[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1447 Enrolled Bill (ENR)]

        S.1447

                      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 improve aviation security, 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 and Transportation Security 
Act''.

                       TITLE I--AVIATION SECURITY

SEC. 101. TRANSPORTATION SECURITY ADMINISTRATION.

    (a) In General.--Chapter 1 of title 49, United States Code, is 
amended by adding at the end the following:

``Sec. 114. Transportation Security Administration

    ``(a) In General.--The Transportation Security Administration shall 
be an administration of the Department of Transportation.
    ``(b) Under Secretary.--
        ``(1) Appointment.--The head of the Administration shall be the 
    Under Secretary of Transportation for Security. The Under Secretary 
    shall be appointed by the President, by and with the advice and 
    consent of the Senate.
        ``(2) Qualifications.--The Under Secretary must--
            ``(A) be a citizen of the United States; and
            ``(B) have experience in a field directly related to 
        transportation or security.
        ``(3) Term.--The term of office of an individual appointed as 
    the Under Secretary shall be 5 years.
    ``(c) Limitation on Ownership of Stocks and Bonds.--The Under 
Secretary may not own stock in or bonds of a transportation or security 
enterprise or an enterprise that makes equipment that could be used for 
security purposes.
    ``(d) Functions.--The Under Secretary shall be responsible for 
security in all modes of transportation, including--
        ``(1) carrying out chapter 449, relating to civil aviation 
    security, and related research and development activities; and
        ``(2) security responsibilities over other modes of 
    transportation that are exercised by the Department of 
    Transportation.
    ``(e) Screening Operations.--The Under Secretary shall--
        ``(1) be responsible for day-to-day Federal security screening 
    operations for passenger air transportation and intrastate air 
    transportation under sections 44901 and 44935;
        ``(2) develop standards for the hiring and retention of 
    security screening personnel;
        ``(3) train and test security screening personnel; and
        ``(4) be responsible for hiring and training personnel to 
    provide security screening at all airports in the United States 
    where screening is required under section 44901, in consultation 
    with the Secretary of Transportation and the heads of other 
    appropriate Federal agencies and departments.
    ``(f) Additional Duties and Powers.--In addition to carrying out 
the functions specified in subsections (d) and (e), the Under Secretary 
shall--
        ``(1) receive, assess, and distribute intelligence information 
    related to transportation security;
        ``(2) assess threats to transportation;
        ``(3) develop policies, strategies, and plans for dealing with 
    threats to transportation security;
        ``(4) make other plans related to transportation security, 
    including coordinating countermeasures with appropriate 
    departments, agencies, and instrumentalities of the United States 
    Government;
        ``(5) serve as the primary liaison for transportation security 
    to the intelligence and law enforcement communities;
        ``(6) on a day-to-day basis, manage and provide operational 
    guidance to the field security resources of the Administration, 
    including Federal Security Managers as provided by section 44933;
        ``(7) enforce security-related regulations and requirements;
        ``(8) identify and undertake research and development 
    activities necessary to enhance transportation security;
        ``(9) inspect, maintain, and test security facilities, 
    equipment, and systems;
        ``(10) ensure the adequacy of security measures for the 
    transportation of cargo;
        ``(11) oversee the implementation, and ensure the adequacy, of 
    security measures at airports and other transportation facilities;
        ``(12) require background checks for airport security screening 
    personnel, individuals with access to secure areas of airports, and 
    other transportation security personnel;
        ``(13) work in conjunction with the Administrator of the 
    Federal Aviation Administration with respect to any actions or 
    activities that may affect aviation safety or air carrier 
    operations;
        ``(14) work with the International Civil Aviation Organization 
    and appropriate aeronautic authorities of foreign governments under 
    section 44907 to address security concerns on passenger flights by 
    foreign air carriers in foreign air transportation; and
        ``(15) carry out such other duties, and exercise such other 
    powers, relating to transportation security as the Under Secretary 
    considers appropriate, to the extent authorized by law.
    ``(g) National Emergency Responsibilities.--
        ``(1) In general.--Subject to the direction and control of the 
    Secretary, the Under Secretary, during a national emergency, shall 
    have the following responsibilities:
            ``(A) To coordinate domestic transportation, including 
        aviation, rail, and other surface transportation, and maritime 
        transportation (including port security).
            ``(B) To coordinate and oversee the transportation-related 
        responsibilities of other departments and agencies of the 
        Federal Government other than the Department of Defense and the 
        military departments.
            ``(C) To coordinate and provide notice to other departments 
        and agencies of the Federal Government, and appropriate 
        agencies of State and local governments, including departments 
        and agencies for transportation, law enforcement, and border 
        control, about threats to transportation.
            ``(D) To carry out such other duties, and exercise such 
        other powers, relating to transportation during a national 
        emergency as the Secretary shall prescribe.
        ``(2) Authority of other departments and agencies.--The 
    authority of the Under Secretary under this subsection shall not 
    supersede the authority of any other department or agency of the 
    Federal Government under law with respect to transportation or 
    transportation-related matters, whether or not during a national 
    emergency.
        ``(3) Circumstances.--The Secretary shall prescribe the 
    circumstances constituting a national emergency for purposes of 
    this subsection.
    ``(h) Management of Security Information.--In consultation with the 
Transportation Security Oversight Board, the Under Secretary shall--
        ``(1) enter into memoranda of understanding with Federal 
    agencies or other entities to share or otherwise cross-check as 
    necessary data on individuals identified on Federal agency 
    databases who may pose a risk to transportation or national 
    security;
        ``(2) establish procedures for notifying the Administrator of 
    the Federal Aviation Administration, appropriate State and local 
    law enforcement officials, and airport or airline security officers 
    of the identity of individuals known to pose, or suspected of 
    posing, a risk of air piracy or terrorism or a threat to airline or 
    passenger safety;
        ``(3) in consultation with other appropriate Federal agencies 
    and air carriers, establish policies and procedures requiring air 
    carriers--
            ``(A) to use information from government agencies to 
        identify individuals on passenger lists who may be a threat to 
        civil aviation or national security; and
            ``(B) if such an individual is identified, notify 
        appropriate law enforcement agencies, prevent the individual 
        from boarding an aircraft, or take other appropriate action 
        with respect to that individual; and
        ``(4) consider requiring passenger air carriers to share 
    passenger lists with appropriate Federal agencies for the purpose 
    of identifying individuals who may pose a threat to aviation safety 
    or national security.
    ``(i) View of NTSB.--In taking any action under this section that 
could affect safety, the Under Secretary shall give great weight to the 
timely views of the National Transportation Safety Board.
    ``(j) Acquisitions.--
        ``(1) In general.--The Under Secretary is authorized--
            ``(A) to acquire (by purchase, lease, condemnation, or 
        otherwise) such real property, or any interest therein, within 
        and outside the continental United States, as the Under 
        Secretary considers necessary;
            ``(B) to acquire (by purchase, lease, condemnation, or 
        otherwise) and to construct, repair, operate, and maintain such 
        personal property (including office space and patents), or any 
        interest therein, within and outside the continental United 
        States, as the Under Secretary considers necessary;
            ``(C) to lease to others such real and personal property 
        and to provide by contract or otherwise for necessary 
        facilities for the welfare of its employees and to acquire, 
        maintain, and operate equipment for these facilities;
            ``(D) to acquire services, including such personal services 
        as the Secretary determines necessary, and to acquire (by 
        purchase, lease, condemnation, or otherwise) and to construct, 
        repair, operate, and maintain research and testing sites and 
        facilities; and
            ``(E) in cooperation with the Administrator of the Federal 
        Aviation Administration, to utilize the research and 
        development facilities of the Federal Aviation Administration.
        ``(2) Title.--Title to any property or interest therein 
    acquired pursuant to this subsection shall be held by the 
    Government of the United States.
    ``(k) Transfers of Funds.--The Under Secretary is authorized to 
accept transfers of unobligated balances and unexpended balances of 
funds appropriated to other Federal agencies (as such term is defined 
in section 551(1) of title 5) to carry out functions transferred, on or 
after the date of enactment of the Aviation and Transportation Security 
Act, by law to the Under Secretary.
    ``(l) Regulations.--
        ``(1) In general.--The Under Secretary is authorized to issue, 
    rescind, and revise such regulations as are necessary to carry out 
    the functions of the Administration.
        ``(2) Emergency procedures.--
            ``(A) In general.--Notwithstanding any other provision of 
        law or executive order (including an executive order requiring 
        a cost-benefit analysis), if the Under Secretary determines 
        that a regulation or security directive must be issued 
        immediately in order to protect transportation security, the 
        Under Secretary shall issue the regulation or security 
        directive without providing notice or an opportunity for 
        comment and without prior approval of the Secretary.
            ``(B) Review by transportation security oversight board.--
        Any regulation or security directive issued under this 
        paragraph shall be subject to review by the Transportation 
        Security Oversight Board established under section 115. Any 
        regulation or security directive issued under this paragraph 
        shall remain effective unless disapproved by the Board or 
        rescinded by the Under Secretary.
        ``(3) Factors to consider.--In determining whether to issue, 
    rescind, or revise a regulation under this section, the Under 
    Secretary shall consider, as a factor in the final determination, 
    whether the costs of the regulation are excessive in relation to 
    the enhancement of security the regulation will provide. The Under 
    Secretary may waive requirements for an analysis that estimates the 
    number of lives that will be saved by the regulation and the 
    monetary value of such lives if the Under Secretary determines that 
    it is not feasible to make such an estimate.
        ``(4) Airworthiness objections by faa.--
            ``(A) In general.--The Under Secretary shall not take an 
        aviation security action under this title if the Administrator 
        of the Federal Aviation Administration notifies the Under 
        Secretary that the action could adversely affect the 
        airworthiness of an aircraft.
            ``(B) Review by secretary.--Notwithstanding subparagraph 
        (A), the Under Secretary may take such an action, after 
        receiving a notification concerning the action from the 
        Administrator under subparagraph (A), if the Secretary of 
        Transportation subsequently approves the action.
    ``(m) Personnel and Services; Cooperation by Under Secretary.--
        ``(1) Authority of under secretary.--In carrying out the 
    functions of the Administration, the Under Secretary shall have the 
    same authority as is provided to the Administrator of the Federal 
    Aviation Administration under subsections (l) and (m) of section 
    106.
        ``(2) Authority of agency heads.--The head of a Federal agency 
    shall have the same authority to provide services, supplies, 
    equipment, personnel, and facilities to the Under Secretary as the 
    head has to provide services, supplies, equipment, personnel, and 
    facilities to the Administrator of the Federal Aviation 
    Administration under section 106(m).
    ``(n) Personnel Management System.--The personnel management system 
established by the Administrator of the Federal Aviation Administration 
under section 40122 shall apply to employees of the Transportation 
Security Administration, or, subject to the requirements of such 
section, the Under Secretary may make such modifications to the 
personnel management system with respect to such employees as the Under 
Secretary considers appropriate, such as adopting aspects of other 
personnel systems of the Department of Transportation.
    ``(o) Acquisition Management System.--The acquisition management 
system established by the Administrator of the Federal Aviation 
Administration under section 40110 shall apply to acquisitions of 
equipment, supplies, and materials by the Transportation Security 
Administration, or, subject to the requirements of such section, the 
Under Secretary may make such modifications to the acquisition 
management system with respect to such acquisitions of equipment, 
supplies, and materials as the Under Secretary considers appropriate, 
such as adopting aspects of other acquisition management systems of the 
Department of Transportation.
    ``(p) Authority of Inspector General.--The Transportation Security 
Administration shall be subject to the Inspector General Act of 1978 (5 
U.S.C. App.) and other laws relating to the authority of the Inspector 
General of the Department of Transportation.
    ``(q) Law Enforcement Powers.--
        ``(1) In general.--The Under Secretary may designate an 
    employee of the Transportation Security Administration to serve as 
    a law enforcement officer.
        ``(2) Powers.--While engaged in official duties of the 
    Administration as required to fulfill the responsibilities under 
    this section, a law enforcement officer designated under paragraph 
    (1) may--
            ``(A) carry a firearm;
            ``(B) make an arrest without a warrant for any offense 
        against the United States committed in the presence of the 
        officer, or for any felony cognizable under the laws of the 
        United States if the officer has probable cause to believe that 
        the person to be arrested has committed or is committing the 
        felony; and
            ``(C) seek and execute warrants for arrest or seizure of 
        evidence issued under the authority of the United States upon 
        probable cause that a violation has been committed.
        ``(3) Guidelines on exercise of authority.--The authority 
    provided by this subsection shall be exercised in accordance with 
    guidelines prescribed by the Under Secretary, in consultation with 
    the Attorney General of the United States, and shall include 
    adherence to the Attorney General's policy on use of deadly force.
        ``(4) Revocation or suspension of authority.--The powers 
    authorized by this subsection may be rescinded or suspended should 
    the Attorney General determine that the Under Secretary has not 
    complied with the guidelines prescribed in paragraph (3) and 
    conveys the determination in writing to the Secretary of 
    Transportation and the Under Secretary.
    ``(r) Authority To Exempt.--The Under Secretary may grant an 
exemption from a regulation prescribed in carrying out this section if 
the Under Secretary determines that the exemption is in the public 
interest.''.
    (b) Conforming Amendment.--The analysis for chapter 1 of such title 
is amended by adding at the end the following:
``114. Transportation Security Administration.''.

