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[Senate Report 107-293]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 623
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-293
_______________________________________________________________________

  

                   AVIATION SECURITY IMPROVEMENT ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 2949

               September 30, 2002.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                      one hundred seventh congress

                             second session

              ERNEST F. HOLLINGS, South Carolina, Chairman

DANIEL K. INOUYE, Hawaii             JOHN MCCAIN, Arizona
JOHN D. ROCKEFELLER IV, West         TED STEVENS, Alaska
Virginia                             CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts         TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana            KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA J. SNOWE, Maine
RON WYDEN, Oregon                    SAM BROWNBACK, Kansas
MAX CLELAND, Georgia                 GORDON SMITH, Oregon
BARBARA BOXER, California            PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina         JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri              GEORGE ALLEN, Virginia
BILL NELSON, Florida

                     Kevin D. Kayes, Staff Director

                       Moses Boyd, Chief Counsel

                      Gregg Elias, General Counsel

      Jeanne Bumpus, Republican Staff Director and General Counsel

             Ann Begeman, Republican Deputy Staff Director

             Robert W. Chamberlin, Republican Chief Counsel

                                  (ii)
                                                       Calendar No. 623
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-293

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

 
                   AVIATION SECURITY IMPROVEMENT ACT

                                _______
                                

               September 30, 2002.--Ordered to be printed

                                _______
                                

      Mr. Hollings, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 2949]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2949) to provide for enhanced 
aviation security, and for other purposes, having considered 
the same, reports favorably thereon with amendments and 
recommends that the bill (as amended) do pass.

                          Purpose of the Bill

  On September 11, 2001, terrorists used United States 
commercial aircraft as guided missiles, killing thousands of 
innocent victims in New York, Washington, D.C., and 
Pennsylvania. The unprecedented attacks led to passage of the 
Aviation and Transportation Security Act (ATSA, P.L. 107-71, 
November 19, 2001). President Bush signed the legislation after 
two months of debate between the Senate and the House of 
Representatives over the issue of the responsibilities of the 
Federal government to provide security for the Nation's 
aviation system. Ultimately, Congress placed primary 
responsibility for aviation security with the Federal 
government.
  S. 2949 is intended to address a number of issues that have 
arisen since the passage of ATSA, including the ability of the 
Transportation Security Administration (TSA) to complete its 
formidable task of installing explosive detection systems (EDS) 
at airports and ensuring that carriers have available, for the 
short term, war risk insurance coverage. The bill also makes 
technical corrections to ATSA.
  Since enactment of ATSA, the newly created TSA has struggled 
to meet aggressive Congressional deadlines to hire, train, and 
deploy more than 30,000 Federal security screeners (by November 
18, 2002), and thousands of air marshals, and to install new 
EDS by December 31, 2002. Admiral Loy (Ret.), the Acting Under 
Secretary of Transportation for Security, testified before the 
Senate Committee on Commerce, Science, and Transportation (the 
Committee) on September 10, 2002, that TSA would hire 32,000 
screeners by mid-September and anticipated meeting the November 
18 deadline. With respect to the December 31, 2002, EDS 
deadline, Admiral Loy noted that more than 90 percent of the 
airports would be ready although a few airports would need 
additional time.

                          Background and Needs

  The bill contains elements of several introduced bills 
referred to the Committee, including the following: S. 1794, 
the Airport Checkpoint Enhancement Act (Senator Cleland); S. 
1980, regarding detection of false identification (Senator 
Boxer); S. 2656, regarding air cargo security (Senator Snowe); 
S. 2668, regarding cargo security (Senator Hutchison); S. 2735, 
the Aviation Security Enhancement Act of 2002 (Senator Ensign); 
and S. 2642, regarding flight school training (Senator Nelson 
of Florida).

                             I. BACKGROUND

  On November 16, 2001, Congress passed ATSA in response to the 
terrorist attacks on September 11. The Act, which was signed 
into law on November 19, implemented a new regime for aviation 
security and created the TSA within the Department of 
Transportation (DOT) to oversee security for all modes of 
transportation. ATSA includes numerous provisions and deadlines 
intended or designed to increase aviation security.

                     II. SCREENING OF CHECKED BAGS

  ATSA sets forth numerous deadlines for DOT and TSA to meet in 
an effort to continually improve aviation security. One of the 
first significant deadlines involved the screening of all 
checked bags by January 18, 2002, which was 60 days after 
enactment of the new law.
  To meet this deadline, TSA required continuous use of 
certified bulk EDS \1\ to screen checked bags at those airports 
where EDS are located, and ensured the use of positive 
passenger bag match \2\ for checked baggage screening at those 
airports where EDS is currently unavailable. Also, as before 
September 11, the bags of passengers selected by CAPPS \3\ will 
continue to be screened by EDS. ATSA provided other security 
improvements as well, including greater use of explosive trace 
detection systems (ETD) \4\ on checked baggage, more use of 
explosive detection canine teams, and physical inspection of 
some checked bags.
---------------------------------------------------------------------------
    \1\ The term EDS commonly refers to Federal Aviation 
Administration-certified EDSs, which are essentially complex X-ray 
machines. The most widely deployed EDS machine uses computer tomography 
technology, much like a medical CAT scan, to take numerous cross-
sectional images of a bag. Unlike normal X-ray machines that are used 
to examine carry-on bags, EDSs are designed to detect threats 
automatically, without human analysis or intervention. EDS machines are 
about the size and weight of a sport utility vehicle.
    \2\ To protect against bombings by terrorists unwilling to commit 
suicide, the positive passenger-bag matching procedure matches 
passengers with their checked bags, and bags whose owners do not 
actually board the aircraft are removed before takeoff. Before this 
year, this procedure was used primarily on international flights.
    \3\ Airlines use a computer program, known as the Computer Assisted 
Passenger Prescreening System (CAPPS), to select those passengers who 
pose the greatest risk and whose baggage should be subject to a more 
rigorous inspection. Because most passengers do not fit the computer 
profile, most checked baggage is not subject to examination by an EDS.
    \4\ ETD devices can detect the presence of explosive materials in a 
passenger's checked or carry-on bags. Using ETD equipment, a screener 
swabs baggage and puts the results through a machine that looks for the 
residue of certain chemicals that remain on a bag for an extended 
period of time. ETD machines are much smaller and lighter than EDSs.
---------------------------------------------------------------------------
  When bag-match is the method used to screen checked bags 
under guidelines issued by DOT, it is only being done on 
originating flights, not on connecting flights. This has raised 
the concerns of some that bag-match must be done on each 
segment of a trip if it is to be an effective deterrent. DOT 
estimates that about 70 percent of all bags fly directly to 
their destination, while 30 percent make a connection. It is 
this 30 percent of baggage that appears to potentially pose a 
risk under the DOT's guidelines. The airlines contend that if 
bag matching requirements are extended to connecting bags, the 
system will slow down significantly each time an airline 
employee has to climb inside a cargo hold and remove a bag 
because the passenger did not board the connecting flight. TSA 
is currently using a pilot program to test the feasibility of 
requiring bag match on connecting flights. Information provided 
by Professor Barrett, of the Massachusetts Institute of 
Technology, suggests that passenger bag match can be improved.
  In addition to the January 18 deadline, ATSA established 
another firm deadline regarding the screening of all checked 
baggage. By December 31, 2002, the Under Secretary of 
Transportation for Security is required to take all necessary 
action to ensure that EDS are deployed at 429 United States 
airports in sufficient numbers to screen all checked baggage. 
On May 18, 2002, TSA issued a statutorily-mandated report to 
the congressional authorizing committees on the deployment of 
systems to detect explosives pursuant to ATSA.
  The May 18 report included a general installation schedule. 
In order to meet the end-of-the-year deadline, DOT has decided 
to use a mix of the EDS machines and ETD equipment. At some 
airports, ETD devices will be the only ones used, while a 
combination of EDS and ETD will be used at other airports. 
About three-quarters of airports would use ETDs exclusively.
  On June 7, TSA entered into a contract with Boeing to conduct 
site surveys and to install the EDS/ETD equipment at all of the 
429 airports.
  As of the end of September 2002, 140 EDS machines and 789 ETD 
devices were deployed at airports throughout the country. For 
fiscal year (FY) 2002, DOT has requested additional funds to 
purchase a significant amount of additional equipment: 1,100 
EDS units and 5,373 ETD units (1,100 of which will be used in 
conjunction with the EDS units). Many, if not most, of the EDS 
machines will be installed in airport lobbies because it is not 
possible to integrate them into the hundreds of different 
baggage handling systems by the end of the year. Ultimately, 
TSA plans to have such equipment integrated into baggage 
handling systems, but it may take many years and cost a 
significant amount of money. Given the large size and weight of 
EDSs, even airport lobby installations at some airports can be 
problematic.
  According to DOT Secretary Mineta, the decision to use ETD 
equipment was based on balancing limited financial resources to 
meet the statutory mandate. That decision was the result of 
negotiations between DOT and the Office of Management and 
Budget and hinged, in part, on the fact that each EDS machine 
costs approximately $1.1 million (including installation) and 
thousands would be needed to cover all 429 airports. Some are 
concerned that smaller, rural airports, which are not as likely 
to get EDS machines, will be affected significantly as people 
decide to forgo the new security-related hassles involved with 
flying and choose to drive unless there is a dignified, secure 
way to have bags opened for ETD swabbing. The decision to use 
ETD's also drives the number of employees needed higher, as the 
baggage throughput rate for EDS is higher than for ETD's-it 
takes approximately three ETDs to equal the throughput of the 
automated EDS machines.
  At the September 10 hearing, Admiral Loy acknowledged that 
TSA would not be able to meet the deadline at a small number of 
airports-fewer than 10 percent of the 429 airports covered by 
the law. In many of those cases, it would not be physically 
possible in the time remaining to install EDS equipment without 
severe disruptions of airport operations. He did note that 
those airports that may miss the deadline serve a significant 
majority of airline passengers. In other words, the relatively 
small number of airports where the deadline cannot be met 
account for most of the passenger traffic. Admiral Loy stated 
that he did not support a wholesale delay in the December 31 
deadline. Instead, he said that TSA would work with those 
airports that needed a modest amount of additional time to meet 
the requirements of the law. In the interim, bags will be 
screened by one of the alternate means already provided for in 
the law. \5\
---------------------------------------------------------------------------
    \5\ ATSA requires that ``if explosive detection equipment at an 
airport is unavailable, all checked baggage is screened by an 
alternative means.'' The law listed the following four possible 
alternative means for the screening of checked baggage: (1) a positive 
passenger bag match program; (2) manual search, which involves opening 
the bag and searching through it by hand; (3) search by canine 
explosive detection units (i.e., bomb sniffing dogs) in combination 
with other means; or (4) other means or technology approved by the 
Under Secretary for Transportation Security.
---------------------------------------------------------------------------

                         B. AIR CARGO SECURITY

  With respect to cargo that is transported by air, ATSA 
contained two key provisions. The first dealt with passenger 
aircraft and required that TSA provide for the screening of all 
cargo and mail that will be carried aboard such aircraft. 
Although ATSA requires all checked bags to be screened by EDS 
by December 31, 2002, no timetable was specified for screening 
cargo, nor was there a definition of screening provided. The 
second provision required that 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 as soon as 
practicable after the date of enactment of ATSA.
  Almost all passenger flights carry cargo alongside luggage in 
the belly of the plane. It can be anything from pallets of 
computer chips to refrigerated cartons of chicken. According to 
Federal Aviation Administration (FAA) estimates, approximately 
22 percent of all air cargo loaded in the United States in 2000 
was carried on passenger flights.

                    1. ACTIVITY BEFORE SEPTEMBER 11

  The air-cargo system involves numerous participants and all 
require some level of security oversight. Typically, a shipper 
takes packages to an indirect air carrier (IAC, also known as a 
freight forwarder), who consolidates packages from many 
shippers into containers. The IAC then uses trucks, either its 
own or hired, to deliver the bulk freight to air carriers for 
transport.
  Before last year's attack, the FAA was generally responsible 
for oversight of civil aviation security. Much of the focus of 
regulation and oversight was on cargo carried aboard passenger 
aircraft. There were few security measures applicable to items 
carried on all-cargo aircraft.
  Front-line responsibility for screening cargo fell on two 
groups: air carriers and IACs. (An IAC is defined as any person 
or entity, excluding an air carrier, that engages indirectly in 
the transportation of property by air, and uses the services of 
a passenger air carrier. This does not include the United 
States Postal Service.) Both were required to adopt and carry 
out FAA-approved security programs.
  The key element of cargo security before last year was the 
Known Shipper Program. A known shipper is essentially one that 
has an established reputation. This program allowed an air 
carrier or IAC to transport a package with no more screening 
than an examination of its exterior. Packages from unknown 
shippers would be screened by X-ray or physically inspected 
before being placed aboard a passenger aircraft.
  Before September 11, the DOT Inspector General (IG) had been 
conducting tests of cargo security. The IG found that air 
carriers and IACs were not always complying with the FAA's 
known shipper program, and the FAA had not developed and 
implemented an adequate policy or oversight system to ensure 
compliance.

                     2. ACTIONS SINCE SEPTEMBER 11

  ATSA placed responsibility for virtually all aviation 
security matters, including air cargo, under the jurisdiction 
of TSA. But prior to the enactment of ATSA, a number of 
important changes were implemented after September 11 regarding 
the shipment of cargo on passenger air carriers. One of the 
main changes is that only cargo from known shippers is accepted 
on passenger air carriers. All cargo from unknown shippers and 
mail weighing more than 16 ounces is being diverted to all-
cargo air carriers until further notice.
  The continuation of the Known Shipper Program is TSA's 
primary means of compliance with ATSA screening mandates. 
According to the agency, it has strengthened the process 
through which a shipper becomes ``known.''
  Many of the other changes implemented by TSA are sensitive or 
classified information.

                    3. AIR CARGO ISSUES AND CONCERNS

  One of the key problems with any attempt to examine all cargo 
on passenger aircraft at this time is that any type of physical 
inspection or electronic screening would be extremely difficult 
to carry out-technology limitations, cost, and time factors all 
are problematic because the size and nature of air cargo can 
vary widely. According to one media report, TSA computer models 
have determined that breaking down all cargo containers, 
inspecting, and reassembling them would allow airports to 
process only 4 percent of the freight they receive daily.
  The IG has expressed some concerns that TSA's cargo security 
program continues to rely on the Known Shipper Program, which 
has weaknesses, and that little cargo is actually screened. The 
IG believes that TSA must reevaluate its program to determine 
whether current procedures should be retained, identify new 
principles and controls that should be added, and develop a 
strategic plan to screen all cargo. In addition, the IG 
advocates a requirement that a provider of cargo transportation 
lose its certification when TSA inspections and testing have 
continuously found the provider in noncompliance with cargo 
security requirements.

                          Legislative History

  S. 2949 was introduced on September 17 by Senator Hollings. 
It was co-sponsored by Senators McCain, Rockefeller, Hutchison, 
Boxer, Kerry, and Reid. Since the beginning of the year, the 
Committee has held 6 hearings on aviation security issues. The 
2 most recent hearings focused on the issues of (1) TSA's 
ability to meet the year-end deadline for deployment of EDS 
(held September 10), and (2) air cargo security (held September 
17). Both of these topics are addressed in the legislation. The 
bill also includes a technical amendment (Senators Hollings and 
McCain), as well as amendments regarding flight restrictions 
(Senator Breaux), flight schools (Senator Nelson of Florida), 
and reports (Senator Hutchison).

                            Estimated Costs

  In compliance with subsection (a)(3) of paragraph 11 of rule 
XXVI of the Standing Rules of the Senate, the Committee states 
that, in its opinion, it is necessary to dispense with the 
requirements of paragraphs (1) and (2) of that subsection in 
order to expedite the business of the Senate.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:
  The requirements of S. 2949 involve actions that the Federal 
government and aviation entities currently participate in on a 
routine basis, and should produce limited additional regulatory 
impact on related industries or burden on the government. The 
legislation would have minimal effect on the number or types of 
individuals and businesses regulated, the economic impact of 
such regulation, the personal privacy of affected individuals, 
or the paperwork required from such individuals and businesses.

                       NUMBER OF PERSONS COVERED

  S. 2949 is intended to improve aviation security by making 
technical corrections and other modifications to P.L. 107-71, 
the Aviation and Transportation Security Act (ATSA). The bill 
affects TSA and other entities already subject to FAA rules and 
regulations, and therefore the number of persons covered should 
be consistent with the current levels of individuals impacted 
under the provisions that are addressed in the bill.

