PUBLIC LAW 107–42—SEPT. 22, 2001

AIR TRANSPORTATION SAFETY AND SYSTEM

STABILIZATION ACT

115 STAT. 230 PUBLIC LAW 107–42—SEPT. 22, 2001

Public Law 107–42

107th Congress

An Act

To preserve the continued viability of the United States air transportation system.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Air Transportation Safety and

System Stabilization Act’’.

TITLE I—AIRLINE STABILIZATION

SEC. 101. AVIATION DISASTER RELIEF.

(a) IN GENERAL.—Notwithstanding any other provision of law,

the President shall take the following actions to compensate air

carriers for losses incurred by the air carriers as a result of the

terrorist attacks on the United States that occurred on September

11, 2001:

(1) Subject to such terms and conditions as the President

deems necessary, issue Federal credit instruments to air carriers that do not, in the aggregate, exceed $10,000,000,000

and provide the subsidy amounts necessary for such

instruments in accordance with the provisions of the Federal

Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

(2) Compensate air carriers in an aggregate amount equal

to $5,000,000,000 for—

(A) direct losses incurred beginning on September 11,

2001, by air carriers as a result of any Federal ground

stop order issued by the Secretary of Transportation or

any subsequent order which continues or renews such a

stoppage; and

(B) the incremental losses incurred beginning September 11, 2001, and ending December 31, 2001, by air

carriers as a direct result of such attacks.

(b) EMERGENCY DESIGNATION.—Congress designates the

amount of new budget authority and outlays in all fiscal years

resulting from this title as an emergency requirement pursuant

to section 252(e) of the Balanced Budget and Emergency Deficit

Control Act of 1985 (2 U.S.C. 901(e)). Such amount shall be available only to the extent that a request, that includes designation

of such amount as an emergency requirement as defined in such

Act, is transmitted by the President to Congress.

President.

Terrorism.

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Air

Transportation

Safety and

System

Stabilization Act.

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[H.R. 2926]

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SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD.

(a) DEFINITIONS.—In this section, the following definitions

apply:

(1) BOARD.—The term ‘‘Board’’ means the Air Transportation Stabilization Board established under subsection (b).

(2) FINANCIAL OBLIGATION.—The term ‘‘financial obligation’’ means any note, bond, debenture, or other debt obligation

issued by an obligor in connection with financing under this

section and section 101(a)(1).

(3) LENDER.—The term ‘‘lender’’ means any non-Federal

qualified institutional buyer (as defined by section 230.144A(a)

of title 17, Code of Federal Regulations (or any successor regulation) known as Rule 144A(a) of the Securities and Exchange

Commission and issued under the Security Act of 1933,

including—

(A) a qualified retirement plan (as defined in section

4974(c) of the Internal Revenue Code of 1986 (26 U.S.C.

4974(c)) that is a qualified institutional buyer; and

(B) a governmental plan (as defined in section 414(d)

of the Internal Revenue Code of 1986 (26 U.S.C. 414(d))

that is a qualified institutional buyer.

(4) OBLIGOR.—The term ‘‘obligor’’ means a party primarily

liable for payment of the principal of or interest on a Federal

credit instrument, which party may be a corporation, partnership, joint venture, trust, or governmental entity, agency, or

instrumentality.

(b) AIR TRANSPORTATION STABILIZATION BOARD.—

(1) ESTABLISHMENT.—There is established a board (to be

known as the ‘‘Air Transportation Stabilization Board’’) to

review and decide on applications for Federal credit

instruments under section 101(a)(1).

(2) COMPOSITION.—The Board shall consist of—

(A) the Secretary of Transportation or the designee

of the Secretary;

(B) the Chairman of the Board of Governors of the

Federal Reserve System, or the designee of the Chairman,

who shall be the Chair of the Board;

(C) the Secretary of the Treasury or the designee of

the Secretary; and

(D) the Comptroller General of the United States, or

the designee of the Comptroller General, as a nonvoting

member of the Board.

