[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.