[DOCID: f:publ071.107]

[[Page 115 STAT. 597]]

Public Law 107-71
107th Congress

                                 An Act


 To improve aviation security, and for other purposes. <<NOTE: Nov. 19,
                          2001 -  [S. 1447]>>

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Aviation and Transportation
Security Act.>>  assembled,

SECTION 1. SHORT TITLE. <<NOTE: 49 USC 40101 note.>>

    This Act may be cited as the ``Aviation and Transportation Security
Act''.

                       TITLE I--AVIATION SECURITY

SEC. 101. TRANSPORTATION SECURITY ADMINISTRATION.

    (a) In General.--Chapter 1 of title 49, United States Code, is
amended by adding at the end the following:

``Sec. 114. Transportation Security Administration

    ``(a) In General.--The Transportation Security Administration shall
be an administration of the Department of Transportation.
    ``(b) Under Secretary.--
            ``(1) Appointment.--The head of the Administration shall be
        the Under Secretary of Transportation for Security. The Under
        Secretary shall be appointed by the President, by and with the
        advice and consent of the Senate.
            ``(2) Qualifications.--The Under Secretary must--
                    ``(A) be a citizen of the United States; and
                    ``(B) have experience in a field directly related to
                transportation or security.
            ``(3) Term.--The term of office of an individual appointed
        as the Under Secretary shall be 5 years.

    ``(c) Limitation on Ownership of Stocks and Bonds.--The Under
Secretary may not own stock in or bonds of a transportation or security
enterprise or an enterprise that makes equipment that could be used for
security purposes.
    ``(d) Functions.--The Under Secretary shall be responsible for
security in all modes of transportation, including--
            ``(1) carrying out chapter 449, relating to civil aviation
        security, and related research and development activities; and
            ``(2) security responsibilities over other modes of
        transportation that are exercised by the Department of
        Transportation.

    ``(e) Screening Operations.--The Under Secretary shall--
            ``(1) be responsible for day-to-day Federal security
        screening operations for passenger air transportation and
        intrastate air transportation under sections 44901 and 44935;

[[Page 115 STAT. 598]]

            ``(2) develop standards for the hiring and retention of
        security screening personnel;
            ``(3) train and test security screening personnel; and
            ``(4) be responsible for hiring and training personnel to
        provide security screening at all airports in the United States
        where screening is required under section 44901, in consultation
        with the Secretary of Transportation and the heads of other
        appropriate Federal agencies and departments.

    ``(f) Additional Duties and Powers.--In addition to carrying out the
functions specified in subsections (d) and (e), the Under Secretary
shall--
            ``(1) receive, assess, and distribute intelligence
        information related to transportation security;
            ``(2) assess threats to transportation;
            ``(3) develop policies, strategies, and plans for dealing
        with threats to transportation security;
            ``(4) make other plans related to transportation security,
        including coordinating countermeasures with appropriate
        departments, agencies, and instrumentalities of the United
        States Government;
            ``(5) serve as the primary liaison for transportation
        security to the intelligence and law enforcement communities;
            ``(6) on a day-to-day basis, manage and provide operational
        guidance to the field security resources of the Administration,
        including Federal Security Managers as provided by section
        44933;
            ``(7) enforce security-related regulations and requirements;
            ``(8) identify and undertake research and development
        activities necessary to enhance transportation security;
            ``(9) inspect, maintain, and test security facilities,
        equipment, and systems;
            ``(10) ensure the adequacy of security measures for the
        transportation of cargo;
            ``(11) oversee the implementation, and ensure the adequacy,
        of security measures at airports and other transportation
        facilities;
            ``(12) require background checks for airport security
        screening personnel, individuals with access to secure areas
        of airports, and other transportation security personnel;
            ``(13) work in conjunction with the Administrator of the
        Federal Aviation Administration with respect to any actions or
        activities that may affect aviation safety or air carrier
        operations;
            ``(14) work with the International Civil Aviation
        Organization and appropriate aeronautic authorities of foreign
        governments under section 44907 to address security concerns on
        passenger flights by foreign air carriers in foreign air
        transportation; and
            ``(15) carry out such other duties, and exercise such other
        powers, relating to transportation security as the Under
        Secretary considers appropriate, to the extent authorized by
        law.

    ``(g) National Emergency Responsibilities.--
            ``(1) In general.--Subject to the direction and control of
        the Secretary, the Under Secretary, during a national emergency,
        shall have the following responsibilities:

[[Page 115 STAT. 599]]

                    ``(A) To coordinate domestic transportation,
                including aviation, rail, and other surface
                transportation, and maritime transportation (including
                port security).
                    ``(B) To coordinate and oversee the transportation-
                related responsibilities of other departments and
                agencies of the Federal Government other than the
                Department of Defense and the military departments.
                    ``(C) To coordinate and provide notice to other
                departments and agencies of the Federal Government, and
                appropriate agencies of State and local governments,
                including departments and agencies for transportation,
                law enforcement, and border control, about threats to
                transportation.
                    ``(D) To carry out such other duties, and exercise
                such other powers, relating to transportation during a
                national emergency as the Secretary shall prescribe.
            ``(2) Authority of other departments and agencies.--The
        authority of the Under Secretary under this subsection shall not
        supersede the authority of any other department or agency of the
        Federal Government under law with respect to transportation or
        transportation-related matters, whether or not during a national
        emergency.
            ``(3) Circumstances.--The Secretary shall prescribe the
        circumstances constituting a national emergency for purposes of
        this subsection.

    ``(h) Management of Security Information.--In consultation with the
Transportation Security Oversight Board, the Under Secretary shall--
            ``(1) enter into memoranda of understanding with Federal
        agencies or other entities to share or otherwise cross-check as
        necessary data on individuals identified on Federal agency
        databases who may pose a risk to transportation or national
        security;
            ``(2) establish procedures for notifying the Administrator
        of the Federal Aviation Administration, appropriate State and
        local law enforcement officials, and airport or airline security
        officers of the identity of individuals known to pose, or
        suspected of posing, a risk of air piracy or terrorism or a
        threat to airline or passenger safety;
            ``(3) in consultation with other appropriate Federal
        agencies and air carriers, establish policies and procedures
        requiring air carriers--
                    ``(A) to use information from government agencies to
                identify individuals on passenger lists who may be a
                threat to civil aviation or national security; and
                    ``(B) if such an individual is identified, notify
                appropriate law enforcement agencies, prevent the
                individual from boarding an aircraft, or take other
                appropriate action with respect to that individual; and
            ``(4) consider requiring passenger air carriers to share
        passenger lists with appropriate Federal agencies for the
        purpose of identifying individuals who may pose a threat to
        aviation safety or national security.

    ``(i) View of NTSB.--In taking any action under this section that
could affect safety, the Under Secretary shall give great weight to the
timely views of the National Transportation Safety Board.
    ``(j) Acquisitions.--
            ``(1) In general.--The Under Secretary is authorized--

[[Page 115 STAT. 600]]

                    ``(A) to acquire (by purchase, lease, condemnation,
                or otherwise) such real property, or any interest
                therein, within and outside the continental United
                States, as the Under Secretary considers necessary;
                    ``(B) to acquire (by purchase, lease, condemnation,
                or otherwise) and to construct, repair, operate, and
                maintain such personal property (including office space
                and patents), or any interest therein, within and
                outside the continental United States, as the Under
                Secretary considers necessary;
                    ``(C) to lease to others such real and personal
                property and to provide by contract or otherwise for
                necessary facilities for the welfare of its employees
                and to acquire, maintain, and operate equipment for
                these facilities;
                    ``(D) to acquire services, including such personal
                services as the Secretary determines necessary, and to
                acquire (by purchase, lease, condemnation, or otherwise)
                and to construct, repair, operate, and maintain research
                and
                testing sites and facilities; and
                    ``(E) in cooperation with the Administrator of the
                Federal Aviation Administration, to utilize the research
                and development facilities of the Federal Aviation
                Administration.
            ``(2) Title.--Title to any property or interest therein
        acquired pursuant to this subsection shall be held by the
        Government of the United States.

    ``(k) Transfers of Funds.--The Under Secretary is authorized to
accept transfers of unobligated balances and unexpended balances of
funds appropriated to other Federal agencies (as such term is defined in
section 551(1) of title 5) to carry out functions transferred, on or
after the date of enactment of the Aviation and Transportation Security
Act, by law to the Under Secretary.
    ``(l) Regulations.--
            ``(1) In general.--The Under Secretary is authorized to
        issue, rescind, and revise such regulations as are necessary to
        carry out the functions of the Administration.
            ``(2) Emergency procedures.--
                    ``(A) In general.--Notwithstanding any other
                provision of law or executive order (including an
                executive order requiring a cost-benefit analysis), if
                the Under Secretary determines that a regulation or
                security directive must be issued immediately in order
                to protect transportation security, the Under Secretary
                shall issue the regulation or security directive without
                providing notice or an opportunity for comment and
                without prior approval of the Secretary.
                    ``(B) Review by transportation security oversight
                board.--Any regulation or security directive issued
                under this paragraph shall be subject to review by the
                Transportation Security Oversight Board established
                under section 115. Any regulation or security directive
                issued under this paragraph shall remain effective
                unless disapproved by the Board or rescinded by the
                Under Secretary.
            ``(3) Factors to consider.--In determining whether to issue,
        rescind, or revise a regulation under this section, the Under
        Secretary shall consider, as a factor in the final
        determination, whether the costs of the regulation are excessive
        in relation to the enhancement of security the regulation will

[[Page 115 STAT. 601]]

        provide. The Under Secretary may waive requirements for an
        analysis that estimates the number of lives that will be saved
        by the regulation and the monetary value of such lives if the
        Under Secretary determines that it is not feasible to make such
        an estimate.
            ``(4) Airworthiness objections by faa.--
                    ``(A) In general.--The Under Secretary shall not
                take an aviation security action under this title if the
                Administrator of the Federal Aviation Administration
                notifies the Under Secretary that the action could
                adversely affect the airworthiness of an aircraft.
                    ``(B) Review by secretary.--Notwithstanding
                subparagraph (A), the Under Secretary may take such an
                action, after receiving a notification concerning the
                action from the Administrator under subparagraph (A), if
                the Secretary of Transportation subsequently approves
                the action.

    ``(m) Personnel and Services; Cooperation by Under Secretary.--
            ``(1) Authority of under secretary.--In carrying out the
        functions of the Administration, the Under Secretary shall have
        the same authority as is provided to the Administrator of the
        Federal Aviation Administration under subsections (l) and (m) of
        section 106.
            ``(2) Authority of agency heads.--The head of a Federal
        agency shall have the same authority to provide services,
        supplies, equipment, personnel, and facilities to the Under
        Secretary as the head has to provide services, supplies,
        equipment, personnel, and facilities to the Administrator of the
        Federal Aviation Administration under section 106(m).

    ``(n) Personnel Management System.--The personnel management system
established by the Administrator of the Federal Aviation Administration
under section 40122 shall apply to employees of the Transportation
Security Administration, or, subject to the requirements of such
section, the Under Secretary may make such modifications to the
personnel management system with respect to such employees as the Under
Secretary considers appropriate, such as adopting aspects of other
personnel systems of the Department of Transportation.
    ``(o) Acquisition Management System.--The acquisition management
system established by the Administrator of the Federal Aviation
Administration under section 40110 shall apply to acquisitions of
equipment, supplies, and materials by the Transportation Security
Administration, or, subject to the requirements of such section, the
Under Secretary may make such modifications to the acquisition
management system with respect to such acquisitions of equipment,
supplies, and materials as the Under Secretary considers appropriate,
such as adopting aspects of other acquisition management systems of the
Department of Transportation.
    ``(p) Authority of Inspector General.--The Transportation Security
Administration shall be subject to the Inspector General Act of 1978 (5
U.S.C. App.) and other laws relating to the authority of the Inspector
General of the Department of Transportation.
    ``(q) Law Enforcement Powers.--
            ``(1) In general.--The Under Secretary may designate an
        employee of the Transportation Security Administration to serve
        as a law enforcement officer.

[[Page 115 STAT. 602]]

            ``(2) Powers.--While engaged in official duties of the
        Administration as required to fulfill the responsibilities under
        this section, a law enforcement officer designated under
        paragraph (1) may--
                    ``(A) carry a firearm;
                    ``(B) make an arrest without a warrant for any
                offense against the United States committed in the
                presence of the officer, or for any felony cognizable
                under the laws of the United States if the officer has
                probable cause to believe that the person to be arrested
                has committed or is committing the felony; and
                    ``(C) seek and execute warrants for arrest or
                seizure of evidence issued under the authority of the
                United States upon probable cause that a violation has
                been committed.
            ``(3) Guidelines on exercise of authority.--The
        authority provided by this subsection shall be exercised in
        accordance with guidelines prescribed by the Under Secretary,
        in consultation with the Attorney General of the United States,
        and shall include adherence to the Attorney General's policy
        on use of deadly force.
            ``(4) Revocation or suspension of authority.--The
        powers authorized by this subsection may be rescinded or
        suspended should the Attorney General determine that the Under
        Secretary has not complied with the guidelines prescribed in
        paragraph (3) and conveys the determination in writing to the
        Secretary of Transportation and the Under Secretary.

    ``(r) Authority To Exempt.--The Under Secretary may grant an
exemption from a regulation prescribed in carrying out this section if
the Under Secretary determines that the exemption is in the public
interest.''.
    (b) Conforming Amendment.--The analysis for chapter 1 of such title
is amended by adding at the end the following:

``114. Transportation Security Administration.''.

