```

[107th Congress Public Law 71]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ071.107]

[[Page 115 STAT. 597]]

Public Law 107-71
107th Congress

                                 An Act

 
 To improve aviation security, and for other purposes. <<NOTE: Nov. 19, 
                          2001 -  [S. 1447]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Aviation and Transportation 
Security Act.>>  assembled,

SECTION 1. SHORT TITLE. <<NOTE: 49 USC 40101 note.>> 

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

                       TITLE I--AVIATION SECURITY

SEC. 101. TRANSPORTATION SECURITY ADMINISTRATION.

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

``Sec. 114. Transportation Security Administration

    ``(a) In General.--The Transportation Security Administration shall 
be an administration of the Department of Transportation.
    ``(b) Under Secretary.--
            ``(1) Appointment.--The head of the Administration shall be 
        the Under Secretary of Transportation for Security. The Under 
        Secretary shall be appointed by the President, by and with the 
        advice and consent of the Senate.
            ``(2) Qualifications.--The Under Secretary must--
                    ``(A) be a citizen of the United States; and
                    ``(B) have experience in a field directly related to 
                transportation or security.
            ``(3) Term.--The term of office of an individual appointed 
        as the Under Secretary shall be 5 years.

    ``(c) Limitation on Ownership of Stocks and Bonds.--The Under 
Secretary may not own stock in or bonds of a transportation or security 
enterprise or an enterprise that makes equipment that could be used for 
security purposes.
    ``(d) Functions.--The Under Secretary shall be responsible for 
security in all modes of transportation, including--
            ``(1) carrying out chapter 449, relating to civil aviation 
        security, and related research and development activities; and
            ``(2) security responsibilities over other modes of 
        transportation that are exercised by the Department of 
        Transportation.

    ``(e) Screening Operations.--The Under Secretary shall--
            ``(1) be responsible for day-to-day Federal security 
        screening operations for passenger air transportation and 
        intrastate air transportation under sections 44901 and 44935;

[[Page 115 STAT. 598]]

            ``(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:

[[Page 115 STAT. 599]]

                    ``(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--

[[Page 115 STAT. 600]]

                    ``(A) to acquire (by purchase, lease, condemnation, 
                or otherwise) such real property, or any interest 
                therein, within and outside the continental United 
                States, as the Under Secretary considers necessary;
                    ``(B) to acquire (by purchase, lease, condemnation, 
                or otherwise) and to construct, repair, operate, and 
                maintain such personal property (including office space 
                and patents), or any interest therein, within and 
                outside the continental United States, as the Under 
                Secretary considers necessary;
                    ``(C) to lease to others such real and personal 
                property and to provide by contract or otherwise for 
                necessary facilities for the welfare of its employees 
                and to acquire, maintain, and operate equipment for 
                these facilities;
                    ``(D) to acquire services, including such personal 
                services as the Secretary determines necessary, and to 
                acquire (by purchase, lease, condemnation, or otherwise) 
                and to construct, repair, operate, and maintain research 
                and 
                testing sites and facilities; and
                    ``(E) in cooperation with the Administrator of the 
                Federal Aviation Administration, to utilize the research 
                and development facilities of the Federal Aviation 
                Administration.
            ``(2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by the 
        Government of the United States.

    ``(k) Transfers of Funds.--The Under Secretary is authorized to 
accept transfers of unobligated balances and unexpended balances of 
funds appropriated to other Federal agencies (as such term is defined in 
section 551(1) of title 5) to carry out functions transferred, on or 
after the date of enactment of the Aviation and Transportation Security 
Act, by law to the Under Secretary.
    ``(l) Regulations.--
            ``(1) In general.--The Under Secretary is authorized to 
        issue, rescind, and revise such regulations as are necessary to 
        carry out the functions of the Administration.
            ``(2) Emergency procedures.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law or executive order (including an 
                executive order requiring a cost-benefit analysis), if 
                the Under Secretary determines that a regulation or 
                security directive must be issued immediately in order 
                to protect transportation security, the Under Secretary 
                shall issue the regulation or security directive without 
                providing notice or an opportunity for comment and 
                without prior approval of the Secretary.
                    ``(B) Review by transportation security oversight 
                board.--Any regulation or security directive issued 
                under this paragraph shall be subject to review by the 
                Transportation Security Oversight Board established 
                under section 115. Any regulation or security directive 
                issued under this paragraph shall remain effective 
                unless disapproved by the Board or rescinded by the 
                Under Secretary.
            ``(3) Factors to consider.--In determining whether to issue, 
        rescind, or revise a regulation under this section, the Under 
        Secretary shall consider, as a factor in the final 
        determination, whether the costs of the regulation are excessive 
        in relation to the enhancement of security the regulation will

[[Page 115 STAT. 601]]

        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.

[[Page 115 STAT. 602]]

            ``(2) Powers.--While engaged in official duties of the 
        Administration as required to fulfill the responsibilities under 
        this section, a law enforcement officer designated under 
        paragraph (1) may--
                    ``(A) carry a firearm;
                    ``(B) make an arrest without a warrant for any 
                offense against the United States committed in the 
                presence of the officer, or for any felony cognizable 
                under the laws of the United States if the officer has 
                probable cause to believe that the person to be arrested 
                has committed or is committing the felony; and
                    ``(C) seek and execute warrants for arrest or 
                seizure of evidence issued under the authority of the 
                United States upon probable cause that a violation has 
                been committed.
            ``(3) Guidelines on exercise of authority.--The 
        authority provided by this subsection shall be exercised in 
        accordance with guidelines prescribed by the Under Secretary, 
        in consultation with the Attorney General of the United States, 
        and shall include adherence to the Attorney General's policy 
        on use of deadly force.
            ``(4) Revocation or suspension of authority.--The 
        powers authorized by this subsection may be rescinded or 
        suspended should the Attorney General determine that the Under 
        Secretary has not complied with the guidelines prescribed in 
        paragraph (3) and conveys the determination in writing to the 
        Secretary of Transportation and the Under Secretary.

    ``(r) Authority To Exempt.--The Under Secretary may grant an 
exemption from a regulation prescribed in carrying out this section if 
the Under Secretary determines that the exemption is in the public 
interest.''.
    (b) Conforming Amendment.--The analysis for chapter 1 of such title 
is amended by adding at the end the following:

``114. Transportation Security Administration.''.

    (c) Position of Under Secretary in Executive Schedule.--
            (1) In general.--Section 5313 of title 5, United States 
        Code, is amended by adding at the end the following:
            ``The Under Secretary of Transportation for Security.''.
            (2) <<NOTE:  5 USC 5313 note.>> Bonus eligibility.--In 
        addition to the annual rate of pay authorized by section 5313 of 
        title 5, United States Code, the Under Secretary may receive a 
        bonus for any calendar year not to exceed 30 percent of the 
        annual rate of pay, based on the Secretary's evaluation of the 
        Under Secretary's performance.
            (3) Conforming change.--Section 106(r)(2)(A) of title 49, 
        United States Code, is amended to read as follows:
                    ``(A) In general.--The Chief Operating Officer shall 
                be paid at an annual rate of basic pay to be determined 
                by the Administrator, with the approval of the Air 
                Traffic Services Subcommittee of the Aviation Management 
                Advisory Council. The annual rate may not exceed the 
                annual compensation paid under section 102 of title 3. 
                The Chief Operating Officer shall be subject to the 
                post-employment provisions of section 207 of title 18 as 
                if the position of Chief Operating Officer were 
                described in section 207(c)(2)(A)(i) of that title.''.

[[Page 115 STAT. 603]]

    (d) Cooperation With Other Agencies.--The last sentence of section 
106(m) of such title is amended by striking ``supplies and'' and 
inserting ``supplies, personnel, services, and''.
    (e) Security and Research and Development Activities.--Section 40119 
of such title is amended--
            (1) in subsection (a) by striking ``Administrator of the 
        Federal Aviation Administration'' and inserting ``Under 
        Secretary of Transportation for Security'';
            (2) in subsections (b) and (c) by striking ``Administrator'' 
        each place it appears and inserting ``Under Secretary''; and
            (3) in subsection (b)(1)(C) by striking ``air''.

    (f) References to FAA in Chapter 449.--Chapter 449 of such title is 
amended--
            (1) in section 44904(b)(5) by striking ``the 
        Administration'' and inserting ``the Transportation Security 
        Administration'';
            (2) in the second sentence of section 44913(a)(1) by 
        striking ``of the Administration'' and inserting ``of the 
        Transportation Security Administration'';
            (3) in section 44916(a)--
                    (A) in the first sentence by striking 
                ``Administrator'' and inserting ``Under Secretary of 
                Transportation for Security''; and
                    (B) in the second sentence by striking 
                ``Administration'' and inserting ``Transportation 
                Security Administration'';
            (4) in each of sections 44933(a) and 44934(b) by striking 
        ``Assistant Administrator for Civil Aviation Security'' and 
        inserting ``Under Secretary'';
            (5) in section 44934(b)(1) by striking ``Assistant 
        Administrator'' and inserting ``Under Secretary'';
            (6) by striking sections 44931 and 44932 and the items 
        relating to such sections in the analysis for such chapter;
            (7) <<NOTE: 49 USC 44901-44906, 44911-44916, 44934-44938.>>  
        by striking ``Administrator'' each place it appears in such 
        chapter (except in subsections (f) and (h) of section 44936) and 
        inserting ``Under Secretary'';
            (8) <<NOTE: 49 USC 44903.>>  by striking ``Administrator's'' 
        each place it appears in such chapter and inserting ``Under 
        Secretary's''; and
            (9) <<NOTE: 49 USC 44902-44906, 44911-44915, 44934-
        44938.>> by striking ``of the Federal Aviation Administration'' 
        each place it appears in such chapter (except in section 
        44936(f)) and inserting ``of Transportation for Security''.

    (g) <<NOTE: 49 USC 44901 note.>> Transition Provisions.--
            (1) Schedule for assumption of civil aviation security 
        functions.-- <<NOTE: Deadline.>> Not later than 3 months after 
        the date of enactment of this Act, the Under Secretary of 
        Transportation for Security shall assume civil aviation security 
        functions and responsibilities under chapter 449 of title 49, 
        United States Code, as amended by this Act, in accordance with a 
        schedule to be developed by the Secretary of Transportation, in 
        consultation with air carriers, foreign air carriers, and the 
        Administrator of the Federal Aviation 
        Administration. <<NOTE: Notice.>>  The Under Secretary shall 
        publish an appropriate notice of the transfer of such security 
        functions and responsibilities before assuming the functions and 
        responsibilities.
            (2) Assumption of contracts.--As of the date specified in 
        paragraph (1), the Under Secretary may assume the rights and 
        responsibilities of an air carrier or foreign air carrier 
        contract for provision of passenger screening services at 
        airports in the United States described in section 44903(c), 
        subject to

[[Page 115 STAT. 604]]

        payment of adequate compensation to parties to the contract, if 
        any.
            (3) Assignment of contracts.--
                    (A) In general.--Upon request of the Under 
                Secretary, an air carrier or foreign air carrier 
                carrying out a screening or security function under 
                chapter 449 of title 49, United States Code, may enter 
                into an agreement with the Under Secretary to transfer 
                any contract the carrier has entered into with respect 
                to carrying out the function, before the Under Secretary 
                assumes responsibility for the function.
                    (B) Schedule.--The Under Secretary may enter into an 
                agreement under subparagraph (A) as soon as possible, 
                but not later than 90 days after the date of enactment 
                of this Act. The Under Secretary may enter into such an 
                agreement for one 180-day period and may extend such 
                agreement for one 90-day period if the Under Secretary 
                determines it necessary.
            (4) Transfer of ownership.--In recognition of the assumption 
        of the financial costs of security screening of passengers and 
        property at airports, and as soon as practical after the date of 
        enactment of this Act, air carriers may enter into agreements 
        with the Under Secretary to transfer the ownership, at no cost 
        to the United States Government, of any personal property, 
        equipment, supplies, or other material associated with such 
        screening, regardless of the source of funds used to acquire the 
        property, that the Secretary determines to be useful for the 
        performance of security screening of passengers and property at 
        airports.
            (5) Performance of under secretary's functions 
        during interim period.--Until the Under Secretary takes 
        office, the functions of the Under Secretary that relate to 
        avia-
        tion security may be carried out by the Secretary or the Sec-
        retary's designee.

SEC. 102. TRANSPORTATION SECURITY OVERSIGHT BOARD.

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

``Sec. 115. Transportation Security Oversight Board

    ``(a) In General.-- <<NOTE: Establishment.>> 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.

[[Page 115 STAT. 605]]

                    ``(G) One member appointed by the President to 
                represent the Office of Homeland Security.
            ``(2) Chairperson.--The Chairperson of the Board shall be 
        the Secretary of Transportation.