                            ECONOMIC IMPACT

  S. 2949 is not expected to have an adverse impact on the 
nation's economy. A few provisions in the bill are expected to 
have a more substantial economic effect than the rest of the 
legislation. Title I of the legislation would provide some 
flexibility for TSA regarding the deployment of EDSs at all 
commercial airports in the United States, and, rather than 
requiring potentially expensive interim solutions, would allow 
for techniques that maintain customer service while the process 
of implementing more efficient security systems continues. 
Title V would improve the availability and coverage of war risk 
insurance for aviation entities, a matter that is very 
significant to air carriers as their insurance rates have risen 
by hundreds of millions of dollars since September 11, 2001. It 
is anticipated that both Title I and Title V would have 
positive economic impacts to their respective areas, and should 
provide significant support to the aviation industry. Title II 
addresses cargo security and would authorize the necessary 
funding to establish a system that ensures all air cargo is 
secure by requiring TSA and the air cargo industry to take 
steps to protect the system. Title II requires a review and 
comment period for air carriers to assess proposed security 
plans which should limit the negative economic impact of this 
provision to the industry. S. 2949 also has a number of 
additional requirements that are designed to strengthen 
existing security measures, but should have a limited impact in 
regard to cost.

                                PRIVACY

  S. 2949 would have minimal effect on the privacy rights of 
individuals, but a provision on identification training raises 
the issue of a person proving their identity, potentially with 
the aid of technology. The use of biometrics and other 
identifiers raise a number of questions that need to be 
addressed by TSA to ensure that the privacy rights of 
individuals are protected. Additionally, air cargo and 
facilities may be subject to random searches to ensure the 
security of the operations.
  Technical corrections that address the eligibility of non-
citizens to be screeners would increase the number of persons 
who must undergo voluntary background checks, but also would 
provide the individuals a benefit by expanding employment 
opportunities. The bill also seeks to protect the privacy 
rights of persons needing background checks for unescorted 
access to secure areas of an airport by requiring TSA to 
formulate and implement procedures to prevent the transmission 
of non-relevant information about an applicant or employee to 
the existing or potential employer.

                               PAPERWORK

  The Committee does not anticipate a major increase in 
paperwork burdens resulting from the passage of this 
legislation. In those areas where the bill does require 
additional paperwork, it is aimed at improving the security of 
the national air transportation system. S. 2949 would require 
plans from TSA for addressing EDS deployment at those airports 
that do not have the system properly in place by the December 
31, 2002, deadline, and approved security plans for every 
shipper of cargo and their organization. The bill also would 
require the establishment of a database to improve the system 
by which known shippers of cargo are identified, and would 
require reports to Congress on several security matters 
addressed by other provisions.

                      Section-by-section Analysis

                  TITLE I--EXPLOSIVE DETECTION SYSTEMS

  This title is based, in part, on S. 2735 introduced by 
Senator Ensign. This title would allow TSA to determine whether 
the agency will not be able to meet the December 31 deadline 
for the deployment of EDS equipment at particular airports. If 
such a determination is made, TSA would be required to (1) 
report to the congressional authorizing committees on a 
detailed plan to deploy EDS equipment at each airport where the 
deadline will be missed and (2) take all necessary action to 
ensure that alternate means of screening checked bags are used 
in the meantime. TSA's decision to extend the installation 
schedule requires a plan to install the equipment based on 
engineering, design, and construction issues and take into 
account the effectiveness of the modifications, and the 
feasibility and value of placing EDS in areas other than the 
airport lobby. Further, TSA could make such determinations at 
no more than 40 airports. Affected airports would be required 
to cooperate fully with TSA in its efforts to deploy equipment. 
Such airports also would be required to use their Airport 
Improvement Program (AIP) and Passenger Facility Charges (PFCs) 
on security projects, to the extent such funds are available 
and not committed for other projects. TSA would provide the 
congressional authorizing committees with progress reports for 
each affected airport every 30 days. No more than 12 reports 
could be submitted for each airport. Although up to 12 reports 
my be submitted, the Committee reiterates its expectation that 
TSA and the affected airports work as quickly as possible to 
meet the statutory deadline. This bill does not grant an 
extension to the congressionally mandated deadline; it gives 
TSA the flexibility to work beyond that time frame in certain 
situations. It is important to the security of the traveling 
public that 100 percent baggabe screening be implemented as 
soon as possible.

                      TITLE II--AIR CARGO SECURITY

  This title is based, in part, on air cargo security bills 
introduced by Senators Snowe (S. 2656) and Hutchison (S. 2668). 
This title would take several steps to improve the security of 
air cargo, particularly that which is carried aboard passenger 
aircraft. TSA would be required to develop a strategic plan to 
ensure that all air cargo is screened, inspected, or otherwise 
made secure. TSA would be required to develop a system for the 
regular inspection of air cargo shipping facilities. A pilot 
program database would be established of known shippers in 
order to bolster the Known Shipper Program. IACs could have 
their certificates revoked if TSA finds that they are not 
adhering to security laws or regulations. The existing Federal 
security program for IACs would be reviewed and assessed for 
possible improvements. TSA would develop a security training 
program for persons who handle air cargo. All-cargo carriers 
would be required to develop security plans that would be 
subject to approval by TSA. The Committee is taking these 
actions in response to recommendations by the DOT Inspector 
General, General Accounting Office and TSA.

                   TITLE III--IDENTIFICATION TRAINING

  This title is based on S. 1980, a bill introduced by Senator 
Boxer. This title would require TSA to develop protocols to 
provide guidance for the detection of false or fraudulent 
passenger identification (ID). TSA would establish a joint 
government and industry council to develop recommendations on 
the implementation of the protocols. TSA would be allowed to 
implement a program requiring the use of identification 
verification technologies at commercial airports. The Committee 
is concerned about recent reports that false IDs are being used 
at airports and believes TSA should study this issue carefully 
to consider alternative ways to ensure the accuracy of 
passenger ID.

              TITLE IV--CIRCUMVENTION OF AIRPORT SECURITY

  This title contains the text of a bill introduced by Senator 
Cleland, S. 1794, the Airport Checkpoint Enhancement Act. This 
title would establish criminal penalties for individuals who 
intentionally circumvent security checkpoints at commercial 
airports. The penalties would include imprisonment for up to 10 
years or a fine as prescribed by Title 18 of the United States 
Code, or both. In Georgia, for example, an individual who 
willfully violates the secure area of an airport, prior to this 
bill, is only subject to a misdemeanor, which carries a maximum 
penalty involving a civil fine up to $1,100 and a year in jail.

                      TITLE V--WAR RISK INSURANCE

  This title would provide for a nine-month extension of the 
FAA's current war risk policies. In addition, this title would 
expand existing coverage and allow the FAA to provide passenger 
and hull insurance for the next nine months. This would provide 
temporary relief to the airlines as they continue to work 
toward a risk sharing, self-insurance solution. DOT would 
report to Congress on issues associated with war risk 
insurance.
  Existing law establishes a ``war risk'' insurance program 
within the FAA. The program has been invoked several times 
since it was established in 1951 (e.g., Gulf War) and is 
currently in use today. Under the program, the carriers are 
able to purchase insurance for war risk coverage through the 
FAA.
  War risk coverage is required by loan and lease covenants 
from aircraft lessors, and the financial institutions. Prior to 
September 11, such coverage was very inexpensive, and in cases 
where aircraft were put in harms way, the FAA was able to 
provide coverage. After September 11, insurance carriers 
canceled such coverage. Some claim the coverage is commercially 
available today, but it should be pointed out that, according 
to some estimates, $1 billion of coverage costs $1.4 billion.
  One low-fare carrier has stated that its costs have gone up 
about 13,000 percent from about $737,000 per year to $107 
million per year ($7 million for third party liability, $4 
million for hull, and $96 million for passenger and crew 
coverage insurance). Aviation insurance generally includes 
hull, passenger, crew, and third party coverage (persons/
property on the ground, for example). The FAA today is offering 
only third party coverage, and for only 60 days at a time. The 
FAA has authority, however, to extend coverage for up to 1 year 
(under ATSA, the extension period was changed from 60 days to 1 
year, but DOT/FAA has only extended it for 60 days at a time).
  Currently, carriers obtain third party coverage for the first 
$50 million from the private sector, and the FAA provides 
coverage at two times the amount the carrier had on September 
10, 2001. Carriers pay a fee per passenger to the FAA.
  The Committee is cognizant of the financial difficulties 
facing the airline industry. This section is intended to 
relieve, in the short, but finite, term, a financial burden the 
industry now faces. The provision provides coverage for 270 
days to provide short-term assistance. Ultimately, the 
Committee expects that the industry will develop their own 
alternative plans or be able to return to the private markets. 
The title thus requires DOT to submit a report on such 
alternatives.

          TITLE VI--BLAST RESISTANT CARGO CONTAINER TECHNOLOGY

  This title provides that, within 9 months of enactment, TSA 
would report to Congress on an evaluation of the use of blast-
resistant cargo containers to protect against explosives in 
passenger luggage and cargo. If TSA determines that further 
actions are needed, the report would provide appropriate 
recommendations. The Committee is aware that a number of 
manufacturers of blast resistant technology have been reviewed 
by TSA and the FAA, but a number of issues remain to be 
addressed.

                       TITLE VII--FLIGHT SCHOOLS

  This title would amend section 44939 of title 49 (section 113 
of ATSA) regarding background checks of persons seeking 
training at United States flight schools. Under ATSA, aliens 
seeking such training for aircraft over 12,500 pounds are 
subject to background checks under procedures proposed by the 
Department of Justice (DOJ). The Committee is aware that DOJ 
has not yet issued procedures to implement section 113; as a 
result, this section requires DOJ to issue such procedures 
within 30 days of enactment.
  This title would extend the original provisions of section 
113 to all aliens seeking flight school training. As a result, 
aliens seeking training on small aircraft would be subject to 
such screening. The screening requirements do not apply to an 
alien who already has earned an FAA-type rating, or who already 
holds a commercial pilot's license. The provision also limits 
any training prior to a background check to only ground 
training.
  The use of overseas Embassies and Consulates to transmit 
fingerprints, where capable, is also required.
  The title would also require DOJ to implement the new 
requirements within 120 days for aliens seeking flight training 
on small aircraft.

                       TITLE VIII--MISCELLANEOUS

  Section 801 would require TSA to act expeditiously on 
applications pending that seek approval for authority to use 
less-than-lethal weapons by flight crews. The Committee is 
aware that the Administration has expressed substantial 
reservations about the use of lethal weapons by pilots, and 
under ATSA, TSA was given authority to determine if the use of 
lethal, non-lethal, or other actions, would enhance security. 
One carrier has filed an application for approval of less-than-
lethal force, and it has been pending for over nine months at 
TSA. The Committee provision does not seek approval or 
disapproval, but rather seeks a decision from TSA on the issue.
  Section 802 would require DOT to maintain the flight 
restrictions imposed under FAA Notices to Airman (FDC1/3353 and 
2/9583, including any local notices to Airmen of similar effect 
or import) for 6 months. The current ban includes stadiums and 
large open air venues. During the 6 month time period, DOT is 
directed to establish waiver/exemption procedures. During the 6 
month ban the FAA is allowed to grant waivers and restrictions 
necessary for air traffic control operational purposes. The 
Committee expects that such authority includes emergency 
flights and flights necessary for law enforcement purposes.

                    TITLE IX--TECHNICAL CORRECTIONS

  Section 901 includes technical corrections that range from 
typographical corrections to changes needed to clarify or 
effectuate the intention of particular provisions in ATSA. 
Unless otherwise indicated, all references are to title 49, 
United States Code.
  Subsection (a).--49 U.S.C. 114(j) sets forth acquisition 
authorities of the Under Secretary of Transportation for 
Security (Under Secretary) but in paragraph (1)(D), incorrectly 
refers to the Secretary of Transportation rather than the Under 
Secretary. This subsection would correct the reference.
  Subsection (b).--49 U.S.C. 115 establishes the Transportation 
Security Oversight Board (TSOB) and assigns it duties, 
including the duty to review ``emergency regulations and 
security directives'' issued by TSA without notice and comment 
by the public. However, the scope of review specified by 
section 115(c)(1) (``review and ratify or disapprove'') burdens 
the TSOB with taking an action in each case. It is also 
inconsistent with the underlying emergency authority at 49 
U.S.C. 114(l)(2), which provides ``[a]ny regulation or security 
directive issued under this paragraph shall remain effective 
unless disapproved by the Board or rescinded by the Under 
Secretary.'' This subsection would provide the TSOB with review 
authority that only necessitates action in the case of a 
disapproval.
  Subsection (c).--This subsectin would delete a superseded 
reference to chapter 449 from a listing of FAA authorities 
because every section of the chapter except 44918 has been 
transferred to TSA.
  Subsection (d).--Under 44901(a) (Screening of passengers and 
property carried aboard passenger aircraft), all screening must 
be carried out by Federal government employees starting on 
November 19, 2002, except for identifying passengers and 
baggage for screening under the CAPPS and known shipper 
programs. Under this provision, the term ``Federal government 
employee'' is defined by reference to 5 U.S.C. 2105, which 
excludes employees of the United States Postal Service. The 
exclusion of Postal Service employees as potential Federal 
screeners precludes TSA and the Postal Service from pursuing 
the possibility of having United States mail carried aboard 
passenger flights screened by postal employees (in accordance 
with standards and procedures established by TSA). As TSA 
considers options for ensuring that such mail is screened, the 
involvement of the Postal Service may be part of the solution. 
Moreover, Postal Service employees are already Federal 
employees for a number of purposes and they perform a Federal 
function. Therefore, the inclusion of Postal Service employees 
as eligible screeners for United States mail aligns with the 
intent of Congress in assigning the screening function to 
Federal employees. Therefore, this subsection would specify 
that, for purposes of section 44901(a), United States mail 
carried aboard passenger aircraft may be screened by employees 
and officers of the Postal Service.
  Subsections (e) and (f).--These subsections would correct in 
one case, and delete in another, incorrect cross-references in 
49 U.S.C. 44901(e) and (g).
  Subsection (g).--Among other things, section 44903 mandates 
establishment of 20 or more pilot programs for testing and 
evaluation of airport secure-area access-control technologies 
but, in subsection (c)(3), incorrectly refers to the FAA 
Administrator rather than the Under Secretary. This subsection 
corrects the reference. Also, the ATSA added 3 provisions to 49 
U.S.C. 44903 as ``subsection (h).'' Items (2) and (3) of this 
subsection would redesignate 2 of the 3 subsections.
  Subsection (h).--This subsection would clarify that the 
``Under Secretary'' reference in 49 U.S.C. 44909(c)(2)(F) is a 
reference to the Under Secretary of Transportation for 
Security. Also, an obsolete deadline (March 1991) would be 
deleted from the text of 49 U.S.C. 44909(a)(1).
  Subsection (i).--49 U.S.C. 44935(e)(2)(A)(ii) requires that 
every security screening employee hired by TSA be ``a citizen 
of the United States.'' This excludes a ``national of the 
United States,'' as defined in section 1101(a)(22) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)(22)) and 
other persons eligible to serve in the United States armed 
forces. Section 1101(a)(22) defines a ``national of the United 
States'' as either a United States citizen or a non-citizen who 
``owes permanent allegiance to the United States.'' The 
citizens of American Samoa, a United States territory, are the 
principal remaining population that enjoy ``United States 
national'' status under our laws (along with residents of 
Swains Island).
  The purpose of this subsection is to permit lawful permanent 
resident aliens currently employed as airport baggage screeners 
to retain their jobs provided they meet all of the new 
qualifications and successfully pass the background checks 
mandated by ATSA.
  It would also permit United States nationals and lawful 
permanent residents who were honorably discharged from the 
armed forces of the United States to remain eligible for 
airport security screener positions, provided they meet all the 
other requirements other than United States citizenship.
  The subsection would amend the Aviation and Transportation 
Security Act by permitting several exceptions to the 
prohibition on the hiring of non-citizens to be airport 
security screeners. The exceptions include:
          Nationals of the United States;
          Persons born in a territory of the United 
        States;
          Veterans honorably discharged from the armed 
        forces of the United States; and
          Aliens lawfully admitted for permanent 
        residence, as defined in section 101(a)(20) of the 
        Immigration and Nationality Act (8 U.S.C. 1101(a)(20)), 
        and employed to perform security screening services at 
        an airport in the United States on the date of 
        enactment of P.L.107-71.
  Also, the designation of the last subsection of section 44935 
would be changed from (i) to (k) to eliminate a conflict with 
another subsection (i) earlier in the section.
  Subsection (j).--This subsection corrects an incorrect 
reference.
  Subsection (k).--Paragraph (1) would ensure that security 
fees may be based on costs incurred by TSA to deploy not only 
Federal law enforcement personnel, but also State or local law 
enforcement personnel. Paragraph (2) would make a technical 
correction. Paragraph (3) would ensure the continuity of the 
collection of passenger fees. The wording of section 
44940(d)(4) suggests a possibility that passenger security fee 
collections must stop if they exceed the appropriated funding 
level. Stopping and restarting the collections process is 
administratively difficult. This change would enable DOT to 
continue collections of passenger fees, while still reserving 
spending authority for appropriations legislation.
  Subsection (l).--Although section 140(d) of the Aviation and 
Transportation Security Act amended the Penalties chapter of 
Subtitle VII of title 49 to cover violations of law enforced by 
TSA as well as the FAA, the chapter was not updated with a 
penalty-level structure that would reflect the enormity of 
consequences that can follow from a terrorist act and therefore 
the importance of penalizing violations of TSA security 
regulations and orders. This subsection would raise the basic 
$1,000-per-violation level of the Federal aviation statute (in 
place since the 1950's and only adjusted upward for inflation 
since 1997 to about $1,100 per violation) to $10,000 for 
aviation security violations by persons and $25,000 for air 
carriers. The modification would make no change to (1) the 
penalty structure for safety violations or (2) the current-law 
maximum penalty of $25,000 for individuals that interfere with 
a cabin or flight crew.
  Subsection (m).--The modifications in subsection (m) would 
also build on section 140 of ATSA by transferring from the FAA 
to TSA administrative-civil-penalty responsibility for 2 
violations in current law that are directed to aircraft 
security and should be enforced by TSA. They prohibit an 
individual from (1) providing false information about 
hijackings and other matters (section 46302), and (2) carrying 
a weapon when on or attempting to board an aircraft (section 
46303). In addition, subsection (v) would also authorize TSA to 
impose civil penalties against persons who interfere with a 
cabin or flight crew (section 46318).
  Subsection (n).--This subsection would correct a 
typographical error.
  Subsection (o).--This subsection would delete the qualifier 
``screening'' from the section heading of 49 U.S.C. 46503 
because the coverage of the section is broader than screening 
personnel, and extends to any Federal, airport, or air carrier 
employee with security duties within an airport.
  Subsection (p).--This subsection would correct two 
typographical errors.
  Subsections (q) through (aa), other than (s).--These 
subsections woudl correct a number of typographical errors in 
chapter 449 and in the Aviation and Transportation Security 
Act.
  Subsection (s).--This subsection would seek to protect the 
privacy of applicants and employees from the transmission of 
non-relevant information to a potential or current employer. 
The Committee wants to ensure that inappropriate information is 
not divulged.
  Subsection (bb).--The terminology in ATSA differs by 1 pound 
from the standard terminology used by the FAA to distinguish 
between aircraft weight categories, thus bringing under 
regulation (in section 132(a) of ATSA (security regulation of 
charter aircraft operations)) a large population of aircraft 
that were not intended to be covered by Congress. This 
subsection would modify the terminology in section 132(a) to 
align with the standard distinction.