    (c) Position of Under Secretary in Executive Schedule.--
            (1) In general.--Section 5313 of title 5, United States
        Code, is amended by adding at the end the following:
            ``The Under Secretary of Transportation for Security.''.
            (2) <<NOTE:  5 USC 5313 note.>> Bonus eligibility.--In
        addition to the annual rate of pay authorized by section 5313 of
        title 5, United States Code, the Under Secretary may receive a
        bonus for any calendar year not to exceed 30 percent of the
        annual rate of pay, based on the Secretary's evaluation of the
        Under Secretary's performance.
            (3) Conforming change.--Section 106(r)(2)(A) of title 49,
        United States Code, is amended to read as follows:
                    ``(A) In general.--The Chief Operating Officer shall
                be paid at an annual rate of basic pay to be determined
                by the Administrator, with the approval of the Air
                Traffic Services Subcommittee of the Aviation Management
                Advisory Council. The annual rate may not exceed the
                annual compensation paid under section 102 of title 3.
                The Chief Operating Officer shall be subject to the
                post-employment provisions of section 207 of title 18 as
                if the position of Chief Operating Officer were
                described in section 207(c)(2)(A)(i) of that title.''.

[[Page 115 STAT. 603]]

    (d) Cooperation With Other Agencies.--The last sentence of section
106(m) of such title is amended by striking ``supplies and'' and
inserting ``supplies, personnel, services, and''.
    (e) Security and Research and Development Activities.--Section 40119
of such title is amended--
            (1) in subsection (a) by striking ``Administrator of the
        Federal Aviation Administration'' and inserting ``Under
        Secretary of Transportation for Security'';
            (2) in subsections (b) and (c) by striking ``Administrator''
        each place it appears and inserting ``Under Secretary''; and
            (3) in subsection (b)(1)(C) by striking ``air''.

    (f) References to FAA in Chapter 449.--Chapter 449 of such title is
amended--
            (1) in section 44904(b)(5) by striking ``the
        Administration'' and inserting ``the Transportation Security
        Administration'';
            (2) in the second sentence of section 44913(a)(1) by
        striking ``of the Administration'' and inserting ``of the
        Transportation Security Administration'';
            (3) in section 44916(a)--
                    (A) in the first sentence by striking
                ``Administrator'' and inserting ``Under Secretary of
                Transportation for Security''; and
                    (B) in the second sentence by striking
                ``Administration'' and inserting ``Transportation
                Security Administration'';
            (4) in each of sections 44933(a) and 44934(b) by striking
        ``Assistant Administrator for Civil Aviation Security'' and
        inserting ``Under Secretary'';
            (5) in section 44934(b)(1) by striking ``Assistant
        Administrator'' and inserting ``Under Secretary'';
            (6) by striking sections 44931 and 44932 and the items
        relating to such sections in the analysis for such chapter;
            (7) <<NOTE: 49 USC 44901-44906, 44911-44916, 44934-44938.>>
        by striking ``Administrator'' each place it appears in such
        chapter (except in subsections (f) and (h) of section 44936) and
        inserting ``Under Secretary'';
            (8) <<NOTE: 49 USC 44903.>>  by striking ``Administrator's''
        each place it appears in such chapter and inserting ``Under
        Secretary's''; and
            (9) <<NOTE: 49 USC 44902-44906, 44911-44915, 44934-
        44938.>> by striking ``of the Federal Aviation Administration''
        each place it appears in such chapter (except in section
        44936(f)) and inserting ``of Transportation for Security''.

    (g) <<NOTE: 49 USC 44901 note.>> Transition Provisions.--
            (1) Schedule for assumption of civil aviation security
        functions.-- <<NOTE: Deadline.>> Not later than 3 months after
        the date of enactment of this Act, the Under Secretary of
        Transportation for Security shall assume civil aviation security
        functions and responsibilities under chapter 449 of title 49,
        United States Code, as amended by this Act, in accordance with a
        schedule to be developed by the Secretary of Transportation, in
        consultation with air carriers, foreign air carriers, and the
        Administrator of the Federal Aviation
        Administration. <<NOTE: Notice.>>  The Under Secretary shall
        publish an appropriate notice of the transfer of such security
        functions and responsibilities before assuming the functions and
        responsibilities.
            (2) Assumption of contracts.--As of the date specified in
        paragraph (1), the Under Secretary may assume the rights and
        responsibilities of an air carrier or foreign air carrier
        contract for provision of passenger screening services at
        airports in the United States described in section 44903(c),
        subject to

[[Page 115 STAT. 604]]

        payment of adequate compensation to parties to the contract, if
        any.
            (3) Assignment of contracts.--
                    (A) In general.--Upon request of the Under
                Secretary, an air carrier or foreign air carrier
                carrying out a screening or security function under
                chapter 449 of title 49, United States Code, may enter
                into an agreement with the Under Secretary to transfer
                any contract the carrier has entered into with respect
                to carrying out the function, before the Under Secretary
                assumes responsibility for the function.
                    (B) Schedule.--The Under Secretary may enter into an
                agreement under subparagraph (A) as soon as possible,
                but not later than 90 days after the date of enactment
                of this Act. The Under Secretary may enter into such an
                agreement for one 180-day period and may extend such
                agreement for one 90-day period if the Under Secretary
                determines it necessary.
            (4) Transfer of ownership.--In recognition of the assumption
        of the financial costs of security screening of passengers and
        property at airports, and as soon as practical after the date of
        enactment of this Act, air carriers may enter into agreements
        with the Under Secretary to transfer the ownership, at no cost
        to the United States Government, of any personal property,
        equipment, supplies, or other material associated with such
        screening, regardless of the source of funds used to acquire the
        property, that the Secretary determines to be useful for the
        performance of security screening of passengers and property at
        airports.
            (5) Performance of under secretary's functions
        during interim period.--Until the Under Secretary takes
        office, the functions of the Under Secretary that relate to
        avia-
        tion security may be carried out by the Secretary or the Sec-
        retary's designee.

SEC. 102. TRANSPORTATION SECURITY OVERSIGHT BOARD.

    (a) In General.--Chapter 1 of title 49, United States Code, is
amended by adding at the end the following:

``Sec. 115. Transportation Security Oversight Board

    ``(a) In General.-- <<NOTE: Establishment.>> There is established in
the Department of Transportation a board to be known as the
`Transportation Security Oversight Board'.

    ``(b) Membership.--
            ``(1) Number and appointment.--The Board shall be composed
        of 7 members as follows:
                    ``(A) The Secretary of Transportation, or the
                Secretary's designee.
                    ``(B) The Attorney General, or the Attorney
                General's designee.
                    ``(C) The Secretary of Defense, or the Secretary's
                designee.
                    ``(D) The Secretary of the Treasury, or the
                Secretary's designee.
                    ``(E) The Director of the Central Intelligence
                Agency, or the Director's designee.
                    ``(F) One member appointed by the President to
                represent the National Security Council.

[[Page 115 STAT. 605]]

                    ``(G) One member appointed by the President to
                represent the Office of Homeland Security.
            ``(2) Chairperson.--The Chairperson of the Board shall be
        the Secretary of Transportation.

    ``(c) Duties.--The Board shall--
            ``(1) review and ratify or disapprove any regulation or
        security directive issued by the Under Secretary of
        Transportation for security under section 114(l)(2) within 30
        days after the date of issuance of such regulation or directive;
            ``(2) facilitate the coordination of intelligence, security,
        and law enforcement activities affecting transportation;
            ``(3) facilitate the sharing of intelligence, security, and
        law enforcement information affecting transportation among
        Federal agencies and with carriers and other transportation pro-
        viders as appropriate;
            ``(4) explore the technical feasibility of developing a
        common database of individuals who may pose a threat to
        transportation or national security;
            ``(5) review plans for transportation security;
            ``(6) make recommendations to the Under Secretary
        regarding matters reviewed under paragraph (5).

    ``(d) Quarterly Meetings.--The Board shall meet at least quarterly.
    ``(e) Consideration of Security Information.--A majority of the
Board may vote to close a meeting of the Board to the public, except
that meetings shall be closed to the public whenever classified,
sensitive security information, or information protected in accordance
with section 40119(b), will be discussed.''.
    (b) Policies and Procedures.--Section 44911(b) of such title is
amended by striking ``international''.
    (c) Strategic Planning.--Section 44911(c) of such title is amended
by striking ``consider placing'' and inserting ``place''.
    (d) Conforming Amendment.--The analysis for chapter 1 of such title
is amended by adding at the end the following:

``115. Transportation Security Oversight Board.''.

SEC. 103. FEDERAL SECURITY MANAGERS.

    Section 44933 of title 49, United States Code, is amended to read as
follows:

``Sec. 44933. Federal Security Managers

    ``(a) Establishment, Designation, and Stationing.--The Under
Secretary of Transportation for Security shall establish the position of
Federal Security Manager at each airport in the United States described
in section 44903(c). The Under Secretary shall designate individuals as
Managers for, and station those Managers at, those airports.
    ``(b) Duties and Powers.--The Manager at each airport shall--
            ``(1) oversee the screening of passengers and property at
        the airport; and
            ``(2) carry out other duties prescribed by the Under
        Secretary.''.

SEC. 104. IMPROVED FLIGHT DECK INTEGRITY MEASURES. <<NOTE: 49 USC 44903
            note.>>

    (a) In General.--As soon as possible after the date of enactment of
this Act, the Administrator of the Federal Aviation Administration
shall--

[[Page 115 STAT. 606]]

            (1) issue an order (without regard to the provisions of
        chapter 5 of title 5, United States Code)--
                    (A) prohibiting access to the flight deck of
                aircraft engaged in passenger air transportation or
                intrastate air transportation that are required to have
                a door between the passenger and pilot compartments
                under title 14, Code of Federal Regulations, except to
                authorized persons;
                    (B) requiring the strengthening of the flight deck
                door and locks on any such aircraft operating in air
                transportation or intrastate air transportation that has
                a rigid door in a bulkhead between the flight deck and
                the passenger area to ensure that the door cannot be
                forced open from the passenger compartment;
                    (C) requiring that such flight deck doors remain
                locked while any such aircraft is in flight except when
                necessary to permit access and egress by authorized
                persons; and
                    (D) prohibiting the possession of a key to any such
                flight deck door by any member of the flight crew who is
                not assigned to the flight deck; and
            (2) take such other action, including modification of safety
        and security procedures and flight deck redesign, as may be
        necessary to ensure the safety and security of the aircraft.

    (b) Implementation of Other Methods.--As soon as possible after such
date of enactment, the Administrator of the Federal Aviation
Administration may develop and implement methods--
            (1) to use video monitors or other devices to alert pilots
        in the flight deck to activity in the cabin, except that the use
        of such monitors or devices shall be subject to nondisclosure
        requirements applicable to cockpit video recordings under
        section 1114(c);
            (2) to ensure continuous operation of an aircraft
        transponder in the event of an emergency; and
            (3) to revise the procedures by which cabin crews of
        aircraft can notify flight deck crews of security breaches and
        other emergencies, including providing for the installation of
        switches or other devices or methods in an aircraft cabin to
        enable flight crews to discreetly notify the pilots in the case
        of a security breach occurring in the cabin.

    (c) Commuter Aircraft.--The Administrator shall investigate means of
securing the flight deck of scheduled passenger aircraft operating in
air transportation or intrastate air transportation that do not have a
rigid fixed door with a lock between the passenger compartment and the
flight deck and issue such an order as the Administrator deems
appropriate to ensure the inaccessibility, to the greatest extent
feasible, of the flight deck while the aircraft is so operating, taking
into consideration such aircraft operating in regions where there is
minimal threat to aviation security or national security.

SEC. 105. DEPLOYMENT OF FEDERAL AIR MARSHALS.

    (a) In General.--Subchapter I of chapter 449 of title 49, United
States Code, is amended by adding at the end the following:

``Sec. 44917. Deployment of Federal air marshals

    ``(a) In General.--The Under Secretary of Transportation for
Security under the authority provided by section 44903(d)--

[[Page 115 STAT. 607]]

            ``(1) may provide for deployment of Federal air marshals on
        every passenger flight of air carriers in air transportation or
        intrastate air transportation;
            ``(2) shall provide for deployment of Federal air marshals
        on every such flight determined by the Secretary to present high
        security risks;
            ``(3) shall provide for appropriate training, supervision,
        and equipment of Federal air marshals;
            ``(4) shall require air carriers providing flights described
        in paragraph (1) to provide seating for a Federal air marshal on
        any such flight without regard to the availability of seats on
        the flight and at no cost to the United States Government or the
        marshal;
            ``(5) may require air carriers to provide, on a space-
        available basis, to an off-duty Federal air marshal a seat on a
        flight to the airport nearest the marshal's home at no cost to
        the marshal or the United States Government if the marshal is
        traveling to that airport after completing his or her security
        duties;
            ``(6) may enter into agreements with Federal, State, and
        local agencies under which appropriately-trained law enforcement
        personnel from such agencies, when traveling on a flight of an
        air carrier, will carry a firearm and be prepared to assist
        Federal air marshals;
            ``(7) shall establish procedures to ensure that Federal air
        marshals are made aware of any armed or unarmed law enforcement
        personnel on board an aircraft; and
            ``(8) may appoint--
                    ``(A) an individual who is a retired law enforcement
                officer;
                    ``(B) an individual who is a retired member of the
                Armed Forces; and
                    ``(C) an individual who has been furloughed from an
                air carrier crew position in the 1-year period beginning
                on September 11, 2001,
        as a Federal air marshal, regardless of age, if the individual
        otherwise meets the background and fitness qualifications
        required for Federal air marshals.

    ``(b) Long Distance Flights.--In making the determination under
subsection (a)(2), nonstop, long distance flights, such as those
targeted on September 11, 2001, should be a priority.
    ``(c) Interim Measures.--Until the Under Secretary completes
implementation of subsection (a), the Under Secretary may use, after
consultation with and concurrence of the heads of other Federal agencies
and departments, personnel from those agencies and departments, on a
nonreimbursable basis, to provide air marshal service.''.
    (b) Conforming Amendment.--The analysis for chapter 449 of such
title is amended by adding after the item relating to section 44916 the
following:

``44917. Deployment of Federal air marshals.''.

