[DOCID: f:publ042.107]

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         AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT

[[Page 115 STAT. 230]]

Public Law 107-42
107th Congress

                                 An Act


 
      To preserve the continued viability of the United States air 
     transportation system. <<NOTE: Sept. 22, 2001 -  [H.R. 2926]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Air 
Transportation Safety and System Stabilization Act. 49 USC 40101 
note.>> 

SECTION 1. SHORT TITLE.

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

                     TITLE I--AIRLINE STABILIZATION

SEC. 101. AVIATION DISASTER RELIEF. <<NOTE: 49 USC 40101 note.>> 

    (a) <<NOTE: President. Terrorism.>>  In General.--Notwithstanding 
any other provision of law, the President shall take the following 
actions to compensate air carriers for losses incurred by the air 
carriers as a result of the terrorist attacks on the United States that 
occurred on September 11, 2001:
            (1) Subject to such terms and conditions as the President 
        deems necessary, issue Federal credit instruments to air 
        carriers that do not, in the aggregate, exceed $10,000,000,000 
        and provide the subsidy amounts necessary for such instruments 
        in accordance with the provisions of the Federal Credit Reform 
        Act of 1990 (2 U.S.C. 661 et seq.).
            (2) Compensate air carriers in an aggregate amount equal to 
        $5,000,000,000 for--
                    (A) direct losses incurred beginning on September 
                11, 2001, by air carriers as a result of any Federal 
                ground stop order issued by the Secretary of 
                Transportation or any subsequent order which continues 
                or renews such a stoppage; and
                    (B) the incremental losses incurred beginning 
                September 11, 2001, and ending December 31, 2001, by air 
                carriers as a direct result of such attacks.

    (b) Emergency Designation.--Congress designates the amount of new 
budget authority and outlays in all fiscal years resulting from this 
title as an emergency requirement pursuant to section 252(e) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
901(e)). Such amount shall be available only to the extent that a 
request, that includes designation of such amount as an emergency 
requirement as defined in such Act, is transmitted by the President to 
Congress.

[[Page 115 STAT. 231]]

SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD. <<NOTE: 49 USC 40101 
            note.>> 

    (a) Definitions.--In this section, the following definitions apply:
            (1) Board.--The term ``Board'' means the Air Transportation 
        Stabilization Board established under subsection (b).
            (2) Financial obligation.--The term ``financial obligation'' 
        means any note, bond, debenture, or other debt obligation issued 
        by an obligor in connection with financing under this section 
        and section 101(a)(1).
            (3) Lender.--The term ``lender'' means any non-Federal 
        qualified institutional buyer (as defined by section 230.144A(a) 
        of title 17, Code of Federal Regulations (or any successor 
        regulation) known as Rule 144A(a) of the Securities and Exchange 
        Commission and issued under the Security Act of 1933, 
        including--
                    (A) a qualified retirement plan (as defined in 
                section 4974(c) of the Internal Revenue Code of 1986 (26 
                U.S.C. 4974(c)) that is a qualified institutional buyer; 
                and
                    (B) a governmental plan (as defined in section 
                414(d) of the Internal Revenue Code of 1986 (26 U.S.C. 
                414(d)) that is a qualified institutional buyer.
            (4) Obligor.--The term ``obligor'' means a party primarily 
        liable for payment of the principal of or interest on a Federal 
        credit instrument, which party may be a corporation, 
        partnership, joint venture, trust, or governmental entity, 
        agency, or instrumentality.

    (b) Air Transportation Stabilization Board.--
            (1) Establishment.--There is established a board (to be 
        known as the ``Air Transportation Stabilization Board'') to 
        review and decide on applications for Federal credit instruments 
        under section 101(a)(1).
            (2) Composition.--The Board shall consist of--
                    (A) the Secretary of Transportation or the designee 
                of the Secretary;
                    (B) the Chairman of the Board of Governors of the 
                Federal Reserve System, or the designee of the Chairman, 
                who shall be the Chair of the Board;
                    (C) the Secretary of the Treasury or the designee of 
                the Secretary; and
                    (D) the Comptroller General of the United States, or 
                the designee of the Comptroller General, as a nonvoting 
                member of the Board.

