Cash Refunds for Flight Cancellations Act of 2022
Bill: S.4665 | Sponsor: Sen. Markey, Edward J. (D-MA)
Policy area: Transportation and Public Works

Summary:
Cash Refunds for Flight Cancellations Act of 2022
This bill requires air carriers and ticket agents to offer full cash refunds for airline tickets if (1) an airline cancels or significantly delays a flight, or (2) a passenger cancels their ticket for a flight up until 48 hours of the scheduled departure time.
The bill permits air carriers and tickets agents to offer alternative forms of compensation, including credit, or vouchers, provided that such offer is valid indefinitely and the offer includes a clear and conspicuous notice of the passenger's right to a cash refund.
Additionally, the bill requires air carriers and ticket agents to disclose to passengers, prior to the sale of airline tickets, that they can cancel their tickets and receive a full refund.

To provide for cash refunds for canceled airline flights and tickets.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cash Refunds for Flight 
Cancellations Act of 2022''.

SEC. 2. CASH REFUNDS FOR CANCELED AIRLINE FLIGHTS AND TICKETS.

    (a) In General.--Chapter 417 of title 49, United States Code, is 
amended by adding at the end the following:

``SEC. 41727. CASH REFUNDS FOR CANCELED AIRLINE FLIGHTS AND TICKETS.

    ``(a) Cash Refunds.--
            ``(1) Requirement.--
                    ``(A) In general.--Subject to subparagraph (B), a 
                covered carrier or ticket agent who sells a ticket for 
                a passenger to take a covered flight, and either such 
                flight is canceled or significantly delayed (as defined 
                by the Secretary of Transportation) by the covered 
                carrier or such ticket is canceled by the passenger at 
                least 48 hours before the scheduled departure of the 
                flight, shall offer the passenger a full cash refund 
                for such ticket, including any ancillary fees paid, 
                within 30 days of the passenger making the request.
                    ``(B) Limitation.--A covered carrier or ticket 
                agent shall only be required to offer a cash refund 
                under subparagraph (A) for 1 flight booked by a 
                passenger on any city-pair itinerary on any given date.
            ``(2) Alternative form of compensation.--
                    ``(A) In general.--A covered carrier or ticket 
                agent may offer an alternative form of compensation 
                determined appropriate by the covered carrier or ticket 
                agent, including a credit, a voucher, or other 
                mechanism to compensate a passenger, provided that any 
                such offer includes a clear and conspicuous notice of a 
                passenger's right to a cash refund under paragraph (1).
                    ``(B) No expiration date.--An alternative form of 
                compensation provided pursuant to subparagraph (A) 
                shall remain valid and redeemable by the passenger 
                indefinitely.
            ``(3) Retroactive refunds.--In the case of a passenger 
        who--
                    ``(A) received an alternative form of compensation 
                during the period beginning on March 1, 2020, and 
                ending on the day prior to the date of enactment of 
                this Act for a covered flight or ticket for a covered 
                flight canceled by the covered carrier or by the 
                passenger; and
                    ``(B) has not fully used such alternative 
                compensation,
        such passenger may request a cash refund to replace the 
        alternative compensation, or the remaining alternative 
        compensation if the passenger has used part of the alternative 
        compensation, and the covered carrier or ticket agent shall 
        comply with such request within 30 days of receiving such 
        request.
            ``(4) Reimbursement to ticket agent.--A ticket agent who 
        provides a cash refund to a passenger under this section, 
        including a retroactive refund under paragraph (3), shall be 
        entitled to prompt reimbursement from any covered carrier for 
        the portion of the ticket price paid to that carrier.
    ``(b) Funding.--
            ``(1) In general.--Subject to paragraph (2), a covered 
        carrier or ticket agent may use amounts appropriated or 
        otherwise made available to the commercial airline industry in 
        any appropriations enacted on or after March 1, 2020, in 
        response to COVID-19 to pay for the cash refunds under 
        subsection (a), including retroactive refunds under paragraph 
        (3) of such subsection.
            ``(2) Limitation.--A covered carrier may not use amounts 
        appropriated under section 4112 of the Coronavirus Economic 
        Stabilization Act of 2020 (title IV of division A of the 
        Coronavirus Aid, Relief, and Economic Security Act (Public Law 
        116-136)) to pay for the cash refunds under subsection (a), 
        including retroactive refunds under paragraph (3) of such 
        subsection.
    ``(c) Disclosure.--
            ``(1) Prior to purchase.--Prior to the sale of a ticket for 
        passenger to take a covered flight, a covered carrier or ticket 
        agent shall disclose, in writing in written or electronic 
        communication, that the passenger has a right to cancel their 
        ticket at any time for any reason and receive a full cash 
        refund.
            ``(2) Cancelled or significantly delayed flight.--In the 
        case of a covered carrier or ticket agent who sells a ticket 
        for a passenger to take a covered flight, if such flight is 
        canceled or significantly delayed (as defined by the Secretary 
        of Transportation) by the covered carrier or such ticket is 
        canceled by the passenger at least 48 hours before the 
        scheduled departure of the flight, the covered carrier or 
        ticket agent shall disclose, in writing in written or 
        electronic communication, that the passenger has a right to 
        receive a full cash refund for their ticket.
            ``(3) Requirements for disclosure.--Any written or 
        electronic disclosure under paragraph (1) or (2) shall be in a 
        clear and conspicuous format.
    ``(d) Definitions.--In this section:
            ``(1) Air carrier, foreign air carrier, ticket agent, and 
        united states.--The terms `air carrier, foreign air carrier, 
        ticket agent, and United States' have the meanings given those 
        terms in section 40102.
            ``(2) Covered carrier.--The term `covered carrier' means--
                    ``(A) any passenger air carrier that had an 
                operating revenue in 2018 that exceeded $1,500,000,000 
                according to the Bureau of Transportation Statistics; 
                or
                    ``(B) any passenger foreign air carrier operating a 
                flight to or from the United States.
            ``(3) Covered flight.--The term `covered flight' means a 
        flight of a covered carrier that is scheduled to depart from, 
        or arrive at, an airport located in the United States.''.
    (b) Enforcement.--Section 46301 of title 49, United States Code, is 
amended by adding at the end the following new subsection:
    ``(j) Penalties Relating to Cash Refunds for Canceled Airline 
Flights and Tickets.-- An air carrier or ticket agent that violates 
section 41727 shall be liable to the Government for a civil penalty of 
$1,000 for each violation.''.
    (c) Clerical Amendment.--The analysis for chapter 417 of title 49, 
United States Code, is amended by adding at the end the following:

``41727. Cash refunds for canceled airline flights and tickets.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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