[Congressional Record (Bound Edition), Volume 147 (2001), Part 16]
[House]
[Pages 22850-22871]
[From the U.S. Government Publishing Office, www.gpo.gov]



 CONFERENCE REPORT ON S. 1447, AVIATION AND TRANSPORTATION SECURITY ACT

  Mr. MICA submitted the following conference report and statement on 
the Senate bill (S. 1447) to improve aviation security, and for other 
purposes:

                  Conference Report (H. Rept. 107-296)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the bill (S. 
     1447), to improve aviation security, and for other purposes, 
     having met, after full and free conference, have agreed to 
     recommend and do recommend to their respective Houses as 
     follows:
       That the Senate recede from its disagreement to the 
     amendment of the House and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:

     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.

[[Page 22851]]

       ``(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.

[[Page 22852]]

       (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;

[[Page 22853]]

     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

[[Page 22854]]

     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.
       ``(g) 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 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.
       (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

[[Page 22855]]

     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 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

[[Page 22856]]

     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--
       ``(1) 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

[[Page 22857]]

     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. 117. 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 passenged 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. 118. 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 
     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. 115. 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 non-public 
     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. 116. 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.

[[Page 22858]]

       ``(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 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--

[[Page 22859]]

       (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

[[Page 22860]]

     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 Untied 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

[[Page 22861]]

     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

[[Page 22862]]

     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 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

[[Page 22863]]

     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).''.
       And the House agree to the same.

     Don Young,
     Thomas Petri,
     John J. Duncan, Jr.,
     John L. Mica,
     Vernon J. Ehlers,
     James L. Oberstar,
     William O. Lipinski,
     Peter DeFazio,
                                Managers on the Part of the House.


[[Page 22864]]

     Ernest F. Hollings,
     Daniel K. Inouye,
     John D. Rockefeller IV,
     John F. Kerry,
     John Breaux,
     Byron L. Dorgan,
     Ron Wyden,
     John McCain,
     Trent Lott,
     Kay Bailey Hutchison,
     Olympia Snowe,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the Senate and House at the 
     conference on the disagreeing vote of the two Houses on the 
     amendment of the House of Representatives to the bill (S. 
     1447), to improve aviation security, and for other purposes, 
     submit the following joint statement to the Senate and House 
     in explanation of the effects of the action agreed upon by 
     the managers and recommended in the accompanying conference 
     report:
       The House amendment struck all of the Senate bill after the 
     enacting clause and inserted a substitute text.
       The Senate recedes from its disagreement to the amendment 
     of the House with an amendment that is a substitute for the 
     Senate bill and the House amendment. The differences between 
     the Senate bill, the House amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.


                             1. short title

     Senate bill
       Section 1: ``Aviation Security Act''.
     House amendment
       Section 1: ``Airport Security Federalization Act of 2001''
     Conference substitute
       The title of the legislation will be ``The Aviation and 
     Transportation Security Act.''


                              2. findings

     Senate bill
       Section 101: 7 findings on the importance of security and 
     the need for Federal control and other changes.
     House amendment
       No provision
     Conference substitute
       The conferees recognize that the safety and security of the 
     civil air transportation system is critical to the security 
     of the United States and its national defense, and that a 
     safe and secure United States civil air transportation system 
     is essential to the basic freedom of America to move in 
     intrastate, interstate and international transportation. The 
     conferees further note the terrorist hijacking and crashes of 
     passenger aircraft on September 11, 2001, which converted 
     civil aircraft into guided bombs for strikes against the 
     United States, required a fundamental change in the way it 
     approaches the task of ensuring the safety and security of 
     the civil air transportation system.
       The Conferees expect that security functions at United 
     States airports should become a Federal government 
     responsibility, and it is their belief that while the number 
     of Federal air marshals is classified, their presence would 
     have a deterrent effect on hijacking and would further 
     bolster public confidence in the safety of air travel. The 
     Conferees also noted that the effectiveness of existing 
     security measures, including employee background checks and 
     passenger pre-screening, is currently impaired because of the 
     inaccessibility of, or the failure to share information 
     among, data bases maintained by different Federal and 
     international agencies for criminal behavior or pertinent 
     intelligence information.
       The Conferees developed this legislation to address the 
     security of the nation's transportation system.


            3. organization of security function within dot

     Senate bill
       Section 102: Creates a new Deputy Secretary of 
     Transportation.
     House amendment
       Section 101: Creates a new Transportation Security 
     Administration (TSA) within DOT headed by an Under Secretary. 
     Establishes qualifications. Sets 5-year term. TSA has same 
     procurement and personnel authority as the FAA.
     Conference substitute
       The Conference Report creates the Transportation Security 
     Administration (TSA) to be headed by an Under Secretary 
     within the DOT.


          4. functions of deputy secretary or under secretary

     Senate bill
       Section 102(a): Coordinate and direct the functions of DOT 
     and FAA under Chapter 449.
       Work with the FAA on actions that affect safety.
       Coordinate with DOJ, DOD, and other agencies on matters 
     related to aviation security.
       Coordinate transportation and actions of other agencies 
     during an emergency. (This does not supersede the authority 
     of any other agency.)
       Establish uniform standards for transportation during an 
     emergency.
       Provide notice to other agencies about threats during an 
     emergency. The Secretary defines what constitutes an 
     emergency.
       Take other actions, the Secretary shall prescribe.
     House amendment
       Section 101: Under Secretary will be responsible for 
     security in all modes of transportation. Specifically, Under 
     Secretary is responsible for the following:
       Receiving, assessing, and distributing intelligence 
     information to the appropriate people in the transportation 
     community.
       Assessing threats to transportation.
       Developing policies to deal with these threats.
       Coordinating with other agencies.
       Serve as the liaison with the intelligence community.
       Supervising airport security using Federal uniformed 
     personnel.
       Manage the Federal security personnel in the field.
       Enforce security regulations.
       Undertake research to improve security.
       Inspect, maintain, and test security equipment.
       Ensure that adequate security is provided for the 
     transportation of cargo.
       Oversee the security at airports and other transportation 
     facilities.
       Perform background checks on screeners and those who work 
     at airports.
       Develop standards for the hiring and firing of screeners.
       Train and test screeners.
     Conference substitute
       The Conferees believe the best way to ensure effective 
     Federal management of the nation's transportation system is 
     through the creation of a new Administration within DOT to be 
     called the Transportation Security Administration (TSA). The 
     TSA's responsibilities will encompass security in all modes 
     of transportation.


             5. pay of deputy secretary or under secretary

     Senate bill
       Section 127: Paid at level II of the Executive Schedule 
     plus bonuses based on performance.
     House amendment
       Section 101(c): Paid at level II of the Executive Schedule 
     ($141,300 in 2000).
     Conference substitute
       The Conferees direct that the Under Secretary is to be paid 
     at Level II of the Executive Schedule ($141,300 in 2000). A 
     bonus, not to exceed thirty percent of the annual salary may 
     be provided based on the performance of the US to be 
     determined by the Secretary.


