[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2926 Enrolled Bill (ENR)]
H.R.2926
One Hundred Seventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and one
An Act
To preserve the continued viability of the United States air
transportation system.
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 Transportation Safety and System
Stabilization Act''.
TITLE I--AIRLINE STABILIZATION
SEC. 101. AVIATION DISASTER RELIEF.
(a) In General.--Notwithstanding any other provision of law, the
President shall take the following actions to compensate air carriers
for losses incurred by the air carriers as a result of the terrorist
attacks on the United States that occurred on September 11, 2001:
(1) Subject to such terms and conditions as the President deems
necessary, issue Federal credit instruments to air carriers that do
not, in the aggregate, exceed $10,000,000,000 and provide the
subsidy amounts necessary for such instruments in accordance with
the provisions of the Federal Credit Reform Act of 1990 (2 U.S.C.
661 et seq.).
(2) Compensate air carriers in an aggregate amount equal to
$5,000,000,000 for--
(A) direct losses incurred beginning on September 11, 2001,
by air carriers as a result of any Federal ground stop order
issued by the Secretary of Transportation or any subsequent
order which continues or renews such a stoppage; and
(B) the incremental losses incurred beginning September 11,
2001, and ending December 31, 2001, by air carriers as a direct
result of such attacks.
(b) Emergency Designation.--Congress designates the amount of new
budget authority and outlays in all fiscal years resulting from this
title as an emergency requirement pursuant to section 252(e) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(e)). Such amount shall be available only to the extent that a
request, that includes designation of such amount as an emergency
requirement as defined in such Act, is transmitted by the President to
Congress.
SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD.
(a) Definitions.--In this section, the following definitions apply:
(1) Board.--The term ``Board'' means the Air Transportation
Stabilization Board established under subsection (b).
(2) Financial obligation.--The term ``financial obligation''
means any note, bond, debenture, or other debt obligation issued by
an obligor in connection with financing under this section and
section 101(a)(1).
(3) Lender.--The term ``lender'' means any non-Federal
qualified institutional buyer (as defined by section 230.144A(a) of
title 17, Code of Federal Regulations (or any successor regulation)
known as Rule 144A(a) of the Securities and Exchange Commission and
issued under the Security Act of 1933, including--
(A) a qualified retirement plan (as defined in section
4974(c) of the Internal Revenue Code of 1986 (26 U.S.C.
4974(c)) that is a qualified institutional buyer; and
(B) a governmental plan (as defined in section 414(d) of
the Internal Revenue Code of 1986 (26 U.S.C. 414(d)) that is a
qualified institutional buyer.
(4) Obligor.--The term ``obligor'' means a party primarily
liable for payment of the principal of or interest on a Federal
credit instrument, which party may be a corporation, partnership,
joint venture, trust, or governmental entity, agency, or
instrumentality.
(b) Air Transportation Stabilization Board.--
(1) Establishment.--There is established a board (to be known
as the ``Air Transportation Stabilization Board'') to review and
decide on applications for Federal credit instruments under section
101(a)(1).
(2) Composition.--The Board shall consist of--
(A) the Secretary of Transportation or the designee of the
Secretary;
(B) the Chairman of the Board of Governors of the Federal
Reserve System, or the designee of the Chairman, who shall be
the Chair of the Board;
(C) the Secretary of the Treasury or the designee of the
Secretary; and
(D) the Comptroller General of the United States, or the
designee of the Comptroller General, as a nonvoting member of
the Board.
(c) Federal Credit Instruments.--
(1) In general.--The Board may enter into agreements with 1 or
more obligors to issue Federal credit instruments under section
101(a)(1) if the Board determines, in its discretion, that--
(A) the obligor is an air carrier for which credit is not
reasonably available at the time of the transaction;
(B) the intended obligation by the obligor is prudently
incurred; and
(C) such agreement is a necessary part of maintaining a
safe, efficient, and viable commercial aviation system in the
United States.
(2) Terms and limitations.--
(A) Forms; terms and conditions.--A Federal credit
instrument shall be issued under section 101(a)(1) in such form
and on such terms and conditions and contain such covenants,
representatives, warranties, and requirements (including
requirements for audits) as the Board determines appropriate.
(B) Procedures.--Not later than 14 days after the date of
enactment of this Act, the Director of the Office of Management
and Budget shall issue regulations setting forth procedures for
application and minimum requirements, which may be supplemented
by the Board in its discretion, for the issuance of Federal
credit instruments under section 101(a)(1).