    (c) Position of Under Secretary in Executive Schedule.--
        (1) In general.--Section 5313 of title 5, United States Code, 
    is amended by adding at the end the following:
        ``The Under Secretary of Transportation for Security.''.
        (2) Bonus eligibility.--In addition to the annual rate of pay 
    authorized by section 5313 of title 5, United States Code, the 
    Under Secretary may receive a bonus for any calendar year not to 
    exceed 30 percent of the annual rate of pay, based on the 
    Secretary's evaluation of the Under Secretary's performance.
        (3) Conforming change.--Section 106(r)(2)(A) of title 49, 
    United States Code, is amended to read as follows:
            ``(A) In general.--The Chief Operating Officer shall be 
        paid at an annual rate of basic pay to be determined by the 
        Administrator, with the approval of the Air Traffic Services 
        Subcommittee of the Aviation Management Advisory Council. The 
        annual rate may not exceed the annual compensation paid under 
        section 102 of title 3. The Chief Operating Officer shall be 
        subject to the post-employment provisions of section 207 of 
        title 18 as if the position of Chief Operating Officer were 
        described in section 207(c)(2)(A)(i) of that title.''.
    (d) Cooperation With Other Agencies.--The last sentence of section 
106(m) of such title is amended by striking ``supplies and'' and 
inserting ``supplies, personnel, services, and''.
    (e) Security and Research and Development Activities.--Section 
40119 of such title is amended--
        (1) in subsection (a) by striking ``Administrator of the 
    Federal Aviation Administration'' and inserting ``Under Secretary 
    of Transportation for Security'';
        (2) in subsections (b) and (c) by striking ``Administrator'' 
    each place it appears and inserting ``Under Secretary''; and
        (3) in subsection (b)(1)(C) by striking ``air''.
    (f) References to FAA in Chapter 449.--Chapter 449 of such title is 
amended--
        (1) in section 44904(b)(5) by striking ``the Administration'' 
    and inserting ``the Transportation Security Administration'';
        (2) in the second sentence of section 44913(a)(1) by striking 
    ``of the Administration'' and inserting ``of the Transportation 
    Security Administration'';
        (3) in section 44916(a)--
            (A) in the first sentence by striking ``Administrator'' and 
        inserting ``Under Secretary of Transportation for Security''; 
        and
            (B) in the second sentence by striking ``Administration'' 
        and inserting ``Transportation Security Administration'';
        (4) in each of sections 44933(a) and 44934(b) by striking 
    ``Assistant Administrator for Civil Aviation Security'' and 
    inserting ``Under Secretary'';
        (5) in section 44934(b)(1) by striking ``Assistant 
    Administrator'' and inserting ``Under Secretary'';
        (6) by striking sections 44931 and 44932 and the items relating 
    to such sections in the analysis for such chapter;
        (7) by striking ``Administrator'' each place it appears in such 
    chapter (except in subsections (f) and (h) of section 44936) and 
    inserting ``Under Secretary'';
        (8) by striking ``Administrator's'' each place it appears in 
    such chapter and inserting ``Under Secretary's''; and
        (9) by striking ``of the Federal Aviation Administration'' each 
    place it appears in such chapter (except in section 44936(f)) and 
    inserting ``of Transportation for Security''.
    (g) Transition Provisions.--
        (1) Schedule for assumption of civil aviation security 
    functions.--Not later than 3 months after the date of enactment of 
    this Act, the Under Secretary of Transportation for Security shall 
    assume civil aviation security functions and responsibilities under 
    chapter 449 of title 49, United States Code, as amended by this 
    Act, in accordance with a schedule to be developed by the Secretary 
    of Transportation, in consultation with air carriers, foreign air 
    carriers, and the Administrator of the Federal Aviation 
    Administration. The Under Secretary shall publish an appropriate 
    notice of the transfer of such security functions and 
    responsibilities before assuming the functions and 
    responsibilities.
        (2) Assumption of contracts.--As of the date specified in 
    paragraph (1), the Under Secretary may assume the rights and 
    responsibilities of an air carrier or foreign air carrier contract 
    for provision of passenger screening services at airports in the 
    United States described in section 44903(c), subject to payment of 
    adequate compensation to parties to the contract, if any.
        (3) Assignment of contracts.--
            (A) In general.--Upon request of the Under Secretary, an 
        air carrier or foreign air carrier carrying out a screening or 
        security function under chapter 449 of title 49, United States 
        Code, may enter into an agreement with the Under Secretary to 
        transfer any contract the carrier has entered into with respect 
        to carrying out the function, before the Under Secretary 
        assumes responsibility for the function.
            (B) Schedule.--The Under Secretary may enter into an 
        agreement under subparagraph (A) as soon as possible, but not 
        later than 90 days after the date of enactment of this Act. The 
        Under Secretary may enter into such an agreement for one 180-
        day period and may extend such agreement for one 90-day period 
        if the Under Secretary determines it necessary.
        (4) Transfer of ownership.--In recognition of the assumption of 
    the financial costs of security screening of passengers and 
    property at airports, and as soon as practical after the date of 
    enactment of this Act, air carriers may enter into agreements with 
    the Under Secretary to transfer the ownership, at no cost to the 
    United States Government, of any personal property, equipment, 
    supplies, or other material associated with such screening, 
    regardless of the source of funds used to acquire the property, 
    that the Secretary determines to be useful for the performance of 
    security screening of passengers and property at airports.
        (5) Performance of under secretary's functions during interim 
    period.--Until the Under Secretary takes office, the functions of 
    the Under Secretary that relate to aviation security may be carried 
    out by the Secretary or the Secretary's designee.

SEC. 102. TRANSPORTATION SECURITY OVERSIGHT BOARD.

    (a) In General.--Chapter 1 of title 49, United States Code, is 
amended by adding at the end the following:

``Sec. 115. Transportation Security Oversight Board

    ``(a) In General.--There is established in the Department of 
Transportation a board to be known as the `Transportation Security 
Oversight Board'.
    ``(b) Membership.--
        ``(1) Number and appointment.--The Board shall be composed of 7 
    members as follows:
            ``(A) The Secretary of Transportation, or the Secretary's 
        designee.
            ``(B) The Attorney General, or the Attorney General's 
        designee.
            ``(C) The Secretary of Defense, or the Secretary's 
        designee.
            ``(D) The Secretary of the Treasury, or the Secretary's 
        designee.
            ``(E) The Director of the Central Intelligence Agency, or 
        the Director's designee.
            ``(F) One member appointed by the President to represent 
        the National Security Council.
            ``(G) One member appointed by the President to represent 
        the Office of Homeland Security.
        ``(2) Chairperson.--The Chairperson of the Board shall be the 
    Secretary of Transportation.
    ``(c) Duties.--The Board shall--
        ``(1) review and ratify or disapprove any regulation or 
    security directive issued by the Under Secretary of Transportation 
    for security under section 114(l)(2) within 30 days after the date 
    of issuance of such regulation or directive;
        ``(2) facilitate the coordination of intelligence, security, 
    and law enforcement activities affecting transportation;
        ``(3) facilitate the sharing of intelligence, security, and law 
    enforcement information affecting transportation among Federal 
    agencies and with carriers and other transportation providers as 
    appropriate;
        ``(4) explore the technical feasibility of developing a common 
    database of individuals who may pose a threat to transportation or 
    national security;
        ``(5) review plans for transportation security;
        ``(6) make recommendations to the Under Secretary regarding 
    matters reviewed under paragraph (5).
    ``(d) Quarterly Meetings.--The Board shall meet at least quarterly.
    ``(e) Consideration of Security Information.--A majority of the 
Board may vote to close a meeting of the Board to the public, except 
that meetings shall be closed to the public whenever classified, 
sensitive security information, or information protected in accordance 
with section 40119(b), will be discussed.''.
    (b) Policies and Procedures.--Section 44911(b) of such title is 
amended by striking ``international''.
    (c) Strategic Planning.--Section 44911(c) of such title is amended 
by striking ``consider placing'' and inserting ``place''.
    (d) Conforming Amendment.--The analysis for chapter 1 of such title 
is amended by adding at the end the following:
``115. Transportation Security Oversight Board.''.

SEC. 103. FEDERAL SECURITY MANAGERS.

    Section 44933 of title 49, United States Code, is amended to read 
as follows:

``Sec. 44933. Federal Security Managers

    ``(a) Establishment, Designation, and Stationing.--The Under 
Secretary of Transportation for Security shall establish the position 
of Federal Security Manager at each airport in the United States 
described in section 44903(c). The Under Secretary shall designate 
individuals as Managers for, and station those Managers at, those 
airports.
    ``(b) Duties and Powers.--The Manager at each airport shall--
        ``(1) oversee the screening of passengers and property at the 
    airport; and
        ``(2) carry out other duties prescribed by the Under 
    Secretary.''.

SEC. 104. IMPROVED FLIGHT DECK INTEGRITY MEASURES.

    (a) In General.--As soon as possible after the date of enactment of 
this Act, the Administrator of the Federal Aviation Administration 
shall--
        (1) issue an order (without regard to the provisions of chapter 
    5 of title 5, United States Code)--
            (A) prohibiting access to the flight deck of aircraft 
        engaged in passenger air transportation or intrastate air 
        transportation that are required to have a door between the 
        passenger and pilot compartments under title 14, Code of 
        Federal Regulations, except to authorized persons;
            (B) requiring the strengthening of the flight deck door and 
        locks on any such aircraft operating in air transportation or 
        intrastate air transportation that has a rigid door in a 
        bulkhead between the flight deck and the passenger area to 
        ensure that the door cannot be forced open from the passenger 
        compartment;
            (C) requiring that such flight deck doors remain locked 
        while any such aircraft is in flight except when necessary to 
        permit access and egress by authorized persons; and
            (D) prohibiting the possession of a key to any such flight 
        deck door by any member of the flight crew who is not assigned 
        to the flight deck; and
        (2) take such other action, including modification of safety 
    and security procedures and flight deck redesign, as may be 
    necessary to ensure the safety and security of the aircraft.
    (b) Implementation of Other Methods.--As soon as possible after 
such date of enactment, the Administrator of the Federal Aviation 
Administration may develop and implement methods--
        (1) to use video monitors or other devices to alert pilots in 
    the flight deck to activity in the cabin, except that the use of 
    such monitors or devices shall be subject to nondisclosure 
    requirements applicable to cockpit video recordings under section 
    1114(c);
        (2) to ensure continuous operation of an aircraft transponder 
    in the event of an emergency; and
        (3) to revise the procedures by which cabin crews of aircraft 
    can notify flight deck crews of security breaches and other 
    emergencies, including providing for the installation of switches 
    or other devices or methods in an aircraft cabin to enable flight 
    crews to discreetly notify the pilots in the case of a security 
    breach occurring in the cabin.
    (c) Commuter Aircraft.--The Administrator shall investigate means 
of securing the flight deck of scheduled passenger aircraft operating 
in air transportation or intrastate air transportation that do not have 
a rigid fixed door with a lock between the passenger compartment and 
the flight deck and issue such an order as the Administrator deems 
appropriate to ensure the inaccessibility, to the greatest extent 
feasible, of the flight deck while the aircraft is so operating, taking 
into consideration such aircraft operating in regions where there is 
minimal threat to aviation security or national security.

SEC. 105. DEPLOYMENT OF FEDERAL AIR MARSHALS.

    (a) In General.--Subchapter I of chapter 449 of title 49, United 
States Code, is amended by adding at the end the following:

``Sec. 44917. Deployment of Federal air marshals

    ``(a) In General.--The Under Secretary of Transportation for 
Security under the authority provided by section 44903(d)--
        ``(1) may provide for deployment of Federal air marshals on 
    every passenger flight of air carriers in air transportation or 
    intrastate air transportation;
        ``(2) shall provide for deployment of Federal air marshals on 
    every such flight determined by the Secretary to present high 
    security risks;
        ``(3) shall provide for appropriate training, supervision, and 
    equipment of Federal air marshals;
        ``(4) shall require air carriers providing flights described in 
    paragraph (1) to provide seating for a Federal air marshal on any 
    such flight without regard to the availability of seats on the 
    flight and at no cost to the United States Government or the 
    marshal;
        ``(5) may require air carriers to provide, on a space-available 
    basis, to an off-duty Federal air marshal a seat on a flight to the 
    airport nearest the marshal's home at no cost to the marshal or the 
    United States Government if the marshal is traveling to that 
    airport after completing his or her security duties;
        ``(6) may enter into agreements with Federal, State, and local 
    agencies under which appropriately-trained law enforcement 
    personnel from such agencies, when traveling on a flight of an air 
    carrier, will carry a firearm and be prepared to assist Federal air 
    marshals;
        ``(7) shall establish procedures to ensure that Federal air 
    marshals are made aware of any armed or unarmed law enforcement 
    personnel on board an aircraft; and
        ``(8) may appoint--
            ``(A) an individual who is a retired law enforcement 
        officer;
            ``(B) an individual who is a retired member of the Armed 
        Forces; and
            ``(C) an individual who has been furloughed from an air 
        carrier crew position in the 1-year period beginning on 
        September 11, 2001,
    as a Federal air marshal, regardless of age, if the individual 
    otherwise meets the background and fitness qualifications required 
    for Federal air marshals.
    ``(b) Long Distance Flights.--In making the determination under 
subsection (a)(2), nonstop, long distance flights, such as those 
targeted on September 11, 2001, should be a priority.
    ``(c) Interim Measures.--Until the Under Secretary completes 
implementation of subsection (a), the Under Secretary may use, after 
consultation with and concurrence of the heads of other Federal 
agencies and departments, personnel from those agencies and 
departments, on a nonreimbursable basis, to provide air marshal 
service.''.
    (b) Conforming Amendment.--The analysis for chapter 449 of such 
title is amended by adding after the item relating to section 44916 the 
following:
``44917. Deployment of Federal air marshals.''.

    (c) Basic Pay Defined.--Section 8331(3)(E) of title 5, United 
States Code, is amended to read as follows:
            ``(E) availability pay--
                ``(i) received by a criminal investigator under section 
            5545a of this title; or
                ``(ii) received after September 11, 2001, by a Federal 
            air marshal of the Department of Transportation, subject to 
            all restrictions and earning limitations imposed on 
            criminal investigators under section 5545a;''.

SEC. 106. IMPROVED AIRPORT PERIMETER ACCESS SECURITY.

    (a) In General.--Section 44903 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(h) Improved Airport Perimeter Access Security.--
        ``(1) In general.--The Under Secretary, in consultation with 
    the airport operator and law enforcement authorities, may order the 
    deployment of such personnel at any secure area of the airport as 
    necessary to counter the risk of criminal violence, the risk of 
    aircraft piracy at the airport, the risk to air carrier aircraft 
    operations at the airport, or to meet national security concerns.
        ``(2) Security of aircraft and ground access to secure areas.--
    In determining where to deploy such personnel, the Under Secretary 
    shall consider the physical security needs of air traffic control 
    facilities, parked aircraft, aircraft servicing equipment, aircraft 
    supplies (including fuel), automobile parking facilities within 
    airport perimeters or adjacent to secured facilities, and access 
    and transition areas at airports served by other means of ground or 
    water transportation.
        ``(3) Deployment of federal law enforcement personnel.--The 
    Secretary may enter into a memorandum of understanding or other 
    agreement with the Attorney General or the head of any other 
    appropriate Federal law enforcement agency to deploy Federal law 
    enforcement personnel at an airport in order to meet aviation 
    safety and security concerns.
        ``(4) Airport perimeter screening.--The Under Secretary--
            ``(A) shall require, as soon as practicable after the date 
        of enactment of this subsection, screening or inspection of all 
        individuals, goods, property, vehicles, and other equipment 
        before entry into a secured area of an airport in the United 
        States described in section 44903(c);
            ``(B) shall prescribe specific requirements for such 
        screening and inspection that will assure at least the same 
        level of protection as will result from screening of passengers 
        and their baggage;
            ``(C) shall establish procedures to ensure the safety and 
        integrity of--
                ``(i) all persons providing services with respect to 
            aircraft providing passenger air transportation or 
            intrastate air transportation and facilities of such 
            persons at an airport in the United States described in 
            section 44903(c);
                ``(ii) all supplies, including catering and passenger 
            amenities, placed aboard such aircraft, including the 
            sealing of supplies to ensure easy visual detection of 
            tampering; and
                ``(iii) all persons providing such supplies and 
            facilities of such persons;
            ``(D) shall require vendors having direct access to the 
        airfield and aircraft to develop security programs; and
            ``(E) may provide for the use of biometric or other 
        technology that positively verifies the identity of each 
        employee and law enforcement officer who enters a secure area 
        of an airport.''.
    (b) Small and Medium Airports.--
        (1) Technical support and financial assistance.--The Under 
    Secretary of Transportation for Security shall develop a plan to--
            (A) provide technical support to airports, each of which 
        had less than 1 percent of the total annual enplanements in the 
        United States for the most recent calendar year for which data 
        is available, to enhance security operations; and
            (B) provide financial assistance to those airports to 
        defray the costs of enhancing security.
        (2) Removal of certain restrictions.--
            (A) Certification by operator.--If the operator of an 
        airport described in paragraph (1), after consultation with the 
        appropriate State and local law enforcement authorities, 
        determines that safeguards are in place to sufficiently protect 
        public safety, and so certifies in writing to the Under 
        Secretary, then any security rule, order, or other directive 
        restricting the parking of passenger vehicles shall not apply 
        at that airport after the applicable time period specified in 
        subparagraph (B), unless the Under Secretary, taking into 
        account individual airport circumstances, notifies the airport 
        operator that the safeguards in place do not adequately respond 
        to specific security risks and that the restriction must be 
        continued in order to ensure public safety.
            (B) Countermand period.--The time period within which the 
        Secretary may notify an airport operator, after receiving a 
        certification under subparagraph (A), that a restriction must 
        be continued in order to ensure public safety at the airport 
        is--
                (i) 15 days for a nonhub airport (as defined in section 
            41714(h) of title 49, United States Code);
                (ii) 30 days for a small hub airport (as defined in 
            such section);
                (iii) 60 days for a medium hub airport (as defined in 
            such section); and
                (iv) 120 days for an airport that had at least 1 
            percent of the total annual enplanements in the United 
            States for the most recent calendar year for which data is 
            available.
    (c) Improvement of Secured-Area Access Control.--Section 
44903(g)(2) of title 49, United States Code, is amended--
        (1) by striking ``weaknesses by January 31, 2001;'' in 
    subparagraph (A) and inserting ``weaknesses;'';
        (2) by striking subparagraph (D) and inserting the following:
            ``(D) on an ongoing basis, assess and test for compliance 
        with access control requirements, report annually findings of 
        the assessments, and assess the effectiveness of penalties in 
        ensuring compliance with security procedures and take any other 
        appropriate enforcement actions when noncompliance is found;'';
        (3) by striking ``program by January 31, 2001;'' in 
    subparagraph (F) and inserting ``program;''; and
        (4) by striking subparagraph (G) and inserting the following:
            ``(G) work with airport operators to strengthen access 
        control points in secured areas (including air traffic control 
        operations areas, maintenance areas, crew lounges, baggage 
        handling areas, concessions, and catering delivery areas) to 
        ensure the security of passengers and aircraft and consider the 
        deployment of biometric or similar technologies that identify 
        individuals based on unique personal characteristics.''.
    (d) Airport Security Pilot Program.--Section 44903(c) of title 49, 
United States Code, is amended by adding at the end the following:
        ``(3) Pilot programs.--The Administrator shall establish pilot 
    programs in no fewer than 20 airports to test and evaluate new and 
    emerging technology for providing access control and other security 
    protections for closed or secure areas of the airports. Such 
    technology may include biometric or other technology that ensures 
    only authorized access to secure areas.''.
    (e) Airport Security Awareness Programs.--The Under Secretary of 
Transportation for Security shall require scheduled passenger air 
carriers, and airports in the United States described in section 
44903(c) to develop security awareness programs for airport employees, 
ground crews, gate, ticket, and curbside agents of the air carriers, 
and other individuals employed at such airports.

