Aviation Manufacturing Jobs Protection Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 8002 To establish a program to preserve jobs in the aviation manufacturing industry, and for other purposes. IN THE HOUSE OF REPRESENTATIVES AUGUST 11, 2020 Mr. ESTES (for himself, Mr. LARSEN of Washington, Mr. MARSHALL, Mr. COLE, Mr. CONNOLLY, Ms. DAVIDS of Kansas, Ms. SCHRIER, and Mr. CARBAJAL) introduced the following bill; which was referred to the Com- mittee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the juris- diction of the committee concerned A BILL To establish a program to preserve jobs in the aviation manufacturing industry, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Aviation Manufac- 4 turing Jobs Protection Act of 2020’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 02:09 Aug 29, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8002.IH H8002 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 8002 IH (1) AT-RISK EMPLOYEE GROUP.—The term ‘‘at- 1 risk employee group’’ means— 2 (A) the 25 percent of an employer’s United 3 States workforce that is most at risk of a per- 4 manent reduction in force or furlough due to 5 the COVID–19 public health emergency; but 6 (B) does not include senior executive em- 7 ployees. 8 (2) AVIATION EMPLOYER.—The term ‘‘aviation 9 employer’’ means an aviation manufacturing com- 10 pany. 11 (3) AVIATION MANUFACTURING COMPANY.— 12 The term ‘‘aviation manufacturing company’’ means 13 a corporation, firm, or other business entity that— 14 (A) holds a type or production certificate 15 or similar authorization issued under section 16 44704 of title 49, United States Code; 17 (B) holds a certificate issued under part 18 145 of title 14, Code of Federal Regulations, 19 for maintenance, repair, and overhaul of air- 20 craft, aircraft engines, components, or propel- 21 lers; or 22 (C) under contract or subcontract, pro- 23 duces components, parts, or systems of aircraft, 24 VerDate Sep 11 2014 02:09 Aug 29, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8002.IH H8002 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 8002 IH aircraft engines, or appliances for inclusion in 1 an aircraft, aircraft engine, or appliance. 2 (4) COVID–19 PUBLIC HEALTH EMERGENCY.— 3 The term ‘‘COVID–19 public health emergency’’ 4 means the public health emergency with respect to 5 the 2019 Novel Coronavirus. 6 (5) SENIOR EXECUTIVE EMPLOYEE.—The term 7 ‘‘senior executive employee’’ means a chief executive 8 officer, chief operating officer, or chief financial offi- 9 cer. 10 (6) TOTAL COMPENSATION LEVEL.—The term 11 ‘‘total compensation level’’ means the level of total 12 base compensation and benefits of an employee, ex- 13 cluding overtime and premium pay, as of April 1, 14 2020. 15 SEC. 3. PAYROLL SUPPORT EXTENSION PROGRAM. 16 (a) IN GENERAL.—The Secretary of the Treasury, in 17 coordination with the Secretary of Transportation, shall 18 establish a payroll support extension program to enter into 19 agreements with aviation employers to provide up to a 50 20 percent share for the compensation of employees finan- 21 cially impacted by the COVID–19 public health emer- 22 gency. 23 (b) PROCEDURES.—Not later than 10 days after the 24 date of enactment of this Act, the Secretary shall estab- 25 VerDate Sep 11 2014 02:09 Aug 29, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8002.IH H8002 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 8002 IH lish, and make available to the public, procedures for ap- 1 plication and minimum eligibility requirements for partici- 2 pation in the program established under subsection (a). 3 (c) COMPENSATION CONTRIBUTIONS.—Under the 4 program established under this section, the Secretary may 5 enter into agreements to provide up to a 50 percent con- 6 tribution to ensure the total compensation level of the at- 7 risk employee group of an aviation employer for any period 8 beginning on or after April 1, 2020, and ending not later 9 than April 30, 2022. 10 (d) ELIGIBILITY.