II

107TH CONGRESS

1ST SESSION S. 1450

To preserve the continued viability of the United States air transportation

system.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 21, 2001

Mr. DASCHLE (for himself and Mr. LOTT) introduced the following bill; which

was read twice, considered, read the third time, and passed

A BILL

To preserve the continued viability of the United States

air transportation system.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Air Transportation

5 Safety and System Stabilization Act’’.

6 TITLE I—AIRLINE

7 STABILIZATION

8 SEC. 101. AVIATION DISASTER RELIEF.

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law, the President shall take the following actions
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1 to compensate air carriers for losses incurred by the air

2 carriers as a result of the terrorist attacks on the United

3 States that occurred on September 11, 2001:

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

5 President deems necessary, issue Federal credit in6 struments to air carriers that do not, in the aggre7 gate, exceed $10,000,000,000 and provide the sub8 sidy amounts necessary for such instruments in ac9 cordance with the provisions of the Federal Credit

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

11 (2) Compensate air carriers in an aggregate

12 amount equal to $5,000,000,000 for—

13 (A) direct losses incurred beginning on

14 September 11, 2001, by air carriers as a result

15 of any Federal ground stop order issued by the

16 Secretary of Transportation or any subsequent

17 order which continues or renews such a stop18 page; and

19 (B) the incremental losses incurred begin20 ning September 11, 2001, and ending Decem21 ber 31, 2001, by air carriers as a direct result

22 of such attacks.

23 (b) EMERGENCY DESIGNATION.—Congress des24 ignates the amount of new budget authority and outlays

25 in all fiscal years resulting from this title as an emergency
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1 requirement pursuant to section 252(e) of the Balanced

2 Budget and Emergency Deficit Control Act of 1985 (2

3 U.S.C. 901(e)). Such amount shall be available only to the

4 extent that a request, that includes designation of such

5 amount as an emergency requirement as defined in such

6 Act, is transmitted by the President to Congress.

7 SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD.

8 (a) DEFINITIONS.—In this section, the following defi9 nitions apply:

10 (1) BOARD.—The term ‘‘Board’’ means the Air

11 Transportation Stabilization Board established

12 under subsection (b).

13 (2) FINANCIAL OBLIGATION.—The term ‘‘finan14 cial obligation’’ means any note, bond, debenture, or

15 other debt obligation issued by an obligor in connec16 tion with financing under this section and section

17 101(a)(1).

18 (3) LENDER.—The term ‘‘lender’’ means any

19 non-Federal qualified institutional buyer (as defined

20 by section 230.144A(a) of title 17, Code of Federal

21 Regulations (or any successor regulation) known as

22 Rule 144A(a) of the Securities and Exchange Com23 mission and issued under the Security Act of 1933,

24 including—
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1 (A) a qualified retirement plan (as defined

2 in section 4974(c) of the Internal Revenue Code

3 of 1986 (26 U.S.C. 4974(c)) that is a qualified

4 institutional buyer; and

5 (B) a governmental plan (as defined in

6 section 414(d) of the Internal Revenue Code of

7 1986 (26 U.S.C. 414(d)) that is a qualified in8 stitutional buyer.

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

10 party primarily liable for payment of the principal of

11 or interest on a Federal credit instrument, which

12 party may be a corporation, partnership, joint ven13 ture, trust, or governmental entity, agency, or in14 strumentality.

15 (b) AIR TRANSPORTATION STABILIZATION BOARD.—

16 (1) ESTABLISHMENT.—There is established a

17 board (to be known as the ‘‘Air Transportation Sta18 bilization Board’’) to review and decide on applica19 tions for Federal credit instruments under section

20 101(a)(1).