SEC. 107. CREW TRAINING.

    (a) In General.--Subchapter I of chapter 449 of title 49, United 
States Code, is amended by adding at the end the following:

``Sec. 44918. Crew training

    ``(a) In General.--Not later than 60 days after the date of 
enactment of the Aviation and Transportation Security Act, the 
Administrator of the Federal Aviation Administration, in consultation 
with the Under Secretary of Transportation for Security, appropriate 
law enforcement, security, and terrorism experts, representatives of 
air carriers and labor organizations representing individuals employed 
in commercial aviation, shall develop detailed guidance for a scheduled 
passenger air carrier flight and cabin crew training program to prepare 
crew members for potential threat conditions.
    ``(b) Program Elements.--The guidance shall require such a program 
to include, at a minimum, elements that address the following:
        ``(1) Determination of the seriousness of any occurrence.
        ``(2) Crew communication and coordination.
        ``(3) Appropriate responses to defend oneself.
        ``(4) Use of protective devices assigned to crew members (to 
    the extent such devices are required by the Administrator or Under 
    Secretary).
        ``(5) Psychology of terrorists to cope with hijacker behavior 
    and passenger responses.
        ``(6) Live situational training exercises regarding various 
    threat conditions.
        ``(7) Flight deck procedures or aircraft maneuvers to defend 
    the aircraft.
        ``(8) Any other subject matter deemed appropriate by the 
    Administrator.
    ``(c) Air Carrier Programs.--Within 60 days after the Administrator 
issues the guidance under subsection (a) in final form, each air 
carrier shall develop a flight and cabin crew training program in 
accordance with that guidance and submit it to the Administrator for 
approval. Within 30 days after receiving an air carrier's program under 
this subsection, the Administrator shall review the program and approve 
it or require the air carrier to make any revisions deemed necessary by 
the Administrator for the program to meet the guidance requirements.
    ``(d) Training.--Within 180 days after the Administrator approves 
the training program developed by an air carrier under this section, 
the air carrier shall complete the training of all flight and cabin 
crews in accordance with that program.
    ``(e) Updates.--The Administrator shall update the training 
guidance issued under subsection (a) from time to time to reflect new 
or different security threats and require air carriers to revise their 
programs accordingly and provide additional training to their flight 
and cabin crews.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 449 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 44917 the following:
``44918. Crew training.''.

SEC. 108. SECURITY SCREENING BY PRIVATE COMPANIES.

    (a) In General.--Subchapter I of chapter 449 of title 49, United 
States Code, is amended by adding at the end the following:

``Sec. 44919. Security screening pilot program

    ``(a) Establishment of Program.--The Under Secretary shall 
establish a pilot program under which, upon approval of an application 
submitted by an operator of an airport, the screening of passengers and 
property at the airport under section 44901 will be carried out by the 
screening personnel of a qualified private screening company under a 
contract entered into with the Under Secretary.
    ``(b) Period of Pilot Program.--The pilot program under this 
section shall begin on the last day of the 1-year period beginning on 
the date of enactment of this section and end on the last day of the 3-
year period beginning on such date of enactment.
    ``(c) Applications.--An operator of an airport may submit to the 
Under Secretary an application to participate in the pilot program 
under this section.
    ``(d) Selection of Airports.--From among applications submitted 
under subsection (c), the Under Secretary may select for participation 
in the pilot program not more than 1 airport from each of the 5 airport 
security risk categories, as defined by the Under Secretary.
    ``(e) Supervision of Screened Personnel.--The Under Secretary shall 
provide Federal Government supervisors to oversee all screening at each 
airport participating in the pilot program under this section and 
provide Federal Government law enforcement officers at the airport 
pursuant to this chapter.
    ``(f) Qualified Private Screening Company.--A private screening 
company is qualified to provide screening services at an airport 
participating in the pilot program under this section if the company 
will only employ individuals to provide such services who meet all the 
requirements of this chapter applicable to Federal Government personnel 
who perform screening services at airports under this chapter and will 
provide compensation and other benefits to such individuals that are 
not less than the level of compensation and other benefits provided to 
such Federal Government personnel in accordance with this chapter.
    ``(g) Standards for Private Screening Companies.--The Under 
Secretary may enter into a contract with a private screening company to 
provide screening at an airport participating in the pilot program 
under this section only if the Under Secretary determines and certifies 
to Congress that the private screening company is owned and controlled 
by a citizen of the United States, to the extent that the Under 
Secretary determines that there are private screening companies owned 
and controlled by such citizens.
    ``(h) Termination of Contracts.--The Under Secretary may terminate 
any contract entered into with a private screening company to provide 
screening services at an airport under the pilot program if the Under 
Secretary finds that the company has failed repeatedly to comply with 
any standard, regulation, directive, order, law, or contract applicable 
to the hiring or training of personnel to provide such services or to 
the provision of screening at the airport.
    ``(i) Election.--If a contract is in effect with respect to 
screening at an airport under the pilot program on the last day of the 
3-year period beginning on the date of enactment of this section, the 
operator of the airport may elect to continue to have such screening 
carried out by the screening personnel of a qualified private screening 
company under a contract entered into with the Under Secretary under 
section 44920 or by Federal Government personnel in accordance with 
this chapter.

``Sec. 44920. Security screening opt-out program

    ``(a) In General.--On or after the last day of the 2-year period 
beginning on the date on which the Under Secretary transmits to 
Congress the certification required by section 110(c) of the Aviation 
and Transportation Security Act, an operator of an airport may submit 
to the Under Secretary an application to have the screening of 
passengers and property at the airport under section 44901 to be 
carried out by the screening personnel of a qualified private screening 
company under a contract entered into with the Under Secretary.
    ``(b) Approval of Applications.--The Under Secretary may approve 
any application submitted under subsection (a).
    ``(c) Qualified Private Screening Company.--A private screening 
company is qualified to provide screening services at an airport under 
this section if the company will only employ individuals to provide 
such services who meet all the requirements of this chapter applicable 
to Federal Government personnel who perform screening services at 
airports under this chapter and will provide compensation and other 
benefits to such individuals that are not less than the level of 
compensation and other benefits provided to such Federal Government 
personnel in accordance with this chapter.
    ``(d) Standards for Private Screening Companies.--The Under 
Secretary may enter into a contract with a private screening company to 
provide screening at an airport under this section only if the Under 
Secretary determines and certifies to Congress that--
        ``(1) the level of screening services and protection provided 
    at the airport under the contract will be equal to or greater than 
    the level that would be provided at the airport by Federal 
    Government personnel under this chapter; and
        ``(2) the private screening company is owned and controlled by 
    a citizen of the United States, to the extent that the Under 
    Secretary determines that there are private screening companies 
    owned and controlled by such citizens.
    ``(e) Supervision of Screened Personnel.--The Under Secretary shall 
provide Federal Government supervisors to oversee all screening at each 
airport at which screening services are provided under this section and 
provide Federal Government law enforcement officers at the airport 
pursuant to this chapter.
    ``(f) Termination of Contracts.--The Under Secretary may terminate 
any contract entered into with a private screening company to provide 
screening services at an airport under this section if the Under 
Secretary finds that the company has failed repeatedly to comply with 
any standard, regulation, directive, order, law, or contract applicable 
to the hiring or training of personnel to provide such services or to 
the provision of screening at the airport.''.
    (b) Clerical Amendment.--The analysis for such subchapter is 
amended by adding after the item relating to section 44918 the 
following:
``44919. Security screening pilot program.
``44920. Security screening opt-out program.''.

SEC. 109. ENHANCED SECURITY MEASURES.

    (a) In General.--The Under Secretary of Transportation for Security 
may take the following actions:
        (1) Require effective 911 emergency call capability for 
    telephones serving passenger aircraft and passenger trains.
        (2) Establish a uniform system of identification for all State 
    and local law enforcement personnel for use in obtaining permission 
    to carry weapons in aircraft cabins and in obtaining access to a 
    secured area of an airport, if otherwise authorized to carry such 
    weapons.
        (3) Establish requirements to implement trusted passenger 
    programs and use available technologies to expedite the security 
    screening of passengers who participate in such programs, thereby 
    allowing security screening personnel to focus on those passengers 
    who should be subject to more extensive screening.
        (4) In consultation with the Commissioner of the Food and Drug 
    Administration, develop alternative security procedures under which 
    a medical product to be transported on a flight of an air carrier 
    would not be subject to an inspection that would irreversibly 
    damage the product.
        (5) Provide for the use of technologies, including wireless and 
    wire line data technologies, to enable the private and secure 
    communication of threats to aid in the screening of passengers and 
    other individuals on airport property who are identified on any 
    State or Federal security-related data base for the purpose of 
    having an integrated response coordination of various authorized 
    airport security forces.
        (6) In consultation with the Administrator of the Federal 
    Aviation Administration, consider whether to require all pilot 
    licenses to incorporate a photograph of the license holder and 
    appropriate biometric imprints.
        (7) Provide for the use of voice stress analysis, biometric, or 
    other technologies to prevent a person who might pose a danger to 
    air safety or security from boarding the aircraft of an air carrier 
    or foreign air carrier in air transportation or intrastate air 
    transportation.
        (8) Provide for the use of technology that will permit enhanced 
    instant communications and information between airborne passenger 
    aircraft and appropriate individuals or facilities on the ground.
    (b) Report.--Not later than 6 months after the date of enactment of 
this Act, and annually thereafter until the Under Secretary has 
implemented or decided not to take each of the actions specified in 
subsection (a), the Under Secretary shall transmit to Congress a report 
on the progress of the Under Secretary in evaluating and taking such 
actions, including any legislative recommendations that the Under 
Secretary may have for enhancing transportation security.

SEC. 110. SCREENING.

