[Congressional Record Volume 147, Number 124 (Friday, September 21, 2001)]
[Senate]
[Pages S9627-S9630]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for himself and Mr. Lott):
  S. 1450. A bill to preserve the continued viability of the United 
States air transportation system; considered and passed.
  Mr. DASCHLE. Madam President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1450

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Air Transportation Safety 
     and System Stabilization Act''.

                     TITLE I--AIRLINE STABILIZATION

     SEC. 101. AVIATION DISASTER RELIEF.

       (a) In General.--Notwithstanding any other provision of 
     law, the President shall take the following actions to 
     compensate air carriers for losses incurred by the air 
     carriers as a result of the terrorist attacks on the United 
     States that occurred on September 11, 2001:
       (1) Subject to such terms and conditions as the President 
     deems necessary, issue Federal credit instruments to air 
     carriers that do not, in the aggregate, exceed 
     $10,000,000,000 and provide the subsidy amounts necessary for 
     such instruments in accordance with the provisions of the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
       (2) Compensate air carriers in an aggregate amount equal to 
     $5,000,000,000 for--
       (A) direct losses incurred beginning on September 11, 2001, 
     by air carriers as a result of any Federal ground stop order 
     issued by the Secretary of Transportation or any subsequent 
     order which continues or renews such a stoppage; and
       (B) the incremental losses incurred beginning September 11, 
     2001, and ending December 31, 2001, by air carriers as a 
     direct result of such attacks.
       (b) Emergency Designation.--Congress designates the amount 
     of new budget authority and outlays in all fiscal years 
     resulting from this title as an emergency requirement 
     pursuant to section 252(e) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 901(e)). Such 
     amount shall be available only to the extent that a request, 
     that includes designation of such amount as an emergency 
     requirement as defined in such Act, is transmitted by the 
     President to Congress.

     SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD.

       (a) Definitions.--In this section, the following 
     definitions apply:
       (1) Board.--The term ``Board'' means the Air Transportation 
     Stabilization Board established under subsection (b).
       (2) Financial obligation.--The term ``financial 
     obligation'' means any note, bond, debenture, or other debt 
     obligation issued by an obligor in connection with financing 
     under this section and section 101(a)(1).
       (3) Lender.--The term ``lender'' means any non-Federal 
     qualified institutional buyer (as defined by section 
     230.144A(a) of title 17, Code of Federal Regulations (or any 
     successor regulation) known as Rule 144A(a) of the Securities 
     and Exchange Commission and issued under the Security Act of 
     1933, including--
       (A) a qualified retirement plan (as defined in section 
     4974(c) of the Internal Revenue Code of 1986 (26 U.S.C. 
     4974(c)) that is a qualified institutional buyer; and
       (B) a governmental plan (as defined in section 414(d) of 
     the Internal Revenue Code of 1986 (26 U.S.C. 414(d)) that is 
     a qualified institutional buyer.
       (4) Obligor.--The term ``obligor'' means a party primarily 
     liable for payment of the principal of or interest on a 
     Federal credit instrument, which party may be a corporation, 
     partnership, joint venture, trust, or governmental entity, 
     agency, or instrumentality.
       (b) Air Transportation Stabilization Board.--
       (1) Establishment.--There is established a board (to be 
     known as the ``Air Transportation Stabilization Board'') to 
     review and decide on applications for Federal credit 
     instruments under section 101(a)(1).
       (2) Composition.--The Board shall consist of--
       (A) the Secretary of Transportation or the designee of the 
     Secretary;
       (B) the Chairman of the Board of Governors of the Federal 
     Reserve System, or the designee of the Chairman, who shall be 
     the Chair of the Board;
       (C) the Secretary of the Treasury or the designee of the 
     Secretary; and
       (D) the Comptroller General of the United States, or the 
     designee of the Comptroller General, as a nonvoting member of 
     the Board.
       (c) Federal Credit Instruments.--
       (1) In general.--The Board may enter into agreements with 1 
     or more obligors to issue Federal credit instruments under 
     section 101(a)(1) if the Board determines, in its discretion, 
     that--
       (A) the obligor is an air carrier for which credit is not 
     reasonably available at the time of the transaction;
       (B) the intended obligation by the obligor is prudently 
     incurred; and
       (C) such agreement is a necessary part of maintaining a 
     safe, efficient, and viable commercial aviation system in the 
     United States.
       (2) Terms and limitations.--
       (A) Forms; terms and conditions.--A Federal credit 
     instrument shall be issued under section 101(a)(1) in such 
     form and on such terms and conditions and contain such 
     covenants, representatives, warranties, and requirements 
     (including requirements for audits) as the Board determines 
     appropriate.
       (B) Procedures.--Not later than 14 days after the date of 
     enactment of this Act, the Director of the Office of 
     Management and Budget shall issue regulations setting forth 
     procedures for application and minimum requirements, which 
     may be supplemented by the Board in its discretion, for the 
     issuance of Federal credit instruments under section 
     101(a)(1).
       (d) Financial Protection of Government.--
       (1) In general.--To the extent feasible and practicable, 
     the Board shall ensure that the Government is compensated for 
     the risk assumed in making guarantees under this title.
       (2) Government participation in gains.--To the extent to 
     which any participating corporation accepts financial 
     assistance, in the form of accepting the proceeds of any 
     loans guaranteed by the Government under this title, the 
     Board is authorized to enter into contracts under which the 
     Government, contingent on the financial success of the 
     participating corporation, would participate in the gains of 
     the participating corporation or its security holders through 
     the use of such instruments as warrants, stock options, 
     common or preferred stock, or other appropriate equity 
     instruments.
       (3) Deposit in treasury.--All amounts collected by the 
     Secretary of the Treasury under this subsection shall be 
     deposited in the Treasury as miscellaneous receipts.

