I 
107TH CONGRESS 
2D SESSION 
H. R. 5506
To amend title 49, United States Code, to provide relief to the airline 
industry, to reform the Federal Aviation Administration, and to make 
technical corrections, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 1, 2002
Mr. MICA introduced the following bill; which was referred to the Committee 
on Transportation and Infrastructure 
A BILL 
To amend title 49, United States Code, to provide relief 
to the airline industry, to reform the Federal Aviation 
Administration, and to make technical corrections, and 
for other purposes.
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 ‘‘Aviation Industry Sta-
bilization and Reform Act of 2002’’. 
SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms
of an amendment to, or a repeal of, a section or other 
provision, the reference shall be considered to be made to 
a section or other provision of title 49, United States 
Code. 
TITLE I—AIR CARRIER RELIEF
SEC. 101. AIR CARRIER LIABILITY FOR THIRD PARTY 
CLAIMS ARISING OUT OF ACTS OF TER-
RORISM. 
Section 44303 is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘The Secretary of Transportation’’; 
(2) by moving the text of paragraph (2) of sec-
tion 201(b) of the Air Transportation Safety and 
System Stabilization Act (115 Stat. 235) to the end 
and redesignating such paragraph as subsection (b); 
(3) in subsection (b) (as so redesignated)—
(A) by striking the subsection heading and 
inserting ‘‘AIR CARRIER LIABILITY FOR THIRD 
PARTY CLAIMS ARISING OUT OF ACTS OF TER-
RORISM.—’’; 
(B) in the first sentence by striking ‘‘the 
180-day period following the date of enactment 
of this Act, the Secretary of Transportation’’ 
and inserting ‘‘the period beginning on Sep-
tember 22, 2001, and ending on December 31, 
2003, the Secretary’’; and 
(C) in the last sentence by striking ‘‘this 
paragraph’’ and inserting ‘‘this subsection’’; 
and 
(4) by moving the text of subsection (b) (as so 
redesignated) 2 ems to the left. 
SEC. 102. EXTENSION OF CERTAIN INSURANCE POLICIES. 
Section 44302 is amended by adding at the end the 
following: 
‘‘(f) EXTENSION OF CERTAIN POLICIES.—The Sec-
retary shall extend through December 31, 2003, the termi-
nation date of any insurance policy that the Department 
of Transportation issued to an air carrier under subsection 
(a) and that is in effect on the date of enactment of this 
subsection on no less favorable terms to the air carrier 
than existed in the policy on June 19, 2002; except that 
the Secretary shall amend the insurance policy to provide 
coverage for losses or injuries to aircraft hull, passenger, 
and crew on such terms and conditions as the Secretary 
may prescribe at an additional premium comparable to the 
premium charged for third-party casualty coverage under 
such policy and except that in no event shall the total pre-
mium paid by the air carrier for the policy, as amended,
be more than twice the premium that the air carrier was 
paying for the policy as of June 19, 2002.’’. 
SEC. 103. CORRECTION OF REFERENCE. 
Effective November 19, 2001, section 147 of the 
Aviation and Transportation Security Act (Public Law 
107–71) is amended by striking ‘‘(b)’’ and inserting ‘‘(c)’’.
SEC. 104. LOAN GUARANTEES. 
(a) EXTENSION OF APPLICATION PERIOD.—Notwith-
standing section 1300.16 of title 14, Code of Federal Reg-
ulations, or any other provision of law or regulation, appli-
cations for Federal credit instruments authorized by sec-
tion 101 of the Air Transportation Safety and System 
Stabilization Act (49 U.S.C. 40101 note; 115 Stat. 230) 
may be filed at any time after the date on which armed 
hostilities between the United States and Iraq commence 
and for 60 days after the date on which such hostilities 
end. 
(b) PUBLICATION
OF NOTICE.—The Secretary of 
Transportation shall publish a notice in the Federal Reg-
ister announcing that applications may be filed under sub-
section (a) and another notice when the time for such ap-
plications will end. 
(c) TREATMENT OF TIME PERIOD.—The 2-year pe-
riod referred to in section 104(a) of the Air Transpor-
tation Safety and System Stabilization Act (49 U.S.C.