21 (2) COMPOSITION.—The Board shall consist

22 of—

23 (A) the Secretary of Transportation or the

24 designee of the Secretary;
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1 (B) the Chairman of the Board of Gov2 ernors of the Federal Reserve System, or the

3 designee of the Chairman, who shall be the

4 Chair of the Board;

5 (C) the Secretary of the Treasury or the

6 designee of the Secretary; and

7 (D) the Comptroller General of the United

8 States, or the designee of the Comptroller Gen9 eral, as a nonvoting member of the Board.

10 (c) FEDERAL CREDIT INSTRUMENTS.—

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

12 agreements with 1 or more obligors to issue Federal

13 credit instruments under section 101(a)(1) if the

14 Board determines, in its discretion, that—

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

16 credit is not reasonably available at the time of

17 the transaction;

18 (B) the intended obligation by the obligor

19 is prudently incurred; and

20 (C) such agreement is a necessary part of

21 maintaining a safe, efficient, and viable com22 mercial aviation system in the United States.

23 (2) TERMS AND LIMITATIONS.—

24 (A) FORMS; TERMS AND CONDITIONS.—A

25 Federal credit instrument shall be issued under
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1 section 101(a)(1) in such form and on such

2 terms and conditions and contain such cov3 enants, representatives, warranties, and require4 ments (including requirements for audits) as

5 the Board determines appropriate.

6 (B) PROCEDURES.—Not later than 14

7 days after the date of enactment of this Act,

8 the Director of the Office of Management and

9 Budget shall issue regulations setting forth pro10 cedures for application and minimum require11 ments, which may be supplemented by the

12 Board in its discretion, for the issuance of Fed13 eral credit instruments under section 101(a)(1).

14 (d) FINANCIAL PROTECTION OF GOVERNMENT.—

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

16 practicable, the Board shall ensure that the Govern17 ment is compensated for the risk assumed in making

18 guarantees under this title.

19 (2) GOVERNMENT PARTICIPATION IN GAINS.—

20 To the extent to which any participating corporation

21 accepts financial assistance, in the form of accepting

22 the proceeds of any loans guaranteed by the Govern23 ment under this title, the Board is authorized to

24 enter into contracts under which the Government,

25 contingent on the financial success of the partici-
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1 pating corporation, would participate in the gains of

2 the participating corporation or its security holders

3 through the use of such instruments as warrants,

4 stock options, common or preferred stock, or other

5 appropriate equity instruments.

6 (3) DEPOSIT IN TREASURY.—All amounts col7 lected by the Secretary of the Treasury under this

8 subsection shall be deposited in the Treasury as mis9 cellaneous receipts.

10 SEC. 103. SPECIAL RULES FOR COMPENSATION.

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

12 amount of compensation payable to an air carrier under

13 section 101(a)(2) may not exceed the amount of losses de14 scribed in section 101(a)(2) that the air carrier dem15 onstrates to the satisfaction of the President, using sworn

16 financial statements or other appropriate data, that the

17 air carrier incurred. The Secretary of Transportation and

18 the Comptroller General of the United States may audit

19 such statements and may request any information that the

20 Secretary and the Comptroller General deems necessary

21 to conduct such audit.

22 (b) MAXIMUM AMOUNT OF COMPENSATION PAYABLE

23 PER AIR CARRIER.—The maximum total amount of com24 pensation payable to an air carrier under section

25 101(a)(2) may not exceed the lesser of—
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1 (1) the amount of such air carrier’s direct and

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

3 (2) in the case of—

4 (A) flights involving passenger-only or

5 combined passenger and cargo transportation,

6 the product of—

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

8 (ii) the ratio of—

9 (I) the available seat miles of the

10 air carrier for the month of August

11 2001 as reported to the Secretary; to

12 (II) the total available seat miles

13 of all such air carriers for such month

14 as reported to the Secretary; and

15 (B) flights involving cargo-only transpor16 tation, the product of—

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

18 (ii) the ratio of—

19 (I) the revenue ton miles or other

20 auditable measure of the air carrier

21 for cargo for the latest quarter for

22 which data is available as reported to

23 the Secretary; to

24 (II) the total revenue ton miles

25 or other auditable measure of all such
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1 air carriers for cargo for such quarter

2 as reported to the Secretary.

3 (c) PAYMENTS.—The President may provide com4 pensation to air carriers under section 101(a)(2) in 1 or

5 more payments up to the amount authorized by this title.

