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[House Report 107-296]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-296

======================================================================

 
                AVIATION AND TRANSPORTATION SECURITY ACT

                                _______
                                

               November 16, 2001.--Ordered to be printed

                                _______
                                

 Mr. Young of Alaska, from the committee of conference, submitted the 
                               following

                           CONFERENCE REPORT

                         [To accompany S. 1447]

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Aviation and Transportation 
Security Act''.

                       TITLE I--AVIATION SECURITY

SEC. 101. TRANSPORTATION SECURITY ADMINISTRATION.

    (a) In General.--Chapter 1 of title 49, United States Code, 
is amended by adding at the end the following:

``Sec. 114. Transportation Security Administration

    ``(a) In General.--The Transportation Security 
Administration shall be an administration of the Department of 
Transportation.
    ``(b) Under Secretary.--
            ``(1) Appointment.--The head of the Administration 
        shall be the Under Secretary of Transportation for 
        Security. The Under Secretary shall be appointed by the 
        President, by and with the advice and consent of the 
        Senate.
            ``(2) Qualifications.--The Under Secretary must--
                    ``(A) be a citizen of the United States; 
                and
                    ``(B) have experience in a field directly 
                related to transportation or security.
            ``(3) Term.--The term of office of an individual 
        appointed as the Under Secretary shall be 5 years.
    ``(c) Limitation on Ownership of Stocks and Bonds.--The 
Under Secretary may not own stock in or bonds of a 
transportation or security enterprise or an enterprise that 
makes equipment that could be used for security purposes.
    ``(d) Functions.--The Under Secretary shall be responsible 
for security in all modes of transportation, including--
            ``(1) carrying out chapter 449, relating to civil 
        aviation security, and related research and development 
        activities; and
            ``(2) security responsibilities over other modes of 
        transportation that are exercised by the Department of 
        Transportation.
    ``(e) Screening Operations.--The Under Secretary shall--
            ``(1) be responsible for day-to-day Federal 
        security screening operations for passenger air 
        transportation and intrastate air transportation under 
        sections 44901 and 44935;
            ``(2) develop standards for the hiring and 
        retention of security screening personnel;
            ``(3) train and test security screening personnel; 
        and
            ``(4) be responsible for hiring and training 
        personnel to provide security screening at all airports 
        in the United States where screening is required under 
        section 44901, in consultation with the Secretary of 
        Transportation and the heads of other appropriate 
        Federal agencies and departments.
    ``(f) Additional Duties and Powers.--In addition to 
carrying out the functions specified in subsections (d) and 
(e), the Under Secretary shall--
            ``(1) receive, assess, and distribute intelligence 
        information related to transportation security;
            ``(2) assess threats to transportation;
            ``(3) develop policies, strategies, and plans for 
        dealing with threats to transportation security;
            ``(4) make other plans related to transportation 
        security, including coordinating countermeasures with 
        appropriate departments, agencies, and 
        instrumentalities of the United States Government;
            ``(5) serve as the primary liaison for 
        transportation security to the intelligence and law 
        enforcement communities;
            ``(6) on a day-to-day basis, manage and provide 
        operational guidance to the field security resources of 
        the Administration, including Federal Security Managers 
        as provided by section 44933;
            ``(7) enforce security-related regulations and 
        requirements;
            ``(8) identify and undertake research and 
        development activities necessary to enhance 
        transportation security;
            ``(9) inspect, maintain, and test security 
        facilities, equipment, and systems;
            ``(10) ensure the adequacy of security measures for 
        the transportation of cargo;
            ``(11) oversee the implementation, and ensure the 
        adequacy, of security measures at airports and other 
        transportation facilities;
            ``(12) require background checks for airport 
        security screening personnel, individuals with access 
        to secure areas of airports, and other transportation 
        security personnel;
            ``(13) work in conjunction with the Administrator 
        of the Federal Aviation Administration with respect to 
        any actions or activities that may affect aviation 
        safety or air carrier operations;
            ``(14) work with the International Civil Aviation 
        Organization and appropriate aeronautic authorities of 
        foreign governments under section 44907 to address 
        security concerns on passenger flights by foreign air 
        carriers in foreign air transportation; and
            ``(15) carry out such other duties, and exercise 
        such other powers, relating to transportation security 
        as the Under Secretary considers appropriate, to the 
        extent authorized by law.
    ``(g) National Emergency Responsibilities.--
            ``(1) In general.--Subject to the direction and 
        control of the Secretary, the Under Secretary, during a 
        national emergency, shall have the following 
        responsibilities:
                    ``(A) To coordinate domestic 
                transportation, including aviation, rail, and 
                other surface transportation, and maritime 
                transportation (including port security).
                    ``(B) To coordinate and oversee the 
                transportation-related responsibilities of 
                other departments and agencies of the Federal 
                Government other than the Department of Defense 
                and the military departments.
                    ``(C) To coordinate and provide notice to 
                other departments and agencies of the Federal 
                Government, and appropriate agencies of State 
                and local governments, including departments 
                and agencies for transportation, law 
                enforcement, and border control, about threats 
                to transportation.
                    ``(D) To carry out such other duties, and 
                exercise such other powers, relating to 
                transportation during a national emergency as 
                the Secretary shall prescribe.
            ``(2) Authority of other departments and 
        agencies.--The authority of the Under Secretary under 
        this subsection shall not supersede the authority of 
        any other department or agency of the Federal 
        Government under law with respect to transportation or 
        transportation-related matters, whether or not during a 
        national emergency.
            ``(3) Circumstances.--The Secretary shall prescribe 
        the circumstances constituting a national emergency for 
        purposes of this subsection.
    ``(h) Management of Security Information.--In consultation 
with the Transportation Security Oversight Board, the Under 
Secretary shall--
            ``(1) enter into memoranda of understanding with 
        Federal agencies or other entities to share or 
        otherwise cross-check as necessary data on individuals 
        identified on Federal agency databases who may pose a 
        risk to transportation or national security;
            ``(2) establish procedures for notifying the 
        Administrator of the Federal Aviation Administration, 
        appropriate State and local law enforcement officials, 
        and airport or airline security officers of the 
        identity of individuals known to pose, or suspected of 
        posing, a risk of air piracy or terrorism or a threat 
        to airline or passenger safety;
            ``(3) in consultation with other appropriate 
        Federal agencies and air carriers, establish policies 
        and procedures requiring air carriers--
                    ``(A) to use information from government 
                agencies to identify individuals on passenger 
                lists who may be a threat to civil aviation or 
                national security; and
                    ``(B) if such an individual is identified, 
                notify appropriate law enforcement agencies, 
                prevent the individual from boarding an 
                aircraft, or take other appropriate action with 
                respect to that individual; and
            ``(4) consider requiring passenger air carriers to 
        share passenger lists with appropriate Federal agencies 
        for the purpose of identifying individuals who may pose 
        a threat to aviation safety or national security.
    ``(i) View of NTSB.--In taking any action under this 
section that could affect safety, the Under Secretary shall 
give great weight to the timely views of the National 
Transportation Safety Board.
    ``(j) Acquisitions.--
            ``(1) In general.--The Under Secretary is 
        authorized--
                    ``(A) to acquire (by purchase, lease, 
                condemnation, or otherwise) such real property, 
                or any interest therein, within and outside the 
                continental United States, as the Under 
                Secretary considers necessary;
                    ``(B) to acquire (by purchase, lease, 
                condemnation, or otherwise) and to construct, 
                repair, operate, and maintain such personal 
                property (including office space and patents), 
                or any interest therein, within and outside the 
                continental United States, as the Under 
                Secretary considers necessary;
                    ``(C) to lease to others such real and 
                personal property and to provide by contract or 
                otherwise for necessary facilities for the 
                welfare of its employees and to acquire, 
                maintain and operate equipment for these 
                facilities;
                    ``(D) to acquire services, including such 
                personal services as the Secretary determines 
                necessary, and to acquire (by purchase, lease, 
                condemnation, or otherwise) and to construct, 
                repair, operate, and maintain research and 
                testing sites and facilities; and
                    ``(E) in cooperation with the Administrator 
                of the Federal Aviation Administration, to 
                utilize the research and development facilities 
                of the Federal Aviation Administration.
            ``(2) Title.--Title to any property or interest 
        therein acquired pursuant to this subsection shall be 
        held by the Government of the United States.
    ``(k) Transfers of Funds.--The Under Secretary is 
authorized to accept transfers of unobligated balances and 
unexpended balances of funds appropriated to other Federal 
agencies (as such term is defined in section 551(1) of title 5) 
to carry out functions transferred, on or after the date of 
enactment of the Aviation and Transportation Security Act, by 
law to the Under Secretary.
    ``(l) Regulations.--
            ``(1) In general.--The Under Secretary is 
        authorized to issue, rescind, and revise such 
        regulations as are necessary to carry out the functions 
        of the Administration.
            ``(2) Emergency procedures.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law or executive order 
                (including an executive order requiring a cost-
                benefit analysis), if the Under Secretary 
                determines that a regulation or security 
                directive must be issued immediately in order 
                to protect transportation security, the Under 
                Secretary shall issue the regulation or 
                security directive without providing notice or 
                an opportunity for comment and without prior 
                approval of the Secretary.
                    ``(B) Review by transportation security 
                oversight board.--Any regulation or security 
                directive issued under this paragraph shall be 
                subject to review by the Transportation 
                Security Oversight Board established under 
                section 115. Any regulation or security 
                directive issued under this paragraph shall 
                remain effective unless disapproved by the 
                Board or rescinded by the Under Secretary.
            ``(3) Factors to consider.--In determining whether 
        to issue, rescind, or revise a regulation under this 
        section, the Under Secretary shall consider, as a 
        factor in the final determination, whether the costs of 
        the regulation are excessive in relation to the 
        enhancement of security the regulation will provide. 
        The Under Secretary may waive requirements for an 
        analysis that estimates the number of lives that will 
        be saved by the regulation and the monetary value of 
        such lives if the Under Secretary determines that it is 
        not feasible to make such an estimate.
            ``(4) Airworthiness objections by faa.--
                    ``(A) In general.--The Under Secretary 
                shall not take an aviation security action 
                under this title if the Administrator of the 
                Federal Aviation Administration notifies the 
                Under Secretary that the action could adversely 
                affect the airworthiness of an aircraft.
                    ``(B) Review by secretary.--Notwithstanding 
                subparagraph (A), the Under Secretary may take 
                such an action, after receiving a notification 
                concerning the action from the Administrator 
                under subparagraph (A), if the Secretary of 
                Transportation subsequently approves the 
                action.
    ``(m) Personnel and Services; Cooperation by Under 
Secretary.--
            ``(1) Authority of under secretary.--In carrying 
        out the functions of the Administration, the Under 
        Secretary shall have the same authority as is provided 
        to the Administrator of the Federal Aviation 
        Administration under subsections (l) and (m) of section 
        106.
            ``(2) Authority of agency heads.--The head of a 
        Federal agency shall have the same authority to provide 
        services, supplies, equipment, personnel, and 
        facilities to the Under Secretary as the head has to 
        provide services, supplies, equipment, personnel, and 
        facilities to the Administrator of the Federal Aviation 
        Administration under section 106(m).
    ``(n) Personnel Management System.--The personnel 
management system established by the Administrator of the 
Federal Aviation Administration under section 40122 shall apply 
to employees of the Transportation Security Administration, or, 
subject to the requirements of such section, the Under 
Secretary may make such modifications to the personnel 
management system with respect to such employees as the Under 
Secretary considers appropriate, such as adopting aspects of 
other personnel systems of the Department of Transportation.
    ``(o) Acquisition Management System.--The acquisition 
management system established by the Administrator of the 
Federal Aviation Administration under section 40110 shall apply 
to acquisitions of equipment, supplies, and materials by the 
Transportation Security Administration, or, subject to the 
requirements of such section, the Under Secretary may make such 
modifications to the acquisition management system with respect 
to such acquisitions of equipment, supplies, and materials as 
the Under Secretary considers appropriate, such as adopting 
aspects of other acquisition management systems of the 
Department of Transportation.
    ``(p) Authority of Inspector General.--The Transportation 
Security Administration shall be subject to the Inspector 
General Act of 1978 (5 U.S.C. App.) and other laws relating to 
the authority of the Inspector General of the Department of 
Transportation.
    ``(q) Law Enforcement Powers.--
            ``(1) In general.--The Under Secretary may 
        designate an employee of the Transportation Security 
        Administration to serve as a law enforcement officer.
            ``(2) Powers.--While engaged in official duties of 
        the Administration as required to fulfill the 
        responsibilities under this section, a law enforcement 
        officer designated under paragraph (1) may--
                    ``(A) carry a firearm;
                    ``(B) make an arrest without a warrant for 
                any offense against the United States committed 
                in the presence of the officer, or for any 
                felony cognizable under the laws of the United 
                States if the officer has probable cause to 
                believe that the person to be arrested has 
                committed or is committing the felony; and
                    ``(C) seek and execute warrants for arrest 
                or seizure of evidence issued under the 
                authority of the United States upon probable 
                cause that a violation has been committed.
            ``(3) Guidelines on exercise of authority.--The 
        authority provided by this subsection shall be 
        exercised in accordance with guidelines prescribed by 
        the Under Secretary, in consultation with the Attorney 
        General of the United States, and shall include 
        adherence to the Attorney General's policy on use of 
        deadly force.
            ``(4) Revocation or suspension of authority.--The 
        powers authorized by this subsection may be rescinded 
        or suspended should the Attorney General determine that 
        the Under Secretary has not complied with the 
        guidelines prescribed in paragraph (3) and conveys the 
        determination in writing to the Secretary of 
        Transportation and the Under Secretary.
    ``(r) Authority To Exempt.--The Under Secretary may grant 
an exemption from a regulation prescribed in carrying out this 
section if the Under Secretary determines that the exemption is 
in the public interest.''.
    (b) Conforming Amendment.--The analysis for chapter 1 of 
such title is amended by adding at the end the following:

``114. Transportation Security Administration.''.

    (c) Position of Under Secretary in Executive Schedule.--
            (1) In general.--Section 5313 of title 5, United 
        States Code, is amended by adding at the end the 
        following:
            ``The Under Secretary of Transportation for 
        Security.''.
            (2) Bonus eligibility.--In addition to the annual 
        rate of pay authorized by section 5313 of title 5, 
        United States Code, the Under Secretary may receive a 
        bonus for any calendar year not to exceed 30 percent of 
        the annual rate of pay, based on the Secretary's 
        evaluation of the Under Secretary's performance.
            (3) Conforming change.--Section 106(r)(2)(A) of 
        title 49, United States Code, is amended to read as 
        follows:
                    ``(A) In general.--The Chief Operating 
                Officer shall be paid at an annual rate of 
                basic pay to be determined by the 
                Administrator, with the approval of the Air 
                Traffic Services Subcommittee of the Aviation 
                Management Advisory Council. The annual rate 
                may not exceed the annual compensation paid 
                under section 102 of title 3. The Chief 
                Operating Officer shall be subject to the post-
                employment provisions of section 207 of title 
                18 as if the position of Chief Operating 
                Officer were described in section 
                207(c)(2)(A)(i) of that title.''.
    (d) Cooperation With Other Agencies.--The last sentence of 
section 106(m) of such title is amended by striking ``supplies 
and'' and inserting ``supplies, personnel, services, and''.
    (e) Security and Research and Development Activities.--
Section 40119 of such title is amended--
            (1) in subsection (a) by striking ``Administrator 
        of the Federal Aviation Administration'' and inserting 
        ``Under Secretary of Transportation for Security'';
            (2) in subsections (b) and (c) by striking 
        ``Administrator'' each place it appears and inserting 
        ``Under Secretary''; and
            (3) in subsection (b)(1)(C) by striking ``air''.
    (f) References to FAA in Chapter 449.--Chapter 449 of such 
title is amended--
            (1) in section 44904(b)(5) by striking ``the 
        Administration'' and inserting ``the Transportation 
        Security Administration'';
            (2) in the second sentence of section 44913(a)(1) 
        by striking ``of the Administration'' and inserting 
        ``of the Transportation Security Administration'';
            (3) in section 44916(a)--
                    (A) in the first sentence by striking 
                ``Administrator'' and inserting ``Under 
                Secretary of Transportation for Security''; and
                    (B) in the second sentence by striking 
                ``Administration'' and inserting 
                ``Transportation Security Administration'';
            (4) in each of sections 44933(a) and 44934(b) by 
        striking ``Assistant Administrator for Civil Aviation 
        Security'' and inserting ``Under Secretary'';
            (5) in section 44934(b)(1) by striking ``Assistant 
        Administrator'' and inserting ``Under Secretary'';
            (6) by striking sections 44931 and 44932 and the 
        items relating to such sections in the analysis for 
        such chapter;
            (7) by striking ``Administrator'' each place it 
        appears in such chapter (except in subsections (f) and 
        (h) of section 44936) and inserting ``Under 
        Secretary'';
            (8) by striking ``Administrator's'' each place it 
        appears in such chapter and inserting ``Under 
        Secretary's''; and
            (9) by striking ``of the Federal Aviation 
        Administration'' each place it appears in such chapter 
        (except in section 44936(f)) and inserting ``of 
        Transportation for Security''.
    (g) Transition Provisions.--
            (1) Schedule for assumption of civil aviation 
        security functions.--Not later than 3 months after the 
        date of enactment of this Act, the Under Secretary of 
        Transportation for Security shall assume civil aviation 
        security functions and responsibilities under chapter 
        449 of title 49, United States Code, as amended by this 
        Act, in accordance with a schedule to be developed by 
        the Secretary of Transportation, in consultation with 
        air carriers, foreign air carriers, and the 
        Administrator of the Federal Aviation Administration. 
        The Under Secretary shall publish an appropriate notice 
        of the transfer of such security functions and 
        responsibilities before assuming the functions and 
        responsibilities.
            (2) Assumption of contracts.--As of the date 
        specified in paragraph (1), the Under Secretary may 
        assume the rights and responsibilities of an air 
        carrier or foreign air carrier contract for provision 
        of passenger screening services at airports in the 
        United States described in section 44903(c), subject to 
        payment of adequate compensation to parties to the 
        contract, if any.
            (3) Assignment of contracts.--
                    (A) In general.--Upon request of the Under 
                Secretary, an air carrier or foreign air 
                carrier carrying out a screening or security 
                function under chapter 449 of title 49, United 
                States Code, may enter into an agreement with 
                the Under Secretary to transfer any contract 
                the carrier has entered into with respect to 
                carrying out the function, before the Under 
                Secretary assumes responsibility for the 
                function.
                    (B) Schedule.--The Under Secretary may 
                enter into an agreement under subparagraph (A) 
                as soon as possible, but not later than 90 days 
                after the date of enactment of this Act. The 
                Under Secretary may enter into such an 
                agreement for one 180-day period and may extend 
                such agreement for one 90-day period if the 
                Under Secretary determines it necessary.
            (4) Transfer of ownership.--In recognition of the 
        assumption of the financial costs of security screening 
        of passengers and property at airports, and as soon as 
        practical after the date of enactment of this Act, air 
        carriers may enter into agreements with the Under 
        Secretary to transfer the ownership, at no cost to the 
        United States Government, of any personal property, 
        equipment, supplies, or other material associated with 
        such screening, regardless of the source of funds used 
        to acquire the property, that the Secretary determines 
        to be useful for the performance of security screening 
        of passengers and property at airports.
            (5) Performance of under secretary's functions 
        during interim period.--Until the Under Secretary takes 
        office, the functions of the Under Secretary that 
        relate to aviation security may be carried out by the 
        Secretary or the Secretary's designee.