                               6. reports

     Senate bill
       Section 102(a): Annual report of activities.
       Section 127: Annual DOT report on results achieved relative 
     to the agency security performance plan.
       Section 112: 60-day report on additional security measures.
       Section 133: 120-day report on the new DOJ responsibilities 
     for aviation security.
       Section 113: 3-month report on how to improve security of 
     general aviation and air charters.
     House amendment
       Section 106: Eliminates existing report in section 44938 of 
     title 49, United States Code.
     Conference substitute
       (House)


                         6A. enhanced security

     Senate bill
       Section 115: 120 day report on the following issues:
       (1) Requiring verification of airport employees' identity.
       (2) Installing switches so flight attendants can notify 
     pilots of a hijacking.
       (3) Revalidating airline and airport employee 
     identification cards.
       (4) Updating strategy for dealing with hijackings.
       (5) Technology to improve communication between aircraft 
     and ground facilities.
       Section 211: DOT shall study options for improving positive 
     IDs of passengers at check-in counters and boarding areas. 
     Report required in 6 months.
     House amendment
       Section 106: Requires the Under Secretary to address the 
     issues listed below and to report 6 months after the date of 
     enactment on the progress being made in implementing each.
       A similar report would have to be submitted each year 
     thereafter until all the items had either been implemented or 
     rejected:
       (1) Develop procedures (such as barrel roles or 
     depressurizing the aircraft) and authorize equipment (such as 
     lethal or non-lethal weapons) to help the pilot defend the 
     aircraft against hijackers.
       (2) After consultation with the FAA, find ways to--
       (A) limit access to the cockpit;
       (B) strengthen cockpit doors;
       (C) use video cameras to alert pilots to problems in the 
     passenger cabin without having to open the cockpit door;
       (D) ensure that the aircraft transponder cannot be turned 
     off in flight.
       (3) Impose standards for the screening or inspection of 
     vehicles and employees of aircraft fuelers, caterers, 
     cleaners, and others

[[Page 22865]]

     who have access to aircraft and secure areas of airports.
       (4) Require airlines to provide emergency call capability 
     from aircraft and trains.
       (5) Use various technologies, such as voice stress 
     analysis, to prevent a dangerous person from boarding a 
     plane.
       (6) Develop certification standards for individual 
     screeners.
       (7) Establish performance goals and use Threat Image 
     Projection (TIP) or similar devices to test whether screeners 
     are meeting those goals or certification standards.
       (8) Develop ways for airlines to have access to law 
     enforcement and immigration data bases to ensure that 
     dangerous people do not board their planes.
       (9) Use the profiling system known as CAPS to not only give 
     special scrutiny to selected checked baggage but also to the 
     passengers who fit the profile and their carry-on baggage.
       (10) Use technology to ensure that airport and airline 
     employees and law enforcement officers are who they claim to 
     be.
       (11) Install switches in the passenger cabin so that flight 
     attendants can discreetly notify a pilot if there is a 
     problem.
       (12) Change the training of airline personnel in light of 
     the change in the methods and goals of hijackers as evidenced 
     by the attack of September 11th.
       (13) Provide for background checks for those seeking flying 
     lessons on large aircraft or flight simulators of such 
     aircraft.
       (14) Enter into agreements allowing trained law enforcement 
     personnel of other agencies to travel with guns in order to 
     assist a sky marshal.
       (15) Perform more thorough background checks (including 
     review of immigration and other government records) of 
     airport screeners, student pilots, and others who have 
     unescorted access to secure areas of the airport.
       (16) Establish a uniform system for identifying law 
     enforcement personnel authorized to carry a gun on board to 
     ensure they are who they claim to be.
       (17) Allow airlines to implement trusted passenger programs 
     to use technology to expedite screening for those passengers 
     that wish to participate.
       (18) Develop security procedures for stem cells and other 
     medical containers that cannot be opened or x-rayed.
       (19) Develop security procedures to allow musical 
     instruments to be carried in the passenger cabin.
       (20) Provide for the use of wireless devices to enable 
     communications among airport security personnel about 
     potential threats.
     Conference substitute
       The Under Secretary shall decide upon establishing security 
     measures to: ensure that the flight transponder cannot be 
     turned off in flight; require airlines to provide emergency 
     call capability from aircraft and trains; use voice stress 
     analysis, biometric, and other technologies to prevent 
     dangerous persons from boarding a plane; establish a uniform 
     system for identifying law enforcement personnel traveling 
     with firearms to ensure they are who they claim to be; 
     require the consideration of alternative security procedures 
     that would not damage medical products; allow airlines to 
     implement trusted passenger programs to use technology to 
     expedite screening on a voluntary basis; and, provide for the 
     use of technology to enhance communications among airport 
     security personnel about potential threats. The conferees 
     encourage efforts by the Transportation Security 
     Administration and professional organizations representing 
     industry to use biometric information, such as fingerprints 
     collected initially as input to the background check process, 
     for future verification of identity at access control points 
     to secure airport areas. The Conferees applaud efforts to 
     improve day-to-day airport security by utilizing this raw 
     biometric information collected from individuals as a 
     recurrent identifier for access to secure areas. The 
     Conferees urge the Transportation Security Administration to 
     work with industry organizations that can assist in the 
     process of background checks, record-keeping, and universal 
     access control data.


               7. responsibility of the attorney general

     Senate bill
       Section 102(b): Responsible for screening, including the 
     hiring and training of screeners.
     House amendment
       No provision--The Under Secretary is responsible for 
     screening.
     Conference substitute
       No provision.


                             8. transition

     Senate bill
       Section 102(d): Until Deputy Secretary takes office, the 
     functions are performed by the Assistant Administrator of the 
     FAA.
       Section 108: Transition to Attorney General immediate. 
     Actions completed in 9 months.
     House amendment
       Section 101: Under Secretary shall assume civil aviation 
     security responsibilities in 3 months. In the meantime, Under 
     Secretary can take over airline contracts with screening 
     companies.
       No change until Under Secretary is appointed.
     Conference substitute
       The Conferees direct the Under Secretary to assume 
     responsibility for civil aviation security within 3 months of 
     the enactment of this legislation.


                      9. technology and equipment

     Senate bill
       Section 102(c): Amends 44932(c) to require FAA to ensure 
     the use of the best available security equipment, not merely 
     the best available x- ray equipment.
       Section 108: Restates provision in current law requiring 
     manual process where equipment is now underutilized.
       Section 132: By September 30, 2002, FAA shall decide the 
     feasibility of implementing technologies designed to protect 
     aviation and automatically detect bombs, drugs, hazardous 
     chemicals, and nuclear devices.
       Section 201(b): FAA shall deploy and use existing bomb 
     detection equipment. Within 60 days, FAA shall establish 
     goals for--
       (1) deploying equipment now in storage;
       (2) specifying a percentage of checked bags to be scanned 
     within 6 months, with a goal of scanning 100 percent;
       (3) the number of bomb detectors that will be purchased for 
     deployment at medium sized airports within 6 months. [See 
     item 29.]
     House amendment
       Section 106: Makes no change in section 44932(c) of title 
     49, United States Code, but directs Under Secretary to 
     consider requiring various technologies described in item 6 
     above and report to Congress on them 6 months after enactment 
     and annually thereafter until those technologies are deployed 
     or a decision is made not to deploy them.
     Conference substitute
       The Conferees want new, state-of-the-art security equipment 
     installed at airports on an expedited basis, and immediate 
     action taken to ensure that existing explosive detection 
     equipment is employed to the greatest extent possible for the 
     screening of checked baggage. It is expected that additional 
     equipment will be installed in as timely a manner as 
     possible, and in the interim, other systems will be used to 
     screen baggage. The Conferees agree that everything going on 
     board a passenger aircraft should be screened within 60 days 
     by FAA-approved methods.


                  10. airworthiness objections by faa

     Senate bill
       Section 102: Must consult with FAA on all matters affecting 
     safety and operations.
     House amendment
       Section 106: Under Secretary cannot take an action if 
     notified by the FAA that it would adversely affect the 
     airworthiness of the aircraft unless the Secretary approves 
     the action.
     Conference substitute
       House provision.


        11. role of national transportation safety board (ntsb)

     Senate bill
       No provision.
     House amendment
       Section 106: In taking an action that could affect safety, 
     Under Secretary shall solicit and give great weight to views 
     of NTSB.
     Conference substitute
       The Conferees instruct that in taking actions that could 
     affect safety, the timely views of the National 
     Transportation Safety Board (NTSB) will be taken into 
     consideration by the Under Secretary. The conferees wished to 
     emphasize that the views of the NTSB should be provided in a 
     sufficiently and timely manner so those views could be fully 
     considered by the Under Secretary.


