IB
Union Calendar No. 241
107TH CONGRESS
2D SESSION
H. R. 3347
[Report No. 107–406, Part I]
To provide economic relief to general aviation entities that have suffered
substantial economic injury as a result of the terrorist attacks per-
petrated against the United States on September 11, 2001.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 27, 2001
Mr. MICA (for himself, Mr. YOUNG of Alaska, and Mr. SHUSTER) introduced
the following bill; which was referred to the Committee on Transportation
and Infrastructure, and in addition to the Committees on Financial Serv-
ices and the Budget, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
APRIL 15, 2002
Reported from the Committee on Transportation and Infrastructure with an
amendment
[Strike out all after the enacting clause and insert the part printed in italic]
APRIL 15, 2002
Referral to the Committees on Financial Services and the Budget extended
for a period ending not later than April 15, 2002
APRIL 15, 2002
Additional sponsors: Mr. TIAHRT, Mr. EHLERS, Mr. DUNCAN, Mr. MCHUGH,
Mr. GRAVES, Mr. MCGOVERN, Mr. WYNN, Mr. GILCHREST, Mr.
REHBERG, Mr. PETRI, Mr. PETERSON of Minnesota, Ms. HART, Mr.
JONES of North Carolina, Mr. LOBIONDO, Mrs. CHRISTENSEN, Mr.
PLATTS, Mr. JOHNSON of Illinois, Mr. GREENWOOD, Mr. SIMMONS, Mr.
PORTMAN, Mr. MORAN of Kansas, Mr. BERRY, Mr. BURTON of Indiana,
Mr. ABERCROMBIE, Mr. LARSEN of Washington, Mr. UPTON, Mr. BOS-
WELL, Mr. GILMAN, Mr. BARR of Georgia, and Mrs. MINK of Hawaii
APRIL 15, 2002
Committees on Financial Services and the Budget discharged; committed to
the Committee of the Whole House on the State of the Union and or-
dered to be printed
[For text of introduced bill, see copy of bill as introduced on November 27, 2001]
A BILL
To provide economic relief to general aviation entities that
have suffered substantial economic injury as a result
of the terrorist attacks perpetrated against the United
States on September 11, 2001.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘General Aviation Indus-
try Reparations Act of 2002’’.
SEC. 2. GENERAL AVIATION INDUSTRY REPARATIONS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the President shall take the following actions
to compensate general aviation entities and their employees
for economic injuries incurred by such entities and employ-
ees as a result of the terrorist attacks on the United States
that occurred on September 11, 2001:
(1) Subject to such terms and conditions as the
President deems necessary and subject to subsection
(b), issue Federal credit instruments to such entities
that do not, in the aggregate, exceed $3,000,000,000
and provide the subsidy amounts necessary for such
instruments in accordance with the provisions of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et
seq.).
(2) Compensate such entities and employees in
an aggregate amount equal to $2,500,000,000 for—
(A) direct losses incurred beginning on Sep-
tember 11, 2001, by such entities as a result of
any Federal ground stop order issued by the Sec-
retary of Transportation or any subsequent order
which continues or renews such a stoppage;
(B) the incremental losses incurred begin-
ning September 11, 2001, and ending December
31, 2001, by such entities as a direct result of
such attacks;
(C) the incremental losses incurred by em-
ployees of an entity receiving assistance under
this Act who lost their jobs (other than for cause)
at any time during the period between Sep-
tember 11 and December 31, 2001, as a result of
the such attacks; except that incremental losses
under this subparagraph shall be limited to—
(i) losses incurred, during a period of
90 days beginning on the date of the job
loss, as lost compensation offset by com-
pensation paid by any other entity; and
(ii) the added costs to such employees,
for themselves and their dependents, of
health insurance premiums and medical ex-
penses incurred, during such 90-day period,
that—
(I) would have been paid by
health insurance coverage that was lost
as a result of the job loss or as a result
of other action to reduce expenses taken
by the entity receiving assistance under
this Act; and
(II) were not paid by other insur-
ance coverage, a government agency, or
charitable gift; and
(D) direct losses incurred by such entities as
a direct result of flight restrictions for a period
of one week or more imposed by the Secretary of
Transportation before the date of enactment of
this Act in response to the increased security re-
quired by such attacks.