SEC. 102. TRANSPORTATION SECURITY OVERSIGHT BOARD.

    (a) In General.--Chapter 1 of title 49, United States Code, 
is amended by adding at the end the following:

``Sec. 115. Transportation Security Oversight Board

    ``(a) In General.--There is established in the Department 
of Transportation a board to be known as the `Transportation 
Security Oversight Board'.
    ``(b) Membership.--
            ``(1) Number and appointment.--The Board shall be 
        composed of 7 members as follows:
                    ``(A) The Secretary of Transportation, or 
                the Secretary's designee.
                    ``(B) The Attorney General, or the Attorney 
                General's designee.
                    ``(C) The Secretary of Defense, or the 
                Secretary's designee.
                    ``(D) The Secretary of the Treasury, or the 
                Secretary's designee.
                    ``(E) The Director of the Central 
                Intelligence Agency, or the Director's 
                designee.
                    ``(F) One member appointed by the President 
                to represent the National Security Council.
                    ``(G) One member appointed by the President 
                to represent the Office of Homeland Security.
            ``(2) Chairperson.--The Chairperson of the Board 
        shall be the Secretary of Transportation.
    ``(c) Duties.--The Board shall--
            ``(1) review and ratify or disapprove any 
        regulation or security directive issued by the Under 
        Secretary of Transportation for security under section 
        114(l)(2) within 30 days after the date of issuance of 
        such regulation or directive;
            ``(2) facilitate the coordination of intelligence, 
        security, and law enforcement activities affecting 
        transportation;
            ``(3) facilitate the sharing of intelligence, 
        security, and law enforcement information affecting 
        transportation among Federal agencies and with carriers 
        and other transportation providers as appropriate;
            ``(4) explore the technical feasibility of 
        developing a common database of individuals who may 
        pose a threat to transportation or national security;
            ``(5) review plans for transportation security;
            ``(6) make recommendations to the Under Secretary 
        regarding matters reviewed under paragraph (5).
    ``(d) Quarterly Meetings.--The Board shall meet at least 
quarterly.
    ``(e) Consideration of Security Information.--A majority of 
the Board may vote to close a meeting of the Board to the 
public, except that meetings shall be closed to the public 
whenever classified, sensitive security information, or 
information protected in accordance with section 40119(b), will 
be discussed.''.
    (b) Policies and Procedures.--Section 44911(b) of such 
title is amended by striking ``international''.
    (c) Strategic Planning.--Section 44911(c) of such title is 
amended by striking ``consider placing'' and inserting 
``place''.
    (d) Conforming Amendment.--The analysis for chapter 1 of 
such title is amended by adding at the end the following:
``115. Transportation Security Oversight Board.''.

SEC. 103. FEDERAL SECURITY MANAGERS.

    Section 44933 of title 49, United States Code, is amended 
to read as follows:

``Sec. 44933. Federal Security Managers

    ``(a) Establishment, Designation, and Stationing.--The 
Under Secretary of Transportation for Security shall establish 
the position of Federal Security Manager at each airport in the 
United States described in section 44903(c). The Under 
Secretary shall designate individuals as Managers for, and 
station those Managers at, those airports.
    ``(b) Duties and Powers.--The Manager at each airport 
shall--
            ``(1) oversee the screening of passengers and 
        property at the airport; and
            ``(2) carry out other duties prescribed by the 
        Under Secretary.''.

SEC. 104. IMPROVED FLIGHT DECK INTEGRITY MEASURES.

    (a) In General.--As soon as possible after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration shall--
            (1) issue an order (without regard to the 
        provisions of chapter 5 of title 5, United States 
        Code)--
                    (A) prohibiting access to the flight deck 
                of aircraft engaged in passenger air 
                transportation or intrastate air transportation 
                that are required to have a door between the 
                passenger and pilot compartments under title 
                14, Code of Federal Regulations, except to 
                authorized persons;
                    (B) requiring the strengthening of the 
                flight deck door and locks on any such aircraft 
                operating in air transportation or intrastate 
                air transportation that has a rigid door in a 
                bulkhead between the flight deck and the 
                passenger area to ensure that the door cannot 
                be forced open from the passenger compartment;
                    (C) requiring that such flight deck doors 
                remain locked while any such aircraft is in 
                flight except when necessary to permit access 
                and egress by authorized persons; and
                    (D) prohibiting the possession of a key to 
                any such flight deck door by any member of the 
                flight crew who is not assigned to the flight 
                deck; and
            (2) take such other action, including modification 
        of safety and security procedures and flight deck 
        redesign, as may be necessary to ensure the safety and 
        security of the aircraft.
    (b) Implementation of Other Methods.--As soon as possible 
after such date of enactment, the Administrator of the Federal 
Aviation Administration may develop and implement methods--
            (1) to use video monitors or other devices to alert 
        pilots in the flight deck to activity in the cabin, 
        except that the use of such monitors or devices shall 
        be subject to nondisclosure requirements applicable to 
        cockpit video recordings under section 1114(c);
            (2) to ensure continuous operation of an aircraft 
        transponder in the event of an emergency; and
            (3) to revise the procedures by which cabin crews 
        of aircraft can notify flight deck crews of security 
        breaches and other emergencies, including providing for 
        the installation of switches or other devices or 
        methods in an aircraft cabin to enable flight crews to 
        discreetly notify the pilots in the case of a security 
        breach occurring in the cabin.
    (c) Commuter Aircraft.--The Administrator shall investigate 
means of securing the flight deck of scheduled passenger 
aircraft operating in air transportation or intrastate air 
transportation that do not have a rigid fixed door with a lock 
between the passenger compartment and the flight deck and issue 
such an order as the Administrator deems appropriate to ensure 
the inaccessibility, to the greatest extent feasible, of the 
flight deck while the aircraft is so operating, taking into 
consideration such aircraft operating in regions where there is 
minimal threat to aviation security or national security.

SEC. 105. DEPLOYMENT OF FEDERAL AIR MARSHALS.

    (a) In General.--Subchapter I of chapter 449 of title 49, 
United States Code, is amended by adding at the end the 
following:

``Sec. 44917. Deployment of Federal air marshals

    ``(a) In General.--The Under Secretary of Transportation 
for Security under the authority provided by section 44903(d)--
            ``(1) may provide for deployment of Federal air 
        marshals on every passenger flight of air carriers in 
        air transportation or intrastate air transportation;
            ``(2) shall provide for deployment of Federal air 
        marshals on every such flight determined by the 
        Secretary to present high security risks;
            ``(3) shall provide for appropriate training, 
        supervision, and equipment of Federal air marshals;
            ``(4) shall require air carriers providing flights 
        described in paragraph (1) to provide seating for a 
        Federal air marshal on any such flight without regard 
        to the availability of seats on the flight and at no 
        cost to the United States Government or the marshal;
            ``(5) may require air carriers to provide, on a 
        space-available basis, to an off-duty Federal air 
        marshal a seat on a flight to the airport nearest the 
        marshal's home at no cost to the marshal or the United 
        States Government if the marshal is traveling to that 
        airport after completing his or her security duties;
            ``(6) may enter into agreements with Federal, 
        State, and local agencies under which appropriately-
        trained law enforcement personnel from such agencies, 
        when traveling on a flight of an air carrier, will 
        carry a firearm and be prepared to assist Federal air 
        marshals;
            ``(7) shall establish procedures to ensure that 
        Federal air marshals are made aware of any armed or 
        unarmed law enforcement personnel on board an aircraft; 
        and
            ``(8) may appoint--
                    ``(A) an individual who is a retired law 
                enforcement officer;
                    ``(B) an individual who is a retired member 
                of the Armed Forces; and
                    ``(C) an individual who has been furloughed 
                from an air carrier crew position in the 1-year 
                period beginning on September 11, 2001;
        as a Federal air marshal, regardless of age, if the 
        individual otherwise meets the background and fitness 
        qualifications required for Federal air marshals.
    ``(b) Long Distance Flights.--In making the determination 
under subsection (a)(2), nonstop, long distance flights, such 
as those targeted on September 11, 2001, should be a priority.
    ``(c) Interim Measures.--Until the Under Secretary 
completes implementation of subsection (a), the Under Secretary 
may use, after consultation with and concurrence of the heads 
of other Federal agencies and departments, personnel from those 
agencies and departments, on a nonreimbursable basis, to 
provide air marshal service.''.
    (b) Conforming Amendment.--The analysis for chapter 449 of 
such title is amended by adding after the item relating to 
section 44916 the following:

``44917. Deployment of Federal air marshals.''.

    (c) Basic Pay Defined.--Section 8331(3)(E) of title 5, 
United States Code, is amended to read as follows:
                    ``(E) availability pay--
                            ``(i) received by a criminal 
                        investigator under section 5545a of 
                        this title; or
                            ``(ii) received after September 11, 
                        2001, by a Federal air marshal of the 
                        Department of Transportation, subject 
                        to all restrictions and earning 
                        limitations imposed on criminal 
                        investigators under section 5545a;''.

SEC. 106. IMPROVED AIRPORT PERIMETER ACCESS SECURITY.

    (a) In General.--Section 44903 of title 49, United States 
Code, is amended by adding at the end the following:
    ``(h) Improved Airport Perimeter Access Security.--
            ``(1) In general.--The Under Secretary, in 
        consultation with the airport operator and law 
        enforcement authorities, may order the deployment of 
        such personnel at any secure area of the airport as 
        necessary to counter the risk of criminal violence, the 
        risk of aircraft piracy at the airport, the risk to air 
        carrier aircraft operations at the airport, or to meet 
        national security concerns.
            ``(2) Security of aircraft and ground access to 
        secure areas.--In determining where to deploy such 
        personnel, the Under Secretary shall consider the 
        physical security needs of air traffic control 
        facilities, parked aircraft, aircraft servicing 
        equipment, aircraft supplies (including fuel), 
        automobile parking facilities within airport perimeters 
        or adjacent to secured facilities, and access and 
        transition areas at airports served by other means of 
        ground or water transportation.
            ``(3) Deployment of federal law enforcement 
        personnel.--The Secretary may enter into a memorandum 
        of understanding or other agreement with the Attorney 
        General or the head of any other appropriate Federal 
        law enforcement agency to deploy Federal law 
        enforcement personnel at an airport in order to meet 
        aviation safety and security concerns.
            ``(4) Airport perimeter screening.--The Under 
        Secretary--
                    ``(A) shall require, as soon as practicable 
                after the date of enactment of this subsection, 
                screening or inspection of all individuals, 
                goods, property, vehicles, and other equipment 
                before entry into a secured area of an airport 
                in the United States described in section 
                44903(c);
                    ``(B) shall prescribe specific requirements 
                for such screening and inspection that will 
                assure at least the same level of protection as 
                will result from screening of passengers and 
                their baggage;
                    ``(C) shall establish procedures to ensure 
                the safety and integrity of--
                            ``(i) all persons providing 
                        services with respect to aircraft 
                        providing passenger air transportation 
                        or intrastate air transportation and 
                        facilities of such persons at an 
                        airport in the United States described 
                        in section 44903(c);
                            ``(ii) all supplies, including 
                        catering and passenger amenities, 
                        placed aboard such aircraft, including 
                        the sealing of supplies to ensure easy 
                        visual detection of tampering; and
                            ``(iii) all persons providing such 
                        supplies and facilities of such 
                        persons;
                    ``(D) shall require vendors having direct 
                access to the airfield and aircraft to develop 
                security programs; and
                    ``(E) may provide for the use of biometric 
                or other technology that positively verifies 
                the identity of each employee and law 
                enforcement officer who enters a secure area of 
                an airport.''.
    (b) Small and Medium Airports.--
            (1) Technical support and financial assistance.--
        The Under Secretary of Transportation for Security 
        shall develop a plan to--
                    (A) provide technical support to airports, 
                each of which had less than 1 percent of the 
                total annual enplanements in the United States 
                for the most recent calendar year for which 
                data is available, to enhance security 
                operations; and
                    (B) provide financial assistance to those 
                airports to defray the costs of enhancing 
                security.
            (2) Removal of certain restrictions.--
                    (A) Certification by operator.--If the 
                operator of an airport described in paragraph 
                (1), after consultation with the appropriate 
                State and local law enforcement authorities, 
                determines that safeguards are in place to 
                sufficiently protect public safety, and so 
                certifies in writing to the Under Secretary, 
                then any security rule, order, or other 
                directive restricting the parking of passenger 
                vehicles shall not apply at that airport after 
                the applicable time period specified in 
                subparagraph (B), unless the Under Secretary, 
                taking into account individual airport 
                circumstances, notifies the airport operator 
                that the safeguards in place do not adequately 
                respond to specific security risks and that the 
                restriction must be continued in order to 
                ensure public safety.
                    (B) Countermand period.--The time period 
                within which the Secretary may notify an 
                airport operator, after receiving a 
                certification under subparagraph (A), that a 
                restriction must be continued in order to 
                ensure public safety at the airport is--
                            (i) 15 days for a nonhub airport 
                        (as defined in section 41714(h) of 
                        title 49, United States Code);
                            (ii) 30 days for a small hub 
                        airport (as defined in such section);
                            (iii) 60 days for a medium hub 
                        airport (as defined in such section); 
                        and
                            (iv) 120 days for an airport that 
                        had at least 1 percent of the total 
                        annual enplanements in the United 
                        States for the most recent calendar 
                        year for which data is available.
    (c) Improvement of Secured-Area Access Control.--Section 
44903(g)(2) of title 49, United States Code, is amended--
            (1) by striking ``weaknesses by January 31, 2001;'' 
        in subparagraph (A) and inserting ``weaknesses;'';
            (2) by striking subparagraph (D) and inserting the 
        following:
                    ``(D) on an ongoing basis, assess and test 
                for compliance with access control 
                requirements, report annually findings of the 
                assessments, and assess the effectiveness of 
                penalties in ensuring compliance with security 
                procedures and take any other appropriate 
                enforcement actions when noncompliance is 
                found;'';
            (3) by striking ``program by January 31, 2001;'' in 
        subparagraph (F) and inserting ``program;''; and
            (4) by striking subparagraph (G) and inserting the 
        following:
                    ``(G) work with airport operators to 
                strengthen access control points in secured 
                areas (including air traffic control operations 
                areas, maintenance areas, crew lounges, baggage 
                handling areas, concessions, and catering 
                delivery areas) to ensure the security of 
                passengers and aircraft and consider the 
                deployment of biometric or similar technologies 
                that identify individuals based on unique 
                personal characteristics.''.
    (d) Airport Security Pilot Program.--Section 44903(c) of 
title 49, United States Code, is amended by adding at the end 
the following:
            ``(3) Pilot programs.--The Administrator shall 
        establish pilot programs in no fewer than 20 airports 
        to test and evaluate new and emerging technology for 
        providing access control and other security protections 
        for closed or secure areas of the airports. Such 
        technology may include biometric or other technology 
        that ensures only authorized access to secure areas.''.
    (e) Airport Security Awareness Programs.--The Under 
Secretary of Transportation for Security shall require 
scheduled passenger air carriers, and airports in the United 
States described in section 44903(c) to develop security 
awareness programs for airport employees, ground crews, gate, 
ticket, and curbside agents of the air carriers, and other 
individuals employed at such airports.

SEC. 107. CREW TRAINING.

    (a) In General.--Subchapter I of chapter 449 of title 49, 
United States Code, is amended by adding at the end the 
following:

``Sec. 44918. Crew training

    ``(a) In General.--Not later than 60 days after the date of 
enactment of the Aviation and Transportation Security Act, the 
Administrator of the Federal Aviation Administration, in 
consultation with the Under Secretary of Transportation for 
Security, appropriate law enforcement, security, and terrorism 
experts, representatives of air carriers and labor 
organizations representing individuals employed in commercial 
aviation, shall develop detailed guidance for a scheduled 
passenger air carrier flight and cabin crew training program to 
prepare crew members for potential threat conditions.
    ``(b) Program Elements.--The guidance shall require such a 
program to include, at a minimum, elements that address the 
following:
            ``(1) Determination of the seriousness of any 
        occurrence.
            ``(2) Crew communication and coordination.
            ``(3) Appropriate responses to defend oneself.
            ``(4) Use of protective devices assigned to crew 
        members (to the extent such devices are required by the 
        Administrator or Under Secretary).
            ``(5) Psychology of terrorists to cope with 
        hijacker behavior and passenger responses.
            ``(6) Live situational training exercises regarding 
        various threat conditions.
            ``(7) Flight deck procedures or aircraft maneuvers 
        to defend the aircraft.
            ``(8) Any other subject matter deemed appropriate 
        by the Administrator.
    ``(c) Air Carrier Programs.--Within 60 days after the 
Administrator issues the guidance under subsection (a) in final 
form, each air carrier shall develop a flight and cabin crew 
training program in accordance with that guidance and submit it 
to the Administrator for approval. Within 30 days after 
receiving an air carrier's program under this subsection, the 
Administrator shall review the program and approve it or 
require the air carrier to make any revisions deemed necessary 
by the Administrator for the program to meet the guidance 
requirements.
    ``(d) Training.--Within 180 days after the Administrator 
approves the training program developed by an air carrier under 
this section, the air carrier shall complete the training of 
all flight and cabin crews in accordance with that program.
    ``(e) Updates.--The Administrator shall update the training 
guidance issued under subsection (a) from time to time to 
reflect new or different security threats and require air 
carriers to revise their programs accordingly and provide 
additional training to their flight and cabin crews.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 
449 of title 49, United States Code, is amended by inserting 
after the item relating to section 44917 the following:

``44918. Crew training.''.

