[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2036 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2036

  To amend chapter 443 of title 49, United States Code, to extend the 
    authorization of the aviation insurance program, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 1997

 Mr. Shuster (for himself, Mr. Duncan, Mr. Oberstar, and Mr. Lipinski) 
 introduced the following bill; which was referred to the Committee on 
                   Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
  To amend chapter 443 of title 49, United States Code, to extend the 
    authorization of the aviation insurance program, 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 ``Aviation Insurance Reauthorization 
Act of 1997''.

SEC. 2. VALUATION OF AIRCRAFT.

    Section 44302(a)(2) of title 49, United States Code, is amended by 
striking ``as determined by the Secretary'' and inserting ``as 
determined by the Secretary in accordance with reasonable business 
practices in the commercial aviation insurance industry''.

SEC. 3. EFFECT OF INDEMNITY AGREEMENTS.

    Section 44305(b) of title 49, United States Code, is amended by 
adding at the end the following: ``If such an agreement is 
countersigned by the President, the agreement shall constitute, for 
purposes of section 44302(b), a determination that continuation of the 
aircraft operations to which the agreement applies is necessary to 
carry out the foreign policy of the United States.''.

SEC. 4. BORROWING AUTHORITY.

    (a) In General.--Section 44307 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(e) Borrowing.--
            ``(1) Issuance of obligations.--Subject to the provisions 
        of this subsection, the Administrator of the Federal Aviation 
        Administration may issue and sell such notes or other 
        obligations to the Secretary of the Treasury as the 
        Administrator determines are necessary to provide funds to 
        carry out this chapter.
            ``(2) Terms and conditions.--Obligations under this 
        subsection shall be issued in the forms and denominations, 
        bearing the maturities, and subject to the terms and conditions 
        that the Secretary of the Treasury may prescribe.
            ``(3) Notification of congress.--At least 25 days before 
        the Administrator intends to issue and sell a note or other 
        obligation under paragraph (1), the Administrator shall notify, 
        in writing, the Senate and House of Representatives of such 
        intention and the dollar amount of such note or obligation.
            ``(4) Purchase of obligations.--The Secretary of the 
        Treasury shall purchase any obligations issued under this 
        subsection. For such purpose, the Secretary of the Treasury may 
        use as a public debt transaction the proceeds from the sale of 
        any securities issued under the Second Liberty Bond Act. The 
        purposes for which securities may be issued under such Act are 
        extended to include any purchase of obligations issued under 
        this subsection.
            ``(5) Resale authority.--The Secretary of the Treasury may 
        sell any obligations issued under this subsection at the times 
        and prices and upon the terms and conditions that the Secretary 
        of the Treasury shall determine.
            ``(6) Treatment.--All purchases, redemptions, and sales of 
        obligations under this subsection by the Secretary of the 
        Treasury shall be treated as public debt transactions of the 
        United States.''.
    (b) Authorization of Appropriations.--Section 44307(a) of such 
title is amended by striking paragraph (2) and inserting the following:
            ``(2) Authorization of appropriations.--Necessary amounts 
        to carry out this chapter, including amounts required to pay 
        the interest accrued on, or to repay the principal of, 
        obligations issued under subsection (e), may be appropriated to 
        the fund.
            ``(3) Deposit in fund.--The amounts appropriated and other 
        amounts received, including the proceeds of the sale of 
        obligations issued under subsection (e), shall be deposited in 
        the fund.''.
    (c) Conforming Amendment.--Section 44307(d) of such title is 
amended by adding at the end the following: ``This subsection does not 
apply to amounts appropriated for paying interest accrued on, or for 
repaying the principal of, obligations issued under subsection (e).''.

SEC. 5. ARBITRATION AUTHORITY.

    (a) Authorization of Binding Arbitration.--Section 44308(b)(1) of 
title 49, United States Code, is amended by inserting after the second 
sentence the following: ``Any such policy may authorize the binding 
arbitration of claims made thereunder in such manner as may be agreed 
to by the Secretary and any commercial insurer that may be responsible 
for any part of a loss to which such policy relates.''.
    (b) Authority To Pay Arbitration Award.--Section 44308(b)(2) of 
such title is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following:
            ``(B) pay the amount of a binding arbitration award made 
        under paragraph (1); and''.

SEC. 6. EXTENSION OF PROGRAM.

    Section 44310 of title 49, United States Code, is amended by 
striking ``1997'' and inserting ``2002''.
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