    (c) Basic Pay Defined.--Section 8331(3)(E) of title 5, United States
Code, is amended to read as follows:
                    ``(E) availability pay--
                          ``(i) received by a criminal investigator
                      under section 5545a of this title; or

[[Page 115 STAT. 608]]

                          ``(ii) received after September 11, 2001, by a
                      Federal air marshal of the Department of
                      Transportation, subject to all restrictions and
                      earning limitations imposed on criminal
                      investigators under section 5545a;''.

SEC. 106. IMPROVED AIRPORT PERIMETER ACCESS SECURITY.

    (a) In General.--Section 44903 of title 49, United States Code, is
amended by adding at the end the following:
    ``(h) Improved Airport Perimeter Access Security.--
            ``(1) In general.--The Under Secretary, in consultation with
        the airport operator and law enforcement authorities, may order
        the deployment of such personnel at any secure area of the
        airport as necessary to counter the risk of criminal violence,
        the risk of aircraft piracy at the airport, the risk to air
        carrier aircraft operations at the airport, or to meet national
        security concerns.
            ``(2) Security of aircraft and ground access to secure
        areas.--In determining where to deploy such personnel, the Under
        Secretary shall consider the physical security needs of air
        traffic control facilities, parked aircraft, aircraft servicing
        equipment, aircraft supplies (including fuel), automobile
        parking facilities within airport perimeters or adjacent to
        secured facilities, and access and transition areas at airports
        served by other means of ground or water transportation.
            ``(3) Deployment of federal law enforcement per-
        sonnel.--The Secretary may enter into a memorandum of
        understanding or other agreement with the Attorney General
        or the head of any other appropriate Federal law enforcement
        agency to deploy Federal law enforcement personnel at an airport
        in order to meet aviation safety and security concerns.
            ``(4) Airport perimeter screening.--The Under
        Secretary--
                    ``(A) shall require, as soon as practicable after
                the date of enactment of this subsection, screening or
                inspection of all individuals, goods, property,
                vehicles, and other equipment before entry into a
                secured area of an airport in the United States
                described in section 44903(c);
                    ``(B) shall prescribe specific requirements for such
                screening and inspection that will assure at least the
                same level of protection as will result from screening
                of passengers and their baggage;
                    ``(C) shall establish procedures to ensure the
                safety and integrity of--
                          ``(i) all persons providing services with
                      respect to aircraft providing passenger air
                      transportation or intrastate air transportation
                      and facilities of such persons at an airport in
                      the United States described in section 44903(c);
                          ``(ii) all supplies, including catering and
                      passenger amenities, placed aboard such aircraft,
                      including the sealing of supplies to ensure easy
                      visual detection of tampering; and
                          ``(iii) all persons providing such supplies
                      and facilities of such persons;
                    ``(D) shall require vendors having direct access to
                the airfield and aircraft to develop security programs;
                and

[[Page 115 STAT. 609]]

                    ``(E) may provide for the use of biometric or other
                technology that positively verifies the identity of each
                employee and law enforcement officer who enters a secure
                area of an airport.''.

    (b) Small and Medium Airports.-- <<NOTE: 49 USC 44903 note.>>
            (1) Technical support and financial assistance.--The Under
        Secretary of Transportation for Security shall develop a plan
        to--
                    (A) provide technical support to airports, each of
                which had less than 1 percent of the total annual
                enplanements in the United States for the most recent
                calendar year for which data is available, to enhance
                security operations; and
                    (B) provide financial assistance to those airports
                to defray the costs of enhancing security.
            (2) Removal of certain restrictions.--
                    (A) Certification by operator.--If the operator of
                an airport described in paragraph (1), after
                consultation with the appropriate State and local law
                enforcement authorities, determines that safeguards are
                in place to sufficiently protect public safety, and so
                certifies in writing to the Under Secretary, then any
                security rule, order, or other directive restricting the
                parking of passenger vehicles shall not apply at that
                airport after the applicable time period specified in
                subparagraph (B), unless the Under Secretary, taking
                into account individual airport circumstances, notifies
                the airport operator that the safeguards in place do not
                adequately respond to specific security risks and that
                the restriction must be continued in order to ensure
                public safety.
                    (B) Countermand period.--The time period within
                which the Secretary may notify an airport operator,
                after receiving a certification under subparagraph (A),
                that a restriction must be continued in order to ensure
                public safety at the airport is--
                          (i) 15 days for a nonhub airport (as defined
                      in section 41714(h) of title 49, United States
                      Code);
                          (ii) 30 days for a small hub airport (as
                      defined in such section);
                          (iii) 60 days for a medium hub airport (as
                      defined in such section); and
                          (iv) 120 days for an airport that had at least
                      1 percent of the total annual enplanements in the
                      United States for the most recent calendar year
                      for which data is available.

    (c) Improvement of Secured-Area Access Control.--Section 44903(g)(2)
of title 49, United States Code, is amended--
            (1) by striking ``weaknesses by January 31, 2001;'' in
        subparagraph (A) and inserting ``weaknesses;'';
            (2) by striking subparagraph (D) and inserting the fol-
        lowing:
                    ``(D) on an ongoing basis, assess and test for
                compliance with access control requirements, report
                annually findings of the assessments, and assess the
                effectiveness of penalties in ensuring compliance with
                security procedures and take any other appropriate
                enforcement actions when noncompliance is found;'';

[[Page 115 STAT. 610]]

            (3) by striking ``program by January 31, 2001;'' in
        subparagraph (F) and inserting ``program;''; and
            (4) by striking subparagraph (G) and inserting the fol-
        lowing:
                    ``(G) work with airport operators to strengthen
                access control points in secured areas (including air
                traffic control operations areas, maintenance areas,
                crew lounges, baggage handling areas, concessions, and
                catering delivery areas) to ensure the security of
                passengers and aircraft and consider the deployment of
                biometric or similar technologies that identify
                individuals based on unique personal characteristics.''.

    (d) Airport Security Pilot Program.--Section 44903(c) of title 49,
United States Code, is amended by adding at the end the following:
            ``(3) Pilot programs.--The Administrator shall establish
        pilot programs in no fewer than 20 airports to test and evaluate
        new and emerging technology for providing access control and
        other security protections for closed or secure areas of the
        airports. Such technology may include biometric or other
        technology that ensures only authorized access to secure
        areas.''.

    (e) <<NOTE: 49 USC 44903 note.>> Airport Security Awareness
Programs.--The Under Secretary of Transportation for Security shall
require scheduled passenger air carriers, and airports in the United
States described in section 44903(c) to develop security awareness
programs for airport employees, ground crews, gate, ticket, and curbside
agents of the air carriers, and other individuals employed at such
airports.

SEC. 107. CREW TRAINING.

    (a) In General.--Subchapter I of chapter 449 of title 49, United
States Code, is amended by adding at the end the following:

``Sec. 44918. Crew training

    ``(a) In General.-- <<NOTE: Deadline.>> Not later than 60 days after
the date of enactment of the Aviation and Transportation Security Act,
the Administrator of the Federal Aviation Administration, in
consultation with the Under Secretary of Transportation for Security,
appropriate law enforcement, security, and terrorism experts,
representatives of air carriers and labor organizations representing
individuals employed in commercial aviation, shall develop detailed
guidance for a scheduled passenger air carrier flight and cabin crew
training program to prepare crew members for potential threat
conditions.

    ``(b) Program Elements.--The guidance shall require such a program
to include, at a minimum, elements that address the following:
            ``(1) Determination of the seriousness of any occurrence.
            ``(2) Crew communication and coordination.
            ``(3) Appropriate responses to defend oneself.
            ``(4) Use of protective devices assigned to crew members (to
        the extent such devices are required by the Administrator or
        Under Secretary).
            ``(5) Psychology of terrorists to cope with hijacker
        behavior and passenger responses.
            ``(6) Live situational training exercises regarding various
        threat conditions.
            ``(7) Flight deck procedures or aircraft maneuvers to defend
        the aircraft.

[[Page 115 STAT. 611]]

            ``(8) Any other subject matter deemed appropriate by the
        Administrator.

    ``(c) Air Carrier Programs.-- <<NOTE: Deadline.>> Within 60 days
after the Administrator issues the guidance under subsection (a) in
final form, each air carrier shall develop a flight and cabin crew
training program in accordance with that guidance and submit it to the
Administrator for approval. Within 30 days after receiving an air
carrier's program under this subsection, the Administrator shall review
the program and approve it or require the air carrier to make any
revisions deemed necessary by the Administrator for the program to meet
the guidance requirements.

    ``(d) Training.-- <<NOTE: Deadline.>> Within 180 days after the
Administrator approves the training program developed by an air carrier
under this section, the air carrier shall complete the training of all
flight and cabin crews in accordance with that program.

    ``(e) Updates.--The Administrator shall update the training guidance
issued under subsection (a) from time to time to reflect new or
different security threats and require air carriers to revise their
programs accordingly and provide additional training to their flight and
cabin crews.''.
    (b) Conforming Amendment.--The chapter analysis for
chapter 449 of title 49, United States Code, is amended by inserting
after the item relating to section 44917 the following:

``44918. Crew training.''.

SEC. 108. SECURITY SCREENING BY PRIVATE COMPANIES.

    (a) In General.--Subchapter I of chapter 449 of title 49, United
States Code, is amended by adding at the end the following:

``Sec. 44919. Security screening pilot program

    ``(a) Establishment of Program.--The Under Secretary shall establish
a pilot program under which, upon approval of an application submitted
by an operator of an airport, the screening of passengers and property
at the airport under section 44901 will be
carried out by the screening personnel of a qualified private
screening company under a contract entered into with the Under
Secretary.
    ``(b) Period of Pilot Program.--The pilot program under this section
shall begin on the last day of the 1-year period beginning on the date
of enactment of this section and end on the last day of the 3-year
period beginning on such date of enactment.
    ``(c) Applications.--An operator of an airport may submit to the
Under Secretary an application to participate in the pilot program under
this section.
    ``(d) Selection of Airports.--From among applications sub-
mitted under subsection (c), the Under Secretary may select for
participation in the pilot program not more than 1 airport from
each of the 5 airport security risk categories, as defined by the
Under Secretary.
    ``(e) Supervision of Screened Personnel.--The Under Secretary shall
provide Federal Government supervisors to oversee all screening at each
airport participating in the pilot program under this section and
provide Federal Government law enforcement officers at the airport
pursuant to this chapter.
    ``(f) Qualified Private Screening Company.--A private screening
company is qualified to provide screening services at an airport
participating in the pilot program under this section

[[Page 115 STAT. 612]]

if the company will only employ individuals to provide such services who
meet all the requirements of this chapter applicable to Federal
Government personnel who perform screening services at airports under
this chapter and will provide compensation and other benefits to such
individuals that are not less than the level of compensation and other
benefits provided to such Federal Government personnel in accordance
with this chapter.
    ``(g) Standards for Private Screening Companies.--The Under
Secretary may enter into a contract with a private screening company to
provide screening at an airport participating in the pilot program under
this section only if the Under Secretary determines and certifies to
Congress that the private screening company is owned and controlled by a
citizen of the United States, to the extent that the Under Secretary
determines that there are private screening companies owned and
controlled by such citizens.
    ``(h) Termination of Contracts.--The Under Secretary may terminate
any contract entered into with a private screening company to provide
screening services at an airport under the pilot program if the Under
Secretary finds that the company has failed repeatedly to comply with
any standard, regulation, directive, order, law, or contract applicable
to the hiring or training of personnel to provide such services or to
the provision of screening at the airport.
    ``(i) Election.--If a contract is in effect with respect to
screening at an airport under the pilot program on the last day
of the 3-year period beginning on the date of enactment of this
section, the operator of the airport may elect to continue to have
such screening carried out by the screening personnel of a qualified
private screening company under a contract entered into with the Under
Secretary under section 44920 or by Federal Government personnel in
accordance with this chapter.

``Sec. 44920. Security screening opt-out program

    ``(a) In General.--On or after the last day of the 2-year period
beginning on the date on which the Under Secretary transmits to Congress
the certification required by section 110(c) of the Aviation and
Transportation Security Act, an operator of an airport may submit to the
Under Secretary an application to have the screening of passengers and
property at the airport under section 44901 to be carried out by the
screening personnel of a qualified private screening company under a
contract entered into with the Under Secretary.
    ``(b) Approval of Applications.--The Under Secretary may approve any
application submitted under subsection (a).
    ``(c) Qualified Private Screening Company.--A private screening
company is qualified to provide screening services at an airport under
this section if the company will only employ individuals to provide such
services who meet all the requirements of this chapter applicable to
Federal Government personnel who perform screening services at airports
under this chapter and will provide compensation and other benefits to
such individuals that are not less than the level of compensation and
other benefits provided to such Federal Government personnel in
accordance with this chapter.
    ``(d) Standards for Private Screening Companies.--The Under
Secretary may enter into a contract with a private screening company to
provide screening at an airport under this section

[[Page 115 STAT. 613]]

only if the Under Secretary determines and certifies to Congress that--
            ``(1) the level of screening services and protection
        provided at the airport under the contract will be equal to or
        greater than the level that would be provided at the airport by
        Federal Government personnel under this chapter; and
            ``(2) the private screening company is owned and controlled
        by a citizen of the United States, to the extent that the Under
        Secretary determines that there are private screening companies
        owned and controlled by such citizens.

    ``(e) Supervision of Screened Personnel.--The Under Secretary shall
provide Federal Government supervisors to oversee all screening at each
airport at which screening services are provided under this section and
provide Federal Government law enforcement officers at the airport
pursuant to this chapter.
    ``(f) Termination of Contracts.--The Under Secretary may terminate
any contract entered into with a private screening company to provide
screening services at an airport under this section if the Under
Secretary finds that the company has failed repeatedly to comply with
any standard, regulation, directive, order, law, or contract applicable
to the hiring or training of personnel to provide such services or to
the provision of screening at the airport.''.
    (b) Clerical Amendment.--The analysis for such subchapter is amended
by adding after the item relating to section 44918 the following:

``44919. Security screening pilot program.
``44920. Security screening opt-out program.''.