SEC. 108. SECURITY SCREENING BY PRIVATE COMPANIES.

    (a) In General.--Subchapter I of chapter 449 of title 49, 
United States Code, is amended by adding at the end the 
following:

``Sec. 44919. Security screening pilot program

    ``(a) Establishment of Program.--The Under Secretary shall 
establish a pilot program under which, upon approval of an 
application submitted by an operator of an airport, the 
screening of passengers and property at the airport under 
section 44901 will be carried out by the screening personnel of 
a qualified private screening company under a contract entered 
into with the Under Secretary.
    ``(b) Period of Pilot Program.--The pilot program under 
this section shall begin on the last day of the 1-year period 
beginning on the date of enactment of this section and end on 
the last day of the 3-year period beginning on such date of 
enactment.
    ``(c) Applications.--An operator of an airport may submit 
to the Under Secretary an application to participate in the 
pilot program under this section.
    ``(d) Selection of Airports.--From among applications 
submitted under subsection (c), the Under Secretary may select 
for participation in the pilot program not more than 1 airport 
from each of the 5 airport security risk categories, as defined 
by the Under Secretary.
    ``(e) Supervision of Screened Personnel.--The Under 
Secretary shall provide Federal Government supervisors to 
oversee all screening at each airport participating in the 
pilot program under this section and provide Federal Government 
law enforcement officers at the airport pursuant to this 
chapter.
    ``(f) Qualified Private Screening Company.--A private 
screening company is qualified to provide screening services at 
an airport participating in the pilot program under this 
section if the company will only employ individuals to provide 
such services who meet all the requirements of this chapter 
applicable to Federal Government personnel who perform 
screening services at airports under this chapter and will 
provide compensation and other benefits to such individuals 
that are not less than the level of compensation and other 
benefits provided to such Federal Government personnel in 
accordance with this chapter.
    ``(g) Standards for Private Screening Companies.--The Under 
Secretary may enter into a contract with a private screening 
company to provide screening at an airport participating in the 
pilot program under this section only if the Under Secretary 
determines and certifies to Congress that the private screening 
company is owned and controlled by a citizen of the United 
States, to the extent that the Under Secretary determines that 
there are private screening companies owned and controlled by 
such citizens.
    ``(h) Termination of Contracts.--The Under Secretary may 
terminate any contract entered into with a private screening 
company to provide screening services at an airport under the 
pilot program if the Under Secretary finds that the company has 
failed repeatedly to comply with any standard, regulation, 
directive, order, law, or contract applicable to the hiring or 
training of personnel to provide such services or to the 
provision of screening at the airport.
    ``(i) Election.--If a contract is in effect with respect to 
screening at an airport under the pilot program on the last day 
of the 3-year period beginning on the date of enactment of this 
section, the operator of the airport may elect to continue to 
have such screening carried out by the screening personnel of a 
qualified private screening company under a contract entered 
into with the Under Secretary under section 44920 or by Federal 
Government personnel in accordance with this chapter.

``Sec. 44920. Security screening opt-out program

    ``(a) In General.--On or after the last day of the 2-year 
period beginning on the date on which the Under Secretary 
transmits to Congress the certification required by section 
110(c) of the Aviation and Transportation Security Act, an 
operator of an airport may submit to the Under Secretary an 
application to have the screening of passengers and property at 
the airport under section 44901 to be carried out by the 
screening personnel of a qualified private screening company 
under a contract entered into with the Under Secretary.
    ``(b) Approval of Applications.--The Under Secretary may 
approve any application submitted under subsection (a).
    ``(c) Qualified Private Screening Company.--A private 
screening company is qualified to provide screening services at 
an airport under this section if the company will only employ 
individuals to provide such services who meet all the 
requirements of this chapter applicable to Federal Government 
personnel who perform screening services at airports under this 
chapter and will provide compensation and other benefits to 
such individuals that are not less than the level of 
compensation and other benefits provided to such Federal 
Government personnel in accordance with this chapter.
    ``(d) Standards for Private Screening Companies.--The Under 
Secretary may enter into a contract with a private screening 
company to provide screening at an airport under this section 
only if the Under Secretary determines and certifies to 
Congress that--
            ``(1) the level of screening services and 
        protection provided at the airport under the contract 
        will be equal to or greater than the level that would 
        be provided at the airport by Federal Government 
        personnel under this chapter; and
            ``(2) the private screening company is owned and 
        controlled by a citizen of the United States, to the 
        extent that the Under Secretary determines that there 
        are private screening companies owned and controlled by 
        such citizens.
    ``(e) Supervision of Screened Personnel.--The Under 
Secretary shall provide Federal Government supervisors to 
oversee all screening at each airport at which screening 
services are provided under this section and provide Federal 
Government law enforcement officers at the airport pursuant to 
this chapter.
    ``(g) Termination of Contracts.--The Under Secretary may 
terminate any contract entered into with a private screening 
company to provide screening services at an airport under this 
section the pilot program if the Under Secretary finds that the 
company has failed repeatedly to comply with any standard, 
regulation, directive, order, law, or contract applicable to 
the hiring or training of personnel to provide such services or 
to the provision of screening at the airport.
    (b) Clerical Amendment.--The analysis for such subchapter 
is amended by adding after the item relating to section 44918 
the following:

``44919. Security screening pilot program.
``44920. Security screening opt-out program.''.

SEC. 109. ENHANCED SECURITY MEASURES.

    (a) In General.--The Under Secretary of Transportation for 
Security may take the following actions:
            (1) Require effective 911 emergency call capability 
        for telephones serving passenger aircraft and passenger 
        trains.
            (2) Establish a uniform system of identification 
        for all State and local law enforcement personnel for 
        use in obtaining permission to carry weapons in 
        aircraft cabins and in obtaining access to a secured 
        area of an airport, if otherwise authorized to carry 
        such weapons.
            (3) Establish requirements to implement trusted 
        passenger programs and use available technologies to 
        expedite the security screening of passengers who 
        participate in such programs, thereby allowing security 
        screening personnel to focus on those passengers who 
        should be subject to more extensive screening.
            (4) In consultation with the Commissioner of the 
        Food and Drug Administration, develop alternative 
        security procedures under which a medical product to be 
        transported on a flight of an air carrier would not be 
        subject to an inspection that would irreversibly damage 
        the product.
            (5) Provide for the use of technologies, including 
        wireless and wire line data technologies, to enable the 
        private and secure communication of threats to aid in 
        the screening of passengers and other individuals on 
        airport property who are identified on any State or 
        Federal security-related data base for the purpose of 
        having an integrated response coordination of various 
        authorized airport security forces.
            (6) In consultation with the Administrator of the 
        Federal Aviation Administration, consider whether to 
        require all pilot licenses to incorporate a photograph 
        of the license holder and appropriate biometric 
        imprints.
            (7) Provide for the use of voice stress analysis, 
        biometric, or other technologies to prevent a person 
        who might pose a danger to air safety or security from 
        boarding the aircraft of an air carrier or foreign air 
        carrier in air transportation or intrastate air 
        transportation.
            (8) Provide for the use of technology that will 
        permit enhanced instant communications and information 
        between airborne passenger aircraft and appropriate 
        individuals or facilities on the ground.
    (b) Report.--Not later than 6 months after the date of 
enactment of this Act, and annually thereafter until the Under 
Secretary has implemented or decided not to take each of the 
actions specified in subsection (a), the Under Secretary shall 
transmit to Congress a report on the progress of the Under 
Secretary in evaluating and taking such actions, including any 
legislative recommendations that the Under Secretary may have 
for enhancing transportation security.''.

SEC. 110. SCREENING.

    (a) Review and Development of Ways To Strengthen 
Security.--Section 44932(c) of title 49, United States Code, is 
amended--
            (1) by striking ``x-ray'' in paragraph (4);
            (2) by striking ``and'' at the end of paragraph 
        (4);
            (3) by striking ``passengers.'' in paragraph (5) 
        and inserting ``passengers;''; and
            (4) by adding at the end the following:
            ``(6) to strengthen and enhance the ability to 
        detect or neutralize nonexplosive weapons, such as 
        biological, chemical, or similar substances; and
            ``(7) to evaluate such additional measures as may 
        be appropriate to enhance inspection of passengers, 
        baggage, and cargo.''.
    (b) Passengers and Property.--Section 44901 of title 49, 
United States Code, is amended--
            (1) by redesignating subsection (c) as subsection 
        (h); and
            (2) by striking subsections (a) and (b) and 
        inserting the following:
    ``(a) In General.--The Under Secretary of Transportation 
for Security shall provide for the screening of all passengers 
and property, including United States mail, cargo, carry-on and 
checked baggage, and other articles, that will be carried 
aboard a passenger aircraft operated by an air carrier or 
foreign air carrier in air transportation or intrastate air 
transportation. In the case of flights and flight segments 
originating in the United States, the screening shall take 
place before boarding and shall be carried out by a Federal 
Government employee (as defined in section 2105 of title 5, 
United States Code), except as otherwise provided in section 
44919 or 44920 and except for identifying passengers and 
baggage for screening under the CAPPS and known shipper 
programs and conducting positive bag-match programs.
    ``(b) Supervision of Screening.--All screening of 
passengers and property at airports in the United States where 
screening is required under this section shall be supervised by 
uniformed Federal personnel of the Transportation Security 
Administration who shall have the power to order the dismissal 
of any individual performing such screening.
    ``(c) Checked Baggage.--A system must be in operation to 
screen all checked baggage at all airports in the United States 
as soon as practicable but not later than the 60th day 
following the date of enactment of the Aviation and 
Transportation Security Act.
    ``(d) Explosive Detection Systems.--
    ``(1) In general.--The Under Secretary of Transportation 
for Security shall take all necessary action to ensure that--
                    ``(A) explosive detection systems are 
                deployed as soon as possible to ensure that all 
                United States airports described in section 
                44903(c) have sufficient explosive detection 
                systems to screen all checked baggage no later 
                than December 31, 2002, and that as soon as 
                such systems are in place at an airport, all 
                checked baggage at the airport is screened by 
                those systems; and
                    ``(B) all systems deployed under 
                subparagraph (A) are fully utilized; and
                    ``(C) if explosive detection equipment at 
                an airport is unavailable, all checked baggage 
                is screened by an alternative means.
    ``(e) Mandatory Screening Where EDS Not Yet Available.--As 
soon as practicable but not later than the 60th day following 
the date of enactment of the Aviation and Transportation 
Security Act and until the requirements of subsection (b)(1)(A) 
are met, the Under Secretary shall require alternative means 
for screening any piece of checked baggage that is not screened 
by an explosive detection system. Such alternative means may 
include 1 or more of the following:
            ``(1) A bag-match program that ensures that no 
        checked baggage is placed aboard an aircraft unless the 
        passenger who checked the baggage is aboard the 
        aircraft.
            ``(2) Manual search.
            ``(3) Search by canine explosive detection units in 
        combination with other means.
            ``(4) Other means or technology approved by the 
        Under Secretary.
    ``(f) Cargo Deadline.--A system must be in operation to 
screen, inspect, or otherwise ensure the security of all cargo 
that is to be transported in all-cargo aircraft in air 
transportation and intrastate air transportation as soon as 
practicable after the date of enactment of the Aviation and 
Transportation Security Act.
    ``(g) Deployment of Armed Personnel.--
            ``(1) In general.--The Under Secretary shall order 
        the deployment of law enforcement personnel authorized 
        to carry firearms at each airport security screening 
        location to ensure passenger safety and national 
        security.
            ``(2) Minimum requirements.--Except at airports 
        required to enter into agreements under subsection (c), 
        the Under Secretary shall order the deployment of at 
        least 1 law enforcement officer at each airport 
        security screening location. At the 100 largest 
        airports in the United States, in terms of annual 
        passenger enplanements for the most recent calendar 
        year for which data are available, the Under Secretary 
        shall order the deployment of additional law 
        enforcement personnel at airport security screening 
        locations if the Under Secretary determines that the 
        additional deployment is necessary to ensure passenger 
        safety and national security.''.
    (c) Deadline for Deployment of Federal Screeners.--
            (1) In general.--Not later than 1 year after the 
        date of enactment of this Act, the Under Secretary of 
        Transportation for Security shall deploy at all 
        airports in the United States where screening is 
        required under section 44901 of title 49, United States 
        Code, a sufficient number of Federal screeners, Federal 
        Security Managers, Federal security personnel, and 
        Federal law enforcement officers to conduct the 
        screening of all passengers and property under section 
        44901 of such title at such airports.
            (2) Certification to congress.--Not later than 1 
        year after the date of enactment of this Act, the Under 
        Secretary shall transmit to Congress a certification 
        that the requirement of paragraph (1) has been met.
    (d) Reports.--
            (1) Deployment.--Within 6 months after the date of 
        enactment of this Act, the Under Secretary of 
        Transportation for Security shall report to 
the Committee on Commerce, Science, and Transportation of the Senate and 
to the Committee on Transportation and Infrastructure of the House of 
Representatives on the deployment of the systems required by section 
44901(c) of title 49, United States Code. The Under Secretary shall 
include in the report--
                    (A) an installation schedule;
                    (B) the dates of installation of each 
                system; and
                    (C) the date on which each system installed 
                is operational.
            (2) Screening of small aircraft.--Within 1 year 
        after the date of enactment of this Act, the Under 
        Secretary of Transportation for Security shall transmit 
        a report to the Committee on Commerce, Science, and 
        Transportation of the Senate and Committee on 
        Transportation and Infrastructure of the House of 
        Representatives on the screening requirements 
        applicable to passengers boarding, and property being 
        carried aboard, aircraft with 60 seats or less used in 
        scheduled passenger service with recommendations for 
        any necessary changes in those requirements.

SEC. 111. TRAINING AND EMPLOYMENT OF SECURITY SCREENING PERSONNEL.

