(2) GOVERNMENT PARTICIPATION IN GAINS.—
To the extent to which any participating corporation
accepts financial assistance, in the form of accepting
the proceeds of any loans guaranteed by the Govern-
ment under this title, the Board is authorized to
enter into contracts under which the Government,
contingent on the financial success of the partici-
pating corporation, would participate in the gains of
the participating corporation or its security holders
through the use of such instruments as warrants,
stock options, common or preferred stock, or other
appropriate equity instruments.
(3) DEPOSIT IN TREASURY.—All amounts col-
lected by the Secretary of the Treasury under this
subsection shall be deposited in the Treasury as mis-
cellaneous receipts.
SEC. 103. SPECIAL RULES FOR COMPENSATION.
(a) DOCUMENTATION.—Subject to subsection (b), the
amount of compensation payable to an air carrier under
section 101(a)(2) may not exceed the amount of losses de-
scribed in section 101(a)(2) that the air carrier dem-
onstrates to the satisfaction of the President, using sworn
financial statements or other appropriate data, that the
air carrier incurred. The Secretary of Transportation and
the Comptroller General of the United States may audit
such statements and may request any information that the
Secretary and the Comptroller General deems necessary
to conduct such audit.
(b) MAXIMUM AMOUNT OF COMPENSATION PAYABLE
PER AIR CARRIER.—The maximum total amount of com-
pensation payable to an air carrier under section
101(a)(2) may not exceed the lesser of—
(1) the amount of such air carrier’s direct and
incremental losses described in section 101(a)(2); or
(2) in the case of—
(A) flights involving passenger-only or
combined passenger and cargo transportation,
the product of—
(i) $4,500,000,000; and
(ii) the ratio of—
(I) the available seat miles of the
air carrier for the month of August
2001 as reported to the Secretary; to
(II) the total available seat miles
of all such air carriers for such month
as reported to the Secretary; and
(B) flights involving cargo-only transpor-
tation, the product of—
(i) $500,000,000; and
(ii) the ratio of—
(I) the revenue ton miles or other
auditable measure of the air carrier
for cargo for the latest quarter for
which data is available as reported to
the Secretary; to
(II) the total revenue ton miles
or other auditable measure of all such
air carriers for cargo for such quarter
as reported to the Secretary.
(c) PAYMENTS.—The President may provide com-
pensation to air carriers under section 101(a)(2) in 1 or
more payments up to the amount authorized by this title.
SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSA-
TION.
(a) IN GENERAL.—The President may only issue a
Federal credit instrument under section 101(a)(1) to an
air carrier after the air carrier enters into a legally binding
agreement with the President that, during the 2-year pe-
riod beginning September 11, 2001, and ending Sep-
tember 11, 2003, no officer or employee of the air carrier
whose total compensation exceeded $300,000 in calendar
year 2000 (other than an employee whose compensation
is determined through an existing collective bargaining
agreement entered into prior to September 11, 2001)—
(1) will receive from the air carrier total com-
pensation which exceeds, during any 12 consecutive
months of such 2-year period, the total compensa-
tion received by the officer or employee from the air
carrier in calendar year 2000; and
(2) will receive from the air carrier severance
pay or other benefits upon termination of employ-
ment with the air carrier which exceeds twice the
maximum total compensation received by the officer
or employee from the air carrier in calendar year
2000.
(b) TOTAL COMPENSATION DEFINED.—In this sec-
tion, the term ‘‘total compensation’’ includes salary, bo-
nuses, awards of stock, and other financial benefits pro-
vided by an air carrier to an officer or employee of the
air carrier.
SEC. 105. CONTINUATION OF CERTAIN AIR SERVICE.
(a) ACTION
OF
SECRETARY.—The Secretary of
Transportation should take appropriate action to ensure
that all communities that had scheduled air service before
September 11, 2001, continue to receive adequate air
transportation service and that essential air service to
small communities continues without interruption.