SEC. 109. ENHANCED SECURITY MEASURES. <<NOTE: 49 USC 114 note.>>

    (a) In General.--The Under Secretary of Transportation for Security
may take the following actions:
            (1) Require effective 911 emergency call capability for
        telephones serving passenger aircraft and passenger trains.
            (2) Establish a uniform system of identification for all
        State and local law enforcement personnel for use in obtaining
        permission to carry weapons in aircraft cabins and in obtaining
        access to a secured area of an airport, if otherwise authorized
        to carry such weapons.
            (3) Establish requirements to implement trusted passenger
        programs and use available technologies to expedite the security
        screening of passengers who participate in such programs,
        thereby allowing security screening personnel to focus on those
        passengers who should be subject to more extensive screening.
            (4) In consultation with the Commissioner of the Food and
        Drug Administration, develop alternative security procedures
        under which a medical product to be transported on a flight of
        an air carrier would not be subject to an inspection that would
        irreversibly damage the product.
            (5) Provide for the use of technologies, including wireless
        and wire line data technologies, to enable the private and
        secure communication of threats to aid in the screening of
        passengers and other individuals on airport property who are
        identified on any State or Federal security-related data base
        for the purpose of having an integrated response coordination of
        various authorized airport security forces.
            (6) In consultation with the Administrator of the Federal
        Aviation Administration, consider whether to require all pilot

[[Page 115 STAT. 614]]

        licenses to incorporate a photograph of the license holder and
        appropriate biometric imprints.
            (7) Provide for the use of voice stress analysis, biometric,
        or other technologies to prevent a person who might pose a
        danger to air safety or security from boarding the aircraft of
        an air carrier or foreign air carrier in air transportation or
        intrastate air transportation.
            (8) Provide for the use of technology that will permit
        enhanced instant communications and information between airborne
        passenger aircraft and appropriate individuals or facilities on
        the ground.

    (b) Report.-- <<NOTE: Deadline.>> Not later than 6 months after the
date of enactment of this Act, and annually thereafter until the Under
Secretary has implemented or decided not to take each of the actions
specified in subsection (a), the Under Secretary shall transmit to
Congress a report on the progress of the Under Secretary in evaluating
and taking such actions, including any legislative recommendations that
the Under Secretary may have for enhancing transportation security.

SEC. 110. SCREENING.

    (a) Review and Development of Ways To Strengthen Security.--Section
44932(c) of title 49, United States Code, is
amended--
            (1) by striking ``x-ray'' in paragraph (4);
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking ``passengers.'' in paragraph (5) and
        inserting ``passengers;''; and
            (4) by adding at the end the following:
            ``(6) to strengthen and enhance the ability to detect or
        neutralize nonexplosive weapons, such as biological, chemical,
        or similar substances; and
            ``(7) to evaluate such additional measures as may be
        appropriate to enhance inspection of passengers, baggage, and
        cargo.''.

    (b) Passengers and Property.--Section 44901 of title 49, United
States Code, is amended--
            (1) by redesignating subsection (c) as subsection (h); and
            (2) by striking subsections (a) and (b) and inserting the
        following:

    ``(a) In General.--The Under Secretary of Transportation for
Security shall provide for the screening of all passengers and property,
including United States mail, cargo, carry-on and checked baggage, and
other articles, that will be carried aboard a passenger aircraft
operated by an air carrier or foreign air carrier in air transportation
or intrastate air transportation. In the case of flights and flight
segments originating in the United States, the screening shall take
place before boarding and shall be carried out by a Federal Government
employee (as defined in section 2105 of title 5, United States Code),
except as otherwise provided in section 44919 or 44920 and except for
identifying passengers and baggage for screening under the CAPPS and
known shipper programs and conducting positive bag-match programs.
    ``(b) Supervision of Screening.--All screening of passengers and
property at airports in the United States where screening is required
under this section shall be supervised by uniformed Federal personnel of
the Transportation Security Administration

[[Page 115 STAT. 615]]

who shall have the power to order the dismissal of any individual
performing such screening.
    ``(c) Checked Baggage.-- <<NOTE: Deadline.>> A system must be in
operation to screen all checked baggage at all airports in the United
States as soon as practicable but not later than the 60th day following
the date of enactment of the Aviation and Transportation Security Act.

    ``(d) Explosive Detection Systems.--
            ``(1) In general.--The Under Secretary of Transportation for
        Security shall take all necessary action to ensure that--
                    ``(A) explosive detection systems are deployed as
                soon as possible to ensure that all United States
                airports described in section 44903(c) have sufficient
                explosive detection systems to screen all checked
                baggage no later than December 31, 2002, and that as
                soon as such systems are in place at an airport, all
                checked baggage at the airport is screened by those
                systems; and
                    ``(B) all systems deployed under subparagraph (A)
                are fully utilized; and
                    ``(C) if explosive detection equipment at an airport
                is unavailable, all checked baggage is screened by an
                alternative means.

    ``(e) Mandatory Screening Where EDS Not Yet Available.--
<<NOTE: Deadline.>> As soon as practicable but not later than the 60th
day following the date of enactment of the Aviation and Transportation
Security Act and until the requirements of subsection (b)(1)(A) are met,
the Under Secretary shall require alternative means for screening any
piece of checked baggage that is not screened by an explosive detection
system. Such alternative means may include 1 or more of the following:
            ``(1) A bag-match program that ensures that no checked
        baggage is placed aboard an aircraft unless the passenger who
        checked the baggage is aboard the aircraft.
            ``(2) Manual search.
            ``(3) Search by canine explosive detection units in
        combination with other means.
            ``(4) Other means or technology approved by the Under
        Secretary.

    ``(f) Cargo Deadline.--A system must be in operation to screen,
inspect, or otherwise ensure the security of all cargo that is to be
transported in all-cargo aircraft in air transportation and intrastate
air transportation as soon as practicable after the date of enactment of
the Aviation and Transportation Security Act.
    ``(g) Deployment of Armed Personnel.--
            ``(1) In general.--The Under Secretary shall order the
        deployment of law enforcement personnel authorized to carry
        firearms at each airport security screening location to ensure
        passenger safety and national security.
            ``(2) Minimum requirements.--Except at airports required to
        enter into agreements under subsection (c), the Under Secretary
        shall order the deployment of at least 1 law enforcement officer
        at each airport security screening location. At the 100 largest
        airports in the United States, in terms of annual passenger
        enplanements for the most recent calendar year for which data
        are available, the Under Secretary shall order the deployment of
        additional law enforcement personnel at airport security
        screening locations if the Under Secretary determines

[[Page 115 STAT. 616]]

        that the additional deployment is necessary to ensure passenger
        safety and national security.''.

    (c) Deadline for Deployment of Federal Screeners.--
            (1) In general.--Not later than 1 year after the date of
        enactment of this Act, the Under Secretary of Transportation for
        Security shall deploy at all airports in the United States where
        screening is required under section 44901 of title 49, United
        States Code, a sufficient number of Federal screeners, Federal
        Security Managers, Federal security personnel, and Federal law
        enforcement officers to conduct the screening of all passengers
        and property under section 44901 of such title at such airports.
            (2) Certification to congress.--Not later than 1 year after
        the date of enactment of this Act, the Under Secretary shall
        transmit to Congress a certification that the requirement of
        paragraph (1) has been met.

    (d) <<NOTE: 49 USC 44901 note.>> Reports.--
            (1) Deployment.-- <<NOTE: Deadline.>> Within 6 months after
        the date of enactment of this Act, the Under Secretary of
        Transportation for Security shall report to the Committee on
        Commerce, Science, and Transportation of the Senate and to the
        Committee on Transportation and Infrastructure of the House of
        Representatives on the deployment of the systems required by
        section 44901(c) of title 49, United States Code. The Under
        Secretary shall include in the report--
                    (A) an installation schedule;
                    (B) the dates of installation of each system; and
                    (C) the date on which each system installed is
                operational.
            (2) Screening of small aircraft.--
        <<NOTE: Deadline.>> Within 1 year after the date of enactment of
        this Act, the Under Secretary of Transportation for Security
        shall transmit a report to the Com-
        mittee on Commerce, Science, and Transportation of the Senate
        and Committee on Transportation and Infrastructure of the
        House of Representatives on the screening requirements
        applicable to passengers boarding, and property being carried
        aboard, aircraft with 60 seats or less used in scheduled
        passenger service with recommendations for any necessary changes
        in those requirements.
SEC. 111. TRAINING AND EMPLOYMENT OF SECURITY SCREENING PERSONNEL.

    (a) In General.--Section 44935 of title 49, United States Code, is
amended--
            (1) by redesignating subsection (f) as subsection (i); and
            (2) by striking subsection (e) and inserting the following:

    ``(e) Security Screeners.--
            ``(1) Training program.--The Under Secretary of
        Transportation for Security shall establish a program for the
        hiring and training of security screening personnel.
            ``(2) Hiring.--
                    ``(A) Qualifications.-- <<NOTE: Deadline.>> Within
                30 days after the date of enactment of the Aviation and
                Transportation Security Act, the Under Secretary shall
                establish qualification standards for individuals to be
                hired by the United States as security screening
                personnel. Notwithstanding any

[[Page 115 STAT. 617]]

                provision of law, those standards shall require, at a
                min-
                imum, an individual--
                          ``(i) to have a satisfactory or better score
                      on a Federal security screening personnel
                      selection examination;
                          ``(ii) to be a citizen of the United States;
                          ``(iii) to meet, at a minimum, the
                      requirements set forth in subsection (f);
                          ``(iv) to meet such other qualifications as
                      the Under Secretary may establish; and
                          ``(v) to have the ability to demonstrate daily
                      a fitness for duty without any impairment due to
                      illegal drugs, sleep deprivation, medication, or
                      alcohol.
                    ``(B) Background checks.--The Under Secretary shall
                require that an individual to be hired as a security
                screener undergo an employment investigation (including
                a criminal history record check) under section
                44936(a)(1).
                    ``(C) Disqualification of individuals who present
                national security risks.--The Under Secretary, in
                consultation with the heads of other appropriate Federal
                agencies, shall establish procedures, in addition to any
                background check conducted under section 44936, to
                ensure that no individual who presents a threat to
                national security is employed as a security screener.
            ``(3) Examination; review of existing rules.--The Under
        Secretary shall develop a security screening personnel
        examination for use in determining the qualification of
        individuals seeking employment as security screening personnel.
        The Under Secretary shall also review, and revise as necessary,
        any standard, rule, or regulation governing the employment of
        individuals as security screening personnel.

    ``(f) Employment Standards for Screening Personnel.--
            ``(1) Screener requirements.--Notwithstanding any provision
        of law, an individual may not be deployed as a security screener
        unless that individual meets the following requirements:
                    ``(A) The individual shall possess a high school
                diploma, a general equivalency diploma, or experience
                that the Under Secretary has determined to be sufficient
                for the individual to perform the duties of the
                position.
                    ``(B) The individual shall possess basic aptitudes
                and physical abilities, including color perception,
                visual and aural acuity, physical coordination, and
                motor skills, to the following standards:
                          ``(i) Screeners operating screening equipment
                      shall be able to distinguish on the screening
                      equipment monitor the appropriate imaging standard
                      specified by the Under Secretary.
                          ``(ii) Screeners operating any screening
                      equipment shall be able to distinguish each color
                      displayed on every type of screening equipment and
                      explain what each color signifies.
                          ``(iii) Screeners shall be able to hear and
                      respond to the spoken voice and to audible alarms
                      generated by screening equipment in an active
                      checkpoint environment.

[[Page 115 STAT. 618]]

                          ``(iv) Screeners performing physical searches
                      or other related operations shall be able to
                      efficiently and thoroughly manipulate and handle
                      such baggage, containers, and other objects
                      subject to security proc-
                      essing.
                          ``(v) Screeners who perform pat-downs or hand-
                      held metal detector searches of individuals shall
                      have sufficient dexterity and capability to
                      thoroughly conduct those procedures over an
                      individual's entire body.
                    ``(C) The individual shall be able to read, speak,
                and write English well enough to--
                          ``(i) carry out written and oral instructions
                      regarding the proper performance of screening
                      duties;
                          ``(ii) read English language identification
                      media, credentials, airline tickets, and labels on
                      items normally encountered in the screening
                      process;
                          ``(iii) provide direction to and understand
                      and answer questions from English-speaking
                      individuals undergoing screening; and
                          ``(iv) write incident reports and statements
                      and log entries into security records in the
                      English language.
                    ``(D) The individual shall have satisfactorily
                completed all initial, recurrent, and appropriate
                specialized training required by the security program,
                except as provided in paragraph (3).
            ``(2) Veterans preference.--The Under Secretary shall
        provide a preference for the hiring of an individual as a
        security screener if the individual is a member or former member
        of the armed forces and if the individual is entitled, under
        statute, to retired, retirement, or retainer pay on account of
        service as a member of the armed forces.
            ``(3) Exceptions.--An individual who has not completed the
        training required by this section may be deployed during the on-
        the-job portion of training to perform functions if that
        individual--
                    ``(A) is closely supervised; and
                    ``(B) does not make independent judgments as to
                whether individuals or property may enter a sterile area
                or aircraft without further inspection.
            ``(4) Remedial training.--No individual employed as a
        security screener may perform a screening function after that
        individual has failed an operational test related to that
        function until that individual has successfully completed the
        remedial training specified in the security program.
            ``(5) Annual proficiency review.--The Under Secretary shall
        provide that an annual evaluation of each individual assigned
        screening duties is conducted and documented. An individual
        employed as a security screener may not continue to be employed
        in that capacity unless the evaluation demonstrates that the
        individual--
                    ``(A) continues to meet all qualifications and
                standards required to perform a screening function;
                    ``(B) has a satisfactory record of performance and
                attention to duty based on the standards and
                requirements in the security program; and

[[Page 115 STAT. 619]]

                    ``(C) demonstrates the current knowledge and skills
                necessary to courteously, vigilantly, and effectively
                perform screening functions.
            ``(6) Operational testing.--In addition to the annual
        proficiency review conducted under paragraph (5), the Under
        Secretary shall provide for the operational testing of such per-
        sonnel.