    (a) In General.--Section 44935 of title 49, United States 
Code, is amended--
            (1) by redesignating subsection (f) as subsection 
        (i); and
            (2) by striking subsection (e) and inserting the 
        following:
    ``(e) Security Screeners.--
            ``(1) Training program.--The Under Secretary of 
        Transportation for Security shall establish a program 
        for the hiring and training of security screening 
        personnel.
            ``(2) Hiring.--
                    ``(A) Qualifications.--Within 30 days after 
                the date of enactment of the aviation 
                Transportation Security Act, the Under 
                Secretary shall establish qualification 
                standards for individuals to be hired by the 
                United States as security screening personnel. 
                Notwithstanding any provision of law, those 
                standards shall require, at a minimum, an 
                individual--
                            ``(i) to have a satisfactory or 
                        better score on a Federal security 
                        screening personnel selection 
                        examination;
                            ``(ii) to be a citizen of the 
                        United States;
                            ``(iii) to meet, at a minimum, the 
                        requirements set forth in subsection 
                        (f);
                            ``(iv) to meet such other 
                        qualifications as the Under Secretary 
                        may establish; and
                            ``(v) to have the ability to 
                        demonstrate daily a fitness for duty 
                        without any impairment due to illegal 
                        drugs, sleep deprivation, medication, 
                        or alcohol.
                    ``(B) Background checks.--The Under 
                Secretary shall require that an individual to 
                be hired as a security screener undergo an 
                employment investigation (including a criminal 
                history record check) under section 
                44936(a)(1).
                    ``(C) Disqualification of individuals who 
                present national security risks.--The Under 
                Secretary, in consultation with the heads of 
                other appropriate Federal agencies, shall 
                establish procedures, in addition to any 
                background check conducted under section 44936, 
                to ensure that no individual who presents a 
                threat to national security is employed as a 
                security screener.
            ``(3) Examination; review of existing rules.--The 
        Under Secretary shall develop a security screening 
        personnel examination for use in determining the 
        qualification of individuals seeking employment as 
        security screening personnel. The Under Secretary shall 
        also review, and revise as necessary, any standard, 
        rule, or regulation governing the employment of 
        individuals as security screening personnel.
    ``(f) Employment Standards for Screening Personnel.--
            ``(1) Screener requirements.--Notwithstanding any 
        provision of law, an individual may not be deployed as 
        a security screener unless that individual meets the 
        following requirements:
                    ``(A) The individual shall possess a high 
                school diploma, a general equivalency diploma, 
                or experience that the Under Secretary has 
                determined to be sufficient for the individual 
                to perform the duties of the position.
                    ``(B) The individual shall possess basic 
                aptitudes and physical abilities, including 
                color perception, visual and aural acuity, 
                physical coordination, and motor skills, to the 
                following standards:
                            ``(i) Screeners operating screening 
                        equipment shall be able to distinguish 
                        on the screening equipment monitor the 
                        appropriate imaging standard specified 
                        by the Under Secretary.
                            ``(ii) Screeners operating any 
                        screening equipment shall be able to 
                        distinguish each color displayed on 
                        every type of screening equipment and 
                        explain what each color signifies.
                            ``(iii) Screeners shall be able to 
                        hear and respond to the spoken voice 
                        and to audible alarms generated by 
                        screening equipment in an active 
                        checkpoint environment.
                            ``(iv) Screeners performing 
                        physical searches or other related 
                        operations shall be able to efficiently 
                        and thoroughly manipulate and handle 
                        such baggage, containers, and other 
                        objects subject to security processing.
                            ``(v) Screeners who perform pat-
                        downs or hand-held metal detector 
                        searches of individuals shall have 
                        sufficient dexterity and capability to 
                        thoroughly conduct those procedures 
                        over an individual's entire body.
                    ``(C) The individual shall be able to read, 
                speak, and write English well enough to--
                            ``(i) carry out written and oral 
                        instructions regarding the proper 
                        performance of screening duties;
                            ``(ii) read English language 
                        identification media, credentials, 
                        airline tickets, and labels on items 
                        normally encountered in the screening 
                        process;
                            ``(iii) provide direction to and 
                        understand and answer questions from 
                        English-speaking individuals undergoing 
                        screening; and
                            ``(iv) write incident reports and 
                        statements and log entries into 
                        security records in the English 
                        language.
                    ``(D) The individual shall have 
                satisfactorily completed all initial, 
                recurrent, and appropriate specialized training 
                required by the security program, except as 
                provided in paragraph (3).
            ``(2) Veterans preference.--The Under Secretary 
        shall provide a preference for the hiring of an 
        individual as a security screener if the individual is 
        a member or former member of the armed forces and if 
        the individual is entitled, under statute, to retired, 
        retirement, or retainer pay on account of service as a 
        member of the armed forces.
            ``(3) Exceptions.--An individual who has not 
        completed the training required by this section may be 
        deployed during the on-the-job portion of training to 
        perform functions if that individual--
                    ``(A) is closely supervised; and
                    ``(B) does not make independent judgments 
                as to whether individuals or property may enter 
                a sterile area or aircraft without further 
                inspection.
            ``(4) Remedial training.--No individual employed as 
        a security screener may perform a screening function 
        after that individual has failed an operational test 
        related to that function until that individual has 
        successfully completed the remedial training specified 
        in the security program.
            ``(5) Annual proficiency review.--The Under 
        Secretary shall provide that an annual evaluation of 
        each individual assigned screening duties is conducted 
        and documented. An individual employed as a security 
        screener may not continue to be employed in that 
        capacity unless the evaluation demonstrates that the 
        individual--
                    ``(A) continues to meet all qualifications 
                and standards required to perform a screening 
                function;
                    ``(B) has a satisfactory record of 
                performance and attention to duty based on the 
                standards and requirements in the security 
                program; and
                    ``(C) demonstrates the current knowledge 
                and skills necessary to courteously, 
                vigilantly, and effectively perform screening 
                functions.
            ``(6) Operational testing.--In addition to the 
        annual proficiency review conducted under paragraph 
        (5), the Under Secretary shall provide for the 
        operational testing of such personnel.
    ``(g) Training.--
            ``(1) Use of other agencies.--The Under Secretary 
        may enter into a memorandum of understanding or other 
        arrangement with any other Federal agency or department 
        with appropriate law enforcement responsibilities, to 
        provide personnel, resources, or other forms of 
        assistance in the training of security screening personnel.
            ``(2) Training plan.--Within 60 days after the date 
        of enactment of the Aviation and Transportation 
        Security Act, the Under Secretary shall develop a plan 
        for the training of security screening personnel. The 
        plan shall require, at a minimum, that a security 
        screener--
                    ``(A) has completed 40 hours of classroom 
                instruction or successfully completed a program 
                that the Under Secretary determines will train 
                individuals to a level of proficiency 
                equivalent to the level that would be achieved 
                by such classroom instruction;
                    ``(B) has completed 60 hours of on-the-job 
                instructions; and
                    ``(C) has successfully completed an on-the-
                job training examination prescribed by the 
                Under Secretary.
            ``(3) Equipment-specific training.--An individual 
        employed as a security screener may not use any 
        security screening device or equipment in the scope of 
        that individual's employment unless the individual has 
        been trained on that device or equipment and has 
        successfully completed a test on the use of the device 
        or equipment.
    ``(h) Technological Training.--
            ``(1) In general.--The Under Secretary shall 
        require training to ensure that screeners are 
        proficient in using the most up-to-date new technology 
        and to ensure their proficiency in recognizing new 
        threats and weapons.
            ``(2) Periodic assessments.--The Under Secretary 
        shall make periodic assessments to determine if there 
        are dual use items and inform security screening 
        personnel of the existence of such items.
            ``(3) Current lists of dual use items.--Current 
        lists of dual use items shall be part of the ongoing 
        training for screeners.
            ``(4) Dual use defined.--For purposes of this 
        subsection, the term `dual use' item means an item that 
        may seem harmless but that may be used as a weapon.
    ``(i) Limitation on Right To Strike.--An individual that 
screens passengers or property, or both, at an airport under 
this section may not participate in a strike, or assert the 
right to strike, against the person (including a governmental 
entity) employing such individual to perform such screening.
    ``(j) Uniforms.--The Under Secretary shall require any 
individual who screens passengers and property pursuant to 
section 44901 to be attired while on duty in a uniform approved 
by the Under Secretary.''.
    (b) Conforming Amendments.--Section 44936(a)(1) of title 
49, United States Code, is amended--
            (1) in subparagraph (A) by inserting ``as a 
        security screener under section 44935(e) or a 
        position'' after ``a position''; and
            (2) in subparagraph (E) by striking clause (iv).
    (c) Transition.--The Under Secretary of Transportation for 
Security shall complete the full implementation of section 
44935 (e), (f), (g), and (h) of title 49, United States Code, 
as amended by subsection (a), as soon as is practicable. The 
Under Secretary may make or continue such arrangements for the 
training of security screeners under that section as the Under 
Secretary determines necessary pending full implementation of 
that section as so amended.
    (d) Screener Personnel.--Notwithstanding any other 
provision of law, the Under Secretary of Transportation for 
Security may employ, appoint, discipline, terminate, and fix 
the compensation, terms, and conditions of employment of 
Federal service for such a number of individuals as the Under 
Secretary determines to be necessary to carry out the screening 
functions of the Under Secretary under section 44901 of title 
49, United States Code. The Under Secretary shall establish 
levels of compensation and other benefits for individuals so 
employed.

SEC. 112. RESEARCH AND DEVELOPMENT.

    (a) In General.--Section 44912(b)(1) of title 49, United 
States Code, is amended--
            (1) by striking ``complete an intensive review of'' 
        and inserting ``periodically review'';
            (2) by striking ``commercial aircraft in service 
        and expected to be in service in the 10-year period 
        beginning on November 16, 1990;'' in subparagraph (B) 
        and inserting ``aircraft in air transportation;''; and
            (3) by redesignating subparagraphs (D) through (F) 
        as subparagraphs (E) through (G), respectively, and 
        inserting after subparagraph (C) the following:
                    ``(D) the potential release of chemical, 
                biological, or similar weapons or devices 
                either within an aircraft or within an 
                airport;''.
    (b) Additional Matters Regarding Research and 
Development.--
            (1) Additional program requirements.--Subsection 
        (a) of section 44912 of title 49, United States Code, 
        is amended--
                    (A) by redesignating paragraph (4) as 
                paragraph (5); and
                    (B) by inserting after paragraph (3) the 
                following new paragraph (4):
    ``(4)(A) In carrying out the program established under this 
subsection, the Administrator shall designate an individual to 
be responsible for engineering, research, and development with 
respect to security technology under the program.
    ``(B) The individual designated under subparagraph (A) 
shall use appropriate systems engineering and risk management 
models in making decisions regarding the allocation of funds 
for engineering, research, and development with respect to 
security technology under the program.
    ``(C) The individual designated under subparagraph (A) 
shall, on an annual basis, submit to the Research, Engineering 
and Development Advisory Committee a report on activities under 
this paragraph during the preceding year. Each report shall 
include, for the year covered by such report, information on--
            ``(i) progress made in engineering, research, and 
        development with respect to security technology;
            ``(ii) the allocation of funds for engineering, 
        research, and development with respect to security 
        technology; and
            ``(iii) engineering, research, and development with 
        respect to any technologies drawn from other agencies, 
        including the rationale for engineering, research, and 
        development with respect to such technologies.''.
            (2) Review of threats.--Subsection (b)(1) of that 
        section is further amended--
                    (A) by redesignating subparagraphs (A) 
                through (G) as subparagraphs (B) through (H) 
                respectively; and
                    (B) by inserting before subparagraph (B), 
                as so redesignated, the following new 
                subparagraph (A):
            ``(A) a comprehensive systems analysis (employing 
        vulnerability analysis, threat attribute definition, 
        and technology roadmaps) of the civil aviation system, 
        including--
                    ``(i) the destruction, commandeering, or 
                diversion of civil aircraft or the use of civil 
                aircraft as a weapon; and
                    ``(ii) the disruption of civil aviation 
                service, including by cyber attack;''.
            (3) Scientific advisory panel.--Subsection (c) of 
        that section is amended to read as follows:
    ``(c) Scientific Advisory Panel.--(1) The Administrator 
shall establish a scientific advisory panel, as a subcommittee 
of the Research, Engineering, and Development Advisory 
Committee, to review, comment on, advise the progress of, and 
recommend modifications in, the program established under 
subsection (a) of this section, including the need for long-
range research programs to detect and prevent catastrophic 
damage to commercial aircraft, commercial aviation facilities, 
commercial aviation personnel and passengers, and other 
components of the commercial aviation system by the next 
generation of terrorist weapons.
    ``(2)(A) The advisory panel shall consist of individuals 
who have scientific and technical expertise in--
            ``(i) the development and testing of effective 
        explosive detection systems;
            ``(ii) aircraft structure and experimentation to 
        decide on the type and minimum weights of explosives 
        that an effective explosive detection technology must 
        be capable of detecting;
            ``(iii) technologies involved in minimizing 
        airframe damage to aircraft from explosives; and
            ``(iv) other scientific and technical areas the 
        Administrator considers appropriate.
    ``(B) In appointing individuals to the advisory panel, the 
Administrator should consider individuals from academia and the 
national laboratories, as appropriate.
    ``(3) The Administrator shall organize the advisory panel 
into teams capable of undertaking the review of policies and 
technologies upon request.
    ``(4) Not later than 90 days after the date of the 
enactment of the Aviation and Transportation Security Act, and 
every two years thereafter, the Administrator shall review the 
composition of the advisory panel in order to ensure that the 
expertise of the individuals on the panel is suited to the 
current and anticipated duties of the panel.''.

SEC. 113. FLIGHT SCHOOL SECURITY.

    (a) In General.--Subchapter II of chapter 449 of title 49, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 44939. Training to operate certain aircraft

    ``(a) Waiting Period.--A person subject to regulation under 
this part may provide training in the operation of any aircraft 
having a maximum certificated takeoff weight of 12,500 pounds 
or more to an alien (as defined in section 101(a)(3) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)(3))) or to 
any other individual specified by the Under Secretary of 
Transportation for Security only if--
            ``(1) that person has first notified the Attorney 
        General that the individual has requested such training 
        and furnished the Attorney General with that 
        individual's identification in such form as the 
        Attorney General may require; and
            ``(2) the Attorney General has not directed, within 
        45 days after being notified under paragraph (1), that 
        person not to provide the requested training because 
        the Attorney General has determined that the individual 
        presents a risk to aviation or national security.
    ``(b) Interruption of Training.--If the Attorney General, 
more than 45 days after receiving notification under subsection 
(a) from a person providing training described in subsection 
(a), determines that the individual presents a risk to aviation 
or national security, the Attorney General shall immediately 
notify the person providing the training of the determination 
and that person shall immediately terminate the training.
    ``(c) Covered Training.--For the purposes of subsection 
(a), training includes in-flight training, training in a 
simulator, and any other form or aspect of training.
    ``(d) Security Awareness Training for Employees.--The Under 
Secretary shall require flight schools to conduct a security 
awareness program for flight school employees to increase their 
awareness of suspicious circumstances and activities of 
individuals enrolling in or attending flight school.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``44939. Training to operate certain aircraft.''.

    (c) International Cooperation.--The Secretary of 
Transportation, in consultation with the Secretary of State, 
shall work with the International Civil Aviation Organization 
and the civil aviation authorities of other countries to 
improve international aviation security through screening 
programs for flight instruction candidates.
    (d) Effective Date.--The amendment made by subsection (a) 
applies to applications for training received after the date of 
enactment of this Act.

SEC. 114. INCREASED PENALTIES FOR INTERFERENCE WITH SECURITY PERSONNEL.

    (a) In General.--Chapter 465 of title 49, United States 
Code, is amended by inserting after section 46502 the 
following:

``Sec. 46503. Interference with security screening personnel

    ``An individual in an area within a commercial service 
airport in the United States who, by assaulting a Federal, 
airport, or air carrier employee who has security duties within 
the airport, interferes with the performance of the duties of 
the employee or lessens the ability of the employee to perform 
those duties, shall be fined under title 18, imprisoned for not 
more than 10 years, or both. If the individual used a dangerous 
weapon in committing the assault or interference, the 
individual may be imprisoned for any term of years or life 
imprisonment.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 
465 of such title is amended by inserting after the item 
relating to section 46502 the following:

``46503. Interference with security screening personnel''.

SEC. 117. PASSENGER MANIFESTS.

    Section 44909 is amended by adding at the end the 
following:
    ``(c) Flights in Foreign Air Transportation to the United 
States.--
            ``(1) In general.--Not later than 60 days after the 
        date of enactment of the Aviation and Transportation 
        Security Act, each air carrier and foreign air carrier 
        operating a passenger flight in foreign air 
        transportation to the United States shall provide to 
        the Commissioner of Customs by electronic transmission 
        a passenger and crew manifest containing the 
        information specified in paragraph (2). Carriers may 
        use the advanced passenged information system 
        established under section 431 of the Tariff Act of 1930 
        (19 U.S.C. 1431) to provide the information required by 
        the preceding sentence.
            ``(2) Information.--A passenger and crew manifest 
        for a flight required under paragraph (1) shall contain 
        the following information:
                    ``(A) The full name of each passenger and 
                crew member.
                    ``(B) The date of birth and citizenship of 
                each passenger and crew member.
                    ``(C) The sex of each passenger and crew 
                member.
                    ``(D) The passport number and country of 
                issuance of each passenger and crew member if 
                required for travel.
                    ``(E) The United States visa number or 
                resident alien card number of each passenger 
                and crew member, as applicable.
                    ``(F) Such other information as the Under 
                Secretary, in consultation with the 
                Commissioner of Customs, determines is 
                reasonably necessary to ensure aviation safety.
            ``(3) Passenger name records.--The carriers shall 
        make passenger name record information available to the 
        Customs Service upon request.
            ``(4) Transmission of manifest.--Subject to 
        paragraph (5), a passenger and crew manifest required 
        for a flight under paragraph (1) shall be transmitted 
        to the Customs Service in advance of the aircraft 
        landing in the United States in such manner, time, and 
        form as the Customs Service prescribes.
            ``(5) Transmission of manifests to other federal 
        agencies.--Upon request, information provided to the 
        Under Secretary or the Customs Service under this 
        subsection may be shared with other Federal agencies 
        for the purpose of protecting national security.''.

SEC. 118. AIR TRANSPORTATION ARRANGEMENTS IN CERTAIN STATES.

    (a) In General.--Notwithstanding any provision of section 
41309(a) of title 49, United States Code, to the contrary, air 
carriers providing air transportation on flights which both 
originate and terminate at points within the same State may 
file an agreement, request, modification, or cancellation of an 
agreement within the scope of that section with the Secretary 
of Transportation upon a declaration by the Governor of the 
State that such agreement, request, modification, or 
cancellation is necessary to ensure the continuing availability 
of such air transportation within that State.
    (b) Approval of Secretary.--The Secretary may approve any 
such agreement, request, modification, or cancellation and 
grant an exemption under section 41308(c) of title 49, United 
States Code, to the extent necessary to effectuate such 
agreement, request, modification, or cancellation, without 
regard to the provisions of section 41309(b) or (c) of that 
title.
    (c) Public Interest Requirement.--The Secretary may approve 
such an agreement, request, modification, or cancellation if 
the Secretary determines that--
            (1) the State to which it relates has extraordinary 
        air transportation needs and concerns; and
            (2) approval is in the public interest.
    (d) Termination.--An approval under subsection (b) and an 
exemption under section 41308(c) of title 49, United States 
Code, granted under subsection (b) shall terminate on the 
earlier of the 2 following dates:
            (1) A date established by the Secretary in the 
        Secretary's discretion.
            (2) October 1, 2002.
    (e) Extension.--Notwithstanding subsection (d), if the 
Secretary determines that it is in the public interest, the 
Secretary may extend the termination date under subsection 
(d)(2) until a date no later than October 1, 2003.
    (f) Reports.--If the Secretary approves any such agreement, 
request, modification, or cancellation under this section and 
grants an exemption, the Secretary shall transmit a report to 
Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Transportation and Infrastructure 
of the House of Representatives within 6 months describing what 
actions have been taken by the air carriers to which the 
exemption was granted. The Secretary shall also notify those 
committees if the Secretary extends the termination date under 
subsection (e).

SEC. 115. AIRLINE COMPUTER RESERVATION SYSTEMS.

    In order to ensure that all airline computer reservation 
systems maintained by United States air carriers are secure 
from unauthorized access by persons seeking information on 
reservations, passenger manifests, or other non-public 
information, the Secretary of Transportation shall require all 
such air carriers to utilize to the maximum extent practicable 
the best technology available to secure their computer 
reservation system against such unauthorized access.

SEC. 116. SECURITY SERVICE FEE.