    (a) Review and Development of Ways To Strengthen Security.--Section 
44932(c) of title 49, United States Code, is amended--
        (1) by striking ``x-ray'' in paragraph (4);
        (2) by striking ``and'' at the end of paragraph (4);
        (3) by striking ``passengers.'' in paragraph (5) and inserting 
    ``passengers;''; and
        (4) by adding at the end the following:
        ``(6) to strengthen and enhance the ability to detect or 
    neutralize nonexplosive weapons, such as biological, chemical, or 
    similar substances; and
        ``(7) to evaluate such additional measures as may be 
    appropriate to enhance inspection of passengers, baggage, and 
    cargo.''.
    (b) Passengers and Property.--Section 44901 of title 49, United 
States Code, is amended--
        (1) by redesignating subsection (c) as subsection (h); and
        (2) by striking subsections (a) and (b) and inserting the 
    following:
    ``(a) In General.--The Under Secretary of Transportation for 
Security shall provide for the screening of all passengers and 
property, including United States mail, cargo, carry-on and checked 
baggage, and other articles, that will be carried aboard a passenger 
aircraft operated by an air carrier or foreign air carrier in air 
transportation or intrastate air transportation. In the case of flights 
and flight segments originating in the United States, the screening 
shall take place before boarding and shall be carried out by a Federal 
Government employee (as defined in section 2105 of title 5, United 
States Code), except as otherwise provided in section 44919 or 44920 
and except for identifying passengers and baggage for screening under 
the CAPPS and known shipper programs and conducting positive bag-match 
programs.
    ``(b) Supervision of Screening.--All screening of passengers and 
property at airports in the United States where screening is required 
under this section shall be supervised by uniformed Federal personnel 
of the Transportation Security Administration who shall have the power 
to order the dismissal of any individual performing such screening.
    ``(c) Checked Baggage.--A system must be in operation to screen all 
checked baggage at all airports in the United States as soon as 
practicable but not later than the 60th day following the date of 
enactment of the Aviation and Transportation Security Act.
    ``(d) Explosive Detection Systems.--
        ``(1) In general.--The Under Secretary of Transportation for 
    Security shall take all necessary action to ensure that--
            ``(A) explosive detection systems are deployed as soon as 
        possible to ensure that all United States airports described in 
        section 44903(c) have sufficient explosive detection systems to 
        screen all checked baggage no later than December 31, 2002, and 
        that as soon as such systems are in place at an airport, all 
        checked baggage at the airport is screened by those systems; 
        and
            ``(B) all systems deployed under subparagraph (A) are fully 
        utilized; and
            ``(C) if explosive detection equipment at an airport is 
        unavailable, all checked baggage is screened by an alternative 
        means.
    ``(e) Mandatory Screening Where EDS Not Yet Available.--As soon as 
practicable but not later than the 60th day following the date of 
enactment of the Aviation and Transportation Security Act and until the 
requirements of subsection (b)(1)(A) are met, the Under Secretary shall 
require alternative means for screening any piece of checked baggage 
that is not screened by an explosive detection system. Such alternative 
means may include 1 or more of the following:
        ``(1) A bag-match program that ensures that no checked baggage 
    is placed aboard an aircraft unless the passenger who checked the 
    baggage is aboard the aircraft.
        ``(2) Manual search.
        ``(3) Search by canine explosive detection units in combination 
    with other means.
        ``(4) Other means or technology approved by the Under 
    Secretary.
    ``(f) Cargo Deadline.--A system must be in operation to screen, 
inspect, or otherwise ensure the security of all cargo that is to be 
transported in all-cargo aircraft in air transportation and intrastate 
air transportation as soon as practicable after the date of enactment 
of the Aviation and Transportation Security Act.
    ``(g) Deployment of Armed Personnel.--
        ``(1) In general.--The Under Secretary shall order the 
    deployment of law enforcement personnel authorized to carry 
    firearms at each airport security screening location to ensure 
    passenger safety and national security.
        ``(2) Minimum requirements.--Except at airports required to 
    enter into agreements under subsection (c), the Under Secretary 
    shall order the deployment of at least 1 law enforcement officer at 
    each airport security screening location. At the 100 largest 
    airports in the United States, in terms of annual passenger 
    enplanements for the most recent calendar year for which data are 
    available, the Under Secretary shall order the deployment of 
    additional law enforcement personnel at airport security screening 
    locations if the Under Secretary determines that the additional 
    deployment is necessary to ensure passenger safety and national 
    security.''.
    (c) Deadline for Deployment of Federal Screeners.--
        (1) In general.--Not later than 1 year after the date of 
    enactment of this Act, the Under Secretary of Transportation for 
    Security shall deploy at all airports in the United States where 
    screening is required under section 44901 of title 49, United 
    States Code, a sufficient number of Federal screeners, Federal 
    Security Managers, Federal security personnel, and Federal law 
    enforcement officers to conduct the screening of all passengers and 
    property under section 44901 of such title at such airports.
        (2) Certification to congress.--Not later than 1 year after the 
    date of enactment of this Act, the Under Secretary shall transmit 
    to Congress a certification that the requirement of paragraph (1) 
    has been met.
    (d) Reports.--
        (1) Deployment.--Within 6 months after the date of enactment of 
    this Act, the Under Secretary of Transportation for Security shall 
    report to the Committee on Commerce, Science, and Transportation of 
    the Senate and to the Committee on Transportation and 
    Infrastructure of the House of Representatives on the deployment of 
    the systems required by section 44901(c) of title 49, United States 
    Code. The Under Secretary shall include in the report--
            (A) an installation schedule;
            (B) the dates of installation of each system; and
            (C) the date on which each system installed is operational.
        (2) Screening of small aircraft.--Within 1 year after the date 
    of enactment of this Act, the Under Secretary of Transportation for 
    Security shall transmit a report to the Committee on Commerce, 
    Science, and Transportation of the Senate and Committee on 
    Transportation and Infrastructure of the House of Representatives 
    on the screening requirements applicable to passengers boarding, 
    and property being carried aboard, aircraft with 60 seats or less 
    used in scheduled passenger service with recommendations for any 
    necessary changes in those requirements.
    SEC. 111. TRAINING AND EMPLOYMENT OF SECURITY SCREENING PERSONNEL.
    (a) In General.--Section 44935 of title 49, United States Code, is 
amended--
        (1) by redesignating subsection (f) as subsection (i); and
        (2) by striking subsection (e) and inserting the following:
    ``(e) Security Screeners.--
        ``(1) Training program.--The Under Secretary of Transportation 
    for Security shall establish a program for the hiring and training 
    of security screening personnel.
        ``(2) Hiring.--
            ``(A) Qualifications.--Within 30 days after the date of 
        enactment of the Aviation and Transportation Security Act, the 
        Under Secretary shall establish qualification standards for 
        individuals to be hired by the United States as security 
        screening personnel. Notwithstanding any provision of law, 
        those standards shall require, at a minimum, an individual--
                ``(i) to have a satisfactory or better score on a 
            Federal security screening personnel selection examination;
                ``(ii) to be a citizen of the United States;
                ``(iii) to meet, at a minimum, the requirements set 
            forth in subsection (f);
                ``(iv) to meet such other qualifications as the Under 
            Secretary may establish; and
                ``(v) to have the ability to demonstrate daily a 
            fitness for duty without any impairment due to illegal 
            drugs, sleep deprivation, medication, or alcohol.
            ``(B) Background checks.--The Under Secretary shall require 
        that an individual to be hired as a security screener undergo 
        an employment investigation (including a criminal history 
        record check) under section 44936(a)(1).
            ``(C) Disqualification of individuals who present national 
        security risks.--The Under Secretary, in consultation with the 
        heads of other appropriate Federal agencies, shall establish 
        procedures, in addition to any background check conducted under 
        section 44936, to ensure that no individual who presents a 
        threat to national security is employed as a security screener.
        ``(3) Examination; review of existing rules.--The Under 
    Secretary shall develop a security screening personnel examination 
    for use in determining the qualification of individuals seeking 
    employment as security screening personnel. The Under Secretary 
    shall also review, and revise as necessary, any standard, rule, or 
    regulation governing the employment of individuals as security 
    screening personnel.
    ``(f) Employment Standards for Screening Personnel.--
        ``(1) Screener requirements.--Notwithstanding any provision of 
    law, an individual may not be deployed as a security screener 
    unless that individual meets the following requirements:
            ``(A) The individual shall possess a high school diploma, a 
        general equivalency diploma, or experience that the Under 
        Secretary has determined to be sufficient for the individual to 
        perform the duties of the position.
            ``(B) The individual shall possess basic aptitudes and 
        physical abilities, including color perception, visual and 
        aural acuity, physical coordination, and motor skills, to the 
        following standards:
                ``(i) Screeners operating screening equipment shall be 
            able to distinguish on the screening equipment monitor the 
            appropriate imaging standard specified by the Under 
            Secretary.
                ``(ii) Screeners operating any screening equipment 
            shall be able to distinguish each color displayed on every 
            type of screening equipment and explain what each color 
            signifies.
                ``(iii) Screeners shall be able to hear and respond to 
            the spoken voice and to audible alarms generated by 
            screening equipment in an active checkpoint environment.
                ``(iv) Screeners performing physical searches or other 
            related operations shall be able to efficiently and 
            thoroughly manipulate and handle such baggage, containers, 
            and other objects subject to security processing.
                ``(v) Screeners who perform pat-downs or hand-held 
            metal detector searches of individuals shall have 
            sufficient dexterity and capability to thoroughly conduct 
            those procedures over an individual's entire body.
            ``(C) The individual shall be able to read, speak, and 
        write English well enough to--
                ``(i) carry out written and oral instructions regarding 
            the proper performance of screening duties;
                ``(ii) read English language identification media, 
            credentials, airline tickets, and labels on items normally 
            encountered in the screening process;
                ``(iii) provide direction to and understand and answer 
            questions from English-speaking individuals undergoing 
            screening; and
                ``(iv) write incident reports and statements and log 
            entries into security records in the English language.
            ``(D) The individual shall have satisfactorily completed 
        all initial, recurrent, and appropriate specialized training 
        required by the security program, except as provided in 
        paragraph (3).
        ``(2) Veterans preference.--The Under Secretary shall provide a 
    preference for the hiring of an individual as a security screener 
    if the individual is a member or former member of the armed forces 
    and if the individual is entitled, under statute, to retired, 
    retirement, or retainer pay on account of service as a member of 
    the armed forces.
        ``(3) Exceptions.--An individual who has not completed the 
    training required by this section may be deployed during the on-
    the-job portion of training to perform functions if that 
    individual--
            ``(A) is closely supervised; and
            ``(B) does not make independent judgments as to whether 
        individuals or property may enter a sterile area or aircraft 
        without further inspection.
        ``(4) Remedial training.--No individual employed as a security 
    screener may perform a screening function after that individual has 
    failed an operational test related to that function until that 
    individual has successfully completed the remedial training 
    specified in the security program.
        ``(5) Annual proficiency review.--The Under Secretary shall 
    provide that an annual evaluation of each individual assigned 
    screening duties is conducted and documented. An individual 
    employed as a security screener may not continue to be employed in 
    that capacity unless the evaluation demonstrates that the 
    individual--
            ``(A) continues to meet all qualifications and standards 
        required to perform a screening function;
            ``(B) has a satisfactory record of performance and 
        attention to duty based on the standards and requirements in 
        the security program; and
            ``(C) demonstrates the current knowledge and skills 
        necessary to courteously, vigilantly, and effectively perform 
        screening functions.
        ``(6) Operational testing.--In addition to the annual 
    proficiency review conducted under paragraph (5), the Under 
    Secretary shall provide for the operational testing of such 
    personnel.
    ``(g) Training.--
        ``(1) Use of other agencies.--The Under Secretary may enter 
    into a memorandum of understanding or other arrangement with any 
    other Federal agency or department with appropriate law enforcement 
    responsibilities, to provide personnel, resources, or other forms 
    of assistance in the training of security screening personnel.
        ``(2) Training plan.--Within 60 days after the date of 
    enactment of the Aviation and Transportation Security Act, the 
    Under Secretary shall develop a plan for the training of security 
    screening personnel. The plan shall require, at a minimum, that a 
    security screener--
            ``(A) has completed 40 hours of classroom instruction or 
        successfully completed a program that the Under Secretary 
        determines will train individuals to a level of proficiency 
        equivalent to the level that would be achieved by such 
        classroom instruction;
            ``(B) has completed 60 hours of on-the-job instructions; 
        and
            ``(C) has successfully completed an on-the-job training 
        examination prescribed by the Under Secretary.
        ``(3) Equipment-specific training.--An individual employed as a 
    security screener may not use any security screening device or 
    equipment in the scope of that individual's employment unless the 
    individual has been trained on that device or equipment and has 
    successfully completed a test on the use of the device or 
    equipment.
    ``(h) Technological Training.--
        ``(1) In general.--The Under Secretary shall require training 
    to ensure that screeners are proficient in using the most up-to-
    date new technology and to ensure their proficiency in recognizing 
    new threats and weapons.
        ``(2) Periodic assessments.--The Under Secretary shall make 
    periodic assessments to determine if there are dual use items and 
    inform security screening personnel of the existence of such items.
        ``(3) Current lists of dual use items.--Current lists of dual 
    use items shall be part of the ongoing training for screeners.
        ``(4) Dual use defined.--For purposes of this subsection, the 
    term `dual use' item means an item that may seem harmless but that 
    may be used as a weapon.
    ``(i) Limitation on Right To Strike.--An individual that screens 
passengers or property, or both, at an airport under this section may 
not participate in a strike, or assert the right to strike, against the 
person (including a governmental entity) employing such individual to 
perform such screening.
    ``(j) Uniforms.--The Under Secretary shall require any individual 
who screens passengers and property pursuant to section 44901 to be 
attired while on duty in a uniform approved by the Under Secretary.''.
    (b) Conforming Amendments.--Section 44936(a)(1) of title 49, United 
States Code, is amended--
        (1) in subparagraph (A) by inserting ``as a security screener 
    under section 44935(e) or a position'' after ``a position''; and
        (2) in subparagraph (E) by striking clause (iv).
    (c) Transition.--The Under Secretary of Transportation for Security 
shall complete the full implementation of section 44935 (e), (f), (g), 
and (h) of title 49, United States Code, as amended by subsection (a), 
as soon as is practicable. The Under Secretary may make or continue 
such arrangements for the training of security screeners under that 
section as the Under Secretary determines necessary pending full 
implementation of that section as so amended.
    (d) Screener Personnel.--Notwithstanding any other provision of 
law, the Under Secretary of Transportation for Security may employ, 
appoint, discipline, terminate, and fix the compensation, terms, and 
conditions of employment of Federal service for such a number of 
individuals as the Under Secretary determines to be necessary to carry 
out the screening functions of the Under Secretary under section 44901 
of title 49, United States Code. The Under Secretary shall establish 
levels of compensation and other benefits for individuals so employed.

SEC. 112. RESEARCH AND DEVELOPMENT.

    (a) In General.--Section 44912(b)(1) of title 49, United States 
Code, is amended--
        (1) by striking ``complete an intensive review of'' and 
    inserting ``periodically review'';
        (2) by striking ``commercial aircraft in service and expected 
    to be in service in the 10-year period beginning on November 16, 
    1990;'' in subparagraph (B) and inserting ``aircraft in air 
    transportation;''; and
        (3) by redesignating subparagraphs (D) through (F) as 
    subparagraphs (E) through (G), respectively, and inserting after 
    subparagraph (C) the following:
            ``(D) the potential release of chemical, biological, or 
        similar weapons or devices either within an aircraft or within 
        an airport;''.
    (b) Additional Matters Regarding Research and Development.--
        (1) Additional program requirements.--Subsection (a) of section 
    44912 of title 49, United States Code, is amended--
            (A) by redesignating paragraph (4) as paragraph (5); and
            (B) by inserting after paragraph (3) the following new 
        paragraph (4):
    ``(4)(A) In carrying out the program established under this 
subsection, the Administrator shall designate an individual to be 
responsible for engineering, research, and development with respect to 
security technology under the program.
    ``(B) The individual designated under subparagraph (A) shall use 
appropriate systems engineering and risk management models in making 
decisions regarding the allocation of funds for engineering, research, 
and development with respect to security technology under the program.
    ``(C) The individual designated under subparagraph (A) shall, on an 
annual basis, submit to the Research, Engineering and Development 
Advisory Committee a report on activities under this paragraph during 
the preceding year. Each report shall include, for the year covered by 
such report, information on--
        ``(i) progress made in engineering, research, and development 
    with respect to security technology;
        ``(ii) the allocation of funds for engineering, research, and 
    development with respect to security technology; and
        ``(iii) engineering, research, and development with respect to 
    any technologies drawn from other agencies, including the rationale 
    for engineering, research, and development with respect to such 
    technologies.''.
        (2) Review of threats.--Subsection (b)(1) of that section is 
    further amended--
            (A) by redesignating subparagraphs (A) through (G) as 
        subparagraphs (B) through (H) respectively; and
            (B) by inserting before subparagraph (B), as so 
        redesignated, the following new subparagraph (A):
        ``(A) a comprehensive systems analysis (employing vulnerability 
    analysis, threat attribute definition, and technology roadmaps) of 
    the civil aviation system, including--
            ``(i) the destruction, commandeering, or diversion of civil 
        aircraft or the use of civil aircraft as a weapon; and
            ``(ii) the disruption of civil aviation service, including 
        by cyber attack;''.
        (3) Scientific advisory panel.--Subsection (c) of that section 
    is amended to read as follows:
    ``(c) Scientific Advisory Panel.--(1) The Administrator shall 
establish a scientific advisory panel, as a subcommittee of the 
Research, Engineering, and Development Advisory Committee, to review, 
comment on, advise the progress of, and recommend modifications in, the 
program established under subsection (a) of this section, including the 
need for long-range research programs to detect and prevent 
catastrophic damage to commercial aircraft, commercial aviation 
facilities, commercial aviation personnel and passengers, and other 
components of the commercial aviation system by the next generation of 
terrorist weapons.
    ``(2)(A) The advisory panel shall consist of individuals who have 
scientific and technical expertise in--
        ``(i) the development and testing of effective explosive 
    detection systems;
        ``(ii) aircraft structure and experimentation to decide on the 
    type and minimum weights of explosives that an effective explosive 
    detection technology must be capable of detecting;
        ``(iii) technologies involved in minimizing airframe damage to 
    aircraft from explosives; and
        ``(iv) other scientific and technical areas the Administrator 
    considers appropriate.
    ``(B) In appointing individuals to the advisory panel, the 
Administrator should consider individuals from academia and the 
national laboratories, as appropriate.
    ``(3) The Administrator shall organize the advisory panel into 
teams capable of undertaking the review of policies and technologies 
upon request.
    ``(4) Not later than 90 days after the date of the enactment of the 
Aviation and Transportation Security Act, and every two years 
thereafter, the Administrator shall review the composition of the 
advisory panel in order to ensure that the expertise of the individuals 
on the panel is suited to the current and anticipated duties of the 
panel.''.

SEC. 113. FLIGHT SCHOOL SECURITY.

    (a) In General.--Subchapter II of chapter 449 of title 49, United 
States Code, is amended by adding at the end the following new section:

``Sec. 44939. Training to operate certain aircraft

    ``(a) Waiting Period.--A person subject to regulation under this 
part may provide training in the operation of any aircraft having a 
maximum certificated takeoff weight of 12,500 pounds or more to an 
alien (as defined in section 101(a)(3) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)(3))) or to any other individual 
specified by the Under Secretary of Transportation for Security only 
if--
        ``(1) that person has first notified the Attorney General that 
    the individual has requested such training and furnished the 
    Attorney General with that individual's identification in such form 
    as the Attorney General may require; and
        ``(2) the Attorney General has not directed, within 45 days 
    after being notified under paragraph (1), that person not to 
    provide the requested training because the Attorney General has 
    determined that the individual presents a risk to aviation or 
    national security.
    ``(b) Interruption of Training.--If the Attorney General, more than 
45 days after receiving notification under subsection (a) from a person 
providing training described in subsection (a), determines that the 
individual presents a risk to aviation or national security, the 
Attorney General shall immediately notify the person providing the 
training of the determination and that person shall immediately 
terminate the training.
    ``(c) Covered Training.--For the purposes of subsection (a), 
training includes in-flight training, training in a simulator, and any 
other form or aspect of training.
    ``(d) Security Awareness Training for Employees.--The Under 
Secretary shall require flight schools to conduct a security awareness 
program for flight school employees to increase their awareness of 
suspicious circumstances and activities of individuals enrolling in or 
attending flight school.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``44939. Training to operate certain aircraft.''.