     SEC. 103. SPECIAL RULES FOR COMPENSATION.

       (a) Documentation.--Subject to subsection (b), the amount 
     of compensation payable to an air carrier under section 
     101(a)(2) may not exceed the amount of losses described in 
     section 101(a)(2) that the air carrier demonstrates to the 
     satisfaction of the President, using sworn financial 
     statements or other appropriate data, that the air carrier 
     incurred. The Secretary of Transportation and the Comptroller 
     General of the United States may audit such statements and 
     may request any information that the Secretary and the 
     Comptroller General deems necessary to conduct such audit.
       (b) Maximum Amount of Compensation Payable Per Air 
     Carrier.--The maximum total amount of compensation payable to 
     an air carrier under section 101(a)(2) may not exceed the 
     lesser of--
       (1) the amount of such air carrier's direct and incremental 
     losses described in section 101(a)(2); or
       (2) in the case of--
       (A) flights involving passenger-only or combined passenger 
     and cargo transportation, the product of--
       (i) $4,500,000,000; and
       (ii) the ratio of--

       (I) the available seat miles of the air carrier for the 
     month of August 2001 as reported to the Secretary; to
       (II) the total available seat miles of all such air 
     carriers for such month as reported to the Secretary; and

       (B) flights involving cargo-only transportation, the 
     product of--
       (i) $500,000,000; and
       (ii) the ratio of--

       (I) the revenue ton miles or other auditable measure of the 
     air carrier for cargo for the latest quarter for which data 
     is available as reported to the Secretary; to
       (II) the total revenue ton miles or other auditable measure 
     of all such air carriers for cargo for such quarter as 
     reported to the Secretary.

       (c) Payments.--The President may provide compensation to 
     air carriers under section 101(a)(2) in 1 or more payments up 
     to the amount authorized by this title.

[[Page S9628]]

     SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.

       (a) In General.--The President may only issue a Federal 
     credit instrument under section 101(a)(1) to an air carrier 
     after the air carrier enters into a legally binding agreement 
     with the President that, during the 2-year period beginning 
     September 11, 2001, and ending September 11, 2003, no officer 
     or employee of the air carrier whose total compensation 
     exceeded $300,000 in calendar year 2000 (other than an 
     employee whose compensation is determined through an existing 
     collective bargaining agreement entered into prior to 
     September 11, 2001)--
       (1) will receive from the air carrier total compensation 
     which exceeds, during any 12 consecutive months of such 2-
     year period, the total compensation received by the officer 
     or employee from the air carrier in calendar year 2000; and
       (2) will receive from the air carrier severance pay or 
     other benefits upon termination of employment with the air 
     carrier which exceeds twice the maximum total compensation 
     received by the officer or employee from the air carrier in 
     calendar year 2000.
       (b) Total Compensation Defined.--In this section, the term 
     ``total compensation'' includes salary, bonuses, awards of 
     stock, and other financial benefits provided by an air 
     carrier to an officer or employee of the air carrier.