(b) ESSENTIAL AIR SERVICE.—There is authorized
to be appropriated to the Secretary to carry out the essen-
tial air service program under subchapter II of chapter
417 of title 49, United States Code, $120,000,000 for fis-
cal year 2002.
(c) SECRETARIAL OVERSIGHT.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, the Secretary is authorized to re-
quire an air carrier receiving direct financial assist-
ance under this Act to maintain scheduled air serv-
ice to any point served by that carrier before Sep-
tember 11, 2001.
(2) AGREEMENTS.—In applying paragraph (1),
the Secretary may require air carriers receiving di-
rect financial assistance under this Act to enter into
agreements which will ensure, to the maximum ex-
tent practicable, that all communities that had
scheduled air service before September 11, 2001,
continue to receive adequate air transportation serv-
ice.
SEC. 106. REPORTS.
(a) REPORT.—Not later than February 1, 2001, the
President shall transmit to the Committee on Transpor-
tation and Infrastructure, the Committee on Appropria-
tions, and the Committee on the Budget of the House of
Representatives and the Committee on Commerce,
Science, and Transportation, the Committee on Appro-
priations, and the Committee on the Budget of the Senate
a report on the financial status of the air carrier industry
and the amounts of assistance provided under this title
to each air carrier.
(b) UPDATE.—Not later than the last day of the 7-
month period following the date of enactment of this Act,
the President shall update and transmit the report to the
Committees.
SEC. 107. DEFINITIONS.
In this title, the following definitions apply:
(1) AIR CARRIER.—The term ‘‘air carrier’’ has
the meaning such term has under section 40102 of
title 49, United States Code.
(2) FEDERAL CREDIT INSTRUMENT.—The term
‘‘Federal credit instrument’’ means any guarantee or
other pledge by the Board issued under section
101(a)(1) to pledge the full faith and credit of the
United States to pay all or part of any of the prin-
cipal of and interest on a loan or other debt obliga-
tion issued by an obligor and funded by a lender.
(3) INCREMENTAL
LOSS.—The term ‘‘incre-
mental loss’’ does not include any loss that the
President determines would have been incurred if
the terrorist attacks on the United States that oc-
curred on September 11, 2001, had not occurred.
TITLE II—AVIATION INSURANCE
SEC. 201. DOMESTIC INSURANCE AND REIMBURSEMENT OF
INSURANCE COSTS.
(a) IN GENERAL.—Section 44302 of title 49, United
States Code, is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘subsection (b)’’ and in-
serting ‘‘subsection (c)’’; and
(B) by striking ‘‘foreign-flag aircraft—’’
and all that follows through the period at the
end of subparagraph (B) and inserting ‘‘for-
eign-flag aircraft.’’;
(2) by redesignating subsections (b), (c), and
(d) as subsections (c), (d), and (e), respectively;
(3) by inserting after subsection (a) the fol-
lowing:
‘‘(b) REIMBURSEMENT
OF INSURANCE COST IN-
CREASES.—
‘‘(1) IN GENERAL.—The Secretary may reim-
burse an air carrier for the increase in the cost of
insurance, with respect to a premium for coverage
ending before October 1, 2002, against loss or dam-
age arising out of any risk from the operation of an
American aircraft over the insurance premium that
was in effect for a comparable operation during the
period beginning September 4, 2001, and ending
September 10, 2001, as the Secretary may deter-
mine. Such reimbursement is subject to subsections
(a)(2), (c), and (d) of this section and to section
44303.
‘‘(2) PAYMENT FROM REVOLVING FUND.—A re-
imbursement under this subsection shall be paid
from the revolving fund established by section
44307.
‘‘(3) FURTHER
CONDITIONS.—The Secretary
may impose such further conditions on insurance for
which the increase in premium is subject to reim-
bursement under this subsection as the Secretary
may deem appropriate in the interest of air com-
merce.