6 SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSA7 TION.

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

9 Federal credit instrument under section 101(a)(1) to an

10 air carrier after the air carrier enters into a legally binding

11 agreement with the President that, during the 2-year pe12 riod beginning September 11, 2001, and ending Sep13 tember 11, 2003, no officer or employee of the air carrier

14 whose total compensation exceeded $300,000 in calendar

15 year 2000 (other than an employee whose compensation

16 is determined through an existing collective bargaining

17 agreement entered into prior to September 11, 2001)—

18 (1) will receive from the air carrier total com19 pensation which exceeds, during any 12 consecutive

20 months of such 2-year period, the total compensa21 tion received by the officer or employee from the air

22 carrier in calendar year 2000; and

23 (2) will receive from the air carrier severance

24 pay or other benefits upon termination of employ25 ment with the air carrier which exceeds twice the
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1 maximum total compensation received by the officer

2 or employee from the air carrier in calendar year

3 2000.

4 (b) TOTAL COMPENSATION DEFINED.—In this sec5 tion, the term ‘‘total compensation’’ includes salary, bo6 nuses, awards of stock, and other financial benefits pro7 vided by an air carrier to an officer or employee of the

8 air carrier.

9 SEC. 105. CONTINUATION OF CERTAIN AIR SERVICE.

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

11 Transportation should take appropriate action to ensure

12 that all communities that had scheduled air service before

13 September 11, 2001, continue to receive adequate air

14 transportation service and that essential air service to

15 small communities continues without interruption.

16 (b) ESSENTIAL AIR SERVICE.—There is authorized

17 to be appropriated to the Secretary to carry out the essen18 tial air service program under subchapter II of chapter

19 417 of title 49, United States Code, $120,000,000 for fis20 cal year 2002.

21 (c) SECRETARIAL OVERSIGHT.—

22 (1) IN GENERAL.—Notwithstanding any other

23 provision of law, the Secretary is authorized to re24 quire an air carrier receiving direct financial assist25 ance under this Act to maintain scheduled air serv-
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1 ice to any point served by that carrier before Sep2 tember 11, 2001.

3 (2) AGREEMENTS.—In applying paragraph (1),

4 the Secretary may require air carriers receiving di5 rect financial assistance under this Act to enter into

6 agreements which will ensure, to the maximum ex7 tent practicable, that all communities that had

8 scheduled air service before September 11, 2001,

9 continue to receive adequate air transportation serv10 ice.

11 SEC. 106. REPORTS.

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

13 President shall transmit to the Committee on Transpor14 tation and Infrastructure, the Committee on Appropria15 tions, and the Committee on the Budget of the House of

16 Representatives and the Committee on Commerce,

17 Science, and Transportation, the Committee on Appro18 priations, and the Committee on the Budget of the Senate

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

20 and the amounts of assistance provided under this title

21 to each air carrier.

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

23 month period following the date of enactment of this Act,

24 the President shall update and transmit the report to the

25 Committees.
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1 SEC. 107. DEFINITIONS.

2 In this title, the following definitions apply:

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

4 the meaning such term has under section 40102 of

5 title 49, United States Code.

6 (2) FEDERAL CREDIT INSTRUMENT.—The term

7 ‘‘Federal credit instrument’’ means any guarantee or

8 other pledge by the Board issued under section

9 101(a)(1) to pledge the full faith and credit of the

10 United States to pay all or part of any of the prin11 cipal of and interest on a loan or other debt obliga12 tion issued by an obligor and funded by a lender.

13 (3) INCREMENTAL LOSS.—The term ‘‘incre14 mental loss’’ does not include any loss that the

15 President determines would have been incurred if

16 the terrorist attacks on the United States that oc17 curred on September 11, 2001, had not occurred.

