Air Carrier Worker Support Extension Act of 2020
This bill extends authority for the Department of the Treasury to provide financial assistance to passenger air carriers, cargo air carriers, and contractors of passenger air carriers for the continuation of payment of employee wages, salaries, and benefits.
The maximum amounts of financial assistance that may be provided by Treasury for this purpose are $25.5 billion for passenger air carriers, $300 million for cargo air carriers, and $3 billion for contractors .
The bill provides specific deadlines and procedures under which Treasury must provide financial assistance to air carriers and contractors.
To be eligible for financial assistance, an air carrier or contractor must (1) agree not to reduce pay and benefits or conduct involuntary furloughs until March 31, 2021; and (2) agree, through March 31, 2022, not to repurchase stock, pay dividends, or make other capital distributions. Additionally, Treasury may require carriers that receive assistance to maintain service to points served before March 1, 2020. Such authority terminates on April 1, 2022.
The bill limits the maximum allowable compensation of an officer or employee of an air carrier or contractor that receives assistance.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8345 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 8345
To provide support for air carrier workers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 22, 2020
Ms. Plaskett (for herself and Mr. Joyce of Ohio) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committee on Transportation and
Infrastructure, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide support for air carrier workers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Air Carrier Worker Support Extension
Act of 2020''.
SEC. 2. DEFINITIONS.
Unless otherwise specified, the terms in section 40102(a) of title
49, United States Code, shall apply to this Act, except that--
(1) the term ``airline catering employee'' means an
employee who performs airline catering services;
(2) the term ``airline catering services'' means
preparation, assembly, or both, of food, beverages, provisions
and related supplies for delivery, and the delivery of such
items, directly to aircraft or to a location on or near airport
property for subsequent delivery to aircraft;
(3) the term ``contractor'' means--
(A) a person that performs, under contract with a
passenger air carrier conducting operations under part
121 of title 14, Code of Federal Regulations--
(i) catering functions; or
(ii) functions on the property of an
airport that are directly related to the air
transportation of persons, property, or mail,
including but not limited to the loading and
unloading of property on aircraft; assistance
to passengers under part 382 of title 14, Code
of Federal Regulations; security; airport
ticketing and check-in functions; ground-
handling of aircraft; or aircraft cleaning and
sanitization functions and waste removal; or
(B) a subcontractor that performs such functions;
(4) the term ``employee'' means an individual, other than a
corporate officer, who is employed by an air carrier or a
contractor; and
(5) the term ``Secretary'' means the Secretary of the
Treasury.
SEC. 3. PANDEMIC RELIEF FOR AVIATION WORKERS.
(a) Financial Assistance for Employee Wages, Salaries, and
Benefits.--Notwithstanding any other provision of law, to preserve
aviation jobs and compensate air carrier industry workers, the
Secretary shall provide financial assistance that shall exclusively be
used for the continuation of payment of employee wages, salaries, and
benefits to--
(1) passenger air carriers, in an aggregate amount up to
$25,500,000,000;
(2) cargo air carriers, in the aggregate amount up to
$300,000,000; and
(3) contractors, in an aggregate amount up to
$3,000,000,000.
(b) Administrative Expenses.--Notwithstanding any other provision
of law, the Secretary, may use $100,000,000 of the funds made available
under section 11(a) for costs and administrative expenses associated
with providing financial assistance under this Act.
SEC. 4. PROCEDURES FOR PROVIDING PAYROLL SUPPORT.
(a) Awardable Amounts.--The Secretary shall provide financial
assistance under this Act--
(1) to an air carrier required to file reports pursuant to
part 241 of title 14, Code of Federal Regulations, as of March
27, 2020, in an amount equal to--
(A) the amount such air carrier received under
section 4113 of the CARES Act (15 U.S.C. 9073); or
(B) at the request of such air carrier, the amount
of the salaries and benefits reported by the air
carrier to the Department of Transportation pursuant to
such part 241, for the period from October 1, 2019,
through March 31, 2020;
(2) to an air carrier that did not transmit reports under
such part 241, as of March 27, 2020, in an amount equal to--
(A) the amount such air carrier received under
section 4113 of the CARES Act (15 U.S.C. 9073), plus an
additional 15 percent of such amount; or
(B) at the request of such carrier, the sum of--
(i) the amount that such air carrier
certifies, using sworn financial statements or
other appropriate data, as the amount of total
salaries and related fringe benefits that such
air carrier incurred and would be required to
be reported to the Department of Transportation
pursuant to such part 241, if the carrier were
required to transmit such information during
the period from April 1, 2019, through
September 30, 2019; and
(ii) an additional amount equal to the
difference between the amount certified under
clause (i) and the amount the air carrier
received under section 4113 of the CARES Act
(15 U.S.C. 9073); and
(3) to a contractor in an amount equal to the amount such
contractor received under section 4113 of the CARES Act (15
U.S.C. 9073).