    (c) Federal Credit Instruments.--
            (1) In general.--The Board may enter into agreements with 1 
        or more obligors to issue Federal credit instruments under 
        section 101(a)(1) if the Board determines, in its discretion, 
        that--
                    (A) the obligor is an air carrier for which credit 
                is not reasonably available at the time of the 
                transaction;
                    (B) the intended obligation by the obligor is 
                prudently incurred; and
                    (C) such agreement is a necessary part of 
                maintaining a safe, efficient, and viable commercial 
                aviation system in the United States.
            (2) Terms and limitations.--
                    (A) Forms; terms and conditions.--A Federal credit 
                instrument shall be issued under section 101(a)(1) in 
                such

[[Page 115 STAT. 232]]

                form and on such terms and conditions and contain such 
                covenants, representatives, warranties, and requirements 
                (including requirements for audits) as the Board 
                determines appropriate.
                    (B) <<NOTE: Deadline. Regulations.>>  Procedures.--
                Not later than 14 days after the date of enactment of 
                this Act, the Director of the Office of Management and 
                Budget shall issue regulations setting forth procedures 
                for application and minimum requirements, which may be 
                supplemented by the Board in its discretion, for the 
                issuance of Federal credit instruments under section 
                101(a)(1).

    (d) Financial Protection of Government.--
            (1) In general.--To the extent feasible and practicable, the 
        Board shall ensure that the Government is compensated for the 
        risk assumed in making guarantees under this title.
            (2) Government participation in gains.--To the extent to 
        which any participating corporation accepts financial 
        assistance, in the form of accepting the proceeds of any loans 
        guaranteed by the Government under this title, the Board is 
        authorized to enter into contracts under which the Government, 
        contingent on the financial success of the participating 
        corporation, would participate in the gains of the participating 
        corporation or its security holders through the use of such 
        instruments as warrants, stock options, common or preferred 
        stock, or other appropriate equity instruments.
            (3) Deposit in treasury.--All amounts collected by the 
        Secretary of the Treasury under this subsection shall be 
        deposited in the Treasury as miscellaneous receipts.

SEC. 103. SPECIAL RULES FOR COMPENSATION. <<NOTE: 49 USC 40101 note.>> 

    (a) Documentation.--Subject to subsection (b), the amount of 
compensation payable to an air carrier under section 101(a)(2) may not 
exceed the amount of losses described in section 101(a)(2) that the air 
carrier demonstrates to the satisfaction of the President, using sworn 
financial statements or other appropriate data, that the air carrier 
incurred. The Secretary of Transportation and the Comptroller General of 
the United States may audit such statements and may request any 
information that the Secretary and the Comptroller General deems 
necessary to conduct such audit.
    (b) Maximum Amount of Compensation Payable Per Air Carrier.--The 
maximum total amount of compensation payable to an air carrier under 
section 101(a)(2) may not exceed the lesser of--
            (1) the amount of such air carrier's direct and incremental 
        losses described in section 101(a)(2); or
            (2) in the case of--
                    (A) flights involving passenger-only or combined 
                passenger and cargo transportation, the product of--
                          (i) $4,500,000,000; and
                          (ii) the ratio of--
                                    (I) the available seat miles of the 
                                air carrier for the month of August 2001 
                                as reported to the Secretary; to
                                    (II) the total available seat miles 
                                of all such air carriers for such month 
                                as reported to the Secretary; and

[[Page 115 STAT. 233]]

                    (B) flights involving cargo-only transportation, the 
                product of--
                          (i) $500,000,000; and
                          (ii) the ratio of--
                                    (I) the revenue ton miles or other 
                                auditable measure of the air carrier for 
                                cargo for the latest quarter for which 
                                data is available as reported to the 
                                Secretary; to
                                    (II) the total revenue ton miles or 
                                other auditable measure of all such air 
                                carriers for cargo for such quarter as 
                                reported to the Secretary.

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

SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION. <<NOTE: 49 USC 
            40101 note.>> 

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

    (b) Total Compensation Defined.--In this section, the term ``total 
compensation'' includes salary, bonuses, awards of stock, and other 
financial benefits provided by an air carrier to an officer or employee 
of the air carrier.

SEC. 105. CONTINUATION OF CERTAIN AIR SERVICE. <<NOTE: 49 USC 40101 
            note.>> 

    (a) Action of Secretary.--The Secretary of Transportation should 
take appropriate action to ensure that all communities that had 
scheduled air service before September 11, 2001, continue to receive 
adequate air transportation service and that essential air service to 
small communities continues without interruption.
    (b) <<NOTE: Appropriation authorization.>>  Essential Air Service.--
There is authorized to be appropriated to the Secretary to carry out the 
essential air service program under subchapter II of chapter 417 of 
title 49, United States Code, $120,000,000 for fiscal year 2002.