(c) FEDERAL CREDIT INSTRUMENTS.—

(1) IN GENERAL.—The Board may enter into agreements

with 1 or more obligors to issue Federal credit instruments

under section 101(a)(1) if the Board determines, in its discretion, that—

(A) the obligor is an air carrier for which credit is

not reasonably available at the time of the transaction;

(B) the intended obligation by the obligor is prudently

incurred; and

(C) such agreement is a necessary part of maintaining

a safe, efficient, and viable commercial aviation system

in the United States.

(2) TERMS AND LIMITATIONS.—

(A) FORMS; TERMS AND CONDITIONS.—A Federal credit

instrument shall be issued under section 101(a)(1) in such

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form and on such terms and conditions and contain such

covenants, representatives, warranties, and requirements

(including requirements for audits) as the Board determines appropriate.

(B) PROCEDURES.—Not later than 14 days after the

date of enactment of this Act, the Director of the Office

of Management and Budget shall issue regulations setting

forth procedures for application and minimum requirements, which may be supplemented by the Board in its

discretion, for the issuance of Federal credit instruments

under section 101(a)(1).

(d) FINANCIAL PROTECTION OF GOVERNMENT.—

(1) IN GENERAL.—To the extent feasible and practicable,

the Board shall ensure that the Government is compensated

for the risk assumed in making guarantees under this title.

(2) GOVERNMENT PARTICIPATION IN GAINS.—To the extent

to which any participating corporation accepts financial assistance, in the form of accepting the proceeds of any loans guaranteed by the Government under this title, the Board is authorized to enter into contracts under which the Government,

contingent on the financial success of the participating corporation, would participate in the gains of the participating corporation or its security holders through the use of such instruments

as warrants, stock options, common or preferred stock, or other

appropriate equity instruments.

(3) DEPOSIT IN TREASURY.—All amounts collected by the

Secretary of the Treasury under this subsection shall be deposited in the Treasury as miscellaneous receipts.

SEC. 103. SPECIAL RULES FOR COMPENSATION.

(a) DOCUMENTATION.—Subject to subsection (b), the amount

of compensation payable to an air carrier under section 101(a)(2)

may not exceed the amount of losses described in section 101(a)(2)

that the air carrier demonstrates to the satisfaction of the President,

using sworn financial statements or other appropriate data, that

the air carrier incurred. The Secretary of Transportation and the

Comptroller General of the United States may audit such statements and may request any information that the Secretary and

the Comptroller General deems necessary to conduct such audit.

(b) MAXIMUM AMOUNT OF COMPENSATION PAYABLE PER AIR

CARRIER.—The maximum total amount of compensation payable

to an air carrier under section 101(a)(2) may not exceed the lesser

of—

(1) the amount of such air carrier’s direct and incremental

losses described in section 101(a)(2); or

(2) in the case of—

(A) flights involving passenger-only or combined passenger and cargo transportation, the product of—

(i) $4,500,000,000; and

(ii) the ratio of—

(I) the available seat miles of the air carrier

for the month of August 2001 as reported to the

Secretary; to

(II) the total available seat miles of all such

air carriers for such month as reported to the

Secretary; and

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(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.

(a) IN GENERAL.—The President may only issue a Federal credit

instrument under section 101(a)(1) to an air carrier after the air

carrier enters into a legally binding agreement with the President

that, during the 2-year period beginning September 11, 2001, and

ending September 11, 2003, no officer or employee of the air carrier

whose total compensation exceeded $300,000 in calendar year 2000

(other than an employee whose compensation is determined through

an existing collective bargaining agreement entered into prior to

September 11, 2001)— (1) will receive from the air carrier total compensation

which exceeds, during any 12 consecutive months of such 2-

year period, the total compensation received by the officer or

employee from the air carrier in calendar year 2000; and

(2) will receive from the air carrier severance pay or other

benefits upon termination of employment with the air carrier

which exceeds twice the maximum total compensation received

by the officer or employee from the air carrier in calendar

year 2000.

(b) TOTAL COMPENSATION DEFINED.—In this section, the term ‘‘total compensation’’ includes salary, bonuses, awards of stock, and

other financial benefits provided by an air carrier to an officer

or employee of the air carrier.