(b) Additional Awardable Amounts.--The Secretary shall provide
financial assistance under this Act to an air carrier that did not
receive assistance under section 4113 of the CARES Act (15 U.S.C. 9073)
and does not transmit reports under such part 241 in an amount that
such an air carrier certifies, using sworn financial statements or
other appropriate data, as the amount of total salaries and related
fringe benefits that such air carrier incurred and would be required to
be reported to the Department of Transportation pursuant to such part
241, if the carrier were required to transmit such information during
the period from April 1, 2019, through September 30, 2019.
(c) Deadlines and Procedures.--
(1) In general.--
(A) Forms; terms and conditions.--Financial
assistance provided to an air carrier or contractor
under this Act shall be in such form, on such terms and
conditions (including requirements for audits and the
clawback of any financial assistance provided upon
failure by a passenger air carrier, cargo air carrier,
or contractor to honor the assurances specified in
section 5), as agreed to by the Secretary and the
recipient for assistance received under section 4113 of
the CARES Act (15 U.S.C. 9073), except where
inconsistent with this Act.
(B) Procedures.--The Secretary shall publish
streamlined and expedited procedures not later than 5
days after the date of enactment of this Act for air
carriers and contractors to submit requests for
financial assistance under this Act.
(2) Deadline for immediate payroll assistance.--Not later
than 10 days after the date of enactment of this Act, the
Secretary shall make initial payments to air carriers and
contractors that submit requests for financial assistance
approved by the Secretary.
(3) Subsequent payments.--The Secretary shall determine an
appropriate method for timely distribution of payments to air
carriers and contractors with approved requests for financial
assistance from any funds remaining available after providing
initial financial assistance payments under paragraph (2).
(d) Pro Rata Reductions.--The amounts under subsections (a)(1)(B),
(a)(2)(B)(i), and (b) shall, to the maximum extent practicable, be
subject to the same pro rata reduction applied by the Secretary to
passenger or cargo air carriers, as applicable, that received
assistance under section 4113 of the CARES Act (15 U.S.C. 9073).
(e) Audits.--The Inspector General of the Department of the
Treasury shall audit certifications made under subsection (a) or (b).
SEC. 5. REQUIRED ASSURANCES.
(a) In General.--To be eligible for financial assistance under this
Act, an air carrier or contractor shall enter into an agreement with
the Secretary, or otherwise certify in such form and manner as the
Secretary shall prescribe, that the air carrier or contractor shall--
(1) refrain from conducting involuntary furloughs or
reducing pay rates and benefits until March 31, 2021;
(2) through March 31, 2022, ensure that neither the air
carrier or contractor nor any affiliate of the air carrier or
contractor may, in any transaction, purchase an equity security
of the air carrier or contractor or the parent company of the
air carrier or contractor that is listed on a national
securities exchange;
(3) through March 31, 2022, ensure that the air carrier or
contractor shall not pay dividends, or make other capital
distributions, with respect to the common stock (or equivalent
interest) of the air carrier or contractor; and
(4) meet the requirements of sections 6 and 7.
(b) Department of Transportation Authority To Condition Assistance
on Continuation of Service.--
(1) In general.--The Secretary of Transportation is
authorized to require, to the extent reasonable and
practicable, an air carrier provided financial assistance under
this Act to maintain scheduled air transportation service, as
the Secretary of Transportation deems necessary, to ensure
services to any point served by that carrier before March 1,
2020.
(2) Required considerations.--When considering whether to
exercise the authority provided by this subsection, the
Secretary of Transportation shall take into consideration the
air transportation needs of small and remote communities and
the need to maintain well-functioning health care supply
chains, including medical devices and supplies, and
pharmaceutical supply chains.
(3) Sunset.--The authority provided under this subsection
shall terminate on April 1, 2022, and any requirements issued
by the Secretary of Transportation under this subsection shall
cease to apply after that date.
SEC. 6. PROTECTION OF COLLECTIVE BARGAINING AGREEMENT.
(a) In General.--Neither the Secretary, nor any other actor,
department, or agency of the Federal Government, shall condition the
issuance of financial assistance under this Act on an air carrier's or
contractor's implementation of measures to enter into negotiations with
the certified bargaining representative of a craft or class of
employees of the air carrier or contractor under the Railway Labor Act
(45 U.S.C. 151 et seq.) or the National Labor Relations Act (29 U.S.C.