    (c) Secretarial Oversight.--
            (1) In general.--Notwithstanding any other provision of law, 
        the Secretary is authorized to require an air carrier receiving 
        direct financial assistance under this Act to maintain scheduled 
        air service to any point served by that carrier before September 
        11, 2001.
            (2) Agreements.--In applying paragraph (1), the Secretary 
        may require air carriers receiving direct financial assistance 
        under this Act to enter into agreements which will ensure,

[[Page 115 STAT. 234]]

        to the maximum extent practicable, that all communities that had 
        scheduled air service before September 11, 2001, continue to 
        receive adequate air transportation service.

SEC. 106. REPORTS. <<NOTE: Deadlines. President. 49 USC 40101 note.>> 

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

SEC. 107. DEFINITIONS.

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

                      TITLE II--AVIATION INSURANCE

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

    (a) In General.--Section 44302 of title 49, United States Code, is 
amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``subsection (b)'' and inserting 
                ``subsection (c)''; and
                    (B) by striking ``foreign-flag aircraft--'' and all 
                that follows through the period at the end of 
                subparagraph (B) and inserting ``foreign-flag 
                aircraft.'';
            (2) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively;
            (3) by inserting after subsection (a) the following:

    ``(b) Reimbursement of Insurance Cost Increases.--
            ``(1) In general.--The Secretary may reimburse an air 
        carrier for the increase in the cost of insurance, with respect 
        to a premium for coverage ending before October 1, 2002, against 
        loss or damage arising out of any risk from the operation of an 
        American aircraft over the insurance premium that was in effect 
        for a comparable operation during the period beginning September 
        4, 2001, and ending September 10, 2001,

[[Page 115 STAT. 235]]

        as the Secretary may determine. Such reimbursement is subject to 
        subsections (a)(2), (c), and (d) of this section and to section 
        44303.
            ``(2) Payment from revolving fund.--A reimbursement under 
        this subsection shall be paid from the revolving fund 
        established by section 44307.
            ``(3) Further conditions.--The Secretary may impose such 
        further conditions on insurance for which the increase in 
        premium is subject to reimbursement under this subsection as the 
        Secretary may deem appropriate in the interest of air commerce.
            ``(4) Termination of authority.--The authority to reimburse 
        air carriers under this subsection shall expire 180 days after 
        the date of enactment of this paragraph.'';
            (4) in subsection (c) (as so redesignated)--
                    (A) in the first sentence by inserting ``, or 
                reimburse an air carrier under subsection (b) of this 
                section,'' before ``only with the approval''; and
                    (B) in the second sentence--
                          (i) by inserting ``or the reimbursement'' 
                      before ``only after deciding''; and
                          (ii) by inserting ``in the interest of air 
                      commerce or national security or'' before ``to 
                      carry out the foreign policy''; and
            (5) in subsection (d) (as so redesignated) by inserting ``or 
        reimbursing an air carrier'' before ``under this chapter''.

    (b) Coverage.--
            (1) In general.--Section 44303 of such title is amended--
                    (A) in the matter preceding paragraph (1) by 
                inserting ``, or reimburse insurance costs, as'' after 
                ``insurance and reinsurance''; and
                    (B) in paragraph (1) by inserting ``in the interest 
                of air commerce or national security or'' before ``to 
                carry out the foreign policy''.
            (2) Discretion of the secretary.--For acts of terrorism 
        committed on or to an air carrier during the 180-day period 
        following the date of enactment of this Act, the Secretary of 
        Transportation may certify that the air carrier was a victim of 
        an act of terrorism and in the Secretary's judgment, based on 
        the Secretary's analysis and conclusions regarding the facts and 
        circumstances of each case, shall not be responsible for losses 
        suffered by third parties (as referred to in section 205.5(b)(1) 
        of title 14, Code of Federal Regulations) that exceed 
        $100,000,000, in the aggregate, for all claims by such parties 
        arising out of such act. If the Secretary so certifies, the air 
        carrier shall not be liable for an amount that exceeds 
        $100,000,000, in the aggregate, for all claims by such parties 
        arising out of such act, and the Government shall be responsible 
        for any liability above such amount. No punitive damages may be 
        awarded against an air carrier (or the Government taking 
        responsibility for an air carrier under this paragraph) under a 
        cause of action arising out of such act.