40101 note; 115 Stat. 233) shall be treated with respect 
to an application filed in accordance with subsection (a) 
of this section as being the 2-year period beginning on the 
date of enactment of this Act. 
(d) TERMINATION DATE.—This section shall cease to 
be in effect if the Secretary does not publish a notice 
under subsection (b) within 6 months after the date of 
enactment of this Act. 
SEC. 105. AIR MARSHALS. 
Not later than 90 days after all cockpit doors that 
are required to be strengthened under section 104(a) of 
the Aviation and Transportation Security Act (49 U.S.C. 
44903 note; 115 Stat. 605–606) are strengthened, the 
Under Secretary shall reconsider whether it is necessary 
to require Federal air marshals to be seated in the first 
class cabin of an aircraft with strengthened cockpit doors 
and report to Congress (in classified form if necessary) 
on the results of such reconsideration. 
SEC. 106. SCREENING OF MAIL. 
(a) IMPROVED SCREENING.—Not later than 30 days 
after the date of enactment of this Act, the Under Sec-
retary of Transportation for Security shall undertake, 
without a decrease in aviation security, such action as may 
be necessary to improve the screening of mail so that it 
can be carried on passenger flights of air carriers.
(b) POSTAL
EMPLOYEES.—Section 44901(a) is 
amended by striking ‘‘, United States Code)’’ and insert-
ing the following: ‘‘or, in the case of United States mail, 
by an employee or officer of the United States Postal Serv-
ice under standards and procedures established by the 
Under Secretary.’’. 
(c) REPORT.—Not later than 120 days after the date 
of enactment of this Act, the Under Secretary shall trans-
mit Congress a report on the Transportation Security Ad-
ministration’s pilot program to determine whether canine 
teams can be used to screen mail weighing over 16 ounces 
before being placed aboard passenger-carrying aircraft, 
and on the Administration’s consultations, if any, with the 
United States Postal Service to determine whether Postal 
Service personnel can be used to perform screening serv-
ices for such mail. 
SEC. 107. REIMBURSEMENT OF AIR CARRIERS FOR CER-
TAIN SCREENING AND RELATED ACTIVITIES. 
The Under Secretary of Transportation for Security, 
within available resources, shall reimburse air carriers and 
airports for the following: 
(1) All screening and related activities that the 
air carriers or airports are still performing or con-
tinuing to be responsible for, including—
(A) the screening of catering supplies;
(B) checking documents at security check-
points; 
(C) screening of passengers; and 
(D) screening of persons with access to 
aircraft. 
(2) The provision of space and facilities used to 
perform screening functions if such space and facili-
ties have been previously used, or were intended to 
be used, for revenue-producing purposes. 
SEC. 108. REIMBURSEMENT OF AIR CARRIERS FOR FOR-
TIFYING COCKPIT DOOR. 
The Under Secretary of Transportation for Security 
shall reimburse air carriers for the cost of fortifying cock-
pit doors in accordance with section 48301(b) of title 49, 
United States Code. 
SEC. 109. REQUIREMENT FOR ISSUANCE OF FINAL RULE 
FOR COCKPIT DOORS ON ALL-CARGO AIR-
CRAFT. 
Neither the Transportation Security Administration 
nor the Federal Aviation Administration may issue or en-
force a final rule requiring the strengthening or locking 
of cockpit doors on all-cargo aircraft until the Under Sec-
retary of Transportation for Security has considered and 
addressed, in writing, all comments received regarding 
such strengthening or locking and has determined that
such strengthening or locking is necessary for aviation se-
curity. 
SEC. 110. SENSE OF CONGRESS. 
It is the sense of Congress that—
(1) the Transportation Security Administration 
should implement a trusted traveler or similar pro-
gram as soon as possible and this program should 
start with the credentialing of airport and air carrier 
employees; 
(2) any insurance coverage extended to air car-
riers by the Secretary of Transportation should also 
be extended to any other person under contract to 
provide services to that carrier at an airport served 
by that carrier, including catering, fueling, security, 
and ground handling services; and 
(3) the Transportation Security Administration 
should maximize the use of the certified explosive 
detection systems currently installed at airports. 