                  12. Biological and chemical weapons

     Senate bill
       Section 102(c): FAA shall develop ways to enhance the 
     ability to detect biological and chemical weapons.
       Section 106(c): DOT shall require airports to maximize the 
     use of equipment to detect these weapons.
     House bill
       No provision.
     Conference substitute
       The Conference Report requires airports to maximize the use 
     of equipment to detect and neutralize biological and chemical 
     weapons, and instructs the FAA to develop ways to enhance the 
     detection of these weapons.


                     13. oversight and coordination

     Senate bill
       Section 103: Establishes Aviation Security Oversight 
     Council (ASOC), chaired by DOT Secretary and composed of DOJ, 
     DOD, Treasury, CIA, and any other agency head DOT and DOJ 
     determine to be appropriate.
     House bill
       Section 112: Establishes Transportation Security Oversight 
     Board (TSOB) chaired by DOT Secretary and composed of DOJ, 
     DOD, Treasury, and either NSC or Homeland Security. TSOB 
     shares intelligence, reviews emergency rules, and oversees 
     actions of Under Secretary.
       Establishes Advisory Council, composed of industry, labor, 
     families, and others to advise Under Secretary on security 
     matters.
     Conference substitute
       The Conference Report establishes the Transportation 
     Security Oversight Board (TSOB) chaired by the Secretary of 
     DOT and composed of DOJ, DOD, Treasury, CIA, NSC and Homeland 
     Security. The TSOB may review and ratify or disapprove 
     regulations

[[Page 22866]]

     issued by the Under Secretary; facilitate the coordination of 
     intelligence, security and law enforcement activities 
     affecting transportation; and, perform other duties including 
     making recommendations to the Under Secretary for use in 
     combating threats to the integrity of the nation's 
     transportation system.


                             14. rulemaking

     Senate bill
       No Rules required by DOJ for its own employees; cockpit 
     requirements issuable without APA.
     House bill
       Section 101: Under Secretary can issue security rules 
     immediately without notice and comment, DOT or OMB review, 
     and without a cost-benefit analysis but subject to 
     disapproval by the TSOB.
     Conference substitute
       House provision.


                         15. inspector general

     Senate bill
       No provision.
     House bill
       Section 101: TSA is subject to the Inspector General Act.
     Conference substitute
       The Conference report instructs that the Transportation 
     Security Administration (TSA) will be subject to the 
     Inspector General Act.


                     16. cross checking data bases

     Senate bill
       Section 103(a): DOT, acting through ASOC, shall try to 
     develop a common data base with other agencies and share 
     information about people.
       Section 211: DOT, as part of the ASCC, shall conduct a 90-
     day review of upgrades to the distribution of people on the 
     ``watch list'' of Federal law enforcement agencies.
       Upgrades shall be deployed in 6 months.
       A report shall be filed in 18 months.
     House bill
       Section 106: To the extent that the Under Secretary 
     determines appropriate, the Under Secretary shall (1) 
     establish procedures requiring airlines to use information 
     from government agencies to identify people who may be a 
     threat to civil aviation and (2) require more thorough 
     background checks that include a review of other agency data 
     bases.
       A report is required in 6 months and annually thereafter.
     Conference substitute
       The Conferees have instructed the Secretary to work with 
     the TSOB to develop a data base that will allow the cross 
     checking of the people on ``watch lists'' of various Federal 
     law enforcement agencies to identify individuals that may 
     pose a risk to security in an effort to identify potential 
     risks to civil aviation. Passenger lists should be used in 
     conjunction with this data base to help target those 
     individuals that pose a threat, and allow appropriate action 
     to be taken.


                          17. terrorism report

     Senate bill
       Section 103(b): Require reports on all terrorism. Reports 
     to be shared with DOT.
     House bill
       No provision.
     Conference substitute
       The Conference Report requires the intelligence community 
     to ensure that reports on terrorism are shared with the DOT.


                         18. strategic planning

     Senate bill
       Section 103(c): Require intelligence agencies to establish 
     units for strategic planning on terrorism.
     House bill
       No provision.
     Conference substitute
       The Conference Report requires intelligence agencies to 
     establish units for strategic planning on terrorism.


                          19. cockpit security

     Senate bill
       Section 104: FAA shall issue a rule, without notice and 
     comment, permitting only authorized persons to have access to 
     the cockpit, requiring strengthening the door by installing 
     locks and making them rigid, requiring the door to remain 
     locked during flight except when the pilot needs to get out, 
     and taking away the flight attendants key.
       Special rules shall be issued for aircraft that do not have 
     a door.
     House bill
       Section 106: To the extent the Under Secretary considers 
     appropriate, the Under Secretary shall, after consultation 
     with FAA, implement methods to restrict the opening of the 
     cockpit door during flight and fortify those doors.
       A report is required in 6 months and annually thereafter.
       Funds are authorized to help airlines pay for this.
     Conference substitute
       The Conference Report prohibits access to the flight deck 
     of passenger aircraft by anyone other than the flight crew. 
     Flight deck doors must be strengthened and remain locked 
     while aircraft is in flight. Video cameras may be provided to 
     alert pilots to cabin activity in the event of a security 
     breech occurring during the flight. These provisions apply to 
     aircraft required to have a door between the flight deck and 
     cabin. The Conferees also seek the redesign of cockpits to 
     ensure the doors are secured at all times during flight. 
     Redesign can encompass new flight deck materials, double 
     doors to the cockpit as are used in Israel, and lavatories 
     within the flight deck so that flight crew do not leave the 
     flight deck. Once bathroom facilities are provided for the 
     flight crew of passenger aircraft, the cockpit door no longer 
     will need to be opened during flight.
       The Conferees instruct the Under Secretary to take into 
     consideration the threat to aviation and national security 
     when developing means to secure the flight deck on commuter 
     aircraft. Any new burdens should be appropriate for the risk.


                            20. air marshals

     Senate bill
       Section 105: Attorney General prescribes guidelines for 
     training and deployment of sky marshals. DOT administers the 
     program in accordance with these guidelines:
       (1) Marshals may be placed on every flight but must be 
     placed on every flight that DOT determines to be high risk.
       (2) Marshals must be deployed in 30 days.
       (3) Marshals must be given a seat even if that means 
     bumping a passenger.
       (4) DOT shall work with ICAO and foreign governments to 
     address security concerns on foreign airlines.
       (5) DOT may use personnel from other agencies, including 
     the military, as air marshals.
       Section 105: Waives age requirements for retired police, 
     military and out-of-work pilots to work as air marshals, if 
     they meet the background and fitness qualifications.
       Report required in 18 months.
     House bill
       Section 105: Under Secretary deploys air marshals, provides 
     for their background checks, trains them, and requires U.S. 
     airlines to provide seats for them at no cost.
       Preference for hiring laid off airline pilots as marshals.
       Marshals must be placed on selected flights.
       Marshals must be given a seat even if that means bumping a 
     passenger.
       DOT shall work with foreign governments to address security 
     concerns on international flights from the U.S.
       Until the Under Secretary has all the air marshals needed, 
     personnel from other agencies may be used, with the other 
     agency's concurrence, as air marshals on a non-reimbursable 
     basis.
       Airlines must provide seats, on a space-available basis, to 
     off-duty marshals flying home.
     Conference substitute
       The Conference Report requires that appropriately trained, 
     supervised and equipped Federal Air Marshals (FAMs) may be 
     deployed on every scheduled passenger flight, and must be 
     placed on every ``high risk'' flight, which may include 
     nonstop longhaul flights, or any other flight deemed 
     appropriate, even if the flight is fully booked. For 
     applicants who otherwise meet the background and fitness 
     requirements, age restrictions may be waived to allow retired 
     law enforcement officers, retired members of the armed 
     forces, and members of commercial airline crews (cockpit and 
     cabin) who have been furloughed from their positions after 9-
     11-01. Personnel from other agencies may be deployed, with 
     the agency's concurrence, as FAMs until an adequate number of 
     FAMs are in place. Additionally, agreements may be entered 
     into allowing trained law enforcement personnel from other 
     agencies to travel with firearms in order to assist FAMs.
       The Conferees instruct the Under Secretary to follow air 
     carrier passenger reservations and cancellation practices to 
     the extent practicable. The Under Secretary should work 
     cooperatively with air carriers to develop guidelines 
     concerning reservations and cancellation for the 
     transportation of Federal Air Marshals.