(b) LIMITATION ON AGGREGATE AMOUNT OF CREDIT
INSTRUMENTS.—The aggregate amount of Federal credit
instruments that may be issued under section 101(a)(1) of
the Air Transportation Safety and System Stabilization
Act (49 U.S.C. 40101 note; 115 Stat. 230) shall be reduced
by the aggregate amount of Federal credit instruments
issued under subsection (a)(1) of this section.
(c) EMERGENCY DESIGNATION.—Congress designates
the amount of new budget authority and outlays in all fis-
cal years resulting from this Act as an emergency require-
ment pursuant to section 252(e) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 901(e)).
Such amount shall be available only to the extent that a
request, that includes designation of such amount as an
emergency requirement as defined in such Act, is trans-
mitted by the President to Congress.
(d) DEADLINE FOR APPLICATIONS.—Not later than 14
days after the date of enactment of this Act, the President
shall establish and publish in the Federal Register a dead-
line for the issuance of Federal credit instruments under
this section and a deadline for the submission of applica-
tions for payments of compensation under this section.
SEC. 3. STABILIZATION BOARD.
(a) FEDERAL CREDIT INSTRUMENTS.—
(1) 
OPERATING
PLAN.—An 
obligor 
seeking
issuance of a Federal credit instrument under section
2(a)(1) shall submit to the Air Transportation Sta-
bilization Board, established under section 102(b) of
the Air Transportation Safety Stabilization Act (49
U.S.C. 40101 note; 115 Stat. 231), an operating plan
(including budget and cash flow projections) and fi-
nancial plan for the period of time that the instru-
ment will be in effect. Such plans shall demonstrate
to the satisfaction of the Board the ability of the obli-
gor to continue operations as an ongoing general
aviation entity during and after the period of time
the instrument will be in effect.
(2) ISSUANCE.—The Board, in consultation with
the Small Business Administration, may enter into
agreements with 1 or more obligors to issue Federal
credit instruments under section 2(a)(1) if the Board
determines, in its discretion, that—
(A) the obligor is a general aviation entity
for which credit is not reasonably available at
the time of the transaction;
(B) the intended obligation by the obligor is
prudently incurred;
(C) the obligor has furnished reasonable as-
surance that it will be able to repay all loans
and other debt obligations covered by the Federal
credit instrument in accordance with the terms
of such loans and other obligations;
(D) the obligor intends to continue to oper-
ate as a general aviation entity, and the oper-
ating and financial plan submitted by the obli-
gor under paragraph (1) satisfies the demonstra-
tion required by paragraph (1); and
(E) the type of aviation services or products
(or both) provided by the obligor are an impor-
tant part of a safe, efficient, and viable general
aviation system.
(b) TERMS AND LIMITATIONS.—
(1) FORMS; TERMS AND CONDITIONS.—A Federal
credit instrument shall be issued under section 2(a)(1)
in such form and on such terms and conditions and
contain such covenants, representations, warranties,
and requirements (including requirements for audits)
as the Board determines appropriate. The Board may
issue a Federal credit instrument under section
2(a)(1) to pay all or part of any of the principal of
and interest on a loan or other debt obligation issued
to the obligor.
(2) PROCEDURES.—Not later than 14 days after
the date of enactment of this Act, the Director of the
Office of Management and Budget shall issue regula-
tions setting forth procedures for application and
minimum requirements, which may be supplemented
by the Board in its discretion, for the issuance of Fed-
eral credit instruments under section 2(a)(1).
(c) FINANCIAL PROTECTION OF GOVERNMENT.—
(1) IN
GENERAL.—To the extent feasible and
practicable, the Board shall ensure that the Govern-
ment is compensated for the risk assumed in making
guarantees under this Act.
(2) GOVERNMENT PARTICIPATION IN GAINS.—To
the extent to which any participating entity accepts
financial assistance, in the form of accepting the pro-
ceeds of any loans guaranteed by the Government
under this Act, the Board is authorized to enter into
contracts under which the Government, contingent on
the financial success of the participating entity,
would participate in the gains of the participating
entity or its security holders through the use of such
instruments as warrants, stock options, common or
preferred stock, or other appropriate equity instru-
ments.
(3) DEPOSIT IN TREASURY.—All amounts col-
lected by the Government under this subsection shall
be deposited in the Treasury as miscellaneous re-
ceipts.
SEC. 4. SPECIAL RULES FOR COMPENSATION.