    ``(c) Duties.--The Board shall--
            ``(1) review and ratify or disapprove any regulation or 
        security directive issued by the Under Secretary of 
        Transportation for security under section 114(l)(2) within 30 
        days after the date of issuance of such regulation or directive;
            ``(2) facilitate the coordination of intelligence, security, 
        and law enforcement activities affecting transportation;
            ``(3) facilitate the sharing of intelligence, security, and 
        law enforcement information affecting transportation among 
        Federal agencies and with carriers and other transportation pro-
        viders as appropriate;
            ``(4) explore the technical feasibility of developing a 
        common database of individuals who may pose a threat to 
        transportation or national security;
            ``(5) review plans for transportation security;
            ``(6) make recommendations to the Under Secretary 
        regarding matters reviewed under paragraph (5).

    ``(d) Quarterly Meetings.--The Board shall meet at least quarterly.
    ``(e) Consideration of Security Information.--A majority of the 
Board may vote to close a meeting of the Board to the public, except 
that meetings shall be closed to the public whenever classified, 
sensitive security information, or information protected in accordance 
with section 40119(b), will be discussed.''.
    (b) Policies and Procedures.--Section 44911(b) of such title is 
amended by striking ``international''.
    (c) Strategic Planning.--Section 44911(c) of such title is amended 
by striking ``consider placing'' and inserting ``place''.
    (d) Conforming Amendment.--The analysis for chapter 1 of such title 
is amended by adding at the end the following:

``115. Transportation Security Oversight Board.''.

SEC. 103. FEDERAL SECURITY MANAGERS.

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

``Sec. 44933. Federal Security Managers

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

SEC. 104. IMPROVED FLIGHT DECK INTEGRITY MEASURES. <<NOTE: 49 USC 44903 
            note.>> 

    (a) In General.--As soon as possible after the date of enactment of 
this Act, the Administrator of the Federal Aviation Administration 
shall--

[[Page 115 STAT. 606]]

            (1) issue an order (without regard to the provisions of 
        chapter 5 of title 5, United States Code)--
                    (A) prohibiting access to the flight deck of 
                aircraft engaged in passenger air transportation or 
                intrastate air transportation that are required to have 
                a door between the passenger and pilot compartments 
                under title 14, Code of Federal Regulations, except to 
                authorized persons;
                    (B) requiring the strengthening of the flight deck 
                door and locks on any such aircraft operating in air 
                transportation or intrastate air transportation that has 
                a rigid door in a bulkhead between the flight deck and 
                the passenger area to ensure that the door cannot be 
                forced open from the passenger compartment;
                    (C) requiring that such flight deck doors remain 
                locked while any such aircraft is in flight except when 
                necessary to permit access and egress by authorized 
                persons; and
                    (D) prohibiting the possession of a key to any such 
                flight deck door by any member of the flight crew who is 
                not assigned to the flight deck; and
            (2) take such other action, including modification of safety 
        and security procedures and flight deck redesign, as may be 
        necessary to ensure the safety and security of the aircraft.

    (b) Implementation of Other Methods.--As soon as possible after such 
date of enactment, the Administrator of the Federal Aviation 
Administration may develop and implement methods--
            (1) to use video monitors or other devices to alert pilots 
        in the flight deck to activity in the cabin, except that the use 
        of such monitors or devices shall be subject to nondisclosure 
        requirements applicable to cockpit video recordings under 
        section 1114(c);
            (2) to ensure continuous operation of an aircraft 
        transponder in the event of an emergency; and
            (3) to revise the procedures by which cabin crews of 
        aircraft can notify flight deck crews of security breaches and 
        other emergencies, including providing for the installation of 
        switches or other devices or methods in an aircraft cabin to 
        enable flight crews to discreetly notify the pilots in the case 
        of a security breach occurring in the cabin.

    (c) Commuter Aircraft.--The Administrator shall investigate means of 
securing the flight deck of scheduled passenger aircraft operating in 
air transportation or intrastate air transportation that do not have a 
rigid fixed door with a lock between the passenger compartment and the 
flight deck and issue such an order as the Administrator deems 
appropriate to ensure the inaccessibility, to the greatest extent 
feasible, of the flight deck while the aircraft is so operating, taking 
into consideration such aircraft operating in regions where there is 
minimal threat to aviation security or national security.

SEC. 105. DEPLOYMENT OF FEDERAL AIR MARSHALS.

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

``Sec. 44917. Deployment of Federal air marshals

    ``(a) In General.--The Under Secretary of Transportation for 
Security under the authority provided by section 44903(d)--

[[Page 115 STAT. 607]]

            ``(1) may provide for deployment of Federal air marshals on 
        every passenger flight of air carriers in air transportation or 
        intrastate air transportation;
            ``(2) shall provide for deployment of Federal air marshals 
        on every such flight determined by the Secretary to present high 
        security risks;
            ``(3) shall provide for appropriate training, supervision, 
        and equipment of Federal air marshals;
            ``(4) shall require air carriers providing flights described 
        in paragraph (1) to provide seating for a Federal air marshal on 
        any such flight without regard to the availability of seats on 
        the flight and at no cost to the United States Government or the 
        marshal;
            ``(5) may require air carriers to provide, on a space-
        available basis, to an off-duty Federal air marshal a seat on a 
        flight to the airport nearest the marshal's home at no cost to 
        the marshal or the United States Government if the marshal is 
        traveling to that airport after completing his or her security 
        duties;
            ``(6) may enter into agreements with Federal, State, and 
        local agencies under which appropriately-trained law enforcement 
        personnel from such agencies, when traveling on a flight of an 
        air carrier, will carry a firearm and be prepared to assist 
        Federal air marshals;
            ``(7) shall establish procedures to ensure that Federal air 
        marshals are made aware of any armed or unarmed law enforcement 
        personnel on board an aircraft; and
            ``(8) may appoint--
                    ``(A) an individual who is a retired law enforcement 
                officer;
                    ``(B) an individual who is a retired member of the 
                Armed Forces; and
                    ``(C) an individual who has been furloughed from an 
                air carrier crew position in the 1-year period beginning 
                on September 11, 2001,
        as a Federal air marshal, regardless of age, if the individual 
        otherwise meets the background and fitness qualifications 
        required for Federal air marshals.

    ``(b) Long Distance Flights.--In making the determination under 
subsection (a)(2), nonstop, long distance flights, such as those 
targeted on September 11, 2001, should be a priority.
    ``(c) Interim Measures.--Until the Under Secretary completes 
implementation of subsection (a), the Under Secretary may use, after 
consultation with and concurrence of the heads of other Federal agencies 
and departments, personnel from those agencies and departments, on a 
nonreimbursable basis, to provide air marshal service.''.
    (b) Conforming Amendment.--The analysis for chapter 449 of such 
title is amended by adding after the item relating to section 44916 the 
following:

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

    (c) Basic Pay Defined.--Section 8331(3)(E) of title 5, United States 
Code, is amended to read as follows:
                    ``(E) availability pay--
                          ``(i) received by a criminal investigator 
                      under section 5545a of this title; or

[[Page 115 STAT. 608]]

                          ``(ii) received after September 11, 2001, by a 
                      Federal air marshal of the Department of 
                      Transportation, subject to all restrictions and 
                      earning limitations imposed on criminal 
                      investigators under section 5545a;''.

SEC. 106. IMPROVED AIRPORT PERIMETER ACCESS SECURITY.

    (a) In General.--Section 44903 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(h) Improved Airport Perimeter Access Security.--
            ``(1) In general.--The Under Secretary, in consultation with 
        the airport operator and law enforcement authorities, may order 
        the deployment of such personnel at any secure area of the 
        airport as necessary to counter the risk of criminal violence, 
        the risk of aircraft piracy at the airport, the risk to air 
        carrier aircraft operations at the airport, or to meet national 
        security concerns.
            ``(2) Security of aircraft and ground access to secure 
        areas.--In determining where to deploy such personnel, the Under 
        Secretary shall consider the physical security needs of air 
        traffic control facilities, parked aircraft, aircraft servicing 
        equipment, aircraft supplies (including fuel), automobile 
        parking facilities within airport perimeters or adjacent to 
        secured facilities, and access and transition areas at airports 
        served by other means of ground or water transportation.
            ``(3) Deployment of federal law enforcement per-
        sonnel.--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

[[Page 115 STAT. 609]]

                    ``(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.-- <<NOTE: 49 USC 44903 note.>> 
            (1) Technical support and financial assistance.--The Under 
        Secretary of Transportation for Security shall develop a plan 
        to--
                    (A) provide technical support to airports, each of 
                which had less than 1 percent of the total annual 
                enplanements in the United States for the most recent 
                calendar year for which data is available, to enhance 
                security operations; and
                    (B) provide financial assistance to those airports 
                to defray the costs of enhancing security.
            (2) Removal of certain restrictions.--
                    (A) Certification by operator.--If the operator of 
                an airport described in paragraph (1), after 
                consultation with the appropriate State and local law 
                enforcement authorities, determines that safeguards are 
                in place to sufficiently protect public safety, and so 
                certifies in writing to the Under Secretary, then any 
                security rule, order, or other directive restricting the 
                parking of passenger vehicles shall not apply at that 
                airport after the applicable time period specified in 
                subparagraph (B), unless the Under Secretary, taking 
                into account individual airport circumstances, notifies 
                the airport operator that the safeguards in place do not 
                adequately respond to specific security risks and that 
                the restriction must be continued in order to ensure 
                public safety.
                    (B) Countermand period.--The time period within 
                which the Secretary may notify an airport operator, 
                after receiving a certification under subparagraph (A), 
                that a restriction must be continued in order to ensure 
                public safety at the airport is--
                          (i) 15 days for a nonhub airport (as defined 
                      in section 41714(h) of title 49, United States 
                      Code);
                          (ii) 30 days for a small hub airport (as 
                      defined in such section);
                          (iii) 60 days for a medium hub airport (as 
                      defined in such section); and
                          (iv) 120 days for an airport that had at least 
                      1 percent of the total annual enplanements in the 
                      United States for the most recent calendar year 
                      for which data is available.

    (c) Improvement of Secured-Area Access Control.--Section 44903(g)(2) 
of title 49, United States Code, is amended--
            (1) by striking ``weaknesses by January 31, 2001;'' in 
        subparagraph (A) and inserting ``weaknesses;'';
            (2) by striking subparagraph (D) and inserting the fol-
        lowing:
                    ``(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;'';

[[Page 115 STAT. 610]]

            (3) by striking ``program by January 31, 2001;'' in 
        subparagraph (F) and inserting ``program;''; and
            (4) by striking subparagraph (G) and inserting the fol-
        lowing:
                    ``(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) <<NOTE: 49 USC 44903 note.>> Airport Security Awareness 
Programs.--The Under Secretary of Transportation for Security shall 
require scheduled passenger air carriers, and airports in the United 
States described in section 44903(c) to develop security awareness 
programs for airport employees, ground crews, gate, ticket, and curbside 
agents of the air carriers, and other individuals employed at such 
airports.

SEC. 107. CREW TRAINING.

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

``Sec. 44918. Crew training

    ``(a) In General.-- <<NOTE: Deadline.>> Not later than 60 days after 
the date of enactment of the Aviation and Transportation Security Act, 
the Administrator of the Federal Aviation Administration, in 
consultation with the Under Secretary of Transportation for Security, 
appropriate law enforcement, security, and terrorism experts, 
representatives of air carriers and labor organizations representing 
individuals employed in commercial aviation, shall develop detailed 
guidance for a scheduled passenger air carrier flight and cabin crew 
training program to prepare crew members for potential threat 
conditions.

    ``(b) Program Elements.--The guidance shall require such a program 
to include, at a minimum, elements that address the following:
            ``(1) Determination of the seriousness of any occurrence.
            ``(2) Crew communication and coordination.
            ``(3) Appropriate responses to defend oneself.
            ``(4) Use of protective devices assigned to crew members (to 
        the extent such devices are required by the Administrator or 
        Under Secretary).
            ``(5) Psychology of terrorists to cope with hijacker 
        behavior and passenger responses.
            ``(6) Live situational training exercises regarding various 
        threat conditions.
            ``(7) Flight deck procedures or aircraft maneuvers to defend 
        the aircraft.

[[Page 115 STAT. 611]]

            ``(8) Any other subject matter deemed appropriate by the 
        Administrator.

    ``(c) Air Carrier Programs.-- <<NOTE: Deadline.>> Within 60 days 
after the Administrator issues the guidance under subsection (a) in 
final form, each air carrier shall develop a flight and cabin crew 
training program in accordance with that guidance and submit it to the 
Administrator for approval. Within 30 days after receiving an air 
carrier's program under this subsection, the Administrator shall review 
the program and approve it or require the air carrier to make any 
revisions deemed necessary by the Administrator for the program to meet 
the guidance requirements.

    ``(d) Training.-- <<NOTE: Deadline.>> Within 180 days after the 
Administrator approves the training program developed by an air carrier 
under this section, the air carrier shall complete the training of all 
flight and cabin crews in accordance with that program.