                             21. screening

     Senate bill
       Section 108: Attorney General, in consultation with DOT, 
     shall provide for screening of all passengers, property, 
     mail, and cargo that will be carried aboard an aircraft.
       Federal employees shall do screening.
       Airport and airline employees shall be screened in the same 
     way, except alternative methods may be used for security 
     personnel.
       Attorney General shall use screening technology approved by 
     FAA.
       Law enforcement personnel shall be deployed at each 
     screening location.
       At the 100 largest airports, additional police may be 
     ordered.
       Section 105(f): Report from DOT and DOJ required within 120 
     days on effectiveness of security screening.
       Section 106: DOJ and DOT may permit operational flexibility 
     to tailor screening needs for seasonal variations, aircraft 
     types, and special needs of small airports.
       Section 108: Attorney General may require non-hub or 
     smaller airports to use State or local law enforcement if the 
     screening will be equivalent to that at larger airports, the 
     training meets Federal standards, the airport is reimbursed 
     by funds made available by this Act, and the airport is 
     consulted.
     House bill
       Section 102: Federal government is responsible for 
     screening passengers and property on passenger aircraft that 
     originate in the U.S.. Silent on whether screeners are to be 
     Federal employees or private contractors.

[[Page 22867]]

     Under Secretary shall deputize screeners to enforce Federal 
     laws, but not to arrest people. Screeners must have common 
     uniforms. Must be supervised by uniformed Federal employees.
       Section 107: Under Secretary should consider certificating 
     screeners and use TIP or similar technologies to measure 
     their performance and revoke their certification if their 
     performance is inadequate.
       Section 104: Airport required to deploy law enforcement or 
     military personnel at each screening location. Law 
     enforcement can be either Federal or local.
     Conference substitute
       The Conference Report requires the Federal government to 
     hire, train and deploy Federal screeners, Federal managers, 
     Federal security personnel and Federal law enforcement within 
     1 year. The participants in this Federal security workforce 
     will not be able to strike or engage in work stoppages, and 
     can be fired at the discretion of the Secretary if they are 
     not able to adequately perform their duties.
       The Conferees recognize that, in order to ensure that 
     Federal screeners are able to provide the best security 
     possible, the Secretary must be given wide latitude to 
     determine the terms of employment of screeners. The 
     Conference Committee expects that, in fixing the terms and 
     conditions of employment the Secretary shall establish 
     benefits and conditions of employment. The Conference 
     Committee also recognizes that, in order to hire and retain 
     screeners, the Secretary should also ensure that screeners 
     have access to Federal health, life insurance, and retirement 
     benefits, as well as workers' compensation benefits. The 
     Committee believes that screening personnel must also be 
     given whistleblower protections so that screeners may report 
     security conditions without fear of reprisal.
       The Conference Report requires the DOT to assume existing 
     screening company contracts as soon as possible, but no later 
     than 90 days after enactment of this legislation. The 
     contracts for existing screeners can be extended for up to 6 
     months, and the DOT would have the option to extend contracts 
     for no longer than 3 months, if necessary, to continue 
     screening. DOT may also authorize additional Federal law 
     enforcement, National Guard, and other personnel immediately 
     to address the aviation security needs of the country.
       The Conferees direct the Secretary to provide a report 
     after one year from the date of enactment certifying 
     deployment of the Federal screeners. Two years after 
     certification airports can opt out of the Federalization of 
     the screener level of the Federal workforce if the Secretary 
     determines that these facilities would continue to provide an 
     equal or higher level of security. Companies will be barred 
     from providing screening if they violate federal standards, 
     are found to allow repeated failures of the system, or prove 
     to be a security risk. The DOT will also establish a Pilot 
     Program for 5 airports, one from each category type, to apply 
     for the use of private contract screeners.
       Within 1 year after the date of enactment of the Act, the 
     conferees expect the Transportation Security Administration 
     to submit a report to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure 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.


                   22. citizenship of security firms

     Senate bill
       No provision.
     House bill
       Section 104: Must be owned or controlled by a citizen of 
     the U.S. to the extent the President determines that there 
     are such firms.
       Section 123(e): Similar sense of Congress.
     Conference substitute
       The Conference Report directs that U.S. companies should be 
     used to provide screening if they are available.


              23. training of pilots and flight attendants

     Senate bill
       Section 105(f): Report from DOT and DOJ required within 6 
     months on crew training.
       Section 107: DOT shall develop a mandatory airline training 
     program for crews dealing with a hijacking. Training shall be 
     developed in coordination with law enforcement experts.
     House bill
       Section 106: Under Secretary should consider updating 
     training for dealing with hijacking that includes ways for 
     dealing with suicidal hijackers. Report six months and 
     annually thereafter.
     Conference substitute
       The Conferees have determined that detailed guidance shall 
     be developed for a mandatory air carrier training program to 
     assist flight crews and attendants in hijack situations. The 
     training curriculum will be developed in consultation with 
     Federal law enforcement agencies with expertise in dealing 
     with these types of threat conditions.


         24. how flight attendants notify pilots of a hijacking

     Senate bill
       Section 107: FAA shall revise procedures by which flight 
     attendants notify pilots and implement new measures as soon 
     as practicable.
     House bill
       Section 106: The Under Secretary should consider requiring 
     the installation of switches in the cabin so that the flight 
     attendants can discreetly notify the pilots.
     Conference substitute
       The Conference Report directs the Under Secretary to 
     consider the installation of a switch or other devices to be 
     located in the cabin for flight attendants to notify pilots 
     in the event of a hijacking without the knowledge of 
     passengers.


             25. provision of personnel from other agencies

     Senate bill
       Section 105: Amends section 106(m) to allow other agencies 
     to provide personnel to FAA.
     House bill
       Section 102(d): Same provision, worded differently.
     Conference substitute
       The Conferees call upon other agencies to provide personnel 
     that has received the proper training for use by the FAA as 
     Federal air marshals (FAMs) in an effort to support and 
     supplement the FAM workforce in its early stages.


                 26. airport perimeter access security

     Senate bill
       Section 106: DOT may order deployment of law enforcement 
     personnel as needed to bolster airport security by entering 
     into an agreement with another agency to deploy Federal law 
     enforcement at airports.
       Section 106(b): FAA shall provide technical support and 
     financial assistance to small airports to help defray 
     security costs.
     House bill
       No provision.
     Conference substitute
       The Conferees have given the Secretary the ability to work 
     with the airports to address potential threats at individual 
     facilities by ordering the deployment of Federal law 
     enforcement authorities to improve airport perimeter and 
     access security in an effort to counter potential criminal 
     activities. Such actions also can include providing increased 
     security at air traffic control facilities. Additionally, the 
     FAA Administrator will develop a plan to provide technical 
     support to enable small- and medium-sized airports to enhance 
     their security operations, and shall include using network 
     digital video surveillance systems.