                        Changes in Existing Law

  
  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                        TITLE 49. TRANSPORTATION

                SUBTITLE I--DEPARTMENT OF TRANSPORTATION

                        CHAPTER 1. ORGANIZATION

Sec. 106. Federal Aviation Administration

  (a) The Federal Aviation Administration is an administration 
in the Department of Transportation.
  (b) The head of the Administration is the Administrator. The 
Administration has a Deputy Administrator. They are appointed 
by the President, by and with the advice and consent of the 
Senate. When making an appointment, the President shall 
consider the fitness of the individual to carry out efficiently 
the duties and powers of the office. Except as provided in 
subsection (f) or in other provisions of law, the Administrator 
reports directly to the Secretary of Transportation. The term 
of office for any individual appointed as Administrator after 
August 23, 1994, shall be 5 years.
  (c) The Administrator must--
          (1) be a citizen of the United States;
          (2) be a civilian; and
          (3) have experience in a field directly related to 
        aviation.
  (d)(1) The Deputy Administrator must be a citizen of the 
United States and have experience in a field directly related 
to aviation. An officer on active duty in an armed force may be 
appointed as Deputy Administrator. However, if the 
Administrator is a former regular officer of an armed force, 
the Deputy Administrator may not be an officer on active duty 
in an armed force, a retired regular officer of an armed force, 
or a former regular officer of an armed force.
  (2) An officer on active duty or a retired officer serving as 
Deputy Administrator is entitled to hold a rank and grade not 
lower than that held when appointed as Deputy Administrator. 
The Deputy Administrator may elect to receive (A) the pay 
provided by law for the Deputy Administrator, or (B) the pay 
and allowances or the retired pay of the military grade held. 
If the Deputy Administrator elects to receive the military pay 
and allowances or retired pay, the Administration shall 
reimburse the appropriate military department from funds 
available for the expenses of the Administration.
  (3) The appointment and service of a member of the armed 
forces as a Deputy Administrator does not affect the status, 
office, rank, or grade held by that member, or a right or 
benefit arising from the status, office, rank, or grade. The 
Secretary of a military department does not control the member 
when the member is carrying out duties and powers of the Deputy 
Administrator.
  (e) The Administrator and the Deputy Administrator may not 
have a pecuniary interest in, or own stock in or bonds of, an 
aeronautical enterprise, or engage in another business, 
vocation, or employment.
  (f) Authority of the Secretary and the Administrator.--
          (1) Authority of the Secretary.--Except as provided 
        in paragraph (2), the Secretary of Transportation shall 
        carry out the duties and powers, and controls the 
        personnel and activities, of the Administration. 
        Neither the Secretary nor the Administrator may submit 
        decisions for the approval of, or be bound by the 
        decisions or recommendations of, a committee, board, or 
        organization established by executive order.
          (2) Authority of the administrator.--The 
        Administrator--
                  (A) is the final authority for carrying out 
                all functions, powers, and duties of the 
                Administration relating to--
                          (i) the appointment and employment of 
                        all officers and employees of the 
                        Administration (other than Presidential 
                        and political appointees);
                          (ii) the acquisition and maintenance 
                        of property and equipment of the 
                        Administration;
                          (iii) except as otherwise provided in 
                        paragraph (3), the promulgation of 
                        regulations, rules, orders, circulars, 
                        bulletins, and other official 
                        publications of the Administration; and
                          (iv) any obligation imposed on the 
                        Administrator, or power conferred on 
                        the Administrator, by the Air Traffic 
                        Management System Performance 
                        Improvement Act of 1996 (or any 
                        amendment made by that Act);
                  (B) shall offer advice and counsel to the 
                President with respect to the appointment and 
                qualifications of any officer or employee of 
                the Administration to be appointed by the 
                President or as a political appointee;
                  (C) may delegate, and authorize successive 
                redelegations of, to an officer or employee of 
                the Administration any function, power, or duty 
                conferred upon the Administrator, unless such 
                delegation is prohibited by law; and
                  (D) except as otherwise provided for in this 
                title, and notwithstanding any other provision 
                of law, shall not be required to coordinate, 
                submit for approval or concurrence, or seek the 
                advice or views of the Secretary or any other 
                officer or employee of the Department of 
                Transportation on any matter with respect to 
                which the Administrator is the final authority.
          (3) Regulations.--
                  (A) In general.--In the performance of the 
                functions of the Administrator and the 
                Administration, the Administrator is authorized 
                to issue, rescind, and revise such regulations 
                as are necessary to carry out those functions. 
                The issuance of such regulations shall be 
                governed by the provisions of chapter 5 of 
                title 5. The Administrator shall act upon all 
                petitions for rulemaking no later than 6 months 
                after the date such petitions are filed by 
                dismissing such petitions, by informing the 
                petitioner of an intention to dismiss, or by 
                issuing a notice of proposed rulemaking or 
                advanced notice of proposed rulemaking. The 
                Administrator shall issue a final regulation, 
                or take other final action, not later than 16 
                months after the last day of the public comment 
                period for the regulations or, in the case of 
                an advanced notice of proposed rulemaking, if 
                issued, not later than 24 months after the date 
                of publication in the Federal Register of 
                notice of the proposed rulemaking. On February 
                1 and August 1 of each year the Administrator 
                shall submit to the Committee on Transportation 
                and Infrastructure of the House of 
                Representatives and the Committee on Commerce, 
                Science, and Transportation of the Senate a 
                letter listing each deadline the Administrator 
                missed under this subparagraph during the 6-
                month period ending on such date, including an 
                explanation for missing the deadline and a 
                projected date on which the action that was 
                subject to the deadline will be taken.
                  (B) Approval of secretary of 
                transportation.--
                          (i) The Administrator may not issue a 
                        proposed regulation or final regulation 
                        that is likely to result in the 
                        expenditure by State, local, and tribal 
                        governments in the aggregate, or by the 
                        private sector, of $ 250,000,000 or 
                        more (adjusted annually for inflation 
                        beginning with the year following the 
                        date of the enactment of the Wendell H. 
                        Ford Aviation Investment and Reform Act 
                        for the 21st Century) in any year, or 
                        any regulation which is significant, 
                        unless the Secretary of Transportation 
                        approves the issuance of the regulation 
                        in advance. For purposes of this 
                        paragraph, a regulation is significant 
                        if the Administrator, in consultation 
                        with the Secretary (as appropriate), 
                        determines that the regulation is 
                        likely to--
                                  (I) have an annual effect on 
                                the economy of $ 250,000,000 or 
                                more or adversely affect in a 
                                substantial material way the 
                                economy, a sector of the 
                                economy, productivity, 
                                competition, jobs, the 
                                environment, public health or 
                                safety, or State, local, or 
                                tribal governments or 
                                communities; or
                                  (II) raise novel or 
                                significant legal or policy 
                                issues arising out of legal 
                                mandates that may substantially 
                                and materially affect other 
                                transportation modes.
                          (ii) In an emergency, the 
                        Administrator may issue a regulation 
                        described in clause (i) without prior 
                        approval by the Secretary, but any such 
                        emergency regulation is subject to 
                        ratification by the Secretary after it 
                        is issued and shall be rescinded by the 
                        Administrator within 5 days (excluding 
                        Saturdays, Sundays, and legal public 
                        holidays) after issuance if the 
                        Secretary fails to ratify its issuance.
                          (iii) Any regulation that does not 
                        meet the criteria of clause (i), and 
                        any regulation or other action that is 
                        a routine or frequent action or a 
                        procedural action, may be issued by the 
                        Administrator without review or 
                        approval by the Secretary.
                          (iv) The Administrator shall submit a 
                        copy of any regulation requiring 
                        approval by the Secretary under clause 
                        (i) to the Secretary, who shall either 
                        approve it or return it to the 
                        Administrator with comments within 45 
                        days after receiving it.
                  (C) Periodic review.--
                          (i) Beginning on the date which is 3 
                        years after the date of the enactment 
                        of the Air Traffic Management System 
                        Performance Improvement Act of 1996, 
                        the Administrator shall review any 
                        unusually burdensome regulation issued 
                        by the Administrator after such date of 
                        enactment beginning not later than 3 
                        years after the effective date of the 
                        regulation to determine if the cost 
                        assumptions were accurate, the benefit 
                        of the regulations, and the need to 
                        continue such regulations in force in 
                        their present form.
                          (ii) The Administrator may identify 
                        for review under the criteria set forth 
                        in clause (i) unusually burdensome 
                        regulations that were issued before the 
                        date of the enactment of the Air 
                        Traffic Management System Performance 
                        Improvement Act of 1996 and that have 
                        been in force for more than 3 years.
                          (iii) For purposes of this 
                        subparagraph, the term ``unusually 
                        burdensome regulation'' means any 
                        regulation that results in the annual 
                        expenditure by State, local, and tribal 
                        governments in the aggregate, or by the 
                        private sector, of $25,000,000 or more 
                        (adjusted annually for inflation 
                        beginning with the year following the 
                        date of the enactment of the Air 
                        Traffic Management System Performance 
                        Act of 1996) in any year.
                          (iv) The periodic review of 
                        regulations may be performed by 
                        advisory committees and the Management 
                        Advisory Council established under 
                        subsection (p).
          (4) Definition of political appointee. For purposes 
        of this subsection, the term ``political appointee'' 
        means any individual who--
                  (A) is employed in a position listed in 
                sections 5312 through 5316 of title 5 (relating 
                to the Executive Schedule);
                  (B) is a limited term appointee, limited 
                emergency appointee, or noncareer appointee in 
                the Senior Executive Service, as defined under 
                paragraphs (5), (6), and (7), respectively, of 
                section 3132(a) of title 5; or
                  (C) is employed in a position in the 
                executive branch of the Government of a 
                confidential or policy-determining character 
                under schedule C of subpart C of part 213 of 
                title 5 of the Code of Federal Regulations.
  (g) Duties and Powers of Administrator.--
          (1) Except as provided in paragraph (2) of this 
        subsection, the Administrator shall carry out--
                  (A) duties and powers of the Secretary of 
                Transportation under subsection (f) of this 
                section related to aviation safety (except 
                those related to transportation, packaging, 
                marking, or description of hazardous material) 
                and stated in sections 308(b), 1132(c) and (d), 
                40101(c), 40103(b), 40106(a), 40108, 40109(b), 
                40113(a), 40113(c), 40113(d), 40113(e), 
                40114(a), and 40119, chapter 445 (except 
                sections 44501(b), 44502(a)(2), 44502(a)(3), 
                44502(a)(4), 44503, 44506, 44509, 44510, 44514, 
                and 44515), chapter 447 (except sections 44717, 
                44718(a), 44718(b), 44719, 44720, 44721(b), 
                44722, and 44723), chapter 449 (except sections 
                44903(d), 44904, 44905, 44907-44911, 44913, 
                44915, and 44931-44934), chapter 451, chapter 
                453, sections 46104, 46301(d) and (h)(2), 
                46303(c), 46304-46308, 46310, 46311, and 46313-
                46316, chapter 465, and sections 47504(b) 
                (related to flight procedures), 47508(a), and 
                48107 of this title; and
                  (B) additional duties and powers prescribed 
                by the Secretary of Transportation.
          (2) In carrying out sections 40119, 44901, 44903(a)-
        (c) and (e), 44906, 44912, 44935-44937, 44938(a) and 
        (b), and 48107 of this title, paragraph (1)(A) of this 
        subsection does not apply to duties and powers vested 
        in the Director of Intelligence and Security by section 
        44931 of this title.
  (h) Section 40101(d) of this title applies to duties and 
powers specified in subsection (g)(1) of this section. Any of 
those duties and powers may be transferred to another part of 
the Department only when specifically provided by law or a 
reorganization plan submitted under chapter 9 of title 5. A 
decision of the Administrator in carrying out those duties or 
powers is administratively final.
  (i) The Deputy Administrator shall carry out duties and 
powers prescribed by the Administrator. The Deputy 
Administrator acts for the Administrator when the Administrator 
is absent or unable to serve, or when the office of the 
Administrator is vacant.
  (j) There is established within the Federal Aviation 
Administration an institute to conduct civil aeromedical 
research under section 44507 of this title. Such institute 
shall be known as the ``Civil Aeromedical Institute''. Research 
conducted by the institute should take appropriate advantage of 
capabilities of other government agencies, universities, or the 
private sector.
  (k) Authorization of Appropriations for Operations.--
          (1) In general.--There is authorized to be 
        appropriated to the Secretary of Transportation for 
        operations of the Administration--
                  (A) such sums as may be necessary for fiscal 
                year 2000;
                  (B) $6,592,235,000 for fiscal year 2001;
                  (C) $6,886,000,000 for fiscal year 2002; and
                  (D) $7,357,000,000 for fiscal year 2003.
        Such sums shall remain available until expended.
          (2) Authorized expenditures.--Out of amounts 
        appropriated under paragraph (1), the following 
        expenditures are authorized:
                  (A) $450,000 for each of fiscal years 2000 
                through 2003 for wildlife hazard mitigation 
                measures and management of the wildlife strike 
                database of the Federal Aviation 
                Administration.
                  (B) $9,100,000 for the 3-fiscal-year period 
                beginning with fiscal year 2001 to support a 
                university consortium established to provide an 
                air safety and security management certificate 
                program, working cooperatively with the Federal 
                Aviation Administration and United States air 
                carriers, except that funds under this 
                subparagraph--
                          (i) may not be used for the 
                        construction of a building or other 
                        facility; and
                          (ii) may only be awarded on the basis 
                        of open competition.
                  (C) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to support 
                infrastructure systems development for both 
                general aviation and the vertical flight 
                industry.
                  (D) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to establish helicopter 
                approach procedures using current technologies 
                (such as the Global Positioning System) to 
                support all-weather, emergency medical service 
                for trauma patients.
                  (E) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to revise existing 
                terminal and en route procedures and instrument 
                flight rules to facilitate the takeoff, flight, 
                and landing of tiltrotor aircraft and to 
                improve the national airspace system by 
                separating such aircraft from congested flight 
                paths of fixed-wing aircraft.
                  (F) $3,300,000 for fiscal year 2000 and 
                $3,000,000 for each of fiscal years 2001 
                through 2003 to implement the 1998 airport 
                surface operations safety action plan of the 
                Federal Aviation Administration.
                  (G) $9,100,000 for fiscal year 2001 to 
                support air safety efforts through payment of 
                United States membership obligations in the 
                International Civil Aviation Organization, to 
                be paid as soon as practicable.
                  (H) Such sums as may be necessary for fiscal 
                years 2000 through 2003 for the Secretary to 
                hire additional inspectors in order to enhance 
                air cargo security programs.
                  (I) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to develop and improve 
                training programs (including model training 
                programs and curriculum) for security screening 
                personnel at airports that will be used by 
                airlines to meet regulatory requirements 
                relating to the training and testing of such 
                personnel.
  (l) Personnel and Services.--
          (1) Officers and employees.--Except as provided in 
        subsections (a) and (g) of section 40122, the 
        Administrator is authorized, in the performance of the 
        functions of the Administrator, to appoint, transfer, 
        and fix the compensation of such officers and 
        employees, including attorneys, as may be necessary to 
        carry out the functions of the Administrator and the 
        Administration. In fixing compensation and benefits of 
        officers and employees, the Administrator shall not 
        engage in any type of bargaining, except to the extent 
        provided for in section 40122(a), nor shall the 
        Administrator be bound by any requirement to establish 
        such compensation or benefits at particular levels.
          (2) Experts and consultants.--The Administrator is 
        authorized to obtain the services of experts and 
        consultants in accordance with section 3109 of title 5.
          (3) Transportation and per diem expenses.--The 
        Administrator is authorized to pay transportation 
        expenses, and per diem in lieu of subsistence expenses, 
        in accordance with chapter 57 of title 5.
          (4) Use of personnel from other agencies.--The 
        Administrator is authorized to utilize the services of 
        personnel of any other Federal agency (as such term is 
        defined under section 551(1) of title 5).
          (5) Voluntary services.--
                  (A) General rule.--In exercising the 
                authority to accept gifts and voluntary 
                services under section 326 of this title, and 
                without regard to section 1342 of title 31, the 
                Administrator may not accept voluntary and 
                uncompensated services if such services are 
                used to displace Federal employees employed on 
                a full-time, part-time, or seasonal basis.
                  (B) Incidental expenses.--The Administrator 
                is authorized to provide for incidental 
                expenses, including transportation, lodging, 
                and subsistence, for volunteers who provide 
                voluntary services under this subsection.
                  (C) Limited treatment as federal employees.--
                An individual who provides voluntary services 
                under this subsection shall not be considered a 
                Federal employee for any purpose other than for 
                purposes of chapter 81 of title 5, relating to 
                compensation for work injuries, and chapter 171 
                of title 28, relating to tort claims.
          (6) Contracts.--The Administrator is authorized to 
        enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as may be 
        necessary to carry out the functions of the 
        Administrator and the Administration. The Administrator 
        may enter into such contracts, leases, cooperative 
        agreements, and other transactions with any Federal 
        agency (as such term is defined in section 551(1) of 
        title 5) or any instrumentality of the United States, 
        any State, territory, or possession, or political 
        subdivision thereof, any other governmental entity, or 
        any person, firm, association, corporation, or 
        educational institution, on such terms and conditions 
        as the Administrator may consider appropriate.
  (m) Cooperation by Administrator.--With the consent of 
appropriate officials, the Administrator may, with or without 
reimbursement, use or accept the services, equipment, 
personnel, and facilities of any other Federal agency (as such 
term is defined in section 551(1) of title 5) and any other 
public or private entity. The Administrator may also cooperate 
with appropriate officials of other public and private agencies 
and instrumentalities concerning the use of services, 
equipment, personnel, and facilities. The head of each Federal 
agency shall cooperate with the Administrator in making the 
services, equipment, personnel, and facilities of the Federal 
agency available to the Administrator. The head of a Federal 
agency is authorized, notwithstanding any other provision of 
law, to transfer to or to receive from the Administration, 
without reimbursement, supplies, personnel, services, and 
equipment other than administrative supplies or equipment.
  (n) Acquisition.--
          (1) In general. The Administrator is authorized--
                  (A) to acquire (by purchase, lease, 
                condemnation, or otherwise), construct, 
                improve, repair, operate, and maintain--
                          (i) air traffic control facilities 
                        and equipment;
                          (ii) research and testing sites and 
                        facilities; and
                          (iii) such other real and personal 
                        property (including office space and 
                        patents), or any interest therein, 
                        within and outside the continental 
                        United States as the Administrator 
                        considers necessary;
                  (B) to lease to others such real and personal 
                property; and
                  (C) to provide by contract or otherwise for 
                eating facilities and other necessary 
                facilities for the welfare of employees of the 
                Administration at the installations of the 
                Administration, and to acquire, operate, and 
                maintain equipment for these facilities.
          (2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by 
        the Government of the United States.
  (o) Transfers of Funds.--The Administrator 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 by law to the Administrator or functions 
transferred pursuant to law to the Administrator on or after 
the date of the enactment of the Air Traffic Management System 
Performance Improvement Act of 1996.
  (p) Management Advisory Council.--
          (1) Establishment.--Within 3 months after the date of 
        the enactment of the Air Traffic Management System 
        Performance Improvement Act of 1996, the Administrator 
        shall establish an advisory council which shall be 
        known as the Federal Aviation Management Advisory 
        Council (in this subsection referred to as the 
        ``Council''). With respect to Administration 
        management, policy, spending, funding, and regulatory 
        matters affecting the aviation industry, the Council 
        may submit comments, recommended modifications, and 
        dissenting views to the Administrator. The 
        Administrator shall include in any submission to 
        Congress, the Secretary, or the general public, and in 
        any submission for publication in the Federal Register, 
        a description of the comments, recommended 
        modifications, and dissenting views received from the 
        Council, together with the reasons for any differences 
        between the views of the Council and the views or 
        actions of the Administrator.
          (2) Membership.--The Council shall consist of 18 
        members, who shall consist of--
                  (A) a designee of the Secretary of 
                Transportation;
                  (B) a designee of the Secretary of Defense;
                  (C) 10 members representing aviation 
                interests, appointed by--
                          (i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate; and
                          (ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation;
                  (D) 1 member appointed, from among 
                individuals who are the leaders of their 
                respective unions of air traffic control system 
                employees, by--
                          (i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate; and
                          (ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation; and
                  (E) 5 members appointed by the Secretary 
                after consultation with the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives and the Committee on 
                Commerce, Science, and Transportation of the 