18 TITLE II—AVIATION INSURANCE

19 SEC. 201. DOMESTIC INSURANCE AND REIMBURSEMENT OF

20 INSURANCE COSTS.

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

22 States Code, is amended—

23 (1) in subsection (a)(1)—

24 (A) by striking ‘‘subsection (b)’’ and in25 serting ‘‘subsection (c)’’; and
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1 (B) by striking ‘‘foreign-flag aircraft—’’

2 and all that follows through the period at the

3 end of subparagraph (B) and inserting ‘‘for4 eign-flag aircraft.’’;

5 (2) by redesignating subsections (b), (c), and

6 (d) as subsections (c), (d), and (e), respectively;

7 (3) by inserting after subsection (a) the fol8 lowing:

9 ‘‘(b) REIMBURSEMENT OF INSURANCE COST IN10 CREASES.—

11 ‘‘(1) IN GENERAL.—The Secretary may reim12 burse an air carrier for the increase in the cost of

13 insurance, with respect to a premium for coverage

14 ending before October 1, 2002, against loss or dam15 age arising out of any risk from the operation of an

16 American aircraft over the insurance premium that

17 was in effect for a comparable operation during the

18 period beginning September 4, 2001, and ending

19 September 10, 2001, as the Secretary may deter20 mine. Such reimbursement is subject to subsections

21 (a)(2), (c), and (d) of this section and to section

22 44303.

23 ‘‘(2) PAYMENT FROM REVOLVING FUND.—A re24 imbursement under this subsection shall be paid
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1 from the revolving fund established by section

2 44307.

3 ‘‘(3) FURTHER CONDITIONS.—The Secretary

4 may impose such further conditions on insurance for

5 which the increase in premium is subject to reim6 bursement under this subsection as the Secretary

7 may deem appropriate in the interest of air com8 merce.

9 ‘‘(4) TERMINATION OF AUTHORITY.—The au10 thority to reimburse air carriers under this sub11 section shall expire 180 days after the date of enact12 ment of this paragraph.’’;

13 (4) in subsection (c) (as so redesignated)—

14 (A) in the first sentence by inserting ‘‘, or

15 reimburse an air carrier under subsection (b) of

16 this section,’’ before ‘‘only with the approval’’;

17 and

18 (B) in the second sentence—

19 (i) by inserting ‘‘or the reimburse20 ment’’ before ‘‘only after deciding’’; and

21 (ii) by inserting ‘‘in the interest of air

22 commerce or national security or’’ before

23 ‘‘to carry out the foreign policy’’; and
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1 (5) in subsection (d) (as so redesignated) by in2 serting ‘‘or reimbursing an air carrier’’ before

3 ‘‘under this chapter’’.

4 (b) COVERAGE.—

5 (1) IN GENERAL.—Section 44303 of such title

6 is amended—

7 (A) in the matter preceding paragraph (1)

8 by inserting ‘‘, or reimburse insurance costs,

9 as’’ after ‘‘insurance and reinsurance’’; and

10 (B) in paragraph (1) by inserting ‘‘in the

11 interest of air commerce or national security

12 or’’ before ‘‘to carry out the foreign policy’’.

13 (2) DISCRETION OF THE SECRETARY.—For

14 acts of terrorism committed on or to an air carrier

15 during the 180-day period following the date of en16 actment of this Act, the Secretary of Transportation

17 may certify that the air carrier was a victim of an

18 act of terrorism and in the Secretary’s judgment,

19 based on the Secretary’s analysis and conclusions re20 garding the facts and circumstances of each case,

21 shall not be responsible for losses suffered by third

22 parties (as referred to in section 205.5(b)(1) of title

23 14, Code of Federal Regulations) that exceed

24 $100,000,000, in the aggregate, for all claims by

25 such parties arising out of such act. If the Secretary
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1 so certifies, the air carrier shall not be liable for an

2 amount that exceeds $100,000,000, in the aggre3 gate, for all claims by such parties arising out of

4 such act, and the Government shall be responsible

5 for any liability above such amount. No punitive

6 damages may be awarded against an air carrier (or

7 the Government taking responsibility for an air car8 rier under this paragraph) under a cause of action

9 arising out of such act.

10 (c) REINSURANCE.—Section 44304 of such title is

11 amended—

12 (1) by striking ‘‘(a) GENERAL AUTHORITY.—’’;

13 and

14 (2) by striking subsection (b).

