number of States (52) by two-thirds (\2/3\ or 
0.67) and by the estimated number of legal staff conducting the 
activity (2 State attorneys). The Department then multiplied this 
product by the amount of time required to review the rule (2 hours), 
and by the hourly compensation rate ($90.40 per hour). This calculation 
results in a one-time undiscounted cost of $12,656 in the second year 
of the NPRM.
    The sum of these first- and second-year one-time costs yields a 
total average annual undiscounted cost of $2,304. The total costs over 
the 10-year period are estimated at $23,039 undiscounted, or $22,010 
and $20,758 at 3- and 7-percent discount rates, respectively. The 
annualized cost over the 10-year period is $2,580 and $2,956 at 3- and 
7-percent discount rates, respectively.
b. Development of IEPs for Trade-Affected Workers Seeking Training or 
Job Search Allowances
    Under proposed Sec.  618.350(a), States must make available an IEP 
to all trade-affected workers and establish an IEP for trade-affected 
workers who apply for training under subpart F, or AAWs who apply for a 
job search allowance under subpart D, prior to the worker receiving 
those benefits and services. An IEP is an individualized career service 
under WIOA sec. 134(c)(2)(A)(xii)(II) and is developed jointly by the 
WIOA program participant and career planner when determined appropriate 
by the one-stop center or one-stop partner. The IEP is an ongoing 
strategy to identify employment goals, achievement objectives, and an 
appropriate combination of service for the participant to achieve their 
employment goals. To ensure efficient use of time and resources, the 
Department is proposing that, if an IEP has been developed under WIOA, 
or other partner program, it will be reviewed once the participant 
becomes a trade-affected worker to ensure it has certain components 
required by the TAA Program, as listed in proposed Sec.  618.350(c). If 
the IEP does not contain all required components, the IEP must be 
supplemented by the State in conjunction with the trade-affected worker 
to ensure it is fully compliant with the TAA Program requirements.
    Based on program data, the Department estimates that, each year, 
States will need to develop or supplement IEPs for 23 trade-affected 
workers \29\ that apply for training and job search allowances and do 
not yet have an IEP or whose IEP does not contain all of the required 
components.
---------------------------------------------------------------------------

    \29\ The Department derived this number by calculating the 
average of the annual number of individuals who received training, 
job search, or relocation allowances (i.e., program exiters) in FY 
2013 through FY 2017.
---------------------------------------------------------------------------

    To estimate the costs associated with developing or supplementing 
IEPs, as a result of requiring IEPs for training and job search 
allowance applicants, the Department multiplied the estimated number of 
affected trade-affected workers (23) by the cost per IEP ($24.96).\30\ 
This calculation results in an annual undiscounted cost of $574. The 
total cost over the 10-year period is estimated at $5,740 undiscounted, 
or $4,896 and $4,032 at 3- and 7-percent discount rates, respectively. 
The annualized cost over the 10-year period is $574 at both 3- and 7-
percent discount rates.
---------------------------------------------------------------------------

    \30\ The cost per IEP is estimated by multiplying the hourly 
compensation rate of a State employment counselor ($49.92 per hour) 
by the time spent developing the IEP (0.50 hours), resulting in a 
cost estimate of $24.96.
---------------------------------------------------------------------------

c. Other Quantifiable Costs
    Other quantifiable costs of the NPRM stem from the implementation 
of two IC forms: (1) ETA Form 8561, Study of Domestic Industry; and (2) 
ETA Form 9185, Application for Reconsideration.
    The Department is reactivating ETA Form 8561 A/B/C, Standard 
Questionnaire for Manufacturing Firms, by revising it as ETA Form 8561, 
Study of Domestic Industry. The Department will use ETA Form 8561 to 
collect information from firms within an industry subject to an 
investigation by the International Trade Commission under sec. 202 of 
the Act. The Department then will use the information collected to 
produce a report for the President, as required under sec. 224 of the 
Act. The report will contain information on the number of workers in 
the domestic industry producing the like, or directly competitive, 
article who have been, or are likely to be, certified as eligible for 
adjustment assistance, and the extent to which the adjustment of such 
workers to the import competition may be facilitated using existing 
programs. The Department anticipates conducting one industry study per 
year, and that each firm will submit one response. To estimate the 
costs associated with the implementaion of ETA Form 8561, the 
Department multiplied the number of firms that will participate in each 
industry study (12) by the amount of time required to complete the form 
(1 hour) and by the hourly compensation rate ($121.20 per hour). This 
calculation results in an annual undiscounted cost of $1,454.
    The Department is also implementing a new form: ETA Form 9185, 
Application for Reconsideration. ETA Form 9185 standardizes the 
information required by regulations for an aggrieved party to seek 
administrative reconsideration of a termination of investigation, 
termination or partial termination of a certification, or a negative 
determination of a petition. To estimate the costs associated with this 
form, the Department multiplied the estimated number of applications 
that will be submitted each year (25) by the amount of time required to 
complete the application (1 hour) and by the hourly compensation rate 
($64.80 per hour). This calculation results in an annual undiscounted 
cost of $1,620.
    The sum of these costs yields a total annual undiscounted cost of 
$3,074. The total cost over the 10-year period is estimated at $30,744 
undiscounted, or $26,225 and $21,593 at 3- and 7-percent discount 
rates, respectively. The annualized cost over the 10-year period is 
$3,074 at both 3-and 7-percent discount rates.
Nonquantifiable Costs
a. Criteria for Certification of Worker Groups
    Proposed Sec.  618.225 substantially updates 29 CFR 90.16(b) to 
describe the criteria the Department uses to certify worker groups, 
which has expanded significantly under sec. 222 of the Act. It also 
identifies factors under consideration in determining whether a 
criterion has been met. The revised language provides transparency on 
how investigations are conducted, the importance of information 
collected, and how the information is used. The proposed new provisions 
reflect the requirements of the Act, existing Departmental practices, 
and, in some

[[Page 60217]]

instances, thresholds for select criteria. The proposed provision also 
includes teleworkers and staffed workers because they are frequently 
performing the same work as other trade-affected workers in the subject 
firm or subdivision and are under the subject firm's control.
    As a result of this proposed change, the Department will need to 
spend de minimis time to update forms. The Department has no data to 
determine if the number of applications that will be submitted would 
change and, therefore, cannot quantify any potential cost related to a 
change in the number of applications due to this proposed change.
Cost Savings
    The following sections describe the cost savings of the NPRM.
Quantifiable Cost Savings
a. Reconsideration
    Currently, the process for reconsiderations (29 CFR 90.18) has two 
steps. Applicants request a reconsideration, and the Department either 
accepts or denies the request. Acceptance or denial results in a 
posting to the Federal Register and a notification to the applicant. If 
accepted, the reconsideration process begins, and a decision is 
reached. If denied, the petitioner likely will appeal to the USCIT.
    The Department proposes to eliminate the step requiring the 
certifying officer to make and issue a determination on whether or not 
a reconsideration will be initiated (29 CFR 90.18(c)). The Department 
concluded that eliminating this step would decrease time and burden, 
and simplify the process.
    Under the new process in proposed Sec.  618.245, the Department 
will initiate an investigation on all valid reconsideration 
applications, conduct the required review, and post the results via the 
Federal Register and the Department's website. Although this new 
process will not eliminate reconsiderations, the Department estimates 
that it will reduce the processing time involved for all 
reconsiderations by approximately 33 percent, as there will be no 
initial review of the request or related notification. Thus, under the 
new process, the cost per reconsideration will be 67 percent of the 
cost under the current process. The Department estimates that the cost 
per reconsideration under the current process is $1,857.\31\ Under the 
new process, the Department estimates that the cost per reconsideration 
will be $1,244 (0.67 x $1,857 per reconsideration). Under the current 
and revised processes, approximately 25 reconsiderations are filed per 
year, and the Department concludes that will not change. To estimate 
the cost savings associated with this proposed change, the Department 
subtracted the cost per reconsideration under the new process ($1,244) 
from the cost per reconsideration under the current process ($1,857) 
and then multiplied by the number of reconsiderations filed per year 
(25). This yields an average annual undiscounted cost savings of 
$15,325. The total cost savings from the new reconsideration process 
over the 10-year period is estimated at $153,250 undiscounted, or 
$130,725 and $107,636 at 3- and 7-percent discount rates, respectively. 
The annualized cost savings over the 10-year period is $15,325 at both 
3- percent and 7-percent discount rates.
---------------------------------------------------------------------------

    \31\ The Department estimates the cost to process a 
reconsideration based on the cost to process a full petition due to 
data availability. The Department estimates that the cost to process 
a reconsideration under the current process is 86 percent of the 
cost to process a full petition. This estimate is based on an 
average of 60 days to process a reconsideration compared to a median 
of 70 days to process a full petition (60/70 = 86 percent).
    The Department estimates an investigator spends 100 percent of 
their time, or 2,080 hours, processing petitions. The investigator 
processes 100 petitions per year. Therefore, the cost per petition 
for an investigator to process is estimated by multiplying the 
hourly compensation rate ($73.90 per hour) by the hours they work 
per year (2,080 hours) and dividing by the number of petitions 
processed per year (100 petitions per year). This results in a cost 
per petition for an investigator of $1,537. The Department estimates 
a certifying officer manager spends 75 percent of their time (1,560 
hours) and a nonmanager certifying officer spends 100 percent of 
their time (2,080 hours) processing petitions. Certifying officers 
process an estimated 376 full petitions per year. Based on this 
data, a manager certifying officer spends 4 hours per petition 
(1,560/376) and a nonmanager certifying officer spends 6 hours per 
petition (2,080/376). The Department uses an average of nonmanager 
and manager hours per petition to estimate the average certifying 
officer's time to process a petition (5 hours). To estimate the cost 
per petition for a certifying officer, the Department multiplied the 
hourly compensation rate ($124.46 per hour) by the number of hours 
spent processing a full petition (5 hours). This results in a cost 
per petition for a certifying officer of $622.
    The Department, therefore, estimates the full cost of processing 
a full petition as the sum of the cost for an investigator to 
process a petition and the cost for a certifying officer to process 
a petition. Summing these costs results in an estimated cost of 
$2,159 to process a petition. The cost per reconsideration is, 
therefore, estimated as $1,857 based on the cost per reconsideration 
being 86 percent of the cost of processing a full petition.
---------------------------------------------------------------------------

b. Judicial Appeals
    Under existing regulations, all determinations rendered by the 
Department are final determinations subject to judicial review. As a 
result, nearly any determination rendered by the Department can be 
appealed to the USCIT (29 CFR 90.19).
    In the NPRM, the Department would define only determinations on 
reconsideration issued under Sec. Sec.  618.240(g) and 618.245 as final 
determinations and, therefore, only these determinations are subject to 
judicial review through the USCIT. This will reduce the time and effort 
spent by Department employees, petitioners, and the USCIT on appeals 
that have not yet been subject to the reconsideration process. These 
appeals require legal counsel for the Department and for the appellant, 
and associated fees are involved with the proceedings. By revising the 
definition of ``final determinations'' and through the revisions to the 
reconsideration process, the Department concludes that the number of 
judicial appeals will be reduced to one per year.
    The Department estimates the cost savings from reducing the number 
of judicial appeals by subtracting the estimated number of judicial 
appeals under the NPRM (one per year) from the current number of 
judicial appeals per year (five per year) and multiplying by the cost 
per appeal ($21,443).\32\ This

[[Page 60218]]

yields average annual undiscounted cost savings of $64,329. The total 
cost savings from the reduction in judicial appeals over the 10-year 
period is estimated at $643,290 undiscounted, or $548,739 and $451,820 
at 3- and 7-percent discount rates, respectively. The annualized cost 
savings over the 10-year period is $64,329 at both 3- and 7-percent 
discount rates.
---------------------------------------------------------------------------

    \32\ The cost per appeal is estimated from the cost to the 
appellant, the Department, and the USCIT to process an appeal. Based 
on USCIT court fees (https://www.cit.uscourts.gov/sites/cit/files/Schedule%20of%20Fees.pdf), the appellant must pay fees for attorney 
admission ($81), a filing fee ($400), and a charge for each type of 
fee ($304) for a total of $785 in fees to appeal. The appellant also 
must have a private sector attorney prepare for the appeal and 
appear in court. The Department estimates this cost by multiplying 
the hourly compensation rate ($148.98 per hour) by the sum of time 
the private sector attorney must spend to prepare (40 hours) and the 
time spent in court (12 hours). These estimates include time spent 
responding to filings and other actions outside of court 
proceedings. The result is a cost per appeal for the appellant of 
$8,532.
    The Department has a cost per appeal for a DOL and DOJ attorney 
to prepare and attend court and a remand cost. The Department 
estimates the remand cost by multiplying the current cost per 
reconsideration ($1,857) by 1.5, resulting in a remand cost of 
$2,785. To estimate the cost of a DOL and DOJ attorney, the 
Department multiplied the hourly compensation rate ($131.78 per 
hour) by the sum of time the DOL and DOJ attorney must spend to 
prepare (40 hours) and the time spent in court (12 hours). The 
result is a cost per appeal for the Department of $9,638.
    The cost to the USCIT is the court time for a district court 
judge and district court clerk. The Department estimates the cost of 
court time for a judge by multiplying the hourly compensation rate 
($200.00 per hour) by the time spent in court and the time spent 
reviewing the filings related to the appeal (12 hours), resulting in 
a cost estimate of $2,400. The Department estimates the cost of 
court time for a clerk by multiplying the hourly compensation rate 
($72.72 per hour) by the time spent in court (12 hours), resulting 
in a cost estimate of $873. The cost to the USCIT for an appeal is 
therefore estimated as $3,273.
    The cost per appeal is therefore estimated as the sum of the 
cost to the appellant ($8,532), the cost to the Department ($9,638), 
and the cost to the USCIT ($3,273). This cost is $21,443.
---------------------------------------------------------------------------

    Relative to the baseline (i.e., current practice under the TAA 
Program), the two issues described above are expected to result in 
average annual undiscounted cost savings of $79,654. The total cost 
savings over the 10-year period is estimated at $796,540 undiscounted, 
or $679,465 and $559,456 at 3- and 7-percent discount rates, 
respectively. The annualized cost savings over the 10-year period is 
estimated at $79,654 at both 3- and 7-percent discount rates.
Transfer Payments
    The following sections describe the transfer payments of the NPRM.
Quantifiable Transfer Payments
a. Merit Versus Non-Merit Staff
    Currently, States must engage only State merit staff to perform 
TAA-funded functions undertaken to carry out the State's 
responsibilities under the Act (20 CFR 618.890). Non-merit staff that 
provide employment and case management services to trade-affected 
workers cannot charge their time to TAA Program funds.
    Proposed Sec.  618.890 on staffing flexibility amends the current 
regulation to clarify that only certain activities under the TAA 
Program need to be performed by personnel covered by a system meeting 
the criteria of the Federal merit personnel system regardless of 
whether they are funded by the TAA Program. This results in a transfer 
payment because non-merit staff will be performing the same work at a 
lower wage than the currently used merit staff. As a result, providing 
employment and case management services by non-merit staff will result 
in transfer payments from employees to the States because there are no 
labor-hours freed and only a decline in wages.
    The Department estimates that half the States, and therefore half 
the participants, will take advantage of the flexibility provided by 
the NPRM.
    The Department estimates that the cost of providing employment and 
case management services by State merit staff is $8,885,710 
annually.\33\ The Department estimates the cost of providing employment 
and case management services by non-merit staff is $7,757,196 annually, 
due to the lower hourly wage for the typical non-merit staff 
employee.\34\ The Department, therefore, estimates transfer payments 
associated with removing the restriction to allow States to charge time 
for non-merit staff to TAA Program funds by subtracting the cost of 
non-merit staff ($7,757,196) from the cost of State merit staff 
($8,885,710) and multiplying by 0.5 to account for the Department's 
estimate that half the States will use the flexibility provided by the 
NPRM. This yields average annual undiscounted transfer payments of 
$564,257. The total transfer payments from removing the restriction to 
allow States to charge time for non-merit staff to TAA Program funds 
over the 10-year period is estimated at $5,642,570 undiscounted, or 
$4,813,227 and $3,963,105 at 3- and 7-percent discount rates, 
respectively. The annualized cost savings over the 10-year period is 
$564,257 at both 3- and 7-percent discount rates.
---------------------------------------------------------------------------

    \33\ To estimate the cost of State merit staff providing 
employment and case management services, the Department first 
estimated the amount of time spent providing the services. Of the 
16,375 total exiters in 2017, 9,803 received training and 6,572 
received only case management services. The average duration of 
training is 413 days, and the average duration of case management 
services is 195 days. Staff have a minimum contact requirement of 30 
days, and contact is estimated to take 1 hour. Therefore, the 
Department estimated the time spent by staff providing training 
services to an exiter by dividing the average duration of training 
(413 days) by the minimum contact requirement (30 days) and 
multiplying by the time of contact (1 hour), resulting in an 
estimate of 13.8 hours. The Department, therefore, estimates the 
hours required for training services to all exiters that received 
training by multiplying the number of exiters receiving training 
(9,803) by the time spent by staff providing them services (13.8 
hours), resulting in an estimate of 135,281 hours. The Department 
estimated the time spent by staff providing case management services 
only to an exiter by dividing the average duration of case 
management (195 days) by the minimum contact requirement (30 days) 
and multiplying by the time of contact (1 hour), resulting in an 
estimate of 6.5 hours per exiter receiving case management services. 
The Department, therefore, estimates the hours required for case 
management services to all exiters that received case management 
services only by multiplying the number of exiters receiving only 
case management services (6,572) by the time spent by staff 
providing them services (6.5 hours), resulting in an estimate of 
42,718 hours.
    To estimate the cost of State merit staff providing employment 
and case management services, the Department summed the time 
required to provide training services (135,281 hours) and the time 
required to provide case management services only (42,718 hours), 
which results in a total of 177,999 hours. The Department then 
multiplied the total hours by the hourly compensation rate of a 
State employment counselor ($49.92 per hour) resulting in a cost 
estimate of $8,885,710.
    \34\ To estimate the cost of non-merit staff in providing 
employment and case management services, the Department summed the 
time required to provide training services (134,955 hours) and the 
time required to provide case management services only (42,718 
hours), which results in a total of 177,999 hours. The Department 
then multiplied the total hours by the hourly compensation rate of a 
private sector employment counselor ($43.58 per hour), resulting in 
a cost estimate of $7,757,196.
---------------------------------------------------------------------------

Nonquantifiable Transfer Payments
a. Change in the Definition of ``Group''
    Under proposed Sec.  618.110 (definition of ``group of workers''), 
the Department updates the definition of ``group'' to mean at least two 
workers employed or formerly employed by the same firm, or an 
appropriate subdivision. The proposed definition also includes 
teleworkers and staffed workers, because they are frequently performing 
the same work as other trade-affected workers in the subject firm or 
subdivision and are under the subject firm's control. Separated workers 
are included in the definition because they, too, may be trade-affected 
workers. Because of a lack of data on the additional number of 
beneficiaries, the Department is unable to quantify the transfer. The 
Department expects the change to be small.
b. Suitable Work Versus Suitable Employment
    Proposed Sec.  618.400 explains the scope of the subpart, and is a 
provision not contained in current regulations. Proposed Sec.  618.400 
contains one substantive departure from current regulations in that it 
identifies the goal of providing job search and relocation allowances 
to help AAWs secure and, if necessary, relocate to ``suitable 
employment'' as defined in sec. 236 of the Act, instead of merely 
assisting AAWs in finding ``suitable work'' as current regulations have 
provided. Proposed Sec.  618.405 contains general provisions and 
revises and consolidates current 20 CFR 617.30 and 617.40. Proposed 
Sec.  618.405(a) retains the content in 20 CFR 617.30, except that it 
replaces the reference to ``securing a job'' with ``suitable 
employment'' to align with the change to the goal of the subpart.
    This proposed change would modify the eligibility requirement, for 
both job search and relocation allowances, that there be no ``suitable 
work'' available in the local area to the requirement that there be no 
``suitable employment'' available in the local area. ``Suitable 
employment'' is generally work at higher skill levels and wage rates 
than is ``suitable work'' (i.e., a job is less likely to meet the 
higher ``suitable employment'' standard and such jobs will, therefore, 
be less likely to be available). Thus, this proposed change

[[Page 60219]]

would simplify the operation of the TAA Program by using the same 
standard--suitable employment--as the factor for approval of training, 
job search allowances, and relocation allowances. Program performance 
data shows that AAWs who relocate have a wage replacement rate 
exceeding 100 percent, which means that this proposed change should 
have little or no impact on the number of AAWs and is not quantifiable.
c. Length of Training and Apprenticeships
    Proposed Sec.  618.635(c) is new and establishes apprenticeship 
provisions that specifically provide that both registered 
apprenticeships under the National Apprenticeship Act, as well as other 
training programs that include a paid work-based learning component and 
required educational or instructional component that results in the 
issuance of a recognized postsecondary credential, are approvable TAA 
Program training activities. These provisions are based on a 
combination of secs. 236(a)(5)(A)(iii) and 236(a)(5)(G) of the Act. The 
requirement that an apprenticeship lead to an industry-recognized 
credential differentiates an apprenticeship from regular OJT.
    The NPRM would revise TAA length of training requirements 
applicable to apprenticeships. In addition, under the NPRM, TAA Program 
funds could be used to pay for the educational and instructional 
component of the apprenticeship until completion of the apprenticeship, 
which, in some cases, could be up to 5 years. In particular, the TAA 
Program would provide for reimbursement to the employer for the paid-
work component of the apprenticeship for up to 130 weeks. Reimbursement 
would be up to 50 percent of the employer's training costs based on the 
wage rate of the trade-affected worker.
    The increased flexibility in the use of TAA Program funds may 
result in an increase in apprenticeships; however, the Department is 
unable to quantify this and seeks public comment. The Department 
expects that funding adjustments would need to be made for trade-
affected workers requiring additional funding due to participation in a 
registered apprenticeship. The proposed provision would result in 
transfers of funds between States and the Federal Government. The total 
amount of expenditures that may be accrued at the national level, 
however, will not change and is therefore not quantified.
Other Key Changes With No Economic Impact
    TGAAA and TAAEA introduced statutory program changes, and the TAARA 
2015 amendments restored these improvements. The NPRM proposes to 
codify the provisions associated with these improvements, currently 
implemented via administrative guidance, into the TAA Program 
regulations. The Department analyzed these proposed provisions to 
determine if they have any additional cost or result in transfer 
payments when compared to the baseline. Based on this analysis, the 
Department determined that no costs or transfer payments are associated 
with the program improvement provisions.

a. A set of provisions requiring services to all trade-affected 
workers, including AAIWs who have not yet separated from adversely 
affected employment but are threatened with separation (subpart A, 
Sec.  618.110; subpart C, Sec.  618.310; and subpart F, Sec.  618.655)

    Under this set of provisions, AAIWs must be provided TAA Program 
services, as appropriate, before the worker's separation from 
employment, ideally allowing these workers to transition to new 
employment without experiencing a gap in employment or by reducing the 
amount of time needed to complete the training program after the 
separation, or both, and reducing the worker's overall period of 
unemployment. Under the current regulations, the Department could not 
begin providing services to serve AAIWs until they are laid off. No 
costs or transfer payments are associated with these provisions, as 
they are codifying current administrative guidance.

b. Provisions that expand trade-affected worker eligibility to include 
those workers in firms that supply service-sector workers, expanding 
coverage to the largest growing sector of the economy (subpart B, Sec.  
618.225(a) and (b))

    No costs or transfer payments are associated with these provisions, 
as they are codifying current administrative guidance.

c. Provision that makes workers in firms identified in International 
Trade Commission ``injury'' determinations ``automatically'' certified 
(subpart B, Sec.  618.225(c))

    No costs or transfer payments are associated with this provision, 
as it is codifying current administrative guidance.

d. Provisions providing funding for individualized case management 
services (subpart C, Sec. Sec.  618.310, 618.330, 618.335, 618.345, 
618.350, and 618.360)

    Employment counseling and reemployment services have been required 
under the TAA Program since implementation of chapter 2 of title II of 
the Trade Act of 1974. The current requirements are found at 20 CFR 
617.20 and 617.21. This set of provisions includes the development of a 
reemployment plan and assessments. The language in the existing 
regulation, however, uses outdated terminology. The NPRM would update 
this language. Case managers are to ensure trade-affected workers 
receive job placement services, develop individual assessment-based 
employment and training programs, and provide career counseling. Under 
the current regulations, funds for individualized case management 
services are not authorized, requiring these services to be made 
available through partner programs such as Wagner-Peyser or WIOA. No 
costs or transfer payments are associated with these provisions, as 
they are codifying current administrative guidance.

e. Provisions that eliminate the requirement for AAWs to apply for and 
wait to attain a separate group certification to be eligible for the 
RTAA program (subpart E, Sec. Sec.  618.500 and 618.505)

    AAWs receiving RTAA can work full time or part time and receive 
training, which would allow this population to regain skills to stay 
competitive. RTAA replaces ATAA, a program piloted in the TAA Program 
under TAARA 2002. Neither RTAA nor ATAA are included in current 
regulations. No costs or transfer payments are associated with these 
provisions, as they are codifying current administrative guidance.

f. Provisions that introduce Completion TRA and require trade-affected 
worker training benchmarks to monitor training progress regularly and 
allow for amendments of a training program to help ensure successful 
training outcomes (subpart F, Sec.  618.660; and subpart G, Sec.  
618.755)

    No costs or transfer payments are associated with these provisions, 
as they are codifying current administrative guidance.

g. A provision that eliminates training waivers based on recall, 
marketable skills, and retirement (subpart G, Sec.  618.725(b))

    No costs or transfer payments are associated with this provision, 
as it is

[[Page 60220]]

codifying current administrative guidance.

h. A set of provisions that expands the deadline for enrolling in 
training to qualify for TRA, providing trade-affected workers more time 
to consider their training options (subpart G, Sec.  618.720(c)(1), 
(2), and (4))

    No costs or transfer payments are associated with these provisions, 
as they are codifying current administrative guidance.

i. A provision that allows States to apply Federal ``good cause'' 
waiver provisions to TAA Program deadlines allowing for trade-affected 
workers to retain benefits due to extenuating circumstances (subpart G, 
Sec.  618.720(c)(5))

    This provision allows States to apply Federal ``good cause'' waiver 
provisions to TAA Program deadlines allowing for trade-affected workers 
to retain benefits due to extenuating circumstances. No costs or 
transfer payments are associated with this provision, as it is 
codifying current administrative guidance.

j. Subpart G, Sec.  618.775

    This provision enables AAWs to elect TRA over UI based on a second 
UI claim in circumstances that result in lower weekly benefit amounts 
from part-time or short-term work. No costs or transfer payments are 
associated with this provision, as it is codifying current 
administrative guidance.
Qualitative Benefits Discussion
    The TAA Program includes the RTAA benefit, which may be available 
to AAWs 50 years of age or older. Reauthorization of the program 
restored the major expansions in TAA worker group eligibility to 
service sector workers and to workers affected by trade from any 
country, including countries that do not have Free Trade Agreements 
with the United States including China and India.
    A 2012 evaluation of the TAA Program showed that TAA Program 
participants who undertook training recorded better employment outcomes 
than those who received only income support and that TAA Program 
participants almost entirely closed the gap between their wages in the 
previous employment and their wages in the new employment within 4 
years, and, by one measure, had pulled slightly ahead.\35\ The 
evaluation also found that TAA Program participants were engaged in 
some form of productive activity at about the same rate as the 
comparison group.
---------------------------------------------------------------------------

    \35\ Social Policy Associates and Mathematica Policy Research. 
(2012). ``The Evaluation of the Trade Adjustment Assistance Program: 
A Synthesis of Major Findings.'' Retrieved from: https://wdr.doleta.gov/research/FullText_Documents/ETAOP_2013_08.pdf.
---------------------------------------------------------------------------

a. Streamlining and Consolidation of TAA Program Regulations
    As stated above, the regulations governing the TAA Program have not 
been updated since 1994. Since that time, multiple reauthorizations and 
amendments have occurred. All TAA Program reauthorizations and 
amendments were implemented through administrative guidance. As a 
result, the States must use a combination of regulations and a 
patchwork of administrative guidance to operate the program.
    The NPRM would provide a legally binding set of rules to guide the 
worker-group certification process at the Federal level and the 
individual benefit and training authorization process at the State 
level, and provide Federal and State courts with the Department's 
authoritative interpretation of TAARA 2015. The NPRM also would update 
the TAA Program and consolidate all applicable program regulations into 
a single section of the CFR.
b. Support to American Workers That Have Lost Their Jobs as a Result of 
Foreign Trade
    The objective of the TAA Program is to provide trade-affected 
workers with opportunities to obtain the skills, credentials, 
resources, and support necessary to (re)build skills for future jobs. 
For over 40 years, the TAA Program has assisted U.S. workers who have 
lost or may lose their jobs as a result of foreign trade. Benefits and 
services include: employment and case management services (e.g., career 
counseling); training; job search and relocation allowances; TRA; RTAA 
for AAWs aged 50 and older; and, if available, the HCTC.
    Since 1975, the TAA Program has served over two million U.S. trade-
affected workers. In FY 2017, an estimated 94,017 trade-affected 
workers became eligible for TAA Program benefits and services. Nearly 
75 percent of trade-affected workers obtained employment within 6 
months of completing the TAA Program, and over 90 percent of those who 
found work retained their jobs 6 months later.
    Trade-affected workers come from a variety of backgrounds and 
industries, and therefore, many enter the program with a wide array of 
skills and experience. Most trade-affected workers who enter the 
program, however, face similar challenges in obtaining reemployment. 
Trade-affected workers have no postsecondary degree typically, an 
average age of 49, and an average of 12 years of experience in a 
specific job that may no longer exist.\36\ The TAA Program is designed 
to serve the needs of this unique population best, which it continues 
to do.
---------------------------------------------------------------------------

    \36\ U.S. Department of Labor, Employment and Training 
Administration. (2018). ``Trade Adjustment Assistance for Workers 
Program: Fiscal Year 2017.'' Retrieved from: https://www.doleta.gov/tradeact/docs/AnnualReport17.pdf.
---------------------------------------------------------------------------

    An ever-changing global marketplace drives the 21st-century 
economy. For America to outcompete other countries, its workers need to 
have the skills and support to take advantage of new opportunities the 
21st-century economy presents. The TAA Program sets out to do that by 
providing the best opportunities for American workers to reenter the 
workforce.
4. Summary of the Analysis
    Exhibit 4 summarizes the estimated total costs, cost savings, and 
transfer payments of the NPRM over the 10-year analysis period. The 
annual costs, cost savings, and transfer payments do not reach $100 
million in any given year. Thus, the NPRM is not economically 
significant.
    The Department estimates the annualized costs of the NPRM at 
$6,604, the annualized cost savings at $79,654, and the annualized 
transfer payments at $564,257, at the 7-percent discount rate. When the 
Department uses a perpetual time horizon to allow for cost comparisons 
under E.O. 13771, the annualized costs of the rule are $5,101, the 
annualized cost savings are $79,654, and the annualized transfer 
payments are $564,257, all at 7-percent discounting.
    The Department estimates the net cost savings of the NPRM at 
$513,073 at a discount rate of 7 percent.

[[Page 60221]]



     Exhibit 4--Estimated Monetized Costs, Cost Savings, Net Cost Savings, and Transfer Payments of the NPRM
                                                 [2018 dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                     Net cost        Transfer
                                                       Costs       Cost savings     savings \a\      payments
----------------------------------------------------------------------------------------------------------------
2019............................................         $14,032         $79,654         $65,622        $564,257
2020............................................          16,304          79,654          63,350         564,257
2021............................................           3,648          79,654          76,006         564,257
2022............................................           3,648          79,654          76,006         564,257
2023............................................           3,648          79,654          76,006         564,257
2024............................................           3,648          79,654          76,006         564,257
2025............................................           3,648          79,654          76,006         564,257
2026............................................           3,648          79,654          76,006         564,257
2027............................................           3,648          79,654          76,006         564,257
2028............................................           3,648          79,654          76,006         564,257
                                                 ---------------------------------------------------------------
Undiscounted 10-Year Total......................          59,523         796,540         737,017       5,642,570
                                                 ---------------------------------------------------------------
10-Year Total with 3% Discounting...............          53,132         679,465         626,333       4,813,227
                                                 ---------------------------------------------------------------
10-Year Total with 7% Discounting...............          46,383         559,456         513,073       3,963,105
                                                 ---------------------------------------------------------------
10-Year Average.................................           5,952          79,654          73,702         564,257
                                                 ---------------------------------------------------------------
Annualized with 3% Discounting..................           6,229          79,654          73,425         564,257
                                                 ---------------------------------------------------------------
Annualized with 7% Discounting..................           6,604          79,654          73,050         564,257
                                                 ---------------------------------------------------------------
Perpetuated Net Cost Savings \a\ with 7%          ..............  ..............          71,434  ..............
 Discounting (2016 dollars).....................
----------------------------------------------------------------------------------------------------------------
\a\ Net Cost Savings = [Total Cost Savings] - [Total Costs].

5. Regulatory Alternatives
    OMB Circular A-4, which outlines best practices in regulatory 
analysis, directs agencies to analyze alternatives if such alternatives 
best satisfy the philosophy and principles of E.O. 12866. The 
Department has considered three alternatives as part of determining 
whether to issue this NPRM. These alternatives include: (1) To take no 
action, that is, make no regulatory changes; (2) to reduce the number 
and types of provisions in the regulations; and (3) to propose more 
stringent, less flexible regulations and provide clarification in 
administrative guidance. Each alternative is discussed in more detail 
below.
    The Department considered the ``no action'' alternative, thereby, 
leaving the regulations in three separate parts in the CFR (i.e., 20 
CFR parts 617 and 618, and 29 CFR part 90) and continuing to use 
administrative guidance to operate the TAA Program. This alternative 
has the disadvantage of forcing States to use a combination of outdated 
regulations and a patchwork of administrative guidance to operate the 
program. The TAA Program requirements have changed substantially since 
1994. As a result, the implementation of new regulations is necessary 
to achieve program compliance, integrate the TAA Program with the 
workforce development and education systems, and reduce the 
Department's and States' legal burden concerning petition issues raised 
in court cases and appeals.
    The Department also considered scaling back the number and types of 
provisions in the regulations, except for those areas where there are 
statutory requirements for the Department to promulgate regulations. 
Examples of provisions that could be excluded are: (1) The primary 
indicators of performance; (2) the expansion of State responsibility 
for providing employment and case management services; (3) the 
integration of the TAA Program into the one-stop delivery system under 
WIOA and alignment with the WIOA Final Rule; (4) the increase in the 
maximum limit for job search and relocation allowances; (5) the 
addition of the RTAA, which was established under the 2009 Program 
amendments; (6) the addition of Completion TRA; and (7) the study and 
notifications regarding certain affirmative determinations. This 
regulatory alternative has the disadvantage of forcing the regulated 
community to follow statutory language for implementation. Considering 
many of these provisions are new, the statutory language would not 
provide sufficient detailed guidance to implement the provisions 
effectively, thereby, increasing the risk of noncompliance.
    Finally, the Department considered proposing more stringent, less 
flexible regulations and relying on administrative guidance to provide 
clarification. Examples of provisions where the Department could be 
more prescriptive are: (1) Worker group eligibility requirements (2) 
employment and case management services; (3) training (e.g., approval, 
cost, and type); (4) job search and relocation allowances; (5) 
Completion TRA and training benchmarks; and (6) RTAA. This alternative 
has the disadvantage of not providing enough flexibility to mold the 
TAA Program to the evolving needs of displaced workers and the changing 
economic landscape. Not only could this negatively affect participants, 
it could cost States and the Department more through decreases in 
efficiency from having to adhere to more restrictive and complex 
regulations. This would ultimately lead to participants being 
underserved due to the time and budgetary burdens that more stringent 
regulations would impose. Also, administrative guidance is not legally 
binding, and, therefore, not as an effective tool as flexible 
regulations.
    The Department considered the three options above in accordance 
with the provisions of E.O. 12866 and chose to publish the NPRM to 
increase flexibility to States and trade-affected workers, improve 
participant outcomes, clarify overly technical or confusing language, 
update references and procedures, and

[[Page 60222]]

codify elements from administrative guidance.
    The Department invites comments on these or other possible 
alternatives with the goal of ensuring a thorough consideration and 
discussion at the final rule stage.

C. Regulatory Flexibility Act, Small Business Regulatory Enforcement 
Fairness Act of 1996, and Executive Order 13272 (Proper Consideration 
of Small Entities in Agency Rulemaking)

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601 et seq., 
as amended by the Small Business Regulatory Enforcement Fairness Act of 
1996, Public Law 104-121 (Mar. 29, 1996), requires Federal agencies 
engaged in rulemaking to consider the impact of their proposals on 
small entities, consider alternatives to minimize that impact, and 
solicit public comment on their analyses. The RFA requires the 
assessment of the impact of a regulation on a wide range of small 
entities, including small businesses, not-for-profit organizations, and 
small governmental jurisdictions. Agencies must perform a review to 
determine whether a proposed or final rule would have a significant 
economic impact on a substantial number of small entities. 5 U.S.C. 603 
and 604.
    Because the entities impacted by the NPRM are the States, which do 
not qualify as small entities, the Department has determined that the 
NPRM would impact no small entities. Based on this determination, the 
Department certifies that the NPRM would not have a significant 
economic impact on a substantial number of small entities.

D. Paperwork Reduction Act

    The purposes of the PRA, 44 U.S.C. 3501 et seq., include minimizing 
the paperwork burden on affected entities. The PRA requires certain 
actions before an agency can adopt or revise a collection of 
information, including publishing for public comment a summary of the 
collection of information and a brief description of the need for and 
proposed use of the information.
    As part of its continuing effort to reduce paperwork and respondent 
burden, the Department conducts a preclearance consultation program to 
provide the general public and Federal agencies with an opportunity to 
comment on proposed and continuing collections of information in 
accordance with the PRA. See 44 U.S.C. 3506(c)(2)(A). This activity 
helps to ensure that the public understands the Department's collection 
instructions, respondents can provide the requested data in the desired 
format, reporting burden (time and financial resources) is minimized, 
collection instruments are clearly understood, and the Department can 
properly assess the impact of collection requirements on respondents. 
Furthermore, the PRA requires all Federal agencies to analyze proposed 
regulations for potential time burdens on the regulated community 
created by provisions in the proposed regulations that require any 
party to obtain, maintain, retain, report, or disclose information. The 
IC requirements must also be submitted to OMB for approval.
    A Federal agency may not conduct or sponsor a collection of 
information unless it is approved by OMB under the PRA and displays a 
currently valid OMB control number. The public is also not required to 
respond to a collection of information unless it displays a currently 
valid OMB control number. In addition, notwithstanding any other 
provisions of law, no person will be subject to penalty for failing to 
comply with a collection of information if the collection of 
information does not display a currently valid OMB control number (44 
U.S.C. 3512).
    The following information collections are part of the States' 
administration of the TAA Program. They have been previously reviewed 
and approved. They have not been impacted by this rule:
    OMB Control Number 1205-0275--Trade Adjustment Assistance Program 
Reserve Funding Request
    OMB Control Number 1205-0222--Unemployment Insurance Materials 
Transmittal
    OMB Control Number 1205-0521--DOL-Only Performance Accountability, 
Information, and Reporting System
    OMB Control Number 1205-0461--Employment and Training 
Administration Financial Report Form ETA-9130
    The Department has determined that there is a new information 
collection contained in this rule. This collection is related to an 
aggrieved party seeking administrative reconsideration of a negative 
determination under sec. 222 of the Act, and the domestic industry 
study required by sec. 202 of the Act.
Petition Requirements; Investigations; Domestic Industry Study; 
Application for Reconsideration
    Agency: DOL-ETA.
    Title of Collection: Petition Requirements; Investigations; 
Domestic Industry Study; Application for Reconsideration.
    Type of Review: New.
    OMB Control Number: 1205-0NEW.
    Description: The information contained in this collection is 
submitted by various parties, including individuals, company officials, 
unions, and State agencies. This information is collected in paper, by 
fax, via online forms, and by email. The information provided by these 
groups is used as part of an investigation by the Department to 
determine whether or not a group of workers has been adversely affected 
by foreign trade under the conditions and criteria established in sec. 
222 of the Act. The Department is taking this opportunity to make 
changes to the forms in OMB Control Number 1205-0342 used in the 
petition and investigation process. These changes are designed to 
reduce burden, provide better instructions, and simplify the forms for 
use by the public. Form ETA-9185 is a new form used by aggrieved 
parties to seek administrative reconsideration of a negative 
determination. As part of this collection, the Department is 
reactivating Form ETA-8561 A/B/C, Standard, by renaming as Form ETA-
8561, Study of Domestic Industry, and revising the content of the form. 
This was previously approved under OMB Control Number 1205-0194, and 
was in use until 1990 when it was discontinued. Form ETA-8561 is 
submitted by a firm within an industry subject to an investigation by 
the ITC under sec. 202 of the Act. This collection will eventually be 
included in OMB Control Number 1205-0342, however, the Department is 
not submitting this ICR under that control number because the 
reginfo.gov database, which is OMB's system for processing requests, 
allows only one ICR per control number to be pending at OMB during any 
given time, and the Department expects the unrelated ICR under control 
number 1205-0342 will be pending at OMB at the same time as this rule-
related ICR; thus the existing control number will be encumbered. 
Requesting approval for a new information collection is a workaround 
used for administrative convenience. Once all of the outstanding 
actions are complete, the Department intends to submit a non-material 
change request to merge the collections so that the new requirements 
will be added to OMB Control Number 1205-0342.
    Affected Public: State, Local, and Tribal Governments.
    Obligation to Respond: Required to Obtain or Retain Benefits.
    Estimated Total Annual Respondents: 5,317.
    Estimated Total Annual Responses: 5,497.
    Estimated Total Annual Burden Hours: 12,977.

[[Page 60223]]

    Estimated Total Annual Other Burden Costs: $1,545,779.76.
    Regulations sections: 20 CFR 618.205, 618.210, 618.215, 618.220, 
618.225, 618.230, 618.235, 618.240, 618.245, 618.250, 618.260.
    Interested parties may obtain a copy free of charge of one or more 
of the IC requests submitted to OMB on the reginfo.gov website at 
http://www.reginfo.gov/public/do/PRAMain. From this web page select 
Department of Labor from the ``Currently under Review'' dropdown menu 
and look up the collection. You may also request a free copy of the IC 
by contacting the person named in the ADDRESSES section of this NPRM.
    In addition to the 30 days provided for public comment on this 
proposal, the Department is providing an additional 30 days--for a 
total of 60 days from the date this notice is published in the Federal 
Register--for public comment on the information collection requirements 
contained in the proposed rule as required by 5 CFR 1320.11(c).
    Members of the public who wish to comment on the revisions to the 
paperwork requirements should direct comments to the Office of 
Information and Regulatory Affairs, Attn: OMB Desk Officer for DOL-ETA, 
Office of Management and Budget, 725 17th Street NW, Washington, DC 
20503, Fax: (202) 395-6881 (this is not a toll-free number), email: 
[email protected].
    The Department encourages commenters also to submit their comments 
on these paperwork requirements to the rulemaking docket, Docket Number 
ETA-2019-0009, along with their comments on other parts of the proposed 
rule. After the 30 day comment period for Docket Number ETA-2019-0009 
expires, commenters may submit IC-related comments on Docket Number 
ETA-2019-0010 for an additional 30 days.
    The Department and OMB are particularly interested in comments 
that:
     Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     Evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
    Minimize the burden of the collection of information on those who 
are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of IT (e.g., permitting electronic submission of 
responses).