       27. individuals with access to secure areas of the airport

     Senate bill
       See item 21
       Section 106(a): DOT, in consultation with ASOC, shall 
     consider whether such individuals should be screened.
       Section 106(d): Amend 44903(g)(2) to delete 1/31/01 
     deadline and beef up language on access control requirements.
       Consider deployment of biometric technologies.
       Establish pilot programs at 20 airports to test new 
     technologies.
       DOT shall require airlines and airports to develop security 
     awareness programs for employees.
       Section 211: Within 6 months, DOT shall recommend to 
     airports commercially available ways to prevent access to 
     secure areas. As part of this, DOT shall review effectiveness 
     of biometric and other systems, focus on eliminating piggy-
     backing, and include a 12-month deployment strategy for 
     currently available technology at Category X airports. Not 
     later than 18 months, DOT shall conduct a review of 
     reductions in unauthorized access.
     House bill
       Section 106: The Under Secretary shall consider imposing 
     standards for the screening or inspection of vehicles that 
     have access to secure areas and provide for the use of 
     technology to verify the identity of those vehicles entering 
     a secure area. Report after 6 months and annually thereafter.
     Conference substitute
       The Conference Report instructs that all individuals, 
     goods, property, vehicles, and other equipment seeking access 
     to secure areas must be screened and inspected before entry. 
     The Conference Committee instructs that prescribed 
     requirements should provide at least the same level of 
     protection as the screening of passengers and baggage. The 
     Conferees, however, recognize that these requirements may 
     make allowances for tools and equipment necessary to perform 
     duties in secure areas. The Secretary will examine the 
     physical configuration of individual airports, and consider 
     the views of the TSOB to consider implementing standards to 
     protect the integrity of secure areas.


       28. ban on parking of vehicles within 300 feet of terminal

     Senate bill
       Section 106(b): FAA, in consultation with local law 
     enforcement, shall reexamine the need for 300 feet 
     restriction.
     House bill
       Section 121: Removes this parking ban if the airport, in 
     consultation with local law

[[Page 22868]]

     enforcement, certifies to DOT, after doing a threat 
     assessment, that safeguards are in place to protect public 
     safety.
     Conference substitute
       The Conferees have determined that all airports must 
     consult with local law enforcement and inform DOT that proper 
     safeguards are in place to ensure that parked vehicles are 
     not a security risk. Each airport must submit views regarding 
     its assessment of the needs of their facility.


                          29. checked baggage

     Senate bill
       See item 9
       Section 201(b)(1): Requirement for all baggage to be 
     screened within 9 months.
       FAA must establish within 60 days confidential goals for 
     scanning a specific percentage of checked bags within 6 
     months and annual goals thereafter eventually scanning 100%.
       Section 201(c) - page 85FAA shall require airlines to 
     upgrade the bag match system. Shall establish goals within 60 
     days to accomplish this including interim measures to match a 
     higher percentage of bags until bomb detectors are used to 
     scan 100% of bags.
       Confidential report to Congress in 1 year.
     House bill
       See item 9
       Section 106: All checked baggage must be screened by 
     December 31, 2003. All existing explosive detection equipment 
     must be used to the maximum extent possible.
       Additional explosive detection equipment must be installed 
     as soon as possible.
       In the interim, airlines must implement a bag match 
     program.
       A system must be in place as soon as possible to screen 
     cargo transported in passenger aircraft.
       Section 123(d): Sense of Congress that all checked baggage 
     should be screened by any available means.
     Conference substitute
       The Conferees feel strongly that all baggage to be placed 
     on passenger flights must be screened. Existing technology, 
     including EDS, should be used and upgraded in an effort to 
     ensure that all checked baggage goes through such a system. 
     Any baggage that does not go through EDS will be required to 
     go through some form of manual or other comparable screening 
     system. An alternate system of screening cargo should also be 
     established, and periodic reports issued to provide an 
     understanding of the progress made on these efforts.


        30. computer assisted passenger profiling system (capps)

     Senate bill
       Section 201(d): FAA shall make all passengers subject to 
     CAPPS even if they don't check bags so that their carry-ons 
     and person will be subject to additional security measures. 
     Report within 3 months.
       Section 211: DOT, as part of the ASCC, shall conduct a 90-
     day review of upgrades to CAPPS and to the distribution of 
     people on the ``watch list'' of Federal law enforcement 
     agencies. Upgrades shall be deployed in 6 months. A report 
     shall be filed in 18 months.
     House bill
       Section 106(9): The Under Secretary should consider 
     providing the enhanced use of CAPPS to more effectively 
     screen passengers and carry-on baggage. Report in 6 months 
     and annually thereafter.
     Conference substitute
       The Conference Report instructs that an enhanced and 
     upgraded use of the Computer Assisted Passenger Pre-Screening 
     System (CAPPS) must be considered to more effectively screen 
     passengers and baggage. The Conferees also recognize that 
     adjustments may need to be made to reflect circumstances in 
     some areas of the U.S., including States with unique 
     transportation needs.


        31. deputizing for enforcement of federal security laws

     Senate bill
       Section 108(b): Requires Attorney General to deputize State 
     and local law enforcement to regulate screening at non-hubs.
     House bill
       Private contractor employees deputized.
     Conference substitute
       No provision.


                  32. hiring and training of screeners

     Senate bill
       Section 109: DOJ, in consultation with DOT, shall establish 
     a program for the hiring and training of screeners. Hiring 
     qualifications shall be set in 30 days. Includes list of 
     qualifications screeners must meet such as education and 
     language requirements. Training plans must be developed 
     within 60 days. Requires 40 hours of classroom training and 
     60 hours of on the job training. Current lists of dual use 
     items (seemingly harmless items that could be used as a 
     weapon) shall be part of the training. Section 104 - page 16
     House bill
       Under Secretary may set minimum pay for screeners. 
     Preference shall be given to veterans in the hiring of 
     screeners and laid off airline workers. Final rule for 
     certification of screening companies changed from May 31, 
     2001 to 6 months after date of enactment. In the meantime, 
     within 30 days of enactment, the standards in the proposed 
     rule, such as education and language requirements, shall be 
     in effect. All screeners must be in approved uniforms.
     Conference substitute
       A blend of the House and Senate provisions.


                      33. citizenship of screeners

     Senate bill
       Section 109: Must have been a national of the U.S. for at 
     least 5 years.
     House bill
       Section 104(a): Must be U.S. citizens.
     Conference substitute
       The Conference Report requires that all airport screeners 
     must be citizens of the U.S.


                        34. status of screeners

     Senate bill
       Section 109(d): Notwithstanding any law, the Attorney 
     General may hire, fire, and pay screeners as he determines 
     necessary.
     House bill
       Section 102: Federal supervisor can order the dismissal of 
     any screener.
     Conference substitute
       The Conference Report provides the Under Secretary the 
     authority to employ, terminate and fix the conditions of 
     employment for the Federal screening workforce.


                        35. strikes by screeners

     Senate bill
       Section 109(e): Strikes prohibited pursuant to Title 5.
     House bill
       Section 102: Strikes prohibited.
     Conference substitute
       The Conference Report directs that the airport screening 
     workforce will be prohibited from striking. The Conferees 
     have provided the Transportation Security Administration 
     authority to utilize existing authority provided to the FAA 
     to develop personnel and acquisition systems. The authority 
     gives the Administration flexibility to design its own 
     policies and procedures and not use the FAA's system, while 
     retaining the legal requirements under sections 40110 and 
     40112.