SEC. 105. CONTINUATION OF CERTAIN AIR SERVICE.

(a) ACTION OF SECRETARY.—The Secretary of Transportation

should take appropriate action to ensure that all communities that

had scheduled air service before September 11, 2001, continue

to receive adequate air transportation service and that essential

air service to small communities continues without interruption.

(b) ESSENTIAL AIR SERVICE.—There is authorized to be appropriated to the Secretary to carry out the essential air service program under subchapter II of chapter 417 of title 49, United States

Code, $120,000,000 for fiscal year 2002.

(c) SECRETARIAL OVERSIGHT.—

(1) IN GENERAL.—Notwithstanding any other provision of

law, the Secretary is authorized to require an air carrier

receiving direct financial assistance under this Act to maintain

scheduled air service to any point served by that carrier before

September 11, 2001.

(2) AGREEMENTS.—In applying paragraph (1), the Secretary

may require air carriers receiving direct financial assistance

under this Act to enter into agreements which will ensure,

Appropriation

authorization.

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to the maximum extent practicable, that all communities that

had scheduled air service before September 11, 2001, continue

to receive adequate air transportation service.

SEC. 106. REPORTS.

(a) REPORT.—Not later than February 1, 2001, the President

shall transmit to the Committee on Transportation and Infrastructure, the Committee on Appropriations, and the Committee on

the Budget of the House of Representatives and the Committee

on Commerce, Science, and Transportation, the Committee on

Appropriations, and the Committee on the Budget of the Senate

a report on the financial status of the air carrier industry and

the amounts of assistance provided under this title to each air

carrier.

(b) UPDATE.—Not later than the last day of the 7-month period

following the date of enactment of this Act, the President shall

update and transmit the report to the Committees.

SEC. 107. DEFINITIONS.

In this title, the following definitions apply:

(1) AIR CARRIER.—The term ‘‘air carrier’’ has the meaning

such term has under section 40102 of title 49, United States

Code.

(2) FEDERAL CREDIT INSTRUMENT.—The term ‘‘Federal

credit instrument’’ means any guarantee or other pledge by

the Board issued under section 101(a)(1) to pledge the full

faith and credit of the United States to pay all or part of

any of the principal of and interest on a loan or other debt

obligation issued by an obligor and funded by a lender.

(3) INCREMENTAL LOSS.—The term ‘‘incremental loss’’ does

not include any loss that the President determines would have

been incurred if the terrorist attacks on the United States

that occurred on September 11, 2001, had not occurred.

TITLE II—AVIATION INSURANCE

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

(a) IN GENERAL.—Section 44302 of title 49, United States Code,

is amended—

(1) in subsection (a)(1)—

(A) by striking ‘‘subsection (b)’’ and inserting ‘‘subsection (c)’’; and

(B) by striking ‘‘foreign-flag aircraft—’’ and all that

follows through the period at the end of subparagraph

(B) and inserting ‘‘foreign-flag aircraft.’’;

(2) by redesignating subsections (b), (c), and (d) as subsections (c), (d), and (e), respectively;

(3) by inserting after subsection (a) the following:

‘‘(b) REIMBURSEMENT OF INSURANCE COST INCREASES.—

‘‘(1) IN GENERAL.—The Secretary may reimburse an air

carrier for the increase in the cost of insurance, with respect

to a premium for coverage ending before October 1, 2002,

against loss or damage arising out of any risk from the operation of an American aircraft over the insurance premium

that was in effect for a comparable operation during the period

beginning September 4, 2001, and ending September 10, 2001,

Deadlines.

President.

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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—

115 STAT. 236 PUBLIC LAW 107–42—SEPT. 22, 2001

(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 REINSUR- ANCE.—In setting premium rates for reinsurance, the Secretary

may make allowances to the insurance carrier for expenses incurred

in providing services and facilities that the Secretary considers

good business practices, except for payments by the air carrier

for the stimulation or solicitation of insurance business.’’. (e) CONFORMING AMENDMENT.—Section 44305(b) of such title

is amended by striking ‘‘44302(b)’’ and inserting ‘‘44302(c)’’.