E. Executive Order 13132 (Federalism)

    E.O. 13132 requires Federal agencies to ensure that the principles 
of federalism established by the Framers of our Constitution guide the 
executive departments and agencies in the formulation and 
implementation of policies and to further the policies of the Unfunded 
Mandates Reform Act. Further, agencies must strictly adhere to 
constitutional principles. Agencies must closely examine the 
constitutional and statutory authority supporting any action that would 
limit the policy-making discretion of the States and they must 
carefully assess the necessity for any such action. To the extent 
practicable, State and local officials must be consulted before any 
such action is implemented. Section 3(b) of the E.O. further provides 
that Federal agencies must implement regulations that have a 
substantial direct effect only if statutory authority permits the 
regulation and it is of national significance.
    The Department has reviewed this NPRM revising the operation of a 
Federal benefit program in accordance with Executive Order 13132 and 
found that this rulemaking has no federalism implications. The TAA 
Program is a nationwide program funded with Federal funds in which the 
States voluntarily participate. Thus, the NPRM would not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government, within the 
meaning of the Executive Order.

F. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (UMRA) (Pub. L. 104-4, 
codified at 2 U.S.C. 1501 et seq.) requires agencies to assess the 
effects of Federal regulatory actions on State, local, and tribal 
governments and on private industry, except to the extent the 
regulations incorporate requirements specifically set forth in law. 
Title II of the UMRA directs agencies to prepare a written statement 
assessing the effects of any Federal mandate in a proposed or final 
agency rule that may result in $100 million or more expenditure 
(adjusted annually for inflation) in any 1 year by State, local, and 
tribal governments, in the aggregate, or by the private sector. A 
Federal mandate is any provision in a regulation that imposes an 
enforceable duty upon State, local, or tribal governments, or imposes a 
duty on the private sector that is not voluntary.
    As explained in section V.B above, this NPRM does not include any 
Federal mandate that could result in increased expenditure by State, 
local, and tribal governments in the aggregate of more than $100 
million, or increased expenditures by the private sector of more than 
$100 million. State governments administer the TAA Program as agents of 
the United States and are provided appropriated Federal funds for all 
TAA Program expenses.

G. Executive Order 13175 (Indian Tribal Governments)

    E.O. 13175 addresses the unique relationship between the Federal 
Government and Indian tribal governments. It requires Federal agencies 
to take certain actions when regulations have tribal implications. 
Required actions include consulting with tribal governments prior to 
promulgating a regulation with tribal implications and preparing a 
tribal impact statement. E.O. 13175 defines regulations as having 
``tribal implications'' when they have substantial direct effects on 
one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes. 
Because this NPRM addresses the worker-certification process at the 
Federal level, the individual benefit and training authorization 
process at the State level, State administration of the TAA Program, 
and the Department's distribution of TAA Program funds to the States, 
the Department concludes that it does not have tribal implications.

List of Subjects

20 CFR Part 617

    Administrative practice and procedure, Employment, Fraud, Grant 
programs--Labor, Manpower training programs, Relocation assistance, 
Reporting and recordkeeping requirements.

20 CFR Part 618

    Administrative practice and procedure, Employment, Fraud, Grant 
programs--Labor, Manpower training programs, Relocation assistance, 
Reporting and recordkeeping requirements, Trade adjustment assistance.

[[Page 60224]]

29 CFR Part 90

    Administrative practice and procedure, Grant programs--labor, 
Reporting and recordkeeping requirements, Trade adjustment assistance.

    Under the authority of 19 U.S.C. 2320(a) and for the reasons 
discussed in the preamble, the Department of Labor proposes to amend 20 
CFR parts 617 and 618 and 29 CFR part 90 as follows:

PART 617--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS UNDER THE TRADE 
ACT OF 1974

0
1. The authority citation for 20 CFR part 617 continues to read as 
follows:

     Authority: 19 U.S.C. 2320; Secretary's Order No. 3-81, 46 FR 
31117.

Appendices A, B, and C to Part 617--[Transferred to Part 618 and 
Redesignated]

0
2. Transfer appendices A, B, and C of part 617 to part 618 and 
redesignate the appendices as appendices to part 618.

PART 617--[REMOVED AND RESERVED]

0
3. Remove and reserve part 617.
0
4. Revise 20 CFR part 618 to read as follows:

PART 618--TRADE ADJUSTMENT ASSISTANCE UNDER THE TRADE ACT OF 1974, 
AS AMENDED

Subpart A--General
Sec.
618.100 Purpose and scope.
618.110 Definitions.
Subpart B--Petitions, Investigations, and Determinations
Sec.
618.200 Scope.
618.205 Petitions.
618.210 Investigation.
618.215 Public hearings.
618.220 Use of subpoena.
618.225 Criteria for certification of a group of workers.
618.230 Evidence.
618.235 Determinations.
618.240 Termination of certification.
618.245 Reconsideration of termination of an investigation, denial, 
or termination or partial termination of certification.
618.250 Amendments of certifications.
618.255 Judicial review of determinations.
618.260 Study regarding certain affirmative determinations by the 
Commission.
618.265 Availability of information to the public.
Subpart C--Employment and Case Management Services
Sec.
618.300 Scope.
618.305 The Trade Adjustment Assistance Program as a one-stop 
partner.
618.310 Responsibilities for the delivery of employment and case 
management services.
618.325 Integrated service strategies and Workforce Innovation and 
Opportunity Act co-enrollment.
618.330 Assessment of trade-affected workers.
618.335 Initial assessment of trade-affected workers.
618.345 Comprehensive and specialized assessment of trade-affected 
workers.
618.350 Individual employment plans for trade-affected workers.
618.355 Knowledge, skills, and abilities of staff performing 
assessments.
618.360 Employment and case management services for trade-affected 
workers in training.
Subpart D--Job Search and Relocation Allowances
Sec.
618.400 Scope.
618.405 General.
618.410 Applying for a job search allowance.
618.415 Eligibility for a job search allowance.
618.420 Findings required.
618.425 Amount of a job search allowance.
618.430 Determination and payment of a job search allowance.
618.435 Job search program participation.
618.440 Applying for a relocation allowance.
618.445 Eligibility for a relocation allowance.
618.450 Findings required.
618.455 Determining the amount of a relocation allowance.
618.460 Determinations and payment of a relocation allowance.
Subpart E--Reemployment Trade Adjustment Assistance
Sec.
618.500 Scope.
618.505 Individual eligibility.
618.510 Eligibility period for payments of Reemployment Trade 
Adjustment Assistance and application deadline.
618.515 Continuing eligibility and timing of payments.
618.520 Benefits available to eligible adversely affected workers.
618.525 Determinations, redeterminations, and appeals.
618.530 Reductions of Reemployment Trade Adjustment Assistance 
payments; priority of payments.
Subpart F--Training Services
Sec.
618.600 Scope.
618.605 General procedures.
618.610 Criteria for approval of training.
618.615 Limitations on training approval.
618.620 Selection of training program.
618.625 Payment restrictions for training programs.
618.630 Training of reemployed trade-affected workers not in 
suitable employment.
618.635 Work-based training.
618.640 Supplemental assistance.
618.645 Voluntary withdrawal from a training program.
618.650 State standards and procedures for establishing reasonable 
cost of training.
618.655 Training for adversely affected incumbent workers.
618.660 Training benchmarks.
618.665 Amending approved training.
Subpart G--Trade Readjustment Allowances
Sec.
618.700 Scope.
618.705 Definitions.
618.710 Categories of Trade Readjustment Allowances.
618.715 Applications for Trade Readjustment Allowances and payment.
618.720 Qualifying requirements for Basic Trade Readjustment 
Allowances.
618.725 Training enrollment deadlines.
618.730 Good cause.
618.735 Waiver of training requirement for Basic Trade Readjustment 
Allowances.
618.740 Evidence of qualification for Basic, Additional, and 
Completion Trade Readjustment Allowances.
618.745 Weekly amounts of Basic, Additional, and Completion Trade 
Readjustment Allowances.
618.750 Maximum amount of Basic Trade Readjustment Allowances.
618.755 Eligibility period for Basic Trade Readjustment Allowances.
618.760 Qualifying requirements for, and timing and duration of, 
Additional Trade Readjustment Allowances.
618.765 Qualifying requirements for, and timing and duration of, 
Completion Trade Readjustment Allowances.
618.770 Special rule for justifiable cause.
618.775 Payment of Trade Readjustment Allowances during breaks in 
training.
618.780 Disqualifications.
Subpart H--Administration by Applicable State Agencies
Sec.
618.800 Scope.
618.804 Agreements with the Secretary of Labor.
618.808 State rulemaking.
618.812 Subpoenas.
618.816 Trade Adjustment Assistance Program benefit information and 
provision of services to workers.
618.820 Determinations of eligibility; notices to individuals.
618.824 Liable State and agent State responsibilities.
618.828 Appeals and hearings.
618.832 Overpayments; penalties for fraud.
618.836 Recovery of debts due the United States or to others by 
Trade Adjustment Assistance offset.
618.840 Uniform interpretation and application of this part.
618.844 Inviolate rights to Trade Adjustment Assistance or 
Reemployment Trade Adjustment Assistance.
618.848 Veterans' priority of service.
618.852 Recordkeeping and disclosure of information requirements.
618.856 Information, reports, and studies.
618.860 General fiscal and administrative requirements and cost 
classification.

[[Page 60225]]

618.864 Trade Adjustment Assistance Program performance.
618.868 Unemployment Insurance.
618.872 Travel under the Trade Adjustment Assistance Program.
618.876 Verification of eligibility for program benefits.
618.884 Special rule with respect to military service.
618.888 Equitable tolling.
618.890 Staffing flexibility.
618.894 Nondiscrimination and equal opportunity requirements.
618.898 Applicable State law.
Subpart I--Allocation of Funds to States for Training and Other 
Activities
Sec.
618.900 Annual cap on funds available for Training and Other 
Activities.
618.910 Initial allocation of funds.
618.920 Reserve fund distributions.
618.930 Second distribution.
618.940 Insufficient funds.
618.950 Recapture and reallocation of Training and Other Activities 
funds.

    Authority: 19 U.S.C. 2320; Secretary's Order No. 03-2009, 74 FR 
2279 (Jan. 14, 2009).

Subpart A--General


Sec.  618.100  Purpose and scope.

    (a) Purpose. The Act establishes a Trade Adjustment Assistance for 
Workers (TAA) Program. The goal of the TAA Program is to help each 
worker participating in the program obtain suitable employment whenever 
possible, and to return to employment as quickly as possible.
    (b) Scope. Global trade impacts thousands of workers each year 
across the United States. The TAA Program provides trade-affected 
workers with opportunities to obtain the skills, credentials, 
resources, and support necessary to become reemployed in a good job. 
The TAA Program's benefits and services include: Employment and case 
management services, training, out-of-area job search and relocation 
allowances, income support through Trade Readjustment Allowances (TRA), 
the Reemployment Trade Adjustment Assistance (RTAA) benefit for workers 
aged 50 or older who find qualifying reemployment, and, if available, 
the Health Coverage Tax Credit (HCTC). Together with its workforce 
development partners in the one-stop delivery system authorized under 
the Workforce Innovation and Opportunity Act (WIOA), the TAA Program 
helps retrain, retool, and rebuild the American workforce.
    (c) Effect. The regulations in this part are issued to implement 
the Act.


Sec.  618.110  Definitions.

    The following definitions apply solely in this part.
    Act means chapter 2 of title II of the Trade Act of 1974, Public 
Law 93-618, 88 Stat. 1978 (19 U.S.C. 2271-2323 and 2395), as amended.
    Administrator means the Administrator, Office of Trade Adjustment 
Assistance, Employment and Training Administration, U.S. Department of 
Labor, Washington, DC, who has responsibility for administering the TAA 
Program, or their designee.
    Adversely affected employment means employment in a firm or 
appropriate subdivision, if workers of the firm or appropriate 
subdivision are certified as eligible to apply for the TAA Program 
under subpart B of this part.
    Adversely affected worker or AAW (also referred to, in combination 
with an AAIW, as a trade-affected worker) means an individual, 
including an employer, who, because of lack of work in adversely 
affected employment, has been totally or partially separated from such 
employment.
    Adversely affected incumbent worker or AAIW (also referred to, in 
combination with an AAW, as a trade-affected worker) means a worker 
who:
    (1) Is a member of a worker group certified as eligible to apply 
for the TAA Program under subpart B of this part;
    (2) Has not been totally or partially separated from adversely 
affected employment; and
    (3) The Department determines, on an individual basis, is 
threatened with total or partial separation.
    Agent State means, with respect to any trade-affected worker, any 
State that provides services or benefits for such trade-affected worker 
other than the State that is the liable State. (See also definition for 
liable State in this section.)
    Applicable State law means, for any worker, the State law of the 
State:
    (1) In which such worker is entitled to Unemployment Insurance (UI) 
(whether or not such worker has filed a UI claim) immediately following 
such worker's first separation; or
    (2) If the worker is not so entitled to UI under the State law of 
any State immediately following such first separation, or is entitled 
to UI under the Railroad Unemployment Insurance Act (RRUI), the State 
law of the State in which such first separation occurred.
    Appropriate subdivision means an establishment, facility or 
facilities, an organizational department, a product line, a project 
team, an operational unit, or part or combination thereof. The 
appropriate subdivision is determined on a case-by-case basis and 
includes all workers or a subset of workers working at, or reporting 
to, the location(s) identified in the petition, or subsequently 
identified during the course of the investigation, whose employment is 
dependent upon the production of the specific article or supply of the 
specific service identified in the petition, or identified during the 
course of the investigation.
    Appropriate week means the week in which the AAW's first separation 
occurred.
    Approved training or TAA approved training means a training program 
approved under subpart F of this part (Sec.  618.610).
    Article means a tangible good or an intangible good sold or 
produced by a firm. The good must be the subject of the sale or 
production, and not an object that is produced incidentally to the sale 
or production. An article can be measured in individual production 
units or commercial production units, such as with commodities. Sale of 
an article is the means by which revenue is generated, accumulated, or 
calculated.
    Average weekly hours means the average hours worked by an AAW 
(excluding overtime) in the employment from which the worker has been 
or claims to have been separated in the 52 consecutive calendar weeks 
(excluding weeks during which the worker was sick or on vacation) 
immediately preceding the worker's total separation or, for a partially 
separated worker, the week before the appropriate week. The average is 
obtained by dividing:
    (1) Total hours worked (excluding overtime) in the 52 consecutive 
calendar weeks (excluding weeks in such period during which the worker 
was sick or on vacation); by
    (2) The number of weeks in such 52 consecutive calendar weeks 
(excluding weeks in such period during which the worker was sick or on 
vacation).
    Average weekly wage means one-thirteenth of the total wages paid to 
an AAW in the high quarter. For purposes of this computation, the high 
quarter is the quarter in which the worker's total wages were highest 
among the first 4 of the last 5 completed calendar quarters immediately 
preceding the week in which total separation occurred or, in cases 
where partial separation is claimed, the appropriate week.
    Benefit period means, with respect to an AAW:
    (1) The benefit year and any ensuing period, as determined under 
the applicable State law, during which the worker is eligible for 
regular compensation, additional compensation, or extended 
compensation; or

[[Page 60226]]

    (2) The equivalent to such a benefit year or ensuing period 
provided for under Federal UI law.
    Certification or affirmative determination or petition 
certification means a determination issued under Sec.  618.235(a), or 
an amendment under Sec.  618.250, of eligibility to apply for the TAA 
Program, with respect to a specified worker group of a firm or 
appropriate subdivision. Excluded from this definition are 
``certifications'' in secs. 223(d), 236(a)(5)(H), 239(a)(3), and 
247(19) of the Act, and ``affirmative determinations'' in secs. 222(e) 
and 224 of the Act.
    Certification date or date of certification means the date on which 
the certifying officer signs the certification. This is the date that 
the certification takes effect.
    Certification period means the period of time during which total, 
partial, or threat of separations from adversely affected employment 
within a firm or appropriate subdivision of a firm are covered by a 
certification for worker groups eligible to apply for assistance under 
sec. 222(a) and (b) of the Act. It also means the period of time during 
which total or partial separations from adversely affected employment 
within a firm are covered by a certification for worker groups eligible 
to apply for assistance under sec. 222(e) of the Act. The certification 
period begins on the impact date and, unless stated otherwise in the 
certification, ends 2 years after the certification date. A 
certification may expire sooner than 2 years after the certification 
date as a result of a termination under Sec.  618.240, an amendment 
under Sec.  618.250, or if a certification is based on a determination 
issued by the International Trade Commission (ITC) under sec. 222(e) of 
the Act.
    Certifying Officer means an official, including the Administrator 
of the Office of Trade Adjustment Assistance, Employment and Training 
Administration, Department of Labor, who has been delegated 
responsibility to make determinations and issue certifications of 
eligibility to apply for the TAA Program, and to perform such further 
duties as may be required.
    Co-enrollment means enrollment in the TAA Program and at least one 
other program that operates as part of the one-stop delivery system, 
such as the dislocated worker program under title I of WIOA.
    Commission or International Trade Commission or ITC means the U.S. 
International Trade Commission.
    Commuting area means the area in which a trade-affected worker 
would be expected to travel to and from work on a daily basis as 
determined under the applicable State law.
    Completion of training or complete training or completed training 
means that the trade-affected worker has finished all required 
coursework (including required externships or internships), testing, 
and professional licensing exams related to TAA approved training.
    Component part means an input (tangible or intangible article) that 
is directly incorporated into the production of another article, 
although it need not retain its original form or characteristics.
    Confidential business information means trade secrets and 
commercial or financial information received by the Department, or by 
the States on the Department's behalf, during an investigation under 
subpart B of this part, which the Department considers to be privileged 
or confidential as set forth in the Trade Secrets Act (18 U.S.C. 1905), 
5 U.S.C. 552(b)(4), or 29 CFR part 70. It does not include publicly 
available business information, or business information with respect to 
which the firm or customer submitting the information had notice, at 
the time of submitting the information, that the information would be 
released by the Department or the States, or if the firm or customer 
subsequently consents to the release of the information.
    Contributed importantly means a cause that is important but not 
necessarily more important than any other cause.
    Cooperating State agency or CSA means the agency at the State level 
that will act as agent of the Department in receiving applications from 
and providing benefits and services to trade-affected workers in 
coordination with the State agency that administers the UI law, if 
applicable, and such other agency or agencies of the State as the 
Governor of the State may designate to cooperate with such CSA for 
performance accountability reporting and other purposes.
    Customized training means work-based training that is:
    (1) Designed to meet the special requirements of a single employer 
or group of employers;
    (2) Conducted with a commitment by the employer or group of 
employers to employ a trade-affected worker upon successful completion 
of the training; and
    (3) For which the employer pays for a significant portion (but in 
no case less than 50 percent) of the cost of such training.
    Denial or negative determination or petition denial means a 
determination issued under Sec.  618.235(b) that a group of workers is 
not eligible for TAA Program benefits.
    Department of Labor or Department means the U.S. Department of 
Labor.
    Downstream producer means a firm that performs additional, value-
added production processes or services, such as final assembly, 
finishing, testing, packaging, or maintenance or transportation 
services. The value-added production processes or services must be 
performed directly for another firm that has a worker group certified 
to apply for the TAA Program under Sec.  618.225, and the production 
processes or services must be carried out with respect to the article 
or service on which the certification under Sec.  618.225 was based.
    Eligible RTAA recipient means, for HCTC purposes (see definition of 
HCTC), an AAW eligible for RTAA and who is participating in RTAA for a 
month and is receiving an RTAA benefit for that month.
    Eligible TAA recipient means, for HCTC purposes (see definition of 
HCTC), an AAW who receives TRA for any day of the month or who would be 
eligible to receive TRA but for the fact that the worker has not 
exhausted their UI entitlement.
    Employer means any individual or type of organization, including 
the Federal Government, a State government, a political subdivision, or 
an instrumentality of one or more governmental entities, with one or 
more individuals performing service in employment for it within the 
United States.
    Employment means any service performed for an employer by an 
officer of a corporation or by an individual for wages.
    Enrolled in training means that a worker's application for training 
is approved by the State under subpart F of this part, and the training 
provider has furnished written notice to the State that the worker has 
been accepted in the approved training program, which is to begin 
within 30 calendar days of the date of such approval.
    Family means the following members of an adversely affected 
workers's household whose principal place of abode is with the 
individual in a home the individual maintains or would maintain but for 
unemployment:
    (1) Spouse;
    (2) Domestic partner;
    (3) Children of the adversely affected worker, of the worker's 
spouse, or of the worker's domestic partner, who are unmarried and 
under 21 years of age or who, regardless of age, are physically or 
mentally incapable of self-support. (The

[[Page 60227]]

term ``children'' shall include natural offspring; stepchildren; 
adopted children; grandchildren, legal minor wards or other dependent 
children who are under legal guardianship of the worker, of the 
worker's spouse, or of the domestic partner; and an unborn child(ren) 
born and moved after the worker's effective date of transfer.);
    (4) Dependent parents (including step and legally adoptive parents) 
of the worker, of the worker's spouse, or of the worker's domestic 
partner; and
    (5) Dependent brothers and sisters (including step and legally 
adoptive brothers and sisters) of the worker, of the worker's spouse, 
or of the worker's domestic partner, who are unmarried and under 21 
years of age or who, regardless of age, are physically or mentally 
incapable of self-support.
    Filing date means the date on which the petition and attachments to 
the petition form are determined to be valid by the Department's Office 
of Trade Adjustment Assistance, in accordance with Sec.  618.205.
    Firm means an individual proprietorship, partnership, joint 
venture, association, corporation (including a development 
corporation), business trust, cooperative, trustee in bankruptcy, or 
receiver under decree of any court. A firm, together with any 
predecessor or successor-in-interest, or together with any affiliated 
firm controlled or substantially beneficially owned by substantially 
the same persons may be considered a single firm. Where the term 
``firm'' appears in this part, it means ``firm or appropriate 
subdivision.'' Firm also means an agricultural firm or service sector 
firm or an appropriate subdivision thereof. For purposes of subpart B 
of this part only, firm does not include a public agency or any 
subdivision of a public agency, as defined in 29 U.S.C. 203(x).
    First benefit period means the benefit period established after the 
AAW's first qualifying separation or in which such separation occurs.
    Full-time training means:
    (1) Attendance in training in accordance with the training 
provider's established full-time hours in a day (or credit hours) and 
days in a week; and
    (2) In the last semester of training, if the remaining course(s) to 
complete the training approved under subpart F of this part do not meet 
the training provider's usual definition of full-time, States must 
consider the participation in training as full-time training, if no 
additional training or coursework will be required to complete the 
training program.
    Group of workers means at least two workers employed or formerly 
employed by the same firm, or an appropriate subdivision thereof, 
including teleworkers and staffed workers, who file a petition for 
certification under subpart B of this part, or for whom a petition is 
filed.
    Health Coverage Tax Credit or HCTC means the tax credit equal to a 
specific percentage of the costs of qualified health insurance 
premiums, which is administered by the Internal Revenue Service under 
sec. 35 of the Internal Revenue Code of 1986, as amended (26 U.S.C. 
35). When the tax credit is available, eligible TAA and RTAA recipients 
(see definitions of eligible TAA recipient and eligible RTAA recipient) 
and qualifying family members may apply for advance payment of the 
credit or claim the credit on their income tax return.
    Impact date means the date stated in a certification of eligibility 
to apply for the TAA Program, on which the total or partial separations 
of the workers covered by the certification began or threatened to 
begin, but in most cases, is not more than 1 year before the petition 
date.
    Increased imports means that imports have increased either 
absolutely or relative to domestic production compared to a 
representative base period. The representative base period will be 1 
year consisting of the 4 quarters immediately preceding the date that 
is 12 months prior to the date of the petition.
    Individual employment plan or IEP means a revisable document 
containing an ongoing strategy, jointly developed by the trade-affected 
worker and the State, identifying the worker's employment goals, 
appropriate achievement objectives, and appropriate services for the 
worker to achieve their employment goals, objectives, and benchmarks 
while in training or receiving employment and case management services.
    Job finding club means a job search workshop that includes a period 
of 1 to 2 weeks of structured, supervised activity in which trade-
affected workers attempt to obtain jobs.
    Job search program or JSP means a job search workshop or job 
finding club.
    Job search workshop means a short (1 to 3 days) seminar designed to 
provide workers with knowledge that will enable the workers to find 
jobs. Subjects are not limited to, but should include, labor market 
information, resume writing, interviewing techniques, and techniques 
for finding job openings.
    Lack of work means that the employer does not have work for the 
worker to perform or does not make that work available to the worker, 
and includes, but is not limited to, circumstances when:
    (1) Work is unavailable because the employer suspends or ceases 
operations or institutes a lockout; or
    (2) Work is unavailable because the employer downsizes the 
workforce by means of attrition or layoff.
    Layoff means a suspension of or separation from employment by a 
firm for lack of work, initiated by the employer, and expected to be 
for a definite or indefinite period of time.
    Liable State means, with respect to a trade-affected worker making 
claims for TAA Program benefits, the State whose State UI law is the 
applicable State law.
    Like or directly competitive means, for articles, that articles 
have characteristics that are substantially identical in inherent or 
intrinsic characteristics (i.e., material from which the articles are 
made, appearance, quality) or are used for substantially equivalent 
purposes and achieve comparable results and are, therefore, 
commercially interchangeable; and for services, services that have 
characteristics that are substantially identical in inherent or 
intrinsic characteristics (i.e., processes and procedures that comprise 
the activity, sequence of steps or component elements required in the 
provision of the service or both) or are used for substantially 
equivalent purposes and achieve comparable results and are, therefore, 
commercially interchangeable.
    Office of Trade Adjustment Assistance or OTAA means the 
organization within the U.S. Department of Labor, Employment and 
Training Administration that administers the TAA Program, or OTAA's 
successor organization.
    One-stop delivery system means the nationwide system of one-stop 
career centers, known as American Job Centers, which administer and 
deliver workforce development, educational, and training activities, as 
well as supportive services to workers and job seekers, in accordance 
with title I of WIOA.
    On-the-job training or OJT means work-based training, provided--
under contract with an employer in the public, nonprofit, or private 
sector--to an AAW who is employed by the employer.
    Partial separation or partially separated means, with respect to an 
AAW who has not been totally separated, that:
    (1) For purposes of subpart B of this part:
    (i) The worker's hours of work have been reduced to 80 percent or 
less of the worker's average weekly hours at the

[[Page 60228]]

firm, or appropriate subdivision thereof during the period of 
investigation; and
    (ii) The worker's wages have been reduced to 80 percent or less of 
the worker's average weekly wage at the firm, or appropriate 
subdivision thereof during the period of investigation.
    (2) For this subpart and subparts C through I of this part:
    (i) The worker's hours of work have been reduced to 80 percent or 
less of the worker's average weekly hours in adversely affected 
employment during the certification period; and
    (ii) The worker's wages have been reduced to 80 percent or less of 
the worker's average weekly wage in adversely affected employment 
during the certification period.
    Period of duty means active duty served by an AAW before completing 
training under subpart F of this part for a period of more than 30 days 
under a call or order to active duty of more than 30 days or, in the 
case of a member of the Army National Guard of the United States or Air 
National Guard of the United States, full-time National Guard duty 
under sec. 502(f) of title 32, U.S. Code, for 30 consecutive days or 
more when authorized by the President or the Secretary of Defense for 
the purpose of responding to a national emergency declared by the 
President and supported by Federal funds.
    Petition date means the date a petition form is signed by the 
petitioner(s). When petitioners sign on different dates, the petition 
date is the latest of those dates.
    Prerequisite education or prerequisite coursework or prerequisite 
training means any coursework or training required by a training 
provider before advancing to further training.
    Program of remedial education or remedial education or remedial 
training means coursework or training that is designed to enhance the 
employability of a trade-affected worker by upgrading basic academic 
knowledge through such courses as adult basic education (ABE), basic 
math and literacy, English language acquisition (ELA) for nonnative 
speakers, and high school equivalency (HSE) courses, among others.
    Qualifying separation means any total or partial separation of an 
AAW from adversely affected employment within the certification period 
for the purposes of determining their eligibility to receive Basic TRA; 
26-week period for enrollment in approved training; and Basic TRA 
eligibility period. The first qualifying separation is used to 
determine the weekly and maximum amounts of Basic TRA payable to an 
AAW.
    Reemployment Trade Adjustment Assistance or RTAA means the TAA 
Program benefit available to certain AAWs 50 years of age and older who 
obtain qualifying reemployment.
    Regional Administrator means the appropriate Regional Administrator 
of the U.S. Department of Labor's Employment and Training 
Administration.
    Secretary means the Secretary of Labor, U.S. Department of Labor, 
or his or her designee.
    Separation date means:
    (1) For a total separation:
    (i) For a worker in employment status and not on employer-
authorized leave, the last day worked; or
    (ii) For a worker on employer-authorized leave, including leave for 
military service, the last day the worker would have worked had the 
worker not been on the employer-authorized leave.
    (2) For a partial separation, the last day of the week in which the 
partial separation occurred.
    Service means the work performed by a worker for a service firm or 
appropriate subdivision. The work of a service firm is measured in 
units of time, labor, and tasks completed. Services may include the 
incidental production of an article, such as a license, ticket, 
certificate, permit, model, drawing, or prototype. Services are 
intangible but may involve the use of tangible objects during the 
supply of the service (such as textbooks in the supply of educational 
services). Where the revenue of the firm, or appropriate subdivision, 
is generated from the sale of a service, the firm, or appropriate 
subdivision, is deemed to be engaged in activity related to the supply 
of a service.
    Significant number or proportion of the workers means:
    (1) The lesser of 50 workers or 5 percent of the workers within a 
firm, or appropriate subdivision, have been totally or partially 
separated, or both, or are threatened with total or partial separation; 
or
    (2) 2 or more workers within a firm, or appropriate subdivision, 
with a workforce of fewer than 50 workers, have been totally or 
partially separated, or both, or are threatened with total or partial 
separation.
    Staffed worker means a worker directly employed by one firm to 
perform work under the operational control of another firm that is the 
subject of a petition investigation. These workers were previously 
referred to as ``leased workers.'' The term excludes independent 
contractors.
    State means the States of the United States, the District of 
Columbia, and the Commonwealth of Puerto Rico; and the term ``United 
States,'' when used in the geographical sense, includes the 
Commonwealth of Puerto Rico.
    State agency means the agency at the State level that administers 
the State law.
    State law means the UI law of a State under sec. 3304 of the 
Internal Revenue Code of 1986, as amended (26 U.S.C. 3304).
    Successor-in-interest means a firm, whether or not named on a 
certification issued under subpart B of this part, from which trade-
affected workers are separated, or threatened with separation, and 
where most or all of the factors in paragraphs (1) thorugh (7) of this 
defintion are present, relative to a firm named on a determination 
issued under subpart B:
    (1) There is continuity in business operations.
    (2) There is continuity in location.
    (3) There is continuity in the workforce.
    (4) There is continuity in supervisory personnel.
    (5) The same jobs exist under similar conditions.
    (6) There is continuity in machinery, equipment, and process.
    (7) There is continuity in product/service.
    Suitable employment means, with respect to a worker, work of a 
substantially equal or higher skill level than the worker's past 
adversely affected employment, and wages for such work that are not 
less than 80 percent of the worker's average weekly wage. Part-time, 
temporary, short-term, or threatened employment is not suitable 
employment.
    Supplier means a firm that produces and supplies directly to 
another firm component parts for articles, or services, used in the 
production of articles or in the supply of services, as the case may 
be, that were the basis for a certification of eligibility under Sec.  
618.225 of a worker group employed by such other firm. There is no 
direct supply where an intervening customer, supplier, or another 
entity receives the component parts, aside from in a delivery or 
bailment capacity, or in the case of a service supplier, if an 
intervening entity performs the service.
    Supportive services means services such as local transportation, 
child care, dependent care, and housing, provided through WIOA or other 
programs, that are needed to enable an individual to participate in 
activities authorized under the Act.
    Threatened to become totally or partially separated means that 
there is evidence of intent to separate workers or

[[Page 60229]]

that imminent separations are reasonably anticipated.
    Threatened to begin means, in the context of reasonably anticipated 
total or partial separations, the date(s) on which imminent separations 
will begin.
    Total separation or totally separated means:
    (1) For purposes of subpart B of this part, the layoff or severance 
of an AAW from a firm or appropriate subdivision thereof; or
    (2) For all other purposes under this part, the layoff or severance 
of a worker from adversely affected employment with a firm, or 
appropriate subdivision thereof.
    Trade Adjustment Assistance for Workers or Trade Adjustment 
Assistance or TAA Program means chapter 2 of title II of the Act, 
Public Law 93-618, 88 Stat. 1978 (19 U.S.C. 2271-2323 and 2395), as 
amended, which establishes the Trade Adjustment Assistance for Workers 
(TAA) Program. The benefits and services established under the Act, 
including RTAA, are collectively referred to as the Trade Adjustment 
Assistance Program (TAA Program) and provide assistance to workers 
adversely affected by foreign trade, as described in this part.
    Trade-affected worker means both ``adversely affected workers'' and 
``adversely affected incumbent workers.''
    Trade Readjustment Allowances or TRA means a weekly allowance 
payable to an AAW who meets the requirements of subpart G of this part. 
There are three types of TRA: Basic, Additional, and Completion, as 
described in Sec.  618.710.
    Unemployment Insurance or UI means the unemployment compensation 
payable to a worker under any State law or Federal UI law, including 
chapter 85 of title 5 of the U.S. Code and the RRUI. UI includes:
    (1) Regular compensation means compensation payable to a worker 
under any State unemployment compensation law (including compensation 
payable pursuant to 5 U.S.C. chapter 85), other than extended 
compensation and additional compensation.
    (2) Additional compensation means compensation payable to 
exhaustees by reason of conditions of high unemployment or by reason of 
other special factors.
    (3) Extended compensation means compensation (including additional 
compensation and compensation payable pursuant to 5 U.S.C. chapter 85) 
payable for weeks of unemployment beginning in an extended benefit 
period to a worker under those provisions of the State law that satisfy 
the requirements of the Federal-State Extended Unemployment 
Compensation Act of 1970 (EUCA) (26 U.S.C. 3304 (note)) with respect to 
the payment of extended compensation, including one-hundred percent 
federally funded unemployment compensation extensions.
    Value-added production processes or services means such processes 
or services similar to and including final assembly, finishing, 
testing, packaging, or maintenance or transportation services.
    Wages means all compensation for employment for an employer, 
including commissions, bonuses, and the cash value of all compensation 
in a medium other than cash.
    Wagner-Peyser Act means the Wagner-Peyser Act, as amended (29 
U.S.C. 49 et seq.).
    Week means a week as defined in the applicable State law.
    Week of unemployment means a week of total, part-total, or partial 
unemployment as determined under the applicable State law or Federal UI 
law.
    Worker group means two or more workers of the same firm, or 
appropriate subdivision thereof, named in a certification rendered 
under subpart B of this part as eligible to apply for TAA Program 
benefits and services, inclusive of teleworkers and staffed workers.
    Workforce Innovation and Opportunity Act or WIOA means the 
Workforce Innovation and Opportunity Act (Pub. L. 113-128, as amended).

Subpart B--Petitions, Investigations, and Determinations


Sec.  618.200  Scope.

    This subpart relates to petitions, investigations, and 
determinations of eligibility for a group of workers to apply for 
adjustment assistance under the Act. This subpart specifically applies 
to the initiation, conduct, and effective processing of petitions for 
certification of eligibility to apply for adjustment assistance. This 
subpart also contains general provisions with respect to filing of 
documents, public availability of documents, and the appeals process.


Sec.  618.205  Petitions.

    (a) Who may file a petition. A group of workers must file its 
petition for certification of eligibility to apply for adjustment 
assistance simultaneously with the Department and with the Governor of 
the State in which such workers' firm is located, by any of the 
following:
    (1) A group of two or more workers from the same firm, on whose 
behalf the petition is filed;
    (2) A union, or other duly authorized representative of the group 
of workers;
    (3) The employer(s) of the group of workers; or
    (4) One-stop center operators or one-stop partners, including State 
workforce officials, employment security agencies, or dislocated worker 
unit and rapid response team members.
    (b) Form and contents. A group of workers must file its petition 
for certification of eligibility to apply for adjustment assistance 
with the Department. Petitioners may obtain a petition form and 
instructions online at: http://www.doleta.gov/tradeact, at a one-stop 
center (also known as an American Job Center), or by writing to: U.S. 
Department of Labor, Employment and Training Administration, Office of 
Trade Adjustment Assistance, 200 Constitution Avenue NW, Washington, DC 
20210. A petition, which may include attachments, must provide the 
following information to be considered valid and for an investigation 
to commence:
    (1) The name and contact information for each petitioner;
    (2) The name of the firm employing the group of workers;
    (3) The address of the location(s) where the group of workers who 
have been totally or partially separated or threatened with separation 
report to work (for a teleworker, the address of the location to which 
they report);
    (4) The name and contact information of an official within the 
employer firm or an individual authorized to provide information 
regarding the operation of the group of workers' firm;
    (5) The article produced or service supplied by the firm;
    (6) The actual or approximate date on which total or partial 
separations are threatened to occur or did occur;
    (7) The actual or estimated total number of workers who have been 
or may be separated;
    (8) A reason why the petitioner believes that worker separations 
have occurred or may occur at the employer's firm due to foreign trade 
impacts, or a reason why a request to amend an existing and active 
certification should be granted; and
    (9)(i) Every petition must be signed and dated by at least two 
members of the petitioning group, or by an official of a certified or 
recognized union or other duly authorized representative, or by a 
representative of one of the organizations listed in paragraph (a)(4) 
of this section.
    (ii) Signing of a petition must constitute acknowledgement that the 
information provided on the petition form will be used for the purposes 
of

[[Page 60230]]

determining worker group eligibility and providing notice to 
petitioners, workers, and the general public that the petition has been 
filed, and whether the worker group is eligible to apply for TAA 
Program benefits and services. Knowingly falsifying any information on 
the petition form is a Federal offense (18 U.S.C. 1001) and a violation 
of the Act (19 U.S.C. 2316). For the petition to be valid, the 
petitioner(s) listed on the form must sign and date the form, attesting 
to the fact that they are authorized to file a petition.
    (c) Supplemental information. Providing supplemental information, 
while not required, may assist the investigation. Attachments to the 
petition form are part of the petition.
    (d) Filing. (1) Petitions should be filed electronically with the 
Office of Trade Adjustment Assistance, via www.doleta.gov/tradeact. 
Individuals requiring assistance in filing online should contact their 
nearest one-stop center or the State's rapid response unit.
    (2) Alternatively, petitions may be filed via email to 
[email protected], via fax at (202) 693-3584 or (202) 693-3585, or 
by mail to: U.S. Department of Labor, Employment and Training 
Administration, Office of Trade Adjustment Assistance, 200 Constitution 
Avenue NW, Washington, DC 20210.
    (e) Industry notification of ITC determinations. Upon receiving 
notification from the ITC that it has issued an affirmative 
determination of injury or threat of injury under sec. 202 or 421 of 
the Act, under an applicable safeguard provision enacted to implement a 
trade agreement to which the United States is a party, or an 
affirmative final determination of material injury of threat thereof in 
investigation under sec. 705 or 735 of the Tariff Act of 1930, the 
Department will notify the affected parties listed in paragraph (e)(1) 
of this section. To the extent practicable, the Department may also 
notify other duly authorized representatives of the industry to which 
the ITC determination applies.
    (1) Parties the Department will notify under paragraph (e) of this 
section include:
    (i) Representatives of the domestic industry affected by the 
determination;
    (ii) Firms publicly identified by name during the proceeding 
related to the ITC determination; and
    (iii) Unions representing workers in firms covered by the 
determination.
    (2) The notice provided by the Department under paragraph (e) of 
this section will include:
    (i) A summary of the ITC determination;
    (ii) Information about the workers' potential eligibility for TAA 
Program benefits;
    (iii) The benefits and services available under the TAA Program;
    (iv) Information regarding the process for filing of petitions; and
    (v) The availability of assistance from the State for filing 
petitions.
    (3) The Department will also notify the Governor of each State in 
which one or more firms covered by an ITC determination are located and 
will identify those firms to the State.
    (f) Acceptance of petitions. The Department will review a petition, 
including attachments, to determine if it is valid within 2 business 
days of receipt of the petition by the Department. The date on which 
the petition is determined to be valid under paragraph (b) of this 
section is the filing date. The Department will not initiate the 
investigation until it has determined that the petition is valid.
    (g) Multiple petitions for same group of workers. If the Department 
receives multiple petitions regarding the same group of workers, it 
will base the filing date upon the first petition received.
    (h) Publication of notice in the Federal Register. The Department 
will publish a notice in the Federal Register and on the Department's 
website announcing the initiation of an investigation into all valid 
petitions filed.
    (i) Public access to petitions. A petition, including attachments, 
is a record that is available, in redacted form, in accordance with the 
Freedom of Information Act (FOIA), as amended (5 U.S.C. 552), Executive 
Order 12600, and 29 CFR part 70. The Department will post all 
petitions, in redacted form, to the Department's website and make them 
available for review at the Office of Trade Adjustment Assistance, 
Washington, DC.
    (j) Receipt of petition by the State. If the State receives a 
petition, the State must verify that the Department has also received 
the petition. If the petition has not been posted to the Department's 
website within 10 calendar days of receipt by the State, the State must 
forward the petition to the Department.


Sec.  618.210  Investigation.