    (c) International Cooperation.--The Secretary of Transportation, in 
consultation with the Secretary of State, shall work with the 
International Civil Aviation Organization and the civil aviation 
authorities of other countries to improve international aviation 
security through screening programs for flight instruction candidates.
    (d) Effective Date.--The amendment made by subsection (a) applies 
to applications for training received after the date of enactment of 
this Act.
    SEC. 114. INCREASED PENALTIES FOR INTERFERENCE WITH SECURITY 
      PERSONNEL.
    (a) In General.--Chapter 465 of title 49, United States Code, is 
amended by inserting after section 46502 the following:

``Sec. 46503. Interference with security screening personnel

    ``An individual in an area within a commercial service airport in 
the United States who, by assaulting a Federal, airport, or air carrier 
employee who has security duties within the airport, interferes with 
the performance of the duties of the employee or lessens the ability of 
the employee to perform those duties, shall be fined under title 18, 
imprisoned for not more than 10 years, or both. If the individual used 
a dangerous weapon in committing the assault or interference, the 
individual may be imprisoned for any term of years or life 
imprisonment.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 465 of 
such title is amended by inserting after the item relating to section 
46502 the following:
``46503. Interference with security screening personnel.''.

SEC. 115. PASSENGER MANIFESTS.

    Section 44909 is amended by adding at the end the following:
    ``(c) Flights in Foreign Air Transportation to the United States.--
        ``(1) In general.--Not later than 60 days after the date of 
    enactment of the Aviation and Transportation Security Act, each air 
    carrier and foreign air carrier operating a passenger flight in 
    foreign air transportation to the United States shall provide to 
    the Commissioner of Customs by electronic transmission a passenger 
    and crew manifest containing the information specified in paragraph 
    (2). Carriers may use the advanced passenger information system 
    established under section 431 of the Tariff Act of 1930 (19 U.S.C. 
    1431) to provide the information required by the preceding 
    sentence.
        ``(2) Information.--A passenger and crew manifest for a flight 
    required under paragraph (1) shall contain the following 
    information:
            ``(A) The full name of each passenger and crew member.
            ``(B) The date of birth and citizenship of each passenger 
        and crew member.
            ``(C) The sex of each passenger and crew member.
            ``(D) The passport number and country of issuance of each 
        passenger and crew member if required for travel.
            ``(E) The United States visa number or resident alien card 
        number of each passenger and crew member, as applicable.
            ``(F) Such other information as the Under Secretary, in 
        consultation with the Commissioner of Customs, determines is 
        reasonably necessary to ensure aviation safety.
        ``(3) Passenger name records.--The carriers shall make 
    passenger name record information available to the Customs Service 
    upon request.
        ``(4) Transmission of manifest.--Subject to paragraph (5), a 
    passenger and crew manifest required for a flight under paragraph 
    (1) shall be transmitted to the Customs Service in advance of the 
    aircraft landing in the United States in such manner, time, and 
    form as the Customs Service prescribes.
        ``(5) Transmission of manifests to other federal agencies.--
    Upon request, information provided to the Under Secretary or the 
    Customs Service under this subsection may be shared with other 
    Federal agencies for the purpose of protecting national 
    security.''.

SEC. 116. AIR TRANSPORTATION ARRANGEMENTS IN CERTAIN STATES.

    (a) In General.--Notwithstanding any provision of section 41309(a) 
of title 49, United States Code, to the contrary, air carriers 
providing air transportation on flights which both originate and 
terminate at points within the same State may file an agreement, 
request, modification, or cancellation of an agreement within the scope 
of that section with the Secretary of Transportation upon a declaration 
by the Governor of the State that such agreement, request, 
modification, or cancellation is necessary to ensure the continuing 
availability of such air transportation within that State.
    (b) Approval of Secretary.--The Secretary may approve any such 
agreement, request, modification, or cancellation and grant an 
exemption under section 41308(c) of title 49, United States Code, to 
the extent necessary to effectuate such agreement, request, 
modification, or cancellation, without regard to the provisions of 
section 41309(b) or (c) of that title.
    (c) Public Interest Requirement.--The Secretary may approve such an 
agreement, request, modification, or cancellation if the Secretary 
determines that--
        (1) the State to which it relates has extraordinary air 
    transportation needs and concerns; and
        (2) approval is in the public interest.
    (d) Termination.--An approval under subsection (b) and an exemption 
under section 41308(c) of title 49, United States Code, granted under 
subsection (b) shall terminate on the earlier of the 2 following dates:
        (1) A date established by the Secretary in the Secretary's 
    discretion.
        (2) October 1, 2002.
    (e) Extension.--Notwithstanding subsection (d), if the Secretary 
determines that it is in the public interest, the Secretary may extend 
the termination date under subsection (d)(2) until a date no later than 
October 1, 2003.
    (f) Reports.--If the Secretary approves any such agreement, 
request, modification, or cancellation under this section and grants an 
exemption, the Secretary shall transmit a report to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee 
on Transportation and Infrastructure of the House of Representatives 
within 6 months describing what actions have been taken by the air 
carriers to which the exemption was granted. The Secretary shall also 
notify those committees if the Secretary extends the termination date 
under subsection (e).

SEC. 117. AIRLINE COMPUTER RESERVATION SYSTEMS.

    In order to ensure that all airline computer reservation systems 
maintained by United States air carriers are secure from unauthorized 
access by persons seeking information on reservations, passenger 
manifests, or other nonpublic information, the Secretary of 
Transportation shall require all such air carriers to utilize to the 
maximum extent practicable the best technology available to secure 
their computer reservation system against such unauthorized access.

SEC. 118. SECURITY SERVICE FEE.

    (a) In General.--Subchapter II of chapter 449 is amended by adding 
at the end the following:

``Sec. 44940. Security service fee

    ``(a) General Authority.--
        ``(1) Passenger fees.--The Under Secretary of Transportation 
    for Security shall impose a uniform fee, on passengers of air 
    carriers and foreign air carriers in air transportation and 
    intrastate air transportation originating at airports in the United 
    States, to pay for the following costs of providing civil aviation 
    security services:
            ``(A) Salary, benefits, overtime, retirement and other 
        costs of screening personnel, their supervisors and managers, 
        and Federal law enforcement personnel deployed at airport 
        security screening locations under section 44901.
            ``(B) The costs of training personnel described in 
        subparagraph (A), and the acquisition, operation, and 
        maintenance of equipment used by such personnel.
            ``(C) The costs of performing background investigations of 
        personnel described in subparagraphs (A), (D), (F), and (G).
            ``(D) The costs of the Federal air marshals program.
            ``(E) The costs of performing civil aviation security 
        research and development under this title.
            ``(F) The costs of Federal Security Managers under section 
        44903.
            ``(G) The costs of deploying Federal law enforcement 
        personnel pursuant to section 44903(h).
    The amount of such costs shall be determined by the Under Secretary 
    and shall not be subject to judicial review.
        ``(2) Air carrier fees.--
            ``(A) Authority.--In addition to the fee imposed pursuant 
        to paragraph (1), and only to the extent that the Under 
        Secretary estimates that such fee will be insufficient to pay 
        for the costs of providing civil aviation security services 
        described in paragraph (1), the Under Secretary may impose a 
        fee on air carriers and foreign air carriers engaged in air 
        transportation and intrastate air transportation to pay for the 
        difference between any such costs and the amount collected from 
        such fee, as estimated by the Under Secretary at the beginning 
        of each fiscal year. The estimates of the Under Secretary under 
        this subparagraph are not subject to judicial review.
            ``(B) Limitations.--
                ``(i) Overall limit.--The amounts of fees collected 
            under this paragraph for each fiscal year may not exceed, 
            in the aggregate, the amounts paid in calendar year 2000 by 
            carriers described in subparagraph (A) for screening 
            passengers and property, as determined by the Under 
            Secretary.
                ``(ii) Per-carrier limit.--The amount of fees collected 
            under this paragraph from an air carrier described in 
            subparagraph (A) for each of fiscal years 2002, 2003, and 
            2004 may not exceed the amount paid in calendar year 2000 
            by that carrier for screening passengers and property, as 
            determined by the Under Secretary.
                ``(iii) Adjustment of per-carrier limit.--For fiscal 
            year 2005 and subsequent fiscal years, the per-carrier 
            limitation under clause (ii) may be determined by the Under 
            Secretary on the basis of market share or any other 
            appropriate measure in lieu of actual screening costs in 
            calendar year 2000.
                ``(iv) Finality of determinations.--Determinations of 
            the Under Secretary under this subparagraph are not subject 
            to judicial review.
            ``(C) Special rule for fiscal year 2002.--The amount of 
        fees collected under this paragraph from any carrier for fiscal 
        year 2002 may not exceed the amounts paid by that carrier for 
        screening passengers and property for a period of time in 
        calendar year 2000 proportionate to the period of time in 
        fiscal year 2002 during which fees are collected under this 
        paragraph.
    ``(b) Schedule of Fees.--In imposing fees under subsection (a), the 
Under Secretary shall ensure that the fees are reasonably related to 
the Transportation Security Administration's costs of providing 
services rendered.
    ``(c) Limitation on Fee.--Fees imposed under subsection (a)(1) may 
not exceed $2.50 per enplanement in air transportation or intrastate 
air transportation that originates at an airport in the United States, 
except that the total amount of such fees may not exceed $5.00 per one-
way trip.
    ``(d) Imposition of Fee.--
        ``(1) In general.--Notwithstanding section 9701 of title 31 and 
    the procedural requirements of section 553 of title 5, the Under 
    Secretary shall impose the fee under subsection (a)(1), and may 
    impose a fee under subsection (a)(2), through the publication of 
    notice of such fee in the Federal Register and begin collection of 
    the fee within 60 days of the date of enactment of this Act, or as 
    soon as possible thereafter.
        ``(2) Special rules passenger fees.--A fee imposed under 
    subsection (a)(1) through the procedures under subsection (d) shall 
    apply only to tickets sold after the date on which such fee is 
    imposed. If a fee imposed under subsection (a)(1) through the 
    procedures under subsection (d) on transportation of a passenger of 
    a carrier described in subsection (a)(1) is not collected from the 
    passenger, the amount of the fee shall be paid by the carrier.
        ``(3) Subsequent modification of fee.--After imposing a fee in 
    accordance with paragraph (1), the Under Secretary may modify, from 
    time to time through publication of notice in the Federal Register, 
    the imposition or collection of such fee, or both.
        ``(4) Limitation on collection.--No fee may be collected under 
    this section except to the extent that the expenditure of the fee 
    to pay the costs of activities and services for which the fee is 
    imposed is provided for in advance in an appropriations Act.
    ``(e) Administration of Fees.--
        ``(1) Fees payable to under secretary.--All fees imposed and 
    amounts collected under this section are payable to the Under 
    Secretary.
        ``(2) Fees collected by air carrier.--A fee imposed under 
    subsection (a)(1) shall be collected by the air carrier or foreign 
    air carrier that sells a ticket for transportation described in 
    subsection (a)(1).
        ``(3) Due date for remittance.--A fee collected under this 
    section shall be remitted on the last day of each calendar month by 
    the carrier collecting the fee. The amount to be remitted shall be 
    for the calendar month preceding the calendar month in which the 
    remittance is made.
        ``(4) Information.--The Under Secretary may require the 
    provision of such information as the Under Secretary decides is 
    necessary to verify that fees have been collected and remitted at 
    the proper times and in the proper amounts.
        ``(5) Fee not subject to tax.--For purposes of section 4261 of 
    the Internal Revenue Code of 1986 (26 U.S.C. 4261), a fee imposed 
    under this section shall not be considered to be part of the amount 
    paid for taxable transportation.
        ``(6) Cost of collecting fee.--No portion of the fee collected 
    under this section may be retained by the air carrier or foreign 
    air carrier for the costs of collecting, handling, or remitting the 
    fee except for interest accruing to the carrier after collection 
    and before remittance.
    ``(f) Receipts Credited as Offsetting Collections.--Notwithstanding 
section 3302 of title 31, any fee collected under this section--
        ``(1) shall be credited as offsetting collections to the 
    account that finances the activities and services for which the fee 
    is imposed;
        ``(2) shall be available for expenditure only to pay the costs 
    of activities and services for which the fee is imposed; and
        ``(3) shall remain available until expended.
    ``(g) Refunds.--The Under Secretary may refund any fee paid by 
mistake or any amount paid in excess of that required.
    ``(h) Exemptions.--The Under Secretary may exempt from the 
passenger fee imposed under subsection (a)(1) any passenger enplaning 
at an airport in the United States that does not receive screening 
services under section 44901 for that segment of the trip for which the 
passenger does not receive screening.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by adding at the end the following:
``44940. Security service fee.''.

    (c) Specific Authorization of Appropriations.--
        (1) In general.--Part C of subtitle VII of title 49, United 
    States Code, is amended by adding at the end the following:

                ``CHAPTER 483--AVIATION SECURITY FUNDING

``Sec.
``48301. Aviation security funding.

``Sec. 48301. Aviation security funding

    ``(a) In General.--There are authorized to be appropriated for 
fiscal years 2002, 2003, 2004, and 2005 such sums as may be necessary 
to carry out chapter 449 and related aviation security activities under 
this title. Any amounts appropriated pursuant to this section for 
fiscal year 2002 shall remain available until expended.
    ``(b) Grants for Aircraft Security.--There is authorized to be 
appropriated $500,000,000 for fiscal year 2002 to the Secretary of 
Transportation to make grants to or other agreements with air carriers 
(including intrastate air carriers) to--
        ``(1) fortify cockpit doors to deny access from the cabin to 
    the pilots in the cockpit;
        ``(2) provide for the use of video monitors or other devices to 
    alert the cockpit crew to activity in the passenger cabin;
        ``(3) ensure continuous operation of the aircraft transponder 
    in the event the crew faces an emergency; and
        ``(4) provide for the use of other innovative technologies to 
    enhance aircraft security.''.
        (2) Conforming amendment.--The subtitle analysis for subtitle 
    VII of title 49, United States Code, is amended by inserting after 
    the item relating to chapter 482 the following:

``483. Aviation Security Funding..............................
                                                                48301''.
    SEC. 119. INCREASED FUNDING FLEXIBILITY FOR AVIATION SECURITY.
    (a) Limited Use of Airport Improvement Program Funds.--
        (1) Airport development funds.--Section 47102(3) of title 49, 
    United States Code, is amended by adding at the end the following:
            ``(J) in fiscal year 2002, any additional security related 
        activity required by law or by the Secretary after September 
        11, 2001, and before October 1, 2002.
            ``(K) in fiscal year 2002 with respect to funds apportioned 
        under section 47114 in fiscal years 2001 and 2002, any 
        activity, including operational activities, of an airport that 
        is not a primary airport if that airport is located within the 
        confines of enhanced class B airspace, as defined by Notice to 
        Airmen FDC 1/0618 issued by the Federal Aviation Administration 
        and the activity was carried out when any restriction in the 
        Notice is in effect.
            ``(L) in fiscal year 2002, payments for debt service on 
        indebtedness incurred to carry out a project at an airport 
        owned or controlled by the sponsor or at a privately owned or 
        operated airport passenger terminal financed by indebtedness 
        incurred by the sponsor if the Secretary determines that such 
        payments are necessary to prevent a default on the 
        indebtedness.''.
        (2) Allowable costs.--Section 47110(b)(2) of title 49, United 
    States Code, is amended--
            (A) by striking ``or'' in subparagraph (B);
            (B) by inserting ``or'' after ``executed;'' in subparagraph 
        (C); and
            (C) by adding at the end the following:
            ``(D) if the cost is incurred after September 11, 2001, for 
        a project described in section 47102(3)(J), 47102(3)(K), or 
        47102(3)(L) and shall not depend upon the date of execution of 
        a grant agreement made under this subchapter;''.
        (3) Discretionary grants.--Section 47115 of title 49, United 
    States Code, is amended by adding at the end the following:
    ``(i) Considerations for Project Under Expanded Security 
Eligibility.--In order to assure that funding under this subchapter is 
provided to the greatest needs, the Secretary, in selecting a project 
described in section 47102(3)(J) for a grant, shall consider the non-
federal resources available to sponsor, the use of such non-federal 
resources, and the degree to which the sponsor is providing increased 
funding for the project.''.
        (4) Federal share.--Section 47109(a) of title 49, United States 
    Code, is amended--
            (A) by striking ``and'' in paragraph (3);
            (B) by striking ``47134.'' in paragraph (4) and inserting 
        ``47134; and''; and
            (C) by adding at the end the following:
        ``(5) for fiscal year 2002, 100 percent for a project described 
    in section 47102(3)(J), 47102(3)(K), or 47102(3)(L).''.
        (5) Airport development.--Section 47102(3)(B) of title 49, 
    United States Code, is amended--
            (A) by striking ``and'' at the end of clause (viii);
            (B) by striking the period at the end of clause (ix) and 
        inserting ``; and''; and
            (C) by inserting after clause (ix) the following new 
        clause:
                ``(x) replacement of baggage conveyor systems, and 
            reconfiguration of terminal baggage areas, that the 
            Secretary determines are necessary to install bulk 
            explosive detection devices.''.
    (b) Apportioned Funds.--For the purpose of carrying out section 
47114 of title 49, United States Code, for fiscal year 2003, the 
Secretary shall use, in lieu of passenger boardings at an airport 
during the prior calendar year, the greater of--
        (1) the number of passenger boardings at that airport during 
    2000; or
        (2) the number of passenger boardings at that airport during 
    2001.
    (c) Expedited Processing of Security-Related PFC Requests.--The 
Administrator of the Federal Aviation Administration shall, to the 
extent feasible, expedite the processing and approval of passenger 
facility fee requests under subchapter I of chapter 471 of title 49, 
United States Code, for projects described in section 47192(3)(J) of 
title 49, United States Code.
    (d) Amendment of General Fee Schedule Provision.--Section 
45301(b)(1)(B) of title 49, United States Code, is amended--
        (1) by striking ``directly'' and inserting ``reasonably'';
        (2) by striking ``Administration's costs'' and inserting 
    ``Administration's costs, as determined by the Administrator,''; 
    and
        (3) by adding at the end ``The Determination of such costs by 
    the Administrator is not subject to judicial review.''.

SEC. 120. CHEMICAL AND BIOLOGICAL WEAPON DETECTION.

    Section 44903(c)(2)(C) of title 49, United States Code, is amended 
to read as follows:
            ``(C) Maximum use of chemical and biological weapon 
        detection equipment.--The Secretary of Transportation may 
        require airports to maximize the use of technology and 
        equipment that is designed to detect or neutralize potential 
        chemical or biological weapons.''.
    SEC. 121. AUTHORIZATION OF FUNDS FOR REIMBURSEMENT OF AIRPORTS FOR 
      SECURITY MANDATES.
    (a) Airport Security.--There is authorized to be appropriated to 
the Secretary of Transportation for fiscal years 2002 and 2003 a total 
of $1,500,000,000 to reimburse airport operators, on-airport parking 
lots, and vendors of on-airfield direct services to air carriers for 
direct costs incurred by such operators to comply with new, additional, 
or revised security requirements imposed on such operators by the 
Federal Aviation Administration or Transportation Security 
Administration on or after September 11, 2001. Such sums shall remain 
available until expended.
    (b) Documentation of Costs; Audit.--The Secretary may not reimburse 
an airport operator, on-airport parking lot, or vendor of on-airfield 
direct services to air carriers under this section for any cost for 
which the airport operator, on-airport parking lot, or vendor of on-
airfield direct services does not demonstrate to the satisfaction of 
the Secretary, using sworn financial statements or other appropriate 
data, that--
        (1) the cost is eligible for reimbursement under subsection 
    (a); and
        (2) the cost was incurred by the airport operator, on-airport 
    parking lot, or vendor of on-airfield direct services to air 
    carriers.
The Inspector General of the Department of Transportation and the 
Comptroller General of the United States may audit such statements and 
may request any other information necessary to conduct such an audit.
    (c) Claim Procedure.--Within 30 days after the date of enactment of 
this Act, the Secretary, after consultation with airport operators, on-
airport parking lots, and vendors of on-airfield direct services to air 
carriers, shall publish in the Federal Register the procedures for 
filing claims for reimbursement under this section of eligible costs 
incurred by airport operators.

SEC. 122. SENSE OF THE CONGRESS.

    It is the sense of the Congress that--
        (1) an airport receiving Federal financial assistance should 
    meet with the tenants of the airport (other than air carriers and 
    foreign air carriers) to discuss adjustments of the rent of the 
    tenants to account for losses in revenue incurred by the tenants on 
    and after September 11, 2001;
        (2) an air carrier that received financial assistance under the 
    Air Transportation Safety and System Stabilization Act or under 
    title 49, United States Code, since September 11, 2001, should meet 
    with airport operators to discuss payment of applicable rates, 
    charges, and fees; and
        (3) the Federal Aviation Administration should maintain its 
    current restriction on carry-on baggage of 1 bag and 1 personal 
    item.

SEC. 123. AIRPORT IMPROVEMENT PROGRAMS.

    (a) Competition Plan.--Section 47106(f) is amended--
        (1) by redesignating paragraph (3) as paragraph (4); and
        (2) by inserting after paragraph (2) the following:
        ``(3) Special rule for fiscal year 2002.--This subsection does 
    not apply to any passenger facility fee approved, or grant made, in 
    fiscal year 2002 if the fee or grant is to be used to improve 
    security at a covered airport.''.
    (b) Conforming Amendment to Airport and Airway Trust Fund.--Section 
9502(d)(1)(A) of the Internal Revenue Code of 1986 (relating to airport 
and airway program) is amended by inserting ``or the Aviation and 
Transportation Security Act'' after ``21st Century''.

SEC. 124. TECHNICAL CORRECTIONS.

    (a) Report Deadline.--Section 106(a) of the Air Transportation 
Safety and System Stabilization Act (Public Law 107-42) is amended by 
striking ``February 1, 2001'' and inserting ``February 1, 2002''.
    (b) Insurance and Reinsurance of Aircraft.--Section 44306(c) (as 
redesignated by section 201(d) of such Act) is amended by inserting 
``in the interest of air commerce or national security or'' before ``to 
carry out foreign policy''.
    (c) Federal Credit Instruments.--Section 102(c)(2)(A) of such Act 
is amended by striking ``representatives'' and inserting 
``representations''.
    (d) Maximum Amount of Compensation Payable Per Air Carrier.--
Section 103 of such Act is amended by adding at the end the following:
    ``(d) Compensation for Certain Air Carriers.--
        ``(1) Set-aside.--The President may set aside a portion of the 
    amount of compensation payable to air carriers under section 
    101(a)(2) to provide compensation to classes of air carriers, such 
    as air tour operators and air ambulances (including hospitals 
    operating air ambulances) for whom the application of a 
    distribution formula containing available seat miles as a factor 
    would inadequately reflect their share of direct and incremental 
    losses. The President shall reduce the $4,500,000,000 specified in 
    subsection (b)(2)(A)(i) by the amount set aside under this 
    subsection.
        ``(2) Distribution of amounts.--The President shall distribute 
    the amount set aside under this subsection proportionally among 
    such air carriers based on an appropriate auditable measure, as 
    determined by the President.''.
    SEC. 125. ENCOURAGING AIRLINE EMPLOYEES TO REPORT SUSPICIOUS 
      ACTIVITIES.
    (a) In General.--Subchapter II of chapter 449 of title 49, United 
States Code, is amended by inserting at the end the following:

``Sec. 44941. Immunity for reporting suspicious activities

    ``(a) In General.--Any air carrier or foreign air carrier or any 
employee of an air carrier or foreign air carrier who makes a voluntary 
disclosure of any suspicious transaction relevant to a possible 
violation of law or regulation, relating to air piracy, a threat to 
aircraft or passenger safety, or terrorism, as defined by section 3077 
of title 18, United States Code, to any employee or agent of the 
Department of Transportation, the Department of Justice, any Federal, 
State, or local law enforcement officer, or any airport or airline 
security officer shall not be civilly liable to any person under any 
law or regulation of the United States, any constitution, law, or 
regulation of any State or political subdivision of any State, for such 
disclosure.
    ``(b) Application.--Subsection (a) shall not apply to--
        ``(1) any disclosure made with actual knowledge that the 
    disclosure was false, inaccurate, or misleading; or
        ``(2) any disclosure made with reckless disregard as to the 
    truth or falsity of that disclosure.''.
    (b) Conforming Amendment.--The chapter analysis for such chapter is 
amended by adding at the end the following:
``44941. Immunity for reporting suspicious activities.''.

SEC. 126. LESS-THAN-LETHAL WEAPONRY FOR FLIGHT DECK CREWS.

    (a) National Institute of Justice Study.--The National Institute of 
Justice shall assess the range of less-than-lethal weaponry available 
for use by a flight deck crewmember temporarily to incapacitate an 
individual who presents a clear and present danger to the safety of the 
aircraft, its passengers, or individuals on the ground and report its 
findings and recommendations to the Secretary of Transportation within 
90 days after the date of enactment of this Act.
    (b) Arming Flight Deck Crew.--Section 44903 of title 49, United 
States Code, is amended by adding at the end the following:
    ``(h) Authority to Arm Flight Deck Crew With Less-Than-Lethal 
Weapons.--
        ``(1) In general.--If the Secretary, after receiving the 
    recommendations of the National Institute of Justice, determines, 
    with the approval of the Attorney General and the Secretary of 
    State, that it is appropriate and necessary and would effectively 
    serve the public interest in avoiding air piracy, the Secretary may 
    authorize members of the flight deck crew on any aircraft providing 
    air transportation or intrastate air transportation to carry a 
    less-than-lethal weapon while the aircraft is engaged in providing 
    such transportation.
        ``(2) Usage.--If the Secretary grants authority under paragraph 
    (1) for flight deck crew members to carry a less-than-lethal weapon 
    while engaged in providing air transportation or intrastate air 
    transportation, the Secretary shall--
            ``(A) prescribe rules requiring that any such crew member 
        be trained in the proper use of the weapon; and
            ``(B) prescribe guidelines setting forth the circumstances 
        under which such weapons may be used.''.

SEC. 127. MAIL AND FREIGHT WAIVERS.

        (a) In General.--During a national emergency affecting air 
    transportation or intrastate air transportation, the Secretary of 
    Transportation, after consultation with the Transportation Security 
    Oversight Board, may grant a complete or
    partial waiver of any restrictions on the carriage by aircraft of 
    freight, mail, emergency medical supplies, personnel, or patients 
    on aircraft, imposed by the Department of Transportation (or other 
    Federal agency or department) that would permit such carriage of 
    freight, mail, emergency medical supplies, personnel, or patients 
    on flights, to, from, or within a State if the Secretary determines 
    that--
        (1) extraordinary air transportation needs or concerns exist; 
    and
        (2) the waiver is in the public interest, taking into 
    consideration the isolation of and dependence on air transportation 
    of the State.
    (b) Limitations.--The Secretary may impose reasonable limitations 
on any such waiver.

SEC. 128. FLIGHT DECK SECURITY.

    The pilot of a passenger aircraft operated by an air carrier in air 
transportation or intrastate air transportation is authorized to carry 
a firearm into the cockpit if--
        (1) the Under Secretary of Transportation for Security 
    approves;
        (2) the air carrier approves;
        (3) the firearm is approved by the Under Secretary; and
        (4) the pilot has received proper training for the use of the 
    firearm, as determined by the Under Secretary.

SEC. 129. AMENDMENTS TO AIRMEN REGISTRY AUTHORITY.

    Section 44703(g) of title 49, United States Code, is amended--
        (1) in the first sentence of paragraph (1)--
            (A) by striking ``pilots'' and inserting ``airmen''; and
            (B) by striking the period and inserting ``and related to 
        combating acts of terrorism.''; and
        (2) by adding at the end, the following new paragraphs:
    ``(3) For purposes of this section, the term `acts of terrorism' 
means an activity that involves a violent act or an act dangerous to 
human life that is a violation of the criminal laws of the United 
States or of any State, or that would be a criminal violation if 
committed within the jurisdiction of the United States or of any State, 
and appears to be intended to intimidate or coerce a civilian 
population to influence the policy of a government by intimidation or 
coercion or to affect the conduct of a government by assassination or 
kidnaping.
    ``(4) The Administrator is authorized and directed to work with 
State and local authorities, and other Federal agencies, to assist in 
the identification of individuals applying for or holding airmen 
certificates.''.

SEC. 130. RESULTS-BASED MANAGEMENT.

    Subchapter II of chapter 449 of title 49, United States Code, is 
amended by adding at the end the following:

``Sec. 44942. Performance goals and objectives

    ``(a) Short Term Transition.--
        ``(1) In general.--Within 180 days after the date of enactment 
    of the Aviation and Transportation Security Act, the Under 
    Secretary for Transportation Security may, in consultation with 
    Congress--
            ``(A) establish acceptable levels of performance for 
        aviation security, including screening operations and access 
        control, and
            ``(B) provide Congress with an action plan, containing 
        measurable goals and milestones, that outlines how those levels 
        of performance will be achieved.
        ``(2) Basics of action plan.--The action plan shall clarify the 
    responsibilities of the Transportation Security Administration, the 
    Federal Aviation Administration and any other agency or 
    organization that may have a role in ensuring the safety and 
    security of the civil air transportation system.
    ``(b) Long-Term Results-Based Management.--
        ``(1) Performance plan and report.--
            ``(A) Performance plan.--
                ``(i) Each year, consistent with the requirements of 
            the Government Performance and Results Act of 1993 (GPRA), 
            the Secretary and the Under Secretary for Transportation 
            Security shall agree on a performance plan for the 
            succeeding 5 years that establishes measurable goals and 
            objectives for aviation security. The plan shall identify 
            action steps necessary to achieve such goals.
                ``(ii) In addition to meeting the requirements of GPRA, 
            the performance plan should clarify the responsibilities of 
            the Secretary, the Under Secretary for Transportation 
            Security and any other agency or organization that may have 
            a role in ensuring the safety and security of the civil air 
            transportation system.
            ``(B) Performance report.--Each year, consistent with the 
        requirements of GPRA, the Under Secretary for Transportation 
        Security shall prepare and submit to Congress an annual report 
        including an evaluation of the extent goals and objectives were 
        met. The report shall include the results achieved during the 
        year relative to the goals established in the performance plan.