    (c) Reinsurance.--Section 44304 of such title is amended--
            (1) by striking ``(a) General Authority.--''; and
            (2) by striking subsection (b).

    (d) Premiums.--Section 44306 of such title is amended--

[[Page 115 STAT. 236]]

            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following:

    ``(b) Allowances in Setting Premium Rates for Reinsurance.--In 
setting premium rates for reinsurance, the Secretary may make allowances 
to the insurance carrier for expenses incurred in providing services and 
facilities that the Secretary considers good business practices, except 
for payments by the air carrier for the stimulation or solicitation of 
insurance business.''.
    (e) Conforming Amendment.--Section 44305(b) of such title is amended 
by striking ``44302(b)'' and inserting ``44302(c)''.

SEC. 202. <<NOTE: 49 USC 40101 note.>>  EXTENSION OF PROVISIONS TO 
            VENDORS, AGENTS, AND SUBCONTRACTORS OF AIR CARRIERS.

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

                        TITLE III--TAX PROVISIONS

SEC. 301. <<NOTE: 49 USC 40101 note.>>  EXTENSION OF DUE DATE FOR EXCISE 
            TAX DEPOSITS; TREATMENT OF LOSS COMPENSATION.

    (a) Extension of Due Date for Excise Tax Deposits.--
            (1) In general.--In the case of an eligible air carrier, any 
        airline-related deposit required under section 6302 of the 
        Internal Revenue Code of 1986 to be made after September 10, 
        2001, and before November 15, 2001, shall be treated for 
        purposes of such Code as timely made if such deposit is made on 
        or before November 15, 2001. If the Secretary of the Treasury so 
        prescribes, the preceding sentence shall be applied by 
        substituting for ``November 15, 2001'' each place it appears--
                    (A) ``January 15, 2002''; or
                    (B) such earlier date after November 15, 2001, as 
                such Secretary may prescribe.
            (2) Eligible air carrier.--For purposes of this subsection, 
        the term ``eligible air carrier'' means any domestic corporation 
        engaged in the trade or business of transporting (for hire) 
        persons by air if such transportation is available to the 
        general public.
            (3) Airline-related deposit.--For purposes of this 
        subsection, the term ``airline-related deposit'' means any 
        deposit of--
                    (A) taxes imposed by subchapter C of chapter 33 of 
                such Code (relating to transportation by air); and
                    (B) taxes imposed by chapters 21, 22, and 24 with 
                respect to employees engaged in a trade or business 
                referred to in paragraph (2).

    (b) Treatment of Loss Compensation.--Nothing in any provision of law 
shall be construed to exclude from gross income under

[[Page 115 STAT. 237]]

the Internal Revenue Code of 1986 any compensation received under 
section 101(a)(2) of this Act.

TITLE IV--VICTIM COMPENSATION <<NOTE: September 11th Victim Compensation 
Fund of 2001. Terrorism.>> 

SEC. 401. SHORT TITLE. <<NOTE: 49 USC 40101 note.>> 

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

SEC. 402. DEFINITIONS. <<NOTE: 49 USC 40101 note.>> 

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

SEC. 403. PURPOSE. <<NOTE: 49 USC 40101 note.>> 

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

SEC. 404. ADMINISTRATION. <<NOTE: 49 USC 40101 note.>> 

    (a) In General.--The Attorney General, acting through a Special 
Master appointed by the Attorney General, shall--
            (1) administer the compensation program established under 
        this title;

[[Page 115 STAT. 238]]

            (2) promulgate all procedural and substantive rules for the 
        administration of this title; and
            (3) employ and supervise hearing officers and other 
        administrative personnel to perform the duties of the Special 
        Master under this title.

    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to pay the administrative and 
support costs for the Special Master in carrying out this title.