‘‘(4) TERMINATION OF AUTHORITY.—The au-
thority to reimburse air carriers under this sub-
section shall expire 180 days after the date of enact-
ment of this paragraph.’’;
(4) in subsection (c) (as so redesignated)—
(A) in the first sentence by inserting ‘‘, or
reimburse an air carrier under subsection (b) of
this section,’’ before ‘‘only with the approval’’;
and
(B) in the second sentence—
(i) by inserting ‘‘or the reimburse-
ment’’ before ‘‘only after deciding’’; and
(ii) by inserting ‘‘in the interest of air
commerce or national security or’’ before
‘‘to carry out the foreign policy’’; and
(5) in subsection (d) (as so redesignated) by in-
serting ‘‘or reimbursing an air carrier’’ before
‘‘under this chapter’’.
(b) COVERAGE.—
(1) IN GENERAL.—Section 44303 of such title
is amended—
(A) in the matter preceding paragraph (1)
by inserting ‘‘, or reimburse insurance costs,
as’’ after ‘‘insurance and reinsurance’’; and
(B) in paragraph (1) by inserting ‘‘in the
interest of air commerce or national security
or’’ before ‘‘to carry out the foreign policy’’.
(2) DISCRETION
OF
THE
SECRETARY.—For
acts of terrorism committed on or to an air carrier
during the 180-day period following the date of en-
actment of this Act, the Secretary of Transportation
may certify that the air carrier was a victim of an
act of terrorism and in the Secretary’s judgment,
based on the Secretary’s analysis and conclusions re-
garding the facts and circumstances of each case,
shall not be responsible for losses suffered by third
parties (as referred to in section 205.5(b)(1) of title
14, Code of Federal Regulations) that exceed
$100,000,000, in the aggregate, for all claims by
such parties arising out of such act. If the Secretary
so certifies, the air carrier shall not be liable for an
amount that exceeds $100,000,000, in the aggre-
gate, for all claims by such parties arising out of
such act, and the Government shall be responsible
for any liability above such amount. No punitive
damages may be awarded against an air carrier (or
the Government taking responsibility for an air car-
rier under this paragraph) under a cause of action
arising out of such act.
(c) REINSURANCE.—Section 44304 of such title is
amended—
(1) by striking ‘‘(a) GENERAL AUTHORITY.—’’;
and
(2) by striking subsection (b).
(d) PREMIUMS.—Section 44306 of such title is
amended—
(1) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(2) by inserting after subsection (a) the fol-
lowing:
‘‘(b) ALLOWANCES IN SETTING PREMIUM RATES FOR
REINSURANCE.—In setting premium rates for reinsur-
ance, the Secretary may make allowances to the insurance
carrier for expenses incurred in providing services and fa-
cilities that the Secretary considers good business prac-
tices, except for payments by the air carrier for the stimu-
lation or solicitation of insurance business.’’.
(e) CONFORMING AMENDMENT.—Section 44305(b)
of such title is amended by striking ‘‘44302(b)’’ and in-
serting ‘‘44302(c)’’.
SEC. 
202. 
EXTENSION 
OF 
PROVISIONS 
TO 
VENDORS,
AGENTS, AND SUBCONTRACTORS OF AIR
CARRIERS.
Notwithstanding any other provision of this title, the
Secretary may extend any provision of chapter 443 of title
49, United States Code, as amended by this title, and the
provisions of this title, to vendors, agents, and subcontrac-
tors of air carriers. For the 180-day period beginning on
the date of enactment of this Act, the Secretary may ex-
tend or amend any such provisions so as to ensure that
the entities referred to in the preceding sentence are not
responsible in cases of acts of terrorism for losses suffered
by third parties that exceed the amount of such entities’
liability coverage, as determined by the Secretary.
TITLE III—TAX PROVISIONS
SEC. 301. EXTENSION OF DUE DATE FOR EXCISE TAX DE-
POSITS; TREATMENT OF LOSS COMPENSA-
TION.