—The Secretary may enter into an 11 agreement with an aviation employer under this section 12 if the Secretary determines that— 13 (1) the aviation employer establishes that eco- 14 nomic conditions as of the date of the application for 15 assistance under this section make necessary a per- 16 manent reduction or furlough of a portion of the 17 workforce of such employer that is devoted to avia- 18 tion manufacturing; 19 (2) the aviation employer has an identifiable at- 20 risk employee group; 21 (3) the aviation employer agrees to provide the 22 non-Federal share of the agreement under this sec- 23 tion; and 24 VerDate Sep 11 2014 02:09 Aug 29, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8002.IH H8002 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 8002 IH (4) receipt of assistance under this section will 1 reduce the likelihood of a permanent reduction in 2 force or furlough of the at-risk employee group of 3 the aviation employer. 4 (e) REQUIREMENTS.—An agreement entered into 5 under this section shall require that— 6 (1) the aviation employer may not carry out 7 any permanent reduction in force or furlough of em- 8 ployees in the at-risk employee group for the dura- 9 tion of the agreement, subject to the aviation em- 10 ployer’s right to discipline or terminate an employee 11 in accordance with policies of the aviation employer; 12 (2) assistance provided under this section may 13 not be used for stock buybacks or to pay out divi- 14 dends; 15 (3) assistance provided under this section shall 16 be used solely for the purpose of providing com- 17 pensation and benefits of the at-risk employee 18 group; 19 (4) the aviation employer may not— 20 (A) circumvent or abrogate a collective 21 bargaining agreement at a partner company; or 22 (B) move jobs assisted by this program out 23 of the United States; and 24 VerDate Sep 11 2014 02:09 Aug 29, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8002.IH H8002 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 8002 IH (5) the aviation employer may only provide 1 compensation to United States-based employees. 2 (f) DURATION OF AGREEMENT.—An agreement en- 3 tered into under this section shall be for a period not to 4 exceed 6 months, and may be renewed for a period of 2 5 years, at the discretion of the Secretary, so long as the 6 Secretary recertifies such agreement every 6 months. 7 (g) FEDERAL SHARE.—The Federal share of assist- 8 ance provided to an aviation employer under an agreement 9 entered into pursuant to this section shall not exceed 50 10 percent. 11 (h) MULTIPLE AGREEMENTS.—The Secretary may 12 enter into multiple agreements with an aviation employer 13 under this section, except that the total assistance shall 14 not exceed beyond the applicable at-risk employee group. 15 (i) COORDINATION WITH EMPLOYEE RETENTION 16 CREDIT.—The Secretary shall not enter into any agree- 17 ment under this section with an employer who was allowed 18 a credit under section 2301 of the CARES Act for any 19 calendar quarter ending before such agreement is entered 20 into and such section 2301 shall not apply to any employer 21 who enters into any agreement under this section. 22 (j) REPORT.—An aviation employer entering into an 23 agreement under this section shall submit to Congress, 24 after submission to the Secretary for review, on the imple- 25 VerDate Sep 11 2014 02:09 Aug 29, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H8002.IH H8002 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 8002 IH mentation and allocation of funds provided pursuant to 1 this section. 2 (k) TAX TREATMENT.—For purposes of the Internal 3 Revenue Code of 1986, any public partner contribution 4 provided by the Secretary under this section which is re- 5 ceived by any employee shall be included in the gross in- 6 come of such employee and no deduction shall be allowed 7 under such Code to the employer with respect to any such 8 contribution. 9 (l) TERMINATION.— 10 (1) SUNSET.—The authority established by this 11 Act shall end on April 30, 2022. 12 (2) AGREEMENT DURATION.—No agreement 13 may be entered into under this section that provides 14 for assistance after April 30, 2022. 15 Æ VerDate Sep 11 2014 02:09 Aug 29, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H8002.IH H8002 pamtmann on DSKBC07HB2PROD with BILLS