(d) Financial Protection of Government.--
(1) In general.--To the extent feasible and practicable, the
Board shall ensure that the Government is compensated for the risk
assumed in making guarantees under this title.
(2) Government participation in gains.--To the extent to which
any participating corporation accepts financial assistance, in the
form of accepting the proceeds of any loans guaranteed by the
Government under this title, the Board is authorized to enter into
contracts under which the Government, contingent on the financial
success of the participating corporation, would participate in the
gains of the participating corporation or its security holders
through the use of such instruments as warrants, stock options,
common or preferred stock, or other appropriate equity instruments.
(3) Deposit in treasury.--All amounts collected by the
Secretary of the Treasury under this subsection shall be deposited
in the Treasury as miscellaneous receipts.
SEC. 103. SPECIAL RULES FOR COMPENSATION.
(a) Documentation.--Subject to subsection (b), the amount of
compensation payable to an air carrier under section 101(a)(2) may not
exceed the amount of losses described in section 101(a)(2) that the air
carrier demonstrates to the satisfaction of the President, using sworn
financial statements or other appropriate data, that the air carrier
incurred. The Secretary of Transportation and the Comptroller General
of the United States may audit such statements and may request any
information that the Secretary and the Comptroller General deems
necessary to conduct such audit.
(b) Maximum Amount of Compensation Payable Per Air Carrier.--The
maximum total amount of compensation payable to an air carrier under
section 101(a)(2) may not exceed the lesser of--
(1) the amount of such air carrier's direct and incremental
losses described in section 101(a)(2); or
(2) in the case of--
(A) flights involving passenger-only or combined passenger
and cargo transportation, the product of--
(i) $4,500,000,000; and
(ii) the ratio of--
(I) the available seat miles of the air carrier for
the month of August 2001 as reported to the Secretary;
to
(II) the total available seat miles of all such air
carriers for such month as reported to the Secretary;
and
(B) flights involving cargo-only transportation, the
product of--
(i) $500,000,000; and
(ii) the ratio of--
(I) the revenue ton miles or other auditable
measure of the air carrier for cargo for the latest
quarter for which data is available as reported to the
Secretary; to
(II) the total revenue ton miles or other auditable
measure of all such air carriers for cargo for such
quarter as reported to the Secretary.
(c) Payments.--The President may provide compensation to air
carriers under section 101(a)(2) in 1 or more payments up to the amount
authorized by this title.
SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.
(a) In General.--The President may only issue a Federal credit
instrument under section 101(a)(1) to an air carrier after the air
carrier enters into a legally binding agreement with the President
that, during the 2-year period beginning September 11, 2001, and ending
September 11, 2003, no officer or employee of the air carrier whose
total compensation exceeded $300,000 in calendar year 2000 (other than
an employee whose compensation is determined through an existing
collective bargaining agreement entered into prior to September 11,
2001)--
(1) will receive from the air carrier 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 in calendar year 2000; and
(2) will receive from the air carrier severance pay or other
benefits upon termination of employment with the air carrier which
exceeds twice the maximum total compensation received by the
officer or employee from the air carrier in calendar year 2000.
(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 to an officer or employee
of the air carrier.
SEC. 105. CONTINUATION OF CERTAIN AIR SERVICE.
(a) Action of Secretary.--The Secretary of Transportation should
take appropriate action to ensure that all communities that had
scheduled air service before September 11, 2001, continue to receive
adequate air transportation service and that essential air service to
small communities continues without interruption.
(b) Essential Air Service.--There is authorized to be appropriated
to the Secretary to carry out the essential air service program under
subchapter II of chapter 417 of title 49, United States Code,
$120,000,000 for fiscal year 2002.
(c) Secretarial Oversight.--
(1) In general.--Notwithstanding any other provision of law,
the Secretary is authorized to require an air carrier receiving
direct financial assistance under this Act to maintain scheduled
air service to any point served by that carrier before September
11, 2001.
(2) Agreements.--In applying paragraph (1), the Secretary may
require air carriers receiving direct financial assistance under
this Act to enter into agreements which will ensure, to the maximum
extent practicable, that all communities that had scheduled air
service before September 11, 2001, continue to receive adequate air
transportation service.
SEC. 106. REPORTS.
(a) Report.--Not later than February 1, 2001, the President shall
transmit to the Committee on Transportation and Infrastructure, the
Committee on Appropriations, and the Committee on the Budget of the
House of Representatives and the Committee on Commerce, Science, and
Transportation, the Committee on Appropriations, and the Committee on
the Budget of the Senate a report on the financial status of the air
carrier industry and the amounts of assistance provided under this
title to each air carrier.
