[Congressional Record Volume 143, Number 156 (Saturday, November 8, 1997)]
[Senate]
[Page S12207]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


             AVIATION INSURANCE REAUTHORIZATION ACT OF 1997

  Mr. CRAIG. Mr. President, I ask unanimous consent that the Senate now 
proceed to the consideration of Calendar item No. 274, Senate 1193.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:.

       A bill (S. 1193) to amend chapter 443 of title 49, United 
     States Code, to extend the authorization of the aviation 
     insurance program, and for other purposes.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on Commerce, Science, and 
Transportation, with an amendment to strike all after the enacting 
clause and inserting in lieu thereof the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Aviation Insurance 
     Reauthorization Act of 1997''.

     SEC. 2. VALUATION OF AIRCRAFT.

       (a) General Authority for Insurance and Reinsurance.--
     Section 44302(a)(2) of title 49, United States Code, is 
     amended by striking ``as determined by the Secretary.'' and 
     inserting ``as determined by the Secretary in accordance with 
     reasonable business practices in the commercial aviation 
     insurance industry.''.
       (b) Limitation on Maximum Insured Amount.--Section 44306(c) 
     of title 49, United States Code, is amended by striking ``as 
     determined by the Secretary.'' and inserting ``as determined 
     by the Secretary in accordance with reasonable business 
     practices in the commercial aviation insurance industry.''.

     SEC. 3. EFFECT OF INDEMNITY AGREEMENTS.

       Section 44305(b) of title 49, United States Code, is 
     amended by adding at the end the following: ``If such an 
     agreement is countersigned by the President or the 
     President's designee, the agreement shall constitute, for 
     purposes of section 44302(b), a determination that 
     continuation of the aircraft operations to which the 
     agreement applies is necessary to carry out the foreign 
     policy of the United States.''.

     SEC. 4. ARBITRATION AUTHORITY.

       (a) Authorization of Binding Arbitration.--Section 
     44308(b)(1) of title 49, United States Code, is amended by 
     inserting after the second sentence the following: ``Any such 
     policy may authorize the binding arbitration of claims made 
     thereunder in such manner as may be agreed to by the 
     Secretary and any commercial insurer that may be responsible 
     for any part of a loss to which such policy relates.''.
       (b) Authority to Pay Arbitration Award.--Section 
     44308(b)(2) of such title is amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (3) by inserting after subparagraph (A) the following:
       ``(B) pay the amount of a binding arbitration award made 
     under paragraph (1); and''.

     SEC. 5. EXTENSION OF PROGRAM.

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

     SEC. 6. USE OF AIRCRAFT FOR DEMONSTRATION.

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

  Mr. CRAIG. Mr. President, I ask unanimous consent that the committee 
substitute be agreed to, the bill be considered and read a third time 
and passed, the motion to reconsider be laid upon the table, and that 
any statements relating to the bill appear at this point in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee substitute was agreed to.
  The bill (S. 1193), as amended, was passed.

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