TITLE II—FEDERAL AVIATION 
REFORM 
SEC. 201. MANAGEMENT ADVISORY COMMITTEE MEMBERS. 
Section 106(p) is amended—
(1) in the subsection heading by inserting ‘‘AND 
AIR TRAFFIC SERVICES BOARD’’ after ‘‘COUNCIL’’; 
(2) in paragraph (2)—
(A) by striking ‘‘consist of’’ and all that 
follows through ‘‘members, who’’ and inserting 
‘‘consist of 13 members, who’’; 
(B) by inserting after ‘‘Senate’’ in sub-
paragraph (C)(i) ‘‘, except that initial appoint-
ments made after October 1, 2002, shall be 
made by the Secretary of Transportation’’; 
(C) by striking the semicolon at the end of 
subparagraph (C)(ii) and inserting ‘‘; and’’; and 
(D) by striking ‘‘employees, by—’’ in sub-
paragraph (D) and all that follows through the 
period at the end of subparagraph (E) and in-
serting ‘‘employees, by the Secretary of Trans-
portation.’’. 
SEC. 202. REORGANIZATION OF THE AIR TRAFFIC SERV-
ICES SUBCOMMITTEE. 
Section 106(p) is amended—
(1) in paragraph (3)—
(A) by striking ‘‘(A) NO FEDERAL OFFI-
CER OR EMPLOYEE.—’’; 
(B) by striking ‘‘or (2)(E)’’ and inserting 
‘‘or to the Air Traffic Services Board’’; and 
(C) by striking subparagraphs (B) and 
(C);
(2) in paragraph (4)(C) by inserting ‘‘or Air 
Traffic Services Board’’ after ‘‘Council’’ each place 
it appears; 
(3) in paragraph (5) by inserting ‘‘, the Air 
Traffic Services Board,’’ after ‘‘Council’’; 
(4) in paragraph (6)(C)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the 
subparagraph heading and inserting ‘‘BOARD’’; 
and 
(B) by striking ‘‘member’’ and inserting 
‘‘members’’; 
(C) by striking ‘‘under paragraph (2)(E)’’ 
the first place it appears and inserting ‘‘to the 
Air Traffic Services Board’’; and 
(D) by striking ‘‘of the members first’’ and 
all that follows through the period at the end 
and inserting ‘‘the first members of the Board 
shall be the members of the Air Traffic Services 
Subcommittee of the Council on the day before 
the day of enactment of the Aviation Industry 
Stabilization and Reform Act of 2002 who shall 
serve as members of the Board until their re-
spective terms as members of the Subcommittee 
would have ended under this subparagraph, as 
in effect on such day.’’;
(5) in paragraph (6)(D) by striking ‘‘under 
paragraph (2)(E)’’ and inserting ‘‘to the Board’’; 
(6) in paragraph (6)(E) by inserting ‘‘or 
Board’’ after ‘‘Council’’; 
(7) in paragraph (6)(F) by inserting ‘‘of the 
Council or Board’’ after ‘‘member’’; 
(8) in the second sentence of subparagraph 
(6)(G)—
(i) by striking ‘‘Council’’ and inserting 
‘‘Board’’; and 
(ii) by striking ‘‘appointed under 
paragraph (2)(E)’’; 
(9) in paragraph (6)(H)—
(i) by striking ‘‘SUBCOMMITTEE’’ in 
the subparagraph heading and inserting 
‘‘BOARD’’; 
(ii) by striking ‘‘under paragraph 
(2)(E)’’ in clause (i) and inserting ‘‘to the 
Board’’; and 
(iii) by striking ‘‘Air Traffic Services 
Subcommittee’’ and inserting ‘‘Board’’; 
(10) in paragraph (6)(I)(i)—
(A) by striking ‘‘appointed under para-
graph (2)(E) is’’ and inserting ‘‘is serving as’’; 
and
(B) by striking ‘‘Subcommittee’’ and in-
serting ‘‘Board’’; and 
(11) in paragraph (6)(I)(ii)—
(A) by striking ‘‘appointed under 
paragraph (2)(E)’’ and inserting ‘‘who is a 
member of the Board’’; and 
(B) by striking ‘‘Subcommittee’’ and 
inserting ‘‘Board’’; 
(12) in paragraph (6)(K) by inserting ‘‘or 
Board’’ after ‘‘Council’’; 
(13) in paragraph (6)(L) by inserting ‘‘or 
Board’’ after ‘‘Council’’ each place it appears; and 