SEC. 405. DETERMINATION OF ELIGIBILITY FOR COMPENSATION. <<NOTE: 49 USC 
            40101 note.>> 

    (a) Filing of Claim.--
            (1) In general.--A claimant may file a claim for 
        compensation under this title with the Special Master. The claim 
        shall be on the form developed under paragraph (2) and shall 
        state the factual basis for eligibility for compensation and the 
        amount of compensation sought.
            (2) Claim form.--
                    (A) In general.--The Special Master shall develop a 
                claim form that claimants shall use when submitting 
                claims under paragraph (1). <<NOTE: Electronic 
                document.>>  The Special Master shall ensure that such 
                form can be filed electronically, if determined to be 
                practicable.
                    (B) Contents.--The form developed under subparagraph 
                (A) shall request--
                          (i) information from the claimant concerning 
                      the physical harm that the claimant suffered, or 
                      in the case of a claim filed on behalf of a 
                      decedent information confirming the decedent's 
                      death, as a result of the terrorist-related 
                      aircraft crashes of September 11, 2001;
                          (ii) information from the claimant concerning 
                      any possible economic and noneconomic losses that 
                      the claimant suffered as a result of such crashes; 
                      and
                          (iii) information regarding collateral sources 
                      of compensation the claimant has received or is 
                      entitled to receive as a result of such crashes.
            (3) Limitation.--No claim may be filed under paragraph (1) 
        after the date that is 2 years after the date on which 
        regulations are promulgated under section 407.

    (b) Review and Determination.--
            (1) Review.--The Special Master shall review a claim 
        submitted under subsection (a) and determine--
                    (A) whether the claimant is an eligible individual 
                under subsection (c);
                    (B) with respect to a claimant determined to be an 
                eligible individual--
                          (i) the extent of the harm to the claimant, 
                      including any economic and noneconomic losses; and
                          (ii) the amount of compensation to which the 
                      claimant is entitled based on the harm to the 
                      claimant, the facts of the claim, and the 
                      individual circumstances of the claimant.
            (2) Negligence.--With respect to a claimant, the Special 
        Master shall not consider negligence or any other theory of 
        liability.

[[Page 115 STAT. 239]]

            (3) <<NOTE: Deadline. Notification.>>  Determination.--Not 
        later than 120 days after that date on which a claim is filed 
        under subsection (a), the Special Master shall complete a 
        review, make a determination, and provide written notice to the 
        claimant, with respect to the matters that were the subject of 
        the claim under review. Such a determination shall be final and 
        not subject to judicial review.
            (4) Rights of claimant.--A claimant in a review under 
        paragraph (1) shall have--
                    (A) the right to be represented by an attorney;
                    (B) the right to present evidence, including the 
                presentation of witnesses and documents; and
                    (C) any other due process rights determined 
                appropriate by the Special Master.
            (5) No punitive damages.--The Special Master may not include 
        amounts for punitive damages in any compensation paid under a 
        claim under this title.
            (6) Collateral compensation.--The Special Master shall 
        reduce the amount of compensation determined under paragraph 
        (1)(B)(ii) by the amount of the collateral source compensation 
        the claimant has received or is entitled to receive as a result 
        of the terrorist-related aircraft crashes of September 11, 2001.

    (c) Eligibility.--
            (1) In general.--A claimant shall be determined to be an 
        eligible individual for purposes of this subsection if the 
        Special Master determines that such claimant--
                    (A) is an individual described in paragraph (2); and
                    (B) meets the requirements of paragraph (3).
            (2) Individuals.--A claimant is an individual described in 
        this paragraph if the claimant is--
                    (A) an individual who--
                          (i) was present at the World Trade Center, 
                      (New York, New York), the Pentagon (Arlington, 
                      Virginia), or the site of the aircraft crash at 
                      Shanksville, Pennsylvania at the time, or in the 
                      immediate aftermath, of the terrorist-related 
                      aircraft crashes of September 11, 2001; and
                          (ii) suffered physical harm or death as a 
                      result of such an air crash;
                    (B) an individual who was a member of the flight 
                crew or a passenger on American Airlines flight 11 or 77 
                or United Airlines flight 93 or 175, except that an 
                individual identified by the Attorney General to have 
                been a participant or conspirator in the terrorist-
                related aircraft crashes of September 11, 2001, or a 
                representative of such individual shall not be eligible 
                to receive compensation under this title; or
                    (C) in the case of a decedent who is an individual 
                described in subparagraph (A) or (B), the personal 
                representative of the decedent who files a claim on 
                behalf of the decedent.
            (3) Requirements.--
                    (A) Single claim.--Not more than one claim may be 
                submitted under this title by an individual or on behalf 
                of a deceased individual.
                    (B) Limitation on civil action.--

[[Page 115 STAT. 240]]

                          (i) In general.--Upon the submission of a 
                      claim under this title, the claimant waives the 
                      right to file a civil action (or to be a party to 
                      an action) in any Federal or State court for 
                      damages sustained as a result of the terrorist-
                      related aircraft crashes of September 11, 2001. 
                      The preceding sentence does not apply to a civil 
                      action to recover collateral source obligations.
                          (ii) Pending actions.--In the case of an 
                      individual who is a party to a civil action 
                      described in clause (i), such individual may not 
                      submit a claim under this title unless such 
                      individual withdraws from such action by the date 
                      that is 90 days after the date on which 
                      regulations are promulgated under section 407.