    ``(e) Updates.--The Administrator shall update the training guidance 
issued under subsection (a) from time to time to reflect new or 
different security threats and require air carriers to revise their 
programs accordingly and provide additional training to their flight and 
cabin crews.''.
    (b) Conforming Amendment.--The chapter analysis for 
chapter 449 of title 49, United States Code, is amended by inserting 
after the item relating to section 44917 the following:

``44918. Crew training.''.

SEC. 108. SECURITY SCREENING BY PRIVATE COMPANIES.

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

``Sec. 44919. Security screening pilot program

    ``(a) Establishment of Program.--The Under Secretary shall establish 
a pilot program under which, upon approval of an application submitted 
by an operator of an airport, the screening of passengers and property 
at the airport under section 44901 will be 
carried out by the screening personnel of a qualified private 
screening company under a contract entered into with the Under 
Secretary.
    ``(b) Period of Pilot Program.--The pilot program under this section 
shall begin on the last day of the 1-year period beginning on the date 
of enactment of this section and end on the last day of the 3-year 
period beginning on such date of enactment.
    ``(c) Applications.--An operator of an airport may submit to the 
Under Secretary an application to participate in the pilot program under 
this section.
    ``(d) Selection of Airports.--From among applications sub-
mitted under subsection (c), the Under Secretary may select for 
participation in the pilot program not more than 1 airport from 
each of the 5 airport security risk categories, as defined by the 
Under Secretary.
    ``(e) Supervision of Screened Personnel.--The Under Secretary shall 
provide Federal Government supervisors to oversee all screening at each 
airport participating in the pilot program under this section and 
provide Federal Government law enforcement officers at the airport 
pursuant to this chapter.
    ``(f) Qualified Private Screening Company.--A private screening 
company is qualified to provide screening services at an airport 
participating in the pilot program under this section

[[Page 115 STAT. 612]]

if the company will only employ individuals to provide such services who 
meet all the requirements of this chapter applicable to Federal 
Government personnel who perform screening services at airports under 
this chapter and will provide compensation and other benefits to such 
individuals that are not less than the level of compensation and other 
benefits provided to such Federal Government personnel in accordance 
with this chapter.
    ``(g) Standards for Private Screening Companies.--The Under 
Secretary may enter into a contract with a private screening company to 
provide screening at an airport participating in the pilot program under 
this section only if the Under Secretary determines and certifies to 
Congress that the private screening company is owned and controlled by a 
citizen of the United States, to the extent that the Under Secretary 
determines that there are private screening companies owned and 
controlled by such citizens.
    ``(h) Termination of Contracts.--The Under Secretary may terminate 
any contract entered into with a private screening company to provide 
screening services at an airport under the pilot program if the Under 
Secretary finds that the company has failed repeatedly to comply with 
any standard, regulation, directive, order, law, or contract applicable 
to the hiring or training of personnel to provide such services or to 
the provision of screening at the airport.
    ``(i) Election.--If a contract is in effect with respect to 
screening at an airport under the pilot program on the last day 
of the 3-year period beginning on the date of enactment of this 
section, the operator of the airport may elect to continue to have 
such screening carried out by the screening personnel of a qualified 
private screening company under a contract entered into with the Under 
Secretary under section 44920 or by Federal Government personnel in 
accordance with this chapter.

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

    ``(a) In General.--On or after the last day of the 2-year period 
beginning on the date on which the Under Secretary transmits to Congress 
the certification required by section 110(c) of the Aviation and 
Transportation Security Act, an operator of an airport may submit to the 
Under Secretary an application to have the screening of passengers and 
property at the airport under section 44901 to be carried out by the 
screening personnel of a qualified private screening company under a 
contract entered into with the Under Secretary.
    ``(b) Approval of Applications.--The Under Secretary may approve any 
application submitted under subsection (a).
    ``(c) Qualified Private Screening Company.--A private screening 
company is qualified to provide screening services at an airport under 
this section if the company will only employ individuals to provide such 
services who meet all the requirements of this chapter applicable to 
Federal Government personnel who perform screening services at airports 
under this chapter and will provide compensation and other benefits to 
such individuals that are not less than the level of compensation and 
other benefits provided to such Federal Government personnel in 
accordance with this chapter.
    ``(d) Standards for Private Screening Companies.--The Under 
Secretary may enter into a contract with a private screening company to 
provide screening at an airport under this section

[[Page 115 STAT. 613]]

only if the Under Secretary determines and certifies to Congress that--
            ``(1) the level of screening services and protection 
        provided at the airport under the contract will be equal to or 
        greater than the level that would be provided at the airport by 
        Federal Government personnel under this chapter; and
            ``(2) the private screening company is owned and controlled 
        by a citizen of the United States, to the extent that the Under 
        Secretary determines that there are private screening companies 
        owned and controlled by such citizens.

    ``(e) Supervision of Screened Personnel.--The Under Secretary shall 
provide Federal Government supervisors to oversee all screening at each 
airport at which screening services are provided under this section and 
provide Federal Government law enforcement officers at the airport 
pursuant to this chapter.
    ``(f) Termination of Contracts.--The Under Secretary may terminate 
any contract entered into with a private screening company to provide 
screening services at an airport under this section if the Under 
Secretary finds that the company has failed repeatedly to comply with 
any standard, regulation, directive, order, law, or contract applicable 
to the hiring or training of personnel to provide such services or to 
the provision of screening at the airport.''.
    (b) Clerical Amendment.--The analysis for such subchapter is amended 
by adding after the item relating to section 44918 the following:

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

SEC. 109. ENHANCED SECURITY MEASURES. <<NOTE: 49 USC 114 note.>> 

    (a) In General.--The Under Secretary of Transportation for Security 
may take the following actions:
            (1) Require effective 911 emergency call capability for 
        telephones serving passenger aircraft and passenger trains.
            (2) Establish a uniform system of identification for all 
        State and local law enforcement personnel for use in obtaining 
        permission to carry weapons in aircraft cabins and in obtaining 
        access to a secured area of an airport, if otherwise authorized 
        to carry such weapons.
            (3) Establish requirements to implement trusted passenger 
        programs and use available technologies to expedite the security 
        screening of passengers who participate in such programs, 
        thereby allowing security screening personnel to focus on those 
        passengers who should be subject to more extensive screening.
            (4) In consultation with the Commissioner of the Food and 
        Drug Administration, develop alternative security procedures 
        under which a medical product to be transported on a flight of 
        an air carrier would not be subject to an inspection that would 
        irreversibly damage the product.
            (5) Provide for the use of technologies, including wireless 
        and wire line data technologies, to enable the private and 
        secure communication of threats to aid in the screening of 
        passengers and other individuals on airport property who are 
        identified on any State or Federal security-related data base 
        for the purpose of having an integrated response coordination of 
        various authorized airport security forces.
            (6) In consultation with the Administrator of the Federal 
        Aviation Administration, consider whether to require all pilot

[[Page 115 STAT. 614]]

        licenses to incorporate a photograph of the license holder and 
        appropriate biometric imprints.
            (7) Provide for the use of voice stress analysis, biometric, 
        or other technologies to prevent a person who might pose a 
        danger to air safety or security from boarding the aircraft of 
        an air carrier or foreign air carrier in air transportation or 
        intrastate air transportation.
            (8) Provide for the use of technology that will permit 
        enhanced instant communications and information between airborne 
        passenger aircraft and appropriate individuals or facilities on 
        the ground.

    (b) Report.-- <<NOTE: Deadline.>> Not later than 6 months after the 
date of enactment of this Act, and annually thereafter until the Under 
Secretary has implemented or decided not to take each of the actions 
specified in subsection (a), the Under Secretary shall transmit to 
Congress a report on the progress of the Under Secretary in evaluating 
and taking such actions, including any legislative recommendations that 
the Under Secretary may have for enhancing transportation security.

SEC. 110. SCREENING.

    (a) Review and Development of Ways To Strengthen Security.--Section 
44932(c) of title 49, United States Code, is 
amended--
            (1) by striking ``x-ray'' in paragraph (4);
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking ``passengers.'' in paragraph (5) and 
        inserting ``passengers;''; and
            (4) by adding at the end the following:
            ``(6) to strengthen and enhance the ability to detect or 
        neutralize nonexplosive weapons, such as biological, chemical, 
        or similar substances; and
            ``(7) to evaluate such additional measures as may be 
        appropriate to enhance inspection of passengers, baggage, and 
        cargo.''.

    (b) Passengers and Property.--Section 44901 of title 49, United 
States Code, is amended--
            (1) by redesignating subsection (c) as subsection (h); and
            (2) by striking subsections (a) and (b) and inserting the 
        following:

    ``(a) In General.--The Under Secretary of Transportation for 
Security shall provide for the screening of all passengers and property, 
including United States mail, cargo, carry-on and checked baggage, and 
other articles, that will be carried aboard a passenger aircraft 
operated by an air carrier or foreign air carrier in air transportation 
or intrastate air transportation. In the case of flights and flight 
segments originating in the United States, the screening shall take 
place before boarding and shall be carried out by a Federal Government 
employee (as defined in section 2105 of title 5, United States Code), 
except as otherwise provided in section 44919 or 44920 and except for 
identifying passengers and baggage for screening under the CAPPS and 
known shipper programs and conducting positive bag-match programs.
    ``(b) Supervision of Screening.--All screening of passengers and 
property at airports in the United States where screening is required 
under this section shall be supervised by uniformed Federal personnel of 
the Transportation Security Administration

[[Page 115 STAT. 615]]

who shall have the power to order the dismissal of any individual 
performing such screening.
    ``(c) Checked Baggage.-- <<NOTE: Deadline.>> A system must be in 
operation to screen all checked baggage at all airports in the United 
States as soon as practicable but not later than the 60th day following 
the date of enactment of the Aviation and Transportation Security Act.

    ``(d) Explosive Detection Systems.--
            ``(1) In general.--The Under Secretary of Transportation for 
        Security shall take all necessary action to ensure that--
                    ``(A) explosive detection systems are deployed as 
                soon as possible to ensure that all United States 
                airports described in section 44903(c) have sufficient 
                explosive detection systems to screen all checked 
                baggage no later than December 31, 2002, and that as 
                soon as such systems are in place at an airport, all 
                checked baggage at the airport is screened by those 
                systems; and
                    ``(B) all systems deployed under subparagraph (A) 
                are fully utilized; and
                    ``(C) if explosive detection equipment at an airport 
                is unavailable, all checked baggage is screened by an 
                alternative means.

    ``(e) Mandatory Screening Where EDS Not Yet Available.-- 
<<NOTE: Deadline.>> As soon as practicable but not later than the 60th 
day following the date of enactment of the Aviation and Transportation 
Security Act and until the requirements of subsection (b)(1)(A) are met, 
the Under Secretary shall require alternative means for screening any 
piece of checked baggage that is not screened by an explosive detection 
system. Such alternative means may include 1 or more of the following:
            ``(1) A bag-match program that ensures that no checked 
        baggage is placed aboard an aircraft unless the passenger who 
        checked the baggage is aboard the aircraft.
            ``(2) Manual search.
            ``(3) Search by canine explosive detection units in 
        combination with other means.
            ``(4) Other means or technology approved by the Under 
        Secretary.

    ``(f) Cargo Deadline.--A system must be in operation to screen, 
inspect, or otherwise ensure the security of all cargo that is to be 
transported in all-cargo aircraft in air transportation and intrastate 
air transportation as soon as practicable after the date of enactment of 
the Aviation and Transportation Security Act.
    ``(g) Deployment of Armed Personnel.--
            ``(1) In general.--The Under Secretary shall order the 
        deployment of law enforcement personnel authorized to carry 
        firearms at each airport security screening location to ensure 
        passenger safety and national security.
            ``(2) Minimum requirements.--Except at airports required to 
        enter into agreements under subsection (c), the Under Secretary 
        shall order the deployment of at least 1 law enforcement officer 
        at each airport security screening location. At the 100 largest 
        airports in the United States, in terms of annual passenger 
        enplanements for the most recent calendar year for which data 
        are available, the Under Secretary shall order the deployment of 
        additional law enforcement personnel at airport security 
        screening locations if the Under Secretary determines

[[Page 115 STAT. 616]]

        that the additional deployment is necessary to ensure passenger 
        safety and national security.''.

    (c) Deadline for Deployment of Federal Screeners.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Under Secretary of Transportation for 
        Security shall deploy at all airports in the United States where 
        screening is required under section 44901 of title 49, United 
        States Code, a sufficient number of Federal screeners, Federal 
        Security Managers, Federal security personnel, and Federal law 
        enforcement officers to conduct the screening of all passengers 
        and property under section 44901 of such title at such airports.
            (2) Certification to congress.--Not later than 1 year after 
        the date of enactment of this Act, the Under Secretary shall 
        transmit to Congress a certification that the requirement of 
        paragraph (1) has been met.