                Senate.
          (3) Qualifications.--
                  (A) No Federal officer or employee. No member 
                appointed under paragraph (2)(C) or 2(E) may 
                serve as an officer or employee of the United 
                States Government while serving as a member of 
                the Council.
                  (B) Air Traffic Services Subcommittee. 
                Members appointed under paragraph (2)(E) 
                shall--
                          (i) have a fiduciary responsibility 
                        to represent the public interest;
                          (ii) be citizens of the United 
                        States; and
                          (iii) be appointed without regard to 
                        political affiliation and solely on the 
                        basis of their professional experience 
                        and expertise in one or more of the 
                        following areas:
                                  (I) Management of large 
                                service organizations.
                                  (II) Customer service.
                                  (III) Management of large 
                                procurements.
                                  (IV) Information and 
                                communications technology.
                                  (V) Organizational 
                                development.
                                  (VI) Labor relations.
                        At least one of such members should 
                        have a background in managing large 
                        organizations successfully. In the 
                        aggregate, such members should 
                        collectively bring to bear expertise in 
                        all of the areas described in 
                        subclauses (I) through (VI).
                  (C) Prohibitions on members of 
                Subcommittee.--No member appointed under 
                paragraph (2)(E) may--
                          (i) have a pecuniary interest in, or 
                        own stock in or bonds of, an aviation 
                        or aeronautical enterprise, except an 
                        interest in a diversified mutual fund 
                        or an interest that is exempt from the 
                        application of section 208 of title 18;
                          (ii) engage in another business 
                        related to aviation or aeronautics; or
                          (iii) be a member of any organization 
                        that engages, as a substantial part of 
                        its activities, in activities to 
                        influence aviation-related legislation.
          (4) Functions.--
                  (A) In general.--
                          (i) The Council shall provide advice 
                        and counsel to the Administrator on 
                        issues which affect or are affected by 
                        the operations of the Administrator. 
                        The Council shall function as an 
                        oversight resource for management, 
                        policy, spending, and regulatory 
                        matters under the jurisdiction of the 
                        Administration.
                          (ii) The Council shall review the 
                        rulemaking cost-benefit analysis 
                        process and develop recommendations to 
                        improve the analysis and ensure that 
                        the public interest is fully protected.
                          (iii) The Council shall review the 
                        process through which the 
                        Administration determines to use 
                        advisory circulars and service 
                        bulletins.
                  (B) Meetings.--The Council shall meet on a 
                regular and periodic basis or at the call of 
                the chairman or of the Administrator.
                  (C) Access to documents and staff.--The 
                Administration may give the Council appropriate 
                access to relevant documents and personnel of 
                the Administration, and the Administrator shall 
                make available, consistent with the authority 
                to withhold commercial and other proprietary 
                information under section 552 of title 5 
                (commonly known as the ``Freedom of Information 
                Act''), cost data associated with the 
                acquisition and operation of air traffic 
                service systems. Any member of the Council who 
                receives commercial or other proprietary data 
                from the Administrator shall be subject to the 
                provisions of section 1905 of title 18, 
                pertaining to unauthorized disclosure of such 
                information.
          (5) Federal advisory committee act not to apply.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) does not 
        apply to the Council or such aviation rulemaking 
        committees as the Administrator shall designate.
          (6) Administrative matters.--
                  (A) Terms of members appointed under 
                paragraph (2)(c).--Members of the Council 
                appointed under paragraph (2)(C) shall be 
                appointed for a term of 3 years. Of the members 
                first appointed by the President under 
                paragraph (2)(C)--
                          (i) 3 shall be appointed for terms of 
                        1 year;
                          (ii) 4 shall be appointed for terms 
                        of 2 years; and
                          (iii) 3 shall be appointed for terms 
                        of 3 years.
                  (B) Term for air traffic control 
                representative.--The member appointed under 
                paragraph (2)(D) shall be appointed for a term 
                of 3 years, except that the term of such 
                individual shall end whenever the individual no 
                longer meets the requirements of paragraph 
                (2)(D).
                  (C) Terms for air traffic services 
                subcommittee members.--The member appointed 
                under paragraph (2)(E) shall be appointed for a 
                term of 5 years, except that of the members 
                first appointed under paragraph (2)(E)--
                          (i) 2 members shall be appointed for 
                        a term of 3 years;
                          (ii) 2 members shall be appointed for 
                        a term of 4 years; and
                          (iii) 1 member shall be appointed for 
                        a term of 5 years.
                  (D) Reappointment.--An individual may not be 
                appointed under paragraph (2)(E) to more than 
                two 5-year terms.
                  (E) Vacancy.--Any vacancy on the Council 
                shall be filled in the same manner as the 
                original appointment, except that any vacancy 
                caused by a member appointed by the President 
                under paragraph (2)(C)(i) shall be filled by 
                the Secretary in accordance with paragraph 
                (2)(C)(ii). Any member appointed to fill a 
                vacancy occurring before the expiration of the 
                term for which the member's predecessor was 
                appointed shall be appointed for the remainder 
                of that term.
                  (F) Continuation in office.--A member whose 
                term expires shall continue to serve until the 
                date on which the member's successor takes 
                office.
                  (G) Removal.--Any member of the Council 
                appointed under paragraph (2)(D) may be removed 
                for cause by the President or Secretary whoever 
                makes the appointment. Any member of the 
                Council appointed under paragraph (2)(E) may be 
                removed for cause by the Secretary.
                  (H) Claims against members of Subcommittee.--
                          (i) In general.--A member appointed 
                        under paragraph (2)(E) shall have no 
                        personal liability under Federal law 
                        with respect to any claim arising out 
                        of or resulting from an act or omission 
                        by such member within the scope of 
                        service as a member of the Air Traffic 
                        Services Subcommittee.
                          (ii) Effect on other law.--This 
                        subparagraph shall not be construed--
                                  (I) to affect any other 
                                immunity or protection that may 
                                be available to a member of the 
                                Subcommittee under applicable 
                                law with respect to such 
                                transactions;
                                  (II) to affect any other 
                                right or remedy against the 
                                United States under applicable 
                                law; or
                                  (III) to limit or alter in 
                                any way the immunities that are 
                                available under applicable law 
                                for Federal officers and 
                                employees.
                  (I) Ethical considerations.--
                          (i) Financial disclosure.--During the 
                        entire period that an individual 
                        appointed under paragraph (2)(E) is a 
                        member of the Subcommittee, such 
                        individual shall be treated as serving 
                        as an officer or employee referred to 
                        in section 101(f) of the Ethics in 
                        Government Act of 1978 for purposes of 
                        title I of such Act; except that 
                        section 101(d) of such Act shall apply 
                        without regard to the number of days of 
                        service in the position.
                          (ii) Restrictions on post-
                        employment.--For purposes of section 
                        207(c) of title 18, an individual 
                        appointed under paragraph (2)(E) shall 
                        be treated as an employee referred to 
                        in section 207(c)(2)(A)(i) of such 
                        title during the entire period the 
                        individual is a member of the 
                        Subcommittee; except that subsections 
                        (c)(2)(B) and (f) of section 207 of 
                        such title shall not apply.
                  (J) Chairman; vice chairman.--The Council 
                shall elect a chair and a vice chair from among 
                the members appointed under paragraph (2)(C), 
                each of whom shall serve for a term of 1 year. 
                The vice chair shall perform the duties of the 
                chairman in the absence of the chairman.
                  (K) Travel and per diem.--Each member of the 
                Council shall be paid actual travel expenses, 
                and per diem in lieu of subsistence expenses 
                when away from his or her usual place of 
                residence, in accordance with section 5703 of 
                title 5.
                  (L) Detail of personnel from the 
                administration.--The Administrator shall make 
                available to the Council such staff, 
                information, and administrative services and 
                assistance as may reasonably be required to 
                enable the Council to carry out its 
                responsibilities under this subsection.
          (7) Air traffic services subcommittee.--
                  (A) In general.--The Management Advisory 
                Council shall have an air traffic services 
                subcommittee (in this paragraph referred to as 
                the ``Subcommittee'') composed of the five 
                members appointed under paragraph (2)(E).
                  (B) General responsibilities.
                          (i) Oversight.--The Subcommittee 
                        shall oversee the administration, 
                        management, conduct, direction, and 
                        supervision of the air traffic control 
                        system.
                          (ii) Confidentiality.--The 
                        Subcommittee shall ensure that 
                        appropriate confidentiality is 
                        maintained in the exercise of its 
                        duties.
                  (C) Specific responsibilities.--The 
                Subcommittee shall have the following specific 
                responsibilities:
                          (i) Strategic plans.--To review, 
                        approve, and monitor the strategic plan 
                        for the air traffic control system, 
                        including the establishment of--
                                  (I) a mission and objectives;
                                  (II) standards of performance 
                                relative to such mission and 
                                objectives, including safety, 
                                efficiency, and productivity; 
                                and
                                  (III) annual and long-range 
                                strategic plans.
                          (ii) Modernization and improvement. 
                        To review and approve--
                                  (I) methods to accelerate air 
                                traffic control modernization 
                                and improvements in aviation 
                                safety related to air traffic 
                                control; and
                                  (II) procurements of air 
                                traffic control equipment in 
                                excess of $100,000,000.
                          (iii) Operational plans.--To review 
                        the operational functions of the air 
                        traffic control system, including--
                                  (I) plans for modernization 
                                of the air traffic control 
                                system;
                                  (II) plans for increasing 
                                productivity or implementing 
                                cost-saving measures; and
                                  (III) plans for training and 
                                education.
                          (iv) Management.--To--
                                  (I) review and approve the 
                                Administrator's appointment of 
                                a Chief Operating Officer under 
                                section 106(r);
                                  (II) review the 
                                Administrator's selection, 
                                evaluation, and compensation of 
                                senior executives of the 
                                Administration who have program 
                                management responsibility over 
                                significant functions of the 
                                air traffic control system;
                                  (III) review and approve the 
                                Administrator's plans for any 
                                major reorganization of the 
                                Administration that would 
                                impact on the management of the 
                                air traffic control system;
                                  (IV) review and approve the 
                                Administrator's cost accounting 
                                and financial management 
                                structure and technologies to 
                                help ensure efficient and cost-
                                effective air traffic control 
                                operation; and
                                  (V) review the performance 
                                and compensation of managers 
                                responsible for major 
                                acquisition projects, including 
                                the ability of the managers to 
                                meet schedule and budget 
                                targets.
                          (v) Budget.--To--
                                  (I) review and approve the 
                                budget request of the 
                                Administration related to the 
                                air traffic control system 
                                prepared by the Administrator;
                                  (II) submit such budget 
                                request to the Secretary; and
                                  (III) ensure that the budget 
                                request supports the annual and 
                                long-range strategic plans.
                The Secretary shall submit the budget request 
                referred to in clause (v)(II) for any fiscal 
                year to the President who shall transmit such 
                request, without revision, to the Committees on 
                Transportation and Infrastructure and 
                Appropriations of the House of Representatives 
                and the Committees on Commerce, Science, and 
                Transportation and Appropriations of the 
                Senate, together with the President's annual 
                budget request for the Federal Aviation 
                Administration for such fiscal year.
                  (D) Subcommittee personnel matters.--
                          (i) Compensation of members.--Each 
                        member of the Subcommittee shall be 
                        compensated at a rate of $25,000 per 
                        year.
                          (ii) Compensation of chairperson.--
                        Notwithstanding clause (i), the 
                        chairperson of the Subcommittee shall 
                        be compensated at a rate of $40,000 per 
                        year.
                          (iii) Staff.--The chairperson of the 
                        Subcommittee may appoint and terminate 
                        any personnel that may be necessary to 
                        enable the Subcommittee to perform its 
                        duties.
                          (iv) Procurement of temporary and 
                        intermittent services.--The chairperson 
                        of the Subcommittee may procure 
                        temporary and intermittent services 
                        under section 3109(b) of title 5, 
                        United States Code.
                  (E) Administrative matters.--
                          (i) Term of chair.--The members of 
                        the Subcommittee shall elect for a 2-
                        year term a chairperson from among the 
                        members of the Subcommittee.
                          (ii) Powers of chair.--Except as 
                        otherwise provided by a majority vote 
                        of the Subcommittee, the powers of the 
                        chairperson shall include--
                                  (I) establishing committees;
                                  (II) setting meeting places 
                                and times;
                                  (III) establishing meeting 
                                agendas; and
                                  (IV) developing rules for the 
                                conduct of business.
                          (iii) Meetings.--The Subcommittee 
                        shall meet at least quarterly and at 
                        such other times as the chairperson 
                        determines appropriate.
                          (iv) Quorum.--Three members of the 
                        Subcommittee shall constitute a quorum. 
                        A majority of members present and 
                        voting shall be required for the 
                        Subcommittee to take action.
                  (F) Reports.--
                          (i) Annual.--The Subcommittee shall 
                        each year report with respect to the 
                        conduct of its responsibilities under 
                        this title to the Administrator, the 
                        Council, the Committee on 
                        Transportation and Infrastructure of 
                        the House of Representatives, and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate.
                          (ii) Additional report.--If a 
                        determination by the Subcommittee under 
                        subparagraph (B)(i) that the 
                        organization and operation of the air 
                        traffic control system are not allowing 
                        the Administration to carry out its 
                        mission, the Subcommittee shall report 
                        such determination to the 
                        Administrator, the Council, the 
                        Committee on Transportation and 
                        Infrastructure of the House of 
                        Representatives, and the Committee on 
                        Commerce, Science, and Transportation 
                        of the Senate.
                          (iii) Action of administrator on 
                        report.--Not later than 60 days after 
                        the date of a report of the 
                        Subcommittee under this subparagraph, 
                        the Administrator shall take action 
                        with respect to such report. If the 
                        Administrator overturns a 
                        recommendation of the Subcommittee, the 
                        Administrator shall report such action 
                        to the President, the Committee on 
                        Transportation and Infrastructure of 
                        the House of Representatives, and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate.
                          (iv) Comptroller general's report.--
                        Not later than April 30, 2003, the 
                        Comptroller General of the United 
                        States shall transmit to the Committee 
                        on Transportation and Infrastructure of 
                        the House of Representatives and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate a report 
                        on the success of the Subcommittee in 
                        improving the performance of the air 
                        traffic control system.
          (8) Air traffic control system defined.--In this 
        section, the term ``air traffic control system'' has 
        the meaning such term has under section 40102(a).
  (q) Aircraft Noise Ombudsman.--
          (1) Establishment.--There shall be in the 
        Administration an Aircraft Noise Ombudsman.
          (2) General duties and responsibilities.--The 
        Ombudsman shall--
                  (A) be appointed by the Administrator;
                  (B) serve as a liaison with the public on 
                issues regarding aircraft noise; and
                  (C) be consulted when the Administration 
                proposes changes in aircraft routes so as to 
                minimize any increases in aircraft noise over 
                populated areas.
          (3) Number of full-time equivalent employees.--The 
        appointment of an Ombudsman under this subsection shall 
        not result in an increase in the number of full-time 
        equivalent employees in the Administration.
  (r) Chief Operating Officer.--
          (1) In general.--
                  (A) Appointment.--There shall be a Chief 
                Operating Officer for the air traffic control 
                system to be appointed by the Administrator, 
                with the approval of the Air Traffic Services 
                Subcommittee of the Aviation Management 
                Advisory Council. The Chief Operating Officer 
                shall report directly to the Administrator and 
                shall be subject to the authority of the 
                Administrator.
                  (B) Qualifications.--The Chief Operating 
                Officer shall have a demonstrated ability in 
                management and knowledge of or experience in 
                aviation.
                  (C) Term.--The Chief Operating Officer shall 
                be appointed for a term of 5 years.
                  (D) Removal.--The Chief Operating Officer 
                shall serve at the pleasure of the 
                Administrator, except that the Administrator 
                shall make every effort to ensure stability and 
                continuity in the leadership of the air traffic 
                control system.
                  (E) Vacancy.--Any individual appointed to 
                fill a vacancy in the position of Chief 
                Operating Officer occurring before the 
                expiration of the term for which the 
                individual's predecessor was appointed shall be 
                appointed for the remainder of that term.
          (2) Compensation.--
                  (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.
                  (B) Bonus.--In addition to the annual rate of 
                basic pay authorized by subparagraph (A), the 
                Chief Operating Officer may receive a bonus for 
                any calendar year not to exceed 30 percent of 
                the annual rate of basic pay, based upon the 
                Administrator's evaluation of the Chief 
                Operating Officer's performance in relation to 
                the performance goals set forth in the 
                performance agreement described paragraph (3).
          (3) Annual performance agreement.--The Administrator 
        and the Chief Operating Officer, in consultation with 
        the Air Traffic Control Subcommittee of the Aviation 
        Management Advisory Committee, shall enter into an 
        annual performance agreement that sets forth measurable 
        organization and individual goals for the Chief 
        Operating Officer in key operational areas. The 
        agreement shall be subject to review and renegotiation 
        on an annual basis.
          (4) Annual performance report.--The Chief Operating 
        Officer shall prepare and transmit to the Secretary of 
        Transportation and Congress an annual management report 
        containing such information as may be prescribed by the 
        Secretary.
          (5) Responsibilities.--The Administrator may delegate 
        to the Chief Operating Officer, or any other authority 
        within the Administration responsibilities, including 
        the following:
                  (A) Strategic plans.--To develop a strategic 
                plan of the Administration for the air traffic 
                control system, including the establishment 
                of--
                          (i) a mission and objectives;
                          (ii) standards of performance 
                        relative to such mission and 
                        objectives, including safety, 
                        efficiency, and productivity;
                          (iii) annual and long-range strategic 
                        plans; and
                          (iv) methods of the Administration to 
                        accelerate air traffic control 
                        modernization and improvements in 
                        aviation safety related to air traffic 
                        control.
                  (B) Operations.--To review the operational 
                functions of the Administration, including--
                          (i) modernization of the air traffic 
                        control system;
                          (ii) increasing productivity or 
                        implementing cost-saving measures; and
                          (iii) training and education.
                  (C) Budget.--To--
                          (i) develop a budget request of the 
                        Administration related to the air 
                        traffic control system prepared by the 
                        Administrator;
                          (ii) submit such budget request to 
                        the Administrator and the Secretary of 
                        Transportation; and
                          (iii) ensure that the budget request 
                        supports the annual and long-range 
                        strategic plans developed under 
                        subparagraph (A) of this subsection.