    (a) Timing. The Department will initiate an investigation once it 
has deemed the petition valid in accordance with Sec.  618.205(f).
    (b) Period of investigation. For purposes of this subpart, the 
period of investigation is the time period it takes to investigate each 
of the criteria that are part of the Department's determination. The 
period of investigation varies for some eligibility criteria; Sec.  
618.225 describes the period of investigation for each criterion.
    (c) Investigative process. To determine whether the petitioning 
group of workers' eligibility criteria for certification have been met, 
the Department may take as many of the steps in paragraphs (c)(1) 
through (8) of this section during the investigation as it deems 
necessary to identify the group of workers and to reach a determination 
of eligibility to apply for TAA Program benefits for the identified 
worker group:
    (1) Verify information on the petition form by contacting the 
petitioner(s);
    (2) Provide the petitioner(s) the opportunity to submit additional 
evidence in support of the petition;
    (3) Obtain publicly available information about the workers' firm 
and industry;
    (4) Request information from the workers' firm;
    (5) Request information from the customers of the workers' firm;
    (6) Request information from the officials of certified or 
recognized unions or other duly authorized representatives of the group 
of workers;
    (7) Request information from one-stop center operators or one-stop 
partners; or
    (8) Use other available sources of information as necessary.
    (d) Protection of confidential business information. (1) The 
Department will determine whether information submitted by a firm or 
customer is confidential business information in accordance with FOIA, 
as amended (5 U.S.C. 552), Executive Order 12600, the Trade Secrets Act 
(18 U.S.C. 1905), and 29 CFR part 70.
    (2) The Department will not disclose confidential business 
information without the consent of the submitting firm or customer, 
unless under a court order to do so or as otherwise required by law.
    (e) Termination of investigation. (1) The Department will notify 
the petitioner of the termination of an investigation, publish a Notice 
of Termination of Investigation in the Federal Register, and post on 
the Department's website. The Department may terminate an investigation 
if the investigation establishes one of the following:
    (i) The petition is invalid, which includes petitions identifying a 
nonexistent group of workers, filed under false pretenses, or 
perpetuating fraud;
    (ii) The petitioner has withdrawn the petition in writing;
    (iii) The group of workers identified in the investigation is the 
same as a

[[Page 60231]]

group of workers identified in another pending investigation;
    (iv) The group of workers identified in the investigation already 
has been issued a denial, and the period of investigation applicable to 
the current investigation and the previous denial is the same; or
    (v) The group of workers identified in the investigation is already 
covered by a certification that does not expire within 90 calendar days 
of the determination.
    (2) If appropriate to protect the interests of the group of workers 
covered by a petition filed and terminated under paragraph (e)(1)(i) or 
(ii) of this section, the Department may use the original impact date 
of the terminated petition for the identical group of workers covered 
under a later, valid, petition covering the identical group of workers, 
provided that it is filed within 30 calendar days of the filing date of 
the first petition. Under no circumstances will the Department use the 
impact date of an earlier petition when that petition was terminated 
for being invalid under paragraph (e)(1)(i) of this section because it 
was filed under false pretenses or to perpetuate a fraud.
    (3) Section 618.245 describes reconsideration of a termination of 
investigation.
    (f) Investigative record. The investigative record of a 
determination will include the petition that initiated the 
investigation, the documents and other materials provided to the 
Department in connection with the determination on the petition, 
research conducted by the Department, and records of investigation 
activities (including but not limited to telephone logs and email 
correspondence, and any determination under Sec.  618.225(a), (b) or 
(c)). The investigative record excludes information that is privileged 
or otherwise exempt from disclosure. Personally identifiable 
information and confidential business information will be protected 
consistent with all Federal authorities and Departmental administrative 
guidance.
    (g) Site visits. The investigation may include one or more site 
visits to confirm information furnished by the petitioner(s) and to 
elicit other relevant information, where other methods to obtain or 
confirm information or both, are unsuccessful.


Sec.  618.215  Public hearings.

    (a) When held. (1) A public hearing must be held in connection with 
an investigation initiated under Sec.  618.210 whenever, but not later 
than 10 days after the date of publication in the Federal Register of 
the notice of receipt of the petition, such a hearing is requested in 
writing by:
    (i) The petitioner; or
    (ii) Any other person found by the Administrator to have a 
substantial interest in the proceedings.
    (2) Such petitioner and other interested persons must be afforded 
an opportunity to be present, to produce evidence, and to be heard.
    (3) An explanation of why the requestor is requesting the hearing 
must be provided to the Department.
    (b) Form of request. A request for public hearing must be filed, in 
letter format, in the same manner as provided for other documents under 
Sec.  618.205(d)(2). The request must contain:
    (1) The name, address, and telephone number of the person, 
organization, or group requesting the hearing;
    (2) A complete statement of the relationship of the person, 
organization, or group requesting the hearing to the petitioner or the 
petition's subject matter; and
    (3) An explanation of why the person, organization, or requestor is 
the hearing is interested in the matter.
    (c) Time, place, and scope. The time, place, and scope of a public 
hearing will be set by the presiding officers and published in the 
Federal Register a reasonable period of time before the scheduled 
hearing.
    (d) Presiding officer. The Administrator, or their designee, must 
conduct and preside over public hearings.
    (e) Order of testimony. Witnesses will testify in the order 
designated by the presiding officer. Each witness, after being duly 
sworn, will proceed with testimony. After testifying, the presiding 
officer or an agent designated by the presiding officer may question 
the witness. Any person who has entered an appearance in accordance 
with paragraph (k) of this section may direct questions to the witness, 
but only for the purpose of assisting the presiding officer in 
obtaining relevant and material facts with respect to the subject 
matter of the hearing.
    (f) Evidence. Witnesses may produce evidence of a relevant and 
material nature to the subject matter of the hearing.
    (g) Briefs. Parties who have entered an appearance may file briefs 
regarding the evidence produced at the hearing. The briefs must be 
filed with the presiding officer within 10 days of the completion of 
the hearing.
    (h) Oral argument. The presiding officer must provide opportunity 
for oral argument by parties listed in paragraphs (a)(1)(i) and (ii) of 
this section after conclusion of the testimony in a hearing. The 
presiding officer will determine in each instance the time to be 
allowed for argument and the allocation thereof.
    (i) Authentication of evidence. Evidence, oral or written, 
submitted at hearings, will, upon order of the presiding officer, be 
subject to verification from books, papers, and records of the parties 
submitting such evidence and from any other available sources.
    (j) Transcripts. All hearings will be transcribed or recorded in 
compliance with the standards of the Department. Persons interested in 
records of the hearings may inspect them at the U.S. Department of 
Labor in Washington, DC.
    (k) Appearances. Any person showing a substantial interest in the 
proceedings may enter an appearance at a hearing, either in person or 
by a duly authorized representative.


Sec.  618.220  Use of subpoena.

    (a) The Administrator may require, by subpoena, in connection with 
any investigation or hearing, the attendance and testimony of witnesses 
and the production of evidence the issuing official deems necessary to 
make a determination under this subpart.
    (b) The Department will issue a subpoena to secure evidence from a 
firm, customer, petitioner, or other person who fails to provide 
requested information within 20 days of the request, unless the 
recipient of the subpoena demonstrates to the satisfaction of the 
Department that the information will be provided within a reasonable 
time. In making this determination, the Department will consider the 
following factors:
    (1) Submission of a portion of the required information;
    (2) Prompt cooperation with inquiries about the information;
    (3) Cooperation in previous responses to information requests;
    (4) Evidence of effort to obtain the required information; and
    (5) Other information the Department determines to be relevant.
    (c) Witnesses subpoenaed under this section to appear in person 
must be paid the same fees and mileage as are paid for like services in 
the District Court of the United States within the jurisdiction of 
which the proceeding is taking place. The Department must pay the 
witness fees and mileage.
    (d) Subpoenas issued under paragraph (a) of this section must be 
signed by the Administrator, or their designee, and must be served 
consistent with Rule 5(b) of the Federal Rules of Civil Procedure.

[[Page 60232]]

The date for compliance must be 7 calendar days following service of 
the subpoena, unless otherwise indicated.
    (e) If the recipient of the subpoena refuses to provide the 
requested information, the Department may petition the appropriate 
District Court of the United States to seek enforcement of the 
subpoena.


Sec.  618.225  Criteria for certification of a group of workers.

    (a) Increased imports. (1) This paragraph (a) includes criteria for 
certification of a group of workers based upon increased imports of:
    (i) Articles like or directly competitive with the articles 
produced by the workers' firm;
    (ii) Services like or directly competitive with the services 
supplied by the workers' firm;
    (iii) Articles like or directly competitive with articles into 
which one or more component parts produced by the workers' firm are 
directly incorporated;
    (iv) Articles like or directly competitive with articles that are 
produced directly using services supplied by the workers' firm; or
    (v) Articles directly incorporating one or more component parts 
produced outside the United States that are like or directly 
competitive with imports of articles incorporating one or more 
component parts produced by the workers' firm.
    (2) After review of the relevant information necessary to make a 
determination, the certifying officer must certify a worker group as 
eligible to apply for TAA Program benefits and services as impacted by 
increased imports if all four of the criteria in paragraphs (a)(2)(i) 
through (iv) of this section are met.
    (i) Criterion 1. A significant number or proportion of the workers' 
firm, or appropriate subdivision thereof, have been totally or 
partially separated, or threatened with such separation, during the 1-
year period prior to the petition date.
    (A) Information regarding separations may be obtained from:
    (1) A questionnaire;
    (2) State workforce agencies;
    (3) Unions;
    (4) Displaced workers;
    (5) Public records; and
    (6) Other reliable sources.
    (B) Analysis of separation data must generally consist of a:
    (1) Comparison of employment on the petition date to employment on 
the date that is 1 year prior to the petition date;
    (2) Review of employment activity during the 1-year period prior to 
the petition date; and
    (3) Review of evidence provided by the workers' firm regarding 
actual and threatened separations that occur, or are scheduled to 
occur, after the petition date.
    (C) Evidence of threat of separation includes, but is not limited 
to:
    (1) A Worker Adjustment and Retraining Notice (WARN) letter;
    (2) A separation schedule;
    (3) Information provided to the public, such as a news release or 
notice on the workers' firm website;
    (4) Information provided to the worker group; or
    (5) Internal firm documents, including memoranda or a firm 
newsletter.
    (ii) Criterion 2. Sales or production, or both, of the workers' 
firm has decreased during the 1-year period prior to the petition date.
    (A) Information regarding sales or production may be collected 
from:
    (1) Questionnaires;
    (2) Public records; and
    (3) Other reliable sources.
    (B) Analysis of sales or production data must generally consist of 
a comparison of sales or production data on the petition date to sales 
or production data on the date that is 1 year prior to the petition 
date.
    (iii) Criterion 3. Imports of the article or service have increased 
during the 1-year period prior to the petition date.
    (A) Information regarding imports may be collected from:
    (1) Questionnaires issued to the workers' firm or customer(s);
    (2) Public records; and
    (3) Other reliable sources.
    (B) Analysis of the workers' firm import activity must generally 
consist of a comparison of the workers' firm import data on the 
petition date to the workers' firm import data on the date that is 1 
year prior to the petition date.
    (C) Analysis of customer import activity must generally consist of 
a comparison of the aggregate of customer import data on the petition 
date to the aggregate of customer import data on the date that is 1 
year prior to the petition date.
    (iv) Criterion 4. Increased imports have contributed importantly to 
worker separations, or threat of separation, and the decline in sales 
or production at the workers' firm.
    (A) Analysis of the impact of increased imports on worker 
separations and declines in sales or production at the workers' firm 
must generally consist of determining:
    (1) Whether there are one or more events, or factors, that lessen 
or sever the causal nexus between the increase in imports and worker 
separations or threat of separation, and the decline in sales and 
production at the workers' firm;
    (2) What percentage of the workers' firm sales or production 
declines was attributable to the firm's increased imports;
    (3) What percentage of the workers' firm customer(s) sales or 
production declines was attributable to the firm's increased imports; 
and
    (4) Whether there are other events or factors that mitigate or 
amplify the impact of increased imports on the workers' firm.
    (B) The impact may be determined using a quantitative or 
qualitative analysis.
    (b) Shift. (1) This paragraph (b) includes criteria for 
certification of a worker group based on a shift:
    (i) In production of like or directly competitive articles by the 
workers' firm to another country; or
    (ii) In the supply of like or directly competitive services by the 
workers' firm to another country.
    (2) After a review of relevant information necessary to make a 
determination, the certifying officer must certify a group of workers 
as eligible to apply for TAA Program benefits and services as impacted 
by a shift in production or supply of service if all of the criteria in 
paragraphs (b)(2)(i) through (iii) of this section of are met.
    (i) Criterion 1. A significant number or proportion of the workers' 
firm, or appropriate subdivision thereof, have been totally or 
partially separated, or threatened with separation, during the 1-year 
period prior to the petition date.
    (A) Information regarding separations may be obtained from:
    (1) A questionnaire;
    (2) State workforce agencies;
    (3) Unions;
    (4) Displaced workers;
    (5) Public records; and
    (6) Other reliable sources.
    (B) Analysis of separation data must generally consist of a:
    (1) Comparison of employment on the petition date to employment on 
the date that is 1 year prior to the petition date;
    (2) Review of employment activity during the 1-year period prior to 
the petition date; and
    (3) Review of evidence provided by the workers' firm regarding 
actual and threatened separations that occur, or are scheduled to 
occur, after the petition date.
    (C) Evidence of threat of separation includes, but is not limited 
to:
    (1) A WARN letter;
    (2) A separation schedule;
    (3) Information provided to the public, such as a news release or 
notice on the workers' firm website;

[[Page 60233]]

    (4) Information provided to the worker group; or
    (5) Internal firm documents, including memoranda or a firm 
newsletter.
    (ii) Criterion 2. There has been a shift in the production or 
supply of services by the workers' firm to a foreign country.
    (A) Information regarding shift activity may be collected from:
    (1) A questionnaire;
    (2) Public records; and
    (3) Other reliable sources.
    (B) Analysis of shift activity must generally consist of a:
    (1) Comparison of shift data on the petition date to shift data on 
the date that is 1 year prior to the petition date;
    (2) Review of shift activity during the 1-year period prior to the 
petition date; and
    (3) Review of evidence provided by the workers' firm regarding 
shift activity scheduled to occur after the petition date.
    (C) Evidence of future planned shift activity must include more 
than a stated intent to shift activity to a foreign country and 
includes, but is not limited to, a reassignment of production or 
service supply; a reassignment of discrete aspects or stages of 
production or service supply; securing a facility in a foreign country; 
shipping resources to a foreign country; or acquiring personnel in a 
foreign country.
    (iii) Criterion 3. The shift to a foreign country has contributed 
importantly to worker separations or threat of separation.
    (A) Analysis of impact of shift activity on worker separations must 
generally consist of determining:
    (1) Whether there are one or more events or factors that sever or 
lessen the causal nexus between the shift activity and worker 
separations or threat of separation;
    (2) What percentage of the workers' firm sales or production 
declines was attributable to the firm's shift activity;
    (3) Whether operations at the workers' firm domestic facility or 
facilities decreased at the same or at a greater rate than operations 
at the foreign facility or facilities; and
    (4) Whether there are other events or factors that mitigate or 
amplify the impact of shift activity on the workers' firm.
    (B) The impact may be determined using a quantitative or 
qualitative analysis.
    (c) Foreign acquisition. This paragraph (c) includes criteria for 
certification of a worker group based on a foreign acquisition of like 
or directly competitive articles by the workers' firm from another 
country. After review of relevant information necessary to make a 
determination, the certifying officer must certify a group of workers 
as eligible to apply for TAA Program benefits and services as impacted 
by a foreign acquisition of articles or services if all of the criteria 
in paragraphs (c)(1) through (3) of this section are met.
    (1) Criterion 1. A significant number or proportion of the workers' 
firm, or appropriate subdivision thereof, have been totally or 
partially separated, or threatened with separation, during the 1-year 
period prior to the petition date.
    (i) Information regarding separations may be obtained from:
    (A) A questionnaire;
    (B) State workforce agencies;
    (C) Unions;
    (D) Displaced workers;
    (E) Public records; and
    (F) Other reliable sources.
    (ii) Analysis of separation data must generally consist of a:
    (A) Comparison of employment on the petition date to employment on 
the date that is 1 year prior to the petition date;
    (B) Review of employment activity during the 1-year period prior to 
the petition date; and
    (C) Review of evidence provided by the workers' firm regarding 
actual and threatened separations that occur, or are scheduled to 
occur, after the petition date.
    (iii) Evidence of threat of separation includes, but is not limited 
to:
    (A) A WARN letter;
    (B) A separation schedule;
    (C) Information provided to the public, such as a news release or 
notice on the workers' firm website;
    (D) Information provided to the worker group; or
    (E) Internal firm documents, including memoranda or a firm 
newsletter.
    (2) Criterion 2. There has been an acquisition of articles or 
supply of services by the workers' firm from an entity in a foreign 
country.
    (i) Information regarding separations may be obtained from:
    (A) A questionnaire;
    (B) State workforce agencies;
    (C) Unions;
    (D) Displaced workers;
    (E) Public records; and
    (F) Other reliable sources.
    (ii) Analysis of acquisition data must generally consist of a:
    (A) Comparison of acquisition data on the petition date to 
acquisition data on the date that is 1 year prior to the petition date;
    (B) Review of acquisition data during the 1-year period prior to 
the petition date; and
    (C) Review of evidence provided by the workers' firm regarding 
acquisition activity scheduled to occur after the petition date.
    (iii) Evidence of future planned acquisitions requires more than a 
stated intent to procure production of an article or supply of services 
from an entity in a foreign country and may include, but is not limited 
to, entering into a contract with a licensee; reassignment of 
production or service supply to a contractor or licensee; and a 
reassignment of discrete aspects or stages of production or service 
supply to a contractor or licensee.
    (3) Criterion 3. The acquisition from a foreign country has 
contributed importantly to worker separations or threat of separation.
    (i) Analysis of impact of acquisition data on worker separations 
must generally consist of determining:
    (A) Whether there are one or more events or factors that lessen or 
sever the causal nexus between the acquisition activity and worker 
separations or threat of separation;
    (B) What percentage of the workers' firm sales or production 
declines was attributable to the firm's acquisition activity;
    (C) Whether operations at the workers' firm domestic facility or 
facilities decreased at the same or at a greater rate than contractor 
or licensee operations in the foreign country; and
    (D) Whether there are other events or factors that mitigate or 
amplify the impact of acquisition activity on the workers' firm.
    (ii) The impact may be determined using a quantitative or 
qualitative analysis.
    (d) Supplier of component parts or services. This paragraph (d) 
contains criteria for certification of a worker group as a supplier to 
a worker group. After review of relevant information necessary to make 
a determination, the certifying officer must certify a worker group as 
eligible to apply for TAA Program benefits and services as a supplier 
to a worker group if all of the criteria in paragraphs (d)(1) through 
(5) of this section are met.
    (1) Criterion 1. A significant number or proportion of the workers' 
firm, or appropriate subdivision thereof, have been totally or 
partially separated, or threatened with separation, during the 1-year 
period prior to the petition date.
    (i) Information regarding separations may be obtained from:
    (A) A questionnaire;
    (B) State workforce agencies;
    (C) Unions;
    (D) Displaced workers;
    (E) Public records; and
    (F) Other reliable sources.
    (ii) Analysis of separation data must generally consist of a:

[[Page 60234]]

    (A) Comparison of employment on the petition date to employment on 
the date that is 1 year prior to the petition date;
    (B) Review of employment activity during the 1-year period prior to 
the petition date; and
    (C) Review of evidence provided by the workers' firm regarding 
actual and threatened separations that occur, or are scheduled to 
occur, after the petition date.
    (iii) Evidence of threat of separation includes, but is not limited 
to:
    (A) A WARN letter;
    (B) A separation schedule;
    (C) Information provided to the public, such as a news release or 
notice on the workers' firm website;
    (D) Information provided to the worker group; or
    (E) Internal firm documents, including memoranda or a firm 
newsletter.
    (2) Criterion 2. The certification of the worker group employed by 
the firm to which the workers' firm supplied component parts or 
services has not expired by the petition date.
    (3) Criterion 3. The workers' firm conducted business with the firm 
identified in paragraph (d)(2) of this section during the 1-year period 
prior to the petition date.
    (4) Criterion 4. The certification identified in paragraph (d)(2) 
of this section was based on an article or service related to the 
component part produced or service supplied by the workers' firm.
    (5) Criterion 5. The component parts supplied to the firm 
identified in paragraph (d)(2) of this section, represented at least 20 
percent of the supplier's production or sales during the 1-year period 
prior to the petition date, or loss of business with the firm 
identified in paragraph (d)(2) of this section, during the 1-year 
period prior to the petition date, contributed importantly to 
separations or threat of separation at the workers' firm.
    (e) Downstream producer. After review of relevant information 
necessary to make a determination, the certifying officer must certify 
a worker group as eligible to apply for TAA Program benefits and 
services as a downstream producer if all of the criteria in paragraphs 
(e)(1) through (5) of this section are met.
    (1) Criterion 1. A significant number or proportion of the workers' 
firm, or appropriate subdivision thereof, have been totally or 
partially separated, or threatened with separation, during the 1-year 
period prior to the petition date.
    (i) Information regarding separations may be obtained from a 
questionnaire, State workforce agencies, unions, displaced workers, 
public records, and other reliable sources.
    (ii) Analysis of separation data must generally consist of a:
    (A) Comparison of employment on the petition date to employment on 
the date that is 1 year prior to the petition date;
    (B) Review of employment activity during the 1-year period prior to 
the petition date; and
    (C) Review of evidence provided by the workers' firm regarding 
actual and threatened separations that occur, or are scheduled to 
occur, after the petition date.
    (iii) Evidence of threat of separation includes, but is not limited 
to:
    (A) A WARN letter;
    (B) A separation schedule;
    (C) Information provided to the public, such as a news release or 
notice on the workers' firm website;
    (D) Information provided to the worker group; or
    (E) Internal firm documents, including memoranda or a firm 
newsletter.
    (2) Criterion 2. The certification of the worker group employed by 
the firm to which the workers' firm provided value-added production 
processes or services has not expired by the petition date.
    (3) Criterion 3. The workers' firm conducted business with the firm 
identified in paragraph (e)(2) of this section during the 1-year period 
prior to the petition date.
    (4) Criterion 4. The certification identified in paragraph (e)(2) 
of this section was based on an article or service related to the 
value-added production processes or services supplied by the workers' 
firm.
    (5) Criterion 5. Loss of business with the firm identified in 
paragraph (e)(2) of this section during the 1-year period prior to the 
petition date contributed importantly to separations or threat of 
separation at the workers' firm.
    (f) ITC determinations. After review of relevant information 
necessary to make a determination, the certifying officer must certify 
a worker group as eligible to apply for TAA based on a determination 
issued by the ITC if all of the criteria in paragraphs (f)(1) through 
(3) of this section are met.
    (1) Criterion 1. The ITC has publicly identified the workers' firm, 
by name, as a member of a domestic industry in an investigation 
resulting in:
    (i) An affirmative determination of serious injury or threat 
thereof under sec. 202(b)(1) of the Act (19 U.S.C. 2252(b)(1));
    (ii) An affirmative determination of market disruption or threat 
thereof under sec. 421(b)(1) of the Act (19 U.S.C. 2451(b)(1)); or
    (iii) An affirmative final determination of material injury or 
threat thereof under sec. 705(b)(1)(A) or 735(b)(1)(A) of the Tariff 
Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)).
    (2) Criterion 2. The petition is filed during the 1-year period 
beginning on the date on which:
    (i) A summary of the report submitted to the President by the ITC 
under sec. 202(f)(1) of the Act with respect to the affirmative 
determination described in paragraph (f)(1)(i) of this section is 
published in the Federal Register under sec. 202(f)(3) of the Act; or
    (ii) Notice of an affirmative determination described in paragraph 
(f)(1)(ii) or (iii) of this section is published in the Federal 
Register.
    (3) Criterion 3. The workers have become totally or partially 
separated from the workers' firm within:
    (i) The 1-year period described in paragraph (f)(2) of this 
section; or
    (ii) The 1-year period preceding the 1-year period described in 
paragraph (f)(2) of this section.
    (g) Sales or production decline criteria. For paragraphs (a) 
through (c) of this section, in assessing sales or production decline 
for the period 1 year prior to the petition date, the Department will 
use a comparison of the latest 2 full calendar year periods and will 
use a comparison of the year to date period (from the year the petition 
was filed) to the same year to date period from the prior year. This 
paragraph (g) does not apply to determining whether a significant 
number of workers have been separated or threatened with separation.
    (h) Oil and gas. For workers employed by firms engaged in 
exploration or drilling for crude oil and natural gas:
    (1) Any firm, or appropriate subdivision of a firm, that engages in 
exploration or drilling for oil or natural gas must be considered to be 
a firm producing oil or natural gas;
    (2) Any firm, or appropriate subdivision of a firm, that engages in 
exploration or drilling for oil or natural gas, or otherwise produces 
oil or natural gas, must be considered to be producing articles 
directly competitive with imports of oil and with imports of natural 
gas; and
    (3) The Department may conduct a parallel investigation to 
determine whether the group of workers meets the criteria for 
certification of worker groups under this section for the services 
provided by the group of workers. The Department will render a 
determination after all appropriate avenues are considered.

[[Page 60235]]

    (i) Staffed workers. The Department considers staffed workers to be 
members of a worker group even if they are not specifically mentioned 
within the determination document issued under Sec.  618.235. The 
Department will collect information from the workers' firm during the 
investigation to establish which leasing or staffing entity or entities 
the firm used under a contract. Once identified, an evaluation of 
operational control will occur. If a certification is rendered, the 
Department will notify States regarding the appropriate contact 
information of the known leasing or staffing entity or entities in 
order to expedite worker notification of their eligibility to apply 
individually for TAA Program benefits and services. Factors to be 
considered in evaluating operational control include:
    (1) Whether the contract workers perform only tasks that are 
independent, discrete projects for the workers' firm (as opposed to 
performing tasks that are part of the regular business operations of 
the firm);
    (2) Whether the workers' firm has the discretion to hire, fire, and 
discipline the contract workers;
    (3) Whether the workers' firm has the ability to terminate the 
contract workers' employment with such firm through the staffing or 
leasing contracted firm;
    (4) Whether the workers' firm exercises the authority to supervise 
the contract workers' daily work activities, including assigning and 
managing work, and determining how, where, and when the work of 
contract worker takes place (e.g., factors such as the hours of work, 
the selection of work, and the manner in which the work is to be 
performed by each contract worker are relevant);
    (5) Whether the services of the contract workers are offered on the 
open market;
    (6) Whether the contract workers work exclusively for the workers' 
firm;
    (7) Whether the workers' firm is responsible for establishing wage 
rates and the payment of salaries of the contract workers;
    (8) Whether the workers' firm provides skills training to the 
contract workers; and
    (9) Whether there are other facts indicating that the workers' firm 
exercises control over the contract workers.
    (j) Teleworkers. The Department considers teleworkers (also known 
as remote, or home-based workers) to be members of a worker group even 
if they are not specifically mentioned within the determination 
document issued under Sec.  618.235 when they would be a part of the 
worker group if they worked on-site. Teleworkers do not have to be 
physically based at the location of the subject firm or in the same 
city or same State of the location that is identified on the 
determination document to be members of the certified worker group.
    (k) Successor-in-interest. The Department considers workers 
employed by a firm that is a successor-in-interest to be members of a 
worker group even if they are not mentioned specifically within the 
determination document issued under Sec.  618.235.


Sec.  618.230  Evidence.

    (a) The Department will verify information obtained during an 
investigation before considering such information in support of a 
petition.
    (b) Evidence may be accepted from such sources including, but not 
limited to, petitioners, company officials, current and former workers 
of the firm, customers of the firm, trade associations, union 
representatives, Federal agencies, and public sources such as State 
agencies and academic institutions.
    (c) The Department may share affidavits, testimonials, news 
articles, and other types of information proffered in support of a 
petition with appropriate parties for verification.


Sec.  618.235  Determinations.

    Based on the findings of the investigation as set forth in Sec.  
618.230, a certifying officer will make a determination on a petition 
as provided under paragraph (a) or (b) of this section.
    (a) Affirmative determination or certification. When the 
investigation establishes that a group of workers meets the eligibility 
criteria of Sec.  618.225, the certifying officer will issue a 
certification of worker group eligibility to apply for TAA Program 
benefits and services. The certification will include the name of the 
firm or appropriate subdivision thereof at which the trade-affected 
workers covered by the certification have been employed (which need not 
be limited to the unit specified in the petition), and may identify the 
worker group by name, as described in Sec.  618.225(i) and (j), the 
certification period, and the certification date.
    (1) A certification covers any worker in the worker group eligible 
to apply for assistance under sec. 222(a) and (b) of the Act, whose 
last total or partial separation, or threat of a separation, from a 
firm or appropriate subdivision took place within the certification 
period, which is the period:
    (i) Following the impact date, which is the date 1 year before the 
petition date; and
    (ii) On or before the day the certification expires, which is 2 
years after the certification date, or an earlier date on which the 
certifying officer determines that separations from adversely affected 
employment may no longer be attributed to the conditions underlying the 
certification, as described in Sec.  618.240, or the date identified in 
an amendment described in Sec.  618.250.
    (2) A certification covers any worker in the worker group eligible 
to apply for TAA Program benefits and services under sec. 222(e) whose 
last total or partial separation from a firm took place within the 
certification period, which is the period:
    (i) Following the impact date, which is the date 1 year before the 
ITC publication in the Federal Register; and
    (ii) On or before the day the certification expires, which is the 
date 1 year from the ITC publication in the Federal Register.
    (3) A trade-affected worker who is a member of the worker group 
covered by the certification may apply to the State for benefits and 
services under subparts C through G of this part.
    (b) Negative determination or denial. When the investigation 
establishes that the group of workers does not meet the criteria for 
eligibility, as described in Sec.  618.225, the certifying officer will 
issue a denial. The denial will include the name of the firm or 
appropriate subdivision thereof at which the workers covered by the 
denial have been employed (which need not be limited to the unit 
specified in the petition), and may identify the worker group by name, 
as described in Sec.  618.225(i) and (j).
    (c) Determination. The certifying official prepares a determination 
identifying the article(s) produced or service(s) provided and 
describing the worker group covered by the certification or denial and 
stating the reasons for the determination (excluding information 
designated as confidential business information). The Department will 
provide a copy of the determination to the petitioner(s) and to the 
State(s) covered by the determination. The Department will publish in 
the Federal Register, and on the Department's website, a summary of the 
determination issued under paragraph (a) or (b) of this section, along 
with a general statement of the reasons for the determination (except 
for confidential business information).
    (d) Amended determination. The Department may amend a certification

[[Page 60236]]

to limit or expand the eligible worker group or other elements of the 
certification. The Department also may, without an outside request for 
redetermination, reconsider a denial. An amended determination will not 
take effect until the previous determination becomes final, either 
after the period in which to request reconsideration has lapsed or 
after the Department makes a determination on reconsideration. Amended 
certifications are discussed in more detail in Sec.  618.250.


Sec.  618.240  Termination of certification.

    (a) Initiation. Whenever the Administrator of the Office of Trade 
Adjustment Assistance has reason to believe, with respect to any 
nonexpired certification, that the total or partial separations or 
threat of separation from a firm, or appropriate subdivision thereof, 
are no longer attributable to the conditions specified in sec. 222 of 
the Act and Sec.  618.225, the Administrator must promptly conduct an 
investigation.
    (1) Certifications, as described in Sec.  618.235(a)(1)(ii), will 
include a standard date of termination, also called expiration date, 
which is 2 years from the date of certification, unless otherwise 
designated through an earlier termination under this section.
    (2) Certifications for firms identified by the ITC, as described in 
Sec.  618.225(f), will include a standard date of termination, also 
called expiration date, which is 1 year from the date the determination 
is published in the Federal Register.
    (b) Notice. A notice of the initiation of an investigation to 
terminate a certification must be published in the Federal Register, 
and on the Department's website, and provided to the petitioner(s) of 
the certification under investigation, the firm official(s), and 
State(s) that contain the location(s) of the workers comprising the 
worker group covered by the certification. The State(s) must also 
promptly notify the workers in the worker group.
    (c) Opportunity for comment. Within 10 calendar days after 
publication of the notice under paragraph (b) of this section, members 
of the worker group or any other person who has a substantial interest 
in the matter may provide evidence in writing supporting the 
continuation of eligibility of certification to show why the 
certification should not be terminated. If a hearing is requested, it 
will be conducted in accordance with Sec.  618.215. If no evidence is 
provided by any interested party within 10 days from the date of 
publication to the Federal Register or on the Department's website, 
whichever is later, a determination must be issued once the 
investigation is complete. Evidence (except at a timely requested 
hearing) and hearing requests submitted outside the 10-day period will 
not be accepted.
    (d) Investigation of termination of a certification. The Department 
will conduct a review of the record on which the certification was 
based, any evidence timely filed under paragraph (c) of this section, 
and any data submitted with the petition or provided subsequent to the 
filing of the petition. The period of investigation of termination of a 
certification will remain the same as the period of investigation for 
the original certification.
    (e) Determination to terminate or partially terminate a 
certification. A determination to terminate a certification may cover 
the entire worker group specified in the certification or a portion of 
that group. Such termination or partial termination must apply only 
with respect to total or partial separations occurring after the 
termination date specified in the determination notice and must only 
take effect after the determination becomes final, either after the 
period in which to request reconsideration has lapsed or after a 
determination on reconsideration is made.
    (1) Upon making a determination that the certification should be 
terminated for all or part of the worker group specified in the 
certification, the Department will issue a determination, either a 
Notice of Total Termination of Certification or a Notice of Partial 
Termination of Certification, which will contain the reasons for making 
such determination (redacting confidential business information) and 
notify the petitioner(s) of the original certification, the firm 
official(s), and the State(s). The Department will also publish the 
notice in the Federal Register, and on the Department's website. The 
State will notify the worker group of the termination or partial 
termination.
    (2) The termination date specified in the determination notice must 
not be earlier than the date of publication in the Federal Register.
    (f) Determination of continuation of certification. After an 
investigation resulting in a decision that the certification should not 
be terminated, the Department will notify the petitioner(s) of the 
original certification, firm official(s), and the State(s). The 
State(s) will notify the worker group of the determination of 
continuation of certification. The Department will publish (redacting 
confidential business information) the determination as a Notice of 
Continuation of Certification in the Federal Register and on the 
Department's website. After receiving notice by the Department, the 
State(s) must notify the worker group of the continuation of 
certification.
    (g) Reconsideration of termination or partial termination of a 
certification. Any party that is eligible under Sec.  618.225 to submit 
a petition may file an application for reconsideration with the 
Department, following the procedures described in Sec.  618.245.


Sec.  618.245  Reconsideration of termination of an investigation, 
denial, or termination or partial termination of certification.

    (a) Application for reconsideration; contents. (1) Any party who is 
eligible to file a petition under Sec.  618.205, and any worker in the 
group of workers, may file a written application seeking 
reconsideration of a termination of an investigation under Sec.  
618.210(e); a negative determination issued under Sec.  618.235(b); or 
a termination or partial termination of certification issued under 
Sec.  618.240, via email: [email protected]; fax: (202) 693-
3584 or (202) 693-3585; or mail: U.S. Department of Labor, Employment 
and Training Administration, Office of Trade Adjustment Assistance, 200 
Constitution Avenue NW, Washington, DC 20210.
    (2) An application for reconsideration must contain the following 
information to be complete and valid:
    (i) The name(s) and contact information of the applicant(s);
    (ii) The name or a description of the group of workers on whose 
behalf the application for reconsideration is filed in the case of an 
application for reconsideration of a termination of an investigation or 
a negative determination, or the name or a description of the worker 
group on whose behalf the application for reconsideration of a 
termination or partial termination of a certification is filed;
    (iii) The petition number identified on the petition or 
determination that is the subject of the application for 
reconsideration;
    (iv) The reasons for believing that the termination of the 
investigation, negative determination, or termination or partial 
termination of a certification identified in paragraph (a)(1) of this 
section is erroneous, including any issues that the applicant asserts 
require further investigation;
    (v) Any information that may support the application for 
reconsideration, including material not considered prior to the 
termination of the investigation, negative determination, or 
termination

[[Page 60237]]

or partial termination of a certification; and
    (viii) The signature(s) of the party, or representative thereof, 
requesting reconsideration.
    (b) Time for filing. An application for reconsideration of the 
termination of the investigation, negative determination, or 
termination or partial termination of a certification must be filed no 
later than 30 calendar days after the notice of the termination of the 
investigation, negative determination, or termination or partial 
termination of a certification has been published in the Federal 
Register. If an application is filed after that time, it will be 
returned as untimely filed.
    (c) Return of incomplete applications for reconsideration. The 
Department will review an application for reconsideration within 2 
business days upon its receipt to determine if the application contains 
all of the necessary information required under paragraph (a)(2) of 
this section. The Department will not accept an incomplete application 
for filing, but will return it to the applicant with a brief statement 
explaining why it is incomplete. Should an applicant wish to refile an 
application for reconsideration, the refiling must occur no later than 
30 calendar days after the notice of the determination has been 
published in the Federal Register, within the 30-day period identified 
in paragraph (b) of this section or, if the application is returned 
less than 5 days before the end of that period, within 5 days of 
receipt.
    (d) Notice of an application for reconsideration. After receipt of 
a complete and timely application for reconsideration, the Department 
will notify the applicant and publish in the Federal Register and on 
the Department's website the notice of the application and the 
initiation of an investigation on reconsideration of the termination of 
the investigation, negative determination, or termination or partial 
termination of a certification.
    (e) Opportunity for comment and submission of data on 
reconsideration. Within 10 calendar days after publication of a notice 
under paragraph (d) of this section, any party who is eligible to file 
a petition under Sec.  618.205 may make written submissions to show why 
the determination under reconsideration should or should not be 
modified.
    (f) Investigation on reconsideration. The Department will conduct a 
review of the record on which the termination of the investigation, 
negative determination, or termination or partial termination of a 
certification was based, any comments timely filed under paragraph 
(a)(2)(iv), (a)(2)(v), or (e) of this section, and any data submitted 
with the original petition or provided subsequent to the filing of the 
petition. The period of investigation under reconsideration will remain 
the same as the period of investigation for the original petition.
    (g) Determinations on reconsideration. The Department will issue a 
final determination affirming, reversing, or modifying the termination 
of the investigation, negative determination, or termination or partial 
termination of a certification within 60 days after the date of 
receiving a complete and valid application for reconsideration. The 
Department will notify the applicant(s), the petitioner(s) of the 
original petition, firm official(s), and the State(s); and publish 
notice in the Federal Register of the determination on reconsideration 
and the reasons for it (redacting confidential business information). 
The State continues to be responsible for notifying trade-affected 
workers in a certified worker group of their eligibility to apply for 
TAA, in accordance with Sec.  618.820. If 60 days pass without a 
determination on reconsideration, the Department will contact the 
applicant to ascertain whether the applicant wishes the Department to 
continue the reconsideration investigation and issue a determination on 
reconsideration or wishes the Department to terminate the 
reconsideration investigation, which renders the initial determination 
as the Department's final determination.


Sec.  618.250  Amendments of certifications.

    (a) Types of amendments. A certifying officer may amend a 
certification, as appropriate, to include all workers of the applicable 
firm who were identified as adversely affected by foreign trade. 
Amendments must not extend the impact date more than 1 year prior to 
the petition date unless there is a statutory exception, as described 
in Sec.  618.235(a)(1)(iii)(A). Reasons for amendments include, but are 
not limited to:
    (1) Identifying an ownership change affecting the applicable firm;
    (2) Correcting technical errors; or
    (3) Clarifying the identification of the worker group.
    (b) Petition filing. Amendments must be requested through the 
regular petition process described in Sec.  618.205.
    (c) Notification of amendment. The Department will publish the 
amended certification in the Federal Register and on the Department's 
website. The Department will also notify the affected States and the 
State must notify any additional certified trade-affected workers, as 
required by Sec.  618.820.


Sec.  618.255  Judicial review of determinations.

    (a) General. A worker, group of workers, certified or recognized 
union, or authorized representative of such worker or group may 
commence a civil action for review of the determination by filing a 
complaint with the United States Court of International Trade (USCIT) 
within 60 days after the date of publication of the notice of a final 
determination in the Federal Register, as provided under sec. 284 of 
the Act (19 U.S.C. 2395).
    (b) Final determination. Only determinations issued under 
Sec. Sec.  618.240(g) and 618.245 are final determinations for purposes 
of judicial review.
    (c) Certified record of the Department. Upon receiving a copy of 
the summons and complaint from the clerk of the USCIT, the Department 
will file with the court a certified record meeting the requirements of 
the rules of the USCIT. When the certified record contains confidential 
business information, the Department will file a public version of the 
record redacting the confidential business information, and a separate 
version that includes the confidential business information, in 
accordance with the rules of the USCIT.
    (d) Further proceedings. Upon remand by the USCIT, the Department 
will conduct an additional investigation and the certifying officer 
will make new or modified findings of fact and will modify or affirm 
the previous determination. Upon making this subsequent determination, 
the certifying officer will publish a summary of the determination and 
the reasons for the determination in the Federal Register, redacting 
any confidential business information from the published summary. The 
certifying officer also will file the determination upon remand and the 
record on which the determination is based with the USCIT, in 
accordance with the rules of USCIT.
    (e) Standard of review. The determination and findings of fact by 
the certifying officer are conclusive if the USCIT determines that they 
are supported by substantial evidence, as provided under sec. 284 of 
the Act (19 U.S.C. 2395).
    (f) Individual benefits denials. Appeals of denials of individual 
benefits are not determinations under sec. 222 of the Act and are not 
subject to review by the USCIT under sec. 284 of the Act.

[[Page 60238]]

    (g) Manner of filing. Requests for judicial review must be filed in 
accordance with the rules of the USCIT.


Sec.  618.260  Study regarding certain affirmative determinations by 
the Commission.

    (a) Upon notification from the Commission that it has begun an 
investigation under sec. 202 of the Act with respect to an industry, 
the Department must immediately begin a study of:
    (1) The number of workers in the domestic industry producing the 
like or directly competitive article who have been or are likely to be 
certified as eligible for adjustment assistance, which includes, but is 
not limited to, analysis of:
    (i) The estimated number of certified workers within the domestic 
industry named in the ITC affirmative determination;
    (ii) Information obtained during the investigation of TAA Program 
determinations;
    (iii) Responses from Domestic Industry Study;
    (iv) Information obtained by consultation with ITC Commission 
industry experts; and
    (v) Other pertinent workforce and trade-impact data of companies 
who are currently participating in the industry.
    (2) The extent to which the adjustment of such workers to the 
import competition may be facilitated through the use of the TAA 
Program, other Departmental programs and resources, and programs 
administered by other Federal agencies.
    (b) The report of the Department's study under paragraph (a) of 
this section must be made to the President not later than 15 days after 
the day on which the Commission makes its report under sec. 202(f)(1) 
of the Act. The Department will also publish the report in the Federal 
Register and on the Department's website.


Sec.  618.265  Availability of information to the public.

    (a) Information available to the public. The Department posts all 
determinations on the Department's website. The Department also posts 
redacted versions of all petitions on the Department's website. Upon 
request to the Administrator of the Office of Trade Adjustment 
Assistance, members of the public may inspect petitions and other 
documents filed with the Administrator, transcripts of testimony taken 
and exhibits submitted at public hearings held under the provisions of 
this subpart, public notices concerning trade-affected worker 
assistance under the Act and other reports and documents issued for 
general distribution, in accordance with the Department's record 
retention schedule, FOIA, and the Privacy Act.
    (b) Information not available to the public. Confidential business 
information must not be made available to the public.

Subpart C--Employment and Case Management Services


Sec.  618.300  Scope.

    This subpart describes the employment and case management services 
that the State must make available to trade-affected workers, either 
directly through the TAA Program or through arrangements with partner 
programs. This subpart requires States, under the Governor-Secretary 
Agreement at Sec.  618.804, to integrate the provision of benefits and 
services available to trade-affected workers under the TAA Program with 
the delivery of employment services and other assistance provided 
through the one-stop delivery system (established under title I of 
WIOA), as required by secs. 235 and 239(a), (e), and (g) of the Act. It 
also implements the requirements of sec. 221(a)(2)(A) of the Act for 
the provision of rapid response assistance and appropriate career 
services described in Sec. Sec.  682.300 through 682.370, and 680.150 
of this chapter, respectively, for workers upon receipt of a petition 
filed covering a group of workers.