(b) Update.--Not later than the last day of the 7-month period
following the date of enactment of this Act, the President shall update
and transmit the report to the Committees.
SEC. 107. DEFINITIONS.
In this title, the following definitions apply:
(1) Air carrier.--The term ``air carrier'' has the meaning such
term has under section 40102 of title 49, United States Code.
(2) Federal credit instrument.--The term ``Federal credit
instrument'' means any guarantee or other pledge by the Board
issued under section 101(a)(1) to pledge the full faith and credit
of the United States to pay all or part of any of the principal of
and interest on a loan or other debt obligation issued by an
obligor and funded by a lender.
(3) Incremental loss.--The term ``incremental loss'' does not
include any loss that the President determines would have been
incurred if the terrorist attacks on the United States that
occurred on September 11, 2001, had not occurred.
TITLE II--AVIATION INSURANCE
SEC. 201. DOMESTIC INSURANCE AND REIMBURSEMENT OF INSURANCE COSTS.
(a) In General.--Section 44302 of title 49, United States Code, is
amended--
(1) in subsection (a)(1)--
(A) by striking ``subsection (b)'' and inserting
``subsection (c)''; and
(B) by striking ``foreign-flag aircraft--'' and all that
follows through the period at the end of subparagraph (B) and
inserting ``foreign-flag aircraft.'';
(2) by redesignating subsections (b), (c), and (d) as
subsections (c), (d), and (e), respectively;
(3) by inserting after subsection (a) the following:
``(b) Reimbursement of Insurance Cost Increases.--
``(1) In general.--The Secretary may reimburse an air carrier
for the increase in the cost of insurance, with respect to a
premium for coverage ending before October 1, 2002, against loss or
damage arising out of any risk from the operation of an American
aircraft over the insurance premium that was in effect for a
comparable operation during the period beginning September 4, 2001,
and ending September 10, 2001, as the Secretary may determine. Such
reimbursement is subject to subsections (a)(2), (c), and (d) of
this section and to section 44303.
``(2) Payment from revolving fund.--A reimbursement under this
subsection shall be paid from the revolving fund established by
section 44307.
``(3) Further conditions.--The Secretary may impose such
further conditions on insurance for which the increase in premium
is subject to reimbursement under this subsection as the Secretary
may deem appropriate in the interest of air commerce.
``(4) Termination of authority.--The authority to reimburse air
carriers under this subsection shall expire 180 days after the date
of enactment of this paragraph.'';
(4) in subsection (c) (as so redesignated)--
(A) in the first sentence by inserting ``, or reimburse an
air carrier under subsection (b) of this section,'' before
``only with the approval''; and
(B) in the second sentence--
(i) by inserting ``or the reimbursement'' before ``only
after deciding''; and
(ii) by inserting ``in the interest of air commerce or
national security or'' before ``to carry out the foreign
policy''; and
(5) in subsection (d) (as so redesignated) by inserting ``or
reimbursing an air carrier'' before ``under this chapter''.
(b) Coverage.--
(1) In general.--Section 44303 of such title is amended--
(A) in the matter preceding paragraph (1) by inserting ``,
or reimburse insurance costs, as'' after ``insurance and
reinsurance''; and
(B) in paragraph (1) by inserting ``in the interest of air
commerce or national security or'' before ``to carry out the
foreign policy''.
(2) Discretion of the secretary.--For acts of terrorism
committed on or to an air carrier during the 180-day period
following the date of enactment of this Act, the Secretary of
Transportation may certify that the air carrier was a victim of an
act of terrorism and in the Secretary's judgment, based on the
Secretary's analysis and conclusions regarding the facts and
circumstances of each case, shall not be responsible for losses
suffered by third parties (as referred to in section 205.5(b)(1) of
title 14, Code of Federal Regulations) that exceed $100,000,000, in
the aggregate, for all claims by such parties arising out of such
act. If the Secretary so certifies, the air carrier shall not be
liable for an amount that exceeds $100,000,000, in the aggregate,
for all claims by such parties arising out of such act, and the
Government shall be responsible for any liability above such
amount. No punitive damages may be awarded against an air carrier
(or the Government taking responsibility for an air carrier under
this paragraph) under a cause of action arising out of such act.
(c) Reinsurance.--Section 44304 of such title is amended--
(1) by striking ``(a) General Authority.--''; and
(2) by striking subsection (b).