15 (d) PREMIUMS.—Section 44306 of such title is

16 amended—

17 (1) by redesignating subsections (b) and (c) as

18 subsections (c) and (d), respectively; and

19 (2) by inserting after subsection (a) the fol20 lowing:

21 ‘‘(b) ALLOWANCES IN SETTING PREMIUM RATES FOR

22 REINSURANCE.—In setting premium rates for reinsur23 ance, the Secretary may make allowances to the insurance

24 carrier for expenses incurred in providing services and fa25 cilities that the Secretary considers good business prac-
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1 tices, except for payments by the air carrier for the stimu2 lation or solicitation of insurance business.’’.

3 (e) CONFORMING AMENDMENT.—Section 44305(b)

4 of such title is amended by striking ‘‘44302(b)’’ and in5 serting ‘‘44302(c)’’.

6 SEC. 202. EXTENSION OF PROVISIONS TO VENDORS,

7 AGENTS, AND SUBCONTRACTORS OF AIR

8 CARRIERS.

9 Notwithstanding any other provision of this title, the

10 Secretary may extend any provision of chapter 443 of title

11 49, United States Code, as amended by this title, and the

12 provisions of this title, to vendors, agents, and subcontrac13 tors of air carriers. For the 180-day period beginning on

14 the date of enactment of this Act, the Secretary may ex15 tend or amend any such provisions so as to ensure that

16 the entities referred to in the preceding sentence are not

17 responsible in cases of acts of terrorism for losses suffered

18 by third parties that exceed the amount of such entities’

19 liability coverage, as determined by the Secretary.

20 TITLE III—TAX PROVISIONS

21 SEC. 301. EXTENSION OF DUE DATE FOR EXCISE TAX DE22 POSITS; TREATMENT OF LOSS COMPENSA23 TION.

24 (a) EXTENSION OF DUE DATE FOR EXCISE TAX DE25 POSITS.—
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1 (1) IN GENERAL.—In the case of an eligible air

2 carrier, any airline-related deposit required under

3 section 6302 of the Internal Revenue Code of 1986

4 to be made after September 10, 2001, and before

5 November 15, 2001, shall be treated for purposes of

6 such Code as timely made if such deposit is made

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

8 the Treasury so prescribes, the preceding sentence

9 shall be applied by substituting for ‘‘November 15,

10 2001’’ each place it appears—

11 (A) ‘‘January 15, 2002’’, or

12 (B) such earlier date after November 15,

13 2001, as such Secretary may prescribe.

14 (2) ELIGIBLE AIR CARRIER.—For purposes of

15 this subsection, the term ‘‘eligible air carrier’’ means

16 any domestic corporation engaged in the trade or

17 business of transporting (for hire) persons by air if

18 such transportation is available to the general pub19 lic.

20 (3) AIRLINE-RELATED DEPOSIT.—For purposes

21 of this subsection, the term ‘‘airline-related deposit’’

22 means any deposit of—

23 (A) taxes imposed by subchapter C of

24 chapter 33 of such Code (relating to transpor25 tation by air), and
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1 (B) taxes imposed by chapters 21, 22, and

2 24 with respect to employees engaged in a trade

3 or business referred to in paragraph (2).

4 (b) TREATMENT OF LOSS COMPENSATION.—Nothing

5 in any provision of law shall be construed to exclude from

6 gross income under the Internal Revenue Code of 1986

7 any compensation received under section 101(a)(2) of this

8 Act.

9 TITLE IV—VICTIM

10 COMPENSATION

11 SEC. 401. SHORT TITLE.

12 This title may be cited as the ‘‘September 11th Vic13 tim Compensation Fund of 2001’’.

14 SEC. 402. DEFINITIONS.

15 In this title, the following definitions apply:

16 (1) AIR CARRIER.—The term ‘‘air carrier’’

17 means a citizen of the United States undertaking by

18 any means, directly or indirectly, to provide air

19 transportation and includes employees and agents of

20 such citizen.