(14) in paragraph (7)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the 
paragraph heading and inserting ‘‘BOARD’’; 
(B) by striking subparagraph (A) and in-
serting the following: 
‘‘(A) 
ESTABLISHMENT.—The 
Adminis-
trator shall establish a board that is inde-
pendent of the Council by converting the Air 
Traffic Services Subcommittee of the Council, 
as in effect on the day before the date of enact-
ment of the Aviation Industry Stabilization and 
Reform Act of 2002, into such board. The 
board shall be known as the Air Traffic Serv-
ices Board (in this subsection referred to as the 
‘Board’).’’; 
(C) by redesignating subparagraphs (B) 
through (F) as subparagraphs (D) through 
(H), respectively; 
(D) by inserting after subparagraph (A) 
the following: 
‘‘(B) 
MEMBERSHIP
AND
QUALIFICA-
TIONS.—Subject to paragraph (6)(C), the 
Board shall consist of 5 members, one of whom 
shall be the Administrator and shall serve as 
chairperson. The remaining members shall be 
appointed by the President with the advice and 
consent of the Senate and—
‘‘(i) shall have a fiduciary responsi-
bility to represent the public interest; 
‘‘(ii) shall be citizens of the United 
States; and 
‘‘(iii) shall be appointed without re-
gard to political affiliation and solely on 
the basis of their professional experience 
and expertise in one or more of the fol-
lowing areas and, in the aggregate, should 
collectively bring to bear expertise in all of 
the following areas:
‘‘(I) management of large service 
organizations; 
‘‘(II) customer service; 
‘‘(III) management of large pro-
curements; 
‘‘(IV) information and commu-
nications technology; 
‘‘(V) organizational development; 
‘‘(VI) labor relations. 
‘‘(C) PROHIBITIONS
ON
MEMBERS
OF 
BOARD.—No member of the Board may—
‘‘(i) have a pecuniary interest in, or 
own stock in or bonds of, an aviation or 
aeronautical enterprise, except an interest 
in a diversified mutual fund or an interest 
that is exempt from the application of sec-
tion 208 of title 18; 
‘‘(ii) engage in another business re-
lated to aviation or aeronautics; or 
‘‘(iii) be a member of any organization 
that engages, as a substantial part of its 
activities, in activities to influence aviation-
related legislation.’’; 
(E) by striking ‘‘Subcommittee’’ each place 
it appears in subparagraphs (D) and (E), as re-
designated by subparagraph (C) of this para-
graph, and inserting ‘‘Board’’; 
(F) by striking ‘‘approve’’ in subparagraph 
(E)(v)(I), as so redesignated, and inserting 
‘‘make recommendations on’’; 
(G) by striking ‘‘request’’ in subparagraph 
(E)(v)(II), as so redesignated, and inserting 
‘‘recommendations’’; 
(H) by striking ‘‘ensure that the budget 
request supports’’ in subparagraph (E)(v)(III), 
as so redesignated, and inserting ‘‘base such 
budget recommendations on’’; and 
(I) by striking ‘‘The Secretary shall sub-
mit’’ in subparagraph (E), as so redesignated, 
and all that follows through the period at the 
end of such subparagraph (E) and inserting 
‘‘The Secretary shall submit the budget rec-
ommendations referred to in clause (v) to the 
President who shall transmit such recommenda-
tions to the Committee on Transportation and 
Infrastructure and the Committee on Appro-
priations of the House of Representatives and 
the Committee on Commerce, Science, and 
Transportation and the Committee on Appro-
priations of the Senate together with the annual