151 et seq.), regarding pay or other terms and conditions of
employment.
(b) Period of Effect.--With respect to an air carrier or contractor
to which financial assistance is provided under this Act, this section
shall be in effect with respect to the air carrier or contractor
beginning on the date on which the air carrier or contractor is first
issued such financial assistance and ending on March 31, 2021.
SEC. 7. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.
(a) In General.--The Secretary may only provide financial
assistance under this Act to an air carrier or contractor after such
carrier or contractor enters into an agreement with the Secretary which
provides that, during the 2-year period beginning March 24, 2020, and
ending March 24, 2022, no officer or employee of the air carrier or
contractor whose total compensation exceeded $425,000 in calendar year
2019 (other than an employee whose compensation is determined through
an existing collective bargaining agreement entered into prior to
enactment of this Act)--
(1) will receive from the air carrier or contractor total
compensation which exceeds, during any 12 consecutive months of
such 2-year period, the total compensation received by the
officer or employee from the air carrier or contractor in
calendar year 2019;
(2) will receive from the air carrier or contractor
severance pay or other benefits upon termination of employment
with the air carrier or contractor which exceeds twice the
maximum total compensation received by the officer or employee
from the air carrier or contractor in calendar year 2019; and
(3) no officer or employee of the eligible business whose
total compensation exceeded $3,000,000 in calendar year 2019
may receive during any 12 consecutive months of such period
total compensation in excess of the sum of--
(A) $3,000,000; and
(B) 50 percent of the excess over $3,000,000 of the
total compensation received by the officer or employee
from the eligible business in calendar year 2019.
(b) Total Compensation Defined.--In this section, the term ``total
compensation'' includes salary, bonuses, awards of stock, and other
financial benefits provided by an air carrier or contractor to an
officer or employee of the air carrier or contractor.
SEC. 8. TAX PAYER PROTECTION.
(a) CARES Act Assistance Recipients.--With respect to a recipient
of assistance under section 4113 of the CARES Act (15 U.S.C. 9073) that
receives assistance under this Act, the Secretary may receive warrants,
options, preferred stock, debt securities, notes, or other financial
instruments issued by such recipient in the same form and amount, and
under the same terms and conditions, as agreed to by the Secretary and
the recipient for assistance received under such section 4113 to
provide appropriate compensation to the Federal Government for the
provision of the financial assistance under this Act.
(b) Other Applicants.--With respect to an applicant that did not
receive assistance under such section 4113, the Secretary may receive
warrants, options, preferred stock, debt securities, notes, or other
financial instruments issued by an applicant that receives assistance
under this Act in a form and amount that are, to the maximum extent
practicable, the same as the terms and conditions as agreed to by the
Secretary and similarly situated recipients of assistance under such
section 4113 to provide appropriate compensation to the Federal
Government for the provision of the financial assistance under this
Act.
SEC. 9. REPORTS.
(a) Report.--Not later than May 1, 2021, the Secretary shall submit
to the Committee on Transportation and Infrastructure and the Committee
on Financial Services of the House of Representatives and the Committee
on Commerce, Science, and Transportation and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report on the financial
assistance provided to air carriers and contractors under this Act,
including a description of any financial assistance provided.
(b) Update.--Not later than the last day of the 1-year period
following the date of enactment of this Act, the Secretary shall update
and submit to the Committee on Transportation and Infrastructure and
the Committee on Financial Services of the House of Representatives and
the Committee on Commerce, Science, and Transportation and the
Committee on Banking, Housing, and Urban Affairs of the Senate the
report described in subsection (a).
SEC. 10. COORDINATION.
In implementing this Act, the Secretary shall coordinate with the
Secretary of Transportation.
SEC. 11. FUNDING.
(a) Direct Appropriation.--Notwithstanding any other provision of
law, there is appropriated, out of amounts in the Treasury not
otherwise appropriated, $11,400,000,000 to carry out this Act.
(b) Transfer of Unobligated CARES Act Funds.--In addition to the
amount appropriated under subsection (a) to carry out this Act, the
amounts made available under the following provisions of law are hereby
transferred and made available to the Secretary to carry out this Act:
(1) $3,100,000,000 from subsection (b)(2) of section 4003
of the CARES Act (15 U.S.C. 9042).
(2) $11,100,000,000 from subsection (b)(3) of section 4003
of the CARES Act (15 U.S.C. 9042).
(3) $3,200,000,000 from subsection (a)(2) of section 4112
of the CARES Act (15 U.S.C. 9072).
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Aviation.
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