(a) EXTENSION OF DUE DATE FOR EXCISE TAX DE-
POSITS.—
(1) IN GENERAL.—In the case of an eligible air
carrier, any airline-related deposit required under
section 6302 of the Internal Revenue Code of 1986
to be made after September 10, 2001, and before
November 15, 2001, shall be treated for purposes of
such Code as timely made if such deposit is made
on or before November 15, 2001. If the Secretary of
the Treasury so prescribes, the preceding sentence
shall be applied by substituting for ‘‘November 15,
2001’’ each place it appears—
(A) ‘‘January 15, 2002’’, or
(B) such earlier date after November 15,
2001, as such Secretary may prescribe.
(2) ELIGIBLE AIR CARRIER.—For purposes of
this subsection, the term ‘‘eligible air carrier’’ means
any domestic corporation engaged in the trade or
business of transporting (for hire) persons by air if
such transportation is available to the general pub-
lic.
(3) AIRLINE-RELATED DEPOSIT.—For purposes
of this subsection, the term ‘‘airline-related deposit’’
means any deposit of—
(A) taxes imposed by subchapter C of
chapter 33 of such Code (relating to transpor-
tation by air), and
(B) taxes imposed by chapters 21, 22, and
24 with respect to employees engaged in a trade
or business referred to in paragraph (2).
(b) TREATMENT OF LOSS COMPENSATION.—Nothing
in any provision of law shall be construed to exclude from
gross income under the Internal Revenue Code of 1986
any compensation received under section 101(a)(2) of this
Act.
TITLE IV—VICTIM
COMPENSATION
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘September 11th Vic-
tim Compensation Fund of 2001’’.
SEC. 402. DEFINITIONS.
In this title, the following definitions apply:
(1) AIR
CARRIER.—The term ‘‘air carrier’’
means a citizen of the United States undertaking by
any means, directly or indirectly, to provide air
transportation and includes employees and agents of
such citizen.
(2) AIR
TRANSPORTATION.—The term ‘‘air
transportation’’ means foreign air transportation,
interstate air transportation, or the transportation
of mail by aircraft.
(3) CLAIMANT.—The term ‘‘claimant’’ means
an individual filing a claim for compensation under
section 405(a)(1).
(4) COLLATERAL SOURCE.—The term ‘‘collat-
eral source’’ means all collateral sources, including
life insurance, pension funds, death benefit pro-
grams, and payments by Federal, State, or local
governments related to the terrorist-related aircraft
crashes of September 11, 2001.
(5) ECONOMIC
LOSS.—The term ‘‘economic
loss’’ means any pecuniary loss resulting from harm
(including the loss of earnings or other benefits re-
lated to employment, medical expense loss, replace-
ment services loss, loss due to death, burial costs,
and loss of business or employment opportunities) to
the extent recovery for such loss is allowed under ap-
plicable State law.
(6) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible
individual’’ means an individual determined to be eli-
gible for compensation under section 405(c).
(7) NONECONOMIC LOSSES.—The term ‘‘non-
economic losses’’ means losses for physical and emo-
tional pain, suffering, inconvenience, physical im-
pairment, mental anguish, disfigurement, loss of en-
joyment of life, loss of society and companionship,
loss of consortium (other than loss of domestic serv-
ice), hedonic damages, injury to reputation, and all
other nonpecuniary losses of any kind or nature.
(8) SPECIAL MASTER.—The term ‘‘Special Mas-
ter’’ means the Special Master appointed under sec-
tion 404(a).
SEC. 403. PURPOSE.
It is the purpose of this title to provide compensation
to any individual (or relatives of a deceased individual)
who was physically injured or killed as a result of the ter-
rorist-related aircraft crashes of September 11, 2001.
SEC. 404. ADMINISTRATION.
(a) IN GENERAL.—The Attorney General, acting
through a Special Master appointed by the Attorney Gen-
eral, shall—
(1) administer the compensation program es-
tablished under this title;
(2) promulgate all procedural and substantive
rules for the administration of this title; and
(3) employ and supervise hearing officers and
other administrative personnel to perform the duties
of the Special Master under this title.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to pay the administrative and support costs for
the Special Master in carrying out this title.
SEC. 405. DETERMINATION OF ELIGIBILITY FOR COM-
PENSATION.