Sec.  618.305  The Trade Adjustment Assistance Program as a one-stop 
partner.

    (a) As provided by WIOA sec. 121(b)(1)(B)(vii), the TAA Program is 
a required one-stop partner under WIOA.
    (b) The State must ensure that the TAA Program complies with WIOA's 
one-stop partnership requirements at WIOA sec. 121(b)(1)(A)(i) through 
(v). This includes, among the other requirements, paying infrastructure 
costs where the TAA Program is being carried out.
    (c) The TAA Program must also comply with, and be a party to, the 
memorandum of understanding required under the regulations implementing 
WIOA at Sec.  678.500 of this chapter, where the TAA Program is being 
carried out.


Sec.  618.310  Responsibilities for the delivery of employment and case 
management services.

    (a) The State is responsible for providing information to workers 
about the TAA Program, as required in Sec.  618.820;
    (b) As part of the delivery of services, the State must:
    (1) Conduct intake, which includes interviewing each trade-affected 
worker and reviewing suitable training opportunities reasonably 
available to each worker under subpart F of this part;
    (2) Inform trade-affected workers of the employment services and 
allowances available under the Act and this part, including the 
application procedures, the filing requirements for such services, and 
enrollment deadlines for receiving TRA, as described in subpart G of 
this part;
    (3) Determine whether suitable employment, as defined in Sec.  
618.110, is available, and assist in job search activities related to 
securing suitable employment;
    (4) Accept applications for training;
    (5) Provide information on which training providers offer training 
programs at a reasonable cost and with a reasonable expectation of 
employment following the completion of such training, and assist in 
acquiring such training;
    (6) Monitor the progress and attendance of trade-affected workers 
in approved training programs;
    (7) Develop and implement a procedure for determining whether to 
issue a training waiver and to review waivers to determine whether the 
conditions under which they were issued have changed, in compliance 
with subpart G of this part;
    (8) Provide access to workshops and other resources related to job 
search strategies, resume building, interviewing, and other topics 
available through the TAA Program or through the one-stop delivery 
system; and
    (9) Coordinate the administration and delivery of additional 
appropriate employment services, benefits, training, supportive 
services, and supplemental assistance for workers with partner programs 
for which the trade-affected worker may be eligible.
    (c) The State must make available the employment and case 
management services in paragraphs (c)(1) through (7) of this section to 
trade-affected workers under a certification of eligibility to apply 
for TAA Program benefits and services, and that those workers are 
informed of the availability of:
    (1) Comprehensive and specialized assessment of skill levels and 
service needs, including through:
    (i) Diagnostic testing and use of other assessment tools; and
    (ii) In-depth interviewing and evaluation to identify employment 
barriers and appropriate employment goals.

[[Page 60239]]

    (2) Development of an individual employment plan (IEP) to identify 
employment goals and objectives, and appropriate training to achieve 
those goals and objectives.
    (3) Information on how to apply for financial aid, including 
referring workers to educational opportunity centers described in sec. 
402F of the Higher Education Act of 1965, as amended (HEA) (20 U.S.C. 
1070a-16), where applicable, and notifying workers that they may 
request that financial aid administrators at institutions of higher 
education (as defined in sec. 102 of HEA (20 U.S.C. 1002)) use the 
administrators' discretion under sec. 479A of HEA (20 U.S.C. 1087tt) to 
use current-year income data, rather than preceding-year income data, 
for determining the amount of the workers' need for Federal financial 
assistance under title IV of HEA (20 U.S.C. 1070 et seq.).
    (4) Short-term prevocational services, including development of 
learning skills, communications skills, interviewing skills, 
punctuality, personal maintenance skills, and professional conduct to 
prepare trade-affected workers for employment or training.
    (5) Individual and group career counseling, including job search 
and placement counseling, during the period in which the worker is 
receiving a trade adjustment allowance or training under this chapter, 
and after receiving such training for purposes of job placement and 
employment retention.
    (6) Provision of employment statistics information, including the 
provision of accurate information relating to local, regional, and 
national labor market areas, including:
    (i) Job-vacancy listings in such labor market areas;
    (ii) Information on the job skills necessary to obtain the jobs 
identified in the job-vacancy listings described in paragraph (c)(6)(i) 
of this section;
    (iii) Information relating to local occupations that are in demand 
and the earning potential of those occupations; and
    (iv) Skills requirements for local occupations described in 
paragraph (c)(6)(iii) of this section.
    (7) Information relating to the availability of supportive 
services, available through partner programs, including services 
relating to childcare, transportation, dependent care, housing 
assistance, and needs related payments that are necessary to enable a 
trade-affected worker to participate in training.
    (d) To make available, with respect to the employment and case 
management services described in paragraph (c) of this section, means:
    (1) That the State must inform the trade-affected worker of the 
full suite of services available; and
    (2) That the State must offer and provide appropriate services to 
the trade-affected worker, as requested by the worker or deemed 
appropriate for the worker; and
    (3) That the State must document each service provided to the 
trade-affected worker and document the reason any service listed in 
paragraph (c) of this section was not provided. The documentation must 
be included in the worker's case file, either through case notes or as 
a stand-alone document.


Sec.  618.325  Integrated service strategies and Workforce Innovation 
and Opportunity Act co-enrollment.

    (a)(1) A State must co-enroll trade-affected workers who are 
eligible for WIOA's dislocated worker program. Workers may choose to 
decline co-enrollment in WIOA. A State cannot deny such a worker 
benefits or services under the TAA Program solely for declining co-
enrollment in WIOA.
    (2) A State must also make co-enrollment available to trade-
affected workers who are eligible for other one-stop partner programs 
to ensure that all necessary and appropriate services, including 
supportive services, are available to the worker.
    (b)(1) Trade-affected worker dislocated worker eligibility. Most 
trade-affected workers meet the eligibility criteria of a dislocated 
worker defined at WIOA sec. 3(15).
    (2) Partially separated worker and AAIW dislocated worker 
eligibility. In certain circumstances, such as a general announcement 
of a closure, partially separated workers and AAIWs may meet the 
eligibility criteria as a dislocated worker under WIOA and must also be 
co-enrolled.
    (3) Trade-affected worker dislocated worker ineligibility. Some 
trade-affected workers are ineligible for the WIOA dislocated worker 
program, including those that do not meet the Selective Service 
registration requirement, and will be exempt from the co-enrollment 
requirement in this section.


Sec.  618.330  Assessment of trade-affected workers.

    (a) The assessment process forms the basis for determining which 
TAA Program benefits and services, including training, are most 
appropriate to enable trade-affected workers to successfully become 
reemployed.
    (b) The State must schedule an initial assessment that provides 
sufficient time and information for the trade-affected worker to 
consider, request, and enroll in training or obtain a waiver of the 
training requirement in Sec.  618.720(g) to protect their eligibility 
to receive TRA under subpart G of this part.
    (c) Assessments are administered with the cooperation of the trade-
affected worker and should include discussion of the worker's 
interests, skills, aptitudes, and abilities.
    (d) The results of assessments must be documented in the case file, 
either through case notes or as a stand-alone document.
    (e) If an assessment has already been administered by a partner 
program, it must be reviewed once a worker becomes a trade-affected 
worker to ensure it has the required components as listed in Sec.  
618.335 for an initial assessment and, if necessary, Sec.  618.345 for 
a comprehensive and specialized assessment. If the assessment(s) does 
not contain the required components, the assessment(s) must be 
supplemented by the State, in conjunction with the trade-affected 
worker, to ensure it is fully compliant with TAA Program requirements 
in this part.
    (f) The State must make the trade-affected worker aware of the 
advantages of receiving an assessment(s). However, a worker may refuse 
an assessment. Since portions of the assessment(s) are necessary to 
determine eligibility for certain TAA Program benefits, a worker's 
refusal to provide necessary information, either as part of the 
assessment or outside of the assessment process, may result in a denial 
of a those benefits. This is detailed further in the applicable benefit 
sections throughout this part.


Sec.  618.335  Initial assessment of trade-affected workers.

    (a) A State must carry out an initial assessment for each trade-
affected worker as part of the intake process described in sec. 239(g) 
of the Act. When applicable, a State must use the results of an 
assessment developed by a partner program, supplemented if necessary, 
as described in Sec.  618.330(e).
    (b) The results of the initial assessment will determine the best 
service strategy to assist the trade-affected worker in obtaining 
reemployment and provide insight into which benefits and services under 
the TAA Program and partner programs would be most beneficial to the 
worker. The initial assessment of the availability of suitable 
employment to the worker in the local labor market must take into 
consideration the following factors:
    (1) Prevailing local labor market conditions, including the

[[Page 60240]]

unemployment rate, local employer skill demands and hiring 
prerequisites;
    (2) The worker's knowledge, skills, and abilities from their 
education and previous employment;
    (3) Transferable skills that the worker may possess that would be 
of interest to other local employers;
    (4) Evaluation of a worker's skill levels (including literacy, 
numeracy, and English language proficiency), aptitudes, abilities 
(including skills gaps), and supportive service needs; and
    (5) Any barriers to the worker's reemployment, such as:
    (i) Lack of applicability of skills from the worker's present 
occupation to other occupations;
    (ii) Skills that are in excess supply in the labor market area; or
    (iii) Other barriers as outlined in WIOA sec. 3(24).
    (c) Based upon the information gathered in the initial assessment, 
described in paragraph (a) of this section, the State may:
    (1) Determine that suitable employment is available to the trade-
affected worker, and if so, the State must make available employment 
and case management services. If the worker disagrees with the 
determination, the State must make available to the worker a 
comprehensive and specialized assessment (under Sec.  618.345) to 
obtain additional information to determine whether the initial 
assessment was correct.
    (2) Determine that no suitable employment is available to the 
worker and, if so, the State must make available services as described 
in Sec.  618.310 (responsibilities for the delivery of employment and 
case management services) and a comprehensive and specialized 
assessment (as described in Sec.  618.345) to develop a comprehensive 
service strategy for the trade-affected worker.
    (d) If the State determines under paragraph (c) of this section 
that suitable employment is not available to a trade-affected worker, 
even with additional employment and case management services, the State 
must advise the worker to apply for training under subpart F of this 
part.


Sec.  618.345  Comprehensive and specialized assessment of trade-
affected workers.

    (a) The State must make available a comprehensive and specialized 
assessment to all trade-affected workers.
    (b) The comprehensive and specialized assessment must take into 
account the trade-affected worker's goals and interests as they relate 
to employment opportunities either in the worker's commuting area or, 
where there is no reasonable expectation of securing employment in 
their commuting area and the worker is interested in relocation, the 
employment opportunities and demand in the area to which they propose 
to relocate.
    (c) The comprehensive and specialized assessment must expand upon 
the initial assessment regarding the trade-affected worker's interests, 
skills, aptitudes, and abilities. This may include use of diagnostic 
testing tools and instruments and in-depth interviewing and evaluation 
to identify barriers to employment and appropriate employment goals. 
The in-depth interviewing of trade-affected workers must include 
discussion of training opportunities reasonably available to each 
trade-affected worker, as described in subpart F of this part; 
reviewing the opportunities with each trade-affected worker; and 
informing each trade-affected worker of the requirements for 
participating in training, including the enrollment deadlines required 
for TRA eligibility.
    (d) The State may use information from the comprehensive and 
specialized assessment to determine whether the trade-affected worker 
has met the six criteria for approval of training listed in subpart F 
of this part.


Sec.  618.350  Individual employment plans for trade-affected workers.

    (a) A State must:
    (1) Make available an IEP; and
    (2) Document an IEP for any trade-affected worker seeking training 
under subpart F of this part or a job search allowance under subpart D 
of this part, before the worker receives those benefits and services.
    (b) An IEP must use the results of the initial and, if available, 
comprehensive and specialized assessments to assist in documenting a 
strategy to provide the trade-affected worker with the services needed 
to obtain employment, including the items listed in paragraph (c) of 
this section.
    (c) An IEP must document:
    (1) The trade-affected worker's employment goal, including the 
targeted occupation and industry;
    (2) The type of training proposed, if any;
    (3) Any services that will be needed by the worker to obtain 
suitable employment, including career services, supportive services 
provided through partner programs, and post-training case management 
services; and
    (4) If applicable, any supplemental assistance (subsistence or 
transportation payments) required for participation in training and the 
basis for their calculation.
    (d) If an IEP has been previously developed with a trade-affected 
worker by a partner program, it must be reviewed once the worker 
becomes TAA Program-eligible to ensure it has the components required 
by paragraph (c) of this section. If the IEP does not contain the 
components, the IEP must be supplemented by the State in conjunction 
with the worker to ensure it is fully compliant with the TAA Program 
requirements in this part.
    (e) The State must monitor the progress of the trade-affected 
worker in meeting the worker's responsibilities as listed in the IEP, 
including attendance and achievement in approved training programs.
    (f)(1) The State must modify the IEP as necessary to facilitate a 
successful performance outcome for the trade-affected worker.
    (2) The modification must be done with the worker's input.
    (3) At a minimum, the IEP must be modified when there is a change 
in the training program, receipt of supplemental assistance, or both.
    (g) The State must make the trade-affected worker aware of the 
advantages of receiving an IEP. However, a worker may refuse to 
complete an IEP. Since portions of the IEP are necessary to determine 
eligibility for job search allowances under subpart D of this part and 
training under subpart F of this part, a worker's refusal to provide 
necessary information, either as part of the IEP or outside of the IEP 
process, may result in a denial of a those benefits and services. This 
is detailed further in subparts D and F of this part.


Sec.  618.355  Knowledge, skills, and abilities of staff performing 
assessments.

    (a) Staff performing either the initial or comprehensive and 
specialized assessment must possess the following knowledge and 
abilities:
    (1) Knowledge of the local labor market;
    (2) Knowledge of local employer and occupation skill demands and 
hiring prerequisites, such as educational requirements and professional 
certifications;
    (3) The ability to identify transferable skills that a trade-
affected worker may possess that would be of interest to other local 
employers outside of the worker's present occupational area;
    (4) The ability to evaluate quickly a worker's ability to conduct a 
self-directed job search; and
    (5) The ability to identify barriers to a worker's employment that 
could be overcome with training and case management services.

[[Page 60241]]

    (b) The staff performing these initial and comprehensive and 
specialized assessments may be from any partner program.
    (c) Funds under sec. 235A(1) of the Act may be used to improve and 
maintain the knowledge and abilities of staff conducting assessments 
for trade-affected workers.


Sec.  618.360  Employment and case management services for trade-
affected workers in training.

    The State must make employment and case management services 
available, including placement and other appropriate employment and 
case management services (including referrals to supportive services 
and follow-up services available through partner programs), to trade-
affected workers during training, and upon completion of training, and 
for AAWs on a waiver from training.

Subpart D--Job Search and Relocation Allowances


Sec.  618.400  Scope.

    This subpart sets forth the conditions under which an AAW may apply 
for and receive a job search allowance to help the worker secure 
suitable employment outside the commuting area but within the United 
States. This subpart also sets forth the conditions under which an AAW 
may apply for and receive a relocation allowance to help the worker 
relocate to suitable employment secured outside the commuting area but 
within the United States.


Sec.  618.405  General.

    (a) A State must grant a job search allowance to an AAW to help the 
worker secure suitable employment within the United States if the AAW 
meets the requirements in this subpart.
    (b) A State must grant a relocation allowance to an AAW to help the 
worker and the worker's family relocate within the United States if the 
AAW meets the requirements in this subpart. A State may grant a 
relocation allowance to a worker only once under a certification. A 
State may grant a relocation allowance to only one member of a family 
for the same relocation, even if there are multiple AAWs in the same 
family. If more than one member of a family applies for a relocation 
allowance for the same relocation, then the State must pay the 
allowance to the AAW who files first, if that AAW is otherwise 
eligible.


Sec.  618.410  Applying for a job search allowance.

    (a) Forms. To receive a job search allowance, an AAW must apply to 
the State, using the State's process.
    (b) Submittal. An AAW who has a total or partial separation may 
apply to the State for a job search allowance after the Department has 
issued a certification covering the worker. The worker must apply for a 
job search allowance before beginning a job search to be funded by such 
an allowance, and the State must not approve the job search allowance 
until the State has determined that the worker is covered by a 
certification.


Sec.  618.415  Eligibility for a job search allowance.

    (a) Conditions. To be eligible for a job search allowance an AAW 
must:
    (1) File an application before either:
    (i) The later of the 365th day after either the date of the 
certification under which they are covered, or the 365th day after 
their last total separation; or
    (ii) The 182nd day after the date of concluding approved training;
    (2) Be an AAW totally separated from the job covered under the 
certification when beginning the job search;
    (3) Receive a determination by the State that the AAW cannot 
reasonably expect to secure suitable employment in the commuting area, 
can reasonably expect to obtain either suitable employment or 
employment that pays a wage of at least the 75th percentile of national 
wages, as determined by the National Occupational Employment Wage 
Estimates, and otherwise meets the suitable employment requirements in 
the area of the job search;
    (4) Receive a determination by the State that the worker cannot 
reasonably expect to secure suitable employment by alternatives to 
being physically present in the area of the job search, such as by 
searching and interviewing for employment by means of the internet and 
other technology;
    (5) Not previously have received a relocation allowance under the 
same certification; and
    (6) Complete a State-approved job search within 30 calendar days 
after the worker leaves the commuting area to begin the job search.
    (b) Completion of job search. (1) An AAW has completed a job search 
when the worker either:
    (i) Obtains a bona fide offer of employment; or
    (ii) Has, with State verification, as provided in Sec.  
618.420(a)(2), contacted each employer the worker planned to contact, 
or to whom the State or other one-stop partner referred the worker as 
part of the job search.
    (2) The job search is complete when one of the actions in paragraph 
(b)(1) of this section occurs, whichever comes first. For purposes of 
paragraph (b)(1)(i) of this section, ``bona fide'' means the offer of 
suitable employment is made in good faith by a prospective employer.


Sec.  618.420  Findings required.

    (a) Findings by liable State. Before a liable State may approve 
final payment of a job search allowance, the liable State must:
    (1) Find that the AAW meets the eligibility requirements for a job 
search allowance specified in Sec.  618.415(a)(1) through (6); and
    (2) Verify that the worker contacted each employer the State 
certified or to whom the State or one-stop center referred the worker 
as part of the job search and must find that the worker completed the 
job search, as described in Sec.  618.415(b) within the time limits 
stated in Sec.  618.415(a)(6).
    (b) Assistance by agent State. (1) When an AAW files an application 
for a job search allowance to conduct a job search in an agent State, 
the agent State in which the worker conducts the job search is 
responsible for assisting the worker in conducting the job search, for 
assisting the liable State by furnishing any information required for 
the liable State's determination of the claim, and for paying the job 
search allowance.
    (2) The agent State must cooperate fully with the liable State in 
carrying out its activities and functions with regard to such 
applications. When requested by the liable State, the agent State must 
verify with the employer and report to the liable State whether the 
worker has obtained suitable employment, or a bona fide offer of 
suitable employment.


Sec.  618.425  Amount of a job search allowance.

    (a) Computation. The job search allowance is 90 percent of the 
total costs of an AAW's travel (as defined in paragraph (a)(1) of this 
section) and lodging and meals (as defined in paragraph (a)(2) of this 
section), up to the limit in paragraph (b) of this section:
    (1) Travel. The worker's allowable travel expenses may not exceed 
90 percent of the prevailing cost per mile by privately owned vehicle 
under 41 CFR chapters 300 through 304, the Federal Travel Regulation 
(FTR), found at https://www.gsa.gov/, for round trip travel by the 
usual route from the worker's home to the job search area, though other 
forms of transportation may be utilized.

[[Page 60242]]

    (2) Lodging and meals. The worker's allowable lodging and meals 
costs cannot exceed the lesser of:
    (i) The actual cost for lodging and meals while engaged in the job 
search; or
    (ii) 50 percent of the prevailing per diem allowance under the FTR, 
found at https://www.gsa.gov/, for the worker's job search area.
    (b) Limit. The AAW's total job search allowance under a 
certification may not exceed $1,250, no matter how many job searches 
they undertake. If the worker is entitled to be paid or reimbursed by 
another source for any of these travel, lodging, and meals expenses, 
the State must reduce the job search allowance by the amount of the 
reimbursement.
    (c) Choice of mode of transportation. With respect to the limits 
established in paragraph (a)(1) of this section, an AAW may elect to 
use a different mode of transportation than the one for which the State 
calculated the applicable reimbursement amount. However, the State must 
limit the reimbursement to the worker to the amount calculated under 
paragraph (a)(1) of this section.


Sec.  618.430  Determination and payment of a job search allowance.

    (a) Determinations. The State must promptly make and record 
determinations necessary to assure an AAW's eligibility for a job 
search allowance. Sections 618.820 (determinations and notice) and 
618.828 (appeals and hearings) apply to these determinations. States 
must include copies of such applications and all determinations by the 
State in the AAW's case file.
    (b) Payment. If the AAW makes a timely application, is covered 
under a certification, and is otherwise eligible, the State must make 
payment promptly after the worker has completed a job search and 
complied with paragraph (d) of this section, provided that funds are 
available for job search allowances.
    (c) Advances. Once the State determines that the AAW is eligible 
for a job search allowance, it may advance the worker up to 60 percent 
of the estimated amount of the job search allowance subject to the 
limit in Sec.  618.425(b), but not exceeding $750, within 5 days before 
the commencement of a job search. The State must deduct the advance 
from any payment under paragraph (b) of this section.
    (d) Worker evidence. Once the AAW has completed a job search, they 
must certify to the State as to the employer contacts made and must 
provide documentation of expenses in accordance with FTR and Uniform 
Guidance at 2 CFR part 200, which may include receipts for all lodging, 
purchased transportation, or other expenses. The State must make an 
adjustment if the amount advanced is less or more than the amount to 
which the worker is eligible under this section.


Sec.  618.435  Job search program participation.

    (a) Requirements. An AAW who participates in an approved job search 
program (JSP), may receive reimbursement for necessary expenses of 
subsistence and transportation incurred for the worker's participation 
in the approved JSP, regardless of the worker's approval for, or 
receipt of, a job search allowance under Sec. Sec.  618.420 and 
618.430.
    (b) Approved JSP. A State may approve a JSP if:
    (1) The JSP is provided through WIOA, the public employment 
service, or any other Federal- or State-funded program, and meets the 
definition provided in Sec.  618.110; or
    (2) The JSP is sponsored by the firm from which the AAW has been 
separated.
    (c) JSP allowances. Subsistence and transportation costs, whether 
inside or outside the AAW's commuting area, must be approved for 
workers participating in JSPs in accordance with Sec.  618.640(a) and 
within available State funding levels.


Sec.  618.440  Applying for a relocation allowance.

    (a) Forms. To receive a relocation allowance, an AAW must apply to 
the State using the State's process.
    (b) Submittal. An AAW who has a total or partial separation may 
apply for a relocation allowance after the Department has issued a 
certification covering the worker. The worker must apply for a 
relocation allowance and the State must approve the worker for a 
relocation allowance before the relocation begins. The State must make 
a timely determination on a relocation application submitted to allow 
the worker to promptly begin the relocation.


Sec.  618.445  Eligibility for a relocation allowance.

    (a) Conditions. To be eligible for a relocation allowance, the AAW 
must:
    (1) File an application before either:
    (i) The later of the 425th day after the date of the certification 
under which the worker is covered, or the 425th day after the date of 
the worker's last total separation; or
    (ii) The 182nd day after the date the worker concluded training;
    (2) Be an AAW totally separated from adversely affected employment 
when the relocation begins;
    (3) Not have already received a relocation allowance under the same 
certification;
    (4) Relocate within the United States but outside the worker's 
commuting area;
    (5) Receive a determination by the State that the worker has no 
reasonable expectation of securing suitable employment in the commuting 
area, and has obtained either suitable employment or employment that 
pays a wage of at least the 75th percentile of national wages, as 
determined by the National Occupational Employment Wage Estimates, and 
otherwise meets the suitable employment requirements, or a bona fide 
offer of such employment, in the area of intended relocation;
    (6) Begin the relocation as promptly as possible after the date of 
certification but no later than:
    (i) 182 days after the worker filed the application for a 
relocation allowance; or
    (ii) 182 days after the conclusion of an approved training program, 
if the worker entered a training program that received supplemental 
assistance approved under Sec.  618.640(c) (subsistence payments) and 
(d) (transportation payments), for training outside the worker's 
commuting area; and
    (7) Complete the relocation, as described in Sec.  618.460(f), 
within a reasonable time as determined in accordance with FTR with the 
State giving consideration to, among other factors, whether:
    (i) Suitable housing is available in the area of relocation;
    (ii) The worker can dispose of the worker's residence;
    (iii) The worker or a family member is ill; and
    (iv) A member of the family is attending school, and when the 
family can best transfer the member to a school in the area of 
relocation.
    (b) Job search allowances. The State may not approve a relocation 
allowance and a job search allowance for an AAW at the same time. 
However, if the worker has received a job search allowance, they may 
receive a relocation allowance at a later time or receive a relocation 
allowance as a result of a successful job search for which the worker 
received a job search allowance.


Sec.  618.450  Findings required.

    (a) Findings by liable State. Before the liable State may approve 
final payment of a relocation allowance, the liable State must make the 
following findings:
    (1) That the AAW meets the eligibility requirements for a 
relocation allowance specified in Sec.  618.445(a)(1) through (7)

[[Page 60243]]

and is not also simultaneously receiving a job search allowance as 
specified in Sec.  618.445(b);
    (2) That the worker submitted the application for a relocation 
allowance within the time limits specified in Sec.  618.440(c);
    (3) That the worker began and completed the relocation within the 
time limitations specified in Sec.  618.445(a)(6) and (7); and
    (4) That the worker obtained suitable employment, or a bona fide 
offer of such suitable employment, in the area of intended relocation, 
in accordance with Sec.  618.445(a)(5). The liable State must verify 
(directly or through the agent State) the suitable employment, or the 
bona fide offer, with the employer.
    (b) Assistance by agent State. (1) When an AAW relocates to an 
agent State, the agent State is responsible for:
    (i) Assisting the worker in relocating to the State, completing an 
application for a relocation allowance with the liable State, and 
paying the relocation allowance; and
    (ii) Assisting the liable State by furnishing any information 
required for the liable State's determination on the claim.
    (2) The agent State must cooperate with the liable State in 
carrying out its activities and functions with regard to relocation 
applications. When requested by the liable State, the agent State must 
verify with the employer and report to the liable State whether the 
worker has obtained suitable employment, or a bona fide offer of 
suitable employment.


Sec.  618.455  Determining the amount of a relocation allowance.

    The AAW's relocation allowance includes the information in 
paragraphs (a) thorugh (c) of this section, as applicable:
    (a) Reimbursement--(1) Travel. (i) The State may reimburse the AAW 
for up to 90 percent of the prevailing cost per mile by privately owned 
vehicle under the FTR, found at https://www.gsa.gov/, for travel from 
their old home to their new home.
    (ii) Separate travel of a family member or members who, for good 
cause and with the approval of the State, must travel separately to 
their new home, may also be reimbursed. For purposes of this paragraph 
(a)(1)(ii), good cause includes, but is not limited to, reasons such as 
a family member's health, schooling, job, or economic circumstances.
    (2) Lodging and meals. The State may reimburse the worker for 90 
percent of lodging and meal expenses for the worker and their family 
while they are in transit, but such costs may not exceed the lesser of:
    (i) The actual lodging and meals cost to the worker and their 
family while they are traveling; or
    (ii) 50 percent of the prevailing per diem allowance under the FTR, 
found at https://www.gsa.gov/, for the relocation area for those days 
while the worker and their family are traveling.
    (3) Movement of household goods. (i) The State may reimburse the 
worker for 90 percent of the allowable costs of moving the workers and 
family's household goods and personal effects in accordance with the 
FTR (41 CFR chapter 302). This includes 90 percent of the costs of 
moving by the most economical commercial carrier the State can 
reasonably expect the worker to use, moving by rental truck or trailer 
(for rental, mileage, and fuel), or moving a house trailer or mobile 
home. It also includes 90 percent of the costs of temporary storage of 
household goods for up to 60 days. In approving the move of a house 
trailer or mobile home, the State must follow the specific requirements 
of the FTR, found at https://www.gsa.gov.
    (ii) For a commercial carrier move of household goods or house 
trailer or mobile home, the worker must obtain an estimate of the 
moving cost and provide this to the liable State. The estimate may 
include the cost of insuring such goods and effects for their actual 
value or $40,000 as delineated in the FTR, whichever is less, against 
loss or damage in transit.
    (iii) If more economical, the State may make direct arrangements 
for moving and insuring a worker's household goods and personal effects 
with a carrier and insurer selected by the worker and may make payment 
of 90 percent of moving and insurance costs directly to the carrier and 
insurer. No such arrangement releases a carrier from liability 
otherwise provided by law or contract for loss or damage to the 
worker's goods and effects. Any contract for moving and insuring an 
AAW's household goods must provide that the United States must not be 
or become liable to either party for personal injury or property loss 
damage under any circumstances.
    (iv) The maximum net weight of the household goods relocated from 
the worker's old home to the relocation area may not exceed that set by 
the FTR.
    (4) Lump sum. As part of the relocation allowance, the worker will 
receive a lump sum equivalent to three times their average weekly wage, 
not to exceed $1,250.
    (b) Reduction. If the AAW is eligible to receive or has received 
moving expenses from any other source for the same relocation, the 
State must deduct the amount received from the amount of the relocation 
allowance as determined in paragraphs (a)(1) through (3) of this 
section.
    (c) Limitation. In no case may the State pay a travel allowance for 
the AAW or a family member more than once for a single relocation.


Sec.  618.460  Determinations and payment of a relocation allowance.

    (a) Determinations. The State must promptly make and record 
determinations necessary to assure an AAW's eligibility for a 
relocation allowance. Sections 618.820 (determinations and notice) and 
618.828 (appeals and hearings) apply to these determinations. The State 
must include copies of such applications and all determinations by the 
State in the AAW's case file.
    (b) Payment. If the AAW makes a timely application, is covered 
under a certification, and is otherwise eligible, the State must make 
payment as promptly as possible.
    (c) Travel allowances--(1) Payment. The State must pay the 
allowances computed under Sec.  618.455 10 days in advance of, or at 
the time of, the AAW's scheduled departure to begin relocation. The 
State must make the payment for a family member approved for separate 
travel 10 days in advance of, or at the time of that family member's 
scheduled departure.
    (2) Worker evidence. After an AAW completes the relocation, they 
must certify to the State the expenses associated with the relocation, 
in accordance with the FTR and Uniform Guidance in 2 CFR part 200. This 
may include receipts for all lodging, purchased transportation, or 
other expenses. If an advance the worker received was more or less than 
the actual allowance, the State must make an appropriate adjustment and 
pay the balance entitled, if any, or the worker must repay any excess 
received, if any.
    (d) Movement of household goods. The State must pay the amount 
equal to 90 percent of the estimate of the costs of moving the AAW's 
household goods by the most economical commercial carrier the State can 
reasonably expect the worker to use (as described in Sec.  
618.455(a)(3) (determining the amount of a relocation allowance) as 
follows:
    (1) Commercial carrier. If a commercial carrier moves the worker's 
household goods and personal effects, the State must provide the worker 
with an advance equal to 90 percent of the estimated cost of the move, 
including any other charges that the State has

[[Page 60244]]

approved, such as insurance. The State must advance the funds to the 
carrier and insurer and deliver payment to the worker 10 days in 
advance of, or at the time of, the scheduled shipment.
    (i) On completion of the move, as determined under paragraph (f) of 
this section, the worker must promptly submit to the State a copy of 
the carrier's bill of lading, including a receipt showing payment of 
moving costs.
    (ii) If the amount the worker received as an advance is greater 
than 90 percent of the actual approved moving costs, they must 
reimburse the State for the difference. If the advance the worker 
received is less than 90 percent of the actual moving costs approved by 
the State, the State must reimburse the worker for the difference.
    (iii) If more economical, the State may make direct arrangements 
for moving and insuring a worker's household goods and personal effects 
with a carrier and insurer selected by the worker and may make payment 
of 90 percent of moving and insurance costs directly to the carrier and 
insurer subject to the condition of Sec.  618.455(a)(3)(iii).
    (2) Private truck and trailer, rental truck or trailer, or house 
trailer move--(i) Private vehicle with trailer. If the move is by 
private vehicle and trailer, the State must advance 90 percent of the 
estimated cost for the use of the private vehicle within 10 days in 
advance of the scheduled move.
    (ii) Truck and trailer rental. If the move is by rental truck or 
rental trailer, the State must advance 90 percent of the estimated 
rental cost within 10 days in advance of the scheduled move. The State 
may make payment to either the worker or the rental company.
    (iii) House trailer. If a house trailer or mobile home is moved by 
commercial carrier, the State must advance 90 percent of the approved 
estimated cost to the worker within 10 days in advance of the scheduled 
move. The State may make payment to either the worker or the carrier.
    (iv) Itemized receipt. Upon completion of the move, the worker must 
promptly submit an itemized receipt to the State for payment of the 
rental charges and fuel costs. If the amount the worker received as an 
advance is greater than 90 percent of the actual moving costs, they 
must reimburse the State for the difference. If the advance the worker 
received is less than 90 percent of the actual moving costs approved by 
the State, the State must pay the worker for the difference.
    (3) Temporary storage. If temporary storage, not to exceed 60 days, 
of household goods and personal effects is necessary for the 
relocation, then the State must advance 90 percent of the approved 
estimated cost within 10 days in advance of the scheduled move. The 
State may make payment to either the worker or the rental agency.
    (e) Lump sum allowance. The State must pay the lump sum allowance 
provided in Sec.  618.455(a)(4) when arrangements for the relocation 
are finalized, but not more than 10 days before the earlier of the 
AAW's anticipated departure from their old home, or the anticipated 
date of shipment of the worker's household goods and personal effects.
    (f) Relocation completed. An AAW completes a relocation when the 
worker and family, if any, along with household goods and personal 
effects are delivered to the new residence in the area of relocation or 
to temporary storage. If the worker moves no household goods and 
personal effects, then a worker completes relocation when the worker 
and family, if any, arrive in the area of relocation and establish a 
residence in the new area. When a family member is approved for 
separate travel, the later arrival of such family member does not alter 
the date on which the State must consider the relocation completed.

Subpart E--Reemployment Trade Adjustment Assistance


Sec.  618.500  Scope.

    This subpart provides the rules for RTAA. RTAA, authorized under 
sec. 246 of the Act, provides 50 percent of the difference between the 
wages received by the AAW at the time of separation from adversely 
affected employment and the wages received by the worker from 
reemployment for workers aged 50 and older who meet the eligibility 
criteria described in this subpart. This subpart identifies the 
eligibility criteria and the benefits available to AAWs who are 
eligible for RTAA.


Sec.  618.505  Individual eligibility.

    (a) Eligibility criteria. An AAW from a worker group certified 
under Sec.  618.225 may elect to receive RTAA benefits if the AAW:
    (1) Is at least 50 years of age;
    (2) Earns not more than $50,000 in reemployment wages each calendar 
year during the eligibility period, excluding overtime pay, as further 
defined in Sec.  618.520(a);
    (3) Earns less than the AAW's annualized wages at separation, as 
further defined in Sec.  618.520(a);
    (4)(i) Is employed on a full-time basis as defined by the law of 
the State in which the worker is employed and is not enrolled in any 
training program approved under subpart F of this part; or
    (ii) Is employed at least 20 hours per week and is enrolled in a 
TAA approved training program; and
    (5) Is not employed at the firm, as further defined in paragraph 
(b) of this section, from which the worker was separated.
    (b) Eligibility-relevant definitions. For purposes of RTAA, the 
following definitions apply:
    (1) Firm. The State must determine on a case-by-case basis what 
constitutes the ``firm'' for purposes of determining RTAA eligibility 
based on the certification. If the Department issues the certification 
under subpart B of this part for a worker group in an appropriate 
subdivision of a firm, an AAW in that group is not eligible for RTAA 
upon a return to employment within that subdivision, but may be 
eligible for RTAA upon a return to employment at another subdivision of 
the firm. If, however, the Department issues the certification for a 
worker group composed of all workers from the firm rather than from a 
subdivision, then the worker is not eligible for RTAA based on a return 
to employment in any subdivision of that firm.
    (2) Successor-in-interest. The State must determine if the firm now 
employing the AAW is the same firm as the one from which the AAW was 
separated.
    (i) In making its determination, the State should first review the 
certification under which the worker was covered, look for any 
amendments to the certification, and compare the name and address of 
the firm in the certification to the name and address of the firm in 
which the worker has found reemployment. If they are the same, this is, 
in most cases, dispositive: the firms are the same and the worker is 
not eligible for RTAA.
    (ii) If, despite the information gathered under paragraph (b)(2)(i) 
of this section, it nonetheless remains unclear whether the firms are 
the same, the State may need to obtain further information about the 
firm reemploying the worker, from the employer and otherwise, to make 
that determination. To do so, the State should determine whether the 
firm at which the worker found reemployment is a ``successor-in-
interest'' to the firm from which the worker was separated. If the 
reemploying firm merged with, acquired, or purchased the assets of the 
firm from which the worker was separated, then the reemploying firm is 
a successor-in-interest.

[[Page 60245]]

    (iii) If the reemploying firm does not meet the criteria in 
paragraph (b)(2)(ii) of this section, or if that information is 
unavailable, then the State should consider the factors identified in 
paragraphs (b)(3)(i) through (vii) of this section to determine whether 
the reemploying firm is a successor-in-interest. If the State 
determines that the worker returned to employment with a successor-in-
interest to the firm from which the worker was separated, then the 
worker is not eligible for RTAA. The State must make the determination 
based on the individual application of the worker. A firm, together 
with any predecessor or successor-in-interest, or together with any 
affiliated firm controlled or substantially owned by substantially the 
same persons, is considered a single firm. If the State determines that 
the reemployment is with a successor-in-interest the State also must 
seek to identify any additional members of the worker group and notify 
them of their potential eligibility under the TAA Program, as provided 
in Sec.  618.816(e).
    (3) Successor-in-interest factors. A State may consider a firm a 
successor-in-interest to another firm, if a majority of the following 
factors are present:
    (i) There is continuity in business operations.
    (ii) There is continuity in location.
    (iii) There is continuity in the workforce.
    (iv) There is continuity in supervisory personnel.
    (v) The same jobs exist under similar conditions.
    (vi) There is continuity in machinery, equipment, and process.
    (vii) There is continuity in product/service.
    (c) Full-time employment. For purposes of RTAA, full-time 
employment is defined per State law in which the reemployment occurs.
    (1) If there is no State law addressing the definition of full-time 
employment referenced under paragraph (a)(4)(i) of this section, the 
State must issue a definition of full-time employment for RTAA 
purposes.
    (2) The State must verify reemployment and do so in accordance with 
State policies.
    (3) Where an AAW seeks to establish RTAA eligibility based upon 
more than one job, the State must combine employment hours in order to 
determine whether the worker has the number of hours needed to qualify 
for RTAA.
    (4) If the AAW is employed in more than one State, the State must 
determine full-time employment for the entire duration of the AAW's 
RTAA eligibility under a single certification under the law of the 
State in which the AAW has the lowest threshold of hours required to 
meet the definition of full-time employment.
    (d) Relevance of UI eligibility. UI eligibility is not a 
requirement for RTAA eligibility.
    (e) Eligible employment. (1) Employment for purposes of paragraph 
(a)(4) of this section must be covered employment under State law; 
however, employment may not include activity that is unlawful under 
Federal, State, or local law.
    (2) Work involving wages plus commission or piece work may be 
considered qualifying employment for the purpose of establishing RTAA 
eligibility, if it otherwise meets the criteria in paragraph (e)(1) of 
this section.
    (3) For purposes of meeting the requirements of paragraphs 
(a)(4)(i) and (ii) of this section, employment may include one or more 
jobs unless, in the case of paragraph (a)(4)(i) of this section, the 
law of the State in which the AAW is employed provides otherwise.
    (4) A State must count hours in which an AAW is on employer-
authorized leave as hours of work for purposes of meeting the 
requirements of paragraphs (a)(4)(i) and (ii) of this section unless, 
in the case of paragraph (a)(4)(i) of this section, the law of the 
State in which the worker is employed provides otherwise.


Sec.  618.510  Eligibility period for payments of Reemployment Trade 
Adjustment Assistance and application deadline.

    (a) Adversely affected worker who has not received TRA. (1) In the 
case of an AAW who has not received TRA, the worker may receive 
benefits as described in Sec.  618.520(a) for a period not to exceed 
104 weeks beginning on the earlier of:
    (i) The date on which the worker exhausts all rights to UI based on 
the separation of the worker from the adversely affected employment 
that is the basis of the certification; or
    (ii) The date on which the worker first begins qualifying 
reemployment as described in Sec.  618.505(e).
    (2) Where a worker has more than one separation from adversely 
affected employment, the relevant separation for determining the date 
on which the ``worker exhausts all rights to UI'' referenced in 
paragraph (a)(1)(i) of this section is the worker's last separation 
from adversely affected employment that qualifies the worker as an AAW. 
The Department uses the last separation because that separation is the 
one that triggers the worker's application for RTAA. Accordingly, the 
State must determine the worker's last separation for lack of work from 
adversely affected employment before the RTAA application. This 
principle applies only to the determination of the eligibility period 
and does not apply to the calculation of RTAA payments, where wages at 
separation are defined as the annualized hourly rate at the time of the 
most recent separation, as explained in Sec.  618.520(a).
    (b) Adversely affected worker who has received TRA. In the case of 
an AAW who has received TRA, the worker may also receive RTAA benefits 
based on the same certification for a period of 104 weeks beginning on 
the date on which the worker first begins qualifying reemployment, 
reduced by the total number of weeks for which the worker received such 
TRA.
    (c) Applicable dates. To make the RTAA determination, the State 
will need to know the applicable dates for the AAW: The date of 
reemployment and either the date the worker exhausted all rights to UI, 
or the dates the worker began and ended receipt of TRA before the date 
of reemployment. These dates must occur within the 104-week eligibility 
period identified in the Act.
    (d) Age of AAW when obtaining RTAA-qualifying employment. An AAW 
may obtain employment before turning 50 years old and receive RTAA 
benefits after turning 50 years old, if the employment is determined to 
be RTAA-qualifying reemployment, as provided at Sec.  618.505(e), and 
the RTAA eligibility period established after obtaining such employment 
has not expired when the individual turned 50 years old.
    (e) Exception to filing deadline and eligibility periods. The 
filing deadline and eligibility periods in paragraphs (a) and (b) of 
this section do not apply where:
    (1) A negative determination on a petition filed under subpart B of 
this part has been appealed to the USCIT;
    (2) A certification of the worker group covered by that petition is 
later made; and
    (3) The delay in the certification is not attributable to the 
petitioner or the AAW.
    (f) Reasonable accommodation of filing deadline and eligibility 
periods. In the event the filing deadline and eligibility periods in 
paragraphs (a) and (b) of this section do not apply because the 
certification meets the conditions in paragraph (e) of this section, 
the filing deadline and eligibility periods for RTAA will be extended 
by the State for the period necessary to make RTAA reasonably available 
to AAWs.