SEC. 406. PAYMENTS TO ELIGIBLE INDIVIDUALS. <<NOTE: 49 USC 40101 
            note.>> 

    (a) <<NOTE: Deadline.>>  In General.--Not later than 20 days after 
the date on which a determination is made by the Special Master 
regarding the amount of compensation due a claimant under this title, 
the Special Master shall authorize payment to such claimant of the 
amount determined with respect to the claimant.

    (b) Payment Authority.--This title constitutes budget authority in 
advance of appropriations Acts and represents the obligation of the 
Federal Government to provide for the payment of amounts for 
compensation under this title.
    (c) Additional Funding.--
            (1) In general.--The Attorney General is authorized to 
        accept such amounts as may be contributed by individuals, 
        business concerns, or other entities to carry out this title, 
        under such terms and conditions as the Attorney General may 
        impose.
            (2) Use of separate account.--In making payments under this 
        section, amounts contained in any account containing funds 
        provided under paragraph (1) shall be used prior to using 
        appropriated amounts.

SEC. 407. REGULATIONS. <<NOTE: 49 USC 40101 note.>> 

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

SEC. 408. LIMITATION ON AIR CARRIER LIABILITY. <<NOTE: 49 USC 40101 
            note.>> 

    (a) In General.--Notwithstanding any other provision of law, 
liability for all claims, whether for compensatory or punitive damages, 
arising from the terrorist-related aircraft crashes of September 11, 
2001, against any air carrier shall not be in an amount greater than the 
limits of the liability coverage maintained by the air carrier.
    (b) Federal Cause of Action.--
            (1) Availability of action.--There shall exist a Federal 
        cause of action for damages arising out of the hijacking and

[[Page 115 STAT. 241]]

        subsequent crashes of American Airlines flights 11 and 77, and 
        United Airlines flights 93 and 175, on September 11, 2001. 
        Notwithstanding section 40120(c) of title 49, United States 
        Code, this cause of action shall be the exclusive remedy for 
        damages arising out of the hijacking and subsequent crashes of 
        such flights.
            (2) Substantive law.--The substantive law for decision in 
        any such suit shall be derived from the law, including choice of 
        law principles, of the State in which the crash occurred unless 
        such law is inconsistent with or preempted by Federal law.
            (3) Jurisdiction.--The United States District Court for the 
        Southern District of New York shall have original and exclusive 
        jurisdiction over all actions brought for any claim (including 
        any claim for loss of property, personal injury, or death) 
        resulting from or relating to the terrorist-related aircraft 
        crashes of September 11, 2001.

    (c) Exclusion.--Nothing in this section shall in any way limit any 
liability of any person who is a knowing participant in any conspiracy 
to hijack any aircraft or commit any terrorist act.

SEC. 409. RIGHT OF SUBROGATION. <<NOTE: 49 USC 40101 note.>> 

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

                   TITLE V--AIR TRANSPORTATION SAFETY

SEC. 501. INCREASED <<NOTE: 49 USC 40101 note.>> AIR TRANSPORTATION 
            SAFETY.

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

SEC. 502. CONGRESSIONAL COMMITMENT. <<NOTE: 49 USC 40101 note.>> 

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

                         TITLE VI--SEPARABILITY

SEC. 601. SEPARABILITY. <<NOTE: 49 USC 40101 note.>> 

    If any provision of this Act (including any amendment made by this 
Act) or the application thereof to any person or circumstance is held 
invalid, the remainder of this Act (including any amendment

[[Page 115 STAT. 242]]

made by this Act) and the application thereof to other persons or 
circumstances shall not be affected thereby.

    Approved September 22, 2001.

LEGISLATIVE HISTORY--H.R. 2926 (S. 1450):
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 147 (2001):
            Sept. 21, considered and passed House and Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 37 (2001):
            Sept. 22, Presidential statement.

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