    (d) <<NOTE: 49 USC 44901 note.>> Reports.--
            (1) Deployment.-- <<NOTE: Deadline.>> Within 6 months after 
        the date of enactment of this Act, the Under Secretary of 
        Transportation for Security shall report to the Committee on 
        Commerce, Science, and Transportation of the Senate and to the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives on the deployment of the systems required by 
        section 44901(c) of title 49, United States Code. The Under 
        Secretary shall include in the report--
                    (A) an installation schedule;
                    (B) the dates of installation of each system; and
                    (C) the date on which each system installed is 
                operational.
            (2) Screening of small aircraft.-- 
        <<NOTE: Deadline.>> Within 1 year after the date of enactment of 
        this Act, the Under Secretary of Transportation for Security 
        shall transmit a report to the Com-
        mittee on Commerce, Science, and Transportation of the Senate 
        and Committee on Transportation and Infrastructure of the 
        House of Representatives on the screening requirements 
        applicable to passengers boarding, and property being carried 
        aboard, aircraft with 60 seats or less used in scheduled 
        passenger service with recommendations for any necessary changes 
        in those requirements.
SEC. 111. TRAINING AND EMPLOYMENT OF SECURITY SCREENING PERSONNEL.

    (a) In General.--Section 44935 of title 49, United States Code, is 
amended--
            (1) by redesignating subsection (f) as subsection (i); and
            (2) by striking subsection (e) and inserting the following:

    ``(e) Security Screeners.--
            ``(1) Training program.--The Under Secretary of 
        Transportation for Security shall establish a program for the 
        hiring and training of security screening personnel.
            ``(2) Hiring.--
                    ``(A) Qualifications.-- <<NOTE: Deadline.>> 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

[[Page 115 STAT. 617]]

                provision of law, those standards shall require, at a 
                min-
                imum, an individual--
                          ``(i) to have a satisfactory or better score 
                      on a Federal security screening personnel 
                      selection examination;
                          ``(ii) to be a citizen of the United States;
                          ``(iii) to meet, at a minimum, the 
                      requirements set forth in subsection (f);
                          ``(iv) to meet such other qualifications as 
                      the Under Secretary may establish; and
                          ``(v) to have the ability to demonstrate daily 
                      a fitness for duty without any impairment due to 
                      illegal drugs, sleep deprivation, medication, or 
                      alcohol.
                    ``(B) Background checks.--The Under Secretary shall 
                require that an individual to be hired as a security 
                screener undergo an employment investigation (including 
                a criminal history record check) under section 
                44936(a)(1).
                    ``(C) Disqualification of individuals who present 
                national security risks.--The Under Secretary, in 
                consultation with the heads of other appropriate Federal 
                agencies, shall establish procedures, in addition to any 
                background check conducted under section 44936, to 
                ensure that no individual who presents a threat to 
                national security is employed as a security screener.
            ``(3) Examination; review of existing rules.--The Under 
        Secretary shall develop a security screening personnel 
        examination for use in determining the qualification of 
        individuals seeking employment as security screening personnel. 
        The Under Secretary shall also review, and revise as necessary, 
        any standard, rule, or regulation governing the employment of 
        individuals as security screening personnel.

    ``(f) Employment Standards for Screening Personnel.--
            ``(1) Screener requirements.--Notwithstanding any provision 
        of law, an individual may not be deployed as a security screener 
        unless that individual meets the following requirements:
                    ``(A) The individual shall possess a high school 
                diploma, a general equivalency diploma, or experience 
                that the Under Secretary has determined to be sufficient 
                for the individual to perform the duties of the 
                position.
                    ``(B) The individual shall possess basic aptitudes 
                and physical abilities, including color perception, 
                visual and aural acuity, physical coordination, and 
                motor skills, to the following standards:
                          ``(i) Screeners operating screening equipment 
                      shall be able to distinguish on the screening 
                      equipment monitor the appropriate imaging standard 
                      specified by the Under Secretary.
                          ``(ii) Screeners operating any screening 
                      equipment shall be able to distinguish each color 
                      displayed on every type of screening equipment and 
                      explain what each color signifies.
                          ``(iii) Screeners shall be able to hear and 
                      respond to the spoken voice and to audible alarms 
                      generated by screening equipment in an active 
                      checkpoint environment.

[[Page 115 STAT. 618]]

                          ``(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 proc-
                      essing.
                          ``(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

[[Page 115 STAT. 619]]

                    ``(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 per-
        sonnel.

    ``(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.-- <<NOTE: Deadline.>> 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 min-
        imum, 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 indi-
vidual who screens passengers and property pursuant to section

[[Page 115 STAT. 620]]

44901 to be attired while on duty in a uniform approved by the Under 
Secretary.''.
    (b) Conforming Amendments.--Section 44936(a)(1) of title 49, United 
States Code, is amended--
            (1) in subparagraph (A) by inserting ``as a security 
        screener under section 44935(e) or a position'' after ``a 
        position''; and
            (2) in subparagraph (E) by striking clause (iv).

    (c) <<NOTE: 49 USC 44935 note.>> Transition.--The Under Secretary of 
Transportation for Security shall complete the full implementation of 
section 44935 (e), (f), (g), and (h) of title 49, United States Code, as 
amended by subsection (a), as soon as is practicable. The Under 
Secretary may make or continue such arrangements for the training of 
security screeners under that section as the Under Secretary determines 
necessary pending full implementation of that section as so 
amended.

    (d) <<NOTE: 49 USC 44935 note.>> Screener Personnel.--
Notwithstanding any other provision of law, the Under Secretary of 
Transportation for Security may employ, appoint, discipline, terminate, 
and fix the compensation, terms, and conditions of employment of Federal 
service for such a number of individuals as the Under Secretary 
determines to be necessary to carry out the screening functions of the 
Under Secretary under section 44901 of title 49, United States Code. The 
Under Secretary shall establish levels of compensation and other 
benefits for individuals so employed.

SEC. 112. RESEARCH AND DEVELOPMENT.

    (a) In General.--Section 44912(b)(1) of title 49, United States 
Code, is amended--
            (1) by striking ``complete an intensive review of'' and 
        inserting ``periodically review'';
            (2) by striking ``commercial aircraft in service and 
        expected to be in service in the 10-year period beginning on 
        November 16, 1990;'' in subparagraph (B) and inserting 
        ``aircraft in air transportation;''; and
            (3) by redesignating subparagraphs (D) through (F) as 
        subparagraphs (E) through (G), respectively, and inserting after 
        subparagraph (C) the following:
                    ``(D) the potential release of chemical, biological, 
                or similar weapons or devices either within an aircraft 
                or within an airport;''.

    (b) Additional Matters Regarding Research and Development.--
            (1) Additional program requirements.--Subsection (a) of 
        section 44912 of title 49, United States Code, is amended--
                    (A) by redesignating paragraph (4) as paragraph (5); 
                and
                    (B) by inserting after paragraph (3) the following 
                new paragraph (4):

    ``(4)(A) In carrying out the program established under this 
subsection, the Administrator shall designate an individual to be 
responsible for engineering, research, and development with respect to 
security technology under the program.
    ``(B) The individual designated under subparagraph (A) shall use 
appropriate systems engineering and risk management models in making 
decisions regarding the allocation of funds for 
engineering, research, and development with respect to security 
technology under the program.

[[Page 115 STAT. 621]]

    ``(C) The individual designated under <<NOTE: Reports.>>  
subparagraph (A) shall, on an annual basis, submit to the Research, 
Engineering and Development Advisory Committee a report on activities 
under this paragraph during the preceding year. Each report shall 
include, for the year covered by such report, information on--
            ``(i) progress made in engineering, research, and 
        development with respect to security technology;
            ``(ii) the allocation of funds for engineering, research, 
        and development with respect to security technology; and
            ``(iii) engineering, research, and development with respect 
        to any technologies drawn from other agencies, including the 
        rationale for engineering, research, and development with 
        respect to such technologies.''.
            (2) Review of threats.--Subsection (b)(1) of that section is 
        further amended--
                    (A) by redesignating subparagraphs (A) through (G) 
                as subparagraphs (B) through (H) respectively; and
                    (B) by inserting before subparagraph (B), as so 
                redesignated, the following new subparagraph (A):
            ``(A) a comprehensive systems analysis (employing 
        vulnerability analysis, threat attribute definition, and 
        technology roadmaps) of the civil aviation system, including--
                    ``(i) the destruction, commandeering, or diversion 
                of civil aircraft or the use of civil aircraft as a 
                weapon; and
                    ``(ii) the disruption of civil aviation service, 
                including by cyber attack;''.
            (3) Scientific advisory panel.--Subsection (c) of that 
        section is amended to read as follows:

    ``(c) Scientific Advisory Panel.-- <<NOTE: Establishment.>> (1) The 
Administrator shall establish a scientific advisory panel, as a 
subcommittee of the Research, Engineering, and Development Advisory 
Committee, to review, comment on, advise the progress of, and recommend 
modifications in, the program established under subsection (a) of this 
section, including the need for long-range research programs to detect 
and prevent catastrophic damage to commercial aircraft, commercial 
aviation facilities, commercial aviation personnel and passengers, and 
other components of the commercial aviation 
system by the next generation of terrorist weapons.

    ``(2)(A) The advisory panel shall consist of individuals who have 
scientific and technical expertise in--
            ``(i) the development and testing of effective explosive 
        detection systems;
            ``(ii) aircraft structure and experimentation to decide on 
        the type and minimum weights of explosives that an effective 
        explosive detection technology must be capable of detecting;
            ``(iii) technologies involved in minimizing airframe damage 
        to aircraft from explosives; and
            ``(iv) other scientific and technical areas the 
        Administrator considers appropriate.

    ``(B) In appointing individuals to the advisory panel, the 
Administrator should consider individuals from academia and the national 
laboratories, as appropriate.
    ``(3) The Administrator shall organize the advisory panel into teams 
capable of undertaking the review of policies and technologies upon 
request.
    ``(4) <<NOTE: Deadline.>>  Not later than 90 days after the date of 
the enactment of the Aviation and Transportation Security Act, and every 
two

[[Page 115 STAT. 622]]

years thereafter, the Administrator shall review the composition of the 
advisory panel in order to ensure that the expertise of the individuals 
on the panel is suited to the current and anticipated duties of the 
panel.''.

SEC. 113. FLIGHT SCHOOL SECURITY.

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

``Sec. 44939. Training to operate certain aircraft

    ``(a) Waiting Period.--A person subject to regulation under this 
part may provide training in the operation of any aircraft having a 
maximum certificated takeoff weight of 12,500 pounds or more to an alien 
(as defined in section 101(a)(3) of the Immigration and Nationality Act 
(8 U.S.C. 1101(a)(3))) or to any other individual specified by the Under 
Secretary of Transportation for Security only if--
            ``(1) that person has first notified the Attorney General 
        that the individual has requested such training and furnished 
        the Attorney General with that individual's identification in 
        such form as the Attorney General may require; and
            ``(2) <<NOTE: Deadline.>>  the Attorney General has not 
        directed, within 45 days after being notified under paragraph 
        (1), that person not to provide the requested training because 
        the Attorney General has determined that the individual presents 
        a risk to aviation or national security.

    ``(b) Interruption of Training.--If the Attorney General, more than 
45 days after receiving notification under subsection (a) from a person 
providing training described in subsection (a), determines that the 
individual presents a risk to aviation or national security, the 
Attorney General shall immediately notify the person providing the 
training of the determination and that person shall immediately 
terminate the training.
    ``(c) Covered Training.--For the purposes of subsection (a), 
training includes in-flight training, training in a simulator, and any 
other form or aspect of training.
    ``(d) Security Awareness Training for Employees.--The Under 
Secretary shall require flight schools to conduct a security awareness 
program for flight school employees to increase their awareness of 
suspicious circumstances and activities of individuals enrolling in or 
attending flight school.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

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

    (c) <<NOTE: 49 USC 44939 note.>> International Cooperation.--The 
Secretary of Transportation, in consultation with the Secretary of 
State, shall work with the International Civil Aviation Organization and 
the civil aviation authorities of other countries to improve 
international aviation security through screening programs for flight 
instruction candidates.

    (d) <<NOTE: 49 USC 44939 note.>> Effective Date.--The amendment made 
by subsection (a) applies to applications for training received after 
the date of enactment of this Act.

[[Page 115 STAT. 623]]

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

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

``Sec. 46503. Interference with security screening personnel

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

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

SEC. 115. PASSENGER MANIFESTS.

    Section 44909 is amended <<NOTE: 49 USC 44909.>> by adding at the 
end the following:

    ``(c) Flights in Foreign Air Transportation to the United States.--
            ``(1) In general.-- <<NOTE: Deadline.>> 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, 
                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.

[[Page 115 STAT. 624]]

            ``(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. 116. <<NOTE: 49 USC 41309 note.>> AIR TRANSPORTATION ARRANGEMENTS 
            IN CERTAIN STATES.