(d) Premiums.--Section 44306 of such title is amended--
(1) by redesignating subsections (b) and (c) as subsections (c)
and (d), respectively; and
(2) by inserting after subsection (a) the following:
``(b) Allowances in Setting Premium Rates for Reinsurance.--In
setting premium rates for reinsurance, the Secretary may make
allowances to the insurance carrier for expenses incurred in providing
services and facilities that the Secretary considers good business
practices, except for payments by the air carrier for the stimulation
or solicitation of insurance business.''.
(e) Conforming Amendment.--Section 44305(b) of such title is
amended by striking ``44302(b)'' and inserting ``44302(c)''.
SEC. 202. EXTENSION OF PROVISIONS TO VENDORS, AGENTS, AND
SUBCONTRACTORS OF AIR CARRIERS.
Notwithstanding any other provision of this title, the Secretary
may extend any provision of chapter 443 of title 49, United States
Code, as amended by this title, and the provisions of this title, to
vendors, agents, and subcontractors of air carriers. For the 180-day
period beginning on the date of enactment of this Act, the Secretary
may extend or amend any such provisions so as to ensure that the
entities referred to in the preceding sentence are not responsible in
cases of acts of terrorism for losses suffered by third parties that
exceed the amount of such entities' liability coverage, as determined
by the Secretary.
TITLE III--TAX PROVISIONS
SEC. 301. EXTENSION OF DUE DATE FOR EXCISE TAX DEPOSITS; TREATMENT OF
LOSS COMPENSATION.
(a) Extension of Due Date for Excise Tax Deposits.--
(1) In general.--In the case of an eligible air carrier, any
airline-related deposit required under section 6302 of the Internal
Revenue Code of 1986 to be made after September 10, 2001, and
before November 15, 2001, shall be treated for purposes of such
Code as timely made if such deposit is made on or before November
15, 2001. If the Secretary of the Treasury so prescribes, the
preceding sentence shall be applied by substituting for ``November
15, 2001'' each place it appears--
(A) ``January 15, 2002''; or
(B) such earlier date after November 15, 2001, as such
Secretary may prescribe.
(2) Eligible air carrier.--For purposes of this subsection, the
term ``eligible air carrier'' means any domestic corporation
engaged in the trade or business of transporting (for hire) persons
by air if such transportation is available to the general public.
(3) Airline-related deposit.--For purposes of this subsection,
the term ``airline-related deposit'' means any deposit of--
(A) taxes imposed by subchapter C of chapter 33 of such
Code (relating to transportation by air); and
(B) taxes imposed by chapters 21, 22, and 24 with respect
to employees engaged in a trade or business referred to in
paragraph (2).
(b) Treatment of Loss Compensation.--Nothing in any provision of
law shall be construed to exclude from gross income under the Internal
Revenue Code of 1986 any compensation received under section 101(a)(2)
of this Act.
TITLE IV--VICTIM COMPENSATION
SEC. 401. SHORT TITLE.
This title may be cited as the ``September 11th Victim Compensation
Fund of 2001''.
SEC. 402. DEFINITIONS.
In this title, the following definitions apply:
(1) Air carrier.--The term ``air carrier'' means a citizen of
the United States undertaking by any means, directly or indirectly,
to provide air transportation and includes employees and agents of
such citizen.
(2) Air transportation.--The term ``air transportation'' means
foreign air transportation, interstate air transportation, or the
transportation of mail by aircraft.
(3) Claimant.--The term ``claimant'' means an individual filing
a claim for compensation under section 405(a)(1).
(4) Collateral source.--The term ``collateral source'' means
all collateral sources, including life insurance, pension funds,
death benefit programs, and payments by Federal, State, or local
governments related to the terrorist-related aircraft crashes of
September 11, 2001.
(5) Economic loss.--The term ``economic loss'' means any
pecuniary loss resulting from harm (including the loss of earnings
or other benefits related to employment, medical expense loss,
replacement services loss, loss due to death, burial costs, and
loss of business or employment opportunities) to the extent
recovery for such loss is allowed under applicable State law.
(6) Eligible individual.--The term ``eligible individual''
means an individual determined to be eligible for compensation
under section 405(c).
(7) Noneconomic losses.--The term ``noneconomic losses'' means
losses for physical and emotional pain, suffering, inconvenience,
physical impairment, mental anguish, disfigurement, loss of
enjoyment of life, loss of society and companionship, loss of
consortium (other than loss of domestic service), hedonic damages,
injury to reputation, and all other nonpecuniary losses of any kind
or nature.