[[Page 60246]]

Sec.  618.515  Continuing eligibility and timing of payments.

    (a) Continuing eligibility for RTAA. (1) Changing jobs during 
reemployment does not disqualify an otherwise eligible AAW from 
receiving subsequent RTAA payments for the remainder of the 104-week 
(2-year) eligibility period if the new reemployment meets the 
requirements of Sec.  618.505.
    (2) An AAW already receiving RTAA payments who has a period of 
unemployment will not be eligible to receive RTAA for that period. Upon 
reemployment, the AAW must notify the State. If the new reemployment 
meets the requirements of Sec.  618.505 and the worker meets all other 
eligibility requirements in this part, the AAW will be eligible to 
receive RTAA in accordance with the requirements of this section for 
the remaining portion of the 104-week (2-year) eligibility period.
    (3) If during a calendar year during the 2-year eligibility period 
an AAW's cumulative wages exceed $50,000, the AAW will no longer be 
eligible to receive additional RTAA payments within that calendar year. 
The AAW will be eligible for RTAA benefits in the next calendar year 
and RTAA payments will resume until wages exceed $50,000 or until the 
$10,000 benefit limit is reached.
    (b) Timing of RTAA payments. The State must make RTAA payments on a 
regular basis, either weekly, biweekly, or monthly, for no more than a 
104-week (2-year) period for an AAW under any one certification, 
beginning no earlier than the first day of reemployment that satisfies 
the requirements of Sec.  618.505. An AAW may receive retroactive 
payments, in a lump sum, for payments for which the AAW was eligible, 
but for which the AAW had not yet applied.
    (c) Periodic verification of employment and reemployment wages. No 
less than once a month, the State must review whether an AAW receiving 
RTAA payments continues to meet the eligibility requirements of Sec.  
618.505 and determine whether changes have occurred in the AAW's 
reemployment wages, as described in Sec.  618.520(a).
    (d) Change in reemployment wages. The State must recompute the 
appropriate amount of the RTAA payments if, during its review under 
paragraph (c) of this section, it determines that an AAW's reemployment 
wages have changed.
    (1) If reemployment wages exceed $50,000 in a calendar year during 
the eligibility period, then the State must immediately issue a 
determination that the AAW is ineligible for further RTAA payments, 
notify the AAW of this determination, and cease such RTAA payments.
    (2) If reemployment wages change but do not exceed $50,000 in a 
calendar year during the eligibility period then the RTAA payment must 
be recomputed every time such a change in reemployment wages occurs. 
The State must then continue periodic verification in accordance with 
paragraph (c) of this section, or recommence periodic verification if 
RTAA payments resume in the second calendar year after such scenario as 
described in paragraph (a)(3) of this section occurs.


Sec.  618.520  Benefits available to eligible adversely affected 
workers.

    (a) Payment. A RTAA-eligible AAW may receive a maximum of $10,000 
over a period of not more than 104 weeks (2 years). If the AAW received 
TRA, each week of TRA received reduces the total weeks of RTAA 
available by 1 week and reduces the total RTAA payment amount available 
in proportion to the reduction in the number of total weeks.
    (1) Total amount of benefits. RTAA supplements a worker's wages for 
up to 104 weeks (2 years) (reduced by the number of weeks of TRA 
received) or $10,000 (reduced in proportion to the reduction in the 
number of total weeks of TRA received), whichever occurs first, by an 
amount equal to the annualized wage differential as computed under 
paragraph (a)(2) of this section for an AAW employed full-time or 
paragraph (a)(3) of this section for an AAW employed less than full-
time.
    (2) Annualized wage differential for initial eligibility of an AAW 
employed full-time. This amount is equal to 50 percent of: The AAW's 
annualized separation wages (as computed under paragraph (a)(2)(i) of 
this section) minus the amount of the AAW's annualized reemployment 
wages (as computed under paragraph (a)(2)(ii) of this section).
    (i) Annualized separation wages are the product of the AAW's hourly 
rate during the last full week of the AAW's regular schedule in 
adversely affected employment, multiplied by the number of hours the 
AAW worked during the last full week of such employment, multiplied by 
52. The computation of annualized wages at separation excludes 
overtime, employer-paid health insurance premiums, and employer pension 
contributions, as well as bonuses, severance payments, buyouts, and 
similar payments not reflective of the AAW's weekly pay. [(hourly rate 
x hours worked) x 52]
    (ii) Annualized reemployment wages are the product of the AAW's 
hourly rate during the first full week of reemployment, multiplied by 
the number of hours the AAW worked during the first full week of such 
reemployment, multiplied by 52 [(hourly rate x hours worked) x 52]. If 
the AAW's wages from reemployment change during the eligibility period, 
then the State must recompute the AAW's annualized wages from 
reemployment at the new hourly wage and must likewise recompute the 
appropriate RTAA payment as required by Sec.  618.515(d). The 
computation of annualized wages from reemployment excludes overtime, 
employer-paid health insurance premiums, and employer pension 
contributions, as well as bonuses, severance payments, buyouts, and 
similar payments not reflective of the AAW's weekly pay.
    (3) Annualized wage differential for initial eligibility of an AAW 
employed less than full-time. This amount, for an AAW employed at least 
20 hours per week and enrolled in TAA approved training, is the 
annualized wages as computed under paragraph (a)(2) of this section 
multiplied by the ratio of the AAW's number of weekly hours of 
reemployment to the AAW's number of weekly hours of employment at the 
time of separation, but in no case more than 50 percent.
    (4) Adjustment to total amount of RTAA benefits for AAWs who 
received TRA. A State must adjust of the maximum RTAA benefit for an 
RTAA-eligible AAW who has received TRA. The RTAA-eligible AAW may 
receive up to the adjusted RTAA benefit as described in this section 
within the eligibility period as provided in Sec.  618.510(b). RTAA 
eligibility is terminated once the AAW reaches either the number of 
weeks permitted pursuant to Sec.  618.510 or the adjusted RTAA benefit. 
The adjusted RTAA benefit is calculated by subtracting the number of 
TRA paid weeks from the 104-week RTAA eligibility period to determine 
the percentage of reduced weeks that payments may be made. The maximum 
payable benefit of $10,000 is then reduced by the same percentage. Once 
the reduction in RTAA payable weeks and the reduction in the RTAA total 
payable are reduced by the same percentage, they become the new maximum 
number of payable weeks and maximum payable benefit.
    (b) Training and related services. Recipients of RTAA are eligible 
to receive training approved under subpart F of this part and 
employment and case management services under subpart C of this part.
    (c) Job search and relocation allowances. Recipients of RTAA are 
eligible to receive job search and

[[Page 60247]]

relocation allowances under subpart D of this part, subject to the 
eligibility requirements and rules of subpart D.
    (d) HCTC. Recipients of RTAA are eligible to apply for or claim the 
HCTC, if available.
    (e) TRA. Once an AAW has received a payment under RTAA, they are no 
longer eligible for TRA under the same petition. Receipt of TRA prior 
to RTAA will result in a reduction of RTAA benefits as described at 
paragraph (a)(4) of this section.


Sec.  618.525  Determinations, redeterminations, and appeals.

    (a) Determinations, redeterminations, and appeals. States must 
apply the requirements of Sec. Sec.  618.825 (covering determinations 
and notice) and 618.835 (covering hearings and appeals), respectively, 
to all determinations, redeterminations, and appeals under this 
subpart.
    (1) Before issuing a determination or redetermination, the State 
must verify and document the AAW's age, reemployment, and wages in 
determining whether the worker has met eligibility requirements of 
Sec.  618.505(a).
    (2) A determination of eligibility issued to an AAW must include a 
notice that the benefit amount will be regularly recomputed (as 
required by Sec.  618.515(d)) and will change if the eligible AAW's 
reemployment wages change.
    (3) An AAW denied individual eligibility based on a first 
reemployment may file a new application for a subsequent reemployment.
    (4) A State may approve an RTAA payment retroactively if an AAW 
becomes reemployed before the Department issues a certification under 
subpart B of this part, provided that the AAW otherwise meets the 
eligibility requirements of Sec.  618.505(a).
    (b) Recordkeeping requirements. The recordkeeping and disclosure of 
information requirements of Sec.  618.852 apply to the State's 
administration of RTAA.


Sec.  618.530  Reductions of Reemployment Trade Adjustment Assistance 
payments; priority of payments.

    (a) Ordered child support payments. State laws regarding deductions 
of payments from UI, TRA, and RTAA must comply with the Social Security 
Act (SSA). SSA sec. 303(e)(1) defines child support obligations as only 
including obligations which are being enforced pursuant to a plan 
described in sec. 454 of SSA which has been approved by the Secretary 
of Health and Human Services under part D of title IV of SSA. SSA does 
not otherwise permit deductions for alimony or for child support.
    (b) Priority of UI payments. RTAA does not fit into priority of 
payments under UI because RTAA is related to employment, not 
unemployment. UI and RTAA are two separate programs that operate 
independently of one another.

Subpart F--Training Services


Sec.  618.600  Scope.

    This subpart sets forth the conditions and procedures under which a 
trade-affected worker may apply for and receive training to help secure 
reemployment. Training provided under this subpart must, at a 
reasonable cost and as quickly as possible, assist a trade-affected 
worker in obtaining the necessary skills to have a reasonable 
expectation of reemployment. All else being equal, States should prefer 
training that replaces 100 percent or more of a trade-affected worker's 
wages in adversely affected employment or that qualifies as suitable 
employment.


Sec.  618.605  General procedures.

    (a) Assessments. The State must ensure and document that every 
trade-affected worker has an initial assessment and that a 
comprehensive and specialized assessment is made available, as 
described in subpart C of this part. If a worker refused to take an 
assessment, the information necessary to determine eligibility for 
training must be documented. If a trade-affected worker has an IEP, the 
assessment results must support the training program set out in the 
worker's IEP, as described in subpart C of this part, before an 
application for training is approved. As with assessments, if a worker 
refused to develop an IEP, the information necessary to determine 
eligibility for training must be documented.
    (b) Applications. Applications for training, including requests for 
TAA Program-funded transportation and subsistence payments, must be 
made to the State in accordance with any policies and procedures 
established by the State.
    (c) Determinations. Decisions on selection for, approval of, or 
referral of a trade-affected worker to training, including whether to 
provide TAA Program-funded transportation and subsistence payments, 
under this subpart, or a decision with respect to any specific training 
or nonselection, nonapproval, or nonreferral for any reason is a 
determination to which Sec. Sec.  618.820 (determinations and notice), 
618.824 (liable and agent State responsibilities), and 618.828 (appeals 
and hearings) apply.
    (d) Training opportunities. (1) The State must explore, identify, 
and secure training opportunities to ensure trade-affected workers 
return to employment as soon as possible. States must use all necessary 
and reasonable means to find alternatives when local training resources 
cannot adequately train trade-affected workers for reemployment. 
Training resources may be inadequate when they cannot train workers 
quickly, or at a reasonable cost, or equip workers with skills that 
meet the demands of the job market.
    (2) When available training is inadequate, TAA Program funds may be 
used to create customized, group training opportunities in response to 
a particular dislocation event. Funds may be used for trainings that 
provide intensive remedial education classes, English language 
training, or contextualized occupational training, which combines 
academic and occupational training. These group trainings must adhere 
to the principles described in Sec.  618.600.
    (3) States are required to coordinate with other public and private 
agencies, in cooperation with local workforce development boards 
(LWDBs) established under WIOA, to ensure a wide-range of training 
opportunities are available to trade-affected workers in demand 
occupations.
    (e) Timing of application and approval of training. A trade-
affected worker may apply for training and a State may approve training 
at any time after the certification date on which their worker group is 
certified under subpart B of this part, without regard to whether such 
worker has applied for or exhausted all rights to any UI to which the 
worker is entitled.


Sec.  618.610  Criteria for approval of training.

    The State must consult the trade-affected worker's assessment 
results and IEP, if available, as described respectively under 
Sec. Sec.  618.345 and 618.350, before approving an application for 
training. Training must be approved for a trade-affected worker if the 
State determines that all of the criteria in paragraphs (a) through (f) 
of this section are met:
    (a) Criterion 1. There is no suitable employment available for the 
trade-affected worker.
    (1) There is no suitable employment available for a trade-affected 
worker in either the commuting area or another area outside the 
commuting area to which the worker intends to relocate, and there is no 
reasonable prospect of

[[Page 60248]]

such suitable employment becoming available for the worker in the 
foreseeable future.
    (2) If a training program, or an application for training, is 
denied under paragraph (a)(1) of this section, the State must document 
the availability of suitable employment through traditional and real-
time labor market information including, but not limited to, 
projections data, job postings, and job vacancy surveys.
    (b) Criterion 2. The trade-affected worker would benefit from 
appropriate training.
    (1) The worker would benefit from appropriate training when 
training, skills training, or remedial education would increase the 
likelihood of obtaining employment. Appropriate training should improve 
the worker's chances of obtaining employment at higher wages than in 
the absence of training or place them on a career pathway to do so.
    (2) The worker must have the knowledge, skills, and abilities to 
undertake, make satisfactory progress in, and complete the training 
program.
    (c) Criterion 3. There is a reasonable expectation of employment 
following completion of such training. Given the labor market 
conditions expected to exist at the time of the completion of the 
training program, a reasonable expectation, fairly and objectively 
considered, exists that the trade-affected worker is likely to find 
employment, using the skills and education acquired while in training, 
upon completion of approved training. The labor market conditions 
considered must be limited to those in the worker's commuting area, or 
in the area where the worker intends to relocate.
    (1) ``A reasonable expectation of employment'' does not require 
that employment opportunities for the worker be available, or offered, 
immediately upon the completion of the approved training program. When 
initially approving such training, there must be a projection, based on 
labor market information, of employment opportunities expected to exist 
at the time of completion of the training program.
    (2) The State must measure expected job market conditions using 
pertinent labor market data, including but not limited to job order 
activity, short-term projections data, job vacancy surveys, business 
visitation programs, and local and regional strategic plans. This labor 
market information should be documented in the trade-affected worker's 
case file. The State should also work with the LWDBs and their one-stop 
partners, especially business team members, to understand current labor 
market conditions and opportunities for work-based learning.
    (3) When a worker desires to relocate within the United States, but 
outside the worker's present commuting area, upon completion of 
training, the State must document the labor market information, 
described in paragraph (c)(2) of this section, for the area of the 
planned relocation.
    (4) A reasonable expectation of employment may exist in a limited 
demand occupation for a single, trained worker in the worker's 
commuting area or in an area to which they desire to relocate. A 
limited demand for such an occupation does not preclude the approval of 
training in an occupation where the State has determined that there is 
a reasonable expectation that the worker can secure employment in that 
occupation. States must verify with businesses in the commuting area or 
in the area of intended relocation that demand exists for an individual 
with such training. These efforts must be documented in the trade-
affected workers case file. Before approving training in occupations 
with limited demand, the State must consider the number of individuals 
currently enrolled in training that are likely to meet that demand 
before enrolling additional workers in training for that occupation.
    (5) A State may approve a training program in an occupation if it 
finds that there is a reasonable expectation that the training will 
lead to self-employment in the occupation for which the worker requests 
training and that such self-employment will provide the worker with 
wages or earnings at or near their wages in adversely affected 
employment.
    (6) Training programs that consist solely of OJT or contain an OJT 
component are not approvable if they are not expected to lead to 
suitable employment, with the employer providing the OJT, in compliance 
with sec. 236(c)(1)(B)(i) of the Act.
    (d) Criterion 4. Training is reasonably available to the trade-
affected worker. In determining whether training is reasonably 
available, States must first consider training opportunities available 
within the worker's commuting area. States may approve training outside 
the commuting area if none is available at the time in the worker's 
commuting area. Whether the training is in or outside the commuting 
area, the training program must be available at a reasonable cost as 
prescribed in paragraph (f) of this section.
    (e) Criterion 5. The trade-affected worker is qualified to 
undertake and complete such training. States must ensure the following:
    (1) The worker's knowledge, skills, abilities, educational 
background, work experience, and financial resources are adequate to 
undertake and complete the specific training program being considered.
    (2) Any initial assessment, comprehensive and specialized 
assessment, and IEP developed under subpart C of this part must be 
consulted to support the trade-affected worker's ability to undertake 
and complete the training program.
    (3) Where the worker's remaining available weeks of UI and TRA 
payments will not equal or exceed the duration of the training program, 
that the worker will have sufficient financial resources to support 
completion of the training program within the time limits noted in 
Sec.  618.615(d). In making this determination, the State must 
consider:
    (i) The worker's remaining weeks of UI and TRA payments in relation 
to the duration of the proposed training program;
    (ii) Other sources of income support available to the worker, 
including severance, earnings of other family members, and other family 
resources;
    (iii) Other fixed financial obligations and expenses of the worker 
and family;
    (iv) The availability of Federal student financial assistance or 
any State-funded student financial assistance or any private funding 
designated for student financial assistance including, but not limited 
to, nongovernmental scholarships, awards, or grants; and
    (v) Whether or not the worker is employed while attending training.
    (4) The State must document whether or not the trade-affected 
worker has sufficient financial resources to complete the training 
program that exceeds the duration of UI and TRA payments.
    (5) If a worker has insufficient financial resources to complete 
the worker's proposed training program that exceeds the duration of UI 
and TRA payments, then the State must not approve that training program 
and must instead consider other training opportunities available to the 
worker.
    (f) Criterion 6. Such training is suitable for the trade-affected 
worker and available at a reasonable cost.
    (1) Suitable for the worker. The training program being considered 
must address the criteria set out in paragraphs (e)(1) and (2) of this 
section and be determined by the State to be appropriate given the 
worker's knowledge, skills and abilities,

[[Page 60249]]

background, and experience relative to the worker's employment goal, 
and criteria set out in paragraph (c) of this section.
    (2) Available at a reasonable cost. (i) Costs of a training program 
may include, but are not limited to, tuition and related expenses 
(e.g., books, tools, computers and other electronic devices, internet 
access, uniforms and other training-related clothing such as goggles 
and work boots, laboratory fees, and other academic fees required as 
part of the approved training program) as well as supplemental 
assistance (subsistence expenses and transportation expenses as 
described in Sec.  618.640(c) and (d)). States must pay the costs of 
initial licensing and certification tests and fees where a license or 
certification is required for employment.
    (A) The State must ensure and document that the training program 
costs are reasonable by researching costs for similar training 
programs, whether it is classroom or work-based training.
    (B) Related expenses must be necessary for the worker to complete 
the training program. Other options should be explored before 
purchasing equipment or related materials.
    (ii) Available at a reasonable cost means that training must not be 
approved at one provider when, all costs being considered, training 
better or substantially similar in quality, content, and results can be 
obtained from another provider at a lower total cost within a similar 
time frame. Training must not be approved when the costs of the 
training are unreasonably high in comparison with the average costs of 
training other workers in similar occupations at other providers. The 
State may approve a higher cost training if that training is reasonably 
expected to result in a higher likelihood of employment, employment 
retention, or greater earnings, or to return the worker to employment 
in a significantly shorter duration.
    (iii) Training at facilities outside the worker's commuting area 
requiring transportation or subsistence payments that add substantially 
to the total cost of the training program may not be approved if other 
appropriate training is available in the commuting area at a lower 
cost, unless the exception described in paragraph (f)(2)(ii) of this 
section applies.
    (iv) Approval of training under paragraph (f) of this section 
(Criterion 6) is also subject to the provisions of Sec.  618.650.


Sec.  618.615  Limitations on training approval.

    (a) One training program per certification. (1) Except as provided 
under paragraph (d)(4) of this section, no trade-affected worker may 
receive more than one approved training program under a single 
certification.
    (2) A training program may be amended, as needed, in compliance 
with Sec.  618.665.
    (3) A training program may consist of multiple forms of training, 
including any or all of the types of training identified in Sec.  
618.620, subject to any restrictions or eligibility requirements that 
may exist.
    (b) Full-time or part-time training. A State may approve a training 
program on a full-time or part-time basis. A trade-affected worker's 
approved training program may consist of either part-time or full-time 
training, or a combination of both. A worker may switch from part-time 
to full-time training or from full-time to part-time training during 
the period of their participation in the program. The training program 
must be amended each time this occurs, in accordance with Sec.  
618.665.
    (1) Full-time. Full-time training means that the training is in 
accordance with the training provider's established full-time hours in 
a day (or credit hours) and days in a week. If a worker in full-time 
training has obtained employment that is not suitable employment, then 
the worker may choose to continue with such employment while completing 
the approved training program, provided the worker is willing and able 
to accommodate a full-time training schedule under the training 
provider's standard for full-time training.
    (2) Part-time. (i) A State may approve part-time training. Part 
time training is any training program that is not full time in 
accordance with the established standards of the training provider. The 
maximum duration for approved training provided in paragraph (d)(3)(i) 
of this section also applies to part-time training.
    (ii) A worker enrolled in part-time training is not eligible for 
TRA under subpart G of this part, including a worker who ceases full-
time training to engage in part-time training. The training approval 
requirements found in this section also apply to part-time training.
    (iii) A worker may participate in part-time training while employed 
in either part-time or full-time employment.
    (iv) The State must clearly inform the worker, before the worker 
chooses part-time training, that TRA is not available to workers in 
approved part-time training and that the worker may lose eligibility 
for the HCTC, if available, while engaged in part-time training.
    (v) As provided in Sec.  618.780(b)(1)(i), a worker may not be 
determined to be ineligible or disqualified for UI, because the worker 
is enrolled in training approved under Sec.  618.610, including part-
time training.
    (vi) As further described at Sec.  618.780(b)(1)(ii), State or 
Federal UI statutes relating to the able, available, or active work 
search requirements as well as refusal to accept work will not 
disqualify a worker for UI or other program benefits, during any week 
of training approved under Sec.  618.610, including part-time training.
    (c) Previous approval of training under other law. When a TAA 
Program petition has been filed by or on behalf of a group of workers 
but a determination of group eligibility has not been made, training 
may be approved for a worker under another State or Federal law or 
other authority. Training approved for a worker under another State or 
Federal law or other authority is not training approved under Sec.  
618.610. After eligibility has been determined, any such training may 
be approved under Sec.  618.610 (criteria for approval of training), if 
it meets all of the requirements and limitations of Sec.  618.610 and 
the other provisions of this subpart. Such approval must not be 
retroactive for any of the purposes of this part, including payment of 
the costs of the training and payment of TRA to the trade-affected 
worker participating in the training, except in the case of a 
redetermination or decision reversing a training denial as addressed in 
Sec.  618.828(d), in which case the approval must be retroactive to the 
date of that denial. Systems must be in place to accommodate a change 
in funding seamlessly, as appropriate, after TAA Program training 
program approval is obtained. The cost of training must shift to the 
TAA Program at the next logical break in training--such as the end of a 
semester--for workers who become eligible for the TAA Program and whose 
training is approved under the TAA Program. Training approved under 
other programs may be amended by the TAA Program to allow a worker 
additional training in order to meet additional retraining needs 
identified in the worker's IEP.
    (d) Length of training. The State, in determining whether to 
approve a training program, must determine the appropriateness of the 
length of training, as follows:
    (1) Time necessary to achieve desired skill level. The training 
must be of suitable duration to achieve the desired skill level in the 
shortest possible time, and not in excess of, the limits

[[Page 60250]]

established in paragraph (d)(3) of this section.
    (2) Factors. Factors that may impact the length of training 
include, but are not limited to, the trade-affected worker's employment 
status (full- or part-time) under Sec.  618.630 (training of reemployed 
workers not in suitable employment), the need for supportive services 
from partner programs, and breaks in training due to class schedules 
and availability.
    (3) Duration. (i) Except as otherwise provided for OJT, 
apprenticeship, and the exception provided in paragraph (d)(4) of this 
section, the maximum duration for approvable training under the TAA 
Program is 130 weeks.
    (ii) Only weeks spent in actual training are counted. Scheduled 
breaks in training, as provided in Sec.  618.760, are not counted.
    (iii) If a training program satisfies the duration requirement of 
paragraph (d)(3)(i) of this section but will extend beyond the period 
during which TRA is available, the State must determine, under Sec.  
618.610(e)(3) (criteria for approval of training), whether the worker 
has sufficient personal resources (i.e., funds for their living 
expenses) to support themselves while completing the training, while 
not requiring the worker to obtain such funds as a condition of 
training approval. The worker must attest to the State that they have 
sufficient resources to sustain themselves while in training.
    (4) Exception for certain workers who perform a period of duty in 
the Uniformed Services. A member of one of the reserve components of 
the U.S. Armed Forces who serves a period of duty will have the period 
for training, under paragraph (a)(3) of this section, suspended upon 
being called up to duty, provided the requirements specified in 
paragraphs (a)(4)(i) through (iii) of this section are met. Any such 
reserve component member may either resume training upon discharge from 
active service for the training period that remained at the time the 
reservist left the training program to report for active duty, or be 
allowed to repeat portions of the training if doing so is necessary for 
completion of the approved training program or, where appropriate, 
begin a new approved training program. Where the reservist repeats a 
training program or begins a new training program, the reservist will 
be entitled to a new 130-week period to complete approved training. To 
be eligible to resume, repeat, or begin a new approved training 
program, the reservist must meet the following requirements:
    (i) Before completing training under this subpart, the worker has 
given prior oral or written notice of the active duty service to the 
State, unless providing such notice is precluded by military necessity 
or is otherwise impossible or unreasonable.
    (ii) The returning service member must apply to the State for 
training within 90 days following release from active duty service.
    (iii) For purposes of the exception in this paragraph (d)(4), 
period of duty means:
    (A) Serves on active duty for a period of more than 30 days under a 
call or order to active duty of more than 30 days; or
    (B) In the case of a member of the Army National Guard of the 
United States or Air National Guard of the United States, performs 
full-time National Guard duty under 32 U.S.C. 502(f) for 30 consecutive 
days or more when authorized by the President or the Secretary of 
Defense for the purpose of responding to a national emergency declared 
by the President and supported by Federal funds.
    (e) Training outside the United States. A trade-affected worker 
must not be approved for training under this subpart for any training 
that is conducted totally or partially at a location outside the United 
States or if the worker is physically located outside the United States 
while participating in training. For distance training, this means both 
the provider and participant must be located within the United States.


Sec.  618.620  Selection of training program.

    (a) Standards and procedures for selection of training. The State 
must document the standards and procedures used to select training 
providers and training(s) in which the training program under this 
subpart will be approved.
    (1) In determining the types of training to be approved and 
provided under the standards, the State should consult with partner 
agencies, including State partner agencies (e.g., State apprenticeship 
agencies or Federal Offices of Apprenticeship located in the States), 
WIOA one-stop partners, local employers, appropriate labor 
organizations, local educational organizations, the LWDB, State and 
local apprenticeship programs, local advisory councils established 
under the Strengthening Career and Technical Education for the 21st 
Century Act (Pub. L. 115-224 (2018), as codified at 20 U.S.C. 2301 et 
seq.), and postsecondary institutions.
    (2)(i) States may choose an eligible training provider (ETP) 
established under WIOA sec. 122 without establishing additional 
standards or procedures under the TAA Program.
    (ii) As provided in sec. 236 of the Act, States must not limit 
training approved under this section to only programs on the ETP list 
under title I of WIOA.
    (b) Training types. Eligible trade-affected workers must be 
provided training using either one, or a combination of, the following 
methods:
    (1) Work-based training, such as apprenticeships, OJT, or 
customized training, may be approved for AAWs. Customized training with 
the worker's current employer may only be approved for AAIWs if the 
training is for a position other than their threatened position. See 
Sec.  618.655(c)(2). AAIWs must not be approved for OJTs. See Sec.  
618.655(c)(1). The State must inform the worker of the potential 
negative effects of work-based training on TRA and the HCTC, if 
available; or
    (2) Institutional training, including training at public area 
career and technical education schools, as well as community colleges, 
may be approved alone or in combination with work-based training. This 
also includes distance learning, including online training, where a 
worker may complete all or part of an educational or vocational program 
in a geographical location apart from the institution hosting the 
training program, and where the final certificate or degree conferred 
is equivalent in standard of achievement and content to the same 
program completed on campus or at another institutional training 
location.
    (i) A provider of the distance learning must be based in the United 
States for training provided to be approved. In addition, the worker 
must be physically within the United States when participating in 
distance learning to remain eligible for benefits under the Act.
    (ii) Distance learning is subject to all training approval criteria 
described in this subpart.
    (iii) The State must establish and monitor the milestones of a 
distance-learning program based on the worker's IEP, as described in 
subpart C of this part, if available.
    (iv) A worker who does not meet the requirements or milestones of a 
distance-learning program may be determined to have ceased 
participation in training, as described in Sec.  618.780(b)(3)(ii).
    (3) Higher education includes any training or coursework at an 
accredited institution, as described in sec. 102 of the Higher 
Education Act of 1965, as amended (20 U.S.C. 1002), including training 
or coursework for the purpose

[[Page 60251]]

of obtaining a degree or certification, or for completing a degree or 
certification that the worker had begun previously at an accredited 
institution of higher education. Higher education may be approved alone 
or in combination with work-based training. The distance learning 
requirements in paragraph (b)(2) of this section also apply to this 
paragraph (b)(3).
    (c) Other training. In addition to the training programs discussed 
in paragraph (b) of this section, training programs that may be 
approved under Sec.  618.610 (criteria for approval of training) 
include, but are not limited to:
    (1)(i) Any program of remedial education, including ABE courses and 
other remedial education courses, ELA courses, and HSE preparation 
courses.
    (ii) Remedial education may occur before, or while participating 
in, the requested training program;
    (2) Career and technical education;
    (3) Any training program approvable under Sec.  618.610 for which 
all, or any portion, of the costs of training the trade-affected worker 
are paid:
    (i) Under any other Federal or State program other than the TAA 
Program; or
    (ii) From any source other than this part;
    (4) Any training program provided by a State pursuant to title I of 
WIOA or any training program approved by an LWDB established under sec. 
102 of WIOA;
    (5) Any program of prerequisite education or coursework required by 
a training provider before advancing to further training; or
    (6) Any other training program approved by the State that complies 
with this subpart.
    (d) Advanced degrees. Training programs that will lead to an 
advanced degree may be approved; however, the time limits described at 
Sec.  618.615(a)(3) must be met. States may not restrict access to 
advanced degrees where the other criteria of this subpart are met. All 
training programs must be evaluated on their individual merit.


Sec.  618.625  Payment restrictions for training programs.

    (a) Funding of training programs. The costs of a training program 
approved under the Act may be paid:
    (1) Solely from TAA Program funds;
    (2) Solely from other public or private funds; or
    (3) Partly from TAA Program funds and partly from other public or 
private funds.
    (b) No duplication of costs allowed. (1) Any use of TAA Program 
funds to duplicate the payment of training costs by another source is 
prohibited.
    (2) When the payment of the costs of training has already been made 
under any other Federal law, or the costs are reimbursable under any 
other Federal law and a portion of the costs has already been paid 
under other such Federal law, payment of such training costs may not be 
made from TAA Program funds.
    (3) When the direct costs of a training program approvable under 
Sec.  618.610 (criteria for approval of training) are payable from TAA 
Program funds and are also wholly or partially payable from any other 
source, the State must establish procedures to ensure TAA Program funds 
will not duplicate funds available from the other source(s). This 
preclusion of duplication does not prohibit and should not discourage 
sharing of costs under prearrangements authorized under paragraph 
(c)(2) of this section.
    (c) Cost sharing permitted. (1) TAA Program funds are the primary 
source of Federal assistance to trade-affected workers, as identified 
in Sec.  618.804(h)(4). If the costs of training a trade-affected 
worker can be paid under the TAA Program, no other payment for such 
costs may be made under any other provision of Federal law.
    (2) States may share training costs with authorities administering 
other non-Federal, State, and private funding sources. Sharing training 
costs with other Federal sources may only occur if TAA Program funds 
are not available to cover the total cost of training, as described in 
paragraph (d)(2)(ii) of this section.
    (3) Sharing the future costs of training is authorized where prior 
costs were paid from another source, but this paragraph (c)(3) does not 
authorize reimbursement from TAA Program funds of any training costs 
that were accrued before the date the training program was approved 
under the TAA Program.
    (4) When a mix of TAA Program funds and other funds are used for 
paying the costs of a training program approved under this subpart, the 
State must enter into a prearrangement with any entity providing the 
other source of funds. Any such prearrangement must contain specific 
commitments from the other authorities to pay the costs they agree to 
assume and must comply with the nonduplication provisions contained in 
this part.
    (i) Agreements may be entered into on a case-by-case basis to 
address specific training situations of workers or they may be part of 
an overall statewide strategy to effectively use and maximize available 
resources from the TAA Program, workforce development, and other 
programs.
    (ii) Where training costs are shared between the TAA Program and 
any other funding source, the State must enter into a prearrangement 
with the other funding source to agree upon the proportion of TAA 
Program funds and other funds to be used to pay the costs of a training 
program. A prearrangement must be a specific, binding agreement with 
the other source(s) to pay the costs they agree to assume, and must be 
entered into before any TAA Program funds are obligated. If, after TAA 
Program funds are already committed to a training program, other funds 
become available to pay for that training, the State may decide to 
share the costs of the remainder of training program or the State may 
continue funding the training program in full using TAA Program funds. 
If the State decides to share the costs, it must enter into a 
prearrangement with respect to the newly available funds. If the State 
makes a change to how the training program will be funded going 
forward, the existing training program must be amended in accordance 
with Sec.  618.665.
    (iii) Before approving any training program under this subpart, 
which may involve the sharing of training costs under the authority of 
paragraph (a)(3) of this section, the State must require the worker to 
enter into a written agreement with the State, under which TAA Program 
funds will not be applied for or used to pay any portion of the costs 
of the training the worker has reason to believe will be paid by any 
other source.
    (5)(i) A State may not take into account Federal student financial 
assistance, including Pell Grants, or any funds provided under any 
other provision of Federal law that are used for purposes other than 
the direct payment of training costs, even though they may have the 
effect of indirectly paying all or a portion of the training costs.
    (ii) States must ensure that upon the approval of a training 
program under this subpart, payments of Federal student financial 
assistance cease to be applied to the training participant's tuition or 
other training-related costs covered by TAA Program funds.
    (iii) If payments of Federal student financial assistance or other 
training allowances from other Federal funding sources were made to the 
training provider instead of the worker and were applied towards the 
worker's approved training costs, the State must deduct the amount of 
those other payments from the amount of TAA Program funds payable to 
the training provider in order

[[Page 60252]]

to prevent duplication in the payment of training costs.
    (iv) A worker may use Federal student financial assistance for 
other expenses, as allowable under applicable rules for such financial 
assistance.
    (6) If the worker's trade-affected firm agrees to fund all or a 
portion of the worker's training costs, the State must, if the training 
is otherwise approvable, enter into a prearrangement with the firm to 
assume any unfunded training costs on the worker's behalf.
    (d) No training fees or costs to be paid by trade-affected worker 
from TAA Program funds. (1) A training program must not be approved if 
the trade-affected worker is required to reimburse any portion of the 
costs of such training program from TAA Program funds, or from wages 
paid under such training program.
    (2)(i) A training program must not be approved if the trade-
affected worker is required to pay any of the costs of the training 
program from funds belonging to the worker, including funds from 
relatives or friends, or from personal or educational loans that will 
require repayment.
    (ii) As required by Sec.  618.940, if the Department determines 
that the amount of funds necessary to provide Training and Other 
Activities (TaOA) will exceed the annual cap under Sec.  618.900 in a 
fiscal year, the Department will promptly inform the States. If a State 
estimates that it will exceed all available TAA Program training funds 
(including TaOA funds remaining from current or prior fiscal years) 
then the State must seek funding from other sources (other than from 
trade-affected workers), including WIOA national dislocated worker 
grants under part 687 of this chapter to cover the costs of training 
approved under Sec.  618.610. To the extent that a State is unable to 
fund training costs from those other sources, the agency may approve 
training where the worker pays those unfunded costs. Where the worker 
chooses to pay those unfunded costs under this paragraph (d)(2)(ii), 
the State is not liable for paying those costs and must document this 
prearrangement in the worker's case file. Where the worker chooses not 
to pay the unfunded costs, the State must waive the training 
requirement in Sec.  618.720(g) on the basis that training is not 
available, in order to preserve any remaining Basic TRA eligibility 
under Sec.  618.735(b)(3) (waiver of training requirement for Basic 
TRA).


Sec.  618.630  Training of reemployed trade-affected workers not in 
suitable employment.

    (a) An AAW who obtains new employment that is not suitable 
employment and who has been approved for a training program may elect 
to terminate the employment, reduce the hours worked in the employment, 
or continue in full- or part-time employment. Such a worker is not 
subject to ineligibility or disqualification for UI or TRA as a result 
of such termination or reduction in employment. A worker who continues 
such full- or part-time employment while a participant in training is 
considered to be in training under Sec.  618.780(b) 
(disqualifications). If the worker continues in full- or part-time 
employment that is not suitable employment while a participant in an 
approved training program, the State must inform the worker in writing 
that such employment may have negative effects on UI and TRA benefit 
amounts and duration due to income earned from the employment (and also 
because a worker participating in part-time training is not eligible 
for TRA), which could also lead to the loss of the HCTC, if available. 
The State must apply the earnings disregard provisions in subpart G of 
this part, as appropriate.
    (b) An AAW who has been totally separated as described in paragraph 
(a) of this section may also be eligible for job search and relocation 
allowances under subpart D of this part.


Sec.  618.635  Work-based training.

    (a) OJT--(1) Description. OJT is work-based training provided under 
contract with an employer in the public, nonprofit, or private sector 
to an AAW who is employed by the employer. OJT may be approved if the 
worker meets the requirements under Sec. Sec.  618.610, 618.615, and 
618.665. The State must determine that the OJT in question:
    (i) Can reasonably be expected to lead to suitable employment with 
the employer offering the OJT;
    (ii) Is compatible with the skills of the worker;
    (iii) Includes a curriculum through which the worker will gain the 
knowledge or skills to become proficient in the job for which the 
worker is being trained; and
    (iv) Can be measured by standards or targets that indicate the 
worker is gaining such knowledge or skills.
    (2) Related education. Related skills training provided as part of 
the OJT contract and sponsored by the employer may be provided in 
conjunction with the OJT. Such training may be provided at the 
employment site, or at educational institutions, or other locations. 
TAA Program funds can be used to pay the OJT participant's expenses 
associated with the educational or instructional component (e.g., 
classroom and distance learning, tools, uniforms, equipment, and books) 
for an AAW's participation in an OJT program.
    (3) Duration. The OJT contract with the employer must specify the 
duration of the OJT. The duration of the OJT must be appropriate to the 
occupational goal for which the AAW is being trained, taking into 
consideration the skills requirements of the job for which the AAW is 
being trained, the academic and occupational skill level of the AAW, 
and the work experience of the AAW, as documented in the worker's IEP, 
if available. The duration of the training must be long enough for the 
worker to become sufficiently proficient in the occupation for which 
the training is being provided to enable the worker to perform as well 
as workers in comparable positions within the firm. The OJT:
    (i) Must not exceed the specific vocational preparation required 
for the occupation, as listed on O*NET (www.onetonline.org); and
    (ii) Must not exceed 104 weeks in any case.
    (4) Exclusion of certain employers. The State may not enter into a 
contract for OJT with an employer that exhibits a pattern of failing to 
provide workers receiving OJT from the employer with:
    (i) Continued long-term employment as regular employees; and
    (ii) Wages, benefits, and working conditions that are equivalent to 
the wages, benefits and working conditions provided to regular 
employees who have worked a similar period of time and are doing the 
same type of work as workers receiving the OJT from the employer.
    (5) Reimbursement. (i) Pursuant to the OJT contract, the employer 
is provided reimbursement of not more than 50 percent of the wage rate 
of the OJT participant, for the costs of providing the training and 
additional supervision related to the training.
    (ii) The reimbursement for OJT must be limited to the duration of 
approved training as specified in the OJT contract.
    (6) Approval of the costs of OJT. OJT costs for an AAW may be 
approved by a State only if a determination is made that:
    (i) No currently employed individual is displaced (including a 
partial displacement, such as a reduction in the hours of nonovertime 
work, wages, or employment benefits) by the AAW;

[[Page 60253]]

    (ii) Such training does not impair existing contracts for services 
or collective bargaining agreements;
    (iii) In the case of training that would be inconsistent with the 
terms of a collective bargaining agreement, written concurrence has 
been obtained from the concerned labor organization;
    (iv) No other individual is on layoff from the same or any 
substantially equivalent job for which the AAW is being trained;
    (v) The employer has not terminated the employment of any regular 
employee or otherwise reduced the workforce of the employer with the 
intention of filling the vacancy by hiring the AAW;
    (vi) The job for which the AAW is being trained is not being 
created in a promotional line that will infringe in any way upon the 
promotional opportunities of currently employed individuals;
    (vii) The training is not for the same occupation from which the 
AAW was separated with respect to which the AAW's worker group is 
covered under a certification rendered under subpart B of this part;
    (viii) The employer has not received payment under the TAA Program 
or under any other Federal law for any other OJT provided by such 
employer that failed to meet the requirements of this section or the 
requirements of the other Federal laws governing employment practices; 
and
    (ix) The employer has not taken, at any time, any action that 
violated the terms of this section with respect to any other OJT 
provided by the employer for which the State has made a payment under 
the TAA Program.
    (7) Payment of the costs of OJT. The costs of OJT that are paid 
from TAA Program funds must be paid in monthly installments.
    (8) TRA eligibility during OJT. Under Sec.  618.780(c), an AAW may 
not be paid TRA for any week during which the worker is in OJT and, 
therefore, may be ineligible for the HCTC, if available.
    (9) RTAA eligibility during OJT. Participants enrolled in OJT may 
be eligible for RTAA. All the requirements at subpart E of this part 
must be met.
    (10) Use of WIOA funds for OJT. TAA Program funds may be leveraged 
with WIOA funds to provide a reimbursement rate equal to that allowable 
under WIOA. See WIOA sec. 134(c)(3)(H) (29 U.S.C. 3174(b)(3)(H)).
    (11) No OJT for AAIWs. The State must not approve OJT for AAIWs.
    (b) Customized training. (1) Customized training is designed to 
meet the special requirements of a single employer or a group of 
employers. The training may be conducted by a training provider, a 
single employer, or group of employers.
    (2) Customized training must be conducted with a commitment by the 
employer or group of employers to employ an AAW upon successful 
completion of the training. For purposes of customized training, a 
commitment by the employer(s) to employ a worker upon successful 
completion of the training, as required by sec. 236(f)(2) of the Act, 
means that the employer(s) must enter into an agreement with the State 
that describes the conditions that must be met for successful 
completion of the training and the expectation of employment after the 
training is completed.
    (3) The employer must pay at least 50 percent for the cost of the 
training.
    (4) For AAIWs, approval is limited to customized training for other 
than their current position in adversely affected employment. See Sec.  
618.655(c)(2).
    (c) Apprenticeship. Apprenticeship includes registered 
apprenticeships under the Act of August 16, 1937 (commonly known as the 
National Apprenticeship Act; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et 
seq.), as well as other training programs that include a paid work-
based learning component and required educational or instructional 
component that results in the issuance of a recognized postsecondary 
credential, which includes an industry-recognized credential.
    (1) Duration. Apprenticeships are not subject to the 104-week 
statutory duration of OJT training limit. The length of the paid work-
based learning component must not exceed 130 weeks. However, the length 
of the educational or instructional training component of the 
apprenticeship may exceed 130 weeks and continue through the scheduled 
completion of that specific apprenticeship training.
    (2) Eligible apprenticeship expenses. TAA Program funds can be used 
to pay for:
    (i) The expenses associated with the educational or instructional 
component (e.g., classroom and distance learning, tools, uniforms, 
equipment, and books) for the apprentice; and
    (ii) The sponsor may be reimbursed not more than 50 percent of the 
apprentice's regular wage rate for the cost of providing the training 
and additional supervision related to the work-based learning component 
provided by the sponsor.
    (3) Exclusion of certain sponsors. The State may not enter into a 
contract for apprenticeship with an employer and/or apprenticeship 
sponsor that exhibits a pattern of failing to provide apprentices with 
successful attainment of an industry-recognized credential or the 
apprenticeship completion certificate in the case of registered 
apprenticeship, as issued by the U.S. Department of Labor or State 
apprenticeship agency.
    (4) Approval of the costs of apprenticeship--(i) Registered 
apprenticeships under the National Apprenticeship Act. Costs for an 
apprenticeship program may be approved by a State only if the 
requirements of the National Apprenticeship Act, 29 CFR parts 29 and 
30, and Departmental administrative guidance are met.
    (ii) Other apprenticeships. Costs for an apprenticeship program may 
be approved by a State only if a determination is made that:
    (A) No currently employed worker is displaced (including a partial 
displacement, such as a reduction in the hours of nonovertime work, 
wages, or employment benefits) by the apprentice;
    (B) Such training does not impair existing contracts for services 
or collective bargaining agreements;
    (C) In the case of training that would be inconsistent with the 
terms of a collective bargaining agreement, written concurrence has 
been obtained from the concerned labor organization;
    (D) No other worker is on layoff from the same or any substantially 
equivalent job for which the apprentice is being trained;
    (E) The sponsor has not terminated the employment of any regular 
employee or otherwise reduced the workforce of the sponsor with the 
intention of filling the vacancy so created by hiring the apprentice;
    (F) The job for which the apprentice is being trained is not being 
created in a promotional line that will infringe in any way upon the 
promotional opportunities of currently employed workers;
    (G) The training is not for the same occupation as the apprentice's 
adversely affected employment;
    (H) The sponsor has not received payment under the TAA Program or 
under any other Federal law for any other apprenticeship provided by 
such sponsor that failed to meet the requirements of this section or 
the requirements of the other Federal laws governing employment 
practices; and
    (I) The sponsor has not taken, at any time, any action that 
violated the terms of this section with respect to any other 
apprenticeship provided by the sponsor for which the State has made a 
payment under the TAA Program.
    (5) TRA and HCTC eligibility during apprenticeships. Workers 
enrolled in an

[[Page 60254]]

apprenticeship program, in most cases, will not be able to access TRA 
income support due to their income earned through wages, but the State 
must still make individual determinations on TRA benefits. This could 
also impact HCTC eligibility, if HCTC is available. States must advise 
workers considering this training option of these issues.
    (6) RTAA eligibility during apprenticeships. AAWs age 50 or older 
enrolled in an apprenticeship program may be eligible for RTAA under 
subpart E of this part.
    (7) Meaning of apprenticeship sponsor. For purposes of paragraph 
(c) of this section, a sponsor means any person, association, 
committee, or organization operating an apprenticeship program and in 
whose name the program is (or is to be) registered or approved.
    (8) State contract with apprenticeship sponsor. The State must 
enter into a contract with the sponsor that provides the terms and 
conditions of the apprenticeship.