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

Notwithstanding any other provision of this title, the Secretary

may extend any provision of chapter 443 of title 49, United States

Code, as amended by this title, and the provisions of this title,

to vendors, agents, and subcontractors of air carriers. For the 180-

day period beginning on the date of enactment of this Act, the

Secretary may extend or amend any such provisions so as to ensure

that the entities referred to in the preceding sentence are not

responsible in cases of acts of terrorism for losses suffered by

third parties that exceed the amount of such entities’ liability

coverage, as determined by the Secretary.

TITLE III—TAX PROVISIONS

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

(a) EXTENSION OF DUE DATE FOR EXCISE TAX DEPOSITS.—

(1) IN GENERAL.—In the case of an eligible air carrier,

any airline-related deposit required under section 6302 of the

Internal Revenue Code of 1986 to be made after September

10, 2001, and before November 15, 2001, shall be treated for

purposes of such Code as timely made if such deposit is made

on or before November 15, 2001. If the Secretary of the Treasury

so prescribes, the preceding sentence shall be applied by substituting for ‘‘November 15, 2001’’ each place it appears—

(A) ‘‘January 15, 2002’’; or

(B) such earlier date after November 15, 2001, as such

Secretary may prescribe.

(2) ELIGIBLE AIR CARRIER.—For purposes of this subsection,

the term ‘‘eligible air carrier’’ means any domestic corporation

engaged in the trade or business of transporting (for hire)

persons by air if such 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

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PUBLIC LAW 107–42—SEPT. 22, 2001 115 STAT. 237

the Internal Revenue Code of 1986 any compensation received

under section 101(a)(2) of this Act.

TITLE IV—VICTIM COMPENSATION

SEC. 401. SHORT TITLE.

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

SEC. 402. DEFINITIONS.

In this title, the following definitions apply:

(1) AIR CARRIER.—The term ‘‘air carrier’’ means a citizen

of the United States undertaking by any means, directly or

indirectly, to provide air transportation and includes employees

and agents of such citizen.

(2) AIR TRANSPORTATION.—The term ‘‘air transportation’’

means foreign air transportation, interstate air transportation,

or the transportation of mail by aircraft.

(3) CLAIMANT.—The term ‘‘claimant’’ means an individual

filing a claim for compensation under section 405(a)(1).

(4) COLLATERAL SOURCE.—The term ‘‘collateral source’’

means all collateral sources, including life insurance, pension

funds, death benefit programs, and payments by Federal, State,

or local governments related to the terrorist-related aircraft

crashes of September 11, 2001.

(5) ECONOMIC LOSS.—The term ‘‘economic loss’’ means any

pecuniary loss resulting from harm (including the loss of

earnings or other benefits related to employment, medical

expense loss, replacement services loss, loss due to death, burial

costs, and loss of business or employment opportunities) to

the extent recovery for such loss is allowed under applicable

State law.

(6) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible individual’’

means an individual determined to be eligible for compensation

under section 405(c).

(7) NONECONOMIC LOSSES.—The term ‘‘noneconomic losses’’

means losses for physical and emotional pain, suffering,

inconvenience, physical impairment, mental anguish, disfigurement, loss of enjoyment of life, loss of society and companionship, loss of consortium (other than loss of domestic service),

hedonic damages, injury to reputation, and all other nonpecuniary losses of any kind or nature.

(8) SPECIAL MASTER.—The term ‘‘Special Master’’ means

the Special Master appointed under section 404(a).

SEC. 403. PURPOSE.

It is the purpose of this title to provide compensation to any

individual (or relatives of a deceased individual) who was physically

injured or killed as a result of the terrorist-related aircraft crashes

of September 11, 2001.

SEC. 404. ADMINISTRATION.

(a) IN GENERAL.—The Attorney General, acting through a Special Master appointed by the Attorney General, shall—

(1) administer the compensation program established under

this title;

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(2) promulgate all procedural and substantive rules for

the administration of this title; and

(3) employ and supervise hearing officers and other

administrative personnel to perform the duties of the Special

Master under this title.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated such sums as may be necessary to pay the

administrative and support costs for the Special Master in carrying

out this title.