    (a) In General.--Subchapter II of chapter 449 is amended by 
adding at the end the following:

``Sec. 44940. Security service fee

    ``(a) General Authority.--
            ``(1) Passenger fees.--The Under Secretary of 
        Transportation for Security shall impose a uniform fee, 
        on passengers of air carriers and foreign air carriers 
        in air transportation and intrastate air transportation 
        originating at airports in the United States, to pay 
        for the following costs of providing civil aviation 
        security services:
                    ``(A) Salary, benefits, overtime, 
                retirement and other costs of screening 
                personnel, their supervisors and managers, and 
                Federal law enforcement personnel deployed at 
                airport security screening locations under 
                section 44901.
                    ``(B) The costs of training personnel 
                described in subparagraph (A), and the 
                acquisition, operation, and maintenance of 
                equipment used by such personnel.
                    ``(C) The costs of performing background 
                investigations of personnel described in 
                subparagraphs (A), (D), (F), and (G).
                    ``(D) The costs of the Federal air marshals 
                program.
                    ``(E) The costs of performing civil 
                aviation security research and development 
                under this title.
                    ``(F) The costs of Federal Security 
                Managers under section 44903.
                    ``(G) The costs of deploying Federal law 
                enforcement personnel pursuant to section 
                44903(h).
        The amount of such costs shall be determined by the 
        Under Secretary and shall not be subject to judicial 
        review.
            ``(2) Air carrier fees.--
                    ``(A) Authority.--In addition to the fee 
                imposed pursuant to paragraph (1), and only to 
                the extent that the Under Secretary estimates 
                that such fee will be insufficient to pay for 
                the costs of providing civil aviation security 
                services described in paragraph (1), the Under 
                Secretary may impose a fee on air carriers and 
                foreign air carriers engaged in air 
                transportation and intrastate air 
                transportation to pay for the difference 
                between any such costs and the amount collected 
                from such fee, as estimated by the Under 
                Secretary at the beginning of each fiscal year. 
                The estimates of the Under Secretary under this 
                subparagraph are not subject to judicial 
                review.
                    ``(B) Limitations.--
                            ``(i) Overall limit.--The amounts 
                        of fees collected under this paragraph 
                        for each fiscal year may not exceed, in 
                        the aggregate, the amounts paid in 
                        calendar year 2000 by carriers 
                        described in subparagraph (A) for 
                        screening passengers and property, as 
                        determined by the Under Secretary.
                            ``(ii) Per-carrier limit.--The 
                        amount of fees collected under this 
                        paragraph from an air carrier described 
                        in subparagraph (A) for each of fiscal 
                        years 2002, 2003, and 2004 may not 
                        exceed the amount paid in calendar year 
                        2000 by that carrier for screening 
                        passengers and property, as determined 
                        by the Under Secretary.
                            ``(iii) Adjustment of per-carrier 
                        limit.--For fiscal year 2005 and 
                        subsequent fiscal years, the per-
                        carrier limitation under clause (ii) 
                        may be determined by the Under 
                        Secretary on the basis of market share 
                        or any other appropriate measure in 
                        lieu of actual screening costs in 
                        calendar year 2000.
                            ``(iv) Finality of 
                        determinations.--Determinations of the 
                        Under Secretary under this subparagraph 
                        are not subject to judicial review.
                    ``(C) Special rule for fiscal year 2002.--
                The amount of fees collected under this 
                paragraph from any carrier for fiscal year 2002 
                may not exceed the amounts paid by that carrier 
                for screening passengers and property for a 
                period of time in calendar year 2000 
                proportionate to the period of time in fiscal 
                year 2002 during which fees are collected under 
                this paragraph.
    ``(b) Schedule of Fees.--In imposing fees under subsection 
(a), the Under Secretary shall ensure that the fees are 
reasonably related to the Transportation Security 
Administration's costs of providing services rendered.
    ``(c) Limitation on Fee.--Fees imposed under subsection 
(a)(1) may not exceed $2.50 per enplanement in air 
transportation or intrastate air transportation thatoriginates 
at an airport in the United States, except that the total amount of 
such fees may not exceed $5.00 per one-way trip.
    ``(d) Imposition of Fee.--
            ``(1) In general.--Notwithstanding section 9701 of 
        title 31 and the procedural requirements of section 553 
        of title 5, the Under Secretary shall impose the fee 
        under subsection (a)(1), and may impose a fee under 
        subsection (a)(2), through the publication of notice of 
        such fee in the Federal Register and begin collection 
        of the fee within 60 days of the date of enactment of 
        this Act, or as soon as possible thereafter.
            ``(2) Special rules passenger fees.--A fee imposed 
        under subsection (a)(1) through the procedures under 
        subsection (d) shall apply only to tickets sold after 
        the date on which such fee is imposed. If a fee imposed 
        under subsection (a)(1) through the procedures under 
        subsection (d) on transportation of a passenger of a 
        carrier described in subsection (a)(1) is not collected 
        from the passenger, the amount of the fee shall be paid 
        by the carrier.
            ``(3) Subsequent modification of fee.--After 
        imposing a fee in accordance with paragraph (1), the 
        Under Secretary may modify, from time to time through 
        publication of notice in the Federal Register, the 
        imposition or collection of such fee, or both.
            ``(4) Limitation on collection.--No fee may be 
        collected under this section except to the extent that 
        the expenditure of the fee to pay the costs of 
        activities and services for which the fee is imposed is 
        provided for in advance in an appropriations Act.
    ``(e) Administration of Fees.--
            ``(1) Fees payable to under secretary.--All fees 
        imposed and amounts collected under this section are 
        payable to the Under Secretary.
            ``(2) Fees collected by air carrier.--A fee imposed 
        under subsection (a)(1) shall be collected by the air 
        carrier or foreign air carrier that sells a ticket for 
        transportation described in subsection (a)(1).
            ``(3) Due date for remittance.--A fee collected 
        under this section shall be remitted on the last day of 
        each calendar month by the carrier collecting the fee. 
        The amount to be remitted shall be for the calendar 
        month preceding the calendar month in which the 
        remittance is made.
            ``(4) Information.--The Under Secretary may require 
        the provision of such information as the Under 
        Secretary decides is necessary to verify that fees have 
        been collected and remitted at the proper times and in 
        the proper amounts.
            ``(5) Fee not subject to tax.--For purposes of 
        section 4261 of the Internal Revenue Code of 1986 (26 
        U.S.C. 4261), a fee imposed under this section shall 
        not be considered to be part of the amount paid for 
        taxable transportation.
            ``(6) Cost of collecting fee.--No portion of fee 
        collected under this section may be retained by the air 
        carrier or foreign air carrier for the costs of 
        collecting, handling, or remitting the fee except for 
        interest accruing to the carrier after collection and 
        before remittance.
    ``(f) Receipts Credited as Offsetting Collections.--
Notwithstanding section 3302 of title 31, any fee collected 
under this section--
            ``(1) shall be credited as offsetting collections 
        to the account that finances the activities and 
        services for which the fee is imposed;
            ``(2) shall be available for expenditure only to 
        pay the costs of activities and services for which the 
        fee is imposed; and
            ``(3) shall remain available until expended.
    ``(g) Refunds.--The Under Secretary may refund any fee paid 
by mistake or any amount paid in excess of that required.
    ``(h) Exemptions.--The Under Secretary may exempt from the 
passenger fee imposed under subsection (a)(1) any passenger 
enplaning at an airport in the United States that does not 
receive screening services under section 44901 for that segment 
of the trip for which the passenger does not receive 
screening.''.
    (b) Conforming Amendment.--The analysis for such chapter is 
amended by adding at the end the following:

``44940. Security service fee''.

    (c) Specific Authorization of Appropriations.--
            (1) In general.--Part C of subtitle VII of title 
        49, United States Code, is amended by adding at the end 
        the following:

                ``CHAPTER 483--AVIATION SECURITY FUNDING

``Sec.
``48301. Aviation security funding.

``Sec. 48301. Aviation security funding

    ``(a) In General.--There are authorized to be appropriated 
for fiscal years 2002, 2003, 2004, and 2005 such sums as may be 
necessary to carry out chapter 449 and related aviation 
security activities under this title. Any amounts appropriated 
pursuant to this section for fiscal year 2002 shall remain 
available until expended.
    ``(b) Grants for Aircraft Security.--There is authorized to 
be appropriated $500,000,000 for fiscal year 2002 to the 
Secretary of Transportation to make grants to or other 
agreements with air carriers (including intrastate air 
carriers) to--
            ``(1) fortify cockpit doors to deny access from the 
        cabin to the pilots in the cockpit;
            ``(2) provide for the use of video monitors or 
        other devices to alert the cockpit crew to activity in 
        the passenger cabin;
            ``(3) ensure continuous operation of the aircraft 
        transponder in the event the crew faces an emergency; 
        and
            ``(4) provide for the use of other innovative 
        technologies to enhance aircraft security.''.
            (2) Conforming amendment.--The subtitle analysis 
        for subtitle VII of title 49, United States Code, is 
        amended by inserting after the item relating to chapter 
        482 the following:

``483. Aviation Security Funding..............................  48301''.

SEC. 119. INCREASED FUNDING FLEXIBILITY FOR AVIATION SECURITY.

    (a) Limited Use of Airport Improvement Program Funds.--
            (1) Airport development funds.--Section 47102(3) of 
        title 49, United States Code, is amended by adding at 
        the end the following:
                    ``(J) in fiscal year 2002, any additional 
                security related activity required by law or by 
                the Secretary after September 11, 2001, and 
                before October 1, 2002.
                    ``(K) in fiscal year 2002 with respect to 
                funds apportioned under section 47114 in fiscal 
                years 2001 and 2002, any activity, including 
                operational activities, of an airport that is 
                not a primary airport if that airport is 
                located within the confines of enhanced class B 
                airspace, as defined by Notice to Airmen FDC 1/
                0618 issued by the Federal Aviation 
                Administration and the activity was carried out 
                when any restriction in the Notice is in 
                effect.
                    ``(L) in fiscal year 2002, payments for 
                debt service on indebtedness incurred to 
                carry out a project at an airport owned or 
                controlled by the sponsor or at a privately 
                owned or operated airport passenger terminal 
                financed by indebtedness incurred by the sponsor 
                if the Secretary determines that such payments 
                are necessary to prevent a default on the 
                indebtedness.''.
            (2) Allowable costs.--Section 47110(b)(2) of title 
        49, United States Code, is amended--
                    (A) by striking ``or'' in subparagraph (B);
                    (B) by inserting ``or'' after ``executed;'' 
                in subparagraph (C); and
                    (C) by adding at the end the following:
                    ``(D) if the cost is incurred after 
                September 11, 2001, for a project described in 
                section 47102(3)(J), 47102(3)(K), or 
                47102(3)(L) and shall not depend upon the date 
                of execution of a grant agreement made under 
                this subchapter;''.
            (3) Discretionary grants.--Section 47115 of title 
        49, United States Code, is amended by adding at the end 
        the following:
    ``(i) Considerations for Project Under Expanded Security 
Eligibility.--In order to assure that funding under this 
subchapter is provided to the greatest needs, the Secretary, in 
selecting a project described in section 47102(3)(J) for a 
grant, shall consider the non-federal resources available to 
sponsor, the use of such non-federal resources, and the degree 
to which the sponsor is providing increased funding for the 
project.''.
            (4) Federal share.--Section 47109(a) of title 49, 
        United States Code, is amended--
                    (A) by striking ``and'' in paragraph (3);
                    (B) by striking ``47134.'' in paragraph (4) 
                and inserting ``47134; and''; and
                    (C) by adding at the end the following:
            ``(5) for fiscal year 2002, 100 percent for a 
        project described in section 47102(3)(J), 47102(3)(K), 
        or 47102(3)(L).''.
            (5) Airport development.--Section 47102(3)(B) of 
        title 49, United States Code, is amended--
                    (A) by striking ``and'' at the end of 
                clause (viii);
                    (B) by striking the period at the end of 
                clause (ix) and inserting ``; and''; and
                    (C) by inserting after clause (ix) the 
                following new clause:
                            ``(x) replacement of baggage 
                        conveyor systems, and reconfiguration 
                        of terminal baggage areas, that the 
                        Secretary determines are necessary to 
                        install bulk explosive detection 
                        devices.''.
    (b) Apportioned Funds.--For the purpose of carrying out 
section 47114 of title 49, United States Code, for fiscal year 
2003, the Secretary shall use, in lieu of passenger boardings 
at an airport during the prior calendar year, the greater of--
            (1) the number of passenger boardings at that 
        airport during 2000; or
            (2) the number of passenger boardings at that 
        airport during 2001.
    (c) Expedited Processing of Security-Related PFC 
Requests.--The Administrator of the Federal Aviation 
Administration shall, to the extent feasible, expedite the 
processing and approval of passenger facility fee requests 
under subchapter I of chapter 471 of title 49, United States 
Code, for projects described in section 47192(3)(J) of title 
49, United States Code.
    (d) Amendment of General Fee Schedule Provision.--Section 
45301(b)(1)(B) of title 49, United States Code, is amended--
            (1) by striking ``directly'' and inserting 
        ``reasonably'';
            (2) by striking ``Administration's costs'' and 
        inserting ``Administration's costs, as determined by 
        the Administrator,''; and
            (3) by adding at the end ``The Determination of 
        such costs by the Administrator is not subject to 
        judicial review.''.

SEC. 120. CHEMICAL AND BIOLOGICAL WEAPON DETECTION.

    Section 44903(c)(2)(C) of title 49, United States Code, is 
amended to read as follows:
                    ``(C) Maximum use of chemical and 
                biological weapon detection equipment.--The 
                Secretary of Transportation may require 
                airports to maximize the use of technology and 
                equipment that is designed to detect or 
                neutralize potential chemical or biological 
                weapons.''.

SEC. 121. AUTHORIZATION OF FUNDS FOR REIMBURSEMENT OF AIRPORTS FOR 
                    SECURITY MANDATES.

    (a) Airport Security.--There is authorized to be 
appropriated to the Secretary of Transportation for fiscal 
years 2002 and 2003 a total of $1,500,000,000 to reimburse 
airport operators, on-airport parking lots, and vendors of on-
airfield direct services to air carriers for direct costs 
incurred by such operators to comply with new, additional, or 
revised security requirements imposed on such operators by the 
Federal Aviation Administration or Transportation Security 
Administration on or after September 11, 2001. Such sums shall 
remain available until expended.
    (b) Documentation of Costs; Audit.--The Secretary may not 
reimburse an airport operator, on-airport parking lot, or 
vendor of on-airfield direct services to air carriers under 
this section for any cost for which the airport operator, on-
airport parking lot, or vendor of on-airfield direct services 
does not demonstrate to the satisfaction of the Secretary, 
using sworn financial statements or other appropriate data, 
that--
            (1) the cost is eligible for reimbursement under 
        subsection (a); and
            (2) the cost was incurred by the airport operator, 
        on-airport parking lot, or vendor of on-airfield direct 
        services to air carriers.
The Inspector General of the Department of Transportation and 
the Comptroller General of the United States may audit such 
statements and may request any other information necessary to 
conduct such an audit.
    (c) Claim Procedure.--Within 30 days after the date of 
enactment of this Act, the Secretary, after consultation with 
airport operators, on-airport parking lots, and vendors of on-
airfield direct services to air carriers, shall publish in the 
Federal Register the procedures for filing claims for 
reimbursement under this section of eligible costs incurred by 
airport operators.

SEC. 122. SENSE OF THE CONGRESS.

    It is the sense of the Congress that--
            (1) an airport receiving Federal financial 
        assistance should meet with the tenants of the airport 
        (other than air carriers and foreign air carriers) to 
        discuss adjustments of the rent of the tenants to 
        account for losses in revenue incurred by the tenants 
        on and after September 11, 2001;
            (2) an air carrier that received financial 
        assistance under the Air Transportation Safety and 
        System Stabilization Act or under title 49, United 
        States Code, since September 11, 2001, should meet with 
        airport operators to discuss payment of applicable 
        rates, charges, and fees; and
            (3) the Federal Aviation Administration should 
        maintain its current restriction on carry-on baggage of 
        1 bag and 1 personal item.

SEC. 123. AIRPORT IMPROVEMENT PROGRAMS.

    (a) Competition Plan.--Section 47106(f) is amended--
            (1) by redesignating paragraph (3) as paragraph 
        (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Special rule for fiscal year 2002.--This 
        subsection does not apply to any passenger facility fee 
        approved, or grant made, in fiscal year 2002 if the fee 
        or grant is to be used to improve security at a covered 
        airport.''.
    (b) Conforming Amendment to Airport and Airway Trust 
Fund.--Section 9502(d)(1)(A) of the Internal Revenue Code of 
1986 (relating to airport and airway program) is amended by 
inserting ``or the Aviation and Transportation Security Act'' 
after ``21st Century''.

SEC. 124. TECHNICAL CORRECTIONS.

    (a) Report Deadline.--Section 106(a) of the Air 
Transportation Safety and System Stabilization Act (Public Law 
107-42) is amended by striking ``February 1, 2001'' and 
inserting ``February 1, 2002''.
    (b) Insurance and Reinsurance of Aircraft.--Section 
44306(c) (as redesignated by section 201(d) of such Act) is 
amended by inserting ``in the interest of air commerce or 
national security or'' before ``to carry out foreign policy''.
    (c) Federal Credit Instruments.--Section 102(c)(2)(A) of 
such Act is amended by striking ``representatives'' and 
inserting ``representations''.
    (d) Maximum Amount of Compensation Payable Per Air 
Carrier.--Section 103 of such Act is amended by adding at the 
end the following:
    ``(d) Compensation for Certain Air Carriers.--
            ``(1) Set-aside.--The President may set aside a 
        portion of the amount of compensation payable to air 
        carriers under section 101(a)(2) to provide 
        compensation to classes of air carriers, such as air 
        tour operators and air ambulances (including hospitals 
        operating air ambulances) for whom the application of a 
        distribution formula containing available seat miles as 
        a factor would inadequately reflect their share of 
        direct and incremental losses. The President shall 
        reduce the $4,500,000,000 specified in subsection 
        (b)(2)(A)(i) by the amount set aside under this 
        subsection.
            ``(2) Distribution of amounts.--The President shall 
        distribute the amount set aside under this subsection 
        proportionally among such air carriers based on an 
        appropriate auditable measure, as determined by the 
        President.''.

SEC. 125. ENCOURAGING AIRLINE EMPLOYEES TO REPORT SUSPICIOUS 
                    ACTIVITIES.

    (a) In General.--Subchapter II of chapter 449 of title 49, 
United States Code, is amended by inserting at the end the 
following:

``Sec. 44941. Immunity for reporting suspicious activities

    ``(a) In General.--Any air carrier or foreign air carrier 
or any employee of an air carrier or foreign air carrier who 
makes a voluntary disclosure of any suspicious transaction 
relevant to a possible violation of law or regulation, relating 
to air piracy, a threat to aircraft or passenger safety, or 
terrorism, as defined by section 3077 of title 18, United 
States Code, to any employee or agent of the Department of 
Transportation, the Department of Justice, any Federal, State, 
or local law enforcement officer, or any airport or airline 
security officer shall not be civilly liable to any person 
under any law or regulation of the United States, any 
constitution, law, or regulation of any State or political 
subdivision of any State, for such disclosure.
    ``(b) Application.--Subsection (a) shall not apply to--
            ``(1) any disclosure made with actual knowledge 
        that the disclosure was false, inaccurate, or 
        misleading; or
            ``(2) any disclosure made with reckless disregard 
        as to the truth or falsity of that disclosure.''.
    (b) Conforming Amendment.--The chapter analysis for such 
chapter is amended by adding at the end the following:

``44941. Immunity for reporting suspicious activities.''.