``Sec. 44943. Performance management system

    ``(a) Establishing a Fair and Equitable System for Measuring Staff 
Performance.--The Under Secretary for Transportation Security shall 
establish a performance management system which strengthens the 
organization's effectiveness by providing for the establishment of 
goals and objectives for managers, employees, and organizational 
performance consistent with the performance plan.
    ``(b) Establishing Management Accountability for Meeting 
Performance Goals.--
        ``(1) In general.--Each year, the Secretary and Under Secretary 
    of Transportation for Security shall enter into an annual 
    performance agreement that shall set forth organizational and 
    individual performance goals for the Under Secretary.
        ``(2) Goals.--Each year, the Under Secretary and each senior 
    manager who reports to the Under Secretary shall enter into an 
    annual performance agreement that sets forth organization and 
    individual goals for those managers. All other employees hired 
    under the authority of the Under Secretary shall enter into an 
    annual performance agreement that sets forth organization and 
    individual goals for those employees.
    ``(c) Performance-Based Service Contracting.--To the extent 
contracts, if any, are used to implement the Aviation Security Act, the 
Under Secretary for Transportation Security shall, to the extent 
practical, maximize the use of performance-based service contracts. 
These contracts should be consistent with guidelines published by the 
Office of Federal Procurement Policy.''.
    SEC. 131. VOLUNTARY PROVISION OF EMERGENCY SERVICES DURING 
      COMMERCIAL FLIGHTS.
    (a) In General.--Subchapter II of chapter 449 of title 49, United 
States Code, is amended by adding at the end the following new section:

``Sec. 44944. Voluntary provision of emergency services

    ``(a) Program for Provision of Voluntary Services.--
        ``(1) Program.--The Under Secretary of Transportation for 
    Transportation Security shall carry out a program to permit 
    qualified law enforcement officers, firefighters, and emergency 
    medical technicians to provide emergency services on commercial air 
    flights during emergencies.
        ``(2) Requirements.--The Under Secretary shall establish such 
    requirements for qualifications of providers of voluntary services 
    under the program under paragraph (1), including training 
    requirements, as the Under Secretary considers appropriate.
        ``(3) Confidentiality of registry.--If as part of the program 
    under paragraph (1) the Under Secretary requires or permits 
    registration of law enforcement officers, firefighters, or 
    emergency medical technicians who are willing to provide emergency 
    services on commercial flights during emergencies, the Under 
    Secretary shall take appropriate actions to ensure that the 
    registry is available only to appropriate airline personnel and 
    otherwise remains confidential.
        ``(4) Consultation.--The Under Secretary shall consult with 
    appropriate representatives of the commercial airline industry, and 
    organizations representing community-based law enforcement, 
    firefighters, and emergency medical technicians, in carrying out 
    the program under paragraph (1), including the actions taken under 
    paragraph (3).
    ``(b) Exemption From Liability.--An individual shall not be liable 
for damages in any action brought in a Federal or State court that 
arises from an act or omission of the individual in providing or 
attempting to provide assistance in the case of an in-flight emergency 
in an aircraft of an air carrier if the individual meets such 
qualifications as the Under Secretary shall prescribe for purposes of 
this section.
    ``(c) Exception.--The exemption under subsection (b) shall not 
apply in any case in which an individual provides, or attempts to 
provide, assistance described in that paragraph in a manner that 
constitutes gross negligence or willful misconduct.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``44944. Voluntary provision of emergency services.''.

    (c) Construction Regarding Possession of Firearms.--Nothing in this 
section may be construed to require any modification of regulations of 
the Department of Transportation governing the possession of firearms 
while in aircraft or air transportation facilities or to authorize the 
possession of a firearm in an aircraft or any such facility not 
authorized under those regulations.

SEC. 132. GENERAL AVIATION AND AIR CHARTERS.

    (a) Air Charter Program.--Within 90 days after the date of 
enactment of this Act, the Under Secretary of Transportation for 
Transportation Security shall implement an aviation security program 
for charter air carriers (as defined in section 40102(a)(13) of title 
49, United States Code) with a maximum certificated takeoff weight of 
12,500 pounds or more.
    (b) General Aviation Program.--Within 30 days after the date of 
enactment of this Act, the Under Secretary of Transportation for 
Transportation Security shall transmit a report on airspace and other 
security measures that can be deployed, as necessary, to improve 
general aviation security to the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Committee on 
Transportation and Infrastructure. The Under Secretary may submit the 
report in both classified and redacted forms.

SEC. 133. DEFINITIONS.

    Except as otherwise explicitly provided, any term used in this 
title that is defined in section 40102 of title 49, United States Code, 
has the meaning given that term in that section.

SEC. 134. SENSE OF CONGRESS ON CERTAIN AVIATION MATTERS.

    (a) Flight Service Station Employees.--It is the sense of Congress 
that the Administrator of the Federal Aviation Administration should 
continue negotiating in good faith with flight service station 
employees of the Administration with a goal of reaching agreement on a 
contract as soon as possible.
    (b) War Risk Insurance.--It is the sense of Congress that the 
Secretary of Transportation should implement section 202 of the Air 
Transportation Safety and System Stabilization Act (Public Law 107-42) 
so as to make war risk insurance directly available to vendors, agents, 
and subcontractors of air carriers for all of their domestic 
operations.

SEC. 135. SENSE OF THE HOUSE OF REPRESENTATIVES.

    It is the sense of the House of Representatives that--
        (1) the Under Secretary of Transportation for Security should 
    develop security procedures to allow passengers transporting a 
    musical instrument on a flight of an air carrier to transport the 
    instrument in the passenger cabin of the aircraft, notwithstanding 
    any size or other restriction on carry-on baggage but subject to 
    such other reasonable security procedures, terms, and conditions as 
    may be established by the Under Secretary or the air carrier, 
    including imposing additional charges by the air carrier; and
        (2) an air carrier that transports mail under a contract with 
    the United States Postal Service should transport any animal that 
    the Postal Service allows to be shipped through the mail.
    SEC. 136. SHORT-TERM ASSESSMENT AND DEPLOYMENT OF EMERGING SECURITY 
      TECHNOLOGIES AND PROCEDURES.
    Section 44903 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(i) Short-Term Assessment and Deployment of Emerging Security 
Technologies and Procedures.--
        ``(1) In general.--The Under Secretary of Transportation for 
    Security shall recommend to airport operators, within 6 months 
    after the date of enactment of the Aviation and Transportation 
    Security Act, commercially available measures or procedures to 
    prevent access to secure airport areas by unauthorized persons. As 
    part of the 6-month assessment, the Under Secretary for 
    Transportation Security shall--
            ``(A) review the effectiveness of biometrics systems 
        currently in use at several United States airports, including 
        San Francisco International;
            ``(B) review the effectiveness of increased surveillance at 
        access points;
            ``(C) review the effectiveness of card- or keypad-based 
        access systems;
            ``(D) review the effectiveness of airport emergency exit 
        systems and determine whether those that lead to secure areas 
        of the airport should be monitored or how breaches can be 
        swiftly responded to; and
            ``(E) specifically target the elimination of the ``piggy-
        backing'' phenomenon, where another person follows an 
        authorized person through the access point.
    The 6-month assessment shall include a 12-month deployment strategy 
    for currently available technology at all category X airports, as 
    defined in the Federal Aviation Administration approved air carrier 
    security programs required under part 108 of title 14, Code of 
    Federal Regulations. Not later than 18 months after the date of 
    enactment of this Act, the Secretary of Transportation shall 
    conduct a review of reductions in unauthorized access at these 
    airports.
        ``(2) Computer-assisted passenger prescreening system.--
            ``(A) In general.--The Secretary of Transportation shall 
        ensure that the Computer-Assisted Passenger Prescreening 
        System, or any successor system--
                ``(i) is used to evaluate all passengers before they 
            board an aircraft; and
                ``(ii) includes procedures to ensure that individuals 
            selected by the system and their carry-on and checked 
            baggage are adequately screened.
            ``(B) Modifications.--The Secretary of Transportation may 
        modify any requirement under the Computer-Assisted Passenger 
        Prescreening System for flights that originate and terminate 
        within the same State, if the Secretary determines that--
                ``(i) the State has extraordinary air transportation 
            needs or concerns due to its isolation and dependence on 
            air transportation; and
                ``(ii) the routine characteristics of passengers, given 
            the nature of the market, regularly triggers primary 
            selectee status.''.
    SEC. 137. RESEARCH AND DEVELOPMENT OF AVIATION SECURITY TECHNOLOGY.
    (a) Funding.--To augment the programs authorized in section 
44912(a)(1) of title 49, United States Code, there is authorized to be 
appropriated an additional $50,000,000 for each of fiscal years 2002 
through 2006 and such sums as are necessary for each fiscal year 
thereafter to the Transportation Security Administration, for research, 
development, testing, and evaluation of the following technologies 
which may enhance aviation security in the future. Grants to industry, 
academia, and Government entities to carry out the provisions of this 
section shall be available for fiscal years 2002 and 2003 for--
        (1) the acceleration of research, development, testing, and 
    evaluation of explosives detection technology for checked baggage, 
    specifically, technology that is--
            (A) more cost-effective for deployment for explosives 
        detection in checked baggage at small- to medium-sized 
        airports, and is currently under development as part of the 
        Argus research program at the Transportation Security 
        Administration;
            (B) faster, to facilitate screening of all checked baggage 
        at larger airports; or
            (C) more accurate, to reduce the number of false positives 
        requiring additional security measures;
        (2) acceleration of research, development, testing, and 
    evaluation of new screening technology for carry-on items to 
    provide more effective means of detecting and identifying weapons, 
    explosives, and components of weapons of mass destruction, 
    including advanced x-ray technology;
        (3) acceleration of research, development, testing, and 
    evaluation of threat screening technology for other categories of 
    items being loaded onto aircraft, including cargo, catering, and 
    duty-free items;
        (4) acceleration of research, development, testing, and 
    evaluation of threats carried on persons boarding aircraft or 
    entering secure areas, including detection of weapons, explosives, 
    and components of weapons of mass destruction;
        (5) acceleration of research, development, testing and 
    evaluation of integrated systems of airport security enhancement, 
    including quantitative methods of assessing security factors at 
    airports selected for testing such systems;
        (6) expansion of the existing program of research, development, 
    testing, and evaluation of improved methods of education, training, 
    and testing of key airport security personnel; and
        (7) acceleration of research, development, testing, and 
    evaluation of aircraft hardening materials, and techniques to 
    reduce the vulnerability of aircraft to terrorist attack.
    (b) Grants.--Grants awarded under this subtitle shall identify 
potential outcomes of the research, and propose a method for 
quantitatively assessing effective increases in security upon 
completion of the research program. At the conclusion of each grant, 
the grant recipient shall submit a final report to the Transportation 
Security Administration that shall include sufficient information to 
permit the Under Secretary of Transportation for Security to prepare a 
cost-benefit analysis of potential improvements to airport security 
based upon deployment of the proposed technology. The Under Secretary 
shall begin awarding grants under this subtitle within 90 days of the 
date of enactment of this Act.
    (c) Budget Submission.--A budget submission and detailed strategy 
for deploying the identified security upgrades recommended upon 
completion of the grants awarded under subsection (b), shall be 
submitted to Congress as part of the Department of Transportation's 
annual budget submission.
    (d) Defense Research.--There is authorized to be appropriated 
$20,000,000 to the Transportation Security Administration to issue 
research grants in conjunction with the Defense Advanced Research 
Projects Agency. Grants may be awarded under this section for--
        (1) research and development of longer-term improvements to 
    airport security, including advanced weapons detection;
        (2) secure networking and sharing of threat information between 
    Federal agencies, law enforcement entities, and other appropriate 
    parties;
        (3) advances in biometrics for identification and threat 
    assessment; or
        (4) other technologies for preventing acts of terrorism in 
    aviation.

SEC. 138. EMPLOYMENT INVESTIGATIONS AND RESTRICTIONS.

    (a) In General.--Section 44936 of title 49, United States Code, is 
amended--
        (1) by inserting ``and a review of available law enforcement 
    data bases and records of other governmental and international 
    agencies to the extent determined practicable by the Under 
    Secretary of Transportation for Transportation Security,'' after 
    ``check'' in subsection (a)(1)(A);
        (2) by striking ``in any case described in subparagraph (C)'' 
    in subsection (a)(1)(B) and inserting ``and a review of available 
    law enforcement data bases and records of other governmental and 
    international agencies to the extent determined practicable by the 
    Under Secretary of Transportation for Transportation Security'';
        (3) by striking ``will be'' in subsection (a)(1)(B)(i) and 
    inserting ``are'';
        (4) by striking ``and'' after the semicolon in clause (ii) of 
    subsection (a)(1)(B);
        (5) by redesignating clause (iii) of subsection (a)(1)(B) as 
    clause (iv);
        (6) by inserting after clause (ii) of subsection (a)(1)(B) the 
    following:
                ``(iii) individuals who regularly have escorted access 
            to aircraft of an air carrier or foreign air carrier or a 
            secured area of an airport in the United States the 
            Administrator designates that serves an air carrier or 
            foreign air carrier; and'';
        (7) by striking subparagraphs (C), (D), and (E) of subsection 
    (a)(1) and redesignating subparagraph (F) as subparagraph (D);
        (8) by inserting after subparagraph (B) of subsection (a)(1) 
    the following:
            ``(C) Background checks of current employees.--
                ``(i) A new background check (including a criminal 
            history record check and a review of available law 
            enforcement data bases and records of other governmental 
            and international agencies to the extent determined 
            practicable by the Under Secretary of Transportation for 
            Transportation Security shall be required for any 
            individual who is employed in a position described in 
            subparagraphs (A) and (B) on the date of enactment of the 
            Aviation and Transportation Security Act.
                ``(ii) The Under Secretary may provide by order 
            (without regard to the provisions of chapter 5 of title 5, 
            United States Code) for a phased-in implementation of the 
            requirements of this subparagraph.'';
        (9) by striking ``107.31(m)'' in subparagraph (D), as 
    redesignated, and inserting ``107.31(m)(1) or (2)'';
        (10) by striking ``the date of enactment of this 
    subparagraph.'' in subparagraph (D), as redesignated, and inserting 
    ``November 22, 2000. The Under Secretary shall work with the 
    International Civil Aviation Organization and with appropriate 
    authorities of foreign countries to ensure that individuals 
    exempted under this subparagraph do not pose a threat to aviation 
    or national security.'';
        (11) by striking ``carrier, or airport operator'' in subsection 
    (a)(2) and inserting ``carrier, airport operator, or government'';
        (12) by striking ``carrier, or airport operator'' in subsection 
    (b)(1) and inserting ``carrier, airport operator, or government'';
        (13) by striking ``carrier, or airport operator'' in subsection 
    (b)(3) and inserting ``carrier, airport operator, or government''; 
    and
        (14) by adding at the end of subsection (c)(1) ``All Federal 
    agencies shall cooperate with the Under Secretary and the Under 
    Secretary's designee in the process of collecting and submitting 
    fingerprints.''.
    (b) Records of Employment of Pilot Applicants.--Part A of subtitle 
VII of title 49, United States Code, is amended--
        (1) by moving subsections (f), (g), and (h) of section 44936 
    from section 44936, inserting them at the end of section 44703, and 
    redesignating them as subsections (h), (i), and (j), respectively; 
    and
        (2) in subsections (i) and (j) of section 44703 (as moved to 
    the end of section 44703 by paragraph (1) of this subsection), by 
    striking ``subsection (f)'' each place it appears and inserting 
    ``subsection (h)''.

SEC. 139. ALCOHOL AND CONTROLLED SUBSTANCE TESTING.

    Chapter 451 of title 49, United States Code, is amended--
        (1) by striking ``contract personnel'' each place it appears 
    and inserting ``personnel'';
        (2) by striking ``contract employee'' each place it appears and 
    inserting ``employee'';
        (3) in section 45106(c) by striking ``contract employees'' and 
    inserting ``employees'';
        (4) by inserting after section 45106 the following:

``Sec. 45107. Transportation Security Administration

    ``(a) Transfer of Functions Relating to Testing Programs With 
Respect to Airport Security Screening Personnel.--The authority of the 
Administrator of the Federal Aviation Administration under this chapter 
with respect to programs relating to testing of airport security 
screening personnel are transferred to the Under Secretary of 
Transportation for Security. Notwithstanding section 45102(a), the 
regulations prescribed under section 45102(a) shall require testing of 
such personnel by their employers instead of by air carriers and 
foreign air carriers.
    ``(b) Applicability of Chapter With Respect to Employees of 
Administration.--The provisions of this chapter that apply with respect 
to employees of the Federal Aviation Administration whose duties 
include responsibility for safety-sensitive functions shall apply with 
respect to employees of the Transportation Security Administration 
whose duties include responsibility for security-sensitive functions. 
The Under Secretary of Transportation for Security, the Transportation 
Security Administration, and employees of the Transportation Security 
Administration whose duties include responsibility for security-
sensitive functions shall be subject to and comply with such provisions 
in the same manner and to the same extent as the Administrator of the 
Federal Aviation Administration, the Federal Aviation Administration, 
and employees of the Federal Aviation Administration whose duties 
include responsibility for safety-sensitive functions, respectively.''; 
and
        (5) in the analysis for such chapter by inserting after the 
    item relating to section 45106 the following:
``45107. Transportation Security Administration.''.