     SEC. 105. CONTINUATION OF CERTAIN AIR SERVICE.

       (a) Action of Secretary.--The Secretary of Transportation 
     should take appropriate action to ensure that all communities 
     that had scheduled air service before September 11, 2001, 
     continue to receive adequate air transportation service and 
     that essential air service to small communities continues 
     without interruption.
       (b) Essential Air Service.--There is authorized to be 
     appropriated to the Secretary to carry out the essential air 
     service program under subchapter II of chapter 417 of title 
     49, United States Code, $120,000,000 for fiscal year 2002.
       (c) Secretarial Oversight.--
       (1) In general.--Notwithstanding any other provision of 
     law, the Secretary is authorized to require an air carrier 
     receiving direct financial assistance under this Act to 
     maintain scheduled air service to any point served by that 
     carrier before September 11, 2001.
       (2) Agreements.--In applying paragraph (1), the Secretary 
     may require air carriers receiving direct financial 
     assistance under this Act to enter into agreements which will 
     ensure, to the maximum extent practicable, that all 
     communities that had scheduled air service before September 
     11, 2001, continue to receive adequate air transportation 
     service.

     SEC. 106. REPORTS.

       (a) Report.--Not later than February 1, 2001, the President 
     shall transmit to the Committee on Transportation and 
     Infrastructure, the Committee on Appropriations, and the 
     Committee on the Budget of the House of Representatives and 
     the Committee on Commerce, Science, and Transportation, the 
     Committee on Appropriations, and the Committee on the Budget 
     of the Senate a report on the financial status of the air 
     carrier industry and the amounts of assistance provided under 
     this title to each air carrier.
       (b) Update.--Not later than the last day of the 7-month 
     period following the date of enactment of this Act, the 
     President shall update and transmit the report to the 
     Committees.

     SEC. 107. DEFINITIONS.

       In this title, the following definitions apply:
       (1) Air carrier.--The term ``air carrier'' has the meaning 
     such term has under section 40102 of title 49, United States 
     Code.
       (2) Federal credit instrument.--The term ``Federal credit 
     instrument'' means any guarantee or other pledge by the Board 
     issued under section 101(a)(1) to pledge the full faith and 
     credit of the United States to pay all or part of any of the 
     principal of and interest on a loan or other debt obligation 
     issued by an obligor and funded by a lender.
       (3) Incremental loss.--The term ``incremental loss'' does 
     not include any loss that the President determines would have 
     been incurred if the terrorist attacks on the United States 
     that occurred on September 11, 2001, had not occurred.

                      TITLE II--AVIATION INSURANCE

     SEC. 201. DOMESTIC INSURANCE AND REIMBURSEMENT OF INSURANCE 
                   COSTS.