(8) Special master.--The term ``Special Master'' means the
Special Master appointed under section 404(a).
SEC. 403. PURPOSE.
It is the purpose of this title to provide compensation to any
individual (or relatives of a deceased individual) who was physically
injured or killed as a result of the terrorist-related aircraft crashes
of September 11, 2001.
SEC. 404. ADMINISTRATION.
(a) In General.--The Attorney General, acting through a Special
Master appointed by the Attorney General, shall--
(1) administer the compensation program established under this
title;
(2) promulgate all procedural and substantive rules for the
administration of this title; and
(3) employ and supervise hearing officers and other
administrative personnel to perform the duties of the Special
Master under this title.
(b) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to pay the administrative
and support costs for the Special Master in carrying out this title.
SEC. 405. DETERMINATION OF ELIGIBILITY FOR COMPENSATION.
(a) Filing of Claim.--
(1) In general.--A claimant may file a claim for compensation
under this title with the Special Master. The claim shall be on the
form developed under paragraph (2) and shall state the factual
basis for eligibility for compensation and the amount of
compensation sought.
(2) Claim form.--
(A) In general.--The Special Master shall develop a claim
form that claimants shall use when submitting claims under
paragraph (1). The Special Master shall ensure that such form
can be filed electronically, if determined to be practicable.
(B) Contents.--The form developed under subparagraph (A)
shall request--
(i) information from the claimant concerning the
physical harm that the claimant suffered, or in the case of
a claim filed on behalf of a decedent information
confirming the decedent's death, as a result of the
terrorist-related aircraft crashes of September 11, 2001;
(ii) information from the claimant concerning any
possible economic and noneconomic losses that the claimant
suffered as a result of such crashes; and
(iii) information regarding collateral sources of
compensation the claimant has received or is entitled to
receive as a result of such crashes.
(3) Limitation.--No claim may be filed under paragraph (1)
after the date that is 2 years after the date on which regulations
are promulgated under section 407.
(b) Review and Determination.--
(1) Review.--The Special Master shall review a claim submitted
under subsection (a) and determine--
(A) whether the claimant is an eligible individual under
subsection (c);
(B) with respect to a claimant determined to be an eligible
individual--
(i) the extent of the harm to the claimant, including
any economic and noneconomic losses; and
(ii) the amount of compensation to which the claimant
is entitled based on the harm to the claimant, the facts of
the claim, and the individual circumstances of the
claimant.
(2) Negligence.--With respect to a claimant, the Special Master
shall not consider negligence or any other theory of liability.
(3) Determination.--Not later than 120 days after that date on
which a claim is filed under subsection (a), the Special Master
shall complete a review, make a determination, and provide written
notice to the claimant, with respect to the matters that were the
subject of the claim under review. Such a determination shall be
final and not subject to judicial review.
(4) Rights of claimant.--A claimant in a review under paragraph
(1) shall have--
(A) the right to be represented by an attorney;
(B) the right to present evidence, including the
presentation of witnesses and documents; and
(C) any other due process rights determined appropriate by
the Special Master.
(5) No punitive damages.--The Special Master may not include
amounts for punitive damages in any compensation paid under a claim
under this title.
(6) Collateral compensation.--The Special Master shall reduce
the amount of compensation determined under paragraph (1)(B)(ii) by
the amount of the collateral source compensation the claimant has
received or is entitled to receive as a result of the terrorist-
related aircraft crashes of September 11, 2001.
(c) Eligibility.--
(1) In general.--A claimant shall be determined to be an
eligible individual for purposes of this subsection if the Special
Master determines that such claimant--
(A) is an individual described in paragraph (2); and
(B) meets the requirements of paragraph (3).
(2) Individuals.--A claimant is an individual described in this
paragraph if the claimant is--
(A) an individual who--
(i) was present at the World Trade Center, (New York,
New York), the Pentagon (Arlington, Virginia), or the site
of the aircraft crash at Shanksville, Pennsylvania at the
time, or in the immediate aftermath, of the terrorist-
related aircraft crashes of September 11, 2001; and
(ii) suffered physical harm or death as a result of
such an air crash;
(B) an individual who was a member of the flight crew or a
passenger on American Airlines flight 11 or 77 or United
Airlines flight 93 or 175, except that an individual identified
by the Attorney General to have been a participant or
conspirator in the terrorist-related aircraft crashes of
September 11, 2001, or a representative of such individual
shall not be eligible to receive compensation under this title;
or
(C) in the case of a decedent who is an individual
described in subparagraph (A) or (B), the personal
representative of the decedent who files a claim on behalf of
the decedent.
