[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1193 Enrolled Bill (ENR)]

        S.1193

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
 the seventh day of January, one thousand nine hundred and ninety-seven


                                 An Act


 
  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.

    (a) General Authority for Insurance and Reinsurance.--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.''.
    (b) Limitation on Maximum Insured Amount.--Section 44306(c) 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 or the President's designee, 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. 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. 5. EXTENSION OF PROGRAM.

    (a) In General.--Section 44310 of title 49, United States Code, is 
amended by striking ``September 30, 2002'' and inserting ``December 31, 
1998''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on October 1, 1997.

SEC. 6. USE OF AIRCRAFT FOR DEMONSTRATION.

    Section 40102(a)(37)(A) of title 49, United States Code, is 
amended--
        (1) by striking ``or'' in clause (i);
        (2) by redesignating clause (ii) as clause (iii); and
        (3) by inserting after clause (i) the following:
                ``(ii) owned by the United States Government and 
            operated by any person for purposes related to crew 
            training, equipment development, or demonstration; or''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.