       (a) In General.--Section 44302 of title 49, United States 
     Code, is amended--
       (1) in subsection (a)(1)--
       (A) by striking ``subsection (b)'' and inserting 
     ``subsection (c)''; and
       (B) by striking ``foreign-flag aircraft--'' and all that 
     follows through the period at the end of subparagraph (B) and 
     inserting ``foreign-flag aircraft.'';
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (c), (d), and (e), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Reimbursement of Insurance Cost Increases.--
       ``(1) In general.--The Secretary may reimburse an air 
     carrier for the increase in the cost of insurance, with 
     respect to a premium for coverage ending before October 1, 
     2002, against loss or damage arising out of any risk from the 
     operation of an American aircraft over the insurance premium 
     that was in effect for a comparable operation during the 
     period beginning September 4, 2001, and ending September 10, 
     2001, as the Secretary may determine. Such reimbursement is 
     subject to subsections (a)(2), (c), and (d) of this section 
     and to section 44303.
       ``(2) Payment from revolving fund.--A reimbursement under 
     this subsection shall be paid from the revolving fund 
     established by section 44307.
       ``(3) Further conditions.--The Secretary may impose such 
     further conditions on insurance for which the increase in 
     premium is subject to reimbursement under this subsection as 
     the Secretary may deem appropriate in the interest of air 
     commerce.
       ``(4) Termination of authority.--The authority to reimburse 
     air carriers under this subsection shall expire 180 days 
     after the date of enactment of this paragraph.'';
       (4) in subsection (c) (as so redesignated)--
       (A) in the first sentence by inserting ``, or reimburse an 
     air carrier under subsection (b) of this section,'' before 
     ``only with the approval''; and
       (B) in the second sentence--
       (i) by inserting ``or the reimbursement'' before ``only 
     after deciding''; and
       (ii) by inserting ``in the interest of air commerce or 
     national security or'' before ``to carry out the foreign 
     policy''; and
       (5) in subsection (d) (as so redesignated) by inserting 
     ``or reimbursing an air carrier'' before ``under this 
     chapter''.
       (b) Coverage.--
       (1) In general.--Section 44303 of such title is amended--
       (A) in the matter preceding paragraph (1) by inserting ``, 
     or reimburse insurance costs, as'' after ``insurance and 
     reinsurance''; and
       (B) in paragraph (1) by inserting ``in the interest of air 
     commerce or national security or'' before ``to carry out the 
     foreign policy''.
       (2) Discretion of the secretary.--For acts of terrorism 
     committed on or to an air carrier during the 180-day period 
     following the date of enactment of this Act, the Secretary of 
     Transportation may certify that the air carrier was a victim 
     of an act of terrorism and in the Secretary's judgment, based 
     on the Secretary's analysis and conclusions regarding the 
     facts and circumstances of each case, shall not be 
     responsible for losses suffered by third parties (as referred 
     to in section 205.5(b)(1) of title 14, Code of Federal 
     Regulations) that exceed $100,000,000, in the aggregate, for 
     all claims by such parties arising out of such act. If the 
     Secretary so certifies, the air carrier shall not be liable 
     for an amount that exceeds $100,000,000, in the aggregate, 
     for all claims by such parties arising out of such act, and 
     the Government shall be responsible for any liability above 
     such amount. No punitive damages may be awarded against an 
     air carrier (or the Government taking responsibility for an 
     air carrier under this paragraph) under a cause of action 
     arising out of such act.
       (c) Reinsurance.--Section 44304 of such title is amended--
       (1) by striking ``(a) General Authority.--''; and
       (2) by striking subsection (b).
       (d) Premiums.--Section 44306 of such title is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) Allowances in Setting Premium Rates for 
     Reinsurance.--In setting premium rates for reinsurance, the 
     Secretary may make allowances to the insurance carrier for 
     expenses incurred in providing services and facilities that 
     the Secretary considers good business practices, except for 
     payments by the air carrier for the stimulation or 
     solicitation of insurance business.''.
       (e) Conforming Amendment.--Section 44305(b) of such title 
     is amended by striking ``44302(b)'' and inserting 
     ``44302(c)''.

     SEC. 202. EXTENSION OF PROVISIONS TO VENDORS, AGENTS, AND 
                   SUBCONTRACTORS OF AIR CARRIERS.

       Notwithstanding any other provision of this title, the 
     Secretary may extend any provision of chapter 443 of title 
     49, United States Code, as amended by this title, and the 
     provisions of this title, to vendors, agents, and 
     subcontractors of air carriers. For the 180-day period 
     beginning on the date of enactment of this Act, the Secretary 
     may extend or amend any such provisions so as to ensure that 
     the entities referred to in the preceding sentence are not 
     responsible in cases of acts of terrorism for losses suffered 
     by third parties that exceed the amount of such entities' 
     liability coverage, as determined by the Secretary.

                       TITLE III--TAX PROVISIONS

     SEC. 301. EXTENSION OF DUE DATE FOR EXCISE TAX DEPOSITS; 
                   TREATMENT OF LOSS COMPENSATION.