SEC. 126. LESS-THAN-LETHAL WEAPONRY FOR FLIGHT DECK CREWS.

    (a) National Institute of Justice Study.--The National 
Institute of Justice shall assess the range of less-than-lethal 
weaponry available for use by a flight deck crewmember 
temporarily to incapacitate an individual who presents a clear 
and present danger to the safety of the aircraft, its 
passengers, or individuals on the ground and report its 
findings and recommendations to the Secretary of Transportation 
within 90 days after the date of enactment of this Act.
    (b) Arming Flight Deck Crew.--Section 44903 of title 49, 
United States Code, is amended by adding at the end the 
following:
    ``(h) Authority To Arm Flight Deck Crew With Less-Than-
Lethal Weapons.--
            ``(1) In general.--If the Secretary, after 
        receiving the recommendations of the National Institute 
        of Justice, determines, with the approval of the 
        Attorney General and the Secretary of State, that it is 
        appropriate and necessary and would effectively serve 
        the public interest in avoiding air piracy, the 
        Secretary may authorize members of the flight deck crew 
        on any aircraft providing air transportation or 
        intrastate air transportation to carry a less-than-
        lethal weapon while the aircraft is engaged in 
        providing such transportation.
            ``(2) Usage.--If the Secretary grants authority 
        under paragraph (1) for flight deck crew members to 
        carry a less-than-lethal weapon while engaged in 
        providing air transportation or intrastate air 
        transportation, the Secretary shall--
                    ``(A) prescribe rules requiring that any 
                such crew member be trained in the proper use 
                of the weapon; and
                    ``(B) prescribe guidelines setting forth 
                the circumstances under which such weapons may 
                be used.''.

SEC. 127. MAIL AND FREIGHT WAIVERS.

            (a) In General.--During a national emergency 
        affecting air transportation or intrastate air 
        transportation, the Secretary of Transportation, after 
        consultation with the Transportation Security Oversight 
        Board, may grant a complete or partial waiver of any 
        restrictions on the carriage by aircraft of freight, 
        mail, emergency medical supplies, personnel, or 
        patients on aircraft, imposed by the Department of 
        Transportation (or other Federal agency or department) 
        that would permit such carriage of freight, mail, 
        emergency medical supplies, personnel, or patients on 
        flights, to, from, or within a State if the Secretary 
        determines that--
            (1) extraordinary air transportation needs or 
        concerns exist; and
            (2) the waiver is in the public interest, taking 
        into consideration the isolation of and dependence on 
        air transportation of the State.
    (b) Limitations.--The Secretary may impose reasonable 
limitations on any such waiver.

SEC. 128. FLIGHT DECK SECURITY.

    The pilot of a passenger aircraft operated by an air 
carrier in air transportation or intrastate air transportation 
is authorized to carry a firearm into the cockpit if--
            (1) the Under Secretary of Transportation for 
        Security approves;
            (2) the air carrier approves;
            (3) the firearm is approved by the Under Secretary; 
        and
            (4) the pilot has received proper training for the 
        use of the firearm, as determined by the Under 
        Secretary.

SEC. 129. AMENDMENTS TO AIRMEN REGISTRY AUTHORITY.

    Section 44703(g) of title 49, United States Code, is 
amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking ``pilots'' and inserting 
                ``airmen''; and
                    (B) by striking the period and inserting 
                ``and related to combating acts of 
                terrorism.''; and
            (2) by adding at the end, the following new 
        paragraphs:
    ``(3) For purposes of this section, the term `acts of 
terrorism' means an activity that involves a violent act or an 
act dangerous to human life that is a violation of the criminal 
laws of the Untied States or of any State, or that would be a 
criminal violation if committed within the jurisdiction of the 
United States or of any State, and appears to be intended to 
intimidate or coerce a civilian population to influence the 
policy of a government by intimidation or coercion or to affect 
the conduct of a government by assassination or kidnaping.
    ``(4) The Administrator is authorized and directed to work 
with State and local authorities, and other Federal agencies, 
to assist in the identification of individuals applying for or 
holding airmen certificates.''.

SEC. 130. RESULTS-BASED MANAGEMENT.

    Subchapter II of chapter 449 of title 49, United States 
Code, is amended by adding at the end the following:

``Sec. 44942. Performance goals and objectives

    ``(a) Short Term Transition.--
            ``(1) In general.--Within 180 days after the date 
        of enactment of the Aviation and Transportation 
        Security Act, the Under Secretary for Transportation 
        Security may, in consultation with Congress--
                    ``(A) establish acceptable levels of 
                performance for aviation security, including 
                screening operations and access control, and
                    ``(B) provide Congress with an action plan, 
                containing measurable goals and milestones, 
                that outlines how those levels of performance 
                will be achieved.
            ``(2) Basics of action plan.--The action plan shall 
        clarify the responsibilities of the Transportation 
        Security Administration, the Federal Aviation 
        Administration and any other agency or organization 
        that may have a role in ensuring the safety and 
        security of the civil air transportation system.
    ``(b) Long-Term Results-Based Management.--
            ``(1) Performance plan and report.--
                    ``(A) Performance plan.--
                            ``(i) Each year, consistent with 
                        the requirements of the Government 
                        Performance and Results Act of 1993 
                        (GPRA), the Secretary and the Under 
                        Secretary for Transportation Security 
                        shall agree on a performance plan for 
                        the succeeding 5 years that establishes 
                        measurable goals and objectives for 
                        aviation security. The plan shall identify 
                        action steps necessary to achieve such goals. 
                            ``(ii) In addition to meeting the 
                        requirements of GPRA, the performance 
                        plan should clarify the 
                        responsibilities of the Secretary, the 
                        Under Secretary for Transportation 
                        Security and any other agency or 
                        organization that may have a role in 
                        ensuring the safety and security of the 
                        civil air transportation system.
                    ``(B) Performance report.--Each year, 
                consistent with the requirements of GPRA, the 
                Under Secretary for Transportation Security 
                shall prepare and submit to Congress an annual 
                report including an evaluation of the extent 
                goals and objectives were met. The report shall 
                include the results achieved during the year 
                relative to the goals established in the 
                performance plan.

``Sec. 44943. Performance management system

    ``(a) Establishing a Fair and Equitable System for 
Measuring Staff Performance.--The Under Secretary for 
Transportation Security shall establish a performance 
management system which strengthens the organization's 
effectiveness by providing for the establishment of goals and 
objectives for managers, employees, and organizational 
performance consistent with the performance plan.
    ``(b) Establishing Management Accountability for Meeting 
Performance Goals.--
            ``(1) In general.--Each year, the Secretary and 
        Under Secretary of Transportation for Security shall 
        enter into an annual performance agreement that shall 
        set forth organizational and individual performance 
        goals for the Under Secretary.
            ``(2) Goals.--Each year, the Under Secretary and 
        each senior manager who reports to the Under Secretary 
        shall enter into an annual performance agreement that 
        sets forth organization and individual goals for those 
        managers. All other employees hired under the authority 
        of the Under Secretary shall enter into an annual 
        performance agreement that sets forth organization and 
        individual goals for those employees.
    ``(c) Performance-Based Service Contracting.--To the extent 
contracts, if any, are used to implement the Aviation Security 
Act, the Under Secretary for Transportation Security shall, to 
the extent practical, maximize the use of performance-based 
service contracts. These contracts should be consistent with 
guidelines published by the Office of Federal Procurement 
Policy.''.

SEC. 131. VOLUNTARY PROVISION OF EMERGENCY SERVICES DURING COMMERCIAL 
                    FLIGHTS.

    (a) In General.--Subchapter II of chapter 449 of title 49, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 44944. Voluntary provision of emergency services

    ``(a) Program for Provision of Voluntary Services.--
            ``(1) Program.--The Under Secretary of 
        Transportation for Transportation Security shall carry 
        out a program to permit qualified law enforcement 
        officers, firefighters, and emergency medical 
        technicians to provide emergency services on commercial 
        air flights during emergencies.
            ``(2) Requirements.--The Under Secretary shall 
        establish such requirements for qualifications of 
        providers of voluntary services under the program under 
        paragraph (1), including training requirements, as the 
        Under Secretary considers appropriate.
            ``(3) Confidentiality of registry.--If as part of 
        the program under paragraph (1) the Under Secretary 
        requires or permits registration of law enforcement 
        officers, firefighters, or emergency medical 
        technicians who are willing to provide emergency 
        services on commercial flights during emergencies, the 
        Under Secretary shall take appropriate actions to 
        ensure that the registry is available only to 
        appropriate airline personnel and otherwise remains 
        confidential.
            ``(4) Consultation.--The Under Secretary shall 
        consult with appropriate representatives of the 
        commercial airline industry, and organizations 
        representing community-based law enforcement, 
        firefighters, and emergency medical technicians, in 
        carrying out the program under paragraph (1), including 
        the actions taken under paragraph (3).
    ``(b) Exemption From Liability.--An individual shall not be 
liable for damages in any action brought in a Federal or State 
court that arises from an act or omission of the individual in 
providing or attempting to provide assistance in the case of an 
in-flight emergency in an aircraft of an air carrier if the 
individual meets such qualifications as the Under Secretary 
shall prescribe for purposes of this section.
    ``(c) Exception.--The exemption under subsection (b) shall 
not apply in any case in which an individual provides, or 
attempts to provide, assistance described in thatparagraph in a 
manner that constitutes gross negligence or willful misconduct.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``44944. Voluntary provision of emergency services''.

    (c) Construction Regarding Possession of Firearms.--Nothing 
in this section may be construed to require any modification of 
regulations of the Department of Transportation governing the 
possession of firearms while in aircraft or air transportation 
facilities or to authorize the possession of a firearm in an 
aircraft or any such facility not authorized under those 
regulations.

SEC. 132. GENERAL AVIATION AND AIR CHARTERS.

    (a) Air Charter Program.--Within 90 days after the date of 
enactment of this Act, the Under Secretary of Transportation 
for Transportation Security shall implement an aviation 
security program for charter air carriers (as defined in 
section 40102(a)(13) of title 49, United States Code) with a 
maximum certificated takeoff weight of 12,500 pounds or more.
    (b) General Aviation Program.--Within 30 days after the 
date of enactment of this Act, the Under Secretary of 
Transportation for Transportation Security shall transmit a 
report on airspace and other security measures that can be 
deployed, as necessary, to improve general aviation security to 
the Senate Committee on Commerce, Science, and Transportation 
and the House of Representatives Committee on Transportation 
and Infrastructure. The Under Secretary may submit the report 
in both classified and redacted forms.

SEC. 133. DEFINITIONS.

    Except as otherwise explicitly provided, any term used in 
this title that is defined in section 40102 of title 49, United 
States Code, has the meaning given that term in that section.

SEC. 134. SENSE OF CONGRESS ON CERTAIN AVIATION MATTERS.

    (a) Flight Service Station Employees.--It is the sense of 
Congress that the Administrator of the Federal Aviation 
Administration should continue negotiating in good faith with 
flight service station employees of the Administration with a 
goal of reaching agreement on a contract as soon as possible.
    (b) War Risk Insurance.--It is the sense of Congress that 
the Secretary of Transportation should implement section 202 of 
the Air Transportation Safety and System Stabilization Act 
(Public Law 107-42) so as to make war risk insurance directly 
available to vendors, agents, and subcontractors of air 
carriers for all of their domestic operations.

SEC. 135. SENSE OF THE HOUSE OF REPRESENTATIVES.

    It is the sense of the House of Representatives that--
            (1) the Under Secretary of Transportation for 
        Security should develop security procedures to allow 
        passengers transporting a musical instrument on a 
        flight of an air carrier to transport the instrument in 
        the passenger cabin of the aircraft, notwithstanding 
        any size or other restriction on carry-on baggage but 
        subject to such other reasonable security procedures, 
        terms, and conditions as may be established by the 
        Under Secretary or the air carrier, including imposing 
        additional charges by the air carrier; and
            (2) an air carrier that transports mail under a 
        contract with the United States Postal Service should 
        transport any animal that the Postal Service allows to 
        be shipped through the mail.

SEC. 136. SHORT-TERM ASSESSMENT AND DEPLOYMENT OF EMERGING SECURITY 
                    TECHNOLOGIES AND PROCEDURES.

    Section 44903 of title 49, United States Code, is amended 
by adding at the end the following:
    ``(i) Short-Term Assessment and Deployment of Emerging 
Security Technologies and Procedures.--
            ``(1) In general.--The Under Secretary of 
        Transportation for Security shall recommend to airport 
        operators, within 6 months after the date of enactment 
        of the Aviation and Transportation Security Act, 
        commercially available measures or procedures to 
        prevent access to secure airport areas by unauthorized 
        persons. As part of the 6-month assessment, the Under 
        Secretary for Transportation Security shall--
                    ``(A) review the effectiveness of 
                biometrics systems currently in use at several 
                United States airports, including San Francisco 
                International;
                    ``(B) review the effectiveness of increased 
                surveillance at access points;
                    ``(C) review the effectiveness of card- or 
                keypad-based access systems;
                    ``(D) review the effectiveness of airport 
                emergency exit systems and determine whether 
                those that lead to secure areas of the airport 
                should be monitored or how breaches can be 
                swiftly responded to; and
                    ``(E) specifically target the elimination 
                of the `piggy-backing' phenomenon, where 
                another person follows an authorized person 
                through the access point.
        The 6-month assessment shall include a 12-month 
        deployment strategy for currently available technology 
        at all category X airports, as defined in the Federal 
        Aviation Administration approved air carrier security 
        programs required under part 108 of title 14, Code of 
        Federal Regulations. Not later than 18 months after the 
        date of enactment of this Act, the Secretary of 
        Transportation shall conduct a review of reductions in 
        unauthorized access at these airports.
            ``(2) Computer-assisted passenger prescreening 
        system.--
                    ``(A) In general.--The Secretary of 
                Transportation shall ensure that the Computer-
                Assisted Passenger Prescreening System, or any 
                successor system--
                            ``(i) is used to evaluate all 
                        passengers before they board an 
                        aircraft; and
                            ``(ii) includes procedures to 
                        ensure that individuals selected by the 
                        system and their carry-on and checked 
                        baggage are adequately screened.
                    ``(B) Modifications.--The Secretary of 
                Transportation may modify any requirement under 
                the Computer-Assisted Passenger Prescreening 
                System for flights that originate and terminate 
                within the same State, if the Secretary 
                determines that--
                            ``(i) the State has extraordinary 
                        air transportation needs or concerns 
                        due to its isolation and dependence on 
                        air transportation; and
                            ``(ii) the routine characteristics 
                        of passengers, given the nature of the 
                        market, regularly triggers primary 
                        selectee status.''.

SEC. 137. RESEARCH AND DEVELOPMENT OF AVIATION SECURITY TECHNOLOGY.

    (a) Funding.--To augment the programs authorized in section 
44912(a)(1) of title 49, United States Code, there is 
authorized to be appropriated an additional $50,000,000 for 
each of fiscal years 2002 through 2006 and such sums as are 
necessary for each fiscal year thereafter to the Transportation 
Security Administration, for research, development, testing, 
and evaluation of the following technologies which may enhance 
aviation security in the future. Grants to industry, academia, 
and Government entities to carry out the provisions of this 
section shall be available for fiscal years 2002 and 2003 for--
            (1) the acceleration of research, development, 
        testing, and evaluation of explosives detection 
        technology for checked baggage, specifically, 
        technology that is--
                    (A) more cost-effective for deployment for 
                explosives detection in checked baggage at 
                small- to medium-sized airports, and is 
                currently under development as part of the 
                Argus research program at the Transportation 
                Security Administration;
                    (B) faster, to facilitate screening of all 
                checked baggage at larger airports; or
                    (C) more accurate, to reduce the number of 
                false positives requiring additional security 
                measures;
            (2) acceleration of research, development, testing, 
        and evaluation of new screening technology for carry-on 
        items to provide more effective means of detecting and 
        identifying weapons, explosives, and components of 
        weapons of mass destruction, including advanced x-ray 
        technology;
            (3) acceleration of research, development, testing, 
        and evaluation of threat screening technology for other 
        categories of items being loaded onto aircraft, 
        including cargo, catering, and duty-free items;
            (4) acceleration of research, development, testing, 
        and evaluation of threats carried on persons boarding 
        aircraft or entering secure areas, including detection 
        of weapons, explosives, and components of weapons of 
        mass destruction;
            (5) acceleration of research, development, testing 
        and evaluation of integrated systems of airport security 
        enhancement, including quantitative methods of assessing 
        security factors at airports selected for testing such 
        systems;
            (6) expansion of the existing program of research, 
        development, testing, and evaluation of improved 
        methods of education, training, and testing of key 
        airport security personnel; and
            (7) acceleration of research, development, testing, 
        and evaluation of aircraft hardening materials, and 
        techniques to reduce the vulnerability of aircraft to 
        terrorist attack.
    (b) Grants.--Grants awarded under this subtitle shall 
identify potential outcomes of the research, and propose a 
method for quantitatively assessing effective increases in 
security upon completion of the research program. At the 
conclusion of each grant, the grant recipient shall submit a 
final report to the Transportation Security Administration that 
shall include sufficient information to permit the Under 
Secretary of Transportation for Security to prepare a cost-
benefit analysis of potential improvements to airport security 
based upon deployment of the proposed technology. The Under 
Secretary shall begin awarding grants under this subtitle 
within 90 days of the date of enactment of this Act.
    (c) Budget Submission.--A budget submission and detailed 
strategy for deploying the identified security upgrades 
recommended upon completion of the grants awarded under 
subsection (b), shall be submitted to Congress as part of the 
Department of Transportation's annual budget submission.
    (d) Defense Research.--There is authorized to be 
appropriated $20,000,000 to the Transportation Security 
Administration to issue research grants in conjunction with the 
Defense Advanced Research Projects Agency. Grants may be 
awarded under this section for--
            (1) research and development of longer-term 
        improvements to airport security, including advanced 
        weapons detection;
            (2) secure networking and sharing of threat 
        information between Federal agencies, law enforcement 
        entities, and other appropriate parties;
            (3) advances in biometrics for identification and 
        threat assessment; or
            (4) other technologies for preventing acts of 
        terrorism in aviation.