Sec.  618.640  Supplemental assistance.

    (a) General. Supplemental assistance in the form of subsistence and 
transportation payments must be provided to a trade-affected worker 
whose training program has been approved under Sec.  618.610 (Criteria 
for approval of training), to defray reasonable subsistence and 
transportation expenses while the worker attends training at a facility 
outside the worker's commuting area. The need for such subsistence and 
transportation payments must be documented on the worker's IEP, if 
available, or in the worker's case file. Subsistence and transportation 
payments may also be documented on a training approval form, or other 
such form as the State chooses, to ensure that the supplemental 
assistance is documented in the worker's case file.
    (b) Applications for supplemental assistance. A trade-affected 
worker must submit an application for subsistence or transportation 
payments in accordance with subpart H of this part and processes 
established by the State. A determination on an application submitted 
under this section is subject to Sec. Sec.  618.820 (determinations and 
notice) and 618.828 (appeals and hearings).
    (c) Subsistence payments--(1) General. Subsistence payments must be 
made for the reasonable costs of meals and incidental expenses, and of 
separate maintenance, which means maintaining temporary living 
quarters, when the training facility is located outside the trade-
affected worker's commuting area.
    (2) Requirements for subsistence payments. (i) A worker must be 
reimbursed for subsistence only for the period when they are not 
receiving or authorized to receive reimbursement or separate payments 
for such costs from any other source.
    (ii) Subsistence payments must not be made for any day such worker 
receives a daily commuting transportation payment from TAA Program 
funds or from any other source, except as specified in paragraph (e) of 
this section.
    (iii) Subsistence payments must not be made for any day of 
unexcused absence from the training program, as certified by the 
training provider.
    (3) Amount of subsistence payments. The State may make a 
subsistence payment to a trade-affected worker only for the lesser of:
    (i) The worker's actual per diem expenses for subsistence; or
    (ii) 50 percent of the prevailing per diem allowance rate 
authorized under the FTR (see 41 CFR chapters 300 through 304) for the 
location of the training facility.
    (4) Timing of subsistence payments. The State must make subsistence 
payments upon a worker's completion of a week of training, but may 
advance a subsistence payment for a week if the State determines that 
such advance is necessary to enable the worker to participate in the 
approved training.
    (d) Transportation payments. A trade-affected worker must be 
reimbursed for transportation expenses when commuting to and from a 
training facility located outside the worker's commuting area. 
Transportation expenses, funded by the TAA Program, are payable only 
for the actual days traveled. Mileage eligible for reimbursement is, 
round-trip, from the first mile outside the boundary of the worker's 
commuting area to the location of the training facility.
    (1) Transportation payments must not be paid when:
    (i) Transportation is arranged and paid for by the State for one or 
more workers;
    (ii) Such payments are being provided under any other law; or
    (iii) The worker is authorized to be paid or reimbursed for such 
expenses from any other source.
    (2) The daily transportation payment may not exceed the amount of a 
daily subsistence payment that would be payable under paragraph (c)(3) 
of this section if the worker resided temporarily in the area of the 
training.
    (3) In addition, while other forms of transportation may be used, 
transportation payments to a worker may not exceed the cost per mile at 
the prevailing personal vehicle mileage rate authorized under the FTR. 
See http://www.gsa.gov.
    (4) A worker must receive transportation payments promptly after 
completion of a week of approved training, but at a minimum on a 
monthly basis. These payments also may be made in advance in order to 
facilitate the worker's attendance at the training.
    (e) When payment can be made for both subsistence and 
transportation. A trade-affected worker receiving subsistence payments 
may also receive transportation payments only:
    (1) At the beginning of the training that the worker is attending 
outside their commuting area and at the end of the training for travel 
back to the worker's commuting area; or
    (2) When the worker fails, for justifiable cause, as described in 
Sec.  618.780(b)(3)(iii), to complete the training outside their 
commuting area, and must return home before the scheduled end of the 
training.
    (f) Adjustments to subsistence and transportation payment advances. 
If the State advances subsistence or transportation funds, the State 
must adjust subsequent subsistence and transportation payments to take 
into account the amount of the advance that is more or less than the 
amount that the trade-affected worker is entitled to receive under 
paragraphs (c) and (d) of this section.
    (g) Worker evidence. The trade-affected worker must provide 
receipts for all lodging, purchased transportation expenses, and meals.


Sec.  618.645  Voluntary withdrawal from a training program.

    (a)(1) The State must advise a trade-affected worker who chooses to 
withdraw from a TAA approved training program that the withdrawal may, 
subject to the requirements in subpart H of this part, result in an 
overpayment.
    (2) The State must advise a worker who chooses to withdraw from a 
TAA approved training program that the withdrawal may, subject to the 
requirements in subpart G of this part, result in loss of eligibility 
for TRA.
    (b) A trade-affected worker who qualifies for an exception for 
service in the Uniformed Services, under the criteria set out in Sec.  
618.615(d)(4), may voluntarily withdraw from a training program.
    (c) A trade-affected worker who ceases participation in training 
for justifiable cause, as described in Sec.  618.780(b)(3)(iii) 
(disqualifications),

[[Page 60255]]

may resume the approved training program.
    (d) The trade-affected worker's eligibility for job search and 
relocation allowances will not be affected by the decision to withdraw 
from training. To be eligible for these allowances, the worker must 
meet all eligibility requirements for these benefits as set forth in 
Sec. Sec.  618.410 (job search allowances) and 618.440 (relocation 
allowances).
    (e) If the trade-affected worker obtains suitable employment before 
training is completed yet remains in their training program:
    (1) The State must continue funding the approved training program 
if:
    (i) The State determines that training completion serves the long-
term employment goals of the worker; and
    (ii) Training benchmarks, described at Sec.  618.660, continue to 
be satisfactorily met.
    (2) The State must consider whether to amend the worker's training 
program; and
    (3) The State must discuss with the worker whether the training 
program continues to serve a useful purpose.


Sec.  618.650  State standards and procedures for establishing 
reasonable cost of training.

    (a) A State is not prohibited from setting a statewide limit or 
limits for local workforce development areas on the amount of training 
costs considered reasonable and appropriate for training programs. Any 
limit(s) must reasonably take into account the costs of training 
available in the local workforce development areas throughout the State 
and the expenditure must be prudent under the standards of the Office 
of Management and Budget's (OMB's) Uniform Guidance (2 CFR 200.404) and 
its attendant interpretive administrative guidance. Additionally, 
States must comply with the standards for reasonableness in Sec.  
618.610(f)(2), including those permitting States to allow training 
other than the least-cost option if the extra cost is justified by 
better trade-affected worker outcomes or a faster return to the 
workforce. If the State chooses to implement a statewide limit, it must 
arrive at a reasonable limit based upon training costs throughout the 
State, recognizing that costs may vary significantly between urban 
areas and rural areas. The State must also develop and implement a 
method to exceed the limit(s), which must require the local area to 
secure State approval, as described in paragraph (b) of this section, 
before training is approved.
    (b) The State must develop transparent standards and procedures 
that provide for prompt consideration of any request for approval of 
training costs that exceed the established training cost limit(s) set 
by the State under paragraph (a) of this section. The review standards 
developed by the State under this paragraph (b) must allow for approval 
of costs that exceed the applicable training cost limit when a training 
program that exceeds the cost limit(s) will provide the most reasonable 
way of returning a particular trade-affected worker to employment at 
higher wages--or on a career pathway to do so--than in the absence of 
training.
    (c) The State must propose an alternative training program 
consistent with the reasonable cost criteria, as described at Sec.  
618.610, when a training program is not approvable under the 
established limits and does not meet the requirements in paragraph (b) 
of this section.
    (d) The State must review any limits established under paragraph 
(a) of this section on an annual basis to determine whether they are 
still appropriate, and change or end such limits when they no longer 
reasonably reflect the average cost of training available in the local 
workforce development areas throughout the State.
    (e) Whenever a State establishes, changes, or ends State-
established limits on training costs payable under paragraph (a) of 
this section, the State must provide written notice and full 
documentation supporting its action to the Department for review.
    (f) States are not required to establish a limit on training costs.


Sec.  618.655  Training for adversely affected incumbent workers.

    (a) AAIW training. Pursuant to secs. 236(a)(1) and 247(18) of the 
Act, a State may approve training for an AAIW, or training for a worker 
before separation occurs. An AAIW may apply for training and a State 
may approve training at any time after the date on which they are 
determined to be individually threatened with layoff without regard to 
whether such worker has applied for or exhausted all rights to any UI 
to which the worker is entitled.
    (b) Threat of layoff. A State may determine that a worker has been 
individually threatened with total or partial separation when the 
worker has received a notice of termination or layoff from employment. 
Other documentation of a threat of total or partial separation from the 
firm or other reliable source may be accepted.
    (c) Approval of training. Except as specified in this section, the 
provisions of this subpart extend to AAIWs. The following exceptions to 
the training approval requirements apply to AAIWs:
    (1) The State may not approve OJT under Sec.  618.635(a) for AAIWs.
    (2) Customized training for AAIWs under Sec.  618.635(b) may be 
approved only if the training is for a position other than the AAIW's 
adversely affected position.
    (d) Disqualification and restrictions. (1) The State must 
periodically verify that the threat of total or partial separation 
continues to exist for the AAIW for the duration of the approved 
training. This may be accomplished by verifying with the AAIW's 
employer that the threat of separation still exists before funding each 
subsequent portion of the training.
    (2) Funding of a training program must cease upon the removal of 
the threat. The AAIW must cease the training upon the conclusion of the 
most recently funded portion, semester or quarter for which expenses 
have already been accrued. No additional funding will be available 
while the threat of separation is removed. Funding may resume for the 
original training program that had been previously approved upon a 
determination by the State that the threat of separation has been 
reestablished, or upon total or partial separation from adversely 
affected employment, if the requirements under Sec.  618.610 are still 
met. The AAIW's approved training program must be amended, as 
appropriate, in compliance with Sec.  618.665.
    (3) The one training program per certification rule, as described 
under Sec.  618.615, is applicable to AAIWs. Thus, a training program 
begun prior to separation and while under a threat of layoff 
constitutes the one allowed training program available to that AAIW.
    (4) The duration of training limitations, at Sec.  618.615(d)(3) 
are applicable to AAIWs.
    (5) An AAIW will not be eligible for a new training program when 
total or partial separation occurs; however, the existing training may 
be amended under the provisions of Sec.  618.665.
    (6) The State must not consider the AAIW's threatened employment to 
be suitable employment under Sec.  618.610(a).
    (e) Separation from threatened employment. (1) Upon a total or 
partial separation from threatened employment, an AAIW becomes an AAW 
under the following conditions:
    (i) The separation must occur prior to the expiration of the 
certification period under which they were determined to be threatened; 
and
    (ii) The total or partial separation must be for lack of work.

[[Page 60256]]

    (2) When an AAIW becomes an AAW under the conditions in paragraph 
(e)(1) of this section:
    (i) The State must amend the worker's approved training program, as 
described in Sec.  618.665; and
    (ii) The State must determine what other benefits under the TAA 
Program the worker may now be eligible for, including TRA. Any time 
spent in training as an AAIW applies to the duration limits contained 
in Sec.  618.615.


Sec.  618.660  Training benchmarks.

    (a) Requirement for training benchmarks. A State must establish and 
document training benchmarks, as provided in paragraph (f) of this 
section, for individual AAWs so that they can meet Completion TRA 
eligibility requirements, described at Sec.  618.765. The benchmarks 
must be established when the worker enrolls in an approved training 
program, so that the State can monitor the worker's progress toward 
completing the approved training duration limits established at Sec.  
618.615.
    (b) Scope of requirement. Training benchmarks must be established 
for all but short-term training programs.
    (c) Measurement against training benchmark. To review the AAW's 
progress against the benchmarks, States may request that the training 
provider provide documentation of the worker's satisfactory progress, 
including instructor attestations, progress reports, etc. The case 
manager may attest to the worker's progress after consultation with the 
vendor and the worker.
    (d) Must be included in IEP. The training benchmarks must be 
described in the AAW's IEP, if available, or otherwise documented in 
the worker's case file.
    (e) Benchmark qualities. Benchmarks must be flexible enough to 
allow for some variability, and both practical and measurable enough to 
allow administration across a broad spectrum of training scenarios.
    (f) Review of benchmarks. The State must evaluate and document 
satisfactory progress against the benchmarks in paragraphs (f)(1) and 
(2) of this section at intervals of not more than 60 days, beginning 
with the start of the approved training program:
    (1) The AAW is maintaining satisfactory academic standing (e.g., 
not on probation or determined to be ``at risk'' by the instructor or 
training provider); and
    (2) The AAW is on schedule to complete training within the 
timeframe identified in the approved training program.
    (g) Actions following failure to meet a benchmark. (1) Upon failure 
to meet a benchmark, the State must provide a warning to the AAW that 
their eligibility for Completion TRA is in jeopardy. The warning may be 
provided verbally, in writing, or both, and must be documented in the 
worker's case file. In consultation with the worker, the State may 
amend a worker's training program as described in Sec.  618.665.
    (2) If a worker who has previously failed to meet a benchmark under 
paragraph (g)(1) of this section fails to meet a benchmark during a 
subsequent review under paragraph (f) of this section, the State must 
notify the worker of their ineligibility for Completion TRA. The worker 
may elect to continue in the approved training but will not receive any 
Completion TRA payments; or the training program must be amended, 
according to Sec.  618.665, and Completion TRA may resume.


Sec.  618.665  Amending approved training.

    (a) Conditions for amending approved training. The State must, with 
the cooperation of the trade-affected worker, amend a worker's approved 
training program under the following conditions:
    (1) The State determines that one or more of these conditions are 
present:
    (i) A course or courses designed to satisfy unforeseen needs of the 
worker, such as remedial education or new employer skills requirements, 
are necessary;
    (ii) A course or courses added to the training program will enhance 
and complement the worker's original training program, such as 
preparatory courses to obtain an industry-recognized credential, 
certification, or license that will improve the worker's chance of 
being hired;
    (iii) Additional assistance such as tutoring or the use of 
translators would benefit the worker, keep the worker qualified for the 
training in which they are enrolled, and be sufficient for the worker 
to complete the training program;
    (iv) Approval of a longer-term training program that will improve 
the likelihood of employment upon the completion of such training;
    (v) The originally approved training program cannot be successfully 
completed by the worker;
    (vi) The originally approved training program is determined to be 
of inferior quality;
    (vii) Training in another occupation will lead to a greater 
likelihood of training completion or a better employment outcome, as a 
result of a change in labor market conditions or the worker's 
experience in the originally approved training program, or other 
similar factor;
    (viii) The worker is moving from full-time training to part-time 
training or from part-time training to full-time training;
    (ix) An AAIW has been separated from adversely affected employment 
and has transitioned to become an AAW, or an AAIW is continuing 
training after a threat of separation was first removed, then resumed; 
or
    (x) An additional source of funding becomes available for which a 
prearrangement is required under Sec.  618.625(c)(4).
    (2) The combination of time spent in the originally approved 
training program and the time it will take to complete the amended 
training program will not exceed the duration of training limit for the 
type of training included in the training program, as provided at Sec.  
618.615(d)(3).
    (3) Amending the approved training program occurs before a worker 
finishes the originally approved training program and prior to the 
originally scheduled date of completion.
    (b) Criteria for amending a training program. The State must 
determine that the following criteria are met before amending a 
training program:
    (1) Criterion 1: A reasonable expectation of employment following 
completion of such training continues to exist. Given the labor market 
conditions expected to exist at the time of the completion of the 
training program, a reasonable expectation, fairly and objectively 
considered, exists that the trade-affected worker is likely to find 
employment, using the skills and education acquired while in training, 
upon completion of approved training. The labor market conditions 
considered must be limited to those in the worker's commuting area, or 
in the area where the worker intends to relocate.
    (i) ``A reasonable expectation of employment'' does not require 
that employment opportunities for the worker be available, or offered, 
immediately upon the completion of the approved training.
    (ii) The State must review the expected job market conditions using 
pertinent labor market data in the worker's case file to ensure it 
continues to apply to the amended training program and the worker's 
occupational goal as identified on the worker's IEP, if available, and 
in the worker's case file.
    (iii) When a worker desires to relocate within the United States 
but outside the worker's present commuting area upon completion of 
training, the State must ensure the labor market information (described 
in Sec.  618.610(c)(2)) supports the determination that a reasonable

[[Page 60257]]

expectation of employment continues to exist within the area of the 
planned relocation. The labor market information must be in the area of 
planned relocation.
    (iv) A reasonable expectation of employment may exist in a limited 
demand occupation for a single, trained worker in the worker's 
commuting area or in the area to which they desire to relocate. The 
State must determine that there continues to be a reasonable 
expectation that the worker can secure employment in the limited demand 
occupation.
    (v) A State may approve an amended training program in an 
occupation if it finds that there is a reasonable expectation that the 
additional training will lead to self-employment in the occupation for 
which the worker requests training, and that such self-employment will 
provide the worker with wages or earnings at or near their wages in 
adversely affected employment.
    (vi) Amended training programs that consist of solely OJT or 
contain an OJT component are not approvable if they are not expected to 
lead to suitable employment, with the employer providing the OJT, in 
compliance with sec. 236(c)(1)(B)(i) of the Act.
    (2) Criterion 2: Training continues to be reasonably available to 
the worker. In determining whether training continues to be reasonably 
available to the worker, the State must first consider training 
opportunities available in the worker's commuting area. States may 
approve training outside the commuting area if none is available at the 
time in the worker's commuting area. Whether the training is in or 
outside the commuting area, the amended training program must be 
available at a reasonable cost as prescribed in paragraph (b)(4) of 
this section.
    (3) Criterion 3: The worker continues to be qualified to undertake 
and complete such amended training. States must ensure the following:
    (i) The worker's knowledge, skills, and abilities, educational 
background, work experience, and financial resources remain sufficient 
to undertake and complete the specific amendment to the training 
program being considered.
    (ii) The initial assessment or comprehensive and specialized 
assessment, and IEP, if available, developed under subpart C of this 
part are to be consulted in order to support the trade-affected 
worker's ability to undertake and complete the proposed amended 
training program.
    (iii) Where the worker's remaining available weeks of UI and TRA 
payments will not equal or exceed the duration of the amended training 
program, that the worker will have sufficient financial resources to 
support completion of the training program within the time limits noted 
in Sec.  618.615(d) (limitations on approval of training). In making 
this determination, the State must consider:
    (A) The worker's remaining weeks of UI and TRA payments in relation 
to the duration of the proposed amended training program;
    (B) Other sources of income support available to the worker 
including severance, earnings of other family members, and other family 
resources;
    (C) Other fixed financial obligations and expenses of the worker 
and family;
    (D) The availability of Federal student financial assistance or any 
State-funded student financial assistance or any private funding 
designated for student financial assistance, including, but not limited 
to, nongovernmental scholarships, awards, or grants; and
    (E) Whether or not the worker is employed while attending training.
    (iv) The State must document whether or not the trade-affected 
worker has sufficient financial resources to complete the amended 
training program that exceeds the duration of UI and TRA payments.
    (v) If a worker has insufficient financial resources to complete 
the proposed amended training program that exceeds the duration of UI 
and TRA payments, then the State must not approve that amended training 
and must instead consider resuming the originally approved training 
program or other training opportunities available to the worker.
    (4) Criterion 4: Such amended training continues to be suitable for 
the worker and available at a reasonable cost--(i) Suitable for the 
worker. The amended training being considered must address the criteria 
set out in paragraph (b)(3) of this section (Criterion 3), this 
paragraph (b)(4), and be determined by the State to be appropriate 
given the worker's knowledge, skills, and abilities, background, and 
experience relative to the worker's employment goal, and criteria set 
out in paragraph (b)(1) of this section (Criterion 1).
    (ii) Available at a reasonable cost. (A) Costs of an amended 
training program may include, but are not limited to, tuition and 
related expenses (e.g., books, tools, computers and other electronic 
devices, internet access, uniforms and other training-related clothing 
such as goggles and work boots, laboratory fees, and other academic 
fees required as part of the amended training program) as well as 
supplemental assistance (subsistence expenses and transportation 
expenses as described in Sec.  618.640(c) and (d)). States must pay the 
costs of initial licensing and certification tests and fees where a 
license or certification is required for employment.
    (1) The State must ensure and document that the amended training 
program costs are reasonable by researching costs for similar training 
programs, whether it is classroom or work-based training.
    (2) Related expenses must be necessary for the worker to complete 
the amended training program. Other options should be explored before 
purchasing equipment or related materials.
    (B) Available at a reasonable cost means that amended training must 
not be approved at one provider when, all costs being considered, 
training better or substantially similar in quality, content and 
results can be obtained from another provider at a lower total cost 
within a similar time frame. Amended training must not be approved when 
the costs of the training are unreasonably high in comparison with the 
average costs of training other workers in similar occupations at other 
providers. The State may approve a higher cost training if that 
training is reasonably expected to result in a higher likelihood of 
employment, employment retention, or greater earnings, or to return the 
worker to employment in a significantly shorter duration.
    (C) Training at facilities outside the worker's commuting area 
requiring transportation or subsistence payments that add substantially 
to the total cost of the amended training program may not be approved 
if other appropriate training is available in the commuting area at a 
lower cost, unless the exception described in paragraph (b)(4)(ii)(B) 
of this section applies.
    (D) Approval of amended training under paragraph (b)(4) of this 
section (Criterion 4) is also subject to the provisions of Sec.  
618.650.

Subpart G--Trade Readjustment Allowances


Sec.  618.700  Scope.

    This subpart explains the requirements for eligibility, amounts, 
and duration of Basic TRA, Additional TRA, and Completion TRA, all of 
which are income support in the form of cash payments for an AAW.


Sec.  618.705  Definitions.

    (a) For purposes of TRA, an AAW is ``participating in approved 
training'' if:
    (1) The worker is either attending and taking part in all scheduled 
classes,

[[Page 60258]]

required activities, and required events in a given week, or the 
training provider has excused the worker's absence or failure to take 
part in accordance with its written policies.
    (2) In the case of distance learning, the worker is either meeting 
all the requirements of the training provider in a given week in 
accordance with its rules, regulations, and standards, or the training 
provider has excused the worker's failure to meet those requirements in 
accordance with its written policies.
    (b) For purposes of TRA, the term ``training allowance'' means any 
assistance or payment, excluding Federal student financial assistance, 
that can be used for the same purpose as funds for the costs of 
training covered by the TAA Program, and that is given or paid directly 
to the AAW.
    (c) For purposes of TRA, the term ``adversely affected employment'' 
includes employment at a successor-in-interest, and such wages reported 
to the State or received by an AAW from a successor-in-interest are 
included as wages under Sec.  618.720(c).


Sec.  618.710  Categories of Trade Readjustment Allowances.

    (a) Basic TRA. Basic TRA is payable to an AAW who meets the 
requirements of Sec.  618.720. Basic TRA is payable for weeks of 
unemployment after the worker meets the criteria for exhaustion of UI 
under Sec.  618.720(e) and, consistent with Sec.  618.725, for weeks of 
unemployment during which the worker either is enrolled in, is 
participating in, or has completed approved training, or has received a 
waiver of the training requirement under Sec.  618.735.
    (b) Additional TRA. Additional TRA is payable to an AAW who meets 
the requirements of Sec.  618.760. Additional TRA is payable only for 
weeks of unemployment during which the worker is participating in 
approved training and only after the worker has exhausted all rights to 
Basic TRA.
    (c) Completion TRA. Completion TRA is payable to an AAW who meets 
the requirements of Sec.  618.765. Completion TRA is payable only for 
weeks of unemployment during which the worker is participating in 
approved training. Completion TRA is payable only after the worker has 
exhausted all rights to Basic and Additional TRA.


Sec.  618.715  Applications for Trade Readjustment Allowances and 
payment.

    (a) Timing of applications. (1) An initial application for TRA must 
be filed after publication of the certification of the appropriate 
worker group.
    (2) An application for TRA must be filed within the time limit 
applicable to claims for regular compensation under the applicable 
State law.
    (b) Applicable procedures. Applications must be filed in accordance 
with this subpart and on forms furnished to AAWs by the State. The 
State's procedures for filing applications for TRA, and for reporting, 
must be consistent with this part and the Department's ``Standard for 
Claim Filing, Claimant Reporting, Job Finding, and Employment 
Services,'' Employment Security Manual, part V, secs. 5000 through 5004 
(appendix A to this part), except that such procedures may allow for 
the filing and processing of applications by paper, telephone, the 
internet, or other similar methods as provided for in paragraph (e)(2) 
of this section.
    (c) Treatment of determinations. Determinations on TRA applications 
are determinations to which Sec. Sec.  618.820 (determinations and 
notice), 618.824 (liable and agent State responsibilities), and 618.828 
(appeals and hearings) apply. Copies of such applications for TRA and 
all determinations by the State on such applications must be included 
in the AAW's case file.
    (d) Payment of TRA. (1) A State must not make any payment of TRA 
until a certification is issued and the State determines that the AAW 
is a member of a worker group covered under the specified 
certification.
    (2) An AAW, if they otherwise meet the eligibility requirements of 
this subpart, including exhaustion of UI, may be entitled to TRA for 
any week of unemployment that begins on or after the date of the 
applicable certification.
    (3) An AAW may receive only one form of TRA (Basic, Additional, or 
Completion) for any given week.
    (e) Taking of applications. (1) An application is required for each 
TRA benefit type available to the AAW. The State must take an initial 
application for each type of TRA (Basic, Additional, and Completion).
    (2) Applications may be filed and processed by any means allowed 
for UI claims in the State.


Sec.  618.720  Qualifying requirements for Basic Trade Readjustment 
Allowances.

    To qualify for Basic TRA for a week of unemployment, an AAW must 
meet each of the requirements in paragraphs (a) through (g) of this 
section:
    (a) Certification. The AAW must be a member of a worker group 
certified under subpart B of this part.
    (b) Separation. The AAW must have experienced a qualifying 
separation during the certification period of the certification in 
paragraph (a) of this section.
    (c) Wages and employment. The AAW must meet the following wage and 
other requirements:
    (1) In the 52-week period (i.e., 52 consecutive calendar weeks) 
ending with the week of the AAW's total or partial separation from 
adversely affected employment during the certification period, the 
worker must have had at least 26 weeks of employment at wages of $30 or 
more a week in adversely affected employment with a single firm or, 
where there is more than one subdivision, the appropriate subdivision 
of that firm. Evidence that the worker meets the requirement in this 
paragraph (c)(1) must be obtained as provided in Sec.  618.740. 
Employment and wages covered under more than one certification may not 
be combined to qualify for TRA.
    (2) The categories of weeks in paragraphs (c)(2)(i) through (iv) of 
this section also must be treated as weeks of employment at wages of 
$30 or more (for purposes of paragraph (c)(1) of this section), 
regardless of whether the AAW actually receives any wages during such 
weeks:
    (i) All weeks, up to a maximum of 7 weeks, during which the AAW is 
on employer-authorized leave for vacation, sickness, injury, maternity, 
or inactive duty or active duty military service for training;
    (ii) All weeks, up to a maximum of 7 weeks, during which the AAW 
had adversely affected employment interrupted to serve as a full-time 
representative of a labor organization in the firm or subdivision 
referenced in paragraph (c)(1) of this section;
    (iii) All weeks, up to a maximum of 26 weeks, during which the AAW 
has a disability compensable under a workers' compensation law or plan 
of a State or the United States; and
    (iv) All weeks, up to a maximum of 26 weeks, during which the AAW 
is on call-up for the purpose of active duty in a reserve status in the 
Armed Forces of the United States, if such active duty is ``Federal 
service'' as defined in 5 U.S.C. 8521(a)(1), but not more than 7 weeks, 
in the case of weeks described in paragraph (c)(2)(i) or (ii) of this 
section that occur during the active duty. States may waive provisions 
of this paragraph (c)(2)(iv) consistent with Sec.  618.884.
    (d) Entitlement to UI. The AAW must have been entitled to (or would 
have been entitled to if the worker had applied therefor) UI for a week 
within the first benefit period.
    (e) Exhaustion of UI. The AAW must meet the following requirements:

[[Page 60259]]

    (1) The AAW must have exhausted all rights to any UI, except 
additional compensation that is funded by a State and not reimbursed 
from any Federal funds to which such worker was entitled (or would have 
been entitled had such worker applied therefor), and not have any 
unexpired waiting period applicable to the worker for any such UI. 
Thus, except as provided by paragraph (e)(2) of this section, whenever 
an AAW becomes entitled (or would become entitled if the worker applied 
therefor) to any type of UI, except additional compensation funded by a 
State and not reimbursed from any Federal funds, after the start of the 
AAW's receipt of TRA, the payment of TRA must be suspended until such 
worker exhausts entitlement to such UI. After the AAW exhausts that 
entitlement, payments of TRA to which the worker is still entitled may 
resume.
    (2) The AAW may elect to receive TRA instead of UI during any week 
with respect to which the worker:
    (i) Is entitled and is able to receive UI as a result of a new 
benefit year based on employment in which the worker engaged after 
establishing TRA eligibility following a total separation from 
adversely affected employment. The entitlement must be after the first 
UI benefit period. It must also be based in whole or in part upon part-
time or short-term employment in which the worker engaged after the 
worker's most recent total separation from adversely affected 
employment that established such first UI benefit period. This new 
employment may include the same adversely affected employment; and
    (ii) Is otherwise entitled to TRA, except that the AAW need not 
have exhausted all rights to UI in the new benefit year.
    (3) For AAWs meeting the requirements in paragraph (e)(2) of this 
section, the State must provide the AAW a summary of their potential UI 
benefits and potential TRA benefits in writing and document the AAW's 
choice in the case file.
    (4) State law applies to the status of the UI claim based upon the 
second benefit year. For States where a claim establishes a benefit 
year, no subsequent claim may be established in a later quarter during 
that benefit year, and any available entitlement remains, consistent 
with State law, once TRA is exhausted.
    (5) The AAW must have no unexpired waiting period applicable to 
such worker for any UI.
    (f) Extended Benefits (EB) work test. The AAW must be able to work 
and be available for work, as defined in the applicable State law for 
UI claimants, under the EB work test for each week by the means 
described in this paragraph (f), unless an exception in paragraph 
(f)(2) of this section applies.
    (1) Criteria. The EB work test requirement must be met by:
    (i) Registering for work with the State, in accordance with the 
applicable provisions of State law that apply to EB claimants and that 
are consistent with part 615 of this chapter;
    (ii) Actively engaging in seeking work;
    (iii) Furnishing the State with tangible evidence of work search 
efforts each week; and
    (iv) Accepting any offer of suitable work, including those referred 
by the State.
    (2) Exceptions. The able and available requirement and the EB work 
test requirement in this paragraph (f) do not apply for purposes of TRA 
eligibility:
    (i) When the AAW is enrolled in or participating in approved 
training;
    (ii) During a break in training that does not exceed 30 days as 
counted in accordance with Sec.  618.775(b); or
    (iii) With respect to claims for TRA for those weeks of 
unemployment beginning before the filing of an initial claim for TRA, 
or for any week that begins before the AAW is notified of coverage by a 
certification and is fully informed of the EB work test requirements. 
Before such notification and advice, the worker must not be subject to 
the EB work test requirements for TRA eligibility purposes, nor to any 
State timely filing requirement, but must be required to be unemployed 
and able to work and available for work under State law with respect to 
any such week except as provided in paragraphs (f)(2)(i) and (ii) of 
this section for AAWs enrolled in or participating in approved 
training.
    (3) Suitable work. (i) For purposes of this subpart, suitable work 
means, with respect to a worker, whichever of the following laws is 
applicable:
    (A) Suitable work as defined in the applicable State law for 
claimants for regular compensation; or
    (B) Suitable work as defined in applicable State law provisions 
consistent with sec. 202(a)(3) of EUCA.
    (ii) Regardless of which of the laws in paragraph (f)(3)(i)(A) or 
(B) of this section apply, suitable work does not in any case include 
self-employment or employment as an independent contractor.
    (g) Participation in approved training. (1) As a condition for 
receiving Basic TRA, except as provided for in Sec.  618.730, the AAW, 
after a total or partial separation from the adversely affected 
employment within the certification period, and by the applicable 
deadlines in Sec.  618.725 must:
    (i) Be enrolled in training, as defined in subpart A of this part;
    (ii) Be participating in approved training (as defined in Sec.  
618.705); or
    (iii) Have a waiver granted under Sec.  618.735 in effect.
    (2) An AAW who has not met the requirements in paragraph (g)(1) of 
this section may, if otherwise eligible, receive Basic TRA before 
expiration of the applicable training enrollment deadline in Sec.  
618.725. Once the training enrollment deadline is reached, the training 
requirements in paragraph (g)(1) of this section must be met. Basic TRA 
payments must cease beginning the first week for which the requirements 
in paragraph (g)(1) of this section were required but not met.
    (3) The requirements in paragraph (g)(1) of this section do not 
apply to an AAW with respect to claims for Basic TRA for weeks of 
unemployment beginning before the filing of an initial claim for TRA 
after publication of the certification of the appropriate worker group 
as provided in Sec.  618.715(a), nor for any week that begins before 
the AAW is notified that they are covered by a certification and is 
fully informed of the requirements of this section.
    (4) An AAW who meets the participation in approved training 
requirement in paragraph (g)(1) of this section by the applicable 
deadlines in Sec.  618.725 may continue to receive Basic TRA after the 
AAW has completed training, even if such participation in training was 
on a part-time basis, provided that the worker meets all other 
eligibility requirements for Basic TRA.


Sec.  618.725  Training enrollment deadlines.

    (a) Training enrollment deadlines. As a condition for receiving 
Basic TRA, an AAW must meet the participation in approved training 
requirement in Sec.  618.720(g)(1) no later than the latest of:
    (1) The last day of the 26th week after the AAW's most recent 
qualifying separation;
    (2) The last day of the 26th week after the week in which the 
certification was issued; or
    (3) 45 days after the later of the dates specified in paragraph 
(a)(1) or (2) of this section, if there are extenuating circumstances 
that justify an extension of the enrollment period. Extenuating 
circumstances that justify the 45-day extension are circumstances that 
would constitute good cause, as established by Sec.  618.730; that is, 
circumstances under which the AAW acted diligently yet was unable to 
enroll because of exigent circumstances.

[[Page 60260]]

    (4) In the case of an AAW who fails to enroll by the date required 
by paragraph (a)(1), (2), or (3) of this section due to a failure by 
the State to provide the AAW with timely information regarding the 
applicable training enrollment deadline, the AAW must be enrolled in 
training or obtain a waiver by the Monday of the first week occurring 
60 consecutive calendar days following the date the worker was properly 
notified; or
    (5) The Monday of the first week occurring 30 consecutive calendar 
days (or, if the State is closed that last day because that day falls 
on a weekend or holiday or for any other reason, the next business day) 
following the day of termination, whether by revocation or expiration 
or revocation of a waiver under Sec.  618.735.
    (b) Exceptions--(1) Extended training enrollment deadline for 
delayed approval of application for TRA. (i) The training enrollment 
deadlines of paragraph (a) of this section do not apply where:
    (A) A State's negative determination on an initial application for 
TRA under Sec.  618.715 has been reversed through redetermination or 
appeal;
    (B) The AAW is unable to meet the training enrollment deadline 
because of the delay in obtaining the reversal of the negative 
determination; and
    (C) The delay in obtaining the reversal is not attributable to the 
AAW.
    (ii) Where the conditions of paragraph (b)(1)(i) of this section 
are met, the AAW will have until the last day of the 26th week 
following the date on which the negative determination was reversed to 
enroll in training or have a training waiver in effect.
    (2) Extended training enrollment deadline for period of duty in 
military service. If an AAW who is a member of a reserve component of 
the Armed Forces and has served a period of duty during the AAW's Basic 
TRA eligibility period but before enrolling in training, the AAW's 
training enrollment deadline will be the last day of the 26th week 
following the last day of the AAW's period of duty.
    (3) Good cause. The training enrollment deadline may be extended 
for good cause as provided for in Sec.  618.730.


Sec.  618.730  Good cause.

    (a) States must waive the time limitations with respect to an 
application for TRA, enrollment in training, or receipt of a training 
waiver in this subpart if the AAW shows good cause.
    (b) Good cause exists if the AAW acted diligently yet was unable to 
complete in a timely manner the relevant task at issue described in 
paragraph (a) of this section because of exigent circumstances.
    (c) The State must determine good cause on a worker-by-worker 
basis.


Sec.  618.735  Waiver of training requirement for Basic Trade 
Readjustment Allowances.

    (a) Waiver for Basic TRA. A State may issue a waiver of the 
requirement in Sec.  618.720(g) that an AAW be enrolled in or 
participating in approved training as a condition of Basic TRA 
eligibility upon a finding that training for such worker is not 
feasible or appropriate for one or more reasons identified in paragraph 
(b) of this section. The waiver must contain the information required 
in paragraph (c) of this section. No waiver of the training requirement 
is permitted for Additional TRA or Completion TRA eligibility. Waivers 
must be issued no later than the latest of the applicable deadlines 
described in Sec.  618.725.
    (b) Bases for a waiver. The State, in order to issue a written 
waiver to an AAW, must conclude after assessing the worker that 
training is not feasible or appropriate for one or more of the reasons 
in paragraphs (b)(1) through (3) of this section, which must be cited 
on the waiver:
    (1) Health. The worker is unable to participate in training due to 
the health of the worker. A waiver granted for this reason does not 
exempt the worker from requirements relating to the availability for 
work, active search for work, or refusal to accept work under Federal 
or State unemployment compensation laws.
    (2) Enrollment unavailable. The first available enrollment date for 
approved training is within 60 consecutive calendar days after the date 
on which a waiver determination is made or, if later, there are 
extenuating circumstances, as determined under the criteria in Sec.  
618.725(a)(3), that apply to the delay in enrollment in training.
    (3) Training not available. Approved training is not reasonably 
available to the worker from governmental agencies or private sources 
(which may include area vocational education schools, as defined in 
sec. 3 of the Strengthening Career and Technical Education for the 21st 
Century Act (20 U.S.C. 2302), and employers), or suitable training is 
not available at a reasonable cost, or no training funds are available.
    (c) Contents of a waiver. (1) A waiver issued under this section 
may not take effect unless it contains, at a minimum, the following 
information:
    (i) The AAW's name and a unique identifying designation used by the 
State;
    (ii) The name and location of the worker group and the petition 
number under which the AAW's group was certified;
    (iii) A statement of the reasons why training is not feasible or 
appropriate for the AAW, citing to one or more reasons identified in 
paragraph (b) of this section;
    (iv) The effective date and expiration date of the waiver;
    (v) A statement that the waiver must be revoked immediately upon a 
determination that the basis or bases for the waiver no longer apply; 
and
    (vi) The signature of an official of the State authorized to grant 
the waiver, and the signature of the AAW or other evidence of the 
worker's acknowledgement of receipt of the waiver.
    (2) Waivers and the required signatures may be issued and 
maintained electronically.
    (d) Request for a waiver. States may analyze whether an AAW may 
qualify for a waiver as part of the AAW's initial assessment, as 
described in subpart C of this part. An AAW may also request a waiver 
from the State before the applicable deadline in Sec.  618.725.
    (e) Denial of a waiver. In any case in which a determination is 
made to deny a waiver under this section, the AAW to whom the denial 
pertains must be furnished with a notice of the denial of waiver. The 
notice of denial of waiver must contain, at minimum, the information in 
paragraphs (c)(1)(i), (ii), and (vi) of this section; the specific 
reason(s) for the denial; the date of the denial; and notice of the 
AAW's appeal rights.
    (f) Duration of a waiver. (1) A waiver issued under this section 
may be for a period not to exceed 6 months, or the AAW's period of 
Basic TRA entitlement, whichever ends first;
    (2) Notwithstanding the 6-month limitation in paragraph (f)(1) of 
this section, a State may extend an AAW's waiver beyond 6 months if:
    (i) Training continues not to be feasible or appropriate for such 
worker for one or more of the reasons described in paragraph (b) of 
this section; and
    (ii) Such worker has not yet exhausted their Basic TRA entitlement.
    (3) Waivers must be reviewed 3 months after the date on which the 
State issues the waiver to determine if one or more of the bases in 
paragraph (b) of this section continue to apply, and every 30 
consecutive calendar days thereafter.