       (a) Extension of Due Date for Excise Tax Deposits.--
       (1) In general.--In the case of an eligible air carrier, 
     any airline-related deposit required under section 6302 of 
     the Internal Revenue Code of 1986 to be made after September 
     10, 2001, and before November 15, 2001, shall be treated for 
     purposes of such Code as timely made if such deposit is made 
     on or before November 15, 2001. If the Secretary of the 
     Treasury so prescribes, the preceding sentence shall be 
     applied by substituting for ``November 15, 2001'' each place 
     it appears--
       (A) ``January 15, 2002'', or
       (B) such earlier date after November 15, 2001, as such 
     Secretary may prescribe.
       (2) Eligible air carrier.--For purposes of this subsection, 
     the term ``eligible air carrier'' means any domestic 
     corporation engaged in the trade or business of transporting 
     (for hire) persons by air if such

[[Page S9629]]

     transportation is available to the general public.
       (3) Airline-related deposit.--For purposes of this 
     subsection, the term ``airline-related deposit'' means any 
     deposit of--
       (A) taxes imposed by subchapter C of chapter 33 of such 
     Code (relating to transportation by air), and
       (B) taxes imposed by chapters 21, 22, and 24 with respect 
     to employees engaged in a trade or business referred to in 
     paragraph (2).
       (b) Treatment of Loss Compensation.--Nothing in any 
     provision of law shall be construed to exclude from gross 
     income under the Internal Revenue Code of 1986 any 
     compensation received under section 101(a)(2) of this Act.

                     TITLE IV--VICTIM COMPENSATION

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``September 11th Victim 
     Compensation Fund of 2001''.

     SEC. 402. DEFINITIONS.

       In this title, the following definitions apply:
       (1) Air carrier.--The term ``air carrier'' means a citizen 
     of the United States undertaking by any means, directly or 
     indirectly, to provide air transportation and includes 
     employees and agents of such citizen.
       (2) Air transportation.--The term ``air transportation'' 
     means foreign air transportation, interstate air 
     transportation, or the transportation of mail by aircraft.
       (3) Claimant.--The term ``claimant'' means an individual 
     filing a claim for compensation under section 405(a)(1).
       (4) Collateral source.--The term ``collateral source'' 
     means all collateral sources, including life insurance, 
     pension funds, death benefit programs, and payments by 
     Federal, State, or local governments related to the 
     terrorist-related aircraft crashes of September 11, 2001.
       (5) Economic loss.--The term ``economic loss'' means any 
     pecuniary loss resulting from harm (including the loss of 
     earnings or other benefits related to employment, medical 
     expense loss, replacement services loss, loss due to death, 
     burial costs, and loss of business or employment 
     opportunities) to the extent recovery for such loss is 
     allowed under applicable State law.
       (6) Eligible individual.--The term ``eligible individual'' 
     means an individual determined to be eligible for 
     compensation under section 405(c).
       (7) Noneconomic losses.--The term ``noneconomic losses'' 
     means losses for physical and emotional pain, suffering, 
     inconvenience, physical impairment, mental anguish, 
     disfigurement, loss of enjoyment of life, loss of society and 
     companionship, loss of consortium (other than loss of 
     domestic service), hedonic damages, injury to reputation, and 
     all other nonpecuniary losses of any kind or nature.
       (8) Special master.--The term ``Special Master'' means the 
     Special Master appointed under section 404(a).

     SEC. 403. PURPOSE.

       It is the purpose of this title to provide compensation to 
     any individual (or relatives of a deceased individual) who 
     was physically injured or killed as a result of the 
     terrorist-related aircraft crashes of September 11, 2001.

     SEC. 404. ADMINISTRATION.

       (a) In General.--The Attorney General, acting through a 
     Special Master appointed by the Attorney General, shall--
       (1) administer the compensation program established under 
     this title;
       (2) promulgate all procedural and substantive rules for the 
     administration of this title; and
       (3) employ and supervise hearing officers and other 
     administrative personnel to perform the duties of the Special 
     Master under this title.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to pay the 
     administrative and support costs for the Special Master in 
     carrying out this title.

     SEC. 405. DETERMINATION OF ELIGIBILITY FOR COMPENSATION.