                             * * * * * * *

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 Under 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.

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] 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.

                             * * * * * * *

                    SUBTITLE VII--AVIATION PROGRAMS

                    PART A--AIR COMMERCE AND SAFETY

                           SUBPART I--GENERAL

                    CHAPTER 401. GENERAL PROVISIONS

Sec. 40109. Authority to exempt

  (a) Air Carriers and Foreign Air Carriers Not Engaged 
Directly in Operating Aircraft.--(1) The Secretary of 
Transportation may exempt from subpart II of this part--
          (A) an air carrier not engaged directly in operating 
        aircraft in air transportation; or
          (B) a foreign air carrier not engaged directly in 
        operating aircraft in foreign air transportation.
  (2) The exemption is effective to the extent and for periods 
that the Secretary decides are in the public interest.
  (b) Safety Regulation.--The Administrator of the Federal 
Aviation Administration may grant an exemption from a 
regulation prescribed in carrying out sections [40103(b)(1) and 
(2), 40119, 44901, 44903, 44906, and 44935-44937] 40103(b)(1) 
and (2) and 40119 of this title when the Administrator decides 
the exemption is in the public interest.
  (c) Other Economic Regulation.--Except as provided in this 
section, the Secretary may exempt to the extent the Secretary 
considers necessary a person or class of persons from a 
provision of chapter 411, chapter 413 (except sections 41307 
and 41310(b)-(f)), chapter 415 (except sections 41502, 41505, 
and 41507-41509), chapter 417 (except sections 41703, 41704, 
41710, 41713, and 41714), chapter 419, subchapter II of chapter 
421, and sections 44909 and 46301(b) of this title, or a 
regulation or term prescribed under any of those provisions, 
when the Secretary decides that the exemption is consistent 
with the public interest.
  (d) Labor Requirements.--The Secretary may not exempt an air 
carrier from section 42112 of this title. However, the 
Secretary may exempt from section 42112(b)(1) and (2) an air 
carrier not providing scheduled air transportation, and the 
operations conducted during daylight hours by an air carrier 
providing scheduled air transportation, when the Secretary 
decides that--
          (1) because of the limited extent of, or unusual 
        circumstances affecting, the operation of the air 
        carrier, the enforcement of section 42112(b)(1) and (2) 
        of this title is or would be an unreasonable burden on 
        the air carrier that would obstruct its development and 
        prevent it from beginning or continuing operations; and
          (2) the exemption would not affect adversely the 
        public interest.
  (e) Maximum Flying Hours.--The Secretary may not exempt an 
air carrier under this section from a provision referred to in 
subsection (c) of this section, or a regulation or term 
prescribed under any of those provisions, that sets maximum 
flying hours for pilots or copilots.
  (f) Smaller Aircraft.--(1) An air carrier is exempt from 
section 41101(a)(1) of this title, and the Secretary may exempt 
an air carrier from another provision of subpart II of this 
part, if the air carrier--
          (A)(i) provides passenger transportation only with 
        aircraft having a maximum capacity of 55 passengers; or
          (ii) provides the transportation of cargo only with 
        aircraft having a maximum payload of less than 18,000 
        pounds; and
          (B) complies with liability insurance requirements 
        and other regulations the Secretary prescribes.
  (2) The Secretary may increase the passenger or payload 
capacities when the public interest requires.
  (3)(A) An exemption under this subsection applies to an air 
carrier providing air transportation between 2 places in 
Alaska, or between Alaska and Canada, only if the carrier is 
authorized by Alaska to provide the transportation.
  (B) The Secretary may limit the number or location of places 
that may be served by an air carrier providing transportation 
only in Alaska under an exemption from section 41101(a)(1) of 
this title, or the frequency with which the transportation may 
be provided, only when the Secretary decides that providing the 
transportation substantially impairs the ability of an air 
carrier holding a certificate issued by the Secretary to 
provide its authorized transportation, including the minimum 
transportation requirement for Alaska specified under section 
41732(b)(1)(B) of this title.
  (g) Emergency Air Transportation by Foreign Air Carriers.--
(1) To the extent that the Secretary decides an exemption is in 
the public interest, the Secretary may exempt by order a 
foreign air carrier from the requirements and limitations of 
this part for not more than 30 days to allow the foreign air 
carrier to carry passengers or cargo in interstate air 
transportation in certain markets if the Secretary finds that--
          (A) because of an emergency created by unusual 
        circumstances not arising in the normal course of 
        business, air carriers holding certificates under 
        section 41102 of this title cannot accommodate traffic 
        in those markets;
          (B) all possible efforts have been made to 
        accommodate the traffic by using the resources of the 
        air carriers, including the use of--
                  (i) foreign aircraft, or sections of foreign 
                aircraft, under lease or charter to the air 
                carriers; and
                  (ii) the air carriers' reservations systems 
                to the extent practicable;
          (C) the exemption is necessary to avoid unreasonable 
        hardship for the traffic in the markets that cannot be 
        accommodated by the air carriers; and
          (D) granting the exemption will not result in an 
        unreasonable advantage to any party in a labor dispute 
        where the inability to accommodate traffic in a market 
        is a result of the dispute.
  (2) When the Secretary grants an exemption to a foreign air 
carrier under this subsection, the Secretary shall--
          (A) ensure that air transportation that the foreign 
        air carrier provides under the exemption is made 
        available on reasonable terms;
          (B) monitor continuously the passenger load factor of 
        air carriers in the market that hold certificates under 
        section 41102 of this title; and
          (C) review the exemption at least every 30 days to 
        ensure that the unusual circumstances that established 
        the need for the exemption still exist.
  (3) The Secretary may renew an exemption (including renewals) 
under this subsection for not more than 30 days. An exemption 
may continue for not more than 5 days after the unusual 
circumstances that established the need for the exemption 
cease.
  (h) Notice and Opportunity for Hearing.--The Secretary may 
act under subsections (d) and (f)(3)(B) of this section only 
after giving the air carrier notice and an opportunity for a 
hearing.

                             * * * * * * *

                          subpart iii--safety
                         chapter 443. insurance

Sec. 44301. Definitions

  In this chapter--
          (1) ``American aircraft'' means--
                  (A) a civil aircraft of the United States; 
                and
                  (B) an aircraft owned or chartered by, or 
                made available to--
                          (i) the United States Government; or
                          (ii) a State, the District of 
                        Columbia, a territory or possession of 
                        the United States, or a political 
                        subdivision of the State, territory, or 
                        possession.
          (2) ``insurance carrier'' means a person authorized 
        to do aviation insurance business in a State, including 
        a mutual or stock insurance company and a reciprocal 
        insurance association.