(a) LIMITATION ON AMOUNT OF COMPENSATION.—
(1) DOCUMENTATION.—Subject to subsection (b),
the amount of compensation payable under section
2(a)(2) to a general aviation entity may not exceed
the amount of losses described in such section that
such entity demonstrates to the satisfaction of the
President, using sworn financial statements or other
appropriate data, that such entity incurred.
(2) AUDITS.—The Secretary of Transportation
and the Comptroller General of the United States
may audit statements referred to in paragraph (1)
and may request any information that the Secretary
and the Comptroller General deem necessary to con-
duct such audit.
(b) PRIORITY.—The President shall give priority for
compensation under section 2(a)(2) to a general aviation
entity—
(1) based on the length of time that the entity
has been unable to operate as a result of the terrorist
attacks on the United States that occurred on Sep-
tember 11, 2001; and
(2) if the entity is a small business concern (as
defined under section 3 of the Small Business Admin-
istration Act (15 U.S.C. 632(a))).
(c) AMOUNT OF COMPENSATION.—In order to ensure
that compensation provided under section 2(a)(2) is distrib-
uted equitably among general aviation entities that have
substantiated losses described in section 2(a)(2), the Presi-
dent may provide compensation under section 2(a)(2) to a
general aviation entity that is an amount less than the
amount of losses incurred by the entity and substantiated
by the entity as losses for which compensation may be made
under section 2(a)(2).
(d) PAYMENTS.—The President may provide com-
pensation under section 2(a)(2) to general aviation entities
in 1 or more payments up to the amount authorized by
this Act.
(e) EMPLOYEE PROTECTION.—If the President pro-
vides compensation to a general aviation entity under sub-
paragraph (A) or (B) of section 2(a)(2), the President must
also provide compensation to its employees under subpara-
graph (C) of such section. The President shall develop proce-
dures to ensure that an application by a general aviation
entity for compensation includes complete information
about losses of employees of such entity.
SEC. 5. LIMITATION ON CERTAIN EMPLOYEE COMPENSA-
TION.
(a) IN GENERAL.—The President may only issue a
Federal credit instrument, or provide compensation, under
section 2(a) to a general aviation entity after the entity
enters into a legally binding agreement with the President
that, during the 2-year period beginning on the date of en-
actment of this Act, no officer or employee of the entity
whose total compensation exceeded $300,000 in calendar
year 2000 (other than an employee whose compensation is
determined through an existing collective bargaining agree-
ment entered into prior to such date of enactment)—
(1) will receive from the entity total compensa-
tion which exceeds, during any 12 consecutive months
of such 2-year period, the total compensation received
by the officer or employee from the entity in calendar
year 2000; and
(2) will receive from the entity severance pay or
other benefits upon termination of employment with
the entity which exceeds twice the maximum total
compensation received by the officer or employee from
the entity in calendar year 2000.
(b) TOTAL COMPENSATION DEFINED.—In this section,
the term ‘‘total compensation’’ includes salary, bonuses,
awards of stock, and other financial benefits provided by
a general aviation entity to an officer or employee of the
entity.
SEC. 6. DOMESTIC INSURANCE AND REIMBURSEMENT OF
INSURANCE COSTS.
Section 44302 of title 49, United States Code, is
amended—
(1) in each of subsections (b), (c), and (d) by in-
serting ‘‘or general aviation entity (as defined in sec-
tion 3 of the General Aviation Industry Reparations
Act of 2002)’’ after ‘‘air carrier’’; and
(2) in subsection (b)(4) by inserting ‘‘and gen-
eral aviation entities’’ after ‘‘air carriers’’.
SEC. 7. REPORT.
Not later than the 180th day following the date of en-
actment of this Act, the President shall transmit to the
Committee on Transportation and Infrastructure, the Com-
mittee on Appropriations, and the Committee on the Budget
of the House of Representatives and the Committee on Com-
merce, Science, and Transportation, the Committee on Ap-
propriations, and the Committee on the Budget of the Sen-
ate a report on the amount of assistance provided under
this Act to each general aviation entity and the financial
status of such entity.
SEC. 8. HEALTH INSURANCE.
(a) HEALTH INSURANCE AGREEMENT.—The President
may only issue a Federal credit instrument to a general
aviation entity under section 2(a)(1) if the entity has en-
tered into a legally binding agreement with the President
to provide—
(1) for payment of costs attributable to providing
health insurance coverage as described in subsections
(b) and (c); and
(2) for maintenance of current health benefit and
contribution levels as described in subsection (d).