    (a) In General.--Notwithstanding any provision of section 41309(a) 
of title 49, United States Code, to the contrary, air carriers providing 
air transportation on flights which both originate and terminate at 
points within the same State may file an agreement, request, 
modification, or cancellation of an agreement within the scope of that 
section with the Secretary of Transportation upon a declaration by the 
Governor of the State that such agreement, request, modification, or 
cancellation is necessary to ensure the continuing availability of such 
air transportation within that State.
    (b) Approval of Secretary.--The Secretary may approve any such 
agreement, request, modification, or cancellation and grant an exemption 
under section 41308(c) of title 49, United States Code, to the extent 
necessary to effectuate such agreement, request, modification, or 
cancellation, without regard to the provisions of section 41309(b) or 
(c) of that title.
    (c) Public Interest Requirement.--The Secretary may approve such an 
agreement, request, modification, or cancellation if the Secretary 
determines that--
            (1) the State to which it relates has extraordinary air 
        transportation needs and concerns; and
            (2) approval is in the public interest.

    (d) Termination.--An approval under subsection (b) and an exemption 
under section 41308(c) of title 49, United States Code, granted under 
subsection (b) shall terminate on the earlier of the 2 following dates:
            (1) A date established by the Secretary in the Secretary's 
        discretion.
            (2) October 1, 2002.

    (e) Extension.--Notwithstanding subsection (d), if the Secretary 
determines that it is in the public interest, the Secretary may extend 
the termination date under subsection (d)(2) until a date no later than 
October 1, 2003.
    (f) Reports.--If the Secretary approves any such agreement, request, 
modification, or cancellation under this section and grants an 
exemption, the Secretary shall transmit a report to the Com-
mittee on Commerce, Science, and Transportation of the Senate 
and the Committee on Transportation and Infrastructure of the 
House of Representatives within 6 months describing what actions 
have been taken by the air carriers to which the exemption was 
granted. The Secretary shall also notify those committees if the 
Secretary extends the termination date under subsection (e).

SEC. 117. <<NOTE: 49 USC 44903 note.>> AIRLINE COMPUTER RESERVATION 
            SYSTEMS.

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

[[Page 115 STAT. 625]]

SEC. 118. SECURITY SERVICE FEE.

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

``Sec. 44940. Security service fee <<NOTE: 49 USC 44940 note.>> 

    ``(a) General Authority.--
            ``(1) Passenger fees.--The Under Secretary of Transportation 
        for Security shall impose a uniform fee, on passengers of air 
        carriers and foreign air carriers in air transportation and 
        intrastate air transportation originating at airports in the 
        United States, to pay for the following costs of providing civil 
        aviation security services:
                    ``(A) Salary, benefits, overtime, retirement and 
                other costs of screening personnel, their supervisors 
                and managers, and Federal law enforcement personnel 
                deployed at airport security screening locations under 
                section 44901.
                    ``(B) The costs of training personnel described in 
                subparagraph (A), and the acquisition, operation, and 
                maintenance of equipment used by such personnel.
                    ``(C) The costs of performing background 
                investigations of personnel described in subparagraphs 
                (A), (D), (F), and (G).
                    ``(D) The costs of the Federal air marshals program.
                    ``(E) The costs of performing civil aviation 
                security research and development under this title.
                    ``(F) The costs of Federal Security Managers under 
                section 44903.
                    ``(G) The costs of deploying Federal law enforcement 
                personnel pursuant to section 44903(h).
        The amount of such costs shall be determined by the Under 
        Secretary and shall not be subject to judicial review.
            ``(2) Air carrier fees.--
                    ``(A) Authority.--In addition to the fee imposed 
                pursuant to paragraph (1), and only to the extent that 
                the Under Secretary estimates that such fee will be 
                insufficient to pay for the costs of providing civil 
                aviation security services described in paragraph (1), 
                the Under Secretary may impose a fee on air carriers and 
                foreign air carriers engaged in air transportation and 
                intrastate air transportation to pay for the difference 
                between any such costs and the amount collected from 
                such fee, as estimated by the Under Secretary at the 
                beginning of each fiscal year. The estimates of the 
                Under Secretary under this subparagraph are not subject 
                to judicial review.
                    ``(B) Limitations.--
                          ``(i) Overall limit.--The amounts of fees 
                      collected under this paragraph for each fiscal 
                      year may not exceed, in the aggregate, the amounts 
                      paid in calendar year 2000 by carriers described 
                      in subparagraph (A) for screening passengers and 
                      property, as determined by the Under Secretary.
                          ``(ii) Per-carrier limit.--The amount of fees 
                      collected under this paragraph from an air carrier 
                      described in subparagraph (A) for each of fiscal 
                      years 2002, 2003, and 2004 may not exceed the 
                      amount paid in calendar year 2000 by that carrier 
                      for screening

[[Page 115 STAT. 626]]

                      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. <<NOTE: Federal Register, 
        publication. Deadline.>> --Notwithstanding section 9701 of title 
        31 and the procedural requirements of section 553 of title 5, 
        the Under Secretary shall impose the fee under subsection 
        (a)(1), and may impose a fee under subsection (a)(2), through 
        the publication of notice of such fee in the Federal Register 
        and begin collection of the fee within 60 days of the date of 
        enactment of this Act, or as soon as possible thereafter.
            ``(2) Special rules passenger fees.--A fee imposed under 
        subsection (a)(1) through the procedures under subsection (d) 
        shall apply only to tickets sold after the date on which such 
        fee is imposed. If a fee imposed under subsection (a)(1) through 
        the procedures under subsection (d) on transportation of a 
        passenger of a carrier described in subsection (a)(1) is not 
        collected from the passenger, the amount of the fee shall be 
        paid by the carrier.
            ``(3) Subsequent modification of fee. <<NOTE: Federal 
        Register, publication.>> --After imposing a fee in accordance 
        with paragraph (1), the Under Secretary may modify, from time to 
        time through publication of notice in the Federal Register, the 
        imposition or collection of such fee, or both.
            ``(4) Limitation on collection.--No fee may be collected 
        under this section except to the extent that the expenditure of 
        the fee to pay the costs of activities and services for which 
        the fee is imposed is provided for in advance in an 
        appropriations Act.

    ``(e) Administration of Fees.--
            ``(1) Fees payable to under secretary.--All fees imposed and 
        amounts collected under this section are payable to the Under 
        Secretary.

[[Page 115 STAT. 627]]

            ``(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.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by adding at the end the following:

``44940. Security service fee.''.

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

                ``CHAPTER 483--AVIATION SECURITY FUNDING

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

``Sec. 48301. Aviation security funding

    ``(a) In General.--There are authorized to be appropriated for 
fiscal years 2002, 2003, 2004, and 2005 such sums as may be necessary to 
carry out chapter 449 and related aviation security activities under 
this title. Any amounts appropriated pursuant to

[[Page 115 STAT. 628]]

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

``483. Aviation Security Funding................................48301''.
SEC. 119. INCREASED FUNDING FLEXIBILITY FOR AVIATION SECURITY.

    (a) Limited Use of Airport Improvement Program Funds.--
            (1) Airport development funds.--Section 47102(3) of title 
        49, United States Code, is amended by adding at the end the 
        following:
                    ``(J) in fiscal year 2002, any additional security 
                related activity required by law or by the Secretary 
                after Sep-
                tember 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:

[[Page 115 STAT. 629]]

    ``(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 pro-
viding 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)  <<NOTE: 49 USC 47114 note.>> Apportioned Funds.--For the 
purpose of carrying out section 47114 of title 49, United States Code, 
for fiscal year 2003, the Secretary shall use, in lieu of passenger 
boardings at an airport during the prior calendar year, the greater of--
            (1) the number of passenger boardings at that airport during 
        2000; or
            (2) the number of passenger boardings at that airport 
        during 2001.

    (c) Expedited Processing of Security-Related PFC Requests.--The 
Administrator of the Federal Aviation Administration shall, to the 
extent feasible, expedite the processing and approval of passenger 
facility fee requests under subchapter I of chapter 471 of title 49, 
United States Code, for projects described in section 47192(3)(J) of 
title 49, United States Code.
    (d) Amendment of General Fee Schedule Provision.--Section 
45301(b)(1)(B) of title 49, United States Code, is amended--
            (1) by striking ``directly'' and inserting ``reasonably'';
            (2) by striking ``Administration's costs'' and inserting 
        ``Administration's costs, as determined by the Administrator,''; 
        and
            (3) by adding at the end ``The Determination of such costs 
        by the Administrator is not subject to judicial review.''.

SEC. 120. CHEMICAL AND BIOLOGICAL WEAPON DETECTION.

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

[[Page 115 STAT. 630]]

SEC. 121.  <<NOTE: 49 USC 44903 note.>> AUTHORIZATION OF FUNDS FOR 
                        REIMBURSEMENT OF AIRPORTS FOR SECURITY 
                        MANDATES.

    (a) Airport Security.--There is authorized to be appropriated to the 
Secretary of Transportation for fiscal years 2002 and 2003 a total of 
$1,500,000,000 to reimburse airport operators, on-airport parking lots, 
and vendors of on-airfield direct services to air carriers for direct 
costs incurred by such operators to comply with new, additional, or 
revised security requirements imposed on such operators by the Federal 
Aviation Administration or Transportation Security Administration on or 
after September 11, 2001. Such sums shall remain available until 
expended.
    (b) Documentation of Costs; Audit.--The Secretary may not reimburse 
an airport operator, on-airport parking lot, or vendor of on-airfield 
direct services to air carriers under this section for any cost for 
which the airport operator, on-airport parking lot, or vendor of on-
airfield direct services does not demonstrate to the satisfaction of the 
Secretary, using sworn financial statements or other appropriate data, 
that--
            (1) the cost is eligible for reimbursement under subsection 
        (a); and
            (2) the cost was incurred by the airport operator, on-
        airport parking lot, or vendor of on-airfield direct services to 
        air carriers.

The Inspector General of the Department of Transportation and the 
Comptroller General of the United States may audit such statements and 
may request any other information necessary to conduct such an audit.
    (c) Claim Procedure.-- <<NOTE: Deadline.>> Within 30 days after the 
date of enactment of this Act, the Secretary, after consultation with 
airport operators, on-airport parking lots, and vendors of on-airfield 
direct services to air carriers, shall publish in the Federal Register 
the procedures for filing claims for reimbursement under this section of 
eligible costs incurred by airport operators.

SEC. 122. SENSE OF THE CONGRESS.

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

SEC. 123. AIRPORT IMPROVEMENT PROGRAMS.

    (a) Competition Plan.--Section 47106(f) <<NOTE: 49 USC 47106.>> is 
amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Special rule for fiscal year 2002.--This subsection 
        does not apply to any passenger facility fee approved, or grant

[[Page 115 STAT. 631]]

        made, in fiscal year 2002 if the fee or grant is to be used to 
        improve security at a covered airport.''.

    (b) Conforming Amendment to Airport and Airway Trust Fund.--Section 
9502(d)(1)(A) <<NOTE: 26 USC 9502.>> of the Internal Revenue Code of 
1986 (relating to airport and airway program) is amended by inserting 
``or the Aviation and Transportation Security Act'' after ``21st 
Century''.

SEC. 124. TECHNICAL CORRECTIONS.

    (a) Report Deadline.--Section 106(a) of the Air Transportation 
Safety and System Stabilization Act (Public Law 107-42) <<NOTE: 49 USC 
40101 note.>> is 
amended by striking ``February 1, 2001'' and inserting ``February 
1, 2002''.

    (b) Insurance and Reinsurance of Aircraft.--Section 44306(c) (as 
redesignated by section 201(d) of such Act) <<NOTE: 49 USC 44306.>> is 
amended by inserting ``in the interest of air commerce or national 
security or'' before ``to carry out foreign policy''.

    (c) Federal Credit Instruments.--Section 102(c)(2)(A) of such 
Act <<NOTE: 49 USC 40101 note.>> is amended by striking 
``representatives'' and inserting ``representations''.

    (d) Maximum Amount of Compensation Payable Per Air Carrier.--Section 
103 of such <<NOTE: 49 USC 40101 note.>> Act is amended by adding at the 
end the following:

    ``(d) Compensation for Certain Air Carriers.-- <<NOTE: President.>> 
            ``(1) Set-aside.--The President may set aside a portion of 
        the amount of compensation payable to air carriers under section 
        101(a)(2) to provide compensation to classes of air carriers, 
        such as air tour operators and air ambulances (including 
        hospitals operating air ambulances) for whom the application of 
        a distribution formula containing available seat miles as a 
        factor would inadequately reflect their share of direct and 
        incremental losses. The President shall reduce the 
        $4,500,000,000 specified in subsection (b)(2)(A)(i) by the 
        amount set aside under this subsection.
            ``(2) Distribution of amounts.--The President shall dis-
        tribute the amount set aside under this subsection proportion-
        ally among such air carriers based on an appropriate auditable 
        measure, as determined by the President.''.
SEC. 125. ENCOURAGING AIRLINE EMPLOYEES TO REPORT SUSPICIOUS 
                        ACTIVITIES.