Sec. 44302. General authority

  (a) Insurance and Reinsurance.--(1) Subject to subsection (c) 
of this section and section 44305(a) of this title, the 
Secretary of Transportation may provide insurance and 
reinsurance against loss or damage arising out of any risk from 
the operation of an American aircraft or foreign-flag aircraft.
  (2) An aircraft may be insured or reinsured for not more than 
its reasonable value as determined by the Secretary in 
accordance with reasonable business practices in the commercial 
aviation insurance industry. Insurance or reinsurance may be 
provided only when the Secretary decides that the insurance 
cannot be obtained on reasonable terms from an insurance 
carrier.
  (b) Reimbursement of Insurance Cost Increases.--
          (1) In general.--The Secretary may reimburse an air 
        carrier for the increase in the cost of insurance, with 
        respect to a premium for coverage ending before October 
        1, 2002, against loss or damage arising out of any risk 
        from the operation of an American aircraft over the 
        insurance premium that was in effect for a comparable 
        operation during the period beginning September 4, 
        2001, and ending September 10, 2001, as the Secretary 
        may determine. Such reimbursement is subject to 
        subsections (a)(2), (c), and (d) of this section and to 
        section 44303.
          (2) Payment from revolving fund.--A reimbursement 
        under this subsection shall be paid from the revolving 
        fund established by section 44307.
          (3) Further conditions.--The Secretary may impose 
        such further conditions on insurance for which the 
        increase in premium is subject to reimbursement under 
        this subsection as the Secretary may deem appropriate 
        in the interest of air commerce.
          (4) Termination of authority.--The authority to 
        reimburse air carriers under this subsection shall 
        expire 180 days after the date of enactment of this 
        paragraph.
  (c) Presidential Approval.--The Secretary may provide 
insurance or reinsurance under subsection (a) of this section, 
or reimburse an air carrier under subsection (b) of this 
section, only with the approval of the President. The President 
may approve the insurance or reinsurance or the reimbursement 
only after deciding that the continued operation of the 
American aircraft or foreign-flag aircraft to be insured or 
reinsured is necessary in the interest of air commerce or 
national security or to carry out the foreign policy of the 
United States Government.
  (d) Consultation.--The President may require the Secretary to 
consult with interested departments, agencies, and 
instrumentalities of the Government before providing insurance 
or reinsurance or reimbursing an air carrier under this 
chapter.
  (e) Additional Insurance.--With the approval of the 
Secretary, a person having an insurable interest in an aircraft 
may insure with other underwriters in an amount that is more 
than the amount insured with the Secretary. However, the 
Secretary may not benefit from the additional insurance. This 
subsec tion does not prevent the Secretary from making 
contracts of coinsurance.
  (f) War Risk Insurance.--
          (1) In general.--Not later than 30 days after the 
        date of enactment of the Aviation Security Improvement 
        Act, the Secretary shall--
                  (A) extend for 270 days from such date of 
                enactment the termination date of any aviation 
                war risk insurance policies the Department 
                issued that were in effect on such date of 
                enactment on terms that are no less favorable 
                than the terms of those policies as the 
                policies were in effect on June 19, 2002; and
                  (B) offer to amend each policy the term of 
                which is extended to provide coverage for 
                losses or injuries to hull, passengers, and 
                crew, in addition to coverage for injury to 
                third parties (with respect to both persons and 
                property), on such terms and conditions as the 
                Secretary may prescribe, at an additional 
                premium comparable to the premium charged for 
                the third-party casualty coverage under 
                existing Federal Aviation Administration 
                policies.
          (2) Report.--Not later than 90 days after the date of 
        enactment of the Aviation Security Improvement Act, the 
        Secretary shall transmit to the Committee on Commerce, 
        Science, and Transportation of the Senate and the 
        Committee on Transportation and Infrastructure of the 
        House of Representatives a report that--
                  (A) evaluates the availability of war risk 
                insurance for air carriers and other aviation 
                entities for passengers and third parties;
                  (B) analyzes the economic effect upon air 
                carriers and other aviation entities of 
                available war risk insurance; and
                  (C) describes the manner in which the 
                Department could provide an alternative means 
                of providing aviation war risk reinsurance 
                covering passengers, crew, and third parties 
                through use of a risk-retention group or by 
                other means.

                             * * * * * * *

            CHAPTER 445. FACILITIES, PERSONNEL, AND RESEARCH

                             * * * * * * *

Sec. 44503. Reducing nonessential expenditures

  The Secretary of Transportation shall attempt to reduce the 
capital, operating, maintenance, and administrative costs of 
the national airport and airway system to the maximum extent 
practicable consistent with the highest degree of aviation 
safety. At least annually, the Secretary shall consult with and 
consider the recommendations of users of the system on ways to 
reduce nonessential expenditures of the United States 
Government for aviation. The Secretary shall give particular 
attention to a recommendation that may reduce, with no adverse 
effect on safety, future personnel requirements and costs to 
the Government required to be recovered from user charges.

                             * * * * * * *

                         CHAPTER 449. SECURITY

Sec. 44901. Screening passengers and property

  (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), or, in the case of United States mail, by 
an officer or employee of the United States Postal Service 
under standards and procedures established by the Under 
Secretary, 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) \1\ In general.--The Under Secretary of 
        Transportation for Security shall take all necessary 
        action to ensure that--
---------------------------------------------------------------------------
    \1\ Subsection (d) was enacted without including a paragraph (2).
---------------------------------------------------------------------------
                  (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.
          (2) Deadline.--
                  (A) In general.--If the Under Secretary of 
                Transportation for Security determines that the 
                Transportation Security Administration is not 
                able to deploy explosive detection systems 
                required to be deployed under paragraph (1) at 
                all airports where explosive detection systems 
                are required by December 31, 2002, then with 
                respect to each airport for which the Under 
                Secretary makes that determination--
                          (i) the Under Secretary shall submit 
                        to the Senate Committee on Commerce, 
                        Science, and Transportation and the 
                        House of Representatives Committee on 
                        Transportation and Infrastructure a 
                        detailed plan (which may be submitted 
                        in classified form) for the deployment 
                        of the number of explosive detection 
                        systems at that airport necessary to 
                        meet the requiremens of paragraph (1) 
                        as soon as practicable at that airport; 
                        and
                          (ii) the Under Secretary shall take 
                        all necessary action to ensure that 
                        alternative means of screening all 
                        checked baggage is implemented until 
                        the requirements of paragraph (1) have 
                        been met.
                  (B) Criteria for determination.--In making a 
                determination under subparagraph (A), the Under 
                Secretary shall take into account--
                          (i) the nature and extent of the 
                        required modifications to the airport's 
                        terminal buildings, and the technical, 
                        engineering, design and construction 
                        issues;
                          (ii) the need to ensure that such 
                        installations and modifications are 
                        effective; and
                          (iii) the feasibility and cost-
                        effectiveness of deploying explosive 
                        detection systems in the baggage 
                        sorting area or other non-public area 
                        rather than the lobby of an airport 
                        terminal building.
                  (C) Limitation.--The Under Secretary may not 
                make a determination under subparagraph (A) in 
                the case of more than 40 airports.
                  (D) Airport effort required.--Each airport 
                with respect to which the Under Secretary makes 
                a determination under subparagraph (A) shall--
                          (i) cooperate fully with the 
                        Transportation Security Administration 
                        with respect to screening checked 
                        baggage and changes to accommodate 
                        explosive detection systems; and
                          (ii) make security projects a 
                        priority for the obligation or 
                        expenditure of funds made available 
                        under chapter 417 or 471 until 
                        explosive detection systems required to 
                        be deployed under paragraph (1) have 
                        been deployed at that airport.
          (3) Reports.--
                  (A) In general.--Until the Transportation 
                Security Administration has met the 
                requirements of paragraph (1), the Under 
                Secretary shall submit a classified report 
                every 30 days after the date of enactment of 
                the Aviation Security Improvement Act to the 
                Senate Committee on Commerce, Science, and 
                Transportation and the House of Representatives 
                Committee on Transportation and Infrastructure 
                describing the progress made toward meeting 
                such requirements at each airport.
                  (B) Limit on number of reports.--The Under 
                Secretary shall submit reports for each airport 
                until the requirements of paragraph (1) have 
                been met, but may not submit more than 12 
                reports for any airport.
  (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)] 
subsection (d)(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.]
  (f) Cargo.--
          (1) In general.--The Under Secretary of 
        Transportation for Security shall establish a system 
        systems to screen, inspect, or otherwise ensure the 
        security of all cargo that is to be transported in--
                  (A) passenger aircraft operated by an air 
                carrier or foreign air carrier in air 
                transportation or intrastate air 
                transportation; or
                  (B) all-cargo aircraft in air transportation 
                and intrastate air transportation.
          (2) Strategic plan.--The Under Secretary shall 
        develop a strategic plan to carry out paragraph (1).
  (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] 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.
  (h) Exemptions and Advising Congress on Regulations.--The 
Under Secretary--
          (1) may exempt from this section air transportation 
        operations, except scheduled passenger operations of an 
        air carrier providing air transportation under a 
        certificate issued under section 41102 of this title or 
        a permit issued under section 41302 of this title; and
          (2) shall advise Congress of a regulation to be 
        prescribed under this section at least 30 days before 
        the effective date of the regulation, unless the Under 
        Secretary decides an emergency exists requiring the 
        regulation to become effective in fewer than 30 days 
        and notifies Congress of that decision.

                             * * * * * * *

Sec. 44903. Air transportation security

  (a) Definition.--In this section, ``law enforcement 
personnel'' means individuals--
          (1) authorized to carry and use firearms;
          (2) vested with the degree of the police power of 
        arrest the Under Secretary of Transportation for 
        Security considers necessary to carry out this section; 
        and
          (3) identifiable by appropriate indicia of authority.
  (b) Protection Against Violence and Piracy.--The Under 
Secretary shall prescribe regulations to protect passengers and 
property on an aircraft operating in air transportation or 
intrastate air transportation against an act of criminal 
violence or aircraft piracy. When prescribing a regulation 
under this subsection, the Under Secretary shall--
          (1) consult with the Secretary of Transportation, the 
        Attorney General, the heads of other departments, 
        agencies, and instrumentalities of the United States 
        Government, and State and local authorities;
          (2) consider whether a proposed regulation is 
        consistent with--
                  (A) protecting passengers; and
                  (B) the public interest in promoting air 
                transportation and intrastate air 
                transportation;
          (3) to the maximum extent practicable, require a 
        uniform procedure for searching and detaining 
        passengers and property to ensure--
                  (A) their safety; and
                  (B) courteous and efficient treatment by an 
                air carrier, an agent or employee of an air 
                carrier, and Government, State, and local law 
                enforcement personnel carrying out this 
                section; and
          (4) consider the extent to which a proposed 
        regulation will carry out this section.
  (c) Security Programs.--(1) The Under Secretary shall 
prescribe regulations under subsection (b) of this section that 
require each operator of an airport regularly serving an air 
carrier holding a certificate issued by the Secretary of 
Transportation to establish an air transportation security 
program that provides a law enforcement presence and capability 
at each of those airports that is adequate to ensure the safety 
of passengers. The regulations shall authorize the operator to 
use the services of qualified State, local, and private law 
enforcement personnel. When the Under Secretary decides, after 
being notified by an operator in the form the Under Secretary 
prescribes, that not enough qualified State, local, and private 
law enforcement personnel are available to carry out subsection 
(b), the Under Secretary may authorize the operator to use, on 
a reimbursable basis, personnel employed by the Under 
Secretary, or by another department, agency, or instrumentality 
of the Government with the consent of the head of the 
department, agency, or instrumentality, to supplement State, 
local, and private law enforcement personnel. When deciding 
whether additional personnel are needed, the Under Secretary 
shall consider the number of passengers boarded at the airport, 
the extent of anticipated risk of criminal violence or aircraft 
piracy at the airport or to the air carrier aircraft operations 
at the airport, and the availability of qualified State or 
local law enforcement personnel at the airport.
  (2)(A) The Under Secretary may approve a security program of 
an airport operator, or an amendment in an existing program, 
that incorporates a security program of an airport tenant 
(except an air carrier separately complying with part 108 or 
129 of title 14, Code of Federal Regulations) having access to 
a secured area of the airport, if the program or amendment 
incorporates--
          (i) the measures the tenant will use, within the 
        tenant's leased areas or areas designated for the 
        tenant's exclusive use under an agreement with the 
        airport operator, to carry out the security 
        requirements imposed by the Under Secretary on the 
        airport operator under the access control system 
        requirements of section 107.14 of title 14, Code of 
        Federal Regulations, or under other requirements of 
        part 107 of title 14; and
          (ii) the methods the airport operator will use to 
        monitor and audit the tenant's compliance with the 
        security requirements and provides that the tenant will 
        be required to pay monetary penalties to the airport 
        operator if the tenant fails to carry out a security 
        requirement under a contractual provision or 
        requirement imposed by the airport operator.
  (B) If the Under Secretary approves a program or amendment 
described in subparagraph (A) of this paragraph, the airport 
operator may not be found to be in violation of a requirement 
of this subsection or subsection (b) of this section when the 
airport operator demonstrates that the tenant or an employee, 
permittee, or invitee of the tenant is responsible for the 
violation and that the airport operator has complied with all 
measures in its security program for securing compliance with 
its security program by the tenant.
                  (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.
          (3) Pilot programs.--The [Administrator] Under 
        Secretary 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.
  (d) Authorizing Individuals To Carry Firearms and Make 
Arrests.--With the approval of the Attorney General and the 
Secretary of State, the Secretary of Transportation may 
authorize an individual who carries out air transportation 
security duties--
          (1) to carry firearms; and
          (2) to make arrests without warrant for an offense 
        against the United States committed in the presence of 
        the individual or for a felony under the laws of the 
        United States, if the individual reasonably believes 
        the individual to be arrested has committed or is 
        committing a felony.
  (e) Exclusive Responsibility Over Passenger Safety.--The 
Under Secretary has the exclusive responsibility to direct law 
enforcement activity related to the safety of passengers on an 
aircraft involved in an offense under section 46502 of this 
title from the moment all external doors of the aircraft are 
closed following boarding until those doors are opened to allow 
passengers to leave the aircraft. When requested by the Under 
Secretary, other departments, agencies, and instrumentalities 
of the Government shall provide assistance necessary to carry 
out this subsection.
  (f) Government and Industry Consortia.--The Under Secretary 
may establish at airports such consortia of government and 
aviation industry representatives as the Under Secretary may 
designate to provide advice on matters related to aviation 
security and safety. Such consortia shall not be considered 
Federal advisory committees for purposes of the Federal 
Advisory Committee Act (5 U.S.C. App.).
  (g) Improvement of Secured-Area Access Control.--
          (1) Enforcement.--
                  (A) Under Secretary to publish sanctions.--
                The Under Secretary shall publish in the 
                Federal Register a list of sanctions for use as 
                guidelines in the discipline of employees for 
                infractions of airport access control 
                requirements. The guidelines shall incorporate 
                a progressive disciplinary approach that 
                relates proposed sanctions to the severity or 
                recurring nature of the infraction and shall 
                include measures such as remedial training, 
                suspension from security-related duties, 
                suspension from all duties without pay, and 
                termination of employment.
                  (B) Use of sanctions.--Each airport operator, 
                air carrier, and security screening company 
                shall include the list of sanctions published 
                by the Under Secretary in its security program. 
                The security program shall include a process 
                for taking prompt disciplinary action against 
                an employee who commits an infraction of 
                airport access control requirements.
          (2) Improvements.--The Under Secretary shall--
                  (A) work with airport operators and air 
                carriers to implement and strengthen existing 
                controls to eliminate airport access control 
                weaknesses;
                  (B) require airport operators and air 
                carriers to develop and implement comprehensive 
                and recurring training programs that teach 
                employees their roles in airport security, the 
                importance of their participation, how their 
                performance will be evaluated, and what action 
                will be taken if they fail to perform;
                  (C) require airport operators and air 
                carriers to develop and implement programs that 
                foster and reward compliance with airport 
                access control requirements and discourage and 
                penalize noncompliance in accordance with 
                guidelines issued by the Under Secretary to 
                measure employee compliance;
                  (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;
                  (E) improve and better administer the Under 
                Secretary's security database to ensure its 
                efficiency, reliability, and usefulness for 
                identification of systemic problems and 
                allocation of resources;
                  (F) improve the execution of the Under 
                Secretary's quality control program; and
                  (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.
  (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.
  [(h)] (i)  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.
  [(i)] (j) 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] Under Secretary 
        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.
  [(h)] (k) 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. 44909. Passenger manifests

  (a) Air Carrier Requirements.--(1) [Not later than March 16, 
1991, the] The Secretary of Transportation shall require each 
air carrier to provide a passenger manifest for a flight to an 
appropriate representative of the Secretary of State--
          (A) not later than one hour after that carrier is 
        notified of an aviation disaster outside the United 
        States involving that flight; or
          (B) if it is not technologically feasible or 
        reasonable to comply with clause (A) of this paragraph, 
        then as expeditiously as possible, but not later than 3 
        hours after the carrier is so notified.
  (2) The passenger manifest should include the following 
information:
          (A) the full name of each passenger.
          (B) the passport number of each passenger, if 
        required for travel.
          (C) the name and telephone number of a contact for 
        each passenger.
  (3) In carrying out this subsection, the Secretary of 
Transportation shall consider the necessity and feasibility of 
requiring air carriers to collect passenger manifest 
information as a condition for passengers boarding a flight of 
the carrier.
  (b) Foreign Air Carrier Requirements.--The Secretary of 
Transportation shall consider imposing a requirement on foreign 
air carriers comparable to that imposed on air carriers under 
subsection (a)(1) and (2) of this section.
  (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 passenger 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 of Transportation for Security, 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. 44921. Regular inspections of air cargo shipping facilities

  The Under Secretary of Transportation for Security shall 
establish a system for the regular inspection of shipping 
facilities for shipments of cargo transported in air 
transportation or intrastate air transportation to ensure that 
appropriate security controls, systems, and protocols are 
observed, and shall enter into arrangements with the civil 
aviation authorities, or other appropriate officials, of 
foreign countries to ensure that inspections are conducted on a 
regular basis at shipping facilities for cargo transported in 
air transportation to the United States.