21 (2) AIR TRANSPORTATION.—The term ‘‘air

22 transportation’’ means foreign air transportation,

23 interstate air transportation, or the transportation

24 of mail by aircraft.
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1 (3) CLAIMANT.—The term ‘‘claimant’’ means

2 an individual filing a claim for compensation under

3 section 405(a)(1).

4 (4) COLLATERAL SOURCE.—The term ‘‘collat5 eral source’’ means all collateral sources, including

6 life insurance, pension funds, death benefit pro7 grams, and payments by Federal, State, or local

8 governments related to the terrorist-related aircraft

9 crashes of September 11, 2001.

10 (5) ECONOMIC LOSS.—The term ‘‘economic

11 loss’’ means any pecuniary loss resulting from harm

12 (including the loss of earnings or other benefits re13 lated to employment, medical expense loss, replace14 ment services loss, loss due to death, burial costs,

15 and loss of business or employment opportunities) to

16 the extent recovery for such loss is allowed under ap17 plicable State law.

18 (6) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible

19 individual’’ means an individual determined to be eli20 gible for compensation under section 405(c).

21 (7) NONECONOMIC LOSSES.—The term ‘‘non22 economic losses’’ means losses for physical and emo23 tional pain, suffering, inconvenience, physical im24 pairment, mental anguish, disfigurement, loss of en25 joyment of life, loss of society and companionship,
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1 loss of consortium (other than loss of domestic serv2 ice), hedonic damages, injury to reputation, and all

3 other nonpecuniary losses of any kind or nature.

4 (8) SPECIAL MASTER.—The term ‘‘Special Mas5 ter’’ means the Special Master appointed under sec6 tion 404(a).

7 SEC. 403. PURPOSE.

8 It is the purpose of this title to provide compensation

9 to any individual (or relatives of a deceased individual)

10 who was physically injured or killed as a result of the ter11 rorist-related aircraft crashes of September 11, 2001.

12 SEC. 404. ADMINISTRATION.

13 (a) IN GENERAL.—The Attorney General, acting

14 through a Special Master appointed by the Attorney Gen15 eral, shall—

16 (1) administer the compensation program es17 tablished under this title;

18 (2) promulgate all procedural and substantive

19 rules for the administration of this title; and

20 (3) employ and supervise hearing officers and

21 other administrative personnel to perform the duties

22 of the Special Master under this title.

23 (b) AUTHORIZATION OF APPROPRIATIONS.—There

24 are authorized to be appropriated such sums as may be
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1 necessary to pay the administrative and support costs for

2 the Special Master in carrying out this title.

3 SEC. 405. DETERMINATION OF ELIGIBILITY FOR COM4 PENSATION.

5 (a) FILING OF CLAIM.—

6 (1) IN GENERAL.—A claimant may file a claim

7 for compensation under this title with the Special

8 Master. The claim shall be on the form developed

9 under paragraph (2) and shall state the factual basis

10 for eligibility for compensation and the amount of

11 compensation sought.

12 (2) CLAIM FORM.—

13 (A) IN GENERAL.—The Special Master

14 shall develop a claim form that claimants shall

15 use when submitting claims under paragraph

16 (1). The Special Master shall ensure that such

17 form can be filed electronically, if determined to

18 be practicable.

19 (B) CONTENTS.—The form developed

20 under subparagraph (A) shall request—

21 (i) information from the claimant con22 cerning the physical harm that the claim23 ant suffered, or in the case of a claim filed

24 on behalf of a decedent information con25 firming the decedent’s death, as a result of
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1 the terrorist-related aircraft crashes of

2 September 11, 2001;

3 (ii) information from the claimant

4 concerning any possible economic and non5 economic losses that the claimant suffered

6 as a result of such crashes; and

7 (iii) information regarding collateral

8 sources of compensation the claimant has

9 received or is entitled to receive as a result

10 of such crashes.

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

12 paragraph (1) after the date that is 2 years after

13 the date on which regulations are promulgated

14 under section 407.