    ``(g) Training.--
            ``(1) Use of other agencies.--The Under Secretary may enter
        into a memorandum of understanding or other arrangement with any
        other Federal agency or department with appropriate law
        enforcement responsibilities, to provide personnel, resources,
        or other forms of assistance in the training of security
        screening personnel.
            ``(2) Training plan.-- <<NOTE: Deadline.>> Within 60 days
        after the date of enactment of the Aviation and Transportation
        Security Act, the Under Secretary shall develop a plan for the
        training of security screening personnel. The plan shall
        require, at a min-
        imum, that a security screener--
                    ``(A) has completed 40 hours of classroom
                instruction or successfully completed a program that the
                Under Secretary determines will train individuals to a
                level of proficiency equivalent to the level that would
                be achieved by such classroom instruction;
                    ``(B) has completed 60 hours of on-the-job
                instructions; and
                    ``(C) has successfully completed an on-the-job
                training examination prescribed by the Under Secretary.
            ``(3) Equipment-specific training.--An individual employed
        as a security screener may not use any security screening device
        or equipment in the scope of that individual's employment unless
        the individual has been trained on that device or equipment and
        has successfully completed a test on the use of the device or
        equipment.

    ``(h) Technological Training.--
            ``(1) In general.--The Under Secretary shall require
        training to ensure that screeners are proficient in using the
        most up-to-date new technology and to ensure their proficiency
        in recognizing new threats and weapons.
            ``(2) Periodic assessments.--The Under Secretary shall make
        periodic assessments to determine if there are dual use items
        and inform security screening personnel of the existence of such
        items.
            ``(3) Current lists of dual use items.--Current lists of
        dual use items shall be part of the ongoing training for
        screeners.
            ``(4) Dual use defined.--For purposes of this subsection,
        the term `dual use' item means an item that may seem harmless
        but that may be used as a weapon.

    ``(i) Limitation on Right To Strike.--An individual that screens
passengers or property, or both, at an airport under this section may
not participate in a strike, or assert the right to strike, against the
person (including a governmental entity)
employing such individual to perform such screening.
    ``(j) Uniforms.--The Under Secretary shall require any indi-
vidual who screens passengers and property pursuant to section

[[Page 115 STAT. 620]]

44901 to be attired while on duty in a uniform approved by the Under
Secretary.''.
    (b) Conforming Amendments.--Section 44936(a)(1) of title 49, United
States Code, is amended--
            (1) in subparagraph (A) by inserting ``as a security
        screener under section 44935(e) or a position'' after ``a
        position''; and
            (2) in subparagraph (E) by striking clause (iv).

    (c) <<NOTE: 49 USC 44935 note.>> Transition.--The Under Secretary of
Transportation for Security shall complete the full implementation of
section 44935 (e), (f), (g), and (h) of title 49, United States Code, as
amended by subsection (a), as soon as is practicable. The Under
Secretary may make or continue such arrangements for the training of
security screeners under that section as the Under Secretary determines
necessary pending full implementation of that section as so
amended.

    (d) <<NOTE: 49 USC 44935 note.>> Screener Personnel.--
Notwithstanding any other provision of law, the Under Secretary of
Transportation for Security may employ, appoint, discipline, terminate,
and fix the compensation, terms, and conditions of employment of Federal
service for such a number of individuals as the Under Secretary
determines to be necessary to carry out the screening functions of the
Under Secretary under section 44901 of title 49, United States Code. The
Under Secretary shall establish levels of compensation and other
benefits for individuals so employed.

SEC. 112. RESEARCH AND DEVELOPMENT.

    (a) In General.--Section 44912(b)(1) of title 49, United States
Code, is amended--
            (1) by striking ``complete an intensive review of'' and
        inserting ``periodically review'';
            (2) by striking ``commercial aircraft in service and
        expected to be in service in the 10-year period beginning on
        November 16, 1990;'' in subparagraph (B) and inserting
        ``aircraft in air transportation;''; and
            (3) by redesignating subparagraphs (D) through (F) as
        subparagraphs (E) through (G), respectively, and inserting after
        subparagraph (C) the following:
                    ``(D) the potential release of chemical, biological,
                or similar weapons or devices either within an aircraft
                or within an airport;''.

    (b) Additional Matters Regarding Research and Development.--
            (1) Additional program requirements.--Subsection (a) of
        section 44912 of title 49, United States Code, is amended--
                    (A) by redesignating paragraph (4) as paragraph (5);
                and
                    (B) by inserting after paragraph (3) the following
                new paragraph (4):

    ``(4)(A) In carrying out the program established under this
subsection, the Administrator shall designate an individual to be
responsible for engineering, research, and development with respect to
security technology under the program.
    ``(B) The individual designated under subparagraph (A) shall use
appropriate systems engineering and risk management models in making
decisions regarding the allocation of funds for
engineering, research, and development with respect to security
technology under the program.

[[Page 115 STAT. 621]]

    ``(C) The individual designated under <<NOTE: Reports.>>
subparagraph (A) shall, on an annual basis, submit to the Research,
Engineering and Development Advisory Committee a report on activities
under this paragraph during the preceding year. Each report shall
include, for the year covered by such report, information on--
            ``(i) progress made in engineering, research, and
        development with respect to security technology;
            ``(ii) the allocation of funds for engineering, research,
        and development with respect to security technology; and
            ``(iii) engineering, research, and development with respect
        to any technologies drawn from other agencies, including the
        rationale for engineering, research, and development with
        respect to such technologies.''.
            (2) Review of threats.--Subsection (b)(1) of that section is
        further amended--
                    (A) by redesignating subparagraphs (A) through (G)
                as subparagraphs (B) through (H) respectively; and
                    (B) by inserting before subparagraph (B), as so
                redesignated, the following new subparagraph (A):
            ``(A) a comprehensive systems analysis (employing
        vulnerability analysis, threat attribute definition, and
        technology roadmaps) of the civil aviation system, including--
                    ``(i) the destruction, commandeering, or diversion
                of civil aircraft or the use of civil aircraft as a
                weapon; and
                    ``(ii) the disruption of civil aviation service,
                including by cyber attack;''.
            (3) Scientific advisory panel.--Subsection (c) of that
        section is amended to read as follows:

    ``(c) Scientific Advisory Panel.-- <<NOTE: Establishment.>> (1) The
Administrator shall establish a scientific advisory panel, as a
subcommittee of the Research, Engineering, and Development Advisory
Committee, to review, comment on, advise the progress of, and recommend
modifications in, the program established under subsection (a) of this
section, including the need for long-range research programs to detect
and prevent catastrophic damage to commercial aircraft, commercial
aviation facilities, commercial aviation personnel and passengers, and
other components of the commercial aviation
system by the next generation of terrorist weapons.

    ``(2)(A) The advisory panel shall consist of individuals who have
scientific and technical expertise in--
            ``(i) the development and testing of effective explosive
        detection systems;
            ``(ii) aircraft structure and experimentation to decide on
        the type and minimum weights of explosives that an effective
        explosive detection technology must be capable of detecting;
            ``(iii) technologies involved in minimizing airframe damage
        to aircraft from explosives; and
            ``(iv) other scientific and technical areas the
        Administrator considers appropriate.

    ``(B) In appointing individuals to the advisory panel, the
Administrator should consider individuals from academia and the national
laboratories, as appropriate.
    ``(3) The Administrator shall organize the advisory panel into teams
capable of undertaking the review of policies and technologies upon
request.
    ``(4) <<NOTE: Deadline.>>  Not later than 90 days after the date of
the enactment of the Aviation and Transportation Security Act, and every
two

[[Page 115 STAT. 622]]

years thereafter, the Administrator shall review the composition of the
advisory panel in order to ensure that the expertise of the individuals
on the panel is suited to the current and anticipated duties of the
panel.''.

SEC. 113. FLIGHT SCHOOL SECURITY.

    (a) In General.--Subchapter II of chapter 449 of title 49, United
States Code, is amended by adding at the end the following new section:

``Sec. 44939. Training to operate certain aircraft

    ``(a) Waiting Period.--A person subject to regulation under this
part may provide training in the operation of any aircraft having a
maximum certificated takeoff weight of 12,500 pounds or more to an alien
(as defined in section 101(a)(3) of the Immigration and Nationality Act
(8 U.S.C. 1101(a)(3))) or to any other individual specified by the Under
Secretary of Transportation for Security only if--
            ``(1) that person has first notified the Attorney General
        that the individual has requested such training and furnished
        the Attorney General with that individual's identification in
        such form as the Attorney General may require; and
            ``(2) <<NOTE: Deadline.>>  the Attorney General has not
        directed, within 45 days after being notified under paragraph
        (1), that person not to provide the requested training because
        the Attorney General has determined that the individual presents
        a risk to aviation or national security.

    ``(b) Interruption of Training.--If the Attorney General, more than
45 days after receiving notification under subsection (a) from a person
providing training described in subsection (a), determines that the
individual presents a risk to aviation or national security, the
Attorney General shall immediately notify the person providing the
training of the determination and that person shall immediately
terminate the training.
    ``(c) Covered Training.--For the purposes of subsection (a),
training includes in-flight training, training in a simulator, and any
other form or aspect of training.
    ``(d) Security Awareness Training for Employees.--The Under
Secretary shall require flight schools to conduct a security awareness
program for flight school employees to increase their awareness of
suspicious circumstances and activities of individuals enrolling in or
attending flight school.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``44939. Training to operate certain aircraft.''.

    (c) <<NOTE: 49 USC 44939 note.>> International Cooperation.--The
Secretary of Transportation, in consultation with the Secretary of
State, shall work with the International Civil Aviation Organization and
the civil aviation authorities of other countries to improve
international aviation security through screening programs for flight
instruction candidates.

    (d) <<NOTE: 49 USC 44939 note.>> Effective Date.--The amendment made
by subsection (a) applies to applications for training received after
the date of enactment of this Act.

[[Page 115 STAT. 623]]

SEC. 114. INCREASED PENALTIES FOR INTERFERENCE WITH SECURITY
                        PERSONNEL.

    (a) In General.--Chapter 465 of title 49, United States Code, is
amended by inserting after section 46502 the following:

``Sec. 46503. Interference with security screening personnel

    ``An individual in an area within a commercial service airport in
the United States who, by assaulting a Federal, airport, or air carrier
employee who has security duties within the airport, interferes with the
performance of the duties of the employee or lessens the ability of the
employee to perform those duties, shall be fined under title 18,
imprisoned for not more than 10 years, or both. If the individual used a
dangerous weapon in committing the assault or interference, the
individual may be imprisoned for any term of years or life
imprisonment.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 465 of
such title is amended by inserting after the item relating to section
46502 the following:

``46503. Interference with security screening personnel.''.

SEC. 115. PASSENGER MANIFESTS.

    Section 44909 is amended <<NOTE: 49 USC 44909.>> by adding at the
end the following:

    ``(c) Flights in Foreign Air Transportation to the United States.--
            ``(1) In general.-- <<NOTE: Deadline.>> Not later than 60
        days after the date of enactment of the Aviation and
        Transportation Security Act, each air carrier and foreign air
        carrier operating a passenger flight in foreign air
        transportation to the United States shall provide to the
        Commissioner of Customs by electronic transmission a passenger
        and crew manifest containing the information specified in
        paragraph (2). Carriers may use the advanced passenger
        information system established under section 431 of the Tariff
        Act of 1930 (19 U.S.C. 1431) to provide the information required
        by the preceding sentence.
            ``(2) Information.--A passenger and crew manifest for a
        flight required under paragraph (1) shall contain the following
        information:
                    ``(A) The full name of each passenger and crew
                member.
                    ``(B) The date of birth and citizenship of each
                passenger and crew member.
                    ``(C) The sex of each passenger and crew member.
                    ``(D) The passport number and country of issuance of
                each passenger and crew member if required for travel.
                    ``(E) The United States visa number or resident
                alien card number of each passenger and crew member, as
                applicable.
                    ``(F) Such other information as the Under Secretary,
                in consultation with the Commissioner of Customs,
                determines is reasonably necessary to ensure aviation
                safety.
            ``(3) Passenger name records.--The carriers shall make
        passenger name record information available to the Customs
        Service upon request.
            ``(4) Transmission of manifest.--Subject to paragraph (5), a
        passenger and crew manifest required for a flight under
        paragraph (1) shall be transmitted to the Customs Service in
        advance of the aircraft landing in the United States in such
        manner, time, and form as the Customs Service prescribes.

[[Page 115 STAT. 624]]

            ``(5) Transmission of manifests to other federal agencies.--
        Upon request, information provided to the Under Secretary or the
        Customs Service under this subsection may be shared with other
        Federal agencies for the purpose of protecting national
        security.''.

SEC. 116. <<NOTE: 49 USC 41309 note.>> AIR TRANSPORTATION ARRANGEMENTS
            IN CERTAIN STATES.

    (a) In General.--Notwithstanding any provision of section 41309(a)
of title 49, United States Code, to the contrary, air carriers providing
air transportation on flights which both originate and terminate at
points within the same State may file an agreement, request,
modification, or cancellation of an agreement within the scope of that
section with the Secretary of Transportation upon a declaration by the
Governor of the State that such agreement, request, modification, or
cancellation is necessary to ensure the continuing availability of such
air transportation within that State.
    (b) Approval of Secretary.--The Secretary may approve any such
agreement, request, modification, or cancellation and grant an exemption
under section 41308(c) of title 49, United States Code, to the extent
necessary to effectuate such agreement, request, modification, or
cancellation, without regard to the provisions of section 41309(b) or
(c) of that title.
    (c) Public Interest Requirement.--The Secretary may approve such an
agreement, request, modification, or cancellation if the Secretary
determines that--
            (1) the State to which it relates has extraordinary air
        transportation needs and concerns; and
            (2) approval is in the public interest.

