DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,263

SC&H GROUP
REAL TAX DEPARTMENT
SPARKS, MARYLAND

Notice of Negative Determination
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of the
Trade Preferences Extension Act of 2015, Public Law No. 114-27,
section 405(a)(1)(A), the investigation into this petition was
reopened for a reconsideration investigation to apply the
requirements for worker group eligibility under chapter 2 of title
II of the Trade Act of 1974, as amended by the TAARA 2015, to the
facts of this petition (statutory reconsideration).
The initial investigation, initiated April 24, 2015, resulted
in a negative determination, issued on June 3, 2014, that was based
on the firm does not producing an article. The determination was
applicable to workers and former workers of SC&H Group, Real Tax
Department, Sparks, Maryland. The workers’ firm is engaged in
activities related to the supply of accounting consultation
services.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that worker
separations were not attributable to increased imports, shifts to a
foreign country, acquisitions from a foreign country, or any
secondary impacts.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that imports of services like or directly
competitive with the services supplied by SC&H Group, Real Tax
Department, Sparks, Maryland did not contribute importantly to
worker separations. The firm did not import services like or
directly competitive to what was supplied by the worker group.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the supply of
accounting consultation services or a like or directly competitive
service to a foreign country or acquire accounting consultation
services or a like or directly competitive service from a foreign
country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that SC&H Group, Real Tax Department,
Sparks, Maryland is a Supplier to a firm that employed a group of
workers who received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a); however, the loss of
business did not contribute importantly to workers’ separation or
threat thereof. The services provided by the worker group concluded
per the terms of the contract.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that SC&H Group, Real Tax Department,
Sparks, Maryland does not act as a Downstream Producer to a firm
that employed a group of workers who received a certification of
eligibility under Section 222(a) of the Act, 19 U.S.C. § 2272(a).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied either because Criterion
(1) has not been met since the workers’ firm has not been publicly
identified by name by the International Trade Commission as a
member of a domestic industry in an investigation resulting in an
affirmative finding of serious injury, market disruption, or
material injury, or threat thereof.
Conclusion
After careful review, I determine that the requirements of
Section 222 of the Act, 19 U.S.C. § 2272, have not been met and,
therefore, deny the petition for group eligibility of SC&H Group,
Real Tax Department, Sparks, Maryland, who were engaged in
employment related to the supply of accounting consultation
services to apply for adjustment assistance, in accordance with
Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 18th day of December, 2015


/s/Hope D. Kinglock
______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance



DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-85,263

SC&H GROUP
REAL TAX DEPARTMENT
SPARKS, MARYLAND

Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance
And Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor
herein presents the results of an investigation regarding
certification of eligibility to apply for worker adjustment
assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a) and
(b) of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For
the Department of Labor to issue a certification for workers
under Section 222(a) of the Act, 19 U.S.C. § 2272(a), the
following three criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in such workers' firm,
or an appropriate subdivision of the firm, have become
totally or partially separated, or are threatened to become
totally or partially separated
(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm
must have decreased absolutely, AND
(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.

(B) Shift in Production Path:
(i) there has been a shift in production by such workers'
firm or subdivision to a foreign country of articles
like or directly competitive with articles which are
produced by such firm or subdivision; and
(ii)(I) the country to which the workers' firm has
shifted production of the articles is a party to a
free trade agreement with the United States;
(II)the country to which the workers' firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or
(III)there has been or is likely to be an increase
in imports of articles that are like or directly
competitive with articles which are or were produced
by such firm or subdivision.

For the Department to issue a secondary worker
certification under Section 222(b) of the Act, 19 U.S.C. §
2272(b), to workers of a Supplier or a Downstream Producer, the
following criteria must be met:
(1) a significant number or proportion of the workers in
the workers' firm or an appropriate subdivision of the
firm have become totally or partially separated, or
are threatened to become totally or partially
separated;

(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who
received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a), and such
supply or production is related to the article that
was the basis for such certification; and

(3) either
(A) the workers' firm is a supplier and the component
parts it supplied to the firm described in paragraph
(2) accounted for at least 20 percent of the
production or sales of the workers' firm; or
(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to
the workers' separation or threat of separation.


Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
The investigation was initiated in response to a petition
filed on April 24, 2014 by a state workforce office on behalf
of workers of SC&H Group, Real Tax Department, Sparks,
Maryland. The workers' firm is engaged in activities related to
the supply of accounting consultation services.
The petitioner alleged the following, "The company
provided outsourced accountings and auditing services for RG
Steel in Baltimore, Maryland. When RG Steel in Baltimore
Maryland closed (approved for Trade 74919) the decision was made
at Stout Causey to release the workers they had on-site at RG
Steel."
During the course of the investigation, information was
collected from the workers' firm.
The investigation revealed that SC&H, does not produce an
article within the meaning of Section 222(a) or Section 222(b)
of the Act. In order to be considered eligible to apply for
adjustment assistance under Section 223 of the Trade Act of
1974, the worker group seeking certification (or on whose behalf
certification is being sought) must work for a "firm" or
appropriate subdivision that produces an article. The
definition of a firm includes an individual proprietorship,
partnership, joint venture, association, corporation (including
a development corporation), business trust, cooperative, trustee
in bankruptcy, and receiver under decree of any court. The
subject firm was not under the operational control of their
client and therefore cannot be considered as a part of their
worker group.
During the investigation, the Department of Labor obtained
information that revealed that the workers' firm did not produce
an article; rather, the workers' firm supplied services related
to accounting consultation services.
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(ATAA), the worker group must be certified eligible to apply for
trade adjustment assistance (TAA). Since the workers are denied
eligibility to apply for TAA, the workers cannot be certified
eligible for ATAA.


Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of SC&H Group, Real
Tax Department, Sparks, Maryland engaged in activities related
to the supply of accounting consultation services are denied
eligibility to apply for adjustment assistance under Section 223
of the Trade Act of 1974, and are also denied eligibility to
apply for alternative trade adjustment assistance under Section
246 of the Trade Act of 1974.
Signed in Washington, D.C., this 3rd day of June, 2014


/s/Michael W. Jaffe
______________________________
MICHAEL W. JAFFE
Certifying Officer, Office of
Trade Adjustment Assistance