                         36. background checks

     Senate bill
       Section 109(f): Requires background checks for current 
     screeners and others with access to the airport.
       Section 201(a): Requires background checks for current 
     screeners and others to be completed in 9 months unless the 
     person has had such a check in the past 5 years. Alternative 
     checks shall be developed for those who have lived in the 
     U.S. for less than 5 years.
     House bill
       Section 107: Allows smaller airports to use the same 
     expedited procedures for criminal history background checks 
     as the larger airports now use. (Under the 2000 Security Act 
     these expedited procedures do not go into effect at smaller 
     airports until 2003.)
       Requires background check (including review of government 
     data bases) for all current screeners and those with access 
     to secure areas except for those who have already had such a 
     check or those who are exempted by FAA rules from such 
     checks.
     Conference substitute
       A blend of the House and Senate provisions.
       The Conferees encourage the Under Secretary to provide 
     channeling authority to professional organizations 
     representing industry to FBI AFIS fingerprint databases to 
     perform criminal history verification of aviation business 
     employees.


                      37. research and development

     Senate bill
       Section 110: Amends section 44912 to require periodic 
     reviews of threats to civil aviation and the potential for 
     the release of biological and chemical weapons. A person 
     shall be designated to be responsible for security research. 
     The person shall file an annual report on research 
     activities. A scientific advisory panel shall be established. 
     DOT shall coordinate research with DOJ.
       Section 221: Authorizes $50 million per year to research 
     various security technologies.
     House bill
       Section 101: Transfers security research from FAA to the 
     TSA. The TSA can use FAA research facilities.
     Conference substitute
       A modified version of the Senate provision.


                           38. flight schools

     Senate bill
       Section 111: Regarding jet-propelled aircraft, a person 
     shall not give flight instruction, including instruction in 
     simulator, to an alien (or other person specified by DOT) 
     unless DOJ issues that person a certificate of completion of 
     the background check of the alien. Requests for the 
     background check shall be made jointly by the alien and the 
     flight school. Investigation must be completed in 30 days. 
     Investigation includes fingerprint check, immigration check, 
     and a determination of whether alien is a national security 
     risk. Expedited procedures shall be developed for an alien 
     seeking recurrent training. Penalties for violations shall be 
     developed by DOT rulemaking. Flight schools shall report 
     aliens that they train.
       Section 111(c): DOT and State shall work with ICAO to 
     improve screening of student pilots.
     House bill
       Section 106(13): The Under Secretary should consider 
     requiring background checks on individuals seeking flying 
     lessons (including simulator lessons) on aircraft weighing

[[Page 22869]]

     more than 12,500 pounds. Report in 6 months and annually 
     thereafter until the Under Secretary implements the checks or 
     decides not to require them.
     Conference substitute
       The Conferees have determined that flight school training 
     for aircraft with a minimum certificated weight of 12,500 
     pounds or more should not be allowed for any alien within the 
     United States unless they have passed a sufficient background 
     check. Such individuals seeking to attend flight school may 
     begin pilot training after 45 days or upon being certified as 
     having passed a background investigation regarding their 
     criminal history and immigration status. A security awareness 
     program will be developed to assist employees that work at 
     flight schools by helping to increase their awareness of a 
     potential threat.


                             39. penalties

     Senate bill
       Section 114: Imposes criminal penalties for interfering 
     with security personnel at a commercial service airport.
     House bill
       Section 116(c): Transfers the relevant civil penalty 
     authorities from the FAA to the TSA.
     Conference substitute
       The Conference Report requires that an individual who 
     disrupts the duties of security screening personnel within a 
     commercial service airport shall be fined and/or imprisoned 
     for up to 10 years. The use of a dangerous weapon to 
     interfere with security screening may result in up to life 
     imprisonment.


                       40. intrastate air service

     Senate bill
       Section 116: DOT may grant antitrust exemptions to ensure 
     continued viability of air service in that State.
     House bill
       No provision.
     Conference substitute
       The Conference Report instructs that DOT may grant anti-
     trust immunity to ensure continued viability of air service 
     within a state. If the Secretary approves any such request, a 
     report must be given to the relevant Senate and House 
     Committees within six months of the approval describing what 
     actions have been taken by the carriers receiving the 
     exemption.


                41. airline computer reservation systems

     Senate bill
       Section 117: DOT shall require all airlines to use the best 
     technology to ensure that their systems are secure from 
     unauthorized access. DOT shall submit an annual report on 
     compliance.
     House bill
       No provision.
     Conference substitute
       Under the direction of the Conference Report airlines are 
     required to take action that will prevent unauthorized access 
     to computer reservation systems and the information they 
     contain on passengers. Technology should be utilized to the 
     greatest extent possible to ensure the integrity of these 
     systems.


                                42. fees

     Senate bill
       Section 118(a): Within 180 days, airlines remit a $2.50 fee 
     per enplanement.
     House bill
       Section 108: Under Secretary shall impose a fee of not more 
     than $2.50 per one-way trip. The amount of the fee shall be 
     reasonably related to the costs of providing the screening 
     service. In addition, a fee can be imposed directly on the 
     airlines but it cannot be more than the airlines paid for 
     screening services in 2000. Fees shall be credited as off-
     setting collections. Passengers using airports where 
     screening services are not provided may be exempted from the 
     fee.
     Conference substitute
       The Conference substitute requires a fee to be charged to 
     cover the cost of providing the aviation security services. 
     The fee will be based on the number of times a passenger 
     boards a plane during the course of travel, but will be 
     capped at $5.00 per one-way trip. Any additional funds needed 
     will be authorized to be appropriated or may come from a fee 
     imposed directly on the airlines.
       The Secretary may waive or modify the security fee to take 
     into account the isolation of certain communities. In 
     determining whether to waive or modify this fee, the 
     Secretary shall consider the costs of transportation security 
     and the benefits of transportation security that is bestowed 
     on those communities. The Conference substitute amends 
     section 45301(b) of title 49, United States Code, with 
     respect to limitations on overflight fees to (1) to make the 
     language consistent with the new security fee language of 
     this Act, and (2) to clarify Congressional intent with 
     respect to the FAA costs upon which the fees can be based. 
     Specifically, the conference substitute replaces the word 
     ``directly'' with ``reasonably'', since the word ``directly'' 
     has been a source of much confusion and narrow 
     interpretation, and has been a primary cause of recurring 
     litigation which has frustrated and delayed the FAA's 
     imposition of the overflight fees for a number of years. 
     Additionally, this amendment specifies that the FAA's costs 
     upon which the fees are based are to be determined solely by 
     the Administrator. This is to clarify that the Administrator 
     has full authority to determine costs by appropriate means. 
     This amendment is not intended to require revision of the 
     fees recently promulgated by the FAA (66 FR 43680, Aug. 20. 
     2001) but rather, to clarify longstanding Congressional 
     intent that the FAA expeditiously and continuously collect 
     the fees authorized under section 45301(a) of title 49.


                           43. authorization

     Senate bill
       Section 118(b): Authorizes such sums for the next 3 years 
     as may be necessary to carry out the security functions.
     House bill
       Section 109: Authorizes such sums as may be necessary to 
     the TSA for operating costs and for screening services not 
     covered by the above fee.
       Authorizes $500 million for grants to airlines to fortify 
     cockpit doors, install video monitors to view the passenger 
     cabin, ensure continuous operation of transponder, and use of 
     other technologies.
     Conference substitute
       The Conference Report authorizes the necessary spending for 
     the cost of providing aviation security.