    (d) Termination.--An approval under subsection (b) and an exemption
under section 41308(c) of title 49, United States Code, granted under
subsection (b) shall terminate on the earlier of the 2 following dates:
            (1) A date established by the Secretary in the Secretary's
        discretion.
            (2) October 1, 2002.

    (e) Extension.--Notwithstanding subsection (d), if the Secretary
determines that it is in the public interest, the Secretary may extend
the termination date under subsection (d)(2) until a date no later than
October 1, 2003.
    (f) Reports.--If the Secretary approves any such agreement, request,
modification, or cancellation under this section and grants an
exemption, the Secretary shall transmit a report to the Com-
mittee on Commerce, Science, and Transportation of the Senate
and the Committee on Transportation and Infrastructure of the
House of Representatives within 6 months describing what actions
have been taken by the air carriers to which the exemption was
granted. The Secretary shall also notify those committees if the
Secretary extends the termination date under subsection (e).

SEC. 117. <<NOTE: 49 USC 44903 note.>> AIRLINE COMPUTER RESERVATION
            SYSTEMS.

    In order to ensure that all airline computer reservation systems
maintained by United States air carriers are secure from unauthorized
access by persons seeking information on reservations, passenger
manifests, or other nonpublic information, the Secretary of
Transportation shall require all such air carriers to utilize to the
maximum extent practicable the best technology available to secure their
computer reservation system against such unauthorized access.

[[Page 115 STAT. 625]]

SEC. 118. SECURITY SERVICE FEE.

    (a) In General.--Subchapter II of chapter 449 is amended by adding
at the end the following:

``Sec. 44940. Security service fee <<NOTE: 49 USC 44940 note.>>

    ``(a) General Authority.--
            ``(1) Passenger fees.--The Under Secretary of Transportation
        for Security shall impose a uniform fee, on passengers of air
        carriers and foreign air carriers in air transportation and
        intrastate air transportation originating at airports in the
        United States, to pay for the following costs of providing civil
        aviation security services:
                    ``(A) Salary, benefits, overtime, retirement and
                other costs of screening personnel, their supervisors
                and managers, and Federal law enforcement personnel
                deployed at airport security screening locations under
                section 44901.
                    ``(B) The costs of training personnel described in
                subparagraph (A), and the acquisition, operation, and
                maintenance of equipment used by such personnel.
                    ``(C) The costs of performing background
                investigations of personnel described in subparagraphs
                (A), (D), (F), and (G).
                    ``(D) The costs of the Federal air marshals program.
                    ``(E) The costs of performing civil aviation
                security research and development under this title.
                    ``(F) The costs of Federal Security Managers under
                section 44903.
                    ``(G) The costs of deploying Federal law enforcement
                personnel pursuant to section 44903(h).
        The amount of such costs shall be determined by the Under
        Secretary and shall not be subject to judicial review.
            ``(2) Air carrier fees.--
                    ``(A) Authority.--In addition to the fee imposed
                pursuant to paragraph (1), and only to the extent that
                the Under Secretary estimates that such fee will be
                insufficient to pay for the costs of providing civil
                aviation security services described in paragraph (1),
                the Under Secretary may impose a fee on air carriers and
                foreign air carriers engaged in air transportation and
                intrastate air transportation to pay for the difference
                between any such costs and the amount collected from
                such fee, as estimated by the Under Secretary at the
                beginning of each fiscal year. The estimates of the
                Under Secretary under this subparagraph are not subject
                to judicial review.
                    ``(B) Limitations.--
                          ``(i) Overall limit.--The amounts of fees
                      collected under this paragraph for each fiscal
                      year may not exceed, in the aggregate, the amounts
                      paid in calendar year 2000 by carriers described
                      in subparagraph (A) for screening passengers and
                      property, as determined by the Under Secretary.
                          ``(ii) Per-carrier limit.--The amount of fees
                      collected under this paragraph from an air carrier
                      described in subparagraph (A) for each of fiscal
                      years 2002, 2003, and 2004 may not exceed the
                      amount paid in calendar year 2000 by that carrier
                      for screening

[[Page 115 STAT. 626]]

                      passengers and property, as determined by the
                      Under Secretary.
                          ``(iii) Adjustment of per-carrier limit.--For
                      fiscal year 2005 and subsequent fiscal years, the
                      per-carrier limitation under clause (ii) may be
                      determined by the Under Secretary on the basis of
                      market share or any other appropriate measure in
                      lieu of actual screening costs in calendar year
                      2000.
                          ``(iv) Finality of determinations.--
                      Determinations of the Under Secretary under this
                      subparagraph are not subject to judicial review.
                    ``(C) Special rule for fiscal year 2002.--The amount
                of fees collected under this paragraph from any carrier
                for fiscal year 2002 may not exceed the amounts paid by
                that carrier for screening passengers and property for a
                period of time in calendar year 2000 proportionate to
                the period of time in fiscal year 2002 during which fees
                are collected under this paragraph.

    ``(b) Schedule of Fees.--In imposing fees under subsection (a), the
Under Secretary shall ensure that the fees are reasonably related to the
Transportation Security Administration's costs of providing services
rendered.
    ``(c) Limitation on Fee.--Fees imposed under subsection (a)(1) may
not exceed $2.50 per enplanement in air transportation or intrastate air
transportation that originates at an airport in the United States,
except that the total amount of such fees may not exceed $5.00 per one-
way trip.
    ``(d) Imposition of Fee.--
            ``(1) In general. <<NOTE: Federal Register,
        publication. Deadline.>> --Notwithstanding section 9701 of title
        31 and the procedural requirements of section 553 of title 5,
        the Under Secretary shall impose the fee under subsection
        (a)(1), and may impose a fee under subsection (a)(2), through
        the publication of notice of such fee in the Federal Register
        and begin collection of the fee within 60 days of the date of
        enactment of this Act, or as soon as possible thereafter.
            ``(2) Special rules passenger fees.--A fee imposed under
        subsection (a)(1) through the procedures under subsection (d)
        shall apply only to tickets sold after the date on which such
        fee is imposed. If a fee imposed under subsection (a)(1) through
        the procedures under subsection (d) on transportation of a
        passenger of a carrier described in subsection (a)(1) is not
        collected from the passenger, the amount of the fee shall be
        paid by the carrier.
            ``(3) Subsequent modification of fee. <<NOTE: Federal
        Register, publication.>> --After imposing a fee in accordance
        with paragraph (1), the Under Secretary may modify, from time to
        time through publication of notice in the Federal Register, the
        imposition or collection of such fee, or both.
            ``(4) Limitation on collection.--No fee may be collected
        under this section except to the extent that the expenditure of
        the fee to pay the costs of activities and services for which
        the fee is imposed is provided for in advance in an
        appropriations Act.

    ``(e) Administration of Fees.--
            ``(1) Fees payable to under secretary.--All fees imposed and
        amounts collected under this section are payable to the Under
        Secretary.

[[Page 115 STAT. 627]]

            ``(2) Fees collected by air carrier.--A fee imposed under
        subsection (a)(1) shall be collected by the air carrier or
        foreign air carrier that sells a ticket for transportation
        described in subsection (a)(1).
            ``(3) Due date for remittance.--A fee collected under this
        section shall be remitted on the last day of each calendar month
        by the carrier collecting the fee. The amount to be remitted
        shall be for the calendar month preceding the calendar month in
        which the remittance is made.
            ``(4) Information.--The Under Secretary may require the
        provision of such information as the Under Secretary decides is
        necessary to verify that fees have been collected and remitted
        at the proper times and in the proper amounts.
            ``(5) Fee not subject to tax.--For purposes of section 4261
        of the Internal Revenue Code of 1986 (26 U.S.C. 4261), a fee
        imposed under this section shall not be considered to be part of
        the amount paid for taxable transportation.
            ``(6) Cost of collecting fee.--No portion of the fee
        collected under this section may be retained by the air carrier
        or foreign air carrier for the costs of collecting, handling, or
        remitting the fee except for interest accruing to the carrier
        after collection and before remittance.

    ``(f) Receipts Credited as Offsetting Collections.--Notwithstanding
section 3302 of title 31, any fee collected under this section--
            ``(1) shall be credited as offsetting collections to the
        account that finances the activities and services for which the
        fee is imposed;
            ``(2) shall be available for expenditure only to pay the
        costs of activities and services for which the fee is imposed;
        and
            ``(3) shall remain available until expended.

    ``(g) Refunds.--The Under Secretary may refund any fee paid by
mistake or any amount paid in excess of that required.
    ``(h) Exemptions.--The Under Secretary may exempt from the passenger
fee imposed under subsection (a)(1) any passenger enplaning at an
airport in the United States that does not receive screening services
under section 44901 for that segment of the trip for which the passenger
does not receive screening.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended
by adding at the end the following:

``44940. Security service fee.''.

    (c) Specific Authorization of Appropriations.--
            (1) In general.--Part C of subtitle VII of title 49, United
        States Code, is amended by adding at the end the following:

                ``CHAPTER 483--AVIATION SECURITY FUNDING

``Sec.
``48301. Aviation security funding.

``Sec. 48301. Aviation security funding

    ``(a) In General.--There are authorized to be appropriated for
fiscal years 2002, 2003, 2004, and 2005 such sums as may be necessary to
carry out chapter 449 and related aviation security activities under
this title. Any amounts appropriated pursuant to

[[Page 115 STAT. 628]]

this section for fiscal year 2002 shall remain available until expended.
    ``(b) Grants for Aircraft Security.--There is authorized to be
appropriated $500,000,000 for fiscal year 2002 to the Secretary of
Transportation to make grants to or other agreements with air carriers
(including intrastate air carriers) to--
            ``(1) fortify cockpit doors to deny access from the cabin to
        the pilots in the cockpit;
            ``(2) provide for the use of video monitors or other devices
        to alert the cockpit crew to activity in the passenger cabin;
            ``(3) ensure continuous operation of the aircraft
        transponder in the event the crew faces an emergency; and
            ``(4) provide for the use of other innovative technologies
        to enhance aircraft security.''.
            (2) Conforming amendment.--The subtitle analysis for
        subtitle VII of title 49, United States Code, is amended by
        inserting after the item relating to chapter 482 the following:

``483. Aviation Security Funding................................48301''.
SEC. 119. INCREASED FUNDING FLEXIBILITY FOR AVIATION SECURITY.

    (a) Limited Use of Airport Improvement Program Funds.--
            (1) Airport development funds.--Section 47102(3) of title
        49, United States Code, is amended by adding at the end the
        following:
                    ``(J) in fiscal year 2002, any additional security
                related activity required by law or by the Secretary
                after Sep-
                tember 11, 2001, and before October 1, 2002.
                    ``(K) in fiscal year 2002 with respect to funds
                apportioned under section 47114 in fiscal years 2001 and
                2002, any activity, including operational activities, of
                an airport that is not a primary airport if that airport
                is located within the confines of enhanced class B
                airspace, as defined by Notice to Airmen FDC 1/0618
                issued by the Federal Aviation Administration and the
                activity was carried out when any restriction in the
                Notice is in effect.
                    ``(L) in fiscal year 2002, payments for debt service
                on indebtedness incurred to carry out a project at an
                airport owned or controlled by the sponsor or at a
                privately owned or operated airport passenger terminal
                financed by indebtedness incurred by the sponsor if the
                Secretary determines that such payments are necessary to
                prevent a default on the indebtedness.''.
            (2) Allowable costs.--Section 47110(b)(2) of title 49,
        United States Code, is amended--
                    (A) by striking ``or'' in subparagraph (B);
                    (B) by inserting ``or'' after ``executed;'' in
                subparagraph (C); and
                    (C) by adding at the end the following:
                    ``(D) if the cost is incurred after September 11,
                2001, for a project described in section 47102(3)(J),
                47102(3)(K), or 47102(3)(L) and shall not depend upon
                the date of execution of a grant agreement made under
                this subchapter;''.
            (3) Discretionary grants.--Section 47115 of title 49, United
        States Code, is amended by adding at the end the following:

[[Page 115 STAT. 629]]

    ``(i) Considerations for Project Under Expanded Security
Eligibility.--In order to assure that funding under this subchapter is
provided to the greatest needs, the Secretary, in selecting a project
described in section 47102(3)(J) for a grant, shall consider the non-
federal resources available to sponsor, the use of such non-federal
resources, and the degree to which the sponsor is pro-
viding increased funding for the project.''.
            (4) Federal share.--Section 47109(a) of title 49, United
        States Code, is amended--
                    (A) by striking ``and'' in paragraph (3);
                    (B) by striking ``47134.'' in paragraph (4) and
                inserting ``47134; and''; and
                    (C) by adding at the end the following:
            ``(5) for fiscal year 2002, 100 percent for a project
        described in section 47102(3)(J), 47102(3)(K), or
        47102(3)(L).''.
            (5) Airport development.--Section 47102(3)(B) of title 49,
        United States Code, is amended--
                    (A) by striking ``and'' at the end of clause (viii);
                    (B) by striking the period at the end of clause (ix)
                and inserting ``; and''; and
                    (C) by inserting after clause (ix) the following new
                clause:
                          ``(x) replacement of baggage conveyor systems,
                      and reconfiguration of terminal baggage areas,
                      that the Secretary determines are necessary to
                      install bulk explosive detection devices.''.

    (b)  <<NOTE: 49 USC 47114 note.>> Apportioned Funds.--For the
purpose of carrying out section 47114 of title 49, United States Code,
for fiscal year 2003, the Secretary shall use, in lieu of passenger
boardings at an airport during the prior calendar year, the greater of--
            (1) the number of passenger boardings at that airport during
        2000; or
            (2) the number of passenger boardings at that airport
        during 2001.