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

``Sec. 44941. Immunity for reporting suspicious activities

    ``(a) In General.--Any air carrier or foreign air carrier or any 
employee of an air carrier or foreign air carrier who makes a voluntary 
disclosure of any suspicious transaction relevant to a possible 
violation of law or regulation, relating to air piracy, a threat to 
aircraft or passenger safety, or terrorism, as defined by section 3077 
of title 18, United States Code, to any employee or agent of the 
Department of Transportation, the Department of Justice, any Federal, 
State, or local law enforcement officer, or any airport or airline 
security officer shall not be civilly liable to any person under any law 
or regulation of the United States, any constitution, law, or regulation 
of any State or political subdivision of any State, for such disclosure.

[[Page 115 STAT. 632]]

    ``(b) Application.--Subsection (a) shall not apply to--
            ``(1) any disclosure made with actual knowledge that the 
        disclosure was false, inaccurate, or misleading; or
            ``(2) any disclosure made with reckless disregard as to the 
        truth or falsity of that disclosure.''.

    (b) Conforming Amendment.--The chapter analysis for such chapter is 
amended by adding at the end the following:

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

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

    (a) National Institute of Justice Study.-- <<NOTE: Deadline.>> The 
National Institute of Justice shall assess the range of less-than-lethal 
weaponry available for use by a flight deck crewmember temporarily to 
incapacitate an individual who presents a clear and present danger to 
the safety of the aircraft, its passengers, or individuals on the ground 
and report its findings and recommendations to the Secretary of 
Transportation within 90 days after the date of enactment of this Act.

    (b) Arming Flight Deck Crew.--Section 44903 of title 49, United 
States Code, is amended by adding at the end the following:
    ``(h) Authority to Arm Flight Deck Crew With Less-Than-Lethal 
Weapons.--
            ``(1) In general.--If the Secretary, after receiving the 
        recommendations of the National Institute of Justice, 
        determines, with the approval of the Attorney General and the 
        Secretary of State, that it is appropriate and necessary and 
        would effectively serve the public interest in avoiding air 
        piracy, the Secretary may authorize members of the flight deck 
        crew on any aircraft providing air transportation or intrastate 
        air transportation to carry a less-than-lethal weapon while the 
        aircraft is engaged in providing such transportation.
            ``(2) Usage.--If the Secretary grants authority under 
        paragraph (1) for flight deck crew members to carry a less-than-
        lethal weapon while engaged in providing air transportation or 
        intrastate air transportation, the Secretary shall--
                    ``(A) <<NOTE: Regulations.>>  prescribe rules 
                requiring that any such crew 
                member be trained in the proper use of the weapon; and
                    ``(B) <<NOTE: Guidelines.>>  prescribe guidelines 
                setting forth the circumstances under which such weapons 
                may be used.''.

SEC. 127. MAIL AND FREIGHT WAIVERS. <<NOTE: 49 USC 40101 note.>> 
            (a) In General.--During a national emergency affecting air 
        transportation or intrastate air transportation, the Secretary 
        of Transportation, after consultation with the Transportation 
        Security Oversight Board, may grant a complete or
        partial waiver of any restrictions on the carriage by aircraft 
        of freight, mail, emergency medical supplies, personnel, or 
        patients on aircraft, imposed by the Department of 
        Transportation (or other Federal agency or department) that 
        would permit such carriage of freight, mail, emergency medical 
        supplies, personnel, or patients on flights, to, from, or within 
        a State if the Secretary determines that--
            (1) extraordinary air transportation needs or concerns 
        exist; and
            (2) the waiver is in the public interest, taking into 
        consideration the isolation of and dependence on air 
        transportation of the State.

[[Page 115 STAT. 633]]

    (b) Limitations.--The Secretary may impose reasonable limitations on 
any such waiver.

SEC. 128. FLIGHT DECK SECURITY. <<NOTE: 49 USC 44903 note.>> 

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

SEC. 129. AMENDMENTS TO AIRMEN REGISTRY AUTHORITY.

    Section 44703(g) of title 49, United States Code, is amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking ``pilots'' and inserting ``airmen''; 
                and
                    (B) by striking the period and inserting ``and 
                related to combating acts of terrorism.''; and
            (2) by adding at the end, the following new paragraphs:

    ``(3) For purposes of this section, the term `acts of terrorism' 
means an activity that involves a violent act or an act dangerous to 
human life that is a violation of the criminal laws of the United States 
or of any State, or that would be a criminal violation if committed 
within the jurisdiction of the United States or of any State, and 
appears to be intended to intimidate or coerce a civilian population to 
influence the policy of a government by intimidation or coercion or to 
affect the conduct of a government by assassination or kidnaping.
    ``(4) The Administrator is authorized and directed to work with 
State and local authorities, and other Federal agencies, to assist in 
the identification of individuals applying for or holding airmen 
certificates.''.

SEC. 130. RESULTS-BASED MANAGEMENT.

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

``Sec. 44942. Performance goals and objectives

    ``(a) Short Term Transition.--
            ``(1) In general.-- <<NOTE: Deadline.>> Within 180 days 
        after the date of enactment of the Aviation and Transportation 
        Security Act, the Under Secretary for Transportation Security 
        may, in consultation with Congress--
                    ``(A) establish acceptable levels of performance for 
                aviation security, including screening operations and 
                access control, and
                    ``(B) provide Congress with an action plan, 
                containing measurable goals and milestones, that 
                outlines how those levels of performance will be 
                achieved.
            ``(2) Basics of action plan.--The action plan shall clarify 
        the responsibilities of the Transportation Security 
        Administration, the Federal Aviation Administration and any 
        other agency or organization that may have a role in ensuring 
        the safety and security of the civil air transportation system.

    ``(b) Long-Term Results-Based Management.--
            ``(1) Performance plan and report.--

[[Page 115 STAT. 634]]

                    ``(A) Performance plan.--
                          ``(i) Each year, consistent with the 
                      requirements of the Government Performance and 
                      Results Act of 1993 (GPRA), the Secretary and the 
                      Under Secretary for Transportation Security shall 
                      agree on a performance plan for the succeeding 5 
                      years that establishes measurable goals and 
                      objectives for aviation security. The plan shall 
                      identify action steps necessary to achieve such 
                      goals.
                          ``(ii) In addition to meeting the requirements 
                      of GPRA, the performance plan should clarify the 
                      responsibilities of the Secretary, the Under 
                      Secretary for Transportation Security and any 
                      other agency or organization that may have a role 
                      in ensuring the safety and security of the civil 
                      air transportation 
                      system.
                    ``(B) Performance report.--Each year, consistent 
                with the requirements of GPRA, the Under Secretary for 
                Transportation Security shall prepare and submit to 
                Congress an annual report including an evaluation of the 
                extent goals and objectives were met. The report shall 
                include the results achieved during the year relative to 
                the goals established in the performance plan.

``Sec. 44943. Performance management system

    ``(a) Establishing a Fair and Equitable System for Meas-
uring Staff Performance.--The Under Secretary for Transpor-
tation Security shall establish a performance management system 
which strengthens the organization's effectiveness by providing for 
the establishment of goals and objectives for managers, employees, 
and organizational performance consistent with the performance 
plan.
    ``(b) Establishing Management Accountability for Meeting Performance 
Goals.--
            ``(1) In general.--Each year, the Secretary and Under 
        Secretary of Transportation for Security shall enter into an 
        annual performance agreement that shall set forth organizational 
        and individual performance goals for the Under Secretary.
            ``(2) Goals.--Each year, the Under Secretary and each senior 
        manager who reports to the Under Secretary shall enter into an 
        annual performance agreement that sets forth organization and 
        individual goals for those managers. All other 
        employees hired under the authority of the Under Secretary 
        shall enter into an annual performance agreement that sets 
        forth organization and individual goals for those employees.

    ``(c) Performance-Based Service Contracting.--To the extent 
contracts, if any, are used to implement the Aviation Security Act, the 
Under Secretary for Transportation Security shall, to the extent 
practical, maximize the use of performance-based service contracts. 
These contracts should be consistent with guidelines published by the 
Office of Federal Procurement Policy.''.

[[Page 115 STAT. 635]]

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

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

``Sec. 44944. Voluntary provision of emergency services

    ``(a) Program for Provision of Voluntary Services.--
            ``(1) Program.--The Under Secretary of Transportation for 
        Transportation Security shall carry out a program to permit 
        qualified law enforcement officers, firefighters, and emergency 
        medical technicians to provide emergency services on commercial 
        air flights during emergencies.
            ``(2) Requirements.--The Under Secretary shall establish 
        such requirements for qualifications of providers of voluntary 
        services under the program under paragraph (1), including 
        training requirements, as the Under Secretary considers 
        appropriate.
            ``(3) Confidentiality of registry.--If as part of the 
        program under paragraph (1) the Under Secretary requires or 
        permits registration of law enforcement officers, firefighters, 
        or emergency medical technicians who are willing to provide 
        emergency services on commercial flights during emergencies, the 
        Under Secretary shall take appropriate actions to ensure that 
        the registry is available only to appropriate airline per-
        sonnel 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.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

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

    (c) <<NOTE: 49 USC 44944 note.>> Construction Regarding Possession 
of Firearms.--Nothing in this section may be construed to require any 
modification of regulations of the Department of Transportation 
governing the possession of firearms while in aircraft or air 
transportation facilities or to authorize the possession of a firearm in 
an aircraft or any such facility not authorized under those regulations.

SEC. 132. GENERAL AVIATION AND AIR CHARTERS.

    (a) <<NOTE: Deadline. 49 USC 44903 note.>> Air Charter Program.--
Within 90 days after the date of enactment of this Act, the Under 
Secretary of Transportation

[[Page 115 STAT. 636]]

for Transportation Security shall implement an aviation security program 
for charter air carriers (as defined in section 40102(a)(13) of title 
49, United States Code) with a maximum certificated takeoff weight of 
12,500 pounds or more.

    (b) General Aviation Program.-- <<NOTE: Deadline. Reports.>> Within 
30 days after the date of enactment of this Act, the Under Secretary of 
Transportation for Transportation Security shall transmit a report on 
airspace and other security measures that can be deployed, as necessary, 
to improve general aviation security to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure. The Under Secretary may 
submit the report in both classified and redacted forms.

SEC. 133. DEFINITIONS. <<NOTE: 49 USC 40102 note.>> 

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

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

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

SEC. 135. SENSE OF THE HOUSE OF REPRESENTATIVES.

    It is the sense of the House of Representatives that--
            (1) the Under Secretary of Transportation for Security 
        should develop security procedures to allow passengers 
        transporting a musical instrument on a flight of an air carrier 
        to transport the instrument in the passenger cabin of the 
        aircraft, notwithstanding any size or other restriction on 
        carry-on baggage but subject to such other reasonable security 
        procedures, terms, and conditions as may be established by the 
        Under Secretary or the air carrier, including imposing 
        additional charges by the air carrier; and
            (2) an air carrier that transports mail under a contract 
        with the United States Postal Service should transport any 
        animal that the Postal Service allows to be shipped through the 
        mail.
SEC. 136. SHORT-TERM ASSESSMENT AND DEPLOYMENT OF 
                        EMERGING SECURITY TECHNOLOGIES AND 
                        PROCEDURES.

    Section 44903 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(i) Short-Term Assessment and Deployment of Emerging Security 
Technologies and Procedures.--
            ``(1) In general.-- <<NOTE: Deadline.>> 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

[[Page 115 STAT. 637]]

        or procedures to prevent access to secure airport areas by 
        unauthorized persons. As part of the 6-month assessment, the 
        Under Secretary for Transportation Security shall--
                    ``(A) review the effectiveness of biometrics systems 
                currently in use at several United States airports, 
                including San Francisco International;
                    ``(B) review the effectiveness of increased 
                surveillance at access points;
                    ``(C) review the effectiveness of card- or keypad-
                based access systems;
                    ``(D) review the effectiveness of airport emergency 
                exit systems and determine whether those that lead to 
                secure areas of the airport should be monitored or how 
                breaches can be swiftly responded to; and
                    ``(E) specifically target the elimination of the 
                ``piggy-backing'' phenomenon, where another person 
                follows an authorized person through the access point.
        The 6-month assessment shall include a 12-month deployment 
        strategy for currently available technology at all category X 
        airports, as defined in the Federal Aviation Administration 
        approved air carrier security programs required under part 108 
        of title 14, Code of Federal <<NOTE: Deadline.>>  Regulations. 
        Not later than 18 months after the date of enactment of this 
        Act, the Secretary of Transportation shall conduct a review of 
        reductions in unauthorized access at these airports.
            ``(2) Computer-assisted passenger prescreening 
        system.--
                    ``(A) In general.--The Secretary of Transportation 
                shall ensure that the Computer-Assisted Passenger 
                Prescreening System, or any successor system--
                          ``(i) is used to evaluate all passengers 
                      before they board an aircraft; and
                          ``(ii) includes procedures to ensure that 
                      individuals selected by the system and their 
                      carry-on and checked baggage are adequately 
                      screened.