[[Page 60261]]

    (g) Revocation of a waiver. The State must revoke a waiver issued 
under this section if the waiver criteria are no longer met. The State 
must notify the AAW of the revocation. The notice of revocation must be 
appealable and must contain the same information as a denial of waiver 
issued under paragraph (e) of this section.
    (h) Submission of waivers and notices. The State must develop 
procedures for compiling and reporting on the number of waivers issued 
and revoked, by reason, and must submit to the Department, only upon 
specific request, a record or copy of any or all waivers issued under 
this section together with a statement of reasons for each such waiver, 
and a record or copy of any or all notices of revocation of waiver 
issued under this section together with a statement of reasons for each 
such revocation. The statements of reason required under paragraphs 
(c)(1)(iii) and (e) of this section, as applicable, fulfill the 
requirement for a statement of reasons under this paragraph (h). 
Electronic records and copies are acceptable.


Sec.  618.740  Evidence of qualification for Basic, Additional, and 
Completion Trade Readjustment Allowances.

    (a) State action. When an AAW applies for Basic, Additional, or 
Completion TRA, the State having jurisdiction under Sec.  618.820 
(determinations of eligibility) must obtain information necessary to 
establish:
    (1) Whether the AAW meets the qualifying requirements in Sec.  
618.720 for Basic TRA, in Sec.  618.760 for Additional TRA, or in Sec.  
618.765 for Completion TRA; and
    (2) For a partially separated AAW, the average weekly hours and 
average weekly wage in adversely affected employment.
    (b) Insufficient data. If information specified in paragraph (a) of 
this section is not available from State records or from any employer, 
the State must require the AAW to submit a signed statement setting 
forth such information as may be required for the State to make the 
determinations required by paragraph (a) of this section.
    (c) Verification. A statement made under paragraph (b) of this 
section must be certified by the AAW to be true to the best of the 
worker's knowledge and belief and must be supported by evidence 
including W-2 forms, paycheck stubs, union records, income tax returns, 
or statements of fellow workers, and must, whenever possible, be 
verified by the employer.
    (d) Determinations. The State must make the necessary 
determinations on the basis of information obtained under this section, 
except that if, after reviewing information obtained under paragraphs 
(b) and (c) of this section against other available data, including 
agency records, it concludes that such information is not reasonably 
accurate, it must make the determination on the basis of the best 
available information.
    (e) Timing. The State must follow the established method used for 
processing regular UI claims. If an employer does not respond within 
the timeframe established for UI claims, then the State must act on the 
best available information.


Sec.  618.745  Weekly amounts of Basic, Additional, and Completion 
Trade Readjustment Allowances.

    (a) TRA amount. The amount of Basic, Additional, or Completion TRA 
payable for a week of unemployment (including a week of approved 
training) is an amount equal to the most recent weekly benefit amount 
of UI (including dependents' allowances) payable to the AAW for a week 
of total unemployment preceding the worker's first exhaustion of UI 
following the worker's first qualifying separation, except that:
    (1) Where a State calculates a base period amount of UI and 
calculates dependents' allowances on a weekly supplemental basis, TRA 
weekly benefit amounts must be calculated in the same manner and under 
the same terms and conditions as apply to claimants for UI except that 
the base amount must not change.
    (2) For partially separated workers, the weekly amount of TRA must 
be calculated as determined under the applicable State law.
    (b) Workers who are undergoing training. Any AAW in approved 
training who is thereby entitled for any week to TRA and a training 
allowance (as defined in Sec.  618.705) under any other Federal law for 
the training of workers, will be paid for each week in which they are 
undergoing approved training, TRA in the amount (computed for each 
week) equal to the amount computed under paragraph (a) of this section 
or, if greater, the amount of any weekly allowance for such training to 
which the AAW would be entitled under any other Federal law for the 
training of workers, if the AAW applied for such allowance. TRA must be 
paid in lieu of any payment for training made directly to the AAW to 
which the AAW is entitled under such other Federal law.
    (c) Reductions to the TRA weekly amount. The weekly amount of TRA 
payable under this section will be reduced (but not below zero) by:
    (1) Income that is deductible from UI under the disqualifying 
income provisions of the applicable State law or Federal UI law, except 
that in the case of an AAW who is participating in approved training, 
such income must not include earnings from work for such week that are 
equal to or less than the most recent weekly benefit amount of the UI 
payable to the worker for a week of total unemployment preceding the 
worker's first exhaustion of UI (as determined for purposes of sec. 
231(a)(3)(B) of the Act).
    (2) If the amount of a training allowance as defined in Sec.  
618.705 (including a training allowance referred to in paragraph (b) of 
this section) under any Federal law that the AAW receives for such week 
is less than the amount of TRA otherwise payable to the AAW for a week, 
the AAW must, when applying for TRA for the week, be paid TRA in an 
amount not to exceed the difference between the AAW's regular weekly 
TRA amount, as determined under Sec.  618.745(a) (regular allowance), 
and the amount of the training allowance paid to the AAW for the week.
    (3) Except as provided in paragraph (c)(4) of this section, if a 
training allowance under any Federal law other than the Act, is paid to 
an AAW for any week of unemployment with respect to which the AAW would 
be entitled (determined without regard to any disqualification under 
paragraph (b) of this section) to TRA, if they applied for TRA, each 
such week must be deducted from the total number of weeks of TRA 
otherwise payable to the AAW when the worker applies for and is 
determined to be entitled to TRA. If such training allowance paid 
directly to the worker for any week of unemployment is less than the 
amount of TRA to which the AAW would be entitled if the worker had 
applied for it, the AAW must receive (when the worker applies for and 
is determined to be entitled to TRA) TRA for such week equal to such 
difference.
    (4) If the training allowance (as defined in Sec.  618.705) 
referred to in paragraphs (c)(2) and (3) of this section is Federal 
student financial assistance, then the amount of TRA will not be 
reduced. In the case of an AAW to whom the Federal student financial 
assistance is available, the State will rely on prearrangements for the 
sharing of training costs under Sec.  618.625(c)(2) (payment 
restrictions for training programs) in order to harmonize the provision 
of Federal student financial assistance with the worker's TRA.

[[Page 60262]]

    (5) Any amount that would be deductible from UI for days of absence 
from training under the provisions of the applicable State law that 
applies to AAWs in approved training.


Sec.  618.750  Maximum amount of Basic Trade Readjustment Allowances.

    (a) General rule. Except as provided in paragraph (b) of this 
section, the maximum amount of Basic TRA payable to an AAW is the 
product of 52 multiplied by the TRA weekly amount for a week of total 
unemployment, calculated under Sec.  618.745(a) (weekly amounts of 
TRA), reduced by the total sum of UI (except State-funded additional 
compensation) that the AAW was entitled or would have been entitled to 
had the worker applied in such worker's first benefit period.
    (b) Exceptions. The maximum amount of TRA determined under 
paragraph (a) of this section does not include:
    (1) The amount of dependents' allowances paid as a supplement to 
the base weekly amount determined under Sec.  618.745; or
    (2) The amount of the difference between the AAW's weekly increased 
allowances determined under Sec.  618.745(b) and such worker's weekly 
amount determined under Sec.  618.745(a).


Sec.  618.755  Eligibility period for Basic Trade Readjustment 
Allowances.

    (a) Except as provided in paragraphs (b) and (c) of this section, 
an AAW is ineligible to receive Basic TRA for any week of unemployment 
beginning after the close of the 104-week period beginning with the 
first week following the week in which the AAW's most recent qualifying 
separation occurred or after certification, whichever is later.
    (b) A State may not count any period during which a judicial or 
administrative appeal is pending with respect to a denial of a petition 
filed under subpart B of this part for the purpose of calculating the 
period of separation described in paragraph (a) of this section. The 
separation will be deemed as having occurred on the certification date 
and the Basic TRA eligibility period will begin on the week that 
follows the certification date.


Sec.  618.760  Qualifying requirements for, and timing and duration of, 
Additional Trade Readjustment Allowances.

    (a) Qualifying requirements for Additional TRA. An AAW is eligible 
to receive Additional TRA for any week only if:
    (1) The worker meets all qualifying requirements for receipt of 
Basic TRA in Sec.  618.720;
    (2) The worker subsequently exhausted Basic TRA; and
    (3) Except as provided in Sec.  618.775 for a break in training, 
the AAW is participating in approved training.
    (b) Timing and duration of Additional TRA. Additional TRA is 
payable for up to 65 weeks during the 78 consecutive calendar week 
period that:
    (1) Immediately follows the last week of entitlement to Basic TRA 
otherwise payable to the AAW;
    (2) Begins with the first week of approved training, if such 
training begins after the last week described in paragraph (b)(1) of 
this section; or
    (3) Begins with the first week in which such training is approved 
under subpart F of this part, if such training is approved after the 
training already has commenced (although Additional TRA or training 
costs may not be paid for any week before the week in which the TAA 
approved training was approved).


Sec.  618.765  Qualifying requirements for, and timing and duration of, 
Completion Trade Readjustment Allowances.

    (a) Qualifying requirements for Completion TRA. An AAW is eligible 
to receive Completion TRA if such worker meets all qualifying 
requirements for receipt of Basic TRA in Sec.  618.720 and Additional 
TRA in Sec.  618.760, and if the eligibility criteria in paragraphs 
(a)(1) through (3) of this section are met for that week. The 
requirements in this paragraph (a) are applied at the time the State 
approves payment for a week of Completion TRA. The eligibility criteria 
are:
    (1) Payment of Completion TRA is necessary for an AAW to complete 
the approved training described in paragraph (a)(2) of this section.
    (2) The AAW is participating in approved training each week that 
leads to the completion of a degree or industry-recognized credential 
and the worker's training program will extend for a period longer than 
the periods during which Basic and Additional TRA are payable under 
Sec. Sec.  618.755 (eligibility period for Basic TRA) and 618.760 
(qualifying requirements for, timing and duration of, Additional TRA), 
and the requested weeks are necessary for the worker to complete 
training.
    (3) The worker--
    (i) Has substantially met the performance benchmarks in Sec.  
618.660 (training benchmarks) established as part of the approved 
training under subpart F of this part;
    (ii) Is expected to continue to make progress toward the completion 
of the approved training; and
    (iii) Will complete the approved training during the period of 
eligibility described in paragraph (c) of this section.
    (4) If, during the period in which an AAW is eligible to receive 
Completion TRA, the worker ceases to meet any of the eligibility 
criteria in paragraphs (a)(1) through (3) of this section, no further 
Completion TRA is payable to such worker.
    (b) Weeks payable. A total of up to 13 weeks of payments are 
allowable during the period of eligibility described in paragraph (c) 
of this section.
    (c) Eligibility period. Completion TRA may be payable during the 
period of 20-week consecutive calendar period that begins with the 
first week in which an AAW files a claim for Completion TRA and seeks 
compensation for such week, regardless of when the first payment is 
received. The eligibility period may be extended if justifiable cause 
exists, in accordance with Sec.  618.770(a).
    (d) Start date of Completion TRA. The State must have a process to 
take applications for Completion TRA. States must not automatically 
establish the 20-week period for Completion TRA as the week following 
either expiration of the eligibility period for Additional TRA, or the 
exhaustion of Additional TRA; filing a claim after either of those 
first weeks is permitted. Since training that leads to a degree or 
industry-recognized credential must be completed during the eligibility 
period described in paragraph (c) of this section, the first week of 
Completion TRA claimed should be carefully considered in coordination 
with case management while the AAW's training program is being 
developed.


Sec.  618.770  Special rule for justifiable cause.

    (a) The eligibility period during which Basic, Additional, and 
Completion TRA are payable to an AAW may be extended for justifiable 
cause, which has the same meaning as good cause in Sec.  618.730.
    (b) While the eligibility period for Basic, Additional, and 
Completion TRA may be extended for justifiable cause as determined by 
the State, the maximum benefit amount and number of weeks this benefit 
may be received must not change.


Sec.  618.775  Payment of Trade Readjustment Allowances during breaks 
in training.

    (a) Basic and Additional TRA are payable to an otherwise eligible 
AAW during breaks in training (periods within or between courses, terms 
(quarters or semesters), and academic years) that do not exceed 30 days 
(counted in accordance with paragraph (b) of this section), only if:
    (1) The AAW participated in approved training of this part 
immediately before the beginning of the break in training;

[[Page 60263]]

    (2) The break in training was provided in the established schedule 
of the training provider; and
    (3) The AAW resumes participation in the approved training 
immediately after the break ends.
    (b) For the purpose of determining whether a break in training is 
within the 30-day maximum allowed under this section, all calendar days 
beginning with the first day of the training break and ending with the 
last day of the break, as provided in the published schedule of the 
training provider, must be counted. However, any Saturday, Sunday, or 
official State or national holiday occurring during the scheduled break 
in training is excluded from the 30-day count if training normally 
would not be scheduled in the training program during those days if 
there was no break.
    (c) For Completion TRA, breaks in training are permissible during 
the 20-week eligibility period. However, payment for breaks in training 
are not allowed.


Sec.  618.780  Disqualifications.

    (a) General rule. Except as stated in paragraph (b)(1) or (c) of 
this section and in Sec.  618.832(b)(2) (concerning disqualification 
due to fraud), an AAW may not be paid TRA for any week of unemployment 
such worker is or would be disqualified from receiving UI under the 
disqualification provisions of the applicable State law, including the 
provisions of the applicable State law that apply to EB claimants and 
are consistent with EUCA.
    (b) Disqualification of trainees--(1) State law inapplicable. A 
State law may not be applied to disqualify an AAW from receiving UI or 
TRA because:
    (i) Such worker is enrolled in or participating in an approved 
training program;
    (ii) Such worker refuses work to which the State referred such 
worker because such work either would require discontinuation of 
approved training or interfere with successful participation in TAA 
approved training, except that this paragraph (b)(1)(ii) does not apply 
to an AAW who is ineligible under paragraph (b)(2) of this section;
    (iii) Such worker quits work that was not suitable employment and 
it was reasonable and necessary to quit in order to begin or continue 
approved training. This includes temporary employment the worker may 
have engaged in during a break in training;
    (iv) Such worker continues full-time or part-time employment while 
participating in approved training; or
    (v) Such worker leaves OJT within the first 30 days because the OJT 
is not meeting requirements of sec. 236(c)(1)(B) of the Act.
    (2) Disqualifications. An AAW who, without justifiable cause (as 
described in paragraph (b)(3)(iii) of this section), fails to begin 
participation (as described in paragraph (b)(3)(i) of this section) in 
approved training, or ceases participation (as described in paragraph 
(b)(3)(ii) of this section) in such training, or for whom a waiver is 
revoked under Sec.  618.735(f) (waiver of training requirement for 
Basic TRA), may not receive Basic TRA for any week in which such 
failure, cessation, or revocation occurred. The disqualification will 
continue for any succeeding week thereafter until the week in which 
such worker begins or resumes participation in an approved training 
program. A worker who has justifiable cause (as described in paragraph 
(b)(3)(iii) of this section) for such failure to begin, or for ceasing, 
participation in training may receive Basic TRA for any week in which 
such failure or cessation occurred if the worker otherwise meets the 
requirements of this subpart. Such failure, cessation, or revocation 
normally does not change the eligibility periods defined in Sec. Sec.  
618.755, 618.760(b), and 618.765(b) and (c).
    (3) Disqualification conditions. For determining the 
disqualification of trainees for all TAA approved training, the 
following provisions apply:
    (i) Failed to begin participation. A worker will be determined to 
have failed to begin participation in an approved training program when 
the worker fails to attend one or more scheduled training classes and 
other training activities in the first week of the approved training 
program, without justifiable cause.
    (ii) Ceased participation. A worker will be determined to have 
ceased participation in an approved training program when the worker 
fails to attend all scheduled training classes and other training 
activities scheduled by the training provider in any week of the 
approved training program, without justifiable cause.
    (iii) Justifiable cause. For purposes of this section, justifiable 
cause has the same meaning as good cause under Sec.  618.730, except 
that good cause for absence also includes an absence excused under a 
training provider's written policy.
    (c) Disqualification while in OJT. An AAW may not be paid any TRA 
for any week during which such worker is engaged in OJT, in accordance 
with Sec.  618.635.
    (d) Disqualification while in part-time training. An AAW may not be 
paid any TRA for any week in which the worker is participating in 
approved training that is part-time. Part-time training is any approved 
training that does not meet the definition of ``full-time training'' as 
defined in Sec.  618.110.

Subpart H--Administration by Applicable State Agencies


Sec.  618.800  Scope.

    This subpart covers the general administrative requirements a State 
must follow in providing the benefits and services available under the 
TAA Program. The requirements in this subpart include: The provision 
rapid response and appropriate career services to groups of workers for 
whom a petition is filed, delivering TAA Program benefits and services 
to trade-affected workers, assisting in the filing of petitions for 
those likely to be eligible for benefits under this part, conducting 
outreach to groups of workers covered under a petition for TAA filed 
under subpart B of this part, and notifying UI claimants of the TAA 
Program.


Sec.  618.804  Agreements with the Secretary of Labor.

    (a) Authority. A State or CSA must, before performing any function 
or exercising any jurisdiction under the Act and this part, execute an 
Agreement meeting the requirements of the Act with the Secretary.
    (b) Execution. (1) An Agreement under paragraph (a) of this section 
must be signed and dated on behalf of the State or the CSA by an 
authorized official whose authority is certified by the State Attorney 
General or counsel for the CSA, unless the Agreement is signed by the 
Governor or the chief elected official of the State. In the event that 
a State does not execute an Agreement under paragraph (a) of this 
section, then sec. 3302(c)(3) of the Internal Revenue Code of 1986, as 
amended (26 U.S.C. 3302 (c)(3)) (loss of unemployment tax credits under 
sec. 3302(a) and (b)), applies.
    (2) A State or CSA must execute an amended Agreement with the 
Secretary, upon the request of the Secretary, in response to 
legislative or regulatory changes to the TAA Program.
    (3) The Secretary will execute an agreement on behalf of the United 
States.
    (c) Public access to Agreements. The CSA must make available for 
inspection and copying, an accurate copy of its Agreement under this 
section to any individual or organization that requests it. The CSA may 
furnish copies of the Agreement upon payment of the same charges, if 
any, as apply to the

[[Page 60264]]

furnishing of copies of other records of the CSA.
    (d) Agent of the United States. A State that has executed an 
Agreement under this section is an agent of the United States for 
purposes of receiving applications for and providing payments on the 
basis provided in this part and must carry out fully the purposes of 
the Act and this part.
    (e) Breach. If the Secretary determines that the State or CSA has 
not fulfilled its commitments under its Agreement stated in this 
section, the Secretary may terminate the Agreement. The Secretary must 
provide the State or CSA reasonable notice and an opportunity for a 
hearing before the Secretary makes a finding that the State has not 
fulfilled its commitments under its Agreement. In the event that the 
Secretary determines the State or CSA has not fulfilled its commitments 
under its Agreement, sec. 3302(c)(3) of the Internal Revenue Code of 
1986, as amended (regarding loss of unemployment tax credits under sec. 
3302(a) and (b)), applies.
    (f) Review of State and CSA compliance. The Department is 
responsible for monitoring and reviewing State and CSA compliance with 
the Agreement entered into under the Act and this section.
    (g) Merit staffing. States must comply with the staffing 
flexibility provisions contained in Sec.  618.890.
    (h) Contents. Each Agreement under this section must contain 
provisions including, but not limited to, the following:
    (1) Provisions consistent with the requirements of sec. 239 of the 
Act (19 U.S.C. 2311);
    (2) Authorization for the State to issue waivers under Sec.  
618.725 (waiver of the training requirement for Basic TRA) and the 
requirement that the State submit, upon request, to the Department a 
copy of each such waiver and, if not already contained within each 
waiver, a statement of the reasons for such waiver;
    (3) The requirement that the State supply data to the Department on 
national TAA Program performance goals identified in applicable 
regulations, the Department's written directives, or any other written 
means used to communicate such goals; and
    (4) Provisions establishing TAA Program funds as the primary source 
of Federal assistance to trade-affected workers. This means that 
following certification of a petition under subpart B of this part, the 
costs for providing services to a worker group should shift from WIOA 
and other programs to the TAA Program.
    (i) Administration absent State Agreement. (1) In any State in 
which no Agreement under this section is in effect, the Secretary will 
administer the Act and this part through appropriate arrangements made 
by the Department.
    (2) The Secretary will administer TAA in accordance with this part 
and the provisions of the applicable State law, except to the extent 
that such State law is inconsistent with this part, sec. 303 of SSA (42 
U.S.C. 503), or sec. 3304(a) of the Internal Revenue Code of 1986, as 
amended (26 U.S.C. 3304(a)).
    (3) The Secretary will provide for a fair hearing for any 
individual whose application for TAA is denied. A final determination 
as to eligibility for TAA will be subject to review as provided in 42 
U.S.C. 405(g), as required by sec. 240(b) of the Act.
    (4)(i) The Department will issue administrative guidance providing 
additional detail on the operation of the TAA Program within that 
State.
    (ii) Prior to providing administrative guidance, the Department 
will consult with the Governor, other State agencies, neighboring 
States, and other organizations to determine how best to ensure access 
to the TAA Program within that State. Options to administer the program 
that the Department may consider include, but are not limited to:
    (A) Executing an agreement with another State to operate the TAA 
Program;
    (B) Executing an agreement with a qualified organization within the 
State that adheres to all TAA Program requirements in this part to 
operate the TAA Program; and
    (C) Directly administering the TAA Program.
    (j) Program coordination. State agencies providing employment and 
case management services under subpart C of this part and training 
under subpart F of this part must, in accordance with their Agreements 
under this section, coordinate such services and payments with programs 
and services provided by WIOA and with the State agency administering 
the State law. Any agency of the State jointly administering such 
provisions under this Agreement must be considered to be a CSA for 
purposes of this part.


Sec.  618.808  State rulemaking.

    (a) A State may establish laws, regulations, procedures, or 
policies, not inconsistent with the Act or this part, or administrative 
guidance issued by the Department.
    (b) The State must submit the exact text of such proposed law, 
regulation, procedure, or policy, certified as accurate by a 
responsible official, employee, or counsel of the State, to the 
Department.
    (c) No law, regulation, procedure, or policy proposed under 
paragraph (a) of this section may become effective unless and until 
approved by the Department. The Department may grant approval on a 
temporary basis, not to exceed 90 days, in cases of administrative 
necessity.
    (d) The Department may withdraw approval at any time with 
reasonable notice of no less than 30 days to a State.
    (e) If public notice and opportunity for hearing would be required 
under State law for adoption of a similar law, regulation, procedure, 
or policy involving UI or other State or Federal law, the State must 
provide such public notice and opportunity for hearing.


Sec.  618.812  Subpoenas.

    (a) A State may require by subpoena the attendance of witnesses and 
production of evidence necessary for use in the determination of an 
individual's eligibility for TAA Program services and benefits or to 
obtain information needed to assist the Department in the petition 
determination process.
    (b) This power includes the ability of the State to subpoena an 
employer for information necessary to determine whether a certification 
covers a worker, including the name, address, and Social Security 
number of the worker.
    (c) The State may enforce compliance with subpoenas as provided 
under State law and, if a State court declines to enforce a subpoena 
issued under this section, or the State does not attempt a subpoena 
under State law, the State must petition for an order requiring 
compliance with such subpoena to the District Court of the United 
States with jurisdiction over the proceeding.


Sec.  618.816  Trade Adjustment Assistance Program benefit information 
and provision of services to workers.

    (a) Providing information to workers. State agencies must provide 
information to each worker who applies for UI about the benefit 
allowances, training, and other services available under this part, and 
about the application procedures, and the appropriate filing dates, for 
such allowances, training, and other services.
    (b) Rapid response and appropriate career services. States must 
ensure that rapid response assistance and appropriate career services, 
as described in sec. 134 of WIOA, are made available to members of a 
group of workers for whom a petition under subpart B of this part has 
been filed.

[[Page 60265]]

    (c) Providing reemployment services. (1) For trade-affected workers 
covered by a certification, States must:
    (i) Make available employment and case management services 
described in subpart C of this part, including testing, counseling, 
assessment, and placement services; and
    (ii) Provide referrals to, assistance in securing of, and approvals 
of training under subpart F of this part.
    (2) If funds provided to carry out this part are insufficient to 
make such services available, States must arrange to make such services 
available through other Federal programs.
    (d) Petition filing assistance. (1) States must facilitate the 
early filing of petitions for a group of workers that the State 
considers are likely to be eligible for TAA Program benefits.
    (2) For purposes of paragraph (d)(1) of this section, ``likely to 
be eligible'' means the State has a reasonable belief that a 
certification will be issued for the group of workers based on 
observations made by State staff; existence of certifications within 
the same industry, sector, or supply chain; or information or 
statements from the firm, union, workers, media coverage, or other 
reports.
    (3) States must provide assistance to enable individuals and other 
entities eligible to file to prepare petitions or applications for 
program benefits.
    (4) Petitions must be filed under paragraph (d)(1) of this section 
even if the firm, a union, elected officials, or members of the group 
of workers oppose the filing.
    (e) Providing information after issuance of a certification. (1) 
States must inform the State's board on vocational and technical 
education (also called the eligible agency, as defined in 20 U.S.C. 
2302(12)) or the equivalent agency in the State and other public or 
private agencies, institutions, and employers, as appropriate, of each 
certification issued under subpart B of this part and of projections, 
if available, of the needs for training under subpart F of this part as 
a result of such certification.
    (2) Upon receipt of a certification issued under subpart B of this 
part by the Department, the State must provide a written notice through 
the mail, of the benefits available under this part to each worker 
known to be covered by the certification when the worker becomes 
partially or totally separated or as soon as possible after the 
certification is issued if the worker is already partially or totally 
separated from adversely affected employment. The State must also 
provide notice to all workers threatened with separation who may be 
AAIWs. These notices must contain the following information:
    (i) The worker group(s) covered by the TAA certification and the 
article(s) produced or services rendered as specified in the copy of 
the certification furnished to the State;
    (ii) The name and the address or location of workers' firm;
    (iii) The impact, certification, and expiration dates in the 
certification document.
    (iv) A summary of benefits and services available to the workers;
    (v) An explanation of how, when, and where the workers may apply 
for TAA Program benefits and services;
    (vi) The training enrollment deadlines (set forth in Sec.  
618.720(c)) for TRA qualification;
    (vii) Whom to contact to get additional information on the 
certification; and
    (viii) A Babel notice (a short notice in multiple languages 
informing the reader that the communication contains vital information 
and explaining how to access language services to have the contents of 
the communication provided in other languages).
    (3) In order to identify these workers, the State must obtain from 
the firm, or another reliable source, the names and addresses of all 
workers who were partially or totally separated from adversely affected 
employment before the agency received the certification, and of all 
workers who are thereafter partially or totally separated or threatened 
with separation within the certification period. Provision of this 
information may be compelled under the subpoena provisions at Sec.  
618.812.
    (4) Upon receipt of a copy of a certification issued by the 
Department affecting workers in a State, the State must publish a 
notice of the certification in a newspaper of general circulation in 
areas in which such workers reside. The published notice must include 
the same information identified in paragraphs (e)(2)(i) through (viii) 
of this section.
    (5) Upon receipt of a copy of a certification issued by the 
Department, the State must perform outreach to, intake of, and 
orientation for trade-affected workers covered by the certification 
with respect to assistance and benefits available under this part.
    (6) In addition to the mailed written notice under paragraph (e)(2) 
of this section, States must also give notice to each worker by at 
least one method of modern electronic communication reasonably 
calculated to reach each worker. For example, States may give notice 
via email to a worker with a known email address, or by text to a 
worker with a known mobile phone number.
    (7) States may also use other modern methods of communication, such 
as websites and social media, to reach members of certified worker 
groups.
    (f) Specific benefit assistance to workers. States must:
    (1) Advise each trade-affected worker, as soon as practicable after 
the worker is separated from adversely affected employment or, if 
later, after a certification is issued, or upon notice of their 
threatened status, of the benefits and services available under this 
part, including the qualifying requirements, procedures, and deadlines 
for applying for such benefits and services.
    (2) Perform an intake interview for each trade-affected worker 
(unless the worker declines the interview) as soon as practicable after 
the worker is separated from adversely affected employment, after a 
certification is issued, or upon notice of their threatened status. The 
interview must be scheduled in time for the worker to meet the training 
enrollment deadline set forth in proposed Sec.  618.725(a). During the 
interview, States must provide information about all of the benefits 
available under this part.


Sec.  618.820  Determinations of eligibility; notices to individuals.

    (a) Determinations on initial applications. The State whose State 
law is the applicable State law must, upon the filing of an initial 
application by an individual, promptly determine the individual's 
eligibility for TAA Program benefits under this part and may accept for 
such purposes information and findings supplied by another State.
    (b) Determinations on subsequent applications. The State must, upon 
the filing of an application for payment of TRA, RTAA, subsistence and 
transportation, job search allowance, or relocation allowance, promptly 
determine whether the individual is eligible for such payment and, if 
eligible, the amount of such payment.
    (c) Redeterminations. The provisions for redeterminations under the 
applicable State law applies to determinations of eligibility for any 
benefit under this part.
    (d) Use of State law. In making determinations or redeterminations 
under this section, or in reviewing such determinations or 
redeterminations under Sec.  618.820, a State must apply the 
regulations in this part. As to matters committed by this part to be 
decided under the applicable State law, a CSA, a hearing officer, or a 
State court must apply the applicable State law and regulations 
thereunder, including the

[[Page 60266]]

procedural requirements of the applicable State law or regulations, 
except that no provision of State law or State regulations on good 
cause for waiver of any time limit, or for late filing of any claim, 
will apply to any time limitation referred to or specified in this 
part, unless such State law or regulation is made applicable by a 
specific provision of this part. However, States must follow the good 
cause provision at Sec.  618.730.
    (e) Notices to individuals. The State must notify individuals in 
writing of any determination or redetermination of eligibility to TAA 
Program benefits. Each determination or redetermination must inform the 
individual of the reason for the determination or redetermination and 
of the right to reconsideration or appeal in the same manner as 
determinations of entitlement to UI are subject to redetermination or 
appeal under the applicable State law.
    (f) Promptness. States must make full payment of TAA Program 
benefits when due with the greatest promptness that is administratively 
feasible.
    (g) Procedure. Except where otherwise required by the Act or this 
part, the procedures for making and furnishing determinations, the 
promptness standards, and written notices of determinations to 
individuals, must be consistent with the Department's ``Standard for 
Claim Determinations--Separation Information,'' Employment Security 
Manual, part V, secs. 6010 through 6015 (appendix B of this part).
    (h) Successor-in-interest. (1) States are authorized to determine 
whether a firm is a successor-in-interest to a firm named as the 
employer of a worker group on a determination issued under subpart B of 
this part.
    (2) The factors to be used to determine whether or not there is a 
successor-in-interest are established in Sec.  618.110.
    (3) If, after reviewing the successor-in-interest factors, the 
State believes that a denial of benefits is warranted, the State must 
file a new petition requesting an amendment to the certification under 
Sec.  618.250.


Sec.  618.824  Liable State and agent State responsibilities.

    (a) Liable State. The liable State, as defined in Sec.  618.110, is 
responsible for:
    (1) Making all determinations, redeterminations, and decisions on 
appeals on all claims for program benefits under this part, including 
job search and relocation allowances under subpart D of this part; RTAA 
under subpart E of this part; training under subpart F of this part; 
subsistence and transportation payments under subpart F of this part; 
Basic, Additional, and Completion TRA under subpart G of this part; and 
waivers and revocations of waivers under subpart G of this part;
    (2) Providing workers with general program information and 
assistance under Sec.  618.816;
    (3)(i) Providing rapid response assistance and appropriate career 
services, as described under sec. 134 of WIOA, to the group of workers 
in the State covered by the petition upon receiving notice of any such 
workers for whom a petition is filed.
    (ii) This includes making career services authorized under other 
Federal laws available to the workers covered by the petition to the 
extent authorized under such laws.
    (iii) In certain situations, based on the residency of the group of 
workers, it may be appropriate for agent States to also be involved in 
the provision of these services, but in all instances the liable State 
must be ultimately responsible for ensuring the provision of these 
services;
    (4) Providing information and assistance to trade-affected workers 
under Sec.  618.816(c) (reemployment services), (e) (information after 
a certification is issued), and (f) (specific benefit assistance to 
workers) upon receiving a certification issued by the Department with 
respect to affected workers at a firm or appropriate subdivision in the 
State;
    (5) Providing a list of eligible TAA recipients and eligible RTAA 
recipients, for HCTC purposes, to the Internal Revenue Service if HCTC 
is available; and
    (6) Assisting in other activities and functions required by the 
Governor-Secretary Agreement at Sec.  618.804, including assisting the 
Department in the review of petitions by verifying such information and 
providing such other assistance as the Department may request.
    (b) Agent State. The agent State, as defined in Sec.  618.110, is 
responsible for:
    (1) Providing interstate claimants with general program information 
and assistance under Sec.  618.816(a) and petition filing assistance 
under Sec.  618.816(d);
    (2) Cooperating fully with and assisting the liable State in 
carrying out its responsibilities, activities, and functions, including 
the provision of rapid response and appropriate career services, as 
needed;
    (3) Cooperating with the liable State in taking applications and 
claims for TAA Program benefits under this part;
    (4) Providing employment and case management services, as described 
in subpart C of this part, to trade-affected workers covered by a 
certification issued by the Department under this part;
    (5) Cooperating with the liable State by providing information that 
the liable State needs for it to issue determinations, 
redeterminations, and decisions on appeals on all claims for program 
benefits under this part, as described in paragraph (a)(1) of this 
section;
    (6) Securing, and paying the cost of, any approved training under 
subpart F of this part, and payment of subsistence and transportation 
under subpart F of this part, according to determinations issued by the 
liable State;
    (7) Paying costs under subpart D of this part for job search and 
relocation allowances; and
    (8) Assisting in other activities and functions required by the 
Agreement under Sec.  618.804, including assisting in the review of 
petitions by verifying information and providing such other assistance 
as the Department may request.
    (c) Responsibilities under this section. In most instances, the 
liable State and agent State will be the same State and is responsible 
for all of the activities and functions described in paragraphs (a) and 
(b) of this section.


Sec.  618.828  Appeals and hearings.

    (a) Applicable State law. Except as provided in paragraph (b) of 
this section, a determination or redetermination under this part (other 
than a determination on the eligibility of a group of workers under 
subpart B of this part, which is subject to review by the USCIT) is 
subject to review in the same manner and to the same extent as 
determinations and redeterminations under the applicable State law, and 
only in that manner and to that extent. Proceedings for review of a 
determination or redetermination may be consolidated or joined with 
proceedings for review of other determinations or redeterminations 
under the applicable State law where convenient or necessary. The right 
of appeal and opportunity for fair hearing for these proceedings must 
be consistent with sec. 303(a)(1) and (3) of SSA (42 U.S.C. 503(a)(1) 
and (3)).
    (b) Allegations of discrimination. Complaints alleging that a 
determination or redetermination under this part violates applicable 
Federal nondiscrimination laws administered by the U.S. Department of 
Labor must be handled in accordance with the procedures of 29 CFR parts 
31, 32, 35, 36, and 38, as applicable, and as provided in Sec.  618.894 
(nondiscrimination and equal opportunity requirements).

[[Page 60267]]

    (c) Appeals promptness. Appeals under paragraph (a) of this section 
must be decided with a degree of promptness meeting the Department's 
``Standard for Appeals Promptness--Unemployment Compensation'' (20 CFR 
part 650). Any provisions of the applicable State law for advancement 
or priority of UI cases on judicial calendars, or other provisions 
intended to provide for prompt payment of UI when due, must apply 
equally to proceedings involving eligibility for TAA Program benefits 
and services under this part.
    (d) Retroactivity. In the case of a redetermination or decision 
reversing a training denial, the redetermination or decision must be 
given effect retroactively to the date of issuance of the determination 
that was subsequently reversed. However, no costs of training may be 
paid unless such costs actually were incurred for training in which the 
individual participated. In addition, if a TRA application was filed 
and denied as a result of the training denial, TRA may only be paid 
with respect to any week during which the individual was actually 
participating in the training.


Sec.  618.832  Overpayments; penalties for fraud.

    (a) Determinations and repayment. (1) If a State, the Department, 
or a court of competent jurisdiction determines that any person has 
received any payment under this part to which the person was not 
entitled, including a payment referred to in paragraph (b) of this 
section, such person is required to repay such amount to the State or 
the Department, as appropriate, except that the State or the Department 
must waive such repayment if such State or the Department determines 
that:
    (i) The payment was made without fault on the part of such person; 
and
    (ii) Requiring such repayment would cause a financial hardship for 
the person (or their household, if applicable).
    (2) States must provide persons determined to have received TAA 
overpayments a reasonable opportunity to demonstrate their eligibility 
for waiver under the criteria in paragraphs (a)(1)(i) and (ii) of this 
section.
    (3) A financial hardship exists if recovery of the overpayment 
would result in the person's (or their household's) loss of or 
inability to pay for ordinary and necessary living expenses. This 
determination must take into account the income and resources 
(including liquid financial resources) reasonably available to the 
person (and their household).
    (4) Fault exists for purposes of paragraph (a)(1)(i) of this 
section if any of the following criteria are met:
    (i) Whether a material statement or representation was made by the 
person or individual in connection with the application for TAA that 
resulted in the overpayment, and whether the person knew or should have 
known that the statement or representation was inaccurate;
    (ii) Whether the person failed or caused another to fail to 
disclose a material fact in connection with an application for TAA that 
resulted in the overpayment, and whether the person knew or should have 
known that the fact was material;
    (iii) Whether the person knew or should have known that the person 
or individual was not entitled to the TAA payment;
    (iv) Whether, for any other reason, the overpayment resulted 
directly or indirectly, and partially or totally, from any act or 
omission of the person or of which the person or individual had 
knowledge, and that was erroneous or inaccurate or otherwise wrong; or
    (v) Whether there has been a determination of fraud under paragraph 
(b) of this section.
    (b) False representation or nondisclosure of material fact. In 
addition to any other penalty provided by law, a person will be 
permanently ineligible for any further payments under this part if a 
State, the Department, or a court of competent jurisdiction determines 
that:
    (1) Such person:
    (i) Knowingly made, or caused another to make, a false statement or 
representation of a material fact; or
    (ii) Knowingly failed, or caused another to fail, to disclose a 
material fact; and
    (2) As a result of such false statement or representation, or of 
such nondisclosure, such person has received any payment under this 
part to which the person was not entitled.
    (c) Notice of determination, fair hearing, and finality. Except for 
overpayments determined by a court of competent jurisdiction, no 
repayment may be required, and no deduction may be made, under this 
section until a determination under paragraph (a)(1) of this section by 
the State or the Department, as appropriate, has been made, notice of 
the determination and an opportunity for a fair hearing thereon has 
been given to the person concerned, and the determination has become 
final.
    (d) Training, job search and relocation allowances, and RTAA. (1) 
If a trade-affected worker fails, with good cause, to complete 
training, a job search, or a relocation, any payment or portion of a 
payment made under this part to such person or individual properly and 
necessarily expended in attempting to complete such training, job 
search, or relocation is not an overpayment.
    (2) If a trade-affected worker fails, without good cause, to 
complete training, a job search, or a relocation, then the portion of a 
payment for the noncompleted component of a benefit is an overpayment. 
Costs for the completed portions of the training program, job search, 
or relocation are not an overpayment.
    (3) For purposes of this paragraph (d), good cause exists if the 
worker acted diligently yet was unable to complete training, a job 
search, or relocation because of exigent circumstances. The State must 
determine good cause on a worker-by-worker basis.
    (4) An overpayment established under this paragraph (d) must be 
recovered or waived as provided in this section.
    (5) For RTAA, an individual meets the ``earns not more than $50,000 
each year in wages from reemployment'' requirement in sec. 246 of the 
Act for a given month if the monthly determination of annualized wages 
is accurate and complete at the time it is made. Payments derived from 
the annualized wage projection based on complete and accurate 
information at the time are valid payments that the individual was 
entitled to and are not overpayments.
    (e) Overpayment recovery of TAA Program funds by offset. Unless an 
overpayment is otherwise recovered or is waived, the State--
    (1) Must, subject to the limitation in paragraph (e)(3) of this 
section, recover the overpayment by deduction from any sums payable to 
such person under:
    (i) This part;
    (ii) Any Federal UI law administered by the State; or
    (iii) Any other Federal law administered by the State that provides 
for the payment of unemployment assistance or an allowance with respect 
to unemployment.
    (2) Must recover the overpayment from UI payable to such person 
under the applicable State law.
    (3) Must not allow any single deduction under this paragraph (e) to 
exceed 50 percent of the amount otherwise payable to the person; except 
that if the applicable State law provides for an overpayment recovery 
deduction that is less than 50 percent of the amount otherwise payable, 
such recovery must be equal to that lesser percentage.
    (f) Fraud detection and prevention. State procedures for the 
detection and

[[Page 60268]]

prevention of fraudulent overpayments of TAA benefits must be, at a 
minimum, the same as the procedures adopted by the State with respect 
to State unemployment compensation, and consistent with the 
Department's ``Standard for Fraud and Overpayment Detection,'' 
Employment Security Manual, part V, secs. 7510 through 7515 (appendix C 
to this part).
    (g) Person. For purposes of this section and Sec.  618.836 
(recovery of debts due the United States or others by TAA offset), a 
person includes, in addition to a trade-affected worker or other 
individual, any employer or other entity or organization as well as the 
officers and officials thereof, including any training provider as well 
as the officers and officials thereof, who may bear individual 
responsibility for the overpayment.
    (h) Criminal penalties. (1) Any person who makes a false statement 
of a material fact knowing it to be false, or knowingly fails to 
disclose a material fact under the circumstances described in paragraph 
(h)(1)(i) or (ii) of this section, must be imprisoned for not more than 
1 year, fined under title 18, United States Code, or both.
    (i) For the purpose of obtaining or increasing for that person or 
for any other person any payment authorized to be furnished under the 
Act or pursuant to an agreement under sec. 239 of the Act; or
    (ii) When providing information during an investigation of a 
petition under sec. 221 of the Act.
    (2) Whenever a violation under paragraph (h)(1) of this section is 
suspected, the State or the Department must refer the conduct to the 
U.S. Department of Labor Office of the Inspector General.