                          44. airport funding

     Senate bill
       Section 119(a): Allows AIP and PFC funds to be used to pay 
     security costs in FY 2002 for any cost incurred after 9/11 
     regardless of when it was incurred. Waives the local matching 
     share. In deciding whether to make a discretionary AIP grant 
     for security costs, the availability and use of non-Federal 
     funding by the airport shall be considered.
       Section 120: Authorizes such sums in 2002 to compensate 
     airports for security costs. Costs must be documented and 
     subject to an IG audit. DOT shall publish procedures for 
     filing claims in 30 days.
       Section 119(c): PFC requests for security funding should be 
     expedited.
       Section 119(b): For the purpose of determining AIP 
     entitlements in FY 2003, enplanements in 2000 or 2001, 
     whichever is higher, shall be used.
       Section 201(b): Modifying terminal and baggage systems in 
     order to install bomb detection equipment is made AIP 
     eligible. Section 113: Allows AIP and PFC funds to be used to 
     pay for added law enforcement costs in at a non-hub or small 
     hub airport regardless of when the cost was incurred.
       Waives the local matching share.
       In FY 2002, allows AIP and PFC money to be used to pay debt 
     service if that would prevent an airport, or privately owned 
     terminal, from defaulting on its bond.
     House bill
       Section 109: Authorizes a total of $1.5 billion in 2002 and 
     2003 to reimburse airports for direct costs they incurred to 
     meet new security requirements. Such sums to remain available 
     until expended. Before getting the money, the airport must 
     agree to meet with its concessionaires to discuss rent 
     adjustments and provide an itemized list of costs incurred.
     Conference substitute
       A blend of the House and Senate provisions.


                         45. competition plans

     Senate bill
       No provision.
     House bill
       Section 113(a): Waives an airport's obligation to submit a 
     competition plan in FY 2002 when it is seeking money to 
     improve security.
     Conference substitute
       The Conference Report waives the obligation of an airport 
     to submit a competition plan in FY `02 when seeking money to 
     improve security.


                  46. reporting suspicious activities

     Senate bill
       Section 121: Exempts airline employees from liability for 
     disclosing, in good faith, suspicious activity. DOJ shall 
     establish procedures to notify the FAA of people who may pose 
     a risk of hijacking. Report shall be submitted in 120 days on 
     the implementation of this notification.
     House bill
       No provision.
     Conference substitute
       The Conference Report encourages and exempts airline 
     employees from liability for disclosing suspicious activities 
     in response to a ``reasonably believed'' threat.


                           47. arming pilots

     Senate bill
       Section 122: National Institute of Justice shall assess 
     non-lethal weapons for use by pilots and report to DOT in 90 
     days. After receiving report, DOT may authorize pilots to 
     carry such weapons. DOT shall establish training and 
     procedural requirements for using these weapons.
       Section 125: Authorizes FAA to permit a pilot with proper 
     training to carry a gun in the cockpit. FAA shall establish a 
     training program. Report shall be submitted every 6 months on 
     the effectiveness of this provision.
     House bill
       Section 106: DOT cannot take any action to prevent a pilot 
     from taking a gun into the cockpit if the policy of the 
     airline allows it and the pilot has completed a training 
     program acceptable to the Under Secretary.

[[Page 22870]]

     Conference substitute
       A pilot is authorized to carry an approved firearm into the 
     cockpit if approved by the Under Secretary and the air 
     carrier, and the pilot has received proper training.


                        48. isolated communities

     Senate bill
       Section 123: During an emergency, DOT, after consulting 
     with the ASCC, may grant waivers on flight restrictions to 
     allow flights carrying freight, mail, patients, and medical 
     supplies to areas with extraordinary transportation needs 
     given isolation of the area and if the waiver is in the 
     public interest.
     House bill
       Section 120: Similar provision but worded differently.
     Conference substitute
       The Conference Report instructs that during an emergency 
     DOT may grant waivers on flight restrictions to areas with 
     extraordinary transportation needs.


                     49. supplies on board aircraft

     Senate bill
       Section 124: DOT shall ensure the safety of food and other 
     supplies on aircraft by sealing packages, screening personnel 
     and vehicles, etc.
     House bill
       See item 27
     Conference substitute
       The Conferees have determined that DOT should establish 
     procedures to ensure the safety and security of on-board 
     supplies for intrastate passenger aircraft. The Secretary 
     will establish procedures that may increase security for the 
     point of origin of the supplier, provide for sealed supplies, 
     and the screening of the supplies as they enter the airport.


                          50. airman registry

     Senate bill
       Section 126: Directs FAA to modify the registry to make it 
     more effective in combating terrorism. FAA should work with 
     State and locals to assist in identifying those applying for 
     or holding airmen certificates.
     House bill
       No provision.
     Conference substitute
       The Conferees direct that the FAA must take steps to make 
     the airman registry more effective to combat terrorism by 
     working with the appropriate authorities to assist in 
     properly identifying persons applying for or in possession of 
     airmen certificates.


                        51. passenger manifests

     Senate bill
       No provision.
     House bill
       Section 111: Within 60 days, U.S. and foreign airlines on 
     international flights to the U.S. must provide to the Under 
     Secretary (or another agency) by electronic transmission a 
     passenger and crew manifest with specified information.
     Conference substitute
       The Conference Report requires air carriers to use the Air 
     Passenger Information System (APIS) to provide a crew and 
     passenger manifest and related information to Customs for 
     each flight.


                      52. results-based management

     Senate bill
       Section 127: With 60 days, DOT shall establish acceptable 
     performance levels for aviation security and provide Congress 
     with an action plan clarifying the responsibilities of the 
     government agencies involved. Each year, a performance plan 
     shall be made available. Any contracts to implement this Act 
     shall try to maximize the use of performance based service 
     contracts.
     House bill
       Section 106(7): Consider establishing performance goals for 
     screeners. Report after 6 months and annually thereafter 
     until this is implemented or rejected.
     Conference substitute
       Modified Senate provision.


                        53. employment register

     Senate bill
       Section 128(a): DOT shall establish and maintain an 
     employment register.
     House bill
       No provision.
     Conference substitute
       No provision.


                        54. training facilities

     Senate bill
       Section 128(b): DOT may use FAA training facilities to 
     train security screeners.
     House bill
       No provision.
     Conference substitute
       The Conference Report directs the Secretary to use existing 
     Federal training facilities, where possible, to address the 
     training needs of security screening personnel.


                       55. airspace restrictions

     Senate bill
       Section 129: President shall submit a report within 30 days 
     describing any airspace restrictions that remain in place and 
     the justification for those restrictions.
     House bill
       Section 119: The restrictions on Class B airspace shall 
     cease to be in effect 10 days after enactment unless a notice 
     is published prior to the 10th day reimposing and explaining 
     the reasons for those restrictions.
     Conference substitute
       The Conferees instruct the Secretary to lift restrictions 
     on Class B airspace under specified requirements.


                             56. volunteers

     Senate bill
       Section 130: DOT shall carry out a program to permit 
     police, firefighters, and paramedics to provide emergency 
     services during flight. Exempts from liability those who help 
     in an emergency. This does not authorize the possession of 
     firearms.
     House bill
       No provision but exemption from liability seems to be 
     covered by existing law, section 5(b) of Aviation Medical 
     Assistance Act.
     Conference substitute
       The Conferees instruct the Secretary to implement a program 
     that will allow qualified law enforcement, firefighters and 
     emergency service technicians to assist in the event of an 
     emergency during commercial air flights. This program will 
     establish the credentials of volunteers, maintain their 
     confidentiality and exempt them from liability.


                      57. limitation on liability

     Senate bill
       No provision.
     House bill
       Section 110: Limits liability of passenger or crew who 
     hurts a person they, in good faith, believe was hijacking or 
     about to hijack the plane.
     Conference substitute
       The Conference Report exempts passengers and crew from 
     liability if an individual ``reasonably believed'' that a 
     hijacking was occurring.