                    ``(B) Modifications.--The Secretary of 
                Transportation may modify any requirement under the 
                Computer-Assisted Passenger Prescreening System for 
                flights that originate and terminate within the same 
                State, if the Secretary determines that--
                          ``(i) the State has extraordinary air 
                      transportation needs or concerns due to its 
                      isolation and dependence on air transportation; 
                      and
                          ``(ii) the routine characteristics of 
                      passengers, given the nature of the market, 
                      regularly triggers primary selectee status.''.
SEC. 137.  <<NOTE: 49 USC 44912 note.>> RESEARCH AND DEVELOPMENT 
                        OF AVIATION SECURITY TECHNOLOGY.

    (a) Funding.--To augment the programs authorized in section 
44912(a)(1) of title 49, United States Code, there is authorized to be 
appropriated an additional $50,000,000 for each of fiscal years 2002 
through 2006 and such sums as are necessary for each fiscal year 
thereafter to the Transportation Security Administration, for research, 
development, testing, and evaluation of the following technologies which 
may enhance aviation security in the future. Grants to industry, 
academia, and Government entities to

[[Page 115 STAT. 638]]

carry out the provisions of this section shall be available for fiscal 
years 2002 and 2003 for--
            (1) the acceleration of research, development, testing, and 
        evaluation of explosives detection technology for checked 
        baggage, specifically, technology that is--
                    (A) more cost-effective for deployment for 
                explosives detection in checked baggage at small- to 
                medium-sized airports, and is currently under 
                development as part of the Argus research program at the 
                Transportation Security Administration;
                    (B) faster, to facilitate screening of all checked 
                baggage at larger airports; or
                    (C) more accurate, to reduce the number of false 
                positives requiring additional security measures;
            (2) acceleration of research, development, testing, and 
        evaluation of new screening technology for carry-on items to 
        provide more effective means of detecting and identifying 
        weapons, explosives, and components of weapons of mass 
        destruction, including advanced x-ray technology;
            (3) acceleration of research, development, testing, and 
        evaluation of threat screening technology for other categories 
        of items being loaded onto aircraft, including cargo, catering, 
        and duty-free items;
            (4) acceleration of research, development, testing, and 
        evaluation of threats carried on persons boarding aircraft or 
        entering secure areas, including detection of weapons, 
        explosives, and components of weapons of mass destruction;
            (5) acceleration of research, development, testing and 
        evaluation of integrated systems of airport security 
        enhancement, including quantitative methods of assessing 
        security factors at airports selected for testing such systems;
            (6) expansion of the existing program of research, 
        development, testing, and evaluation of improved methods of 
        education, training, and testing of key airport security 
        personnel; and
            (7) acceleration of research, development, testing, and 
        evaluation of aircraft hardening materials, and techniques to 
        reduce the vulnerability of aircraft to terrorist attack.

    (b) Grants.--Grants awarded under this subtitle shall identify 
potential outcomes of the research, and propose a method for 
quantitatively assessing effective increases in security upon completion 
of the research program. At the conclusion of each grant, the grant 
recipient shall submit a final report to the Transportation Security 
Administration that shall include sufficient information to permit the 
Under Secretary of Transportation for Security to prepare a cost-benefit 
analysis of potential improvements to airport security based upon 
deployment of the proposed technology. <<NOTE: Deadline.>> The Under 
Secretary shall begin awarding grants under this subtitle within 90 days 
of the date of enactment of this Act.

    (c) Budget Submission.--A budget submission and detailed strategy 
for deploying the identified security upgrades recommended upon 
completion of the grants awarded under subsection (b), shall be 
submitted to Congress as part of the Department of Transportation's 
annual budget submission.
    (d) Defense Research.-- <<NOTE: Appropriation 
authorization.>> There is authorized to be appropriated $20,000,000 to 
the Transportation Security Administration to issue research grants in 
conjunction with the Defense Advanced

[[Page 115 STAT. 639]]

Research Projects Agency. Grants may be awarded under this section for--
            (1) research and development of longer-term improvements to 
        airport security, including advanced weapons detection;
            (2) secure networking and sharing of threat information 
        between Federal agencies, law enforcement entities, and other 
        appropriate parties;
            (3) advances in biometrics for identification and threat 
        assessment; or
            (4) other technologies for preventing acts of terrorism in 
        aviation.

SEC. 138. EMPLOYMENT INVESTIGATIONS AND RESTRICTIONS.

    (a) In General.--Section 44936 of title 49, United States Code, is 
amended--
            (1) by inserting ``and a review of available law enforcement 
        data bases and records of other governmental and international 
        agencies to the extent determined practicable by the Under 
        Secretary of Transportation for Transportation Security,'' after 
        ``check'' in subsection (a)(1)(A);
            (2) by striking ``in any case described in subparagraph 
        (C)'' in subsection (a)(1)(B) and inserting ``and a review of 
        available law enforcement data bases and records of other 
        governmental and international agencies to the extent determined 
        practicable by the Under Secretary of Transportation for 
        Transportation Security'';
            (3) by striking ``will be'' in subsection (a)(1)(B)(i) and 
        inserting ``are'';
            (4) by striking ``and'' after the semicolon in clause (ii) 
        of subsection (a)(1)(B);
            (5) by redesignating clause (iii) of subsection (a)(1)(B) as 
        clause (iv);
            (6) by inserting after clause (ii) of subsection (a)(1)(B) 
        the following:
                          ``(iii) individuals who regularly have 
                      escorted access to aircraft of an air carrier or 
                      foreign air carrier or a secured area of an 
                      airport in the United States the Administrator 
                      designates that serves an air carrier or foreign 
                      air carrier; and'';
            (7) by striking subparagraphs (C), (D), and (E) of 
        subsection (a)(1) and redesignating subparagraph (F) as 
        subparagraph (D);
            (8) by inserting after subparagraph (B) of subsection (a)(1) 
        the following:
                    ``(C) Background checks of current employees.--
                          ``(i) A new background check (including a 
                      criminal history record check and a review of 
                      available law enforcement data bases and records 
                      of other governmental and international agencies 
                      to the extent determined practicable by the Under 
                      Secretary of Transportation for Transportation 
                      Security shall be required for any individual who 
                      is employed in a position described in 
                      subparagraphs (A) and (B) on the date of enactment 
                      of the Aviation and Transportation Security Act.
                          ``(ii) The Under Secretary may provide by 
                      order (without regard to the provisions of chapter 
                      5 of title

[[Page 115 STAT. 640]]

                      5, United States Code) for a phased-in 
                      implementation of the requirements of this 
                      subparagraph.'';
            (9) by striking ``107.31(m)'' in subparagraph (D), as 
        redesignated, and inserting ``107.31(m)(1) or (2)'';
            (10) by striking ``the date of enactment of this 
        subparagraph.'' in subparagraph (D), as redesignated, and 
        inserting ``November 22, 2000. The Under Secretary shall work 
        with the International Civil Aviation Organization and with 
        appropriate authorities of foreign countries to ensure that 
        individuals exempted under this subparagraph do not pose a 
        threat to aviation or national security.'';
            (11) by striking ``carrier, or airport operator'' in 
        subsection (a)(2) and inserting ``carrier, airport operator, or 
        government'';
            (12) by striking ``carrier, or airport operator'' in 
        subsection (b)(1) and inserting ``carrier, airport operator, or 
        government'';
            (13) by striking ``carrier, or airport operator'' in 
        subsection (b)(3) and inserting ``carrier, airport operator, or 
        government''; and
            (14) by adding at the end of subsection (c)(1) ``All Federal 
        agencies shall cooperate with the Under Secretary and the Under 
        Secretary's designee in the process of collecting and submitting 
        fingerprints.''.

    (b) Records of Employment of Pilot Applicants.--Part A of subtitle 
VII of title 49, United States Code, is amended--
            (1) by moving subsections (f), (g), and (h) of section 44936 
        from section 44936, inserting them at the end of section 44703, 
        and redesignating them as subsections (h), (i), and (j), 
        respectively; and
            (2) in subsections (i) and (j) of section 44703 (as moved to 
        the end of section 44703 by paragraph (1) of this subsection), 
        by striking ``subsection (f)'' each place it appears and 
        inserting ``subsection (h)''.

SEC. 139. ALCOHOL AND CONTROLLED SUBSTANCE TESTING.

    Chapter 451 of title 49, United States Code, is amended--
            (1) <<NOTE: 49 USC 45102.>> by striking ``contract 
        personnel'' each place it appears and inserting ``personnel'';
            (2) <<NOTE: 49 USC 45103.>> by striking ``contract 
        employee'' each place it appears and inserting ``employee'';
            (3) in section 45106(c) by striking ``contract employees'' 
        and inserting ``employees'';
            (4) by inserting after section 45106 the following:

``Sec. 45107. Transportation Security Administration

    ``(a) Transfer of Functions Relating to Testing Programs With 
Respect to Airport Security Screening Personnel.--The authority of the 
Administrator of the Federal Aviation Administration under this chapter 
with respect to programs relating to testing of airport security 
screening personnel are transferred to the Under Secretary of 
Transportation for Security. Notwith-
standing section 45102(a), the regulations prescribed under section 
45102(a) shall require testing of such personnel by their employers 
instead of by air carriers and foreign air carriers.
    ``(b) Applicability of Chapter With Respect to Employees of 
Administration.--The provisions of this chapter that apply with respect 
to employees of the Federal Aviation Administration whose duties include 
responsibility for safety-sensitive functions

[[Page 115 STAT. 641]]

shall apply with respect to employees of the Transportation Security 
Administration whose duties include responsibility for security-
sensitive functions. The Under Secretary of Transportation for Security, 
the Transportation Security Administration, and employees of the 
Transportation Security Administration whose duties include 
responsibility for security-sensitive functions shall be subject to and 
comply with such provisions in the same manner and to the same extent as 
the Administrator of the Federal Aviation Administration, the Federal 
Aviation Administration, and employees of the Federal Aviation 
Administration whose duties include responsi-
bility for safety-sensitive functions, respectively.''; and
            (5) in the analysis for such chapter by inserting after the 
        item relating to section 45106 the following:

``45107. Transportation Security Administration.''.

SEC. 140. CONFORMING AMENDMENTS TO SUBTITLE VII.

    (a) Records of Employment of Pilot Applicants.--Part A of subtitle 
VII of title 49, United States Code, is amended--
            (1) by moving subsections (f), (g), and (h) of section 44936 
        from section 44936, inserting them at the end of section 44703, 
        and redesignating them as subsections (h), (i), and (j), 
        respectively; and
            (2) in subsections (i) and (j) of section 44703 (as moved to 
        the end of section 44703 by paragraph (1) of this subsection), 
        by striking ``subsection (f)'' each place it appears and 
        inserting ``subsection (h)''.

    (b) Investigations and Procedures.--Chapter 461 of such title is 
amended--
            (1) in each of sections 46101(a)(1), 46102(a), 46103(a), 
        46104(a), 46105(a), 46106, 46107(b), and 46110(a) by inserting 
        after ``(or'' the following: ``the Under Secretary of 
        Transportation for Security with respect to security duties and 
        powers designated to be carried out by the Under Secretary or'';
            (2) <<NOTE: 49 USC 46101-46105, 46107, 46110.>> by striking 
        ``or Administrator'' each place it appears and inserting ``, 
        Under Secretary, or Administrator'';
            (3) in section 46101(a)(2) by striking ``of Transportation 
        or the'' and inserting ``, Under Secretary, or'';
            (4) in section 46102(b) by striking ``and the 
        Administrator'' and inserting ``, the Under Secretary, and the 
        Administrator'';
            (5) in section 46102(c) by striking ``and Administrator'' 
        each place it appears and inserting ``, Under Secretary, and 
        Administrator'';
            (6) in each of sections 46102(d) and 46104(b) by inserting 
        ``the Under Secretary,'' after ``Secretary,'';
            (7) in the heading to section 46106 by striking ``Secretary 
        of Transportation and Administrator of the Federal Aviation 
        Administration'' and inserting ``Department of Transportation''; 
        and
            (8) in the item relating to section 46106 of the analysis 
        for such chapter by striking ``Secretary of Transportation and 
        Administrator of the Federal Aviation Administration'' and 
        inserting ``Department of Transportation''.

    (c) Administrative.--Section 40113 of such title is amended--
            (1) in subsection (a)--
                    (A) by inserting after ``(or'' the following: ``the 
                Under Secretary of Transportation for Security with 
                respect to

[[Page 115 STAT. 642]]

                security duties and powers designated to be carried out 
                by the Under Secretary or''; and
                    (B) by striking ``or Administrator'' and inserting 
                ``, Under Secretary, or Administrator''; and
            (2) in subsection (d)--
                    (A) by inserting after ``The'' the following: 
                ``Under Secretary of Transportation for Security or 
                the'';
                    (B) by striking ``Administration'' the second place 
                it appears and inserting ``Transportation Security 
                Administration or Federal Aviation Administration, as 
                the case may be,''; and
                    (C) by striking ``the Administrator decides'' and 
                inserting ``the Under Secretary or Administrator, as the 

                case may be, decides''.