15 (b) REVIEW AND DETERMINATION.—

16 (1) REVIEW.—The Special Master shall review

17 a claim submitted under subsection (a) and

18 determine—

19 (A) whether the claimant is an eligible in20 dividual under subsection (c);

21 (B) with respect to a claimant determined

22 to be an eligible individual—

23 (i) the extent of the harm to the

24 claimant, including any economic and non25 economic losses; and
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1 (ii) the amount of compensation to

2 which the claimant is entitled based on the

3 harm to the claimant, the facts of the

4 claim, and the individual circumstances of

5 the claimant.

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

7 the Special Master shall not consider negligence or

8 any other theory of liability.

9 (3) DETERMINATION.—Not later than 120 days

10 after that date on which a claim is filed under sub11 section (a), the Special Master shall complete a re12 view, make a determination, and provide written no13 tice to the claimant, with respect to the matters that

14 were the subject of the claim under review. Such a

15 determination shall be final and not subject to judi16 cial review.

17 (4) RIGHTS OF CLAIMANT.—A claimant in a re18 view under paragraph (1) shall have—

19 (A) the right to be represented by an at20 torney;

21 (B) the right to present evidence, including

22 the presentation of witnesses and documents;

23 and

24 (C) any other due process rights deter25 mined appropriate by the Special Master.
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1 (5) NO PUNITIVE DAMAGES.—The Special Mas2 ter may not include amounts for punitive damages

3 in any compensation paid under a claim under this

4 title.

5 (6) COLLATERAL COMPENSATION.—The Special

6 Master shall reduce the amount of compensation de7 termined under paragraph (1)(B)(ii) by the amount

8 of the collateral source compensation the claimant

9 has received or is entitled to receive as a result of

10 the terrorist-related aircraft crashes of September

11 11, 2001.

12 (c) ELIGIBILITY.—

13 (1) IN GENERAL.—A claimant shall be deter14 mined to be an eligible individual for purposes of

15 this subsection if the Special Master determines that

16 such claimant—

17 (A) is an individual described in paragraph

18 (2); and

19 (B) meets the requirements of paragraph

20 (3).

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

22 described in this paragraph if the claimant is—

23 (A) an individual who—

24 (i) was present at the World Trade

25 Center, (New York, New York), the Pen-
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1 tagon (Arlington, Virginia), or the site of

2 the aircraft crash at Shanksville, Pennsyl3 vania at the time, or in the immediate

4 aftermath, of the terrorist-related aircraft

5 crashes of September 11, 2001; and

6 (ii) suffered physical harm or death as

7 a result of such an air crash;

8 (B) an individual who was a member of

9 the flight crew or a passenger on American Air10 lines flight 11 or 77 or United Airlines flight 93

11 or 175, except that an individual identified by

12 the Attorney General to have been a participant

13 or conspirator in the terrorist-related aircraft

14 crashes of September 11, 2001, or a represent15 ative of such individual shall not be eligible to

16 receive compensation under this title; or

17 (C) in the case of a decedent who is an in18 dividual described in subparagraph (A) or (B),

19 the personal representative of the decedent who

20 files a claim on behalf of the decedent.

21 (3) REQUIREMENTS.—

22 (A) SINGLE CLAIM.—Not more than one

23 claim may be submitted under this title by an

24 individual or on behalf of a deceased individual.

25 (B) LIMITATION ON CIVIL ACTION.—
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1 (i) IN GENERAL.—Upon the submis2 sion of a claim under this title, the claim3 ant waives the right to file a civil action

4 (or to be a party to an action) in any Fed5 eral or State court for damages sustained

6 as a result of the terrorist-related aircraft

7 crashes of September 11, 2001. The pre8 ceding sentence does not apply to a civil

9 action to recover collateral source obliga10 tions.

11 (ii) PENDING ACTIONS.—In the case

12 of an individual who is a party to a civil

13 action described in clause (i), such indi14 vidual may not submit a claim under this

15 title unless such individual withdraws from

16 such action by the date that is 90 days

17 after the date on which regulations are

18 promulgated under section 407.