       (a) Filing of Claim.--
       (1) In general.--A claimant may file a claim for 
     compensation under this title with the Special Master. The 
     claim shall be on the form developed under paragraph (2) and 
     shall state the factual basis for eligibility for 
     compensation and the amount of compensation sought.
       (2) Claim form.--
       (A) In general.--The Special Master shall develop a claim 
     form that claimants shall use when submitting claims under 
     paragraph (1). The Special Master shall ensure that such form 
     can be filed electronically, if determined to be practicable.
       (B) Contents.--The form developed under subparagraph (A) 
     shall request--
       (i) information from the claimant concerning the physical 
     harm that the claimant suffered, or in the case of a claim 
     filed on behalf of a decedent information confirming the 
     decedent's death, as a result of the terrorist-related 
     aircraft crashes of September 11, 2001;
       (ii) information from the claimant concerning any possible 
     economic and noneconomic losses that the claimant suffered as 
     a result of such crashes; and
       (iii) information regarding collateral sources of 
     compensation the claimant has received or is entitled to 
     receive as a result of such crashes.
       (3) Limitation.--No claim may be filed under paragraph (1) 
     after the date that is 2 years after the date on which 
     regulations are promulgated under section 407.
       (b) Review and Determination.--
       (1) Review.--The Special Master shall review a claim 
     submitted under subsection (a) and determine--
       (A) whether the claimant is an eligible individual under 
     subsection (c);
       (B) with respect to a claimant determined to be an eligible 
     individual--
       (i) the extent of the harm to the claimant, including any 
     economic and noneconomic losses; and
       (ii) the amount of compensation to which the claimant is 
     entitled based on the harm to the claimant, the facts of the 
     claim, and the individual circumstances of the claimant.
       (2) Negligence.--With respect to a claimant, the Special 
     Master shall not consider negligence or any other theory of 
     liability.
       (3) Determination.--Not later than 120 days after that date 
     on which a claim is filed under subsection (a), the Special 
     Master shall complete a review, make a determination, and 
     provide written notice to the claimant, with respect to the 
     matters that were the subject of the claim under review. Such 
     a determination shall be final and not subject to judicial 
     review.
       (4) Rights of claimant.--A claimant in a review under 
     paragraph (1) shall have--
       (A) the right to be represented by an attorney;
       (B) the right to present evidence, including the 
     presentation of witnesses and documents; and
       (C) any other due process rights determined appropriate by 
     the Special Master.
       (5) No punitive damages.--The Special Master may not 
     include amounts for punitive damages in any compensation paid 
     under a claim under this title.
       (6) Collateral compensation.--The Special Master shall 
     reduce the amount of compensation determined under paragraph 
     (1)(B)(ii) by the amount of the collateral source 
     compensation the claimant has received or is entitled to 
     receive as a result of the terrorist-related aircraft crashes 
     of September 11, 2001.
       (c) Eligibility.--
       (1) In general.--A claimant shall be determined to be an 
     eligible individual for purposes of this subsection if the 
     Special Master determines that such claimant--
       (A) is an individual described in paragraph (2); and
       (B) meets the requirements of paragraph (3).
       (2) Individuals.--A claimant is an individual described in 
     this paragraph if the claimant is--
       (A) an individual who--
       (i) was present at the World Trade Center, (New York, New 
     York), the Pentagon (Arlington, Virginia), or the site of the 
     aircraft crash at Shanksville, Pennsylvania at the time, or 
     in the immediate aftermath, of the terrorist-related aircraft 
     crashes of September 11, 2001; and
       (ii) suffered physical harm or death as a result of such an 
     air crash;
       (B) an individual who was a member of the flight crew or a 
     passenger on American Airlines flight 11 or 77 or United 
     Airlines flight 93 or 175, except that an individual 
     identified by the Attorney General to have been a participant 
     or conspirator in the terrorist-related aircraft crashes of 
     September 11, 2001, or a representative of such individual 
     shall not be eligible to receive compensation under this 
     title; or
       (C) in the case of a decedent who is an individual 
     described in subparagraph (A) or (B), the personal 
     representative of the decedent who files a claim on behalf of 
     the decedent.
       (3) Requirements.--
       (A) Single claim.--Not more than one claim may be submitted 
     under this title by an individual or on behalf of a deceased 
     individual.
       (B) Limitation on civil action.--
       (i) In general.--Upon the submission of a claim under this 
     title, the claimant waives the right to file a civil action 
     (or to be a party to an action) in any Federal or State court 
     for damages sustained as a result of the terrorist-related 
     aircraft crashes of September 11, 2001. The preceding 
     sentence does not apply to a civil action to recover 
     collateral source obligations.
       (ii) Pending actions.--In the case of an individual who is 
     a party to a civil action described in clause (i), such 
     individual may not submit a claim under this title unless 
     such individual withdraws from such action by the date that 
     is 90 days after the date on which regulations are 
     promulgated under section 407.

