Text of H.R. 2926
To preserve the continued viability of the United States air transportation
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 `Air Transportation Safety and System
TITLE I--AIRLINE STABILIZATION
SEC. 101. AVIATION DISASTER RELIEF.
(a) IN GENERAL- Notwithstanding any other provision of law, the President
shall take the following actions to compensate air carriers for losses
incurred by the air carriers 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,
issue Federal credit instruments to air carriers that do not, in the
aggregate, exceed $10,000,000,000 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 air carriers in an aggregate amount equal to $5,000,000,000
(A) direct losses incurred beginning on September 11, 2001, by air
carriers as a result of any Federal ground stop order issued by the
Secretary of Transportation or any subsequent order which continues or
renews such a stoppage; and
(B) the incremental losses incurred beginning September 11, 2001, and
ending December 31, 2001, by air carriers as a direct result of such
(b) EMERGENCY DESIGNATION- Congress designates the amount of new budget
authority and outlays in all fiscal years resulting from this title as an
emergency requirement 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 transmitted by
the President to Congress.
SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD.
(a) DEFINITIONS- In this section, the following definitions apply:
(1) BOARD- The term `Board' means the Air Transportation Stabilization Board
established under subsection (b).
(2) FINANCIAL OBLIGATION- The term `financial obligation' means any note,
bond, debenture, or other debt obligation issued by an obligor in connection
with financing under this section and section 101(a)(1).
(3) LENDER- The term `lender' means any non-Federal qualified institutional
buyer (as defined by section 230.144A(a) of title 17, Code of Federal
Regulations (or any successor regulation) known as Rule 144A(a) of the
Securities and Exchange Commission and issued under the Security Act of
(A) a qualified retirement plan (as defined in section 4974(c) of the
Internal Revenue Code of 1986 (26 U.S.C. 4974(c)) that is a qualified
institutional buyer; and
(B) a governmental plan (as defined in section 414(d) of the Internal
Revenue Code of 1986 (26 U.S.C. 414(d)) that is a qualified institutional
(4) OBLIGOR- The term `obligor' means a party primarily liable for payment
of the principal of or interest on a Federal credit instrument, which party
may be a corporation, partnership, joint venture, trust, or governmental
entity, agency, or instrumentality.
(b) AIR TRANSPORTATION STABILIZATION BOARD-
(1) ESTABLISHMENT- There is established a board (to be known as the `Air
Transportation Stabilization Board') to review and decide on applications
for Federal credit instruments under section 101(a)(1).
(2) COMPOSITION- The Board shall consist of--
(A) the Secretary of Transportation or the designee of the Secretary;
(B) the Chairman of the Board of Governors of the Federal Reserve System,
or the designee of the Chairman, who shall be the Chair of the Board;
(C) the Secretary of the Treasury or the designee of the Secretary; and
(D) the Comptroller General of the United States, or the designee of the
Comptroller General, as a nonvoting member of the Board.
(c) FEDERAL CREDIT INSTRUMENTS-
(1) IN GENERAL- The Board may enter into agreements with 1 or more obligors
to issue Federal credit instruments under section 101(a)(1) if the Board
determines, in its discretion, that--
(A) the obligor is an air carrier for which credit is not reasonably
available at the time of the transaction;
(B) the intended obligation by the obligor is prudently incurred; and
(C) such agreement is a necessary part of maintaining a safe, efficient,
and viable commercial aviation system in the United States.
(2) TERMS AND LIMITATIONS-
(A) FORMS; TERMS AND CONDITIONS- A Federal credit instrument shall be
issued under section 101(a)(1) in such form and on such terms and
conditions and contain such covenants, representatives, warranties, and
requirements (including requirements for audits) as the Board determines
(B) 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
regulations setting forth procedures for application and minimum
requirements, which may be supplemented by the Board in its discretion,
for the issuance of Federal credit instruments under section 101(a)(1).
(d) FINANCIAL PROTECTION OF GOVERNMENT-
(1) IN GENERAL- To the extent feasible and practicable, the Board shall
ensure that the Government is compensated for the risk assumed in making
guarantees under this title.