19 SEC. 406. PAYMENTS TO ELIGIBLE INDIVIDUALS.

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

21 date on which a determination is made by the Special Mas22 ter regarding the amount of compensation due a claimant

23 under this title, the Special Master shall authorize pay24 ment to such claimant of the amount determined with re25 spect to the claimant.
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1 (b) PAYMENT AUTHORITY.—This title constitutes

2 budget authority in advance of appropriations Acts and

3 represents the obligation of the Federal Government to

4 provide for the payment of amounts for compensation

5 under this title.

6 (c) ADDITIONAL FUNDING.—

7 (1) IN GENERAL.—The Attorney General is au8 thorized to accept such amounts as may be contrib9 uted by individuals, business concerns, or other enti10 ties to carry out this title, under such terms and

11 conditions as the Attorney General may impose.

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

13 payments under this section, amounts contained in

14 any account containing funds provided under para15 graph (1) shall be used prior to using appropriated

16 amounts.

17 SEC. 407. REGULATIONS.

18 Not later than 90 days after the date of enactment

19 of this Act, the Attorney General, in consultation with the

20 Special Master, shall promulgate regulations to carry out

21 this title, including regulations with respect to—

22 (1) forms to be used in submitting claims under

23 this title;

24 (2) the information to be included in such

25 forms;
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1 (3) procedures for hearing and the presentation

2 of evidence;

3 (4) procedures to assist an individual in filing

4 and pursuing claims under this title; and

5 (5) other matters determined appropriate by

6 the Attorney General.

7 SEC. 408. LIMITATION ON AIR CARRIER LIABILITY.

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of law, liability for all claims, whether for compen10 satory or punitive damages, arising from the terrorist-re11 lated aircraft crashes of September 11, 2001, against any

12 air carrier shall not be in an amount greater than the lim13 its of the liability coverage maintained by the air carrier.

14 (b) FEDERAL CAUSE OF ACTION.—

15 (1) AVAILABILITY OF ACTION.—There shall

16 exist a Federal cause of action for damages arising

17 out of the hijacking and subsequent crashes of

18 American Airlines flights 11 and 77, and United

19 Airlines flights 93 and 175, on September 11, 2001.

20 Notwithstanding section 40120(c) of title 49, United

21 States Code, this cause of action shall be the exclu22 sive remedy for damages arising out of the hijacking

23 and subsequent crashes of such flights.

24 (2) SUBSTANTIVE LAW.—The substantive law

25 for decision in any such suit shall be derived from
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1 the law, including choice of law principles, of the

2 State in which the crash occurred unless such law is

3 inconsistent with or preempted by Federal law.

4 (3) JURISDICTION.—The United States District

5 Court for the Southern District of New York shall

6 have original and exclusive jurisdiction over all ac7 tions brought for any claim (including any claim for

8 loss of property, personal injury, or death) resulting

9 from or relating to the terrorist-related aircraft

10 crashes of September 11, 2001.

11 (c) EXCLUSION.—Nothing in this section shall in any

12 way limit any liability of any person who is a knowing

13 participant in any conspiracy to hijack any aircraft or

14 commit any terrorist act.

15 SEC. 409. RIGHT OF SUBROGATION.

16 The United States shall have the right of subrogation

17 with respect to any claim paid by the United States under

18 this title.

19 TITLE V—AIR TRANSPORTATION

20 SAFETY

21 SEC. 501. INCREASED AIR TRANSPORTATION SAFETY.

22 Congress affirms the President’s decision to spend

23 $3,000,000,000 on airline safety and security in conjunc24 tion with this Act in order to restore public confidence

25 in the airline industry.
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1 SEC. 502. CONGRESSIONAL COMMITMENT.

2 Congress is committed to act expeditiously, in con3 sultation with the Secretary of Transportation, to

4 strengthen airport security and take further measures to

5 enhance the security of air travel.

6 TITLE VI—SEPARABILITY

7 SEC. 601. SEPARABILITY.

8 If any provision of this Act (including any amend9 ment made by this Act) or the application thereof to any

10 person or circumstance is held invalid, the remainder of

11 this Act (including any amendment made by this Act) and

12 the application thereof to other persons or circumstances

13 shall not be affected thereby.

Æ