Sec.  618.836  Recovery of debts due the United States or to others by 
Trade Adjustment Assistance offset.

    (a) Debt due the United States. Notwithstanding any other provision 
of this part, the State must apply TAA benefits, payable under this 
part to a person (as described in Sec.  618.832(g)), for the recovery 
by offset of any debt due the United States from the person.
    (b) Debt due to others. The State must not apply TAA Program 
benefits for the payment of any debt of any person to any State or any 
other entity or person, except for TRA and RTAA benefits as required by 
Federal UI law.


Sec.  618.840  Uniform interpretation and application of this part.

    (a) First rule of construction. The implementing regulations in 
this part will be construed liberally to carry out the purposes of the 
Act.
    (b) Second rule of construction. The implementing regulations in 
this part will be construed to assure, insofar as possible, the uniform 
interpretation and application of the Act and this part throughout the 
United States.
    (c) Effectuating purposes and rules of construction. (1) To 
effectuate the purposes of the Act and this part and to assure uniform 
interpretation and application of the Act and this part throughout the 
United States:
    (i) A State must, upon request, forward to the Department, not 
later than 10 days from the date of the request, a copy of any 
administrative ruling on an individual's eligibility to TAA benefits 
under this part.
    (ii) Notwithstanding paragraph (c)(1)(i) of this section, a State 
must forward to the Department a copy of any determination or 
redetermination on an individual's eligibility to TAA benefits under 
this part appealed to the State's highest UI administrative appeals 
authority.
    (iii) A State must forward to the Department a copy of notice of 
the institution of a State or Federal court proceeding and any State or 
Federal court ruling on an individual's eligibility to TAA Program 
benefits under this part, within 10 days of the notice or ruling.
    (2) If the Department concludes that a determination, 
redetermination, or decision is inconsistent with the Department's 
interpretation of the Act or this part, the Department may at any time 
notify the State of the Department's view. Thereafter, the State must 
issue a redetermination or appeal if possible and must not follow such 
determination, redetermination, or decision as a precedent; and, in any 
subsequent proceedings that involve such determination, 
redetermination, or decision, or wherein such determination, 
redetermination, or decision is cited as precedent or otherwise relied 
upon, the State must inform the claims deputy or hearing officer or 
court of the Department's view and must make all reasonable efforts, 
including appeal or other proceedings in an appropriate forum, to 
obtain modification, limitation, or overruling of the determination, 
redetermination, or decision.
    (3) If the Department concludes that a determination, 
redetermination, or decision is patently and flagrantly violates of the 
Act or this part, the Department may at any time notify the State of 
the Department's view. If the determination, redetermination, or 
decision in question denies TAA to an individual, the State must follow 
the steps outlined in paragraph (c)(2) of this section. If the 
determination, redetermination, or decision in question awards TAA to 
an individual, the benefits are ``due'' within the meaning of sec. 
303(a)(1) of SSA (42 U.S.C. 503(a)(1)), and therefore must be paid 
promptly to the individual. However, the State must take the steps 
outlined in paragraph (c)(2) of this section, and payments to the 
individual may be temporarily delayed if redetermination or appeal 
action is taken not more than 1 business day following the day on which 
the first payment otherwise would be issued to the individual; and the 
redetermination action is taken or appeal is filed to obtain a reversal 
of the award of TAA and a ruling consistent with the Department's view; 
and the redetermination action or appeal seeks an expedited 
redetermination or appeal within not more than 2 weeks after the 
redetermination action is taken. If redetermination action is not taken 
or appeal is not filed within the above time limit, or a 
redetermination or decision is not obtained within the 2-week limit, or 
any redetermination or decision or order is issued that affirms the 
determination, redetermination, or decision awarding TAA or allows it 
to stand in whole or in part, the benefits awarded must be paid 
promptly to the individual.
    (4)(i) If any determination, redetermination, or decision, referred 
to in paragraph (c)(2) or (3) of this section, is treated as a 
precedent for any future application for TAA, the Secretary will decide 
whether the Agreement with the State entered into under the Act and 
this part will be terminated and Sec.  618.804(e) applied.
    (ii) In the case of any determination, redetermination, or decision 
that is not legally warranted under the Act or this part, including any 
determination, redetermination, or decision referred to in paragraph 
(c)(2) or (3) of this section, the Secretary will decide whether the 
State must restore the funds of the United States for any sums paid 
under such a determination, redetermination, or decision, and whether, 
in the absence of such restoration, the Agreement with the State will 
be terminated and Sec.  618.804(e) applied and whether other action 
must be taken to recover such sums for the United States.
    (5) A State may request, in writing, within 10 calendar days of 
receiving a notice under paragraph (c)(2) or (3) of this section, 
reconsideration of the notice. The State will have an opportunity to 
present its views and arguments if desired. The State must submit such 
a request to the Secretary and may include views and arguments on the 
matters the Secretary is to decide under paragraph (c)(3) of this 
section.

[[Page 60269]]

The Secretary must respond to the State's reconsideration request 
within 30 calendar days of receiving the request.
    (6) Concurrence of the Department with a determination, 
redetermination, or decision must not be presumed from the absence of a 
notice issued pursuant to this section.
    (d) Payment when due. If the determination, redetermination, or 
decision in question awards TAA Program benefits to an individual, the 
benefits are ``due'' within the meaning of sec. 303(a)(1) of SSA (42 
U.S.C. 503(a)(1)), and therefore must be paid promptly to the 
individual. Payments to the individual may be temporarily delayed if a 
redetermination is issued not more than 1 business day following the 
day on which the first payment otherwise would be issued to the 
individual; and the State seeks an expedited appeal decision within not 
more than 2 calendar weeks after the appeal is filed. If the 
redetermination is not issued or the appeal is not filed within the 
time limit in the preceding sentence, or the decision on appeal is not 
obtained within the 2-calendar week limit in the preceding sentence, or 
any decision on appeal is issued that affirms the determination, 
redetermination, or decision awarding benefits under this part or 
allows it to stand in whole or in part, the benefits awarded must be 
paid promptly to the individual.


Sec.  618.844  Inviolate rights to Trade Adjustment Assistance or 
Reemployment Trade Adjustment Assistance.

    (a) Except as specifically provided in this part, the rights of 
individuals to TAA Program benefits will be protected in the same 
manner and to the same extent as the rights of persons to UI are 
protected under the applicable State law. Such measures must include 
protection of applicants for TAA Program benefits from waiver, release, 
assignment, pledge, encumbrance, levy, execution, attachment, and 
garnishment of their rights to TAA Program benefits, except as provided 
in Sec. Sec.  618.832 (overpayments; penalties for fraud) and 618.836 
(recovery of debts due the United States or others by TAA offset).
    (b) In the same manner and to the same extent as the rights of 
persons to UI are protected under the applicable State law, individuals 
must be protected from discrimination and obstruction in regard to the 
right to seek, apply for, and receive any TAA Program benefit.


Sec.  618.848  Veterans' priority of service.

    The State must give priority for approval and funding of TAA 
Program benefits (including training, where the approval of training 
criteria are met) to a trade-affected worker meeting the veterans' 
priority of service criteria established under 38 U.S.C. 4215.


Sec.  618.852  Recordkeeping and disclosure of information 
requirements.

    (a) Recordkeeping. (1) Each State must make and maintain such 
records pertaining to the administration of the Act as the Department 
requires and must make all such records available for inspection, 
examination, and audit by such Federal officials as the Department may 
designate or as may be required by law.
    (2)(i) States must maintain records that contain any information 
that the Department determines to be appropriate in support of any 
reports that the Department may require, including those reports 
specified in Sec. Sec.  618.860(f) (general fiscal and administrative 
requirements) and 618.864(e) (TAA Program performance).
    (ii) States must maintain records as required by 2 CFR 200.333 for 
3 years, or as indicated at 2 CFR 200.333(a) through (f).
    (3) States must comply with the records requirements established in 
the Uniform Guidance at 2 CFR 200.333 through 200.337.
    (4) States must document that they provided or offered the 
employment and case management services described in subpart C of this 
part to all trade-affected workers, either in a paper-based or 
electronic case management system. States must make these systems 
available for review upon request by the Department. Additionally, the 
case management file of each participant must demonstrate that the 
State notified each worker of the training enrollment deadlines set 
forth in proposed Sec.  618.725(a).
    (b) Disclosure of information. (1) Information in records 
maintained by a State in administering the Act must be kept 
confidential, and information in such records may be disclosed only in 
the same manner and to the same extent as information with respect to 
UI and the entitlement of individuals thereto may be disclosed under 
the applicable State law. Such information must not, however, be 
disclosed to an employer or any other person except to the extent 
necessary to obtain information from the employer or other person for 
the purposes of this part. The provision in this paragraph (b)(1) on 
the confidentiality of information maintained in the administration of 
the Act does not apply in the following circumstances:
    (i) Disclosures to the Department;
    (ii) For the purposes of Sec.  618.832 or paragraph (a) of this 
section;
    (iii) For providing information, reports, and studies required by 
Sec.  618.856 (information, reports, and studies); or
    (iv) Where nondisclosure would be inconsistent with the Freedom of 
Information Act (5 U.S.C. 552) or the Privacy Act of 1974 (5 U.S.C. 
552a).
    (2) Where a State obtains confidential business information as part 
of assisting in an investigation under subpart B of this part, it must 
protect that information as required under that subpart.
    (c) Format of records and forms. Forms and records used and 
maintained by States in the administration of this part may exist in 
paper or electronic form or a combination thereof. Regardless of the 
medium, these records must be available and accessible as required 
under paragraph (a)(1) of this section for oversight purposes.
    (d) Electronic signatures. Electronic signatures are allowed where 
such use is in accordance with the Electronic Signatures in Global and 
National Commerce Act (Pub. L. 106-229).


Sec.  618.856  Information, reports, and studies.

    A State must furnish to the Department such information and reports 
and conduct such studies as the Department determines are necessary or 
appropriate for carrying out the purposes of the Act and this part.


Sec.  618.860  General fiscal and administrative requirements and cost 
classification.

    (a) Uniform fiscal and administrative requirements. (1) Each State 
receiving funds allocated for the TAA Program from the Department as an 
agent of the United States, must administer the TAA Program in 
accordance with the Uniform Guidance at 2 CFR part 200 and 2 CFR part 
2900 and with the funding agreement.
    (2) A State may expend funds awarded to it during a Federal fiscal 
year to carry out TAA Program activities under secs. 235 through 238 of 
the Act during that Federal fiscal year and the succeeding 2 Federal 
fiscal years.
    (3) Equipment, as described in 2 CFR 200.33 and computing devices, 
as described in 2 CFR 200.20, includes equipment acquired with TAA 
funds under both current and prior Agreements.
    (4) The addition method, described at 2 CFR 200.307, must be used 
for all program income earned under TAA grants. When the cost of 
generating program income has been charged to such grant, the gross 
amount earned

[[Page 60270]]

must be added to such grant. However, when these costs have not been 
charged to such grant, the cost of generating program income must be 
subtracted from the amount earned to establish the net amount of 
program income available for use under such grant.
    (b) Administrative costs. (1) The administrative cost limit for the 
fiscal year program funding allocation for training, job search 
assistance, and relocation allowances is included in the TAA Program 
Annual Funding Agreement, with which States must comply.
    (2) For purposes of the TAA Program, the costs of administration 
are the costs associated with performing the overall general 
administrative functions of the TAA Program in paragraphs (b)(2)(i) 
through (xviii) of this section and the coordination thereof within the 
American Job Center network established under WIOA:
    (i) Accounting, budgeting, financial and cash management functions;
    (ii) Procurement and purchasing functions;
    (iii) Property management functions;
    (iv) Personnel management functions;
    (v) Payroll functions;
    (vi) Coordinating the resolution of findings arising from audits, 
reviews, investigations, and incident reports;
    (vii) Audit functions;
    (viii) General legal services functions;
    (ix) Developing systems and procedures, including information 
systems, required for these administrative functions;
    (x) Processing applications for benefits under the Act;
    (xi) Rendering and issuing eligibility determinations under the 
Act;
    (xii) Performing oversight and monitoring responsibilities related 
to administrative functions;
    (xiii) Costs of goods and services required for administrative 
functions of the program, including goods and services such as rental 
or purchase of equipment, utilities, office supplies, postage, and 
rental and maintenance of office space;
    (xiv) Travel costs incurred for official business in carrying out 
administrative activities or the overall management of the TAA Program;
    (xv) Costs of information systems related to administrative 
functions (i.e., personnel, procurement, purchasing, property 
management, accounting, and payroll systems), including the purchase, 
systems development, and operating costs of such systems;
    (xvi) Processing waivers of training requirements under subpart G 
of this part;
    (xvii) Collecting, validating, and reporting data required under 
the Act; and
    (xviii) Providing RTAA under subpart E of this part.
    (3) Awards to subrecipients or contractors that are solely for the 
performance of administrative functions constitute administrative 
costs.
    (4) Personnel and related nonpersonnel costs of staff that perform 
both administrative functions specified in paragraph (b)(2) of this 
section and programmatic services or activities must be allocated as 
administrative or program costs to the benefitting cost objectives/
categories based on documented distributions of actual time worked or 
other equitable cost allocation methods.
    (5) Costs of the information systems in paragraphs (b)(5)(i) 
through (iii) of this section, including the purchase, systems 
development, and operational costs, are charged to the program 
category:
    (i) Tracking or monitoring of participant and performance 
information, including employment and case management services and 
activities;
    (ii) Employment statistics information, including job listing 
information, job skills information, and demand occupation information. 
States must leverage existing resources provided under other Federal 
programs; and
    (iii) Maintenance and enhancement of the systems specified in 
paragraphs (b)(5)(i) and (ii) of this section.
    (6) Wherever possible, States must make efforts to streamline the 
administrative activities and services listed in this section by 
minimizing duplication and effectively using information technology to 
improve services and leveraging resources across programs.
    (c) Prior approval. (1) Equipment purchases under the TAA Program 
are subject to the provisions at 2 CFR 200.313. In compliance with 2 
CFR 2900.16, prior approval is hereby provided for equipment purchases 
under the TAA Program.
    (2) As provided in 2 CFR 200.439(b)(1), the Department retains the 
prior approval requirement related to capital expenditures (2 CFR 
200.13) and for capital assets (2 CFR 200.12) other than equipment.
    (d) Audit and oversight requirements. (1) All States, local 
governments, nonprofit organizations, and for-profit entities that are 
recipients or subrecipients of TAA Program funds must follow the audit 
requirements under 2 CFR 200.500 through 200.521 and 2 CFR 2900.20.
    (2)(i) Oversight and monitoring. Each recipient and subrecipient of 
funds under the Act must conduct regular oversight and monitoring of 
its program and those of any subrecipients and contractors, as required 
under sec. 239(i) of the Act, as well as under 2 CFR part 200, 
including 2 CFR 200.328, 200.330, and 200.331, and Department 
exceptions at 2 CFR part 2900, in order to:
    (A) Determine that expenditures have been made against the proper 
cost categories and within the cost limitations specified in the Act, 
the regulations in this part, and administrative guidance;
    (B) Determine whether there is compliance with other provisions of 
the Act, the regulations in this part, and administrative guidance;
    (C) Assure compliance with 2 CFR part 200 and the Department's 
exceptions at 2 CFR part 2900; and
    (D) Determine compliance with the nondiscrimination, disability, 
and equal opportunity requirements of sec. 188 of WIOA, including the 
Assistive Technology Act of 1998 (29 U.S.C. 3003).
    (ii) Resolution of subrecipient-level findings. (A) The Governor is 
responsible for resolving findings that arise from the monitoring 
reviews, investigations, other Federal monitoring reviews, and audits 
(including under 2 CFR part 200) of subrecipients awarded funds through 
the Act.
    (B) A State must use the written monitoring and audit resolution, 
debt collection and appeal procedures that it uses for other Federal 
grant programs.
    (C) If a State does not have such written procedures as described 
in paragaph (d)(2)(ii)(B) of this section, it must prescribe standards 
and procedures to govern this grant program.
    (D) For subrecipients awarded funds through a recipient of grant 
funds, the direct recipient of the grant funds must have written 
monitoring and resolution procedures in place that are consistent with 
2 CFR part 200.
    (iii) Resolution of State findings. (A) The Secretary is 
responsible for resolving findings that arise from Federal audits, 
monitoring reviews, investigations, incident reports, and audits under 
2 CFR part 200 for direct recipients of Federal awards under the Act.
    (B) The Secretary will use the Department's audit resolution 
process, consistent with 2 CFR part 2900, subpart F.
    (C) A final determination issued by a Grant Officer under the 
process in this paragraph (d)(2)(iii) may be appealed to the DOL Office 
of Administrative Law

[[Page 60271]]

Judges under the procedures in 2 CFR 2900.22.
    (e) Government-wide debarment and suspension, and government-wide 
drug-free workplace requirements. All TAA Program fund recipients and 
subrecipients must comply with the Government-wide requirements for 
debarment and suspension under subparts G and H of 2 CFR part 180 and 
the Government-wide requirements for a drug-free workplace at 29 CFR 
part 98.
    (f) Fiscal reporting requirements for States. (1) In accordance 
with 2 CFR 200.327 and 2 CFR 2900.14, each State must submit a 
quarterly financial report to the Department as specified in the 
reporting instructions approved by OMB.
    (2) States must report financial data on an accrual basis, and 
cumulatively by funding year of appropriation. Financial data may also 
be required on specific program activities as specified in the 
reporting instructions as approved by OMB.
    (3) If the State's accounting system is not on the accrual basis of 
accounting, the State must develop accrual information through best 
estimates based on an analysis of the documentation on hand.
    (4) The State must:
    (i) Obligate funds on not less than a quarterly basis; and
    (ii) Periodically review obligations and, in an appropriate and 
timely manner, de-obligate funds when a participant drops, completes, 
or is no longer eligible for training.
    (g) Use of funds. Of the funds awarded to the States to carry out 
secs. 235 through 238 of the Act for a fiscal year, the State must use:
    (1) Not more than 10 percent for the costs of administration, 
provided in paragraph (b)(2)(i) of this section; and
    (2) Not less than 5 percent for employment and case management 
services under sec. 235 of the Act.
    (h) Technology. States must maintain sufficient and effective 
technology for the purpose of tracking and reporting required 
participant data, and to provide appropriate services under the TAA 
Program.
    (i) Designation of resources for Management Information Systems 
(MIS) development. States are required to dedicate an appropriate 
portion of administrative and employment and case management funding 
under TAA for management information systems development, upgrades, and 
ongoing maintenance.


Sec.  618.864  Trade Adjustment Assistance Program performance.

    (a) General rule. Each State must report to the Department 
comprehensive performance accountability measures, to consist of:
    (1) The primary indicators of performance described in paragraph 
(b) of this section;
    (2) The additional indicators of performance established under 
paragraph (c) of this section, if any; and
    (3) A description of efforts made to improve outcomes for workers 
under the TAA Program that promote efficient and effective program 
performance as provided in this section.
    (b) Primary indicators of performance--(1) Primary indicators. The 
primary indicators of performance shall consist of:
    (i) The percentage and number of workers who received benefits 
under the TAA Program who are in unsubsidized employment during the 
second calendar quarter after exit from the program;
    (ii) The percentage and number of workers who received benefits 
under the TAA Program and who are in unsubsidized employment during the 
fourth calendar quarter after exit from the program;
    (iii) The median earnings of workers who are in unsubsidized 
employment during the second quarter after exit from the program;
    (iv) The percentage and number of workers who received benefits 
under the TAA Program (excluding those in OJT and customized training) 
who obtain a recognized postsecondary credential or a secondary school 
diploma or its recognized equivalent, during participation in the 
program or within 1 year after exit from the program; and
    (v) The percentage and number of workers who received benefits 
under the TAA Program who, during a year while receiving such benefits, 
are in an education or training program that leads to a recognized 
postsecondary credential or employment and who are achieving measurable 
gains in skills toward such a credential or employment.
    (2) Indicator relating to credential attainment. For purposes of 
paragraph (b)(1)(iv) of this section, a worker who received benefits 
under the TAA Program who obtained a secondary school diploma or its 
recognized equivalent is included in the percentage counted for 
purposes of paragraph (b)(1)(iv) of this section only if the worker, in 
addition to obtaining such a diploma or its recognized equivalent, has 
obtained or retained employment or is in an education or training 
program leading to a recognized postsecondary credential within 1 year 
after exit from the program.
    (c) Additional indicators. The Department and a State may agree 
upon additional indicators of performance for the TAA Program, as 
appropriate.
    (d) Use of wage records. States must, consistent with State law, 
use quarterly wage record information, as defined in 20 CFR 677.175, in 
measuring the progress on program performance indicators in paragraphs 
(b) and (c) of this section.
    (1) The use of Social Security numbers from participants and such 
other information as is necessary to measure the progress of those 
participants through quarterly wage record information is authorized.
    (2) States that participate in data sharing agreements for the 
purposes of obtaining wage record information may use such data sharing 
agreements to obtain wage record information for workers who received 
benefits under the TAA Program.
    (3) To the extent that quarterly wage records are not available for 
a participant, States may use other information as is necessary to 
measure the progress of the participant.
    (e) Reporting requirements--(1) Data required. States must report 
TAA Program demographics, performance, and services data, identified in 
paragraphs (b) and (c) of this section, to the Department on such forms 
and in such manner as the Department may prescribe.
    (2) Data reliability and validity. States are required to establish 
procedures that are consistent with administrative guidance the 
Department issues to ensure the data States submit are valid and 
reliable.
    (f) Publication of performance results. The Department will 
publish, annually, through electronic means, including posting on the 
Department's website, the TAA Program performance results of the 
States.
    (g) Control measures--(1) In general. Each State must implement 
effective control measures to effectively oversee the operation and 
administration of the TAA Program and ensure the accurate collection of 
program data.
    (2) Location. The control measures must be internal to a system 
used by the State to collect data.
    (3) Purpose. States will implement these control measures in order 
to:
    (i) Oversee the operation and administration of the TAA Program 
under this part;
    (ii) Improve the timeliness and verifiability of reported data; and
    (iii) Verify the accuracy of reported data, and must require:
    (A) Periodic staff training;

[[Page 60272]]

    (B) Participation in data validation and integrity efforts, as 
directed by the Department;
    (C) Data analysis and monitoring on a quarterly basis to identify 
inaccurate data input;
    (D) Data analysis and monitoring on a quarterly basis to identify 
missing data; and
    (E) Resubmission of required reports upon correcting data the State 
identifies as a result of paragraphs (g)(3)(iii)(B) through (D) of this 
section.
    (4) Monitoring program. In order to ensure the effective and 
efficient operation of the TAA Program, States must adopt a formal 
monitoring program designed to review and audit worker files.
    (i) The monitoring program must be designed to identify and share 
best practices, identify and correct deficiencies, and identify and 
address staff training needs.
    (ii) A minimum quarterly random sample of 20 cases must be audited 
as part of the monitoring program and must include cases from at least 
2 certifications issued under subpart B of this part.
    (iii) The four quarterly samples within a calendar year must also 
cover at least four different areas of the State administering the 
program.
    (iv) If circumstances preclude a State from meeting the criteria in 
paragraphs (g)(4)(ii) and (iii) of this section, the State must contact 
the appropriate ETA regional office to design a monitoring program that 
better suits the TAA Program in that State, and make sure it is 
sufficient to ensure the accuracy and verifiability of such data.
    (h) Data on benefits received, training, outcomes, rapid response 
activities, and spending. Data submitted by the States must be 
sufficient to provide, at a minimum, the information required in sec. 
249B of the Act, including the following information:
    (1) The number of workers receiving benefits under the TAA Program;
    (2) The number of workers receiving each type of benefit, including 
employment and case management services, training, job search and 
relocation allowances, TRA (Basic, Additional, and Completion) and RTAA 
payments, and, to the extent feasible, the HCTC, if available;
    (3) The average time during which such workers receive each type of 
benefit;
    (4) The average number of weeks TRA were paid to workers;
    (5) The number of workers who report that they have received 
benefits under a prior certification in any of the 10 fiscal years 
preceding the fiscal year for which the data are collected under this 
section;
    (6) The number of workers who received TAA approved training, 
classified by major types of training, including but not limited to, 
classroom training, training through distance learning, training 
leading to an associate's degree, remedial education, prerequisite 
education, OJT, and customized training;
    (7) The number of workers who exited TAA approved training, 
including who received prelayoff training or part-time training at any 
time during that training;
    (8) The average duration of training and the average duration of 
training that does not include remedial or prerequisite education;
    (9) The number of training waivers granted, classified by type of 
waiver;
    (10) The number of workers who exited training and the average 
duration of such training;
    (11) The number of workers who do not complete training and the 
average duration of the training such workers completed;
    (12) The average cost per worker of receiving TAA approved 
training;
    (13) The percentage of workers who received TAA approved training 
and obtained unsubsidized employment in a field related to that 
training;
    (14) The age, preprogram educational level, and post-program 
credential attainment of the workers;
    (15) The median earnings of workers during the second calendar 
quarter after exit from the program, expressed as a percentage of the 
median earnings of such workers before the calendar quarter in which 
such workers began receiving benefits under this part;
    (16) The sectors in which workers are employed after receiving 
benefits under this part;
    (17) Whether rapid response activities were provided with respect 
to each petition filed;
    (18) The total amount of funds used to pay for TRA by the State; 
and
    (19) The total amount of the TaOA payments to the State.


Sec.  618.868  Unemployment Insurance.

    UI payable to an AAW shall not be denied or reduced for any week by 
reason of any right to a payment of TAA under the Act and this part.


Sec.  618.872  Travel under the Trade Adjustment Assistance Program.

    (a) TAA Program participants are subject to the FTR at 41 CFR 
chapters 300 through 304 for all travel paid for with TAA Program 
funds.
    (b) Except for the definition of ``commuting area,'' States may not 
apply State or local travel policies and restrictions to TAA Program 
participants receiving reimbursements for travel under the Act.
    (c) In instances where the FTR is silent or defers to the Federal 
agency's travel policies, the State must apply the relevant policies of 
the Department.


Sec.  618.876  Verification of eligibility for program benefits.

    (a) Overall program eligibility. In addition to all other 
eligibility criteria contained in this part, an individual must also be 
authorized to work in the United States to receive benefits under the 
TAA Program. States are required to verify the status of participants 
who are not a citizen or national of the United States.
    (b) Initial verification. All States are required, under sec. 
1137(d) of SSA (42 U.S.C. 1320b-7(d)), to initially verify the 
immigration status of self-reporting aliens who apply for UI through 
the system designated by the U.S. Customs and Immigration Service (or 
USCIS), currently the Systematic Alien Verification for Entitlement (or 
SAVE) program. No further verification is required except as described 
in paragraph (c) of this section.
    (c) Reverification. (1) Once a State has verified satisfactory 
immigration status initially, the State must reverify the worker's 
immigration status if the documentation provided during initial 
verification will expire during the period in which that worker is 
potentially eligible to receive benefits under this subchapter.
    (2) The State must conduct such redetermination in a timely manner, 
using the immigration status verification system described in sec. 
1137(d) of SSA (42 U.S.C. 1320b-7(d)) or by review of other 
documentation, as described in that provision.


Sec.  618.884  Special rule with respect to military service.

    (a) In general. Notwithstanding any other provision of this part, a 
State may waive any requirement of this part that the States determines 
is necessary to ensure that an AAW who is a member of a reserve 
component of the Armed Forces and serves a period of duty described in 
paragraph (b) of this section is eligible to receive a trade 
readjustment allowance, training, and other benefits under this part in 
the same manner and to the same extent as if the worker had not served 
the period of duty.
    (b) Period of duty described. An AAW serves a period of duty 
described in paragraph (a) of this section if, before

[[Page 60273]]

completing training under sec. 236 of the Act, the worker:
    (1) Serves on active duty for a period of more than 30 days under a 
call or order to active duty of more than 30 days; or
    (2) In the case of a member of the Army National Guard of the 
United States or Air National Guard of the United States, performs 
full-time National Guard duty under 32 U.S.C. 502(f) for 30 consecutive 
days or more when authorized by the President or the Secretary of 
Defense for the purpose of responding to a national emergency declared 
by the President and supported by Federal funds.


Sec.  618.888  Equitable tolling.

    (a) A TAA Program deadline must be equitably tolled when:
    (1) An extraordinary circumstance prevented an individual's timely 
action; and
    (2) The individual otherwise acted with diligence.
    (b)(1) When an individual fails to take timely action because the 
State failed to give notice required under this part, that failure is 
prima facie evidence of an extraordinary circumstance.
    (2) If the individual did not receive the required notice, but 
otherwise received actual notice with sufficient time to take timely 
action, the lack of receipt of the required notice is not evidence of 
an extraordinary circumstance.
    (c) A TAA Program deadline equitably tolled under this section is 
tolled for the time period during which the extraordinary circumstance 
exists. Once that circumstance is resolved, the time period that was 
tolled begins to run again.
    (d) Equitable tolling may extend an otherwise expired TAA Program 
deadline by no more than 36 months.


Sec.  618.890  Staffing flexibility.

    (a) Staff employed under a merit personnel system as provided in 
sec. 303(a)(1) of the Social Security Act must be used for all reviews 
of benefit determinations under applicable State law.
    (b) All determinations on eligibility for TAA Program benefits must 
be made by State staff, with the exception of the functions in 
paragraph (a) of this section, which must be made by staff meeting the 
criteria in paragraph (a) of this section.
    (c) All other functions under the TAA Program, not subject to 
paragraphs (a) and (b) of this section, may be provided under a variety 
of staffing models.


Sec.  618.894  Nondiscrimination and equal opportunity requirements.

    (a) States and subrecipients of financial assistance under the TAA 
Program are required to comply with the nondiscrimination and equal 
opportunity provisions codified in the Department's regulations at 29 
CFR parts 31, 32, 35, and 36.
    (b) States and subrecipients of financial assistance under the TAA 
Program are required to comply with the nondiscrimination and equal 
opportunity requirements of WIOA sec. 188 and its implementing 
regulations at 29 CFR part 38 if the agency or subrecipient:
    (1) Operates its TAA programs and activities as part of the one-
stop delivery system established under the WIOA; or
    (2) Otherwise satisfies the definition of ``recipient'' in 29 CFR 
38.4(zz).
    (c) Questions about the nondiscrimination requirements cited in 
this section may be directed to the Director, Civil Rights Center, U.S. 
Department of Labor, Room N-4123, 200 Constitution Avenue NW, 
Washington, DC 20210.
    (d)(1) This section does not affect the rights and protections (and 
exceptions thereto) available under any other Federal law or regulation 
regarding discrimination.
    (2) This section does not affect the rights and protections (and 
exceptions thereto) available under any other State or local law or 
regulation regarding discrimination, except as provided in paragraph 
(d)(3) of this section.
    (3) No State may discriminate on any basis protected by 29 CFR 
parts 31, 32, 35, 36, and 38 (and exceptions thereto), as applicable, 
in determining an individual's eligibility for any of the following:
    (i) Receiving aid, benefits, services, training, or employment;
    (ii) Participating in any TAA program or activity;
    (iii) Being employed by any State; or
    (iv) Practicing any occupation or profession.


Sec.  618.898  Applicable State law.

    (a) The applicable State law for an AAW remains the applicable 
State law for such worker until such worker becomes entitled to UI 
under the State law of another State (whether or not such worker files 
a UI claim in that other State).
    (b) For purposes of determining the applicable State law for UI 
entitlement:
    (1) A worker is deemed entitled to UI under a State law if such 
worker satisfies the base period employment and wage qualifying 
requirements of such State law;
    (2) In the case of a combined-wage claim, UI entitlement must be 
determined under the law of the paying State; and
    (3) In case of a Federal UI claim, or a joint State and Federal UI 
claim, UI entitlement must be determined under the law of the 
applicable State for such claims.

Subpart I--Allocation of Funds to States for Training and Other 
Activities

    Authority:  19 U.S.C. 2320; Secretary's Order No. 6-2010, 75 FR 
66267 (Oct. 27, 2010).


Sec.  618.900  Annual cap on funds available for Training and Other 
Activities.

    (a) The total amount of funds made available for the costs of 
carrying out secs. 235 through 238 of the Act, referenced here as 
Training and Other Activities (TaOA), will not exceed the annual cap 
established under sec. 236(a)(2)(A) of the Act. For each of Fiscal 
Years (FYs) 2015 through 2021, this cap is $450,000,000.
    (b) Funds obligated during a fiscal year to carry out activities 
under secs. 235 through 238 of the Act may be expended by the State 
receiving such funds during that fiscal year and the succeeding 2 
fiscal years.


Sec.  618.910  Initial allocation of funds.

    (a) Initial allocation. In the initial allocation for a fiscal 
year, the Department will allocate 65 percent of the funds available 
under sec. 236(a)(2)(A) of the Act for that fiscal year. The Department 
will announce the amount of each State's initial allocation of funds, 
determined in accordance with the requirements of this section, at the 
beginning of each fiscal year. The Department will determine this 
initial allocation on the basis of the total funds available under the 
annual cap for that year, even if the full amount has not been 
appropriated to the Department at that time.
    (b) Timing of the distribution of the initial allocation. The 
Department will, as soon as practical, distribute the initial 
allocation announced under paragraph (a) of this section. However, the 
Department will not distribute the full amount of the initial 
allocation until it receives the entire fiscal year's appropriation of 
funds for TaOA. If the full year's appropriated amount for TaOA is less 
than the annual cap on funds available for TaOA, then the Department 
will distribute 65 percent of the amount appropriated.
    (c) Hold harmless provision. Except as provided in paragraph (d) of 
this section, or required by the appropriation, in no case will the

[[Page 60274]]

amount of the initial allocation to a State in a fiscal year be less 
than 25 percent of the initial allocation to that State in the 
preceding fiscal year.
    (d) Minimum initial allocation. If a State has an adjusted initial 
allocation of less than $100,000, as calculated in accordance with 
paragraph (e)(2) of this section, that State will not receive an 
initial allocation, and the funds that otherwise would have been 
allocated to that State instead will be allocated among the other 
States in accordance with this section. A State that does not receive 
an initial allocation may apply to the Department under Sec.  
618.920(b) for reserve funds to obtain funding for TaOA.
    (e) Process of determining initial allocation. (1) The Department 
will first apply the factors described in paragraph (f) of this section 
to determine an unadjusted initial allocation for each State.
    (2) The Department will then apply the hold harmless provision of 
paragraph (c) of this section to the unadjusted initial allocation, as 
follows:
    (i) A State whose unadjusted initial allocation is less than its 
hold harmless amount but is $100,000 or more, will have its initial 
allocation adjusted up to its hold harmless amount in accordance with 
paragraph (c) of this section. If a State's unadjusted allocation is 
less than $100,000, the State will receive no initial allocation, in 
accordance with paragraph (d) of this section, and those funds will be 
distributed among the other States as provided in paragraph (e)(3) of 
this section.
    (ii) A State whose unadjusted initial allocation is no less than 
its hold harmless threshold will receive its hold harmless amount and, 
in addition, will receive an adjustment equal to the State's share of 
the remaining initial allocation funds, as provided in paragraph (e)(3) 
of this section.
    (3) Any initial allocation funds remaining after the adjustments to 
initial allocations are applied as described in paragraph (e)(2)(i) of 
this section will be distributed among the States with unadjusted 
initial allocations that were no less than their respective hold 
harmless amounts, as described in paragraph (e)(2)(ii) of this section 
(the remaining States). The distribution of the remaining initial 
allocation funds among the remaining States will be made by using the 
formula in paragraph (f) of this section. This recalculation will 
disregard States receiving only their hold harmless amount under 
paragraph (e)(2)(i) of this section, so that the combined percentages 
of the remaining States total 100 percent.
    (f) Initial allocation factors. (1) In determining how to make the 
initial allocation of funds, the Department will apply, as provided in 
paragraph (f)(3) of this section, the following factors with respect to 
each State:
    (i) Factor 1: The trend in the number of trade-affected workers 
covered by certifications during the most recent 4 consecutive calendar 
quarters for which data are available. The trend will be established by 
assigning a greater weight to the most recent quarters, giving those 
quarters a larger share of the factor;
    (ii) Factor 2: The trend in the number of workers participating in 
training during the most recent 4 consecutive calendar quarters for 
which data are available. The trend will be established by assigning a 
greater weight to the most recent quarters, giving those quarters a 
larger share of the factor;
    (iii) Factor 3: The number of workers estimated to be participating 
in training during the fiscal year. The estimate will be calculated by 
dividing the weighted average number of workers in training for the 
State determined in paragraph (f)(1)(ii) of this section by the sum of 
the weighted averages for all States and multiplying the resulting 
ratio by the projected national average of workers in training for the 
fiscal year, using the projection methodology underlying the 
Department's most recent budget submission or update; and
    (iv) Factor 4: The amount of funding estimated to be necessary to 
provide TAA approved training to such workers during the fiscal year. 
The estimate will be calculated by multiplying the estimated number of 
training participants in paragraph (f)(1)(iii) of this section by the 
average training cost for the State. The average training cost will be 
calculated by dividing total training expenditures for the most recent 
4 quarters by the average number of training participants for the same 
time period.
    (2) The four factors listed in paragraphs (f)(1)(i) through (iv) of 
this section are given equal weight.
    (3) For each of the factors in paragraphs (f)(1)(i) through (iv) of 
this section, the Department will determine the national total and each 
State's percentage of the national total. Based on a State's percentage 
of each of these factors, the Department will determine the percentage 
that the State will receive of the total amount available for initial 
allocation for that fiscal year. The percentages of the initial 
allocation amount for all States combined will total 100 percent of the 
total amount of the initial allocation.


Sec.  618.920  Reserve fund distributions.

    (a) The 35 percent of the TaOA funds for a fiscal year that remains 
after the initial allocation will be held by the Department as a 
reserve. Reserve funds will be used, as needed, for additional 
distributions to States during the remainder of the fiscal year, 
including distributions to those States that did not receive an initial 
allocation. The amount of any distributions of reserve funds will be 
determined by the Department within the time frame described in Sec.  
618.930, as appropriate, considering the information provided in 
reserve fund requests submitted by States as described in paragraph (b) 
of this section and the level of reserve funds available.
    (b) A State requesting reserve funds must demonstrate that:
    (1) At least 50 percent of its TaOA funds from the current year (if 
any were received) and previous fiscal years have been expended; or
    (2) The State needs additional TaOA funds to meet demands for 
services due to unusual and unexpected events, which includes an 
unexpected increase in the number of trade-affected workers eligible 
for TaOA.
    (c) A State requesting reserve funds under paragraph (b) of this 
section also must provide a documented estimate of funding needs 
through the end of the fiscal year. That estimate must be based on an 
analysis that includes at least the following:
    (1) The average cost of training in the State;
    (2) The expected number of participants in training through the end 
of the fiscal year; and
    (3) The remaining TaOA funds the State has available.


Sec.  618.930  Second distribution.

    The Department will distribute at least 90 percent of the total 
TaOA funds (including Sec.  618.920 reserve funds) for a fiscal year to 
the States no later than July 15 of that fiscal year. The Department 
will first fund all acceptable requests for reserve funds filed before 
June 1. After these requests are satisfied, any funds remaining will be 
distributed to those States that received an initial allocation in an 
amount greater than their hold harmless amount, using the methodology 
described in Sec.  618.910. Any funds remaining after the second 
distribution will be available for allotment under Sec.  618.920.


Sec.  618.940  Insufficient funds.

    If, during a fiscal year, the Department estimates that the amount 
of funds necessary to provide TaOA will exceed the annual cap under 
Sec.  618.900, the

[[Page 60275]]

Department will decide how the available funds that have not been 
distributed at the time of the estimate will be allocated among the 
States for the remainder of the fiscal year, and will communicate this 
decision to States through administrative guidance.


Sec.  618.950  Recapture and reallocation of Training and Other 
Activities funds.

    (a) The Department may:
    (1) Recapture funds that were allocated to any State to carry out 
secs. 235 through 238 of the Act and that remain unobligated by the 
State during the second or third fiscal year after the fiscal year in 
which the funds were provided to the State; and
    (2) Reallocate recaptured funds to States to carry out secs. 235 
through 238 of the Act, in accordance with procedures established in 
this section.
    (b) The Department may recapture and reallocate funds as authorized 
by paragraph (a) of this section if the Department determines:
    (1) There are, or are projected to be, insufficient funds in a 
State or States to carry out the activities described in secs. 235 
through 238 of the Act for a fiscal year; or
    (2) The recapture and reallocation of funds would likely promote 
the more efficient and effective use of funds among States to carry out 
the activities described in secs. 235 through 238 of the Act for a 
fiscal year.
    (c) If the Department makes a determination described in paragraph 
(b)(1) of this section for a fiscal year, the Department may recapture 
funds, to the extent needed, from one or more of the State or States 
that have the highest percentage of unobligated or unexpended funds 
from the second or third fiscal year after the fiscal year in which the 
funds initially were allocated to such States, as determined by the 
Department, and reallocate those funds to the States with, or projected 
to have, insufficient funds. In making the determination that a State 
has or is projected to have insufficient funds to carry out the 
activities described in secs. 235 through 238 of the Act for a fiscal 
year, the Department may consider a request submitted by the State in 
accordance with information required under Sec.  618.920(b) or base 
such determination on other information the Department determines is 
appropriate.
    (d) If the Department makes a determination described in paragraph 
(b)(2) of this section for a fiscal year, the Department may recapture 
funds from the State or States that have the highest percentage of 
unobligated or unexpended funds from the second or third fiscal year 
after the fiscal year in which the funds were initially allocated to 
such States, as determined by the Department, and reallocate those 
funds to:
    (1) The States with the lowest percentage of unobligated or 
unexpended funds from the second or third fiscal year after the fiscal 
year in which the funds initially were allocated to such States as 
determined by the Department, based on such additional factor or 
factors as the Department determines is or are appropriate; or
    (2) All States from which funds are not being recaptured, in 
accordance with the formula factors described in Sec.  618.910(f), 
relating to the initial distribution of funds.
    (e) If the Department determines to recapture and reallocate funds 
pursuant to this section, an administrative notice must be issued to 
the States describing the methodology used and the amounts to be 
recaptured from and reallocated to each affected State, not less than 
15 business days in advance of the recapture of funds.
    (f) The reallocation of funds under this section does not extend 
the period of availability for the expenditure of those funds, which 
expenditure period remains 2 fiscal years after the fiscal year in 
which the funds were initially allocated by the Department to the State 
from which the funds are recaptured.

PART 90--[REMOVED AND RESERVED]

0
5. Remove and reserve 29 CFR part 90.

    Signed at Washington, DC.
John P. Pallasch,
Assistant Secretary for Employment and Training, Labor.
[FR Doc. 2019-20788 Filed 11-6-19; 8:45 am]
 BILLING CODE 4510-FN-P