SEC. 138. EMPLOYMENT INVESTIGATIONS AND RESTRICTIONS.

    (a) In General.--Section 44936 of title 49, United States 
Code, is amended--
            (1) by inserting ``and a review of available law 
        enforcement data bases and records of other 
        governmental and international agencies to the extent 
        determined practicable by the Under Secretary of 
        Transportation for Transportation Security,'' after 
        ``check'' in subsection (a)(1)(A);
            (2) by striking ``in any case described in 
        subparagraph (C)'' in subsection (a)(1)(B) and 
        inserting ``and a review of available law enforcement 
        data bases and records of other governmental and 
        international agencies to the extent determined 
        practicable by the Under Secretary of Transportation 
        for Transportation Security'';
            (3) by striking ``will be'' in subsection 
        (a)(1)(B)(i) and inserting ``are'';
            (4) by striking ``and'' after the semicolon in 
        clause (ii) of subsection (a)(1)(B)
            (5) by redesignating clause (iii) of subsection 
        (a)(1)(B) as clause (iv);
            (6) by inserting after clause (ii) of subsection 
        (a)(1)(B) the following:
                            ``(iii) individuals who regularly 
                        have escorted access to aircraft of an 
                        air carrier or foreign air carrier or a 
                        secured area of an airport in the 
                        United States the Administrator 
                        designates that serves an air carrier 
                        or foreign air carrier; and'';
            (7) by striking subparagraphs (C), (D), and (E) of 
        subsection (a)(1) and redesignating subparagraph (F) as 
        subparagraph (D);
            (8) by inserting after subparagraph (B) of 
        subsection (a)(1) the following:
                    ``(C) Background checks of current 
                employees.--
                            ``(i) A new background check 
                        (including a criminal history record 
                        check and a review of available law 
                        enforcement data bases and records of 
                        other governmental and international 
                        agencies to the extent determined 
                        practicable by the Under Secretary of 
                        Transportation for Transportation 
                        Security shall be required for any 
                        individual who is employed in a 
                        position described in subparagraphs (A) 
                        and (B) on the date of enactment of the 
                        Aviation and Transportation Security 
                        Act.
                            ``(ii) The Under Secretary may 
                        provide by order (without regard to the 
                        provisions of chapter 5 of title 5, 
                        United States Code) for a phased-in 
                        implementation of the requirements of 
                        this subparagraph.'';
            (9) by striking ``107.31(m)'' in subparagraph (D), 
        as redesignated, and inserting ``107.31(m)(1) or (2)'';
            (10) by striking ``the date of enactment of this 
        subparagraph.'' in subparagraph (D), as redesignated, 
        and inserting ``November 22, 2000. The Under Secretary 
        shall work with the International Civil Aviation 
        Organization and with appropriate authorities of 
        foreign countries to ensure that individuals exempted 
        under this subparagraph do not pose a threat to 
        aviation or national security.'';
            (11) by striking ``carrier, or airport operator'' 
        in subsection (a)(2) and inserting ``carrier, airport 
        operator, or government'';
            (12) by striking ``carrier, or airport operator'' 
        in subsection (b)(1) and inserting ``carrier, airport 
        operator, or government'';
            (13) by striking ``carrier, or airport operator'' 
        in subsection (b)(3) and inserting ``carrier, airport 
        operator, or government''; and
            (14) by adding at the end of subsection (c)(1) 
        ``All Federal agencies shall cooperate with the Under 
        Secretary and the Under Secretary's designee in the 
        process of collecting and submitting fingerprints.''.
    (b) Records of Employment of Pilot Applicants.--Part A of 
subtitle VII is amended--
            (1) by moving subsections (f), (g), and (h) of 
        section 44936 from section 44936, inserting them at the 
        end of section 44703, and redesignating them as 
        subsections (h), (i), and (j), respectively; and
            (2) in subsections (i) and (j) of section 44703 (as 
        moved to the end of section 44703 by paragraph (1) of 
        this subsection), by striking ``subsection (f)'' each 
        place it appears and inserting ``subsection (h)''.

SEC. 139. ALCOHOL AND CONTROLLED SUBSTANCE TESTING.

    Chapter 451 of title 49, United States Code, is amended--
            (1) by striking ``contract personnel'' each place 
        it appears and inserting ``personnel'';
            (2) by striking ``contract employee'' each place it 
        appears and inserting ``employee'';
            (3) in section 45106(c) by striking ``contract 
        employees'' and inserting ``employees'';
            (4) by inserting after section 45106 the following:

``Sec. 45107. Transportation Security Administration

    ``(a) Transfer of Functions Relating to Testing Programs 
With Respect to Airport Security Screening Personnel.--The 
authority of the Administrator of the Federal Aviation 
Administration under this chapter with respect to programs 
relating to testing of airport security screening personnel are 
transferred to the Under Secretary of Transportation for 
Security. Notwithstanding section 45102(a), the regulations 
prescribed under section 45102(a) shall require testing of such 
personnel by their employers instead of by air carriers and 
foreign air carriers.
    ``(b) Applicability of Chapter With Respect to Employees of 
Administration.--The provisions of this chapter that apply with 
respect to employees of the Federal Aviation Administration 
whose duties include responsibility for safety-sensitive 
functions shall apply with respect to employees of the 
Transportation Security Administration whose duties include 
responsibility for security-sensitive functions. The Under 
Secretary of Transportation for Security, the Transportation 
Security Administration, and employees of the Transportation 
Security Administration whose duties include responsibility for 
security-sensitive functions shall be subject to and comply 
with such provisions in the same manner and to the same extent 
as the Administrator of the Federal Aviation Administration, 
the Federal Aviation Administration, and employees of the 
Federal Aviation Administration whose duties include 
responsibility for safety-sensitive functions, respectively.''; 
and
            (5) in the analysis for such chapter by inserting 
        after the item relating to section 45106 the following:

``45107. Transportation Security Administration.''.

SEC. 140. CONFORMING AMENDMENTS TO SUBTITLE VII.

    (a) Records of Employment of Pilot Applicants.--Part A of 
subtitle VII of title 49, United States Code, is amended--
            (1) by moving subsections (f), (g), and (h) of 
        section 44936 from section 44936, inserting them at the 
        end of section 44703, and redesignating them as 
        subsections (h), (i), and (j), respectively; and
            (2) in subsections (i) and (j) of section 44703 (as 
        moved to the end of section 44703 by paragraph (1) of 
        this subsection), by striking ``subsection (f)'' each 
        place it appears and inserting ``subsection (h)''.
    (b) Investigations and Procedures.--Chapter 461 of such 
title is amended--
            (1) in each of sections 46101(a)(1), 46102(a), 
        46103(a), 46104(a), 46105(a), 46106, 46107(b), and 
        46110(a) by inserting after ``(or'' the following: 
        ``the Under Secretary of Transportation for Security 
        with respect to security duties and powers designated 
        to be carried out by the Under Secretary or'';
            (2) by striking ``or Administrator'' each place it 
        appears and inserting ``, Under Secretary, or 
        Administrator'';
            (3) in section 46101(a)(2) by striking ``of 
        Transportation or the'' and inserting ``, Under 
        Secretary, or'';
            (4) in section 46102(b) by striking ``and the 
        Administrator'' and inserting ``, the Under Secretary, 
        and the Administrator'';
            (5) in section 46102(c) by striking ``and 
        Administrator'' each place it appears and inserting ``, 
        Under Secretary, and Administrator'';
            (6) in each of sections 46102(d) and 46104(b) by 
        inserting ``the Under Secretary,'' after 
        ``Secretary,'';
            (7) in the heading to section 46106 by striking 
        ``Secretary of Transportation and Administrator of the 
        Federal Aviation Administration'' and inserting 
        ``Department of Transportation''; and
            (8) in the item relating to section 46106 of the 
        analysis for such chapter by striking ``Secretary of 
        Transportation and Administrator of the Federal 
        Aviation Administration'' and inserting ``Department of 
        Transportation''.
    (c) Administrative.--Section 40113 of such title is 
amended--
            (1) in subsection (a)--
                    (A) by inserting after ``(or'' the 
                following: ``the Under Secretary of 
                Transportation for Security with respect to 
                security duties and powers designated to be 
                carried out by the Under Secretary or''; and
                    (B) by striking ``or Administrator'' and 
                inserting ``, Under Secretary, or 
                Administrator''; and
            (2) in subsection (d)--
                    (A) by inserting after ``The'' the 
                following: ``Under Secretary of Transportation 
                for Security or the'';
                    (B) by striking ``Administration'' the 
                second place it appears and inserting 
                ``Transportation Security Administration or 
                Federal Aviation Administration, as the case 
                may be,''; and
                    (C) by striking ``the Administrator 
                decides'' and inserting ``the Under Secretary 
                or Administrator, as the case may be, 
                decides''.
    (d) Penalties.--Chapter 463 of such title is amended--
            (1) in section 46301(d)(2)--
                    (A) by striking ``, chapter 449 (except 
                sections 44902, 44903(d), 44907(a)-(d)(1)(A) 
                and (d)(1)(C)-(f), 44908, and 44909),'';
                    (B) by inserting after the first sentence 
                the following: ``The Under Secretary of 
                Transportation for Security may impose a civil 
                penalty for a violation of chapter 449 (except 
                sections 44902, 44903(d), 44907(a)-(d)(1)(A), 
                44907(d)(1)(C)-(f), 44908, and 44909) or a 
                regulation prescribed or order issued under 
                such chapter 449.''; and
                    (C) by inserting ``Under Secretary or'' 
                before ``Administrator shall'';
            (2) in each of paragraphs (3) and (4) of section 
        46301(d) by striking ``Administrator'' each place it 
        appears and inserting ``Under Secretary or 
        Administrator'';
            (3) in section 46301(d)(8) by striking 
        ``Administrator'' and inserting ``Under Secretary, 
        Administrator,'';
            (4) in section 46301(h)(2) by inserting after 
        ``(or'' the following: ``the Under Secretary of 
        Transportation for Security with respect to security 
        duties and powers designated to be carried out by the 
        Under Secretary or'';
            (5) in section 46303(c)(2) by inserting ``or the 
        Under Secretary of Transportation for Security'' after 
        ``Federal Aviation Administration'';
            (6) in section 46311--
                    (A) by inserting after ``Transportation,'' 
                the following: ``the Under Secretary of 
                Transportation for Security with respect to 
                security duties and powers designated to be 
                carried out by the Under Secretary,'';
                    (B) by inserting after ``Secretary,'' each 
                place it appears the following: ``Under 
                Secretary,''; and
                    (C) by striking ``or Administrator'' each 
                place it appears and inserting ``, Under 
                Secretary, or Administrator'';
            (7) in each of sections 46313 and 46316 by 
        inserting after ``(or'' the following: ``the Under 
        Secretary of Transportation for Security with respect 
        to security duties and powers designated to be carried 
        out by the Under Secretary or''; and
            (8) in section 46505(d)(2) by inserting ``or the 
        Under Secretary of Transportation for Security'' after 
        ``Federal Aviation Administration''.

SEC. 141. SAVINGS PROVISION.

    (a) Transfer of Assets and Personnel.--Except as otherwise 
provided in this Act, those personnel, property, and records 
employed, used, held, available, or to be made available in 
connection with a function transferred to the Transportation 
Security Administration by this Act shall be transferred to the 
Transportation Security Administration for use in connection 
with the functions transferred. Unexpended balances of 
appropriations, allocations, and other funds made available to 
the Federal Aviation Administration to carry out such functions 
shall also be transferred to the Transportation Security 
Administration for use in connection with the functions 
transferred.
    (b) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, settlements, 
agreements, certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or 
        allowed to become effective by the Federal Aviation 
        Administration, any officer or employee thereof, or any 
        other Government official, or by a court of competent 
        jurisdiction, in the performance of any function that 
        is transferred by this Act; and
            (2) that are in effect on the effective date of 
        such transfer (or become effective after such date 
        pursuant to their terms as in effect on such effective 
        date), shall continue in effect according to their 
        terms until modified, terminated, superseded, set 
        aside, or revoked in accordance with law by the Under 
        Secretary of Transportation for Security, any other 
        authorized official, a court of competent jurisdiction, 
        or operation of law.
    (c) Proceedings.--
            (1) In general.--The provisions of this Act shall 
        not affect any proceedings or any application for any 
        license pending before the Federal Aviation 
        Administration at the time this Act takes effect, 
        insofar as those functions are transferred by this Act; 
        but such proceedings and applications, to the extent 
        that they relate to functions so transferred, shall be 
        continued. Orders shall be issued in such proceedings, 
        appeals shall be taken therefrom, and payments shall be 
        made pursuant to such orders, as if this Act had not 
        been enacted; and orders issued in any such proceedings 
        shall continue in effect until modified, terminated, 
        superseded, or revoked by a duly authorized official, 
        by a court of competent jurisdiction, or by operation 
        of law.
            (2) Statutory construction.--Nothing in this 
        subsection shall be deemed to prohibit the 
        discontinuance or modification of any proceeding 
        described in paragraph (1) under the same terms and 
        conditions and to the same extent that such proceeding 
        could have been discontinued or modified if this Act 
        had not been enacted.
            (3) Orderly transfer.--The Secretary of 
        Transportation is authorized to provide for the orderly 
        transfer of pending proceedings from the Federal 
        Aviation Administration.
    (d) Suits.--
            (1) In general.--This Act shall not affect suits 
        commenced before the date of the enactment of this Act, 
        except as provided in paragraphs (2) and (3). In all 
        such suits, proceeding shall be had, appeals taken, and 
        judgments rendered in the same manner and with the same 
        effect as if this Act had not been enacted.
            (2) Suits by or against faa.--Any suit by or 
        against the Federal Aviation Administration begun 
        before the date of the enactment of this Act shall be 
        continued, insofar as it involves a function retained 
        and transferred under this Act, with the Transportation 
        Security Administration (to the extent the suit 
        involves functions transferred to the Transportation 
        Security Administration under this Act) substituted for 
        the Federal Aviation Administration.
            (3) Remanded cases.--If the court in a suit 
        described in paragraph (1) remands a case to the 
        Transportation Security Administration, subsequent 
        proceedings related to such case shall proceed in 
        accordance with applicable law and regulations as in 
        effect at the time of such subsequent proceedings.
    (e) Continuance of Actions Against Officers.--No suit, 
action, or other proceeding commenced by or against any officer 
in his official capacity as an officer of the Federal Aviation 
Administration shall abate by reason of the enactment of this 
Act. No cause of action by or against the Federal Aviation 
Administration, or by or against any officer thereof in his 
official capacity, shall abate by reason of the enactment of 
this Act.
    (f) Exercise of Authorities.--Except as otherwise provided 
by law, an officer or employee of the Transportation Security 
Administration may, for purposes of performing a function 
transferred by this Act or the amendments made by this Act, 
exercise all authorities under any other provision of law that 
were available with respect to the performance of that function 
to the official responsible for the performance of the function 
immediately before the effective date of the transfer of the 
function under this Act.
    (g) Act Defined.--In this section, the term ``Act'' 
includes the amendments made by this Act.

SEC. 142. BUDGET SUBMISSIONS.

    The President's budget submission for fiscal year 2003 and 
each fiscal year thereafter shall reflect the establishment of 
the Transportation Security Administration.

SEC. 143. LAND ACQUISITION COSTS.

    In the case of a grant for land acquisition issued to an 
airport under chapter 471 of title 49, United States Code, 
prior to January 1, 1995, the Secretary of Transportation may 
waive the provisions of section 47108 of such title and provide 
an upward adjustment in the maximum obligation of the United 
States under that chapter to assist the airport in funding land 
acquisition costs (and associated eligible costs) that 
increased as a result of a judicial order.

SEC. 144. LIMITATION ON LIABILITY FOR ACTS TO THWART CRIMINAL VIOLENCE 
                    OR AIRCRAFT PIRACY.

    Section 44903 is amended by adding at the end the 
following:
    ``(h) Limitation on Liability for Acts To Thwart Criminal 
Violence or Aircraft Piracy.--An individual shall not be liable 
for damages in any action brought in a Federal or State court 
arising out of the acts of the individual in attempting to 
thwart an act of criminal violence or piracy on an aircraft if 
that individual reasonably believed that such an act of 
criminal violence or piracy was occurring or was about to 
occur.''.

SEC. 145. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED SERVICE.

    (a) In General.--Each air carrier that provides scheduled 
air transportation on a route shall provide, to the extent 
practicable, air transportation to passengers ticketed for air 
transportation on that route by any other air carrier that 
suspends, interrupts, or discontinues air passenger service on 
the route by reason of insolvency or bankruptcy of the other 
air carrier.
    (b) Passenger Obligation.--An air carrier is not required 
to provide air transportation under subsection (a) to a 
passenger unless that passenger makes alternative arrangements 
with the air carrier for such transportation within 60 days 
after the date on which that passenger's air transportation was 
suspended, interrupted, or discontinued (without regard to the 
originally scheduled travel date on the ticket).
    (c) Sunset.--This section does not apply to air 
transportation the suspension, interruption, or discontinuance 
of which occurs more than 18 months after the date of enactment 
of this Act.

SEC. 146. AIRCRAFT OPERATIONS IN ENHANCED CLASS B AIRSPACE.

    Upon request of an operator of an aircraft affected by the 
restrictions imposed under Notice to Airmen FDC 1/0618 issued 
by the Federal Aviation Administration, or any other notice 
issued after September 11, 2001, and prior to the date of 
enactment of this Act that restricts the ability of United 
States registered aircraft to conduct operations under part 91 
of title 14, Code of Federal Regulations, in enhanced class B 
airspace (as defined by such Notice), such restrictions shall 
cease to be in effect for the affected class of operator 
beginning on the 30th day following the request, unless the 
Secretary of Transportation publishes a notice in the Federal 
Register before such 30th day reimposing the restriction and 
explaining the reasons for the restriction.