     SEC. 406. PAYMENTS TO ELIGIBLE INDIVIDUALS.

       (a) In General.--Not later than 20 days after the date on 
     which a determination is made by the Special Master regarding 
     the amount of compensation due a claimant under this title, 
     the Special Master shall authorize payment to such claimant 
     of the amount determined with respect to the claimant.
       (b) Payment Authority.--This title constitutes budget 
     authority in advance of appropriations Acts and represents 
     the obligation of the Federal Government to provide for the 
     payment of amounts for compensation under this title.
       (c) Additional Funding.--
       (1) In general.--The Attorney General is authorized to 
     accept such amounts as may be contributed by individuals, 
     business concerns, or other entities to carry out this title, 
     under such terms and conditions as the Attorney General may 
     impose.

[[Page S9630]]

       (2) Use of separate account.--In making payments under this 
     section, amounts contained in any account containing funds 
     provided under paragraph (1) shall be used prior to using 
     appropriated amounts.

     SEC. 407. REGULATIONS.

       Not later than 90 days after the date of enactment of this 
     Act, the Attorney General, in consultation with the Special 
     Master, shall promulgate regulations to carry out this title, 
     including regulations with respect to--
       (1) forms to be used in submitting claims under this title;
       (2) the information to be included in such forms;
       (3) procedures for hearing and the presentation of 
     evidence;
       (4) procedures to assist an individual in filing and 
     pursuing claims under this title; and
       (5) other matters determined appropriate by the Attorney 
     General.

     SEC. 408. LIMITATION ON AIR CARRIER LIABILITY.

       (a) In General.--Notwithstanding any other provision of 
     law, liability for all claims, whether for compensatory or 
     punitive damages, arising from the terrorist-related aircraft 
     crashes of September 11, 2001, against any air carrier shall 
     not be in an amount greater than the limits of the liability 
     coverage maintained by the air carrier.
       (b) Federal Cause of Action.--
       (1) Availability of action.--There shall exist a Federal 
     cause of action for damages arising out of the hijacking and 
     subsequent crashes of American Airlines flights 11 and 77, 
     and United Airlines flights 93 and 175, on September 11, 
     2001. Notwithstanding section 40120(c) of title 49, United 
     States Code, this cause of action shall be the exclusive 
     remedy for damages arising out of the hijacking and 
     subsequent crashes of such flights.
       (2) Substantive law.--The substantive law for decision in 
     any such suit shall be derived from the law, including choice 
     of law principles, of the State in which the crash occurred 
     unless such law is inconsistent with or preempted by Federal 
     law.
       (3) Jurisdiction.--The United States District Court for the 
     Southern District of New York shall have original and 
     exclusive jurisdiction over all actions brought for any claim 
     (including any claim for loss of property, personal injury, 
     or death) resulting from or relating to the terrorist-related 
     aircraft crashes of September 11, 2001.
       (c) Exclusion.--Nothing in this section shall in any way 
     limit any liability of any person who is a knowing 
     participant in any conspiracy to hijack any aircraft or 
     commit any terrorist act.

     SEC. 409. RIGHT OF SUBROGATION.

       The United States shall have the right of subrogation with 
     respect to any claim paid by the United States under this 
     title.

                   TITLE V--AIR TRANSPORTATION SAFETY

     SEC. 501. INCREASED AIR TRANSPORTATION SAFETY.

       Congress affirms the President's decision to spend 
     $3,000,000,000 on airline safety and security in conjunction 
     with this Act in order to restore public confidence in the 
     airline industry.

     SEC. 502. CONGRESSIONAL COMMITMENT.

       Congress is committed to act expeditiously, in consultation 
     with the Secretary of Transportation, to strengthen airport 
     security and take further measures to enhance the security of 
     air travel.

                         TITLE VI--SEPARABILITY

     SEC. 601. SEPARABILITY.

       If any provision of this Act (including any amendment made 
     by this Act) or the application thereof to any person or 
     circumstance is held invalid, the remainder of this Act 
     (including any amendment made by this Act) and the 
     application thereof to other persons or circumstances shall 
     not be affected thereby.
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