    (c) Expedited Processing of Security-Related PFC Requests.--The
Administrator of the Federal Aviation Administration shall, to the
extent feasible, expedite the processing and approval of passenger
facility fee requests under subchapter I of chapter 471 of title 49,
United States Code, for projects described in section 47192(3)(J) of
title 49, United States Code.
    (d) Amendment of General Fee Schedule Provision.--Section
45301(b)(1)(B) of title 49, United States Code, is amended--
            (1) by striking ``directly'' and inserting ``reasonably'';
            (2) by striking ``Administration's costs'' and inserting
        ``Administration's costs, as determined by the Administrator,'';
        and
            (3) by adding at the end ``The Determination of such costs
        by the Administrator is not subject to judicial review.''.

SEC. 120. CHEMICAL AND BIOLOGICAL WEAPON DETECTION.

    Section 44903(c)(2)(C) of title 49, United States Code, is
amended to read as follows:
                    ``(C) Maximum use of chemical and biological weapon
                detection equipment.--The Secretary of Transportation
                may require airports to maximize the use of technology
                and equipment that is designed to detect or neutralize
                potential chemical or biological weapons.''.

[[Page 115 STAT. 630]]

SEC. 121.  <<NOTE: 49 USC 44903 note.>> AUTHORIZATION OF FUNDS FOR
                        REIMBURSEMENT OF AIRPORTS FOR SECURITY
                        MANDATES.

    (a) Airport Security.--There is authorized to be appropriated to the
Secretary of Transportation for fiscal years 2002 and 2003 a total of
$1,500,000,000 to reimburse airport operators, on-airport parking lots,
and vendors of on-airfield direct services to air carriers for direct
costs incurred by such operators to comply with new, additional, or
revised security requirements imposed on such operators by the Federal
Aviation Administration or Transportation Security Administration on or
after September 11, 2001. Such sums shall remain available until
expended.
    (b) Documentation of Costs; Audit.--The Secretary may not reimburse
an airport operator, on-airport parking lot, or vendor of on-airfield
direct services to air carriers under this section for any cost for
which the airport operator, on-airport parking lot, or vendor of on-
airfield direct services does not demonstrate to the satisfaction of the
Secretary, using sworn financial statements or other appropriate data,
that--
            (1) the cost is eligible for reimbursement under subsection
        (a); and
            (2) the cost was incurred by the airport operator, on-
        airport parking lot, or vendor of on-airfield direct services to
        air carriers.

The Inspector General of the Department of Transportation and the
Comptroller General of the United States may audit such statements and
may request any other information necessary to conduct such an audit.
    (c) Claim Procedure.-- <<NOTE: Deadline.>> Within 30 days after the
date of enactment of this Act, the Secretary, after consultation with
airport operators, on-airport parking lots, and vendors of on-airfield
direct services to air carriers, shall publish in the Federal Register
the procedures for filing claims for reimbursement under this section of
eligible costs incurred by airport operators.

SEC. 122. SENSE OF THE CONGRESS.

    It is the sense of the Congress that--
            (1) an airport receiving Federal financial assistance should
        meet with the tenants of the airport (other than air carriers
        and foreign air carriers) to discuss adjustments of the rent of
        the tenants to account for losses in revenue incurred by the
        tenants on and after September 11, 2001;
            (2) an air carrier that received financial assistance under
        the Air Transportation Safety and System Stabilization Act or
        under title 49, United States Code, since September 11, 2001,
        should meet with airport operators to discuss payment of
        applicable rates, charges, and fees; and
            (3) the Federal Aviation Administration should maintain its
        current restriction on carry-on baggage of 1 bag and 1 personal
        item.

SEC. 123. AIRPORT IMPROVEMENT PROGRAMS.

    (a) Competition Plan.--Section 47106(f) <<NOTE: 49 USC 47106.>> is
amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Special rule for fiscal year 2002.--This subsection
        does not apply to any passenger facility fee approved, or grant

[[Page 115 STAT. 631]]

        made, in fiscal year 2002 if the fee or grant is to be used to
        improve security at a covered airport.''.

    (b) Conforming Amendment to Airport and Airway Trust Fund.--Section
9502(d)(1)(A) <<NOTE: 26 USC 9502.>> of the Internal Revenue Code of
1986 (relating to airport and airway program) is amended by inserting
``or the Aviation and Transportation Security Act'' after ``21st
Century''.

SEC. 124. TECHNICAL CORRECTIONS.

    (a) Report Deadline.--Section 106(a) of the Air Transportation
Safety and System Stabilization Act (Public Law 107-42) <<NOTE: 49 USC
40101 note.>> is
amended by striking ``February 1, 2001'' and inserting ``February
1, 2002''.

    (b) Insurance and Reinsurance of Aircraft.--Section 44306(c) (as
redesignated by section 201(d) of such Act) <<NOTE: 49 USC 44306.>> is
amended by inserting ``in the interest of air commerce or national
security or'' before ``to carry out foreign policy''.

    (c) Federal Credit Instruments.--Section 102(c)(2)(A) of such
Act <<NOTE: 49 USC 40101 note.>> is amended by striking
``representatives'' and inserting ``representations''.

    (d) Maximum Amount of Compensation Payable Per Air Carrier.--Section
103 of such <<NOTE: 49 USC 40101 note.>> Act is amended by adding at the
end the following:

    ``(d) Compensation for Certain Air Carriers.-- <<NOTE: President.>>
            ``(1) Set-aside.--The President may set aside a portion of
        the amount of compensation payable to air carriers under section
        101(a)(2) to provide compensation to classes of air carriers,
        such as air tour operators and air ambulances (including
        hospitals operating air ambulances) for whom the application of
        a distribution formula containing available seat miles as a
        factor would inadequately reflect their share of direct and
        incremental losses. The President shall reduce the
        $4,500,000,000 specified in subsection (b)(2)(A)(i) by the
        amount set aside under this subsection.
            ``(2) Distribution of amounts.--The President shall dis-
        tribute the amount set aside under this subsection proportion-
        ally among such air carriers based on an appropriate auditable
        measure, as determined by the President.''.
SEC. 125. ENCOURAGING AIRLINE EMPLOYEES TO REPORT SUSPICIOUS
                        ACTIVITIES.

    (a) In General.--Subchapter II of chapter 449 of title 49, United
States Code, is amended by inserting at the end the fol-
lowing:

``Sec. 44941. Immunity for reporting suspicious activities

    ``(a) In General.--Any air carrier or foreign air carrier or any
employee of an air carrier or foreign air carrier who makes a voluntary
disclosure of any suspicious transaction relevant to a possible
violation of law or regulation, relating to air piracy, a threat to
aircraft or passenger safety, or terrorism, as defined by section 3077
of title 18, United States Code, to any employee or agent of the
Department of Transportation, the Department of Justice, any Federal,
State, or local law enforcement officer, or any airport or airline
security officer shall not be civilly liable to any person under any law
or regulation of the United States, any constitution, law, or regulation
of any State or political subdivision of any State, for such disclosure.

[[Page 115 STAT. 632]]

    ``(b) Application.--Subsection (a) shall not apply to--
            ``(1) any disclosure made with actual knowledge that the
        disclosure was false, inaccurate, or misleading; or
            ``(2) any disclosure made with reckless disregard as to the
        truth or falsity of that disclosure.''.

    (b) Conforming Amendment.--The chapter analysis for such chapter is
amended by adding at the end the following:

``44941. Immunity for reporting suspicious activities.''.

SEC. 126. LESS-THAN-LETHAL WEAPONRY FOR FLIGHT DECK CREWS.

    (a) National Institute of Justice Study.-- <<NOTE: Deadline.>> The
National Institute of Justice shall assess the range of less-than-lethal
weaponry available for use by a flight deck crewmember temporarily to
incapacitate an individual who presents a clear and present danger to
the safety of the aircraft, its passengers, or individuals on the ground
and report its findings and recommendations to the Secretary of
Transportation within 90 days after the date of enactment of this Act.

    (b) Arming Flight Deck Crew.--Section 44903 of title 49, United
States Code, is amended by adding at the end the following:
    ``(h) Authority to Arm Flight Deck Crew With Less-Than-Lethal
Weapons.--
            ``(1) In general.--If the Secretary, after receiving the
        recommendations of the National Institute of Justice,
        determines, with the approval of the Attorney General and the
        Secretary of State, that it is appropriate and necessary and
        would effectively serve the public interest in avoiding air
        piracy, the Secretary may authorize members of the flight deck
        crew on any aircraft providing air transportation or intrastate
        air transportation to carry a less-than-lethal weapon while the
        aircraft is engaged in providing such transportation.
            ``(2) Usage.--If the Secretary grants authority under
        paragraph (1) for flight deck crew members to carry a less-than-
        lethal weapon while engaged in providing air transportation or
        intrastate air transportation, the Secretary shall--
                    ``(A) <<NOTE: Regulations.>>  prescribe rules
                requiring that any such crew
                member be trained in the proper use of the weapon; and
                    ``(B) <<NOTE: Guidelines.>>  prescribe guidelines
                setting forth the circumstances under which such weapons
                may be used.''.

SEC. 127. MAIL AND FREIGHT WAIVERS. <<NOTE: 49 USC 40101 note.>>
            (a) In General.--During a national emergency affecting air
        transportation or intrastate air transportation, the Secretary
        of Transportation, after consultation with the Transportation
        Security Oversight Board, may grant a complete or
        partial waiver of any restrictions on the carriage by aircraft
        of freight, mail, emergency medical supplies, personnel, or
        patients on aircraft, imposed by the Department of
        Transportation (or other Federal agency or department) that
        would permit such carriage of freight, mail, emergency medical
        supplies, personnel, or patients on flights, to, from, or within
        a State if the Secretary determines that--
            (1) extraordinary air transportation needs or concerns
        exist; and
            (2) the waiver is in the public interest, taking into
        consideration the isolation of and dependence on air
        transportation of the State.

[[Page 115 STAT. 633]]

    (b) Limitations.--The Secretary may impose reasonable limitations on
any such waiver.

SEC. 128. FLIGHT DECK SECURITY. <<NOTE: 49 USC 44903 note.>>

    The pilot of a passenger aircraft operated by an air carrier in air
transportation or intrastate air transportation is authorized to carry a
firearm into the cockpit if--
            (1) the Under Secretary of Transportation for Security
        approves;
            (2) the air carrier approves;
            (3) the firearm is approved by the Under Secretary; and
            (4) the pilot has received proper training for the use of
        the firearm, as determined by the Under Secretary.

SEC. 129. AMENDMENTS TO AIRMEN REGISTRY AUTHORITY.

    Section 44703(g) of title 49, United States Code, is amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking ``pilots'' and inserting ``airmen'';
                and
                    (B) by striking the period and inserting ``and
                related to combating acts of terrorism.''; and
            (2) by adding at the end, the following new paragraphs:

    ``(3) For purposes of this section, the term `acts of terrorism'
means an activity that involves a violent act or an act dangerous to
human life that is a violation of the criminal laws of the United States
or of any State, or that would be a criminal violation if committed
within the jurisdiction of the United States or of any State, and
appears to be intended to intimidate or coerce a civilian population to
influence the policy of a government by intimidation or coercion or to
affect the conduct of a government by assassination or kidnaping.
    ``(4) The Administrator is authorized and directed to work with
State and local authorities, and other Federal agencies, to assist in
the identification of individuals applying for or holding airmen
certificates.''.

SEC. 130. RESULTS-BASED MANAGEMENT.

    Subchapter II of chapter 449 of title 49, United States Code, is
amended by adding at the end the following:

``Sec. 44942. Performance goals and objectives

    ``(a) Short Term Transition.--
            ``(1) In general.-- <<NOTE: Deadline.>> Within 180 days
        after the date of enactment of the Aviation and Transportation
        Security Act, the Under Secretary for Transportation Security
        may, in consultation with Congress--
                    ``(A) establish acceptable levels of performance for
                aviation security, including screening operations and
                access control, and
                    ``(B) provide Congress with an action plan,
                containing measurable goals and milestones, that
                outlines how those levels of performance will be
                achieved.
            ``(2) Basics of action plan.--The action plan shall clarify
        the responsibilities of the Transportation Security
        Administration, the Federal Aviation Administration and any
        other agency or organization that may have a role in ensuring
        the safety and security of the civil air transportation system.

    ``(b) Long-Term Results-Based Management.--
            ``(1) Performance plan and report.--

[[Page 115 STAT. 634]]

                    ``(A) Performance plan.--
                          ``(i) Each year, consistent with the
                      requirements of the Government Performance and
                      Results Act of 1993 (GPRA), the Secretary and the
                      Under Secretary for Transportation Security shall
                      agree on a performance plan for the succeeding 5
                      years that establishes measurable goals and
                      objectives for aviation security. The plan shall
                      identify action steps necessary to achieve such
                      goals.
                          ``(ii) In addition to meeting the requirements
                      of GPRA, the performance plan should clarify the
                      responsibilities of the Secretary, the Under
                      Secretary for Transportation Security and any
                      other agency or organization that may have a role
                      in ensuring the safety and security of the civil
                      air transportation
                      system.
                    ``(B) Performance report.--Each year, consistent
                with the requirements of GPRA, the Under Secretary for
                Transportation Security shall prepare and submit to
                Congress an annual report including an evaluation of the
                extent goals and objectives were met. The report shall
                include the results achieved during the year relative to
                the goals established in the performance plan.

``Sec. 44943. Performance management system

    ``(a) Establishing a Fair and Equitable System for Meas-
uring Staff Performance.--The Under Secretary for Transpor-
tation Security shall establish a performance management system
which strengthens the organization's effectiveness by providing for
the establishment of goals and objectives for managers, employees,
and organizational performance consistent with the performance
plan.
    ``(b) Establishing Management Accountability for Meeting Performance
Goals.--
            ``(1) In general.--Each year, the Secretary and Under
        Secretary of Transportation for Security shall enter into an
        annual performance agreement that shall set forth organizational
        and individual performance goals for the Under Secretary.
            ``(2) Goals.--Each year, the Under Secretary and each senior
        manager who reports to the Under Secretary shall enter into an
        annual performance agreement that sets forth organization and
        individual goals for those managers. All other
        employees hired under the authority of the Under Secretary
        shall enter into an annual performance agreement that sets
        forth organization and individual goals for those employees.