SEC. 405. DETERMINATION OF ELIGIBILITY FOR COMPENSATION.

(a) FILING OF CLAIM.—

(1) IN GENERAL.—A claimant may file a claim for compensation under this title with the Special Master. The claim shall

be on the form developed under paragraph (2) and shall state

the factual basis for eligibility for compensation and the amount

of compensation sought.

(2) CLAIM FORM.—

(A) IN GENERAL.—The Special Master shall develop

a claim form that claimants shall use when submitting

claims under paragraph (1). The Special Master shall

ensure that such form can be filed electronically, if determined to be practicable.

(B) CONTENTS.—The form developed under subparagraph (A) shall request—

(i) information from the claimant concerning the

physical harm that the claimant suffered, or in the

case of a claim filed on behalf of a decedent information

confirming the decedent’s death, as a result of the

terrorist-related aircraft crashes of September 11,

2001;

(ii) information from the claimant concerning any

possible economic and noneconomic losses that the

claimant suffered as a result of such crashes; and

(iii) information regarding collateral sources of

compensation the claimant has received or is entitled

to receive as a result of such crashes.

(3) LIMITATION.—No claim may be filed under paragraph

(1) after the date that is 2 years after the date on which

regulations are promulgated under section 407.

(b) REVIEW AND DETERMINATION.—

(1) REVIEW.—The Special Master shall review a claim submitted under subsection (a) and determine—

(A) whether the claimant is an eligible individual under

subsection (c);

(B) with respect to a claimant determined to be an

eligible individual—

(i) the extent of the harm to the claimant, including

any economic and noneconomic losses; and

(ii) the amount of compensation to which the claimant is entitled based on the harm to the claimant,

the facts of the claim, and the individual circumstances

of the claimant.

(2) NEGLIGENCE.—With respect to a claimant, the Special

Master shall not consider negligence or any other theory of

liability.

Electronic

document.

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(3) DETERMINATION.—Not later than 120 days after that

date on which a claim is filed under subsection (a), the Special

Master shall complete a review, make a determination, and

provide written notice to the claimant, with respect to the

matters that were the subject of the claim under review. Such

a determination shall be final and not subject to judicial review.

(4) RIGHTS OF CLAIMANT.—A claimant in a review under

paragraph (1) shall have—

(A) the right to be represented by an attorney;

(B) the right to present evidence, including the presentation of witnesses and documents; and

(C) any other due process rights determined appropriate by the Special Master.

(5) NO PUNITIVE DAMAGES.—The Special Master may not

include amounts for punitive damages in any compensation

paid under a claim under this title.

(6) COLLATERAL COMPENSATION.—The Special Master shall

reduce the amount of compensation determined under paragraph (1)(B)(ii) by the amount of the collateral source compensation the claimant has received or is entitled to receive as

a result of the terrorist-related aircraft crashes of September

11, 2001.

(c) ELIGIBILITY.—

(1) IN GENERAL.—A claimant shall be determined to be

an eligible individual for purposes of this subsection if the

Special Master determines that such claimant—

(A) is an individual described in paragraph (2); and

(B) meets the requirements of paragraph (3).

(2) INDIVIDUALS.—A claimant is an individual described

in this paragraph if the claimant is—

(A) an individual who—

(i) was present at the World Trade Center, (New

York, New York), the Pentagon (Arlington, Virginia),

or the site of the aircraft crash at Shanksville, Pennsylvania at the time, or in the immediate aftermath,

of the terrorist-related aircraft crashes of September

11, 2001; and

(ii) suffered physical harm or death as a result

of such an air crash;

(B) an individual who was a member of the flight

crew or a passenger on American Airlines flight 11 or

77 or United Airlines flight 93 or 175, except that an

individual identified by the Attorney General to have been

a participant or conspirator in the terrorist-related aircraft

crashes of September 11, 2001, or a representative of such

individual shall not be eligible to receive compensation

under this title; or

(C) in the case of a decedent who is an individual

described in subparagraph (A) or (B), the personal representative of the decedent who files a claim on behalf

of the decedent.

