[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4226 Referred in Senate (RFS)]

  2d Session
                                H. R. 4226


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 23 (legislative day, June 22), 2004

    Received; read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 AN ACT


 
   To amend title 49, United States Code, to make certain conforming 
 changes to provisions governing the registration of aircraft and the 
  recordation of instruments in order to implement the Convention on 
  International Interests in Mobile Equipment and the Protocol to the 
 Convention on International Interests in Mobile Equipment on Matters 
   Specific to Aircraft Equipment, known as the ``Cape Town Treaty''.

    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 ``Cape Town Treaty Implementation Act of 
2004''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The Cape Town Treaty (as defined in section 44113 of 
        title 49, United States Code) extends modern commercial laws 
        for the sale, finance, and lease of aircraft and aircraft 
        engines to the international arena in a manner consistent with 
        United States law and practice.
            (2) The Cape Town Treaty provides for internationally 
        established and recognized financing and leasing rights that 
        will provide greater security and commercial predictability in 
        connection with the financing and leasing of highly mobile 
        assets, such as aircraft and aircraft engines.
            (3) The legal and financing framework of the Cape Town 
        Treaty will provide substantial economic benefits to the 
        aviation and aerospace sectors, including the promotion of 
        exports, and will facilitate the acquisition of newer, safer 
        aircraft around the world.
            (4) Only technical changes to United States law and 
        regulations are required since the asset-based financing and 
        leasing concepts embodied in the Cape Town Treaty are already 
        reflected in the United States in the Uniform Commercial Code.
            (5) The new electronic registry system established under 
        the Cape Town Treaty will work in tandem with current aircraft 
        document recordation systems of the Federal Aviation 
        Administration, which have served United States industry well.
            (6) The United States Government was a leader in the 
        development of the Cape Town Treaty.
    (b) Purpose.--Accordingly, the purpose of this Act is to provide 
for the implementation of the Cape Town Treaty in the United States by 
making certain technical amendments to the provisions of chapter 441 of 
title 49, United States Code, directing the Federal Aviation 
Administration to complete the necessary rulemaking processes as 
expeditiously as possible, and clarifying the applicability of the 
Treaty during the rulemaking process.

SEC. 3. RECORDATION OF SECURITY INSTRUMENTS.

    (a) Establishment of System.--Section 44107(a) of title 49, United 
States Code, is amended--
            (1) in paragraph (2)(A) by striking ``750'' and inserting 
        ``550''; and
            (2) in paragraph (3) by striking ``clause (1) or (2) of 
        this subsection'' and inserting ``paragraph (1) or (2)''.
    (b) International Registry.--Section 44107 of such title is amended 
by adding at the end the following:
    ``(e) International Registry.--
            ``(1) Designation of united states entry point.--As 
        permitted under the Cape Town Treaty, the Federal Aviation 
        Administration Civil Aviation Registry is designated as the 
        United States Entry Point to the International Registry 
        relating to--
                    ``(A) civil aircraft of the United States;
                    ``(B) an aircraft for which a United States 
                identification number has been assigned but only with 
                regard to a notice filed under paragraph (2); and
                    ``(C) aircraft engines.
            ``(2) System for filing notice of prospective interests.--
                    ``(A) Establishment.--The Administrator shall 
                establish a system for filing notices of prospective 
                assignments and prospective international interests in, 
                and prospective sales of, aircraft or aircraft engines 
                described in paragraph (1) under the Cape Town Treaty.
                    ``(B) Maintenance of validity.--A filing of a 
                notice of prospective assignment, interest, or sale 
                under this paragraph and the registration with the 
                International Registry relating to such assignment, 
                interest, or sale shall not be valid after the 60th day 
                following the date of the filing unless documents 
                eligible for recording under subsection (a) relating to 
                such notice are filed for recordation on or before such 
                60th day.
            ``(3) Authorization for registration of aircraft.--A 
        registration with the International Registry relating to an 
        aircraft described in paragraph (1) (other than subparagraph 
        (C)) is valid only if (A) the person seeking the registration 
        first files documents eligible for recording under subsection 
        (a) and relating to the registration with the United States 
        Entry Point, and (B) the United States Entry Point authorizes 
        the registration.''.

SEC. 4. REGULATIONS.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall issue regulations necessary to carry out this Act, 
including any amendments made by this Act.
    (b) Contents of Regulations.--Regulations to be issued under this 
Act shall specify, at a minimum, the requirements for--
            (1) the registration of aircraft previously registered in a 
        country in which the Cape Town Treaty is in effect; and
            (2) the cancellation of registration of a civil aircraft of 
        the United States based on a request made in accordance with 
        the Cape Town Treaty.
    (c) Expedited Rulemaking Process.--
            (1) Final rule.--The Administrator shall issue regulations 
        under this section by publishing a final rule by December 31, 
        2004.
            (2) Effective date.--The final rule shall not be effective 
        before the date the Cape Town Treaty enters into force with 
        respect to the United States.
            (3) Economic analysis.--The Administrator shall not be 
        required to prepare an economic analysis of the cost and 
        benefits of the final rule.
    (d) Applicability of Treaty.--Notwithstanding parts 47.37(a)(3)(ii) 
and 47.47(a)(2) of title 14, of the Code of Federal Regulations, 
Articles IX(5) and XIII of the Cape Town Treaty shall apply to the 
matters described in subsection (b) until the earlier of the effective 
date of the final rule under this section or December 31, 2004.

SEC. 5. LIMITATION ON VALIDITY OF CONVEYANCES, LEASES, AND SECURITY 
              INSTRUMENTS.

    Section 44108(c)(2) of title 49, United States Code, is amended by 
striking the period at the end and inserting ``or the Cape Town Treaty, 
as applicable.''.

SEC. 6. DEFINITIONS.

    (a) In General.--Chapter 441 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 44113. Definitions
    ``In this chapter, the following definitions apply:
            ``(1) Cape town treaty.--The term `Cape Town Treaty' means 
        the Convention on International Interests in Mobile Equipment, 
        as modified by the Protocol to the Convention on International 
        Interests in Mobile Equipment on Matters Specific to Aircraft 
        Equipment, signed at Rome on May 9, 2003.
            ``(2) United states entry point.--The term `United States 
        Entry Point' means the Federal Aviation Administration Civil 
        Aviation Registry.
            ``(3) International registry.--The term `International 
        Registry' means the registry established under the Cape Town 
        Treaty.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by adding at the end the following:

``44113. Definitions.''.

SEC. 7. EFFECTIVE DATE AND PRESERVATION OF PRIOR RIGHTS.

    This Act, including any amendments made by this Act, shall take 
effect on the date the Cape Town Treaty (as defined in section 44113 of 
title 49, United States Code) enters into force with respect to the 
United States and shall not apply to any registration or recordation 
that was made before such effective date under chapter 441 of such 
title or any legal rights relating to such registration or recordation.

            Passed the House of Representatives June 22, 2004.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.