(b) PAYMENT OF HEALTH INSURANCE COVERAGE FOR
FORMER EMPLOYEES WHO LOSE COVERAGE.—Under the
agreement under subsection (a) and subject to subsection
(e), the entity shall pay the costs attributable to providing
health insurance coverage for a former employee (and the
employee’s dependents) if the former employee—
(1) was provided health insurance coverage on
September 11, 2001, by the entity; and
(2) lost his or her job, after September 11, 2001,
and before the date the entity is issued a Federal
credit instrument under section 2(a)(1), as a result of
the terrorist attacks on the United States that oc-
curred on September 11, 2001.
(c) PAYMENT OF HEALTH INSURANCE COVERAGE FOR
CURRENT EMPLOYEES WHO LOSE COVERAGE.—Under the
agreement under subsection (a) and subject to subsection
(e), the entity shall pay the costs attributable to providing
health insurance coverage for an employee (and the employ-
ee’s dependents) if the employee—
(2) under subsections (b) and (c) shall not apply
to an employee who lost a job for cause; and
(3) under subsection (b) shall not apply to an
employee after the date that the employee is first em-
ployed on a full-time, non-seasonal basis after the
date of the job loss referred to in subsection (b).
(f) HEALTH INSURANCE COVERAGE DEFINED.—For
purposes of this section and section 2, the term ‘‘health in-
surance coverage’’ has the meaning given such term in sub-
section (b)(1) of section 733 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1191b) and in-
cludes coverage under a group health plan (as defined in
subsection (a)(1) of such section).
SEC. 9. DEFINITIONS.
In this Act, the following definitions apply:
(1) FEDERAL CREDIT INSTRUMENT.—The term
‘‘Federal credit instrument’’ means any guarantee or
other pledge by the Air Transportation Stabilization
Board issued under section 2(a)(1) of this Act to
pledge the full faith and credit of the United States
to pay all or part of any of the principal of and in-
terest on a loan or other debt obligation issued by an
obligor and funded by a lender.
(2) GENERAL AVIATION ENTITY.—The term ‘‘gen-
eral aviation entity’’ means any person (other than
an air carrier or foreign air carrier) that—
(A) operates nonmilitary aircraft under
part 91 of title 14, Code of Federal Regulations,
for the purpose of conducting its primary busi-
ness;
(B) manufactures nonmilitary aircraft with
a maximum seating capacity of fewer than 20
passengers or aircraft parts to be used in such
aircraft;
(C) provides services necessary for non-
military operations under such part 91; or
(D) operates an airport, other than a pri-
mary airport (as such terms are defined in sec-
tion 40102 of title 49, United States Code),
that—
(i) is listed in the national plan of in-
tegrated airport systems developed by the
Federal Aviation Administration under sec-
tion 47103 of such title; or
(ii) is normally open to the public, is
located within the confines of enhanced class
B airspace (as defined by the Federal Avia-
tion Administration in Notice to Airmen
FDC 1/0618), and was closed as a result of
an order issued by the Federal Aviation Ad-
ministration in the period beginning Sep-
tember 11, 2001, and ending January 1,
2002, and remained closed as a result of
that order on January 1, 2002.
Such term includes fixed based operators, flight
schools, manufacturers of general aviation aircraft
and products, persons engaged in nonscheduled avia-
tion enterprises, and general aviation independent
contractors.
(3) INCREMENTAL LOSS.—The term ‘‘incremental
loss’’ does not include any loss that the President de-
termines would have been incurred if the terrorist at-
tacks on the United States that occurred on Sep-
tember 11, 2001, had not occurred.
Union Calendar No. 241
107TH CONGRESS
2D SESSION
H. R. 3347
[Report No. 107–406, Part I]
A BILL
To provide economic relief to general aviation enti-
ties that have suffered substantial economic in-
jury as a result of the terrorist attacks per-
petrated against the United States on September
11, 2001.
APRIL 15, 2002
Reported from the Committee on Transportation and
Infrastructure with an amendment
APRIL 15, 2002
Referral to the Committees on Financial Services and the
Budget extended for a period ending not later than
April 15, 2002
APRIL 15, 2002
Committees on Financial Services and the Budget dis-
charged; committed to the Committee of the Whole
House on the State of the Union and ordered to be
printed