(3) REQUIREMENTS.—

(A) SINGLE CLAIM.—Not more than one claim may be

submitted under this title by an individual or on behalf

of a deceased individual.

(B) LIMITATION ON CIVIL ACTION.—

Deadline.

Notification.

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(i) IN GENERAL.—Upon the submission of a claim

under this title, the claimant waives the right to file

a civil action (or to be a party to an action) in any

Federal or State court for damages sustained as a

result of the terrorist-related aircraft crashes of September 11, 2001. The preceding sentence does not apply

to a civil action to recover collateral source obligations.

(ii) PENDING ACTIONS.—In the case of an individual

who is a party to a civil action described in clause

(i), such individual may not submit a claim under

this title unless such individual withdraws from such

action by the date that is 90 days after the date on

which regulations are promulgated under section 407.

SEC. 406. PAYMENTS TO ELIGIBLE INDIVIDUALS.

(a) IN GENERAL.—Not later than 20 days after the date on

which a determination is made by the Special Master regarding

the amount of compensation due a claimant under this title, the

Special Master shall authorize payment to such claimant of the

amount determined with respect to the claimant.

(b) PAYMENT AUTHORITY.—This title constitutes budget

authority in advance of appropriations Acts and represents the

obligation of the Federal Government to provide for the payment

of amounts for compensation under this title.

(c) ADDITIONAL FUNDING.—

(1) IN GENERAL.—The Attorney General is authorized to

accept such amounts as may be contributed by individuals,

business concerns, or other entities to carry out this title,

under such terms and conditions as the Attorney General may

impose.

(2) USE OF SEPARATE ACCOUNT.—In making payments

under this section, amounts contained in any account containing

funds provided under paragraph (1) shall be used prior to

using appropriated amounts.

SEC. 407. REGULATIONS.

Not later than 90 days after the date of enactment of this

Act, the Attorney General, in consultation with the Special Master,

shall promulgate regulations to carry out this title, including regulations with respect to— (1) forms to be used in submitting claims under this title;

(2) the information to be included in such forms;

(3) procedures for hearing and the presentation of evidence;

(4) procedures to assist an individual in filing and pursuing

claims under this title; and

(5) other matters determined appropriate by the Attorney

General.

SEC. 408. LIMITATION ON AIR CARRIER LIABILITY.

(a) IN GENERAL.—Notwithstanding any other provision of law,

liability for all claims, whether for compensatory or punitive damages, arising from the terrorist-related aircraft crashes of September

11, 2001, against any air carrier shall not be in an amount greater

than the limits of the liability coverage maintained by the air

carrier.

(b) FEDERAL CAUSE OF ACTION.— (1) AVAILABILITY OF ACTION.—There shall exist a Federal

cause of action for damages arising out of the hijacking and

49 USC 40101

note.

Deadline.

49 USC 40101

note.

Deadline.

49 USC 40101

note.

PUBLIC LAW 107–42—SEPT. 22, 2001 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.

The United States shall have the right of subrogation with

respect to any claim paid by the United States under this title.

TITLE V—AIR TRANSPORTATION

SAFETY

SEC. 501. INCREASED AIR TRANSPORTATION SAFETY.

Congress affirms the President’s decision to spend

$3,000,000,000 on airline safety and security in conjunction with

this Act in order to restore public confidence in the airline industry.

SEC. 502. CONGRESSIONAL COMMITMENT.

Congress is committed to act expeditiously, in consultation

with the Secretary of Transportation, to strengthen airport security

and take further measures to enhance the security of air travel.

TITLE VI—SEPARABILITY

SEC. 601. SEPARABILITY.

If any provision of this Act (including any amendment made

by this Act) or the application thereof to any person or circumstance

is held invalid, the remainder of this Act (including any amendment

49 USC 40101

note.

49 USC 40101

note.

49 USC 40101

note.

49 USC 40101

note.

115 STAT. 242 PUBLIC LAW 107–42—SEPT. 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.

Æ

made by this Act) and the application thereof to other persons

or circumstances shall not be affected thereby.

Approved September 22, 2001.