SEC. 140. CONFORMING AMENDMENTS TO SUBTITLE VII.

    (a) Records of Employment of Pilot Applicants.--Part A of subtitle 
VII of title 49, United States Code, is amended--
        (1) by moving subsections (f), (g), and (h) of section 44936 
    from section 44936, inserting them at the end of section 44703, and 
    redesignating them as subsections (h), (i), and (j), respectively; 
    and
        (2) in subsections (i) and (j) of section 44703 (as moved to 
    the end of section 44703 by paragraph (1) of this subsection), by 
    striking ``subsection (f)'' each place it appears and inserting 
    ``subsection (h)''.
    (b) Investigations and Procedures.--Chapter 461 of such title is 
amended--
        (1) in each of sections 46101(a)(1), 46102(a), 46103(a), 
    46104(a), 46105(a), 46106, 46107(b), and 46110(a) by inserting 
    after ``(or'' the following: ``the Under Secretary of 
    Transportation for Security with respect to security duties and 
    powers designated to be carried out by the Under Secretary or'';
        (2) by striking ``or Administrator'' each place it appears and 
    inserting ``, Under Secretary, or Administrator'';
        (3) in section 46101(a)(2) by striking ``of Transportation or 
    the'' and inserting ``, Under Secretary, or'';
        (4) in section 46102(b) by striking ``and the Administrator'' 
    and inserting ``, the Under Secretary, and the Administrator'';
        (5) in section 46102(c) by striking ``and Administrator'' each 
    place it appears and inserting ``, Under Secretary, and 
    Administrator'';
        (6) in each of sections 46102(d) and 46104(b) by inserting 
    ``the Under Secretary,'' after ``Secretary,'';
        (7) in the heading to section 46106 by striking ``Secretary of 
    Transportation and Administrator of the Federal Aviation 
    Administration'' and inserting ``Department of Transportation''; 
    and
        (8) in the item relating to section 46106 of the analysis for 
    such chapter by striking ``Secretary of Transportation and 
    Administrator of the Federal Aviation Administration'' and 
    inserting ``Department of Transportation''.
    (c) Administrative.--Section 40113 of such title is amended--
        (1) in subsection (a)--
            (A) by inserting after ``(or'' the following: ``the Under 
        Secretary of Transportation for Security with respect to 
        security duties and powers designated to be carried out by the 
        Under Secretary or''; and
            (B) by striking ``or Administrator'' and inserting ``, 
        Under Secretary, or Administrator''; and
        (2) in subsection (d)--
            (A) by inserting after ``The'' the following: ``Under 
        Secretary of Transportation for Security or the'';
            (B) by striking ``Administration'' the second place it 
        appears and inserting ``Transportation Security Administration 
        or Federal Aviation Administration, as the case may be,''; and
            (C) by striking ``the Administrator decides'' and inserting 
        ``the Under Secretary or Administrator, as the case may be, 
        decides''.
    (d) Penalties.--Chapter 463 of such title is amended--
        (1) in section 46301(d)(2)--
            (A) by striking ``, chapter 449 (except sections 44902, 
        44903(d), 44907(a)-(d)(1)(A) and (d)(1)(C)-(f), 44908, and 
        44909),'';
            (B) by inserting after the first sentence the following: 
        ``The Under Secretary of Transportation for Security may impose 
        a civil penalty for a violation of chapter 449 (except sections 
        44902, 44903(d), 44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, 
        and 44909) or a regulation prescribed or order issued under 
        such chapter 449.''; and
            (C) by inserting ``Under Secretary or'' before 
        ``Administrator shall'';
        (2) in each of paragraphs (3) and (4) of section 46301(d) by 
    striking ``Administrator'' each place it appears and inserting 
    ``Under Secretary or Administrator'';
        (3) in section 46301(d)(8) by striking ``Administrator'' and 
    inserting ``Under Secretary, Administrator,'';
        (4) in section 46301(h)(2) by inserting after ``(or'' the 
    following: ``the Under Secretary of Transportation for Security 
    with respect to security duties and powers designated to be carried 
    out by the Under Secretary or'';
        (5) in section 46303(c)(2) by inserting ``or the Under 
    Secretary of Transportation for Security'' after ``Federal Aviation 
    Administration'';
        (6) in section 46311--
            (A) by inserting after ``Transportation,'' the following: 
        ``the Under Secretary of Transportation for Security with 
        respect to security duties and powers designated to be carried 
        out by the Under Secretary,'';
            (B) by inserting after ``Secretary,'' each place it appears 
        the following: ``Under Secretary,''; and
            (C) by striking ``or Administrator'' each place it appears 
        and inserting ``, Under Secretary, or Administrator'';
        (7) in each of sections 46313 and 46316 by inserting after 
    ``(or'' the following: ``the Under Secretary of Transportation for 
    Security with respect to security duties and powers designated to 
    be carried out by the Under Secretary or''; and
        (8) in section 46505(d)(2) by inserting ``or the Under 
    Secretary of Transportation for Security'' after ``Federal Aviation 
    Administration''.

SEC. 141. SAVINGS PROVISION.

    (a) Transfer of Assets and Personnel.--Except as otherwise provided 
in this Act, those personnel, property, and records employed, used, 
held, available, or to be made available in connection with a function 
transferred to the Transportation Security Administration by this Act 
shall be transferred to the Transportation Security Administration for 
use in connection with the functions transferred. Unexpended balances 
of appropriations, allocations, and other funds made available to the 
Federal Aviation Administration to carry out such functions shall also 
be transferred to the Transportation Security Administration for use in 
connection with the functions transferred.
    (b) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, settlements, 
agreements, certificates, licenses, and privileges--
        (1) that have been issued, made, granted, or allowed to become 
    effective by the Federal Aviation Administration, any officer or 
    employee thereof, or any other Government official, or by a court 
    of competent jurisdiction, in the performance of any function that 
    is transferred by this Act; and
        (2) that are in effect on the effective date of such transfer 
    (or become effective after such date pursuant to their terms as in 
    effect on such effective date), shall continue in effect according 
    to their terms until modified, terminated, superseded, set aside, 
    or revoked in accordance with law by the Under Secretary of 
    Transportation for Security, any other authorized official, a court 
    of competent jurisdiction, or operation of law.
    (c) Proceedings.--
        (1) In general.--The provisions of this Act shall not affect 
    any proceedings or any application for any license pending before 
    the Federal Aviation Administration at the time this Act takes 
    effect, insofar as those functions are transferred by this Act; but 
    such proceedings and applications, to the extent that they relate 
    to functions so transferred, shall be continued. Orders shall be 
    issued in such proceedings, appeals shall be taken therefrom, and 
    payments shall be made pursuant to such orders, as if this Act had 
    not been enacted; and orders issued in any such proceedings shall 
    continue in effect until modified, terminated, superseded, or 
    revoked by a duly authorized official, by a court of competent 
    jurisdiction, or by operation of law.
        (2) Statutory construction.--Nothing in this subsection shall 
    be deemed to prohibit the discontinuance or modification of any 
    proceeding described in paragraph (1) under the same terms and 
    conditions and to the same extent that such proceeding could have 
    been discontinued or modified if this Act had not been enacted.
        (3) Orderly transfer.--The Secretary of Transportation is 
    authorized to provide for the orderly transfer of pending 
    proceedings from the Federal Aviation Administration.
    (d) Suits.--
        (1) In general.--This Act shall not affect suits commenced 
    before the date of the enactment of this Act, except as provided in 
    paragraphs (2) and (3). In all such suits, proceeding shall be had, 
    appeals taken, and judgments rendered in the same manner and with 
    the same effect as if this Act had not been enacted.
        (2) Suits by or against faa.--Any suit by or against the 
    Federal Aviation Administration begun before the date of the 
    enactment of this Act shall be continued, insofar as it involves a 
    function retained and transferred under this Act, with the 
    Transportation Security Administration (to the extent the suit 
    involves functions transferred to the Transportation Security 
    Administration under this Act) substituted for the Federal Aviation 
    Administration.
        (3) Remanded cases.--If the court in a suit described in 
    paragraph (1) remands a case to the Transportation Security 
    Administration, subsequent proceedings related to such case shall 
    proceed in accordance with applicable law and regulations as in 
    effect at the time of such subsequent proceedings.
    (e) Continuance of Actions Against Officers.--No suit, action, or 
other proceeding commenced by or against any officer in his official 
capacity as an officer of the Federal Aviation Administration shall 
abate by reason of the enactment of this Act. No cause of action by or 
against the Federal Aviation Administration, or by or against any 
officer thereof in his official capacity, shall abate by reason of the 
enactment of this Act.
    (f) Exercise of Authorities.--Except as otherwise provided by law, 
an officer or employee of the Transportation Security Administration 
may, for purposes of performing a function transferred by this Act or 
the amendments made by this Act, exercise all authorities under any 
other provision of law that were available with respect to the 
performance of that function to the official responsible for the 
performance of the function immediately before the effective date of 
the transfer of the function under this Act.
    (g) Act Defined.--In this section, the term ``Act'' includes the 
amendments made by this Act.

SEC. 142. BUDGET SUBMISSIONS.

    The President's budget submission for fiscal year 2003 and each 
fiscal year thereafter shall reflect the establishment of the 
Transportation Security Administration.

SEC. 143. LAND ACQUISITION COSTS.

    In the case of a grant for land acquisition issued to an airport 
under chapter 471 of title 49, United States Code, prior to January 1, 
1995, the Secretary of Transportation may waive the provisions of 
section 47108 of such title and provide an upward adjustment in the 
maximum obligation of the United States under that chapter to assist 
the airport in funding land acquisition costs (and associated eligible 
costs) that increased as a result of a judicial order.
    SEC. 144. LIMITATION ON LIABILITY FOR ACTS TO THWART CRIMINAL 
      VIOLENCE OR AIRCRAFT PIRACY.
    Section 44903 is amended by adding at the end the following:
    ``(h) Limitation on Liability for Acts To Thwart Criminal Violence 
or Aircraft Piracy.--An individual shall not be liable for damages in 
any action brought in a Federal or State court arising out of the acts 
of the individual in attempting to thwart an act of criminal violence 
or piracy on an aircraft if that individual reasonably believed that 
such an act of criminal violence or piracy was occurring or was about 
to occur.''.
    SEC. 145. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED 
      SERVICE.
    (a) In General.--Each air carrier that provides scheduled air 
transportation on a route shall provide, to the extent practicable, air 
transportation to passengers ticketed for air transportation on that 
route by any other air carrier that suspends, interrupts, or 
discontinues air passenger service on the route by reason of insolvency 
or bankruptcy of the other air carrier.
    (b) Passenger Obligation.--An air carrier is not required to 
provide air transportation under subsection (a) to a passenger unless 
that passenger makes alternative arrangements with the air carrier for 
such transportation within 60 days after the date on which that 
passenger's air transportation was suspended, interrupted, or 
discontinued (without regard to the originally scheduled travel date on 
the ticket).
    (c) Sunset.--This section does not apply to air transportation the 
suspension, interruption, or discontinuance of which occurs more than 
18 months after the date of enactment of this Act.

SEC. 146. AIRCRAFT OPERATIONS IN ENHANCED CLASS B AIRSPACE.

    Upon request of an operator of an aircraft affected by the 
restrictions imposed under Notice to Airmen FDC 1/0618 issued by the 
Federal Aviation Administration, or any other notice issued after 
September 11, 2001, and prior to the date of enactment of this Act that 
restricts the ability of United States registered aircraft to conduct 
operations under part 91 of title 14, Code of Federal Regulations, in 
enhanced class B airspace (as defined by such Notice), such 
restrictions shall cease to be in effect for the affected class of 
operator beginning on the 30th day following the request, unless the 
Secretary of Transportation publishes a notice in the Federal Register 
before such 30th day reimposing the restriction and explaining the 
reasons for the restriction.

SEC. 147. AVIATION WAR RISK INSURANCE.

    Section 44306(b) of title 49, United States Code, is amended by 
striking ``60 days'' each place it appears and inserting ``1 year''.

                     TITLE II--LIABILITY LIMITATION

    SEC. 201. AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT 
      AMENDMENTS.
    (a) Recovery of Collateral Source Obligations of Terrorists.--
Section 405(c)(3)(B)(i) of the Air Transportation Safety and System 
Stabilization Act (49 U.S.C. 40101 note) is amended by striking 
``obligations.'' and inserting ``obligations, or to a civil action 
against any person who is a knowing participant in any conspiracy to 
hijack any aircraft or commit any terrorist act.''.
    (b) Extension of Liability Relief to Aircraft Manufacturers and 
Others.--Section 408 of that Act is amended--
        (1) by striking ``air carrier'' in the section heading;
        (2) by striking subsection (a) and inserting the following:
    ``(a) In General.--
        ``(1) Liability limited to insurance coverage.--Notwithstanding 
    any other provision of law, liability for all claims, whether for 
    compensatory or punitive damages or for contribution or indemnity, 
    arising from the terrorist-related aircraft crashes of September 
    11, 2001, against an air carrier, aircraft manufacturer, airport 
    sponsor, or person with a property interest in the World Trade 
    Center, on September 11, 2001, whether fee simple, leasehold or 
    easement, direct or indirect, or their directors, officers, 
    employees, or agents, shall not be in an amount greater than the 
    limits of liability insurance coverage maintained by that air 
    carrier, aircraft manufacturer, airport sponsor, or person.
        ``(2) Willful defaults on rebuilding obligation.--Paragraph (1) 
    does not apply to any such person with a property interest in the 
    World Trade Center if the Attorney General determines, after notice 
    and an opportunity for a hearing on the record, that the person has 
    defaulted willfully on a contractual obligation to rebuild, or 
    assist in the rebuilding of, the World Trade Center.
        ``(3) Limitations on liability for new york city.--Liability 
    for all claims, whether for compensatory or punitive damages or for 
    contribution or indemnity arising from the terrorist-related 
    aircraft crashes of September 11, 2001, against the City of New 
    York shall not exceed the greater of the city's insurance coverage 
    or $350,000,000. If a claimant who is eligible to seek compensation 
    under section 405 of this Act, submits a claim under section 405, 
    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, including any such action against the City of 
    New York. The preceding sentence does not apply to a civil action 
    to recover collateral source obligations.''; and
        (3) by adding at the end of subsection (c) the following: 
    ``Subsections (a) and (b) do not apply to civil actions to recover 
    collateral source obligations. Nothing in this section shall in any 
    way limit any liability of any person who is engaged in the 
    business of providing air transportation security and who is not an 
    airline or airport sponsor or director, officer, or employee of an 
    airline or airport sponsor.''.
    (c) Limitation of United States Subrogation Right.--Section 409 of 
that Act is amended by striking ``title.'' and inserting ``title, 
subject to the limitations described in section 408.''.
    (d) Definitions.--Section 402 of that Act is amended--
        (1) by adding at the end of paragraph (1) the following: ``The 
    term `air carrier' does not include a person, other than an air 
    carrier, engaged in the business of providing air transportation 
    security.''.
        (2) by redesignating paragraphs (3) through (8) as paragraphs 
    (5) through (10), respectively; and
        (3) by inserting after paragraph (2) the following:
        ``(3) Aircraft manufacturer.--The term `aircraft manufacturer' 
    means any entity that manufactured the aircraft or any parts or 
    components of the aircraft involved in the terrorist related 
    aircraft crashes of September 11, 2001, including employees and 
    agents of that entity.
        ``(4) Airport sponsor.--The term `airport sponsor' means the 
    owner or operator of an airport (as defined in section 40102 of 
    title 49, United States Code).''.

                               Speaker of the House of Representatives.

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