SEC. 147. AVIATION WAR RISK INSURANCE.

    Section 44306(b) of title 49, United States Code, is 
amended by striking ``60 days'' each place it appears and 
inserting ``1 year''.

                     TITLE II--LIABILITY LIMITATION

SEC. 201. AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT 
                    AMENDMENTS.

    (a) Recovery of Collateral Source Obligations of 
Terrorists.--Section 405(c)(3)(B)(i) of the Air Transportation 
Safety and System Stabilization Act (49 U.S.C. 40101 note) is 
amended by striking ``obligations.'' and inserting 
``obligations, or to a civil action against any person who is a 
knowing participant in any conspiracy to hijack any aircraft or 
commit any terrorist act.''.
    (b) Extension of Liability Relief to Aircraft Manufacturers 
and Others.--Section 408 of that Act is amended--
            (1) by striking ``air carrier'' in the section 
        heading;
            (2) by striking subsection (a) and inserting the 
        following:
    ``(a) In General.--
            ``(1) Liability limited to insurance coverage.--
        Notwithstanding any other provision of law, liability 
        for all claims, whether for compensatory or punitive 
        damages or for contribution or indemnity, arising from 
        the terrorist-related aircraft crashes of September 11, 
        2001, against an air carrier, aircraft manufacturer, 
        airport sponsor, or person with a property interest in 
        the World Trade Center, on September 11, 2001, whether 
        fee simple, leasehold or easement, direct or indirect, 
        or their directors, officers, employees, or agents, 
        shall not be in an amount greater than the limits of 
        liability insurance coverage maintained by that air 
        carrier, aircraft manufacturer, airport sponsor, or 
        person.
            ``(2) Willful defaults on rebuilding obligation.--
        Paragraph (1) does not apply to any such person with a 
        property interest in the World Trade Center if the 
        Attorney General determines, after notice and an 
        opportunity for a hearing on the record, that the 
        person has defaulted willfully on a contractual 
        obligation to rebuild, or assist in the rebuilding of, 
        the World Trade Center.
            ``(3) Limitations on liability for new york city.--
        Liability for all claims, whether for compensatory or 
        punitive damages or for contribution or indemnity 
        arising from the terrorist-related aircraft crashes of 
        September 11, 2001, against the City of New York shall 
        not exceed the greater of the city's insurance coverage 
        or $350,000,000. If a claimant who is eligible to seek 
        compensation under section 405 of this Act, submits a 
        claim under section 405, the claimant waives the right 
        to file a civil action (or to be a party to an action) 
        in any Federal or State court for damages sustained as 
        a result of the terrorist-related aircraft crashes of 
        September 11, 2001, including any such action against 
        the City of New York. The preceding sentence does not 
        apply to a civil action to recover collateral source 
        obligations.''; and
            (3) by adding at the end of subsection (c) the 
        following: ``Subsections (a) and (b) do not apply to 
        civil actions to recover collateral source obligations. 
        Nothing in this section shall in any way limit any 
        liability of any person who is engaged in the business 
        of providing air transportation security and who is not 
        an airline or airport sponsor or director, officer, or 
        employee of an airline or airport sponsor.''.
    (c) Limitation of United States Subrogation Right.--Section 
409 of that Act is amended by striking ``title.'' and inserting 
``title, subject to the limitations described in section 
408.''.
    (d) Definitions.--Section 402 of that Act is amended--
            (1) by adding at the end of paragraph (1) the 
        following: ``The term `air carrier' does not include a 
        person, other than an air carrier, engaged in the 
        business of providing air transportation security.''.
            (2) by redesignating paragraphs (3) through (8) as 
        paragraphs (5) through (10), respectively; and
            (3) by inserting after paragraph (2) the following:
            ``(3) Aircraft manufacturer.--The term `aircraft 
        manufacturer' means any entity that manufactured the 
        aircraft or any parts or components of the aircraft 
        involved in the terrorist related aircraft crashes of 
        September 11, 2001, including employees and agents of 
        that entity.
            ``(4) Airport sponsor.--The term `airport sponsor' 
        means the owner or operator of an airport (as defined 
        in section 40102 of title 49, United States Code).''.
      And the House agree to the same.

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

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

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

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

                             1. short title

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

                              2. findings

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

            3. organization of security function within dot

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

          4. functions of deputy secretary or under secretary

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

             5. pay of deputy secretary or under secretary

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

                               6. reports

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

                         6A. enhanced security

Senate bill
      Section 115: 120 day report on the following issues:
            (1) Requiring verification of airport employees' 
        identity.
            (2) Installing switches so flight attendants can 
        notify pilots of a hijacking.
            (3) Revalidating airline and airport employee 
        identification cards.
            (4) Updating strategy for dealing with hijackings.
            (5) Technology to improve communication between 
        aircraft and ground facilities.
      Section 211: DOT shall study options for improving 
positive IDs of passengers at check-in counters and boarding 
areas. Report required in 6 months.
House amendment
      Section 106: Requires the Under Secretary to address the 
issues listed below and to report 6 months after the date of 
enactment on the progress being made in implementing each.
      A similar report would have to be submitted each year 
thereafter until all the items had either been implemented or 
rejected:
            (1) Develop procedures (such as barrel roles or 
        depressurizing the aircraft) and authorize equipment 
        (such as lethal or non-lethal weapons) to help the 
        pilot defend the aircraft against hijackers.
            (2) After consultation with the FAA, find ways to--
                    (A) limit access to the cockpit;
                    (B) strengthen cockpit doors;
                    (C) use video cameras to alert pilots to 
                problems in the passenger cabin without having 
                to open the cockpit door;
                    (D) ensure that the aircraft transponder 
                cannot be turned off in flight.
            (3) Impose standards for the screening or 
        inspection of vehicles and employees of aircraft 
        fuelers, caterers, cleaners, and others who have access 
        to aircraft and secure areas of airports.
            (4) Require airlines to provide emergency call 
        capability from aircraft and trains.
            (5) Use various technologies, such as voice stress 
        analysis, to prevent a dangerous person from boarding a 
        plane.
            (6) Develop certification standards for individual 
        screeners.
            (7) Establish performance goals and use Threat 
        Image Projection (TIP) or similar devices to test 
        whether screeners are meeting those goals or 
        certification standards.
            (8) Develop ways for airlines to have access to law 
        enforcement and immigration data bases to ensure that 
        dangerous people do not board their planes.
            (9) Use the profiling system known as CAPS to not 
        only give special scrutiny to selected checked baggage 
        but also to the passengers who fit the profile and 
        their carry-on baggage.
            (10) Use technology to ensure that airport and 
        airline employees and law enforcement officers are who 
        they claim to be.
            (11) Install switches in the passenger cabin so 
        that flight attendants can discreetly notify a pilot if 
        there is a problem.
            (12) Change the training of airline personnel in 
        light of the change in the methods and goals of 
        hijackers as evidenced by the attack of September 11th.
            (13) Provide for background checks for those 
        seeking flying lessons on large aircraft or flight 
        simulators of such aircraft.
            (14) Enter into agreements allowing trained law 
        enforcement personnel of other agencies to travel with 
        guns in order to assist a sky marshal.
            (15) Perform more thorough background checks 
        (including review of immigration and other government 
        records) of airport screeners, student pilots, and 
        others who have unescorted access to secure areas of 
        the airport.
            (16) Establish a uniform system for identifying law 
        enforcement personnel authorized to carry a gun on 
        board to ensure they are who they claim to be.
            (17) Allow airlines to implement trusted passenger 
        programs to use technology to expedite screening for 
        those passengers that wish to participate.
            (18) Develop security procedures for stem cells and 
        other medical containers that cannot be opened or x-
        rayed.
            (19) Develop security procedures to allow musical 
        instruments to be carried in the passenger cabin.
            (20) Provide for the use of wireless devices to 
        enable communications among airport security personnel 
        about potential threats.
Conference substitute
      The Under Secretary shall decide upon establishing 
security measures to: ensure that the flight transponder cannot 
be turned off in flight; require airlines to provide emergency 
call capability from aircraft and trains; use voice stress 
analysis, biometric, and other technologies to prevent 
dangerous persons from boarding a plane; establish a uniform 
system for identifying law enforcement personnel traveling with 
firearms to ensure they are who they claim to be; require the 
consideration of alternative security procedures that would not 
damage medical products; allow airlines to implement trusted 
passenger programs to use technology to expedite screening on a 
voluntary basis; and, provide for the use of technology to 
enhance communications among airport security personnel about 
potential threats. The conferees encourage efforts by the 
Transportation Security Administration and professional 
organizations representing industry to use biometric 
information, such as fingerprints collected initially as input 
to the background check process, for future verification of 
identity at access control points to secure airport areas. The 
Conferees applaud efforts to improve day-to-day airport 
security by utilizing this raw biometric information collected 
from individuals as a recurrent identifier for access to secure 
areas. The Conferees urge the Transportation Security 
Administration to work with industry organizations that can 
assist in the process of background checks, record-keeping, and 
universal access control data.

               7. responsibility of the attorney general

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

                             8. transition

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

                      9. technology and equipment

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

                  10. airworthiness objections by faa

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

        11. role of national transportation safety board (ntsb)

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

                  12. Biological and chemical weapons

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

                     13. oversight and coordination

Senate bill
      Section 103: Establishes Aviation Security Oversight 
Council (ASOC), chaired by DOT Secretary and composed of DOJ, 
DOD, Treasury, CIA, and any other agency head DOT and DOJ 
determine to be appropriate.
House bill
      Section 112: Establishes Transportation Security 
Oversight Board (TSOB) chaired by DOT Secretary and composed of 
DOJ, DOD, Treasury, and either NSC or Homeland Security. TSOB 
shares intelligence, reviews emergency rules, and oversees 
actions of Under Secretary.
      Establishes Advisory Council, composed of industry, 
labor, families, and others to advise Under Secretary on 
security matters.
Conference substitute
      The Conference Report establishes the Transportation 
Security Oversight Board (TSOB) chaired by the Secretary of DOT 
and composed of DOJ, DOD, Treasury, CIA, NSC and Homeland 
Security. The TSOB may review and ratify or disapprove 
regulations issued by the Under Secretary; facilitate the 
coordination of intelligence, security and law enforcement 
activities affecting transportation; and, perform other duties 
including making recommendations to the Under Secretary for use 
in combating threats to the integrity of the nation's 
transportation system.

                             14. rulemaking

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

                         15. inspector general

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

                     16. cross checking data bases

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

                          17. terrorism report

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

                         18. strategic planning

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

                          19. cockpit security

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

                            20. air marshals

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

                             21. screening

Senate bill
      Section 108: Attorney General, in consultation with DOT, 
shall provide for screening of all passengers, property, mail, 
and cargo that will be carried aboard an aircraft.
      Federal employees shall do screening.
      Airport and airline employees shall be screened in the 
same way, except alternative methods may be used for security 
personnel.
      Attorney General shall use screening technology approved 
by FAA.
      Law enforcement personnel shall be deployed at each 
screening location.
      At the 100 largest airports, additional police may be 
ordered.
      Section 105(f): Report from DOT and DOJ required within 
120 days on effectiveness of security screening.
      Section 106: DOJ and DOT may permit operational 
flexibility to tailor screening needs for seasonal variations, 
aircraft types, and special needs of small airports.
      Section 108: Attorney General may require non-hub or 
smaller airports to use State or local law enforcement if the 
screening will be equivalent to that at larger airports, the 
training meets Federal standards, the airport is reimbursed by 
funds made available by this Act, and the airport is consulted.
House bill
      Section 102: Federal government is responsible for 
screening passengers and property on passenger aircraft that 
originate in the U.S. Silent on whether screeners are to be 
Federal employees or private contractors. Under Secretary shall 
deputize screeners to enforce Federal laws, but not to arrest 
people. Screeners must have common uniforms. Must be supervised 
by uniformed Federal employees.
      Section 107: Under Secretary should consider 
certificating screeners and use TIP or similar technologies to 
measure their performance and revoke their certification if 
their performance is inadequate.
      Section 104: Airport required to deploy law enforcement 
or military personnel at each screening location. Law 
enforcement can be either Federal or local.
Conference substitute
      The Conference Report requires the Federal government to 
hire, train and deploy Federal screeners, Federal managers, 
Federal security personnel and Federal law enforcement within 1 
year. The participants in this Federal security workforce will 
not be able to strike or engage in work stoppages, and can be 
fired at the discretion of the Secretary if they are not able 
to adequately perform their duties.
      The Conferees recognize that, in order to ensure that 
Federal screeners are able to provide the best security 
possible, the Secretary must be given wide latitude to 
determine the terms of employment of screeners. The Conference 
Committee expects that, in fixing the terms and conditions of 
employment the Secretary shall establish benefits and 
conditions of employment. The Conference Committee also 
recognizes that, in order to hire and retain screeners, the 
Secretary should also ensure that screeners have access to 
Federal health, life insurance, and retirement benefits, as 
well as workers' compensation benefits. The Committee believes 
that screening personnel must also be given whistleblower 
protections so that screeners may report security conditions 
without fear of reprisal.
      The Conference Report requires the DOT to assume existing 
screening company contracts as soon as possible, but no later 
than 90 days after enactment of this legislation. The contracts 
for existing screeners can be extended for up to 6 months, and 
the DOT would have the option to extend contracts for no longer 
than 3 months, if necessary, to continue screening. DOT may 
also authorize additional Federal law enforcement, National 
Guard, and other personnel immediately to address the aviation 
security needs of the country.
      The Conferees direct the Secretary to provide a report 
after one year from the date of enactment certifying deployment 
of the Federal screeners. Two years after certification 
airports can opt out of the Federalization of the screener 
level of the Federal workforce if the Secretary determines that 
these facilities would continue to provide an equal or higher 
level of security. Companies will be barred from providing 
screening if they violate federal standards, are found to allow 
repeated failures of the system, or prove to be a security 
risk. The DOT will also establish a Pilot Program for 5 
airports, one from each category type, to apply for the use of 
private contract screeners.
      Within 1 year after the date of enactment of the Act, the 
conferees expect the Transportation Security Administration to 
submit a report to the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Committee 
on Transportation and Infrastructure on the screening 
requirements applicable to passengers boarding, and property 
being carried aboard, aircraft with 60 seats or less used in 
scheduled passenger service with recommendations for any 
necessary changes in those requirements.

                   22. citizenship of security firms

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

              23. training of pilots and flight attendants

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

         24. how flight attendants notify pilots of a hijacking

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

             25. provision of personnel from other agencies

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

                 26. airport perimeter access security

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

       27. individuals with access to secure areas of the airport

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

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

Senate bill
      Section 106(b): FAA, in consultation with local law 
enforcement, shall reexamine the need for 300 feet restriction.
House bill
      Section 121: Removes this parking ban if the airport, in 
consultation with local law enforcement, certifies to DOT, 
after doing a threat assessment, that safeguards are in place 
to protect public safety.
Conference substitute
      The Conferees have determined that all airports must 
consult with local law enforcement and inform DOT that proper 
safeguards are in place to ensure that parked vehicles are not 
a security risk. Each airport must submit views regarding its 
assessment of the needs of their facility.

                          29. checked baggage

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

        30. computer assisted passenger profiling system (capps)

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

        31. deputizing for enforcement of federal security laws

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

                  32. hiring and training of screeners

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

                      33. citizenship of screeners

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

                        34. status of screeners

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

                        35. strikes by screeners

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

                         36. background checks

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

                      37. research and development

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

                           38. flight schools

Senate bill
      Section 111: Regarding jet-propelled aircraft, a person 
shall not give flight instruction, including instruction in 
simulator, to an alien (or other person specified by DOT) 
unless DOJ issues that person a certificate of completion of 
the background check of the alien. Requests for the background 
check shall be made jointly by the alien and the flight school. 
Investigation must be completed in 30 days. Investigation 
includes fingerprint check, immigration check, and a 
determination of whether alien is a national security risk. 
Expedited procedures shall be developed for an alien seeking 
recurrent training. Penalties for violations shall be developed 
by DOT rulemaking. Flight schools shall report aliens that they 
train.
      Section 111(c): DOT and State shall work with ICAO to 
improve screening of student pilots.
House bill
      Section 106(13): The Under Secretary should consider 
requiring background checks on individuals seeking flying 
lessons (including simulator lessons) on aircraft weighing more 
than 12,500 pounds. Report in 6 months and annually thereafter 
until the Under Secretary implements the checks or decides not 
to require them.
Conference substitute
      The Conferees have determined that flight school training 
for aircraft with a minimum certificated weight of 12,500 
pounds or more should not be allowed for any alien within the 
United States unless they have passed a sufficient background 
check. Such individuals seeking to attend flight school may 
begin pilot training after 45 days or upon being certified as 
having passed a background investigation regarding their 
criminal history and immigration status. Asecurity awareness 
program will be developed to assist employees that work at flight 
schools by helping to increase their awareness of a potential threat.

                             39. penalties

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

                       40. intrastate air service

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

                41. airline computer reservation systems

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

                                42. fees

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

                           43. authorization

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

                          44. airport funding

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

                         45. competition plans

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

                  46. reporting suspicious activities

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

                           47. arming pilots

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

                        48. isolated communities

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

                     49. supplies on board aircraft

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

                          50. airman registry

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

                        51. passenger manifests

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

                      52. results-based management

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

                        53. employment register

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

                        54. training facilities

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

                       55. airspace restrictions

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

                             56. volunteers

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

                      57. limitation on liability

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

                     58. general aviation security

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

               59. funding for general aviation airports

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

                  60. conforming amendment to irs code

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

                       61. technical corrections

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

                      62. alcohol and drug testing

Senate bill
      No provision.
House bill
      Section 115: Amends existing law to account for the 
transfer of functions from the FAA to the TSA.
Conference substitute
      The Conference Report amends existing law to transfer 
alcohol and drug testing functions from the FAA to the TSA.

                       63. conforming amendments

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

                         64. savings provision

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

                         65. budget submissions

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

                           66. air ambulances

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

         67. passengers who bought tickets on bankrupt airlines

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

                  68. flight service station employees

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

                         69. war risk insurance

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

                              70. animals

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

                          71. Carry-on Baggage

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

                     72. USPS Mail Policy in Alaska

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

                        73. victims compensation

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

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

                                  
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