(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 Government under this
title, the Board is authorized to enter into contracts under which the
Government, contingent on the financial success of the participating
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
(3) DEPOSIT IN TREASURY- All amounts collected by the Secretary of the
Treasury under this subsection shall be deposited in the Treasury as
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 described in section 101(a)(2) that the air carrier demonstrates 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 compensation 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
(A) flights involving passenger-only or combined passenger and cargo
transportation, the product 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 transportation, the product 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
(c) PAYMENTS- The President may provide compensation to air carriers under
section 101(a)(2) in 1 or more payments up to the amount authorized by this
SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.
(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 period
beginning September 11, 2001, and ending September 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 compensation which exceeds,
during any 12 consecutive months of such 2-year period, the total
compensation 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 employment 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 section, the term `total compensation'
includes salary, bonuses, awards of stock, and other financial benefits
provided 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 essential air service program under subchapter II
of chapter 417 of title 49, United States Code, $120,000,000 for fiscal year
(c) SECRETARIAL OVERSIGHT-
(1) IN GENERAL- Notwithstanding any other provision of law, the Secretary is
authorized to require an air carrier receiving direct financial assistance
under this Act to maintain scheduled air service to any point served by that
carrier before September 11, 2001.
(2) AGREEMENTS- In applying paragraph (1), the Secretary may require air
carriers receiving direct financial assistance under this Act to enter into
agreements which will ensure, to the maximum extent practicable, that all
communities that had scheduled air service before September 11, 2001,
continue to receive adequate air transportation service.
SEC. 106. REPORTS.
(a) REPORT- Not later than February 1, 2001, the President shall transmit to
the Committee on Transportation and Infrastructure, the Committee on
Appropriations, and the Committee on the Budget of the House of
Representatives and the Committee on Commerce, Science, and Transportation,
the Committee on Appropriations, 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 principal of and interest on a loan or other debt obligation
issued by an obligor and funded by a lender.
(3) INCREMENTAL LOSS- The term `incremental loss' does not include any loss
that the President determines would have been incurred if the terrorist
attacks on the United States that occurred on September 11, 2001, had not
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 inserting `subsection (c)'; and
(B) by striking `foreign-flag aircraft--' and all that follows through the
period at the end of subparagraph (B) and inserting `foreign-flag
(2) by redesignating subsections (b), (c), and (d) as subsections (c), (d),
and (e), respectively;
(3) by inserting after subsection (a) the following:
`(b) REIMBURSEMENT OF INSURANCE COST INCREASES-
`(1) IN GENERAL- The Secretary may reimburse 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 damage 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 determine. Such
reimbursement is subject to subsections (a)(2), (c), and (d) of this section
and to section 44303.
`(2) PAYMENT FROM REVOLVING FUND- A reimbursement 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 reimbursement
under this subsection as the Secretary may deem appropriate in the interest
of air commerce.
`(4) TERMINATION OF AUTHORITY- The authority to reimburse air carriers under
this subsection shall expire 180 days after the date of enactment of this
(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';
(B) in the second sentence--
(i) by inserting `or the reimbursement' before `only after deciding';
(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 inserting `or reimbursing an
air carrier' before `under this chapter'.
(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 enactment 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 regarding 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 aggregate, 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 carrier 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),
(2) by inserting after subsection (a) the following:
`(b) ALLOWANCES IN SETTING PREMIUM RATES FOR REINSURANCE- In setting premium
rates for reinsurance, the Secretary may make allowances to the insurance
carrier for expenses incurred in providing services and facilities that the
Secretary considers good business practices, except for payments by the air
carrier for the stimulation or solicitation of insurance business.'.
(e) CONFORMING AMENDMENT- Section 44305(b) of such title is amended by
striking `44302(b)' and inserting `44302(c)'.
SEC. 202. EXTENSION OF PROVISIONS TO VENDORS, AGENTS, AND SUBCONTRACTORS OF
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
subcontractors of air carriers. For the 180-day period beginning on the date
of enactment of this Act, the Secretary may extend 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 DEPOSITS; TREATMENT OF LOSS
(a) EXTENSION OF DUE DATE FOR EXCISE TAX DEPOSITS-
(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
(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 public.