(3) Requirements.--
(A) Single claim.--Not more than one claim may be submitted
under this title by an individual or on behalf of a deceased
individual.
(B) Limitation on civil action.--
(i) In general.--Upon the submission of a claim under
this title, the claimant waives the right to file a civil
action (or to be a party to an action) in any Federal or
State court for damages sustained as a result of the
terrorist-related aircraft crashes of September 11, 2001.
The preceding sentence does not apply to a civil action to
recover collateral source obligations.
(ii) Pending actions.--In the case of an individual who
is a party to a civil action described in clause (i), such
individual may not submit a claim under this title unless
such individual withdraws from such action by the date that
is 90 days after the date on which regulations are
promulgated under section 407.
SEC. 406. PAYMENTS TO ELIGIBLE INDIVIDUALS.
(a) In General.--Not later than 20 days after the date on which a
determination is made by the Special Master regarding the amount of
compensation due a claimant under this title, the Special Master shall
authorize payment to such claimant of the amount determined with
respect to the claimant.
(b) Payment Authority.--This title constitutes budget authority in
advance of appropriations Acts and represents the obligation of the
Federal Government to provide for the payment of amounts for
compensation under this title.
(c) Additional Funding.--
(1) In general.--The Attorney General is authorized to accept
such amounts as may be contributed by individuals, business
concerns, or other entities to carry out this title, under such
terms and conditions as the Attorney General may impose.
(2) Use of separate account.--In making payments under this
section, amounts contained in any account containing funds provided
under paragraph (1) shall be used prior to using appropriated
amounts.
SEC. 407. REGULATIONS.
Not later than 90 days after the date of enactment of this Act, the
Attorney General, in consultation with the Special Master, shall
promulgate regulations to carry out this title, including regulations
with respect to--
(1) forms to be used in submitting claims under this title;
(2) the information to be included in such forms;
(3) procedures for hearing and the presentation of evidence;
(4) procedures to assist an individual in filing and pursuing
claims under this title; and
(5) other matters determined appropriate by the Attorney
General.
SEC. 408. LIMITATION ON AIR CARRIER LIABILITY.
(a) In General.--Notwithstanding any other provision of law,
liability for all claims, whether for compensatory or punitive damages,
arising from the terrorist-related aircraft crashes of September 11,
2001, against any air carrier shall not be in an amount greater than
the limits of the liability coverage maintained by the air carrier.
(b) Federal Cause of Action.--
(1) Availability of action.--There shall exist a Federal cause
of action for damages arising out of the hijacking and subsequent
crashes of American Airlines flights 11 and 77, and United Airlines
flights 93 and 175, on September 11, 2001. Notwithstanding section
40120(c) of title 49, United States Code, this cause of action
shall be the exclusive remedy for damages arising out of the
hijacking and subsequent crashes of such flights.
(2) Substantive law.--The substantive law for decision in any
such suit shall be derived from the law, including choice of law
principles, of the State in which the crash occurred unless such
law is inconsistent with or preempted by Federal law.
(3) Jurisdiction.--The United States District Court for the
Southern District of New York shall have original and exclusive
jurisdiction over all actions brought for any claim (including any
claim for loss of property, personal injury, or death) resulting
from or relating to the terrorist-related aircraft crashes of
September 11, 2001.
(c) Exclusion.--Nothing in this section shall in any way limit any
liability of any person who is a knowing participant in any conspiracy
to hijack any aircraft or commit any terrorist act.
SEC. 409. RIGHT OF SUBROGATION.
The United States shall have the right of subrogation with respect
to any claim paid by the United States under this title.
TITLE V--AIR TRANSPORTATION SAFETY
SEC. 501. INCREASED AIR TRANSPORTATION SAFETY.
Congress affirms the President's decision to spend $3,000,000,000
on airline safety and security in conjunction with this Act in order to
restore public confidence in the airline industry.
SEC. 502. CONGRESSIONAL COMMITMENT.
Congress is committed to act expeditiously, in consultation with
the Secretary of Transportation, to strengthen airport security and
take further measures to enhance the security of air travel.
TITLE VI--SEPARABILITY
SEC. 601. SEPARABILITY.
If any provision of this Act (including any amendment made by this
Act) or the application thereof to any person or circumstance is held
invalid, the remainder of this Act (including any amendment made by
this Act) and the application thereof to other persons or circumstances
shall not be affected thereby.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.