(a) FILING OF CLAIM.—
(1) IN GENERAL.—A claimant may file a claim
for compensation under this title with the Special
Master. The claim shall be on the form developed
under paragraph (2) and shall state the factual basis
for eligibility for compensation and the amount of
compensation sought.
(2) CLAIM FORM.—
(A) IN
GENERAL.—The Special Master
shall develop a claim form that claimants shall
use when submitting claims under paragraph
(1). The Special Master shall ensure that such
form can be filed electronically, if determined to
be practicable.
(B) 
CONTENTS.—The 
form 
developed
under subparagraph (A) shall request—
(i) information from the claimant con-
cerning the physical harm that the claim-
ant suffered, or in the case of a claim filed
on behalf of a decedent information con-
firming the decedent’s death, as a result of
the terrorist-related aircraft crashes of
September 11, 2001;
(ii) information from the claimant
concerning any possible economic and non-
economic losses that the claimant suffered
as a result of such crashes; and
(iii) information regarding collateral
sources of compensation the claimant has
received or is entitled to receive as a result
of such crashes.
(3) LIMITATION.—No claim may be filed under
paragraph (1) after the date that is 2 years after
the date on which regulations are promulgated
under section 407.
(b) REVIEW AND DETERMINATION.—
(1) REVIEW.—The Special Master shall review
a claim submitted under subsection (a) and
determine—
(A) whether the claimant is an eligible in-
dividual under subsection (c);
(B) with respect to a claimant determined
to be an eligible individual—
(i) the extent of the harm to the
claimant, including any economic and non-
economic losses; and
(ii) the amount of compensation to
which the claimant is entitled based on the
harm to the claimant, the facts of the
claim, and the individual circumstances of
the claimant.
(2) NEGLIGENCE.—With respect to a claimant,
the Special Master shall not consider negligence or
any other theory of liability.
(3) DETERMINATION.—Not later than 120 days
after that date on which a claim is filed under sub-
section (a), the Special Master shall complete a re-
view, make a determination, and provide written no-
tice to the claimant, with respect to the matters that
were the subject of the claim under review. Such a
determination shall be final and not subject to judi-
cial review.
(4) RIGHTS OF CLAIMANT.—A claimant in a re-
view under paragraph (1) shall have—
(A) the right to be represented by an at-
torney;
(B) the right to present evidence, including
the presentation of witnesses and documents;
and
(C) any other due process rights deter-
mined appropriate by the Special Master.
(5) NO PUNITIVE DAMAGES.—The Special Mas-
ter may not include amounts for punitive damages
in any compensation paid under a claim under this
title.
(6) COLLATERAL COMPENSATION.—The Special
Master shall reduce the amount of compensation de-
termined under paragraph (1)(B)(ii) by the amount
of the collateral source compensation the claimant
has received or is entitled to receive as a result of
the terrorist-related aircraft crashes of September
11, 2001.
(c) ELIGIBILITY.—
(1) IN GENERAL.—A claimant shall be deter-
mined to be an eligible individual for purposes of
this subsection if the Special Master determines that
such claimant—
(A) is an individual described in paragraph
(2); and
(B) meets the requirements of paragraph
(3).
(2) INDIVIDUALS.—A claimant is an individual
described in this paragraph if the claimant is—
(A) an individual who—
(i) was present at the World Trade
Center, (New York, New York), the Pen-
tagon (Arlington, Virginia), or the site of
the aircraft crash at Shanksville, Pennsyl-
vania at the time, or in the immediate
aftermath, of the terrorist-related aircraft
crashes of September 11, 2001; and
(ii) suffered physical harm or death as
a result of such an air crash;
(B) an individual who was a member of
the flight crew or a passenger on American Air-
lines flight 11 or 77 or United Airlines flight 93
or 175, except that an individual identified by
the Attorney General to have been a participant
or conspirator in the terrorist-related aircraft
crashes of September 11, 2001, or a represent-
ative of such individual shall not be eligible to
receive compensation under this title; or
(C) in the case of a decedent who is an in-
dividual described in subparagraph (A) or (B),
the personal representative of the decedent who
files a claim on behalf of the decedent.