(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
transportation 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 Victim Compensation Fund of
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
(3) CLAIMANT- The term `claimant' means an individual filing a claim for
compensation under section 405(a)(1).
(4) COLLATERAL SOURCE- The term `collateral source' means all collateral
sources, including life insurance, pension funds, death benefit programs,
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
related to employment, medical expense loss, replacement 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
applicable State law.
(6) ELIGIBLE INDIVIDUAL- The term `eligible individual' means an individual
determined to be eligible for compensation under section 405(c).
(7) NONECONOMIC LOSSES- The term `noneconomic losses' means losses for
physical and emotional pain, suffering, inconvenience, physical impairment,
mental anguish, disfigurement, loss of enjoyment of life, loss of society
and companionship, loss of consortium (other than loss of domestic service),
hedonic damages, injury to reputation, and all other nonpecuniary losses of
any kind or nature.
(8) SPECIAL MASTER- The term `Special Master' means the Special Master
appointed under section 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 terrorist-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 General, shall--
(1) administer the compensation program established 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 COMPENSATION.
(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.
(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 concerning the physical harm that the
claimant suffered, or in the case of a claim filed on behalf of a
decedent information confirming 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
noneconomic losses that the claimant suffered as a result of such
(iii) information regarding collateral sources of compensation the
claimant has received or is entitled to receive as a result of such
(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
(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 individual 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
noneconomic 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 subsection (a), the Special Master shall complete a review,
make a determination, and provide written notice 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 judicial review.
(4) RIGHTS OF CLAIMANT- A claimant in a review under paragraph (1) shall
(A) the right to be represented by an attorney;
(B) the right to present evidence, including the presentation of witnesses
and documents; and
(C) any other due process rights determined appropriate by the Special
(5) NO PUNITIVE DAMAGES- The Special Master 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 determined 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
(1) IN GENERAL- A claimant shall be determined to be an eligible individual
for purposes of this subsection if the Special Master determines that such
(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--
(i) was present at the World Trade Center, (New York, New York), the
Pentagon (Arlington, Virginia), or the site of the aircraft crash at
Shanksville, Pennsylvania 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 Airlines 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 representative of such individual shall not be
eligible to receive compensation under this title; or
(C) in the case of a decedent who is an individual described in
subparagraph (A) or (B), the personal representative of the decedent who
files a claim on behalf of the decedent.
(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 submission of a claim under this title, the
claimant waives the right to file a civil action (or to be a party to an
action) in any Federal or State court for damages sustained as a result
of the terrorist-related aircraft crashes of September 11, 2001. The
preceding sentence does not apply to a civil action to recover
collateral source obligations.
(ii) PENDING ACTIONS- In the case of an individual who is a party to a
civil action described in clause (i), such individual 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 Master regarding the amount of compensation due a
claimant under this title, the Special Master shall authorize payment to such
claimant of the amount determined with respect 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.
(1) IN GENERAL- The Attorney General is authorized to accept such amounts as
may be contributed by individuals, business concerns, or other entities 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 paragraph (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 provision of law, liability for all
claims, whether for compensatory or punitive damages, arising from the
terrorist-related aircraft crashes of September 11, 2001, against any air
carrier shall not be in an amount greater than the limits 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 exclusive 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 actions
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.
TITLE V--AIR TRANSPORTATION SAFETY
SEC. 501. INCREASED AIR TRANSPORTATION SAFETY.
Congress affirms the President's decision to spend $3,000,000,000 on airline
safety and security in conjunction with this Act in order to restore public
confidence in the airline industry.
SEC. 502. CONGRESSIONAL COMMITMENT.
Congress is committed to act expeditiously, in consultation with the Secretary
of Transportation, to strengthen airport security and take further measures to
enhance the security of air travel.
SEC. 601. SEPARABILITY.
If any provision of this Act (including any amendment made by this Act) or the
application thereof to any person or circumstance is held invalid, the
remainder of this Act (including any amendment made by this Act) and the
application thereof to other persons or circumstances shall not be affected