                     58. general aviation security

     Senate bill
       Section 131: FAA shall begin a security program for 
     aircraft over 12,500 pounds within 90 days. Waivers from this 
     requirement can be granted. A security program for smaller 
     aircraft shall begin in 1 year. A report shall be filed in 18 
     months.
       Aircraft may not be sold or leased to an alien unless a 
     background check has been done or until the security programs 
     described above are implemented.
     House bill
       No provision.
     Conference substitute
       The Conference report directs the Secretary to provide 
     Congress a report on improving general aviation security in 
     the United States within 3 months of enactment of the 
     legislation.
       The Conferees note that a number of issues on aviation 
     security research merit the prompt attention of the 
     Department of Transportation. In particular, the Conferees 
     observe that research into providing better security with 
     minimal disruption in the system in the area of general 
     aviation is important.
       The Conferees note that the FAA has recently designated a 
     consortium of schools as a general aviation center of 
     excellence and anticipates that the FAA would draw upon the 
     expertise of these institutions in formulating a security 
     program for general aviation.
       The Conferees also note that NASA, in coordination with the 
     DOT, is investigating technology that would facilitate remote 
     screening of small aircraft prior to takeoff.
       Such a general aviation remote screening system (GARSS) 
     could be installed on a vehicle or mobile platform, or in a 
     fixed facility alongside a taxiway, and would provide a pre-
     takeoff alert if suspicious objects or materials were 
     detected aboard an aircraft.
       The Conferees urge that the development and implementation 
     of GARSS be pursued.


               59. funding for general aviation airports

     Senate bill
       No provision.
     House bill
       Section 113(b): In FY 2002, allows non-primary airports 
     within Class B airspace to seek AIP money for any purpose, 
     including operational costs.
     Conference substitute
       Modified House position.


                  60. conforming amendment to irs code

     Senate bill
       No provision.
     House bill
       Section 113(e): Amends Code to cross-reference this 
     Security Act so that the money authorized by this Act out of 
     the Trust Fund can be spent.
     Conference substitute
       The Conference Report amends the IRS code to cross-
     reference this legislation to provide for the authorization 
     of spending from the Trust Fund.


                       61. technical corrections

     Senate bill
       No provision.
     House bill
       Section 114: Makes technical corrections to the Air 
     Transportation Safety and System Stabilization Act.
     Conference substitute
       The Conference Report makes technical corrections to the 
     Air Transportation Safety and System Stabilization Act.


                      62. alcohol and drug testing

     Senate bill
       No provision.

[[Page 22871]]

     House bill
       Section 115: Amends existing law to account for the 
     transfer of functions from the FAA to the TSA.
     Conference substitute
       The Conference Report amends existing law to transfer 
     alcohol and drug testing functions from the FAA to the TSA.


                       63. conforming amendments

     Senate bill
       No provision.
     House bill
       Section 116: Amends existing law to account for the 
     transfer of functions from the FAA to the TSA.
     Conference substitute
       The Conference Report amends existing law to account for 
     the transfer of functions from the FAA to the TSA.


                         64. savings provision

     Senate bill
       No provision.
     House bill
       Section 117: Ensures a smooth transfer from the FAA to the 
     TSA.
     Conference substitute
       The Conference Report
       House provision.


                         65. budget submissions

     Senate bill
       No provision.
     House bill
       Section 118: Requires the President's budget submissions 
     starting in 2003 to list the TSA budget separately.
     Conference substitute
       The Conference Report
       House provision.


                           66. air ambulances

     Senate bill
       No provision.
     House bill
       Section 114: Amends the Airline Stabilization Act to modify 
     the method for distributing compensation to air ambulances.
     Conference substitute
       The Conference Report amends the Airline Stabilization Act 
     to allow for a modified system of providing compensation to 
     air tour operators and air ambulances to better address their 
     needs after industry wide losses. It is the Conferees' 
     position that the Stabilization Act's section 103 
     compensation formula language, ``revenue ton miles or any 
     other auditable measure'' should be broadly construed and 
     should not restrict compensation exclusively to revenue ton 
     miles reported on previously filed DOT Form 41s. If Air, 
     Crew, Maintenance, Insurance lessors can provide accurate and 
     auditable records of their revenue-ton-miles during the 
     relevant time period, then they should be eligible for 
     compensation based under the Stabilization Act.


         67. passengers who bought tickets on bankrupt airlines

     Senate bill
       No provision.
     House bill
       Section 123: Other airlines must honor these tickets to the 
     extent practicable.
     Conference substitute
       The Conferees direct the air carriers, to the extent 
     practicable, to honor the tickets of passengers purchased by 
     airlines that file for bankruptcy, if the purchaser requests 
     the use of his or her ticket within 60 days of the suspended 
     or canceled flight, for the first 18 months after enactment 
     of this legislation.


                  68. flight service station employees

     Senate bill
       No provision.
     House bill
       Section 123(a): Sense of Congress that FAA should continue 
     negotiating in good faith with these employees.
     Conference substitute
       The Conference Report offers the Sense of Congress that FAA 
     should continue negotiating in good faith with flight service 
     station employees.


                         69. war risk insurance

     Senate bill
       No provision.
     House bill
       Section 123(b): Sense of Congress that vendors agents and 
     subcontractors of general aviation aircraft should get war 
     risk insurance.
     Conference substitute
       The Conference Report offers the Sense of Congress on the 
     availability of war risk insurance to vendors, agents, and 
     subcontractors of air carriers for all their domestic 
     operations.


                              70. animals

     Senate bill
       No provision.
     House bill
       Section 123(c): Sense of Congress that airlines that 
     transport mail should carry animals that the Postal Service 
     allows to be mailed.
     Conference substitute
       The Conference Report offers the Sense of the House that 
     airlines that transport mail should carry animals that the 
     U.S. Postal Service permits to be sent in the mail.


                          71. Carry-on Baggage

     Senate bill
       Report on carry-on baggage.
     House bill
       No provision.
     Conference substitute
       The Conference Report offers the Sense of the Congress that 
     the FAA should continue its current restrictions on carry-on 
     baggage of 1 bag plus 1 personal item. A backpack should be 
     considered a personal item.


                     72. USPS Mail Policy in Alaska

     Senate bill
       No provision.
     House bill
       No provision.
     Conference substitute
       The Conferees encourage the Congress to pass legislation 
     quickly to restructure the United States Postal Service's 
     process of tendering non-priority bypass mail with the State 
     of Alaska. Restructuring this program to direct more carriers 
     to convert to 121 passenger operators will improve the safety 
     of air transportation in Alaska and enhance the security of 
     passengers.


                        73. victims compensation

     Senate bill
       No provision.
     House bill
       Title II:
     Conference substitute
       The Conference substitute extends the liability limitations 
     of the Air Transportation Stabilization Act to aircraft 
     manufacturers, State port authorities, owners and operators 
     of airports, and persons with property interests in the World 
     Trade Center.
       These provisions limit liability under the Act to the 
     maximum level of their insurance coverage.
       Any person with a property interest in the World Trade 
     Center, as a condition to receiving liability protection 
     under the Act, is required to satisfy all contractual 
     obligations to rebuild or assist in the rebuilding of the 
     World Trade Center.
       The Conference substitute also limits the liability for all 
     claims arising from the terrorist-related attacks of 
     September 11, 2001, brought against the City of New York to 
     the greater of the City's insurance coverage or $350,000,000.
       This limitation on damages against the City of New York, 
     however, does not apply to any non-government or private 
     entity that is contracted with the City.
       The Conference substitute also excludes entities primarily 
     engaged in the business of airport security from its 
     limitation on liability.
     Don Young,
     Thomas Petri,
     John J. Duncan, Jr.,
     John L. Mica,
     Vernon J. Ehlers,
     James L. Oberstar,
     William O. Lipinski,
     Peter DeFazio,
                                Managers on the Part of the House.

     Ernest F. Hollings,
     Daniel K. Inouye,
     John D. Rockefeller IV,
     John F. Kerry,
     John Breaux,
     Byron L. Dorgan,
     Ron Wyden,
     John McCain,
     Trent Lott,
     Kay Bailey Hutchison,
     Olympia Snowe,
     Managers on the Part of the Senate.

                          ____________________