Pl107-42astb

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[DOCID: f:publ042.107]

[[Page 229]]

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):
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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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