    ``(c) Performance-Based Service Contracting.--To the extent
contracts, if any, are used to implement the Aviation Security Act, the
Under Secretary for Transportation Security shall, to the extent
practical, maximize the use of performance-based service contracts.
These contracts should be consistent with guidelines published by the
Office of Federal Procurement Policy.''.

[[Page 115 STAT. 635]]

SEC. 131. VOLUNTARY PROVISION OF EMERGENCY SERVICES DURING
                        COMMERCIAL FLIGHTS.

    (a) In General.--Subchapter II of chapter 449 of title 49, United
States Code, is amended by adding at the end the following new section:

``Sec. 44944. Voluntary provision of emergency services

    ``(a) Program for Provision of Voluntary Services.--
            ``(1) Program.--The Under Secretary of Transportation for
        Transportation Security shall carry out a program to permit
        qualified law enforcement officers, firefighters, and emergency
        medical technicians to provide emergency services on commercial
        air flights during emergencies.
            ``(2) Requirements.--The Under Secretary shall establish
        such requirements for qualifications of providers of voluntary
        services under the program under paragraph (1), including
        training requirements, as the Under Secretary considers
        appropriate.
            ``(3) Confidentiality of registry.--If as part of the
        program under paragraph (1) the Under Secretary requires or
        permits registration of law enforcement officers, firefighters,
        or emergency medical technicians who are willing to provide
        emergency services on commercial flights during emergencies, the
        Under Secretary shall take appropriate actions to ensure that
        the registry is available only to appropriate airline per-
        sonnel and otherwise remains confidential.
            ``(4) Consultation.--The Under Secretary shall consult with
        appropriate representatives of the commercial airline industry,
        and organizations representing community-based law enforcement,
        firefighters, and emergency medical technicians, in carrying out
        the program under paragraph (1), including the actions taken
        under paragraph (3).

    ``(b) Exemption From Liability.--An individual shall not be liable
for damages in any action brought in a Federal or State court that
arises from an act or omission of the individual in providing or
attempting to provide assistance in the case of an in-flight emergency
in an aircraft of an air carrier if the individual meets such
qualifications as the Under Secretary shall prescribe for purposes of
this section.
    ``(c) Exception.--The exemption under subsection (b) shall not apply
in any case in which an individual provides, or attempts to provide,
assistance described in that paragraph in a manner that constitutes
gross negligence or willful misconduct.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``44944. Voluntary provision of emergency services.''.

    (c) <<NOTE: 49 USC 44944 note.>> Construction Regarding Possession
of Firearms.--Nothing in this section may be construed to require any
modification of regulations of the Department of Transportation
governing the possession of firearms while in aircraft or air
transportation facilities or to authorize the possession of a firearm in
an aircraft or any such facility not authorized under those regulations.

SEC. 132. GENERAL AVIATION AND AIR CHARTERS.

    (a) <<NOTE: Deadline. 49 USC 44903 note.>> Air Charter Program.--
Within 90 days after the date of enactment of this Act, the Under
Secretary of Transportation

[[Page 115 STAT. 636]]

for Transportation Security shall implement an aviation security program
for charter air carriers (as defined in section 40102(a)(13) of title
49, United States Code) with a maximum certificated takeoff weight of
12,500 pounds or more.

    (b) General Aviation Program.-- <<NOTE: Deadline. Reports.>> Within
30 days after the date of enactment of this Act, the Under Secretary of
Transportation for Transportation Security shall transmit a report on
airspace and other security measures that can be deployed, as necessary,
to improve general aviation security to the Senate Committee on
Commerce, Science, and Transportation and the House of Representatives
Committee on Transportation and Infrastructure. The Under Secretary may
submit the report in both classified and redacted forms.

SEC. 133. DEFINITIONS. <<NOTE: 49 USC 40102 note.>>

    Except as otherwise explicitly provided, any term used in this title
that is defined in section 40102 of title 49, United States Code, has
the meaning given that term in that section.

SEC. 134. SENSE OF CONGRESS ON CERTAIN AVIATION MATTERS.

    (a) Flight Service Station Employees.--It is the sense of Congress
that the Administrator of the Federal Aviation Administration should
continue negotiating in good faith with flight service station employees
of the Administration with a goal of reaching agreement on a contract as
soon as possible.
    (b) War Risk Insurance.--It is the sense of Congress that the
Secretary of Transportation should implement section 202 of the Air
Transportation Safety and System Stabilization Act (Public Law 107-42)
so as to make war risk insurance directly available to vendors, agents,
and subcontractors of air carriers for all of their domestic operations.

SEC. 135. SENSE OF THE HOUSE OF REPRESENTATIVES.

    It is the sense of the House of Representatives that--
            (1) the Under Secretary of Transportation for Security
        should develop security procedures to allow passengers
        transporting a musical instrument on a flight of an air carrier
        to transport the instrument in the passenger cabin of the
        aircraft, notwithstanding any size or other restriction on
        carry-on baggage but subject to such other reasonable security
        procedures, terms, and conditions as may be established by the
        Under Secretary or the air carrier, including imposing
        additional charges by the air carrier; and
            (2) an air carrier that transports mail under a contract
        with the United States Postal Service should transport any
        animal that the Postal Service allows to be shipped through the
        mail.
SEC. 136. SHORT-TERM ASSESSMENT AND DEPLOYMENT OF
                        EMERGING SECURITY TECHNOLOGIES AND
                        PROCEDURES.

    Section 44903 of title 49, United States Code, is amended by adding
at the end the following:
    ``(i) Short-Term Assessment and Deployment of Emerging Security
Technologies and Procedures.--
            ``(1) In general.-- <<NOTE: Deadline.>> The Under Secretary
        of Transportation for Security shall recommend to airport
        operators, within 6 months after the date of enactment of the
        Aviation and Transportation Security Act, commercially available
        measures

[[Page 115 STAT. 637]]

        or procedures to prevent access to secure airport areas by
        unauthorized persons. As part of the 6-month assessment, the
        Under Secretary for Transportation Security shall--
                    ``(A) review the effectiveness of biometrics systems
                currently in use at several United States airports,
                including San Francisco International;
                    ``(B) review the effectiveness of increased
                surveillance at access points;
                    ``(C) review the effectiveness of card- or keypad-
                based access systems;
                    ``(D) review the effectiveness of airport emergency
                exit systems and determine whether those that lead to
                secure areas of the airport should be monitored or how
                breaches can be swiftly responded to; and
                    ``(E) specifically target the elimination of the
                ``piggy-backing'' phenomenon, where another person
                follows an authorized person through the access point.
        The 6-month assessment shall include a 12-month deployment
        strategy for currently available technology at all category X
        airports, as defined in the Federal Aviation Administration
        approved air carrier security programs required under part 108
        of title 14, Code of Federal <<NOTE: Deadline.>>  Regulations.
        Not later than 18 months after the date of enactment of this
        Act, the Secretary of Transportation shall conduct a review of
        reductions in unauthorized access at these airports.
            ``(2) Computer-assisted passenger prescreening
        system.--
                    ``(A) In general.--The Secretary of Transportation
                shall ensure that the Computer-Assisted Passenger
                Prescreening System, or any successor system--
                          ``(i) is used to evaluate all passengers
                      before they board an aircraft; and
                          ``(ii) includes procedures to ensure that
                      individuals selected by the system and their
                      carry-on and checked baggage are adequately
                      screened.
                    ``(B) Modifications.--The Secretary of
                Transportation may modify any requirement under the
                Computer-Assisted Passenger Prescreening System for
                flights that originate and terminate within the same
                State, if the Secretary determines that--
                          ``(i) the State has extraordinary air
                      transportation needs or concerns due to its
                      isolation and dependence on air transportation;
                      and
                          ``(ii) the routine characteristics of
                      passengers, given the nature of the market,
                      regularly triggers primary selectee status.''.
SEC. 137.  <<NOTE: 49 USC 44912 note.>> RESEARCH AND DEVELOPMENT
                        OF AVIATION SECURITY TECHNOLOGY.

    (a) Funding.--To augment the programs authorized in section
44912(a)(1) of title 49, United States Code, there is authorized to be
appropriated an additional $50,000,000 for each of fiscal years 2002
through 2006 and such sums as are necessary for each fiscal year
thereafter to the Transportation Security Administration, for research,
development, testing, and evaluation of the following technologies which
may enhance aviation security in the future. Grants to industry,
academia, and Government entities to

[[Page 115 STAT. 638]]

carry out the provisions of this section shall be available for fiscal
years 2002 and 2003 for--
            (1) the acceleration of research, development, testing, and
        evaluation of explosives detection technology for checked
        baggage, specifically, technology that is--
                    (A) more cost-effective for deployment for
                explosives detection in checked baggage at small- to
                medium-sized airports, and is currently under
                development as part of the Argus research program at the
                Transportation Security Administration;
                    (B) faster, to facilitate screening of all checked
                baggage at larger airports; or
                    (C) more accurate, to reduce the number of false
                positives requiring additional security measures;
            (2) acceleration of research, development, testing, and
        evaluation of new screening technology for carry-on items to
        provide more effective means of detecting and identifying
        weapons, explosives, and components of weapons of mass
        destruction, including advanced x-ray technology;
            (3) acceleration of research, development, testing, and
        evaluation of threat screening technology for other categories
        of items being loaded onto aircraft, including cargo, catering,
        and duty-free items;
            (4) acceleration of research, development, testing, and
        evaluation of threats carried on persons boarding aircraft or
        entering secure areas, including detection of weapons,
        explosives, and components of weapons of mass destruction;
            (5) acceleration of research, development, testing and
        evaluation of integrated systems of airport security
        enhancement, including quantitative methods of assessing
        security factors at airports selected for testing such systems;
            (6) expansion of the existing program of research,
        development, testing, and evaluation of improved methods of
        education, training, and testing of key airport security
        personnel; and
            (7) acceleration of research, development, testing, and
        evaluation of aircraft hardening materials, and techniques to
        reduce the vulnerability of aircraft to terrorist attack.

    (b) Grants.--Grants awarded under this subtitle shall identify
potential outcomes of the research, and propose a method for
quantitatively assessing effective increases in security upon completion
of the research program. At the conclusion of each grant, the grant
recipient shall submit a final report to the Transportation Security
Administration that shall include sufficient information to permit the
Under Secretary of Transportation for Security to prepare a cost-benefit
analysis of potential improvements to airport security based upon
deployment of the proposed technology. <<NOTE: Deadline.>> The Under
Secretary shall begin awarding grants under this subtitle within 90 days
of the date of enactment of this Act.

    (c) Budget Submission.--A budget submission and detailed strategy
for deploying the identified security upgrades recommended upon
completion of the grants awarded under subsection (b), shall be
submitted to Congress as part of the Department of Transportation's
annual budget submission.
    (d) Defense Research.-- <<NOTE: Appropriation
authorization.>> There is authorized to be appropriated $20,000,000 to
the Transportation Security Administration to issue research grants in
conjunction with the Defense Advanced

[[Page 115 STAT. 639]]

Research Projects Agency. Grants may be awarded under this section for--
            (1) research and development of longer-term improvements to
        airport security, including advanced weapons detection;
            (2) secure networking and sharing of threat information
        between Federal agencies, law enforcement entities, and other
        appropriate parties;
            (3) advances in biometrics for identification and threat
        assessment; or
            (4) other technologies for preventing acts of terrorism in
        aviation.

SEC. 138. EMPLOYMENT INVESTIGATIONS AND RESTRICTIONS.

    (a) In General.--Section 44936 of title 49, United States Code, is
amended--
            (1) by inserting ``and a review of available law enforcement
        data bases and records of other governmental and international
        agencies to the extent determined practicable by the Under
        Secretary of Transportation for Transportation Security,'' after
        ``check'' in subsection (a)(1)(A);
            (2) by striking ``in any case described in subparagraph
        (C)'' in subsection (a)(1)(B) and inserting ``and a review of
        available law enforcement data bases and records of other
        governmental and international agencies to the extent determined
        practicable by the Under Secretary of Transportation for
        Transportation Security'';
            (3) by striking ``will be'' in subsection (a)(1)(B)(i) and
        inserting ``are'';
            (4) by striking ``and'' after the semicolon in clause (ii)
        of subsection (a)(1)(B);
            (5) by redesignating clause (iii) of subsection (a)(1)(B) as
        clause (iv);
            (6) by inserting after clause (ii) of subsection (a)(1)(B)
        the following:
                          ``(iii) individuals who regularly have
                      escorted access to aircraft of an air carrier or
                      foreign air carrier or a secured area of an
                      airport in the United States the Administrator
                      designates that serves an air carrier or foreign
                      air carrier; and'';
            (7) by striking subparagraphs (C), (D), and (E) of
        subsection (a)(1) and redesignating subparagraph (F) as
        subparagraph (D);
            (8) by inserting after subparagraph (B) of subsection (a)(1)
        the following:
                    ``(C) Background checks of current employees.--
                          ``(i) A new background check (including a
                      criminal history record check and a review of
                      available law enforcement data bases and records
                      of other governmental and international agencies
                      to the extent determined practicable by the Under
                      Secretary of Transportation for Transportation
                      Security shall be required for any individual who
                      is employed in a position described in
                      subparagraphs (A) and (B) on the date of enactment
                      of the Aviation and Transportation Security Act.
                          ``(ii) The Under Secretary may provide by
                      order (without regard to the provisions of chapter
                      5 of title

[[Page 115 STAT. 640]]

                      5, United States Code) for a phased-in
                      implementation of the requirements of this
                      subparagraph.'';
            (9) by striking ``107.31(m)'' in subparagraph (D), as
        redesignated, and inserting ``107