(3) REQUIREMENTS.—
(A) SINGLE CLAIM.—Not more than one
claim may be submitted under this title by an
individual or on behalf of a deceased individual.
(B) LIMITATION ON CIVIL ACTION.—
(i) IN GENERAL.—Upon the submis-
sion of a claim under this title, the claim-
ant waives the right to file a civil action
(or to be a party to an action) in any Fed-
eral or State court for damages sustained
as a result of the terrorist-related aircraft
crashes of September 11, 2001. The pre-
ceding sentence does not apply to a civil
action to recover collateral source obliga-
tions.
(ii) PENDING ACTIONS.—In the case
of an individual who is a party to a civil
action described in clause (i), such indi-
vidual may not submit a claim under this
title unless such individual withdraws from
such action by the date that is 90 days
after the date on which regulations are
promulgated under section 407.
SEC. 406. PAYMENTS TO ELIGIBLE INDIVIDUALS.
(a) IN GENERAL.—Not later than 20 days after the
date on which a determination is made by the Special Mas-
ter regarding the amount of compensation due a claimant
under this title, the Special Master shall authorize pay-
ment to such claimant of the amount determined with re-
spect to the claimant.
(b) PAYMENT AUTHORITY.—This title constitutes
budget authority in advance of appropriations Acts and
represents the obligation of the Federal Government to
provide for the payment of amounts for compensation
under this title.
(c) ADDITIONAL FUNDING.—
(1) IN GENERAL.—The Attorney General is au-
thorized to accept such amounts as may be contrib-
uted by individuals, business concerns, or other enti-
ties to carry out this title, under such terms and
conditions as the Attorney General may impose.
(2) USE OF SEPARATE ACCOUNT.—In making
payments under this section, amounts contained in
any account containing funds provided under para-
graph (1) shall be used prior to using appropriated
amounts.
SEC. 407. REGULATIONS.
Not later than 90 days after the date of enactment
of this Act, the Attorney General, in consultation with the
Special Master, shall promulgate regulations to carry out
this title, including regulations with respect to—
(1) forms to be used in submitting claims under
this title;
(2) the information to be included in such
forms;
(3) procedures for hearing and the presentation
of evidence;
(4) procedures to assist an individual in filing
and pursuing claims under this title; and
(5) other matters determined appropriate by
the Attorney General.
SEC. 408. LIMITATION ON AIR CARRIER LIABILITY.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, liability for all claims, whether for compen-
satory or punitive damages, arising from the terrorist-re-
lated aircraft crashes of September 11, 2001, against any
air carrier shall not be in an amount greater than the lim-
its of the liability coverage maintained by the air carrier.
(b) FEDERAL CAUSE OF ACTION.—
(1) AVAILABILITY
OF
ACTION.—There shall
exist a Federal cause of action for damages arising
out of the hijacking and subsequent crashes of
American Airlines flights 11 and 77, and United
Airlines flights 93 and 175, on September 11, 2001.
Notwithstanding section 40120(c) of title 49, United
States Code, this cause of action shall be the exclu-
sive remedy for damages arising out of the hijacking
and subsequent crashes of such flights.
(2) SUBSTANTIVE LAW.—The substantive law
for decision in any such suit shall be derived from
the law, including choice of law principles, of the
State in which the crash occurred unless such law is
inconsistent with or preempted by Federal law.
(3) JURISDICTION.—The United States District
Court for the Southern District of New York shall
have original and exclusive jurisdiction over all ac-
tions brought for any claim (including any claim for
loss of property, personal injury, or death) resulting
from or relating to the terrorist-related aircraft
crashes of September 11, 2001.
(c) EXCLUSION.—Nothing in this section shall in any
way limit any liability of any person who is a knowing
participant in any conspiracy to hijack any aircraft or
commit any terrorist act.
SEC. 409. RIGHT OF SUBROGATION.
The United States shall have the right of subrogation
with respect to any claim paid by the United States under
this title.