    (d) Penalties.--Chapter 463 of such title is amended--
            (1) in section 46301(d)(2)--
                    (A) by striking ``, chapter 449 (except sections 
                44902, 44903(d), 44907(a)-(d)(1)(A) and (d)(1)(C)-(f), 
                44908, and 44909),'';
                    (B) by inserting after the first sentence the 
                following: ``The Under Secretary of Transportation for 
                Security may impose a civil penalty for a violation of 
                chapter 449 (except sections 44902, 44903(d), 44907(a)-
                (d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909) or a 
                regulation prescribed or order issued under such chapter 
                449.''; and
                    (C) by inserting ``Under Secretary or'' before 
                ``Administrator shall'';
            (2) in each of paragraphs (3) and (4) of section 46301(d) by 
        striking ``Administrator'' each place it appears and inserting 
        ``Under Secretary or Administrator'';
            (3) in section 46301(d)(8) by striking ``Administrator'' and 
        inserting ``Under Secretary, Administrator,'';
            (4) in section 46301(h)(2) by inserting after ``(or'' the 
        fol-
        lowing: ``the Under Secretary of Transportation for Security 
        with respect to security duties and powers designated to be 
        carried out by the Under Secretary or'';
            (5) in section 46303(c)(2) by inserting ``or the Under 
        Secretary of Transportation for Security'' after ``Federal 
        Aviation Administration'';
            (6) in section 46311--
                    (A) by inserting after ``Transportation,'' the 
                following: ``the Under Secretary of Transportation for 
                Security with respect to security duties and powers 
                designated to be carried out by the Under Secretary,'';
                    (B) by inserting after ``Secretary,'' each place it 
                appears the following: ``Under Secretary,''; and
                    (C) by striking ``or Administrator'' each place it 
                appears and inserting ``, Under Secretary, or 
                Administrator'';
            (7) in each of sections 46313 and 46316 by inserting after 
        ``(or'' the following: ``the Under Secretary of Transportation 
        for Security with respect to security duties and powers 
        designated to be carried out by the Under Secretary or''; and
            (8) in section 46505(d)(2) by inserting ``or the Under 
        Secretary of Transportation for Security'' after ``Federal 
        Aviation Administration''.

[[Page 115 STAT. 643]]

SEC. 141. SAVINGS PROVISION. <<NOTE: 49 USC 44901 note.>> 

    (a) Transfer of Assets and Personnel.--Except as otherwise provided 
in this Act, those personnel, property, and records employed, used, 
held, available, or to be made available in connection with a function 
transferred to the Transportation Security Administration by this Act 
shall be transferred to the Transportation Security Administration for 
use in connection with the functions transferred. Unexpended balances of 
appropriations, allocations, and other funds made available to the 
Federal Aviation Administration to carry out such functions shall also 
be transferred to the Transportation Security Administration for use in 
connection with the functions transferred.
    (b) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, settlements, agreements, 
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the Federal Aviation Administration, any 
        officer or employee thereof, or any other Government official, 
        or by a court of competent jurisdiction, in the performance of 
        any function that is transferred by this Act; and
            (2) that are in effect on the effective date of such 
        transfer (or become effective after such date pursuant to their 
        terms as in effect on such effective date), shall continue in 
        effect according to their terms until modified, terminated, 
        superseded, set aside, or revoked in accordance with law by the 
        Under Secretary of Transportation for Security, any other 
        authorized official, a court of competent jurisdiction, or 
        operation of law.

    (c) Proceedings.--
            (1) In general.--The provisions of this Act shall not affect 
        any proceedings or any application for any license pending 
        before the Federal Aviation Administration at the time this Act 
        takes effect, insofar as those functions are transferred by this 
        Act; but such proceedings and applications, to the extent that 
        they relate to functions so transferred, shall be continued. 
        Orders shall be issued in such proceedings, appeals shall be 
        taken therefrom, and payments shall be made pursuant to such 
        orders, as if this Act had not been enacted; and orders issued 
        in any such proceedings shall continue in effect until modified, 
        terminated, superseded, or revoked by a duly authorized 
        official, by a court of competent jurisdiction, or by operation 
        of law.
            (2) Statutory construction.--Nothing in this subsection 
        shall be deemed to prohibit the discontinuance or modification 
        of any proceeding described in paragraph (1) under the same 
        terms and conditions and to the same extent that such pro-
        ceeding could have been discontinued or modified if this Act 
        had not been enacted.
            (3) Orderly transfer.--The Secretary of Transportation is 
        authorized to provide for the orderly transfer of pending 
        proceedings from the Federal Aviation Administration.

    (d) Suits.--
            (1) In general.--This Act shall not affect suits commenced 
        before the date of the enactment of this Act, except as provided 
        in paragraphs (2) and (3). In all such suits, proceeding shall 
        be had, appeals taken, and judgments rendered in the same manner 
        and with the same effect as if this Act had not been enacted.

[[Page 115 STAT. 644]]

            (2) Suits by or against faa.--Any suit by or against the 
        Federal Aviation Administration begun before the date of the 
        enactment of this Act shall be continued, insofar as it involves 
        a function retained and transferred under this Act, with the 
        Transportation Security Administration (to the extent the suit 
        involves functions transferred to the Transportation Security 
        Administration under this Act) substituted for the Federal 
        Aviation Administration.
            (3) Remanded cases.--If the court in a suit described in 
        paragraph (1) remands a case to the Transportation Security 
        Administration, subsequent proceedings related to such case 
        shall proceed in accordance with applicable law and regulations 
        as in effect at the time of such subsequent proceedings.

    (e) Continuance of Actions Against Officers.--No suit, action, or 
other proceeding commenced by or against any officer in his official 
capacity as an officer of the Federal Aviation Administration shall 
abate by reason of the enactment of this Act. No cause of action by or 
against the Federal Aviation Administration, or by or against any 
officer thereof in his official capacity, shall abate by reason of the 
enactment of this Act.
    (f) Exercise of Authorities.--Except as otherwise provided by law, 
an officer or employee of the Transportation Security Administration 
may, for purposes of performing a function transferred by this Act or 
the amendments made by this Act, exercise all authorities under any 
other provision of law that were available with respect to the 
performance of that function to the official responsible for the 
performance of the function immediately before the effective date of the 
transfer of the function under this Act.
    (g) Act Defined.--In this section, the term ``Act'' includes the 
amendments made by this Act.

SEC. 142. BUDGET SUBMISSIONS. <<NOTE: 31 USC 1105 note.>> 

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

SEC. 143. LAND ACQUISITION COSTS. <<NOTE: 49 USC 47108 note.>> 

    In the case of a grant for land acquisition issued to an airport 
under chapter 471 of title 49, United States Code, prior to January 1, 
1995, the Secretary of Transportation may waive the provisions of 
section 47108 of such title and provide an upward adjustment in the 
maximum obligation of the United States under that chapter to assist the 
airport in funding land acquisition costs (and associated eligible 
costs) that increased as a result of a judicial order.
SEC. 144. LIMITATION ON LIABILITY FOR ACTS TO THWART CRIMINAL 
                        VIOLENCE OR AIRCRAFT PIRACY.

    Section 44903 <<NOTE: 49 USC 44903.>> is amended by adding at the 
end the following:

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

[[Page 115 STAT. 645]]

SEC. 145.  <<NOTE: 49 USC 40101 note.>> AIR CARRIERS REQUIRED TO 
                        HONOR TICKETS FOR SUSPENDED SERVICE.

    (a) In General.--Each air carrier that provides scheduled air 
transportation on a route shall provide, to the extent practicable, air 
transportation to passengers ticketed for air transportation on that 
route by any other air carrier that suspends, interrupts, or 
discontinues air passenger service on the route by reason of insolvency 
or bankruptcy of the other air carrier.
    (b) Passenger Obligation.-- <<NOTE: Deadline.>> An air carrier is 
not required to provide air transportation under subsection (a) to a 
passenger unless that passenger makes alternative arrangements with the 
air carrier for such transportation within 60 days after the date on 
which that passenger's air transportation was suspended, interrupted, or 
discontinued (without regard to the originally scheduled travel date on 
the ticket).

    (c) Sunset.--This section does not apply to air transportation the 
suspension, interruption, or discontinuance of which occurs more than 18 
months after the date of enactment of this Act.

SEC. 146. AIRCRAFT OPERATIONS IN ENHANCED CLASS B 
            AIRSPACE. <<NOTE: Federal Register, publication.>> 

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

SEC. 147. AVIATION WAR RISK INSURANCE.

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

                     TITLE II--LIABILITY LIMITATION

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

    (a) Recovery of Collateral Source Obligations of Terrorists.--
Section 405(c)(3)(B)(i) of the Air Transportation Safety and System 
Stabilization Act (49 U.S.C. 40101 note) is amended by striking 
``obligations.'' and inserting ``obligations, or to a civil action 
against any person who is a knowing participant in any conspiracy to 
hijack any aircraft or commit any terrorist act.''.
    (b) Extension of Liability Relief to Aircraft Manufacturers and 
Others.--Section 408 of that Act <<NOTE: 49 USC 40101 note.>> is 
amended--
            (1) by striking ``air carrier'' in the section heading;
            (2) by striking subsection (a) and inserting the following:

[[Page 115 STAT. 646]]

    ``(a) In General.--
            ``(1) Liability limited to insurance coverage.--
        Notwithstanding any other provision of law, liability for all 
        claims, whether for compensatory or punitive damages or for 
        contribution or indemnity, arising from the terrorist-related 
        aircraft crashes of September 11, 2001, against an air carrier, 
        aircraft manufacturer, airport sponsor, or person with a 
        property interest in the World Trade Center, on September 11, 
        2001, whether fee simple, leasehold or easement, direct or 
        indirect, or their directors, officers, employees, or agents, 
        shall not be in an amount greater than the limits of liability 
        insurance coverage maintained by that air carrier, aircraft 
        manufacturer, airport sponsor, or person.
            ``(2) Willful defaults on rebuilding obligation.--Paragraph 
        (1) does not apply to any such person with a property interest 
        in the World Trade Center if the Attorney General determines, 
        after notice and an opportunity for a hearing on the record, 
        that the person has defaulted willfully on a contractual 
        obligation to rebuild, or assist in the rebuilding of, the World 
        Trade Center.
            ``(3) Limitations on liability for new york city.--
        Liability for all claims, whether for compensatory or punitive 
        damages or for contribution or indemnity arising from the 
        terrorist-related aircraft crashes of September 11, 2001, 
        against the City of New York shall not exceed the greater of the 
        city's insurance coverage or $350,000,000. If a claimant who is 
        eligible to seek compensation under section 405 of this Act, 
        submits a claim under section 405, the claimant waives the right 
        to file a civil action (or to be a party to an action) in any 
        Federal or State court for damages sustained as a result of the 
        terrorist-related aircraft crashes of September 11, 2001, 
        including any such action against the City of New York. The 
        preceding sentence does not apply to a civil action to recover 
        collateral source obligations.''; and
            (3) by adding at the end of subsection (c) the following: 
        ``Subsections (a) and (b) do not apply to civil actions to 
        recover collateral source obligations. Nothing in this section 
        shall in any way limit any liability of any person who is 
        engaged in the business of providing air transportation security 
        and who is not an airline or airport sponsor or director, 
        officer, or employee of an airline or airport sponsor.''.

    (c) Limitation of United States Subrogation Right.--Section 409 of 
that Act <<NOTE: 49 USC 40101 note.>> is amended by striking ``title.'' 
and inserting ``title, subject to the limitations described in section 
408.''.

    (d) Definitions.--Section 402 of that Act <<NOTE: 49 USC 40101 
note.>> is amended--
            (1) by adding at the end of paragraph (1) the following: 
        ``The term `air carrier' does not include a person, other than 
        an air carrier, engaged in the business of providing air 
        transportation security.''.
            (2) by redesignating paragraphs (3) through (8) as 
        paragraphs (5) through (10), respectively; and

[[Page 115 STAT. 647]]

            (3) by inserting after paragraph (2) the following:
            ``(3) Aircraft manufacturer.--The term `aircraft 
        manufacturer' means any entity that manufactured the aircraft or 
        any parts or components of the aircraft involved in the 
        terrorist related aircraft crashes of September 11, 2001, 
        including employees and agents of that entity.
            ``(4) Airport sponsor.--The term `airport sponsor' means the 
        owner or operator of an airport (as defined in section 40102 of 
        title 49, United States Code).''.

    Approved November 19, 2001.

LEGISLATIVE HISTORY--S. 1447 (H.R. 3150):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 107-296 (Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 147 (2001):
            Oct. 10, 11, considered and passed Senate.
            Nov. 6, considered and passed House, amended, in lieu of 
                H.R. 3150.
            Nov. 16, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 37 (2001):
            Nov. 19, Presidential statement.

                                  <all>
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