Sec.  44922. Air cargo security

  (a) Database.--The Under Secretary of Transportation for 
Security shall establish an industry-wide pilot program 
database of known shippers of cargo that is to be transported 
in passenger aircraft operated by an air carrier or foreign air 
carrier in air transportation or intrastate air transportation. 
The Under Secretary shall use the results of the pilot program 
to improve the known shipper program.
  (b) Indirect air carriers.--
          (1) Random inspections.--The Under Secretary shall 
        conduct random audits, investigations, and inspections 
        of indirect air carrier facilities to determine if the 
        indirect air carriers are meeting the security 
        requirements of this title.
          (2) Ensuring compliance.--The Under Secretary may 
        take such actions as may be appropriate to promote and 
        ensure compliance with the security standards 
        established under this title.
          (3) Notice of failures.--The Under Secretary shall 
        notify the Secretary of Transportation of any indirect 
        air carrier that fails to meet security standards 
        established under this title.
          (4) Suspension or revocation of certificate.--The 
        Secretary, as appropriate, shall suspend or revoke any 
        certificate or authority issued under chapter 411 to an 
        indirect air carrier immediately upon the 
        recommendation of the Under Secretary. Any indirect air 
        carrier whose certificate is suspended or revoked under 
        this subparagraph may appeal the suspension or 
        revocation in accordance with procedures established 
        under this title for the appeal of suspensions and 
        revocations.
          (5) Indirect air carrier.--In this subsection, the 
        term ``indirect air carrier'' has the meaning given 
        that term in part 1548 of title 49, Code of Federal 
        Regulations.

Sec. 44923. Passenger identification

  (a) In General.--Not later than 180 days after the date of 
enactment of the Aviation Security Improvement Act, the Under 
Secretary of Transportation for Security, in consultation with 
the Administrator of the Federal Aviation Administration, 
appropriate law enforcement, security, and terrorism experts, 
representatives of air carriers and labor organizations 
representing individuals employed in commercial aviation, shall 
develop protocols to provide guidance for detection of false or 
fraudulent passenger identification. The protocols may consider 
new technology, current identification measures, training of 
personnel, and issues related to the types of identification 
available to the public.
  (b) Air Carrier Programs.--Within 60 days after the Under 
Secretary issues the protocols under subsection (a) in final 
form, the Under Secretary shall provide them to each air 
carrier. The Under Secretary shall establish a joint government 
and industry council to develop recommendations on how to 
implement the protocols. The Under Secretary shall report to 
the Senate Committee on Commerce, Science, and Transportation 
and the House of Representatives Committee on Transportation 
and Infrastructure within 1 year after the date of enactment of 
the Aviation Security Improvement Act on the actions taken 
under this section.

Sec. 44924. Passenger identification verification

  (a) Program Required.--The Under Secretary of Transportation 
for Security may establish and carry out a program to require 
the installation and use at airports in the United States of 
such identification verification technologies as the Under 
Secretary considers appropriate to assist in the screening of 
passengers boarding aircraft at such airports.
  (b) Technologies Employed.--The identification verification 
technologies required as part of the program under subsection 
(a) may include identification scanners, biometrics, retinal, 
iris, or facial scanners, or any other technologies that the 
Under Secretary considers appropriate for purposes of the 
program.
  (c) Commencement.--If the Under Secretary determines that the 
implementation of such a program is appropriate, the 
installation and use of identification verification 
technologies under the program shall commence as soon as 
practicable after the date of that determination.

                             * * * * * * *

Sec. 44935. Employment standards and training

  (a) Employment Standards.--The Under Secretary of 
Transportation for Security shall prescribe standards for the 
employment and continued employment of, and contracting for, 
air carrier personnel and, as appropriate, airport security 
personnel. The standards shall include--
          (1) minimum training requirements for new employees;
          (2) retraining requirements;
          (3) minimum staffing levels;
          (4) minimum language skills; and
          (5) minimum education levels for employees, when 
        appropriate.
  (b) Review and Recommendations.--In coordination with air 
carriers, airport operators, and other interested persons, the 
Under Secretary shall review issues related to human 
performance in the aviation security system to maximize that 
performance. When the review is completed, the Under Secretary 
shall recommend guidelines and prescribe appropriate changes in 
existing procedures to improve that performance.
  (c) Security Program Training, Standards, and 
Qualifications.--(1) The Under Secretary--
          (A) may train individuals employed to carry out a 
        security program under section 44903(c) of this title; 
        and
          (B) shall prescribe uniform training standards and 
        uniform minimum qualifications for individuals eligible 
        for that training.
  (2) The Under Secretary may authorize reimbursement for 
travel, transportation, and subsistence expenses for security 
training of non-United States Government domestic and foreign 
individuals whose services will contribute significantly to 
carrying out civil aviation security programs. To the extent 
practicable, air travel reimbursed under this paragraph shall 
be on air carriers.
  (d) Education and Training Standards for Security 
Coordinators, Supervisory Personnel, and Pilots.--(1) The Under 
Secretary shall prescribe standards for educating and 
training--
          (A) ground security coordinators;
          (B) security supervisory personnel; and
          (C) airline pilots as in-flight security 
        coordinators.
  (2) The standards shall include initial training, retraining, 
and continuing education requirements and methods. Those 
requirements and methods shall be used annually to measure the 
performance of ground security coordinators and security 
supervisory personnel.
  (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 and 
                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;] States or described in 
                        subparagraph (C);
                          (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) Other individuals.--An individual is 
                described in this subparagraph if that 
                individual--
                          (i) is a national of the United 
                        States (as defined in section 
                        101(a)(22) of the Immigration and 
                        Nationality Act (8 U.S.C. 
                        1101(a)(22)));
                          (ii) was born in a territory of the 
                        United States;
                          (iii) was honorably discharged from 
                        service in the Armed Forces of the 
                        United States; or
                          (iv) is an alien lawfully admitted 
                        for permanent residence, as defined in 
                        section 101(a)(20) of the Immigration 
                        and Nationality Act and was employed to 
                        perform security screening services at 
                        an airport in the United States on the 
                        date of enactment of the Aviation and 
                        Transportation Security Act (Public Law 
                        107-71).
                  [(C)] (D) 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.
  [(i)] (k) Accessibility of Computer-Based Training 
Facilities.--The Under Secretary shall work with air carriers 
and airports to ensure that computer-based training facilities 
intended for use by security screeners at an airport regularly 
serving an air carrier holding a certificate issued by the 
Secretary of Transportation are conveniently located for that 
airport and easily accessible.

Sec. 44936. Employment investigations and restrictions

  (a) Employment Investigation Requirement.--(1)(A) The Under 
Secretary of Transportation for Security shall require by 
regulation that an employment investigation, 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,,] Security, shall be conducted of each individual 
employed in, or applying for, a position as a security screener 
under section 44935(e) or a position in which the individual 
has unescorted access, or may permit other individuals to have 
unescorted access, to--
          (i) aircraft of an air carrier or foreign air 
        carrier; or
          (ii) a secured area of an airport in the United 
        States the Under Secretary designates that serves an 
        air carrier or foreign air carrier.
  (B) The Under Secretary shall require by regulation that an 
employment investigation (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] Under Secretary) be 
conducted for--
          (i) individuals who are responsible for screening 
        passengers or property under section 44901 of this 
        title;
          (ii) supervisors of the individuals described in 
        clause (i);
          (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
          (iv) such other individuals who exercise security 
        functions associated with baggage or cargo, as the 
        Under Secretary determines is necessary to ensure air 
        transportation security.
                  (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] Under 
                        Secretary 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.
                  (D) Exemption.--An employment investigation, 
                including a criminal history record check, 
                shall not be required under this subsection for 
                an individual who is exempted under section 
                107.31(m)(1) or (2) of title 14, Code of 
                Federal Regulations, as in effect on 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.
  (2) An air carrier, foreign air carrier, airport operator, or 
government that employs, or authorizes or makes a contract for 
the services of, an individual in a position described in 
paragraph (1) of this subsection shall ensure that the 
investigation the Under Secretary requires is conducted.
  (3) The Under Secretary shall provide for the periodic audit 
of the effectiveness of criminal history record checks 
conducted under paragraph (1) of this subsection.
  (b) Prohibited Employment.--(1) Except as provided in 
paragraph (3) of this subsection, an air carrier, foreign air 
carrier, airport operator, or government may not employ, or 
authorize or make a contract for the services of, an individual 
in a position described in subsection (a)(1) of this section 
if--
          (A) the investigation of the individual required 
        under this section has not been conducted; or
          (B) the results of that investigation establish that, 
        in the 10-year period ending on the date of the 
        investigation, the individual was convicted (or found 
        not guilty by reason of insanity) of--
                  (i) a crime referred to in section 46306, 
                46308, 46312, 46314, or 46315 or chapter 465 of 
                this title or section 32 of title 18;
                  (ii) murder;
                  (iii) assault with intent to murder;
                  (iv) espionage;
                  (v) sedition;
                  (vi) treason;
                  (vii) rape;
                  (viii) kidnapping;
                  (ix) unlawful possession, sale, distribution, 
                or manufacture of an explosive or weapon;
                  (x) extortion;
                  (xi) armed or felony unarmed robbery;
                  (xii) distribution of, or intent to 
                distribute, a controlled substance;
                  (xiii) a felony involving a threat;
                  (xiv) a felony involving--
                          (I) willful destruction of property;
                          (II) importation or manufacture of a 
                        controlled substance;
                          (III) burglary;
                          (IV) theft;
                          (V) dishonesty, fraud, or 
                        misrepresentation;
                          (VI) possession or distribution of 
                        stolen property;
                          (VII) aggravated assault;
                          (VIII) bribery; and
                          (IX) illegal possession of a 
                        controlled substance punishable by a 
                        maximum term of imprisonment of more 
                        than 1 year, or any other crime 
                        classified as a felony that the Under 
                        Secretary determines indicates a 
                        propensity for placing contraband 
                        aboard an aircraft in return for money; 
                        or
                  (xv) conspiracy to commit any of the acts 
                referred to in clauses (i) through (xiv).
  (2) The Under Secretary may specify other factors that are 
sufficient to prohibit the employment of an individual in a 
position described in subsection (a)(1) of this section.
  (3) An air carrier, foreign air carrier, airport operator, or 
government may employ, or authorize or contract for the 
services of, an individual in a position described in 
subsection (a)(1) of this section without carrying out the 
investigation required under this section, if the Under 
Secretary approves a plan to employ the individual that 
provides alternate security arrangements.
  (c) Fingerprinting and Record Check Information.--(1) If the 
Under Secretary requires an identification and criminal history 
record check, to be conducted by the Attorney General, as part 
of an investigation under this section, the Under Secretary 
shall designate an individual to obtain fingerprints and submit 
those fingerprints to the Attorney General. The Attorney 
General may make the results of a check available to an 
individual the Under Secretary designates. Before designating 
an individual to obtain and submit fingerprints or receive 
results of a check, the Under Secretary shall consult with the 
Attorney General. All Federal agencies shall cooperate with the 
Under Secretary and the Under Secretary's designee in the 
process of collecting and submitting fingerprints.
  (2) The Under Secretary shall prescribe regulations on--
          (A) procedures for taking fingerprints; and
          (B) requirements for using information received from 
        the Attorney General under paragraph (1) of this 
        subsection--
                  (i) to limit the dissemination of the 
                information; and
                  (ii) to ensure that the information is used 
                only to carry out this section.
  (3) If an identification and criminal history record check is 
conducted as part of an investigation of an individual under 
this section, the individual--
          (A) shall receive a copy of any record received from 
        the Attorney General; and
          (B) may complete and correct the information 
        contained in the check before a final employment 
        decision is made based on the check.
  (d) Fees and Charges.--The Under Secretary and the Attorney 
General shall establish reasonable fees and charges to pay 
expenses incurred in carrying out this section. The employer of 
the individual being investigated shall pay the costs of a 
record check of the individual. Money collected under this 
section shall be credited to the account in the Treasury from 
which the expenses were incurred and are available to the Under 
Secretary and the Attorney General for those expenses.
  (e) When Investigation or Record Check Not Required.--This 
section does not require an investigation or record check when 
the investigation or record check is prohibited by a law of a 
foreign country.
  (f) Protection of Privacy of Applicants and Employees.--The 
Under Secretary shall formulate and implement procedures that 
are designed to prevent the transmission of information not 
relevant to an applicant's or employee's qualifications for 
unescorted access to secure areas of an airport when that 
applicant or employee is undergoing a criminal history records 
check.

                             * * * * * * *

Sec. 44939. Training to operate certain aircraft

  (a) Waiting Period.--
          (1) In general._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] an aircraft 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)] (A) 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)] (B) the Attorney General has not 
                directed, within 45 days after being notified 
                under [paragraph (1),] subparagraph (A), 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.
          (2) Exception.--The requirements of paragraph (1) 
        shall not apply to an alien who--
                  (A) has earned a Federal Aviation 
                Administration type rating in an aircraft; or
                  (B) holds a current pilot's license or 
                foreign equivalent commercial pilot's license 
                that permits the person to fly an aircraft with 
                a maximum certificated takeoff weight of more 
                than 12,500 pounds as defined by the 
                International Civil Aviation Organization in 
                Annex 1 to the Convention on International 
                Civil Aviation.
  (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.]
  (c) Covered Training.--
          (1) In general.--For purposes of subsection (a), 
        training includes in-flight training, training in a 
        simulator, and any other form or aspect of training.
          (2) Exception.--For the purposes of subsection (a), 
        training does not include classroom instruction (also 
        known as ground training), which may be provided to an 
        alien during the 45-day period applicable to the alien 
        under that subsection.
  (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.

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).] law enforcement personnel pursuant 
                to this title.
        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 that originates at an airport in 
the United States, except that the total amount of such fees 
may not exceed $5.00 per one-way trip.
  (d) Imposition of Fee.--
          (1) In general.--Notwithstanding section 9701 of 
        title 31 and the procedural requirements of section 553 
        of title 5, the Under Secretary shall impose the fee 
        under subsection (a)(1), and may impose a fee under 
        subsection (a)(2), through the publication of notice of 
        such fee in the Federal Register and begin collection 
        of the fee within 60 days of the date of enactment of 
        this Act, or as soon as possible thereafter.
          (2) Special rules for 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.]
          (4) Fee collection.--Fees may be collected under this 
        section as provided in advance in appropriations Acts.
  (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 the 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.

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] 
        Under Secretary of Transportation for 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)] (1) Performance plan.--
                  [(i)] (A) 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] Under Secretary 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)] (B) 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)] (2) 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] Under Secretary of Transportation for 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 and 
Transportation Security Act, the [Under Secretary for 
Transportation Security] Under Secretary 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. 44944. Voluntary provision of emergency services

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

                             * * * * * * *

                         CHAPTER 463. PENALTIES

                             * * * * * * *

Sec. 46301. Civil penalties

  (a) General Penalty.--(1) A person is liable to the United 
States Government for a civil penalty of not more than $1,000 
for violating--
          (A) chapter 401 (except sections 40103(a) and (d), 
        40105, 40116, and 40117), chapter 411, chapter 413 
        (except sections 41307 and 41310(b)-(f)), chapter 415 
        (except sections 41502, 41505, and 41507-41509), 
        chapter 417 (except sections 41703, 41704, 41710, 
        41713, and 41714), chapter 419, subchapter II or III of 
        chapter 421, chapter 441 (except section 44109), 
        section 44502(b) or (c), chapter 447 (except sections 
        44717 and 44719-44723), chapter 449 (except sections 
        44902, 44903(d), 44904, 44907(a)-(d)(1)(A) and 
        (d)(1)(C)-(f), and 44908), or section 47107(b) 
        (including any assurance made under such section) of 
        this title;
          (B) a regulation prescribed or order issued under any 
        provision to which clause (A) of this paragraph 
        applies;
          (C) any term of a certificate or permit issued under 
        section 41102, 41103, or 41302 of this title; or
          (D) a regulation of the United States Postal Service 
        under this part.
  (2) A person operating an aircraft for the transportation of 
passengers or property for compensation (except an airman 
serving as an airman) is liable to the Government for a civil 
penalty of not more than $10,000 for violating--
          (A) chapter 401 (except sections 40103(a) and (d), 
        40105, 40106(b), 40116, and 40117), section 44502 (b) 
        or (c), chapter 447 (except sections 44717-44723), or 
        chapter 449 (except sections 44902, 44903(d), 44904, 
        and 44907-44909) of this title; or
          (B) a regulation prescribed or order issued under any 
        provision to which clause (A) of this paragraph 
        applies.
  (3) A civil penalty of not more than $10,000 may be imposed 
for each violation under paragraph (1) of this subsection 
related to--
          (A) the transportation of hazardous material;
          (B) the registration or recordation under chapter 441 
        of this title of an aircraft not used to provide air 
        transportation;
          (C) a violation of section 44718(d), relating to the 
        limitation on construction or establishment of 
        landfills;
          (D) a violation of section 44725, relating to the 
        safe disposal of life-limited aircraft parts; or
          (E) a violation of section 41705, relating to 
        discrimination against handicapped individuals.
  (4) A separate violation occurs under this subsection for 
each day the violation (other than a violation of section 
41715) continues or, if applicable, for each flight involving 
the violation (other than a violation of section 41715).
  (5) Penalty for diversion of aviation revenues.--The amount 
of a civil penalty assessed under this section for a violation 
of section 47107(b) of this title (or any assurance made under 
such section) or section 47133 of this title may be increased 
above the otherwise applicable maximum amount under this 
section to an amount not to exceed 3 times the amount of 
revenues that are used in violation of such section.
  (6) Air service termination notice.--Notwithstanding 
paragraph (1), the maximum civil penalty for violating section 
41715 shall be $5,000 instead of $1,000.
  (7) Consumer protection.--Notwithstanding paragraphs (1) and 
(4), the maximum civil penalty for violating section 40127 or 
41712 (including a regulation prescribed or order issued under 
such section) or any other regulation prescribed by the 
Secretary that is intended to afford consumer protection to 
commercial air transportation passengers, shall be $2,500 for 
each violation.
  (8) Aviation security violations.--Notwithstanding paragraphs 
(1) and (2) of this subsection, the maximum civil penalty for 
violating chapter 449 or another requirement under this title 
administered by the Under Secretary of Transportation for 
Security is $10,000, except that the maximum civil penalty is 
$25,000 in the case of a person operating an aircraft for the 
transportation of passengers or property for compensation 
(except an airman serving as an airman).
  (b) Smoke Alarm Device Penalty.--(1) A passenger may not 
tamper with, disable, or destroy a smoke alarm device located 
in a lavatory on an aircraft providing air transportation or 
intrastate air transportation.
  (2) An individual violating this subsection is liable to the 
Government for a civil penalty of not more than $2,000.
  (c) Procedural Requirements.--(1) The Secretary of 
Transportation may impose a civil penalty for the following 
violations only after notice and an opportunity for a hearing:
          (A) a violation of subsection (b) of this section or 
        chapter 411, chapter 413 (except sections 41307 and 
        41310(b)-(f)), chapter 415 (except sections 41502, 
        41505, and 41507-41509), chapter 417 (except sections 
        41703, 41704, 41710, 41713, and 41714), chapter 419, 
        subchapter II of chapter 421, or section 44909 of this 
        title.
          (B) a violation of a regulation prescribed or order 
        issued under any provision to which clause (A) of this 
        paragraph applies.
          (C) a violation of any term of a certificate or 
        permit issued under section 41102, 41103, or 41302 of 
        this title.
          (D) a violation under subsection (a)(1) of this 
        section related to the transportation of hazardous 
        material.
  (2) The Secretary shall give written notice of the finding of 
a violation and the civil penalty under paragraph (1) of this 
subsection.
  (d) Administrative Imposition of Penalties.--(1) In this 
subsection--
          (A) ``flight engineer'' means an individual who holds 
        a flight engineer certificate issued under part 63 of 
        title 14, Code of Federal Regulations.
          (B) ``mechanic'' means an individual who holds a 
        mechanic certificate issued under part 65 of title 14, 
        Code of Federal Regulations.
          (C) ``pilot'' means an individual who holds a pilot 
        certificate issued under part 61 of title 14, Code of 
        Federal Regulations.
          (D) ``repairman'' means an individual who holds a 
        repairman certificate issued under part 65 of title 14, 
        Code of Federal Regulations.
  (2) The Administrator of the Federal Aviation Administration 
may impose a civil penalty for a violation of chapter 401 
(except sections 40103(a) and (d), 40105, 40106(b), 40116, and 
40117), chapter 441 (except section 44109), section 44502(b) or 
(c), chapter 447 (except sections 44717 and 44719-44723) or 
section 46301(b), [46302, 46303,] 46318, or 47107(b) (as 
further defined by the Secretary under section 47107(l) and 
including any assurance made under section 47107(b)) of this 
title or a regulation prescribed or order issued under any of 
those provisions. [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.] The Under 
Secretary of Transportation for Security may impose a civil 
penalty for a violation of section 114(l), section 40113, 
40119, chapter 449 (except sections 44902, 44903(d), 44907(a)--
(d)(1)(A), 44907(d)(1)(C)--(F), 44908, and 44909), section 
46302, 46303, or 46318 of this title, or a regulation 
prescribed or order issued under any of those provisions. The 
Under Secretary or Administrator shall give written notice of 
the finding of a violation and the penalty.
  (3) In a civil action to collect a civil penalty imposed by 
the Under Secretary or Administrator under this subsection, the 
issues of liability and the amount of the penalty may not be 
reexamined.
  (4) Notwithstanding paragraph (2) of this subsection, the 
district courts of the United States have exclusive 
jurisdiction of a civil action involving a penalty the Under 
Secretary or Administrator initiates if--
          (A) the amount in controversy is more than $50,000;
          (B) the action is in rem or another action in rem 
        based on the same violation has been brought;
          (C) the action involves an aircraft subject to a lien 
        that has been seized by the Government; or
          (D) another action has been brought for an injunction 
        based on the same violation.
  (5)(A) The Administrator may issue an order imposing a 
penalty under this subsection against an individual acting as a 
pilot, flight engineer, mechanic, or repairman only after 
advising the individual of the charges or any reason the 
Administrator relied on for the proposed penalty and providing 
the individual an opportunity to answer the charges and be 
heard about why the order shall not be issued.
  (B) An individual acting as a pilot, flight engineer, 
mechanic, or repairman may appeal an order imposing a penalty 
under this subsection to the National Transportation Safety 
Board. After notice and an opportunity for a hearing on the 
record, the Board shall affirm, modify, or reverse the order. 
The Board may modify a civil penalty imposed to a suspension or 
revocation of a certificate.
  (C) When conducting a hearing under this paragraph, the Board 
is not bound by findings of fact of the Administrator but is 
bound by all validly adopted interpretations of laws and 
regulations the Administrator carries out and of written agency 
policy guidance available to the public related to sanctions to 
be imposed under this section unless the Board finds an 
interpretation is arbitrary, capricious, or otherwise not 
according to law.
  (D) When an individual files an appeal with the Board under 
this paragraph, the order of the Administrator is stayed.
  (6) An individual substantially affected by an order of the 
Board under paragraph (5) of this subsection, or the 
Administrator when the Administrator decides that an order of 
the Board under paragraph (5) will have a significant adverse 
impact on carrying out this part, may obtain judicial review of 
the order under section 46110 of this title. The Administrator 
shall be made a party to the judicial review proceedings. 
Findings of fact of the Board are conclusive if supported by 
substantial evidence.
  (7)(A) The Administrator may impose a penalty on a person 
(except an individual acting as a pilot, flight engineer, 
mechanic, or repairman) only after notice and an opportunity 
for a hearing on the record.
  (B) In an appeal from a decision of an administrative law 
judge as the result of a hearing under subparagraph (A) of this 
paragraph, the Administrator shall consider only whether--
          (i) each finding of fact is supported by a 
        preponderance of reliable, probative, and substantial 
        evidence;
          (ii) each conclusion of law is made according to 
        applicable law, precedent, and public policy; and
          (iii) the judge committed a prejudicial error that 
        supports the appeal.
  (C) Except for good cause, a civil action involving a penalty 
under this paragraph may not be initiated later than 2 years 
after the violation occurs.
  (D) In the case of a violation of section 47107(b) of this 
title or any assurance made under such section--
          (i) a civil penalty shall not be assessed against an 
        individual;
          (ii) a civil penalty may be compromised as provided 
        under subsection (f); and
          (iii) judicial review of any order assessing a civil 
        penalty may be obtained only pursuant to section 46110 
        of this title.
  (8) The maximum civil penalty the Under Secretary, 
Administrator, or Board may impose under this subsection is 
$50,000.
  (9) This subsection applies only to a violation occurring 
after August 25, 1992.
  (e) Penalty Considerations.--In determining the amount of a 
civil penalty under subsection (a)(3) of this section related 
to transportation of hazardous material, the Secretary shall 
consider--
          (1) the nature, circumstances, extent, and gravity of 
        the violation;
          (2) with respect to the violator, the degree of 
        culpability, any history of prior violations, the 
        ability to pay, and any effect on the ability to 
        continue doing business; and
          (3) other matters that justice requires.
  (f) Compromise and Setoff.--(1)(A) The Secretary may 
compromise the amount of a civil penalty imposed for 
violating--
          (i) chapter 401 (except sections 40103(a) and (d), 
        40105, 40116, and 40117), chapter 441 (except section 
        44109), section 44502(b) or (c), chapter 447 (except 
        sections 44717 and 44719-44723), chapter 449 (except 
        sections 44902, 44903(d), 44904, 44907(a)-(d)(1)(A) and 
        (d)(1)(C)-(f), 44908, and 44909), or section 46302, 
        46303, or 47107(b) of this title; or
          (ii) a regulation prescribed or order issued under 
        any provision to which clause (i) of this subparagraph 
        applies.
  (B) The Postal Service may compromise the amount of a civil 
penalty imposed under subsection (a)(1)(D) of this section.
  (2) The Government may deduct the amount of a civil penalty 
imposed or compromised under this subsection from amounts it 
owes the person liable for the penalty.
  (g) Judicial Review.--An order of the [Secretary] Secretary, 
the Under Secretary of Transportation for Security, or the 
Administrator imposing a civil penalty may be reviewed 
judicially only under section 46110 of this title.
  (h) Nonapplication.--(1) This section does not apply to the 
following when performing official duties:
          (A) a member of the armed forces of the United 
        States.
          (B) a civilian employee of the Department of Defense 
        subject to the Uniform Code of Military Justice.
  (2) The appropriate military authority is responsible for 
taking necessary disciplinary action and submitting to the 
Secretary (or the Under Secretary of Transportation for 
Security with respect to security duties and powers designated 
to be carried out by the Under Secretary or the Administrator 
with respect to aviation safety duties and powers designated to 
be carried out by the Administrator) a timely report on action 
taken.

                             * * * * * * *

    CHAPTER 465. SPECIAL AIRCRAFT JURISDICTION OF THE UNITED STATES

                             * * * * * * *

Sec. 46503. Interference with [security] screening personnel; 
                    unauthorized circumvention of security systems or 
                    procedures

  (a) 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) Unauthorized Circumvention of Security Systems and 
Procedures.--An individual in an area within a commercial 
service airport in the United States who intentionally 
circumvents, in an unauthorized manner, a security system or 
procedure in the airport shall be fined under title 18, 
imprisoned for not more than 10 years, or both.

                             * * * * * * *

                    CHAPTER 471. AIRPORT DEVELOPMENT

                             * * * * * * *

Sec. 47115. Discretionary fund

  (a) Existence and Amounts in Fund.--The Secretary of 
Transportation has a discretionary fund. The fund consists of--
          (1) amounts subject to apportionment for a fiscal 
        year that are not apportioned under section 47114(c)-
        (e) of this title; and
          (2) 12.5 percent of amounts not apportioned under 
        section 47114 of this title because of section 
        47114(f).
  (b) Availability of Amounts.--Subject to subsection (c) of 
this section and section 47117(e) of this title, the fund is 
available for making grants for any purpose for which amounts 
are made available under section 48103 of this title that the 
Secretary considers most appropriate to carry out this 
subchapter.
  (c) Minimum Percentage for Primary and Reliever Airports.--At 
least 75 percent of the amount in the fund and distributed by 
the Secretary in a fiscal year shall be used for making 
grants--
          (1) to preserve and enhance capacity, safety, and 
        security at primary and reliever airports; and
          (2) to carry out airport noise compatibility planning 
        and programs at primary and reliever airports.
  (d) Considerations.--In selecting a project for a grant to 
preserve and enhance capacity as described in subsection (c)(1) 
of this section, the Secretary shall consider--
          (1) the effect the project will have on the overall 
        national air transportation system capacity;
          (2) the project benefit and cost, including, in the 
        case of a project at a reliever airport, the number of 
        operations projected to be diverted from a primary 
        airport to the reliever airport as a result of the 
        project, as well as the cost savings projected to be 
        realized by users of the local airport system;
          (3) the financial commitment from non-United States 
        Government sources to preserve or enhance airport 
        capacity;
          (4) the airport improvement priorities of the States, 
        and regional offices of the Administration, to the 
        extent such priorities are not in conflict with 
        paragraphs (1) and (2);
          (5) the projected growth in the number of passengers 
        that will be using the airport at which the project 
        will be carried out; and
          (6) any increase in the number of passenger boardings 
        in the preceding 12-month period at the airport at 
        which the project will be carried out, with priority 
        consideration to be given to projects at airports at 
        which the number of passenger boardings increased by at 
        least 20 percent as compared to the number of passenger 
        boardings in the 12-month period preceding such period.
  (e) Waiving Percentage Requirement.--If the Secretary decides 
the Secretary cannot comply with the percentage requirement of 
subsection (c) of this section in a fiscal year because there 
are insufficient qualified grant applications to meet that 
percentage, the amount the Secretary determines will not be 
distributed as required by subsection (c) is available for 
obligation during the fiscal year without regard to the 
requirement.
  (f) Consideration of Diversion of Revenues in Awarding 
Discretionary Grants.--
          (1) General rule.--Subject to paragraph (2), in 
        deciding whether or not to distribute funds to an 
        airport from the discretionary funds established by 
        subsection (a) of this section and section 47116 of 
        this title, the Secretary shall consider as a factor 
        militating against the distribution of such funds to 
        the airport the fact that the airport is using revenues 
        generated by the airport or by local taxes on aviation 
        fuel for purposes other than capital or operating costs 
        of the airport or the local airports system or other 
        local facilities which are owned or operated by the 
        owner or operator of the airport and directly and 
        substantially related to the actual air transportation 
        of passengers or property.
          (2) Required finding.--Paragraph (1) shall apply only 
        when the Secretary finds that the amount of revenues 
        used by the airport for purposes other than capital or 
        operating costs in the airport's fiscal year preceding 
        the date of the application for discretionary funds 
        exceeds the amount of such revenues in the airport's 
        first fiscal year ending after August 23, 1994, 
        adjusted by the Secretary for changes in the Consumer 
        Price Index of All Urban Consumers published by the 
        Bureau of Labor Statistics of the Department of Labor.
  (g) Minimum Amount To Be Credited.--
          (1) General rule.--In a fiscal year, there shall be 
        credited to the fund, out of amounts made available 
        under section 48103 of this title, an amount that is at 
        least equal to the sum of--
                  (A) $148,000,000; plus
                  (B) the total amount required from the fund 
                to carry out in the fiscal year letters of 
                intent issued before January 1, 1996, under 
                section 47110(e) of this title or the Airport 
                and Airway Improvement Act of 1982.
        The amount credited is exclusive of amounts that have 
        been apportioned in a prior fiscal year under section 
        47114 of this title and that remain available for 
        obligation.
          (2) Reduction of apportionments.--In a fiscal year in 
        which the amount credited under subsection (a) is less 
        than the minimum amount to be credited under paragraph 
        (1), the total amount calculated under paragraph (3) 
        shall be reduced by an amount that, when credited to 
        the fund, together with the amount credited under 
        subsection (a), equals such minimum amount.
          (3) Amount of reduction.--For a fiscal year, the 
        total amount available to make a reduction to carry out 
        paragraph (2) is the total of the amounts determined 
        under sections 47114(c)(1)(A), 47114(c)(2), 47114(d), 
        and 47117(e) of this title. Each amount shall be 
        reduced by an equal percentage to achieve the 
        reduction.
  (h) Priority for Letters of Intent.--In making grants in a 
fiscal year with funds made available under this section, the 
Secretary shall fulfill intentions to obligate under section 
47110(e).
  (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] non-Federal resources 
available to sponsor, the use of such [non-federal] non-Federal 
resources, and the degree to which the sponsor is providing 
increased funding for the project.

                             * * * * * * *

       CHAPTER 481. AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

                             * * * * * * *

Sec. 48107. Civil aviation security research and development

  After the review under section 44912(b) of this title is 
completed, necessary amounts may be appropriated to the 
Secretary of Transportation out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502) to make grants under section 
[44912(a)(4)(A).] 44912(a)(5)(A).

                             * * * * * * *

                AVIATION AND TRANSPORTATION SECURITY ACT

                             * * * * * * *

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 Under 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. 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)] section 47102(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. 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.] 
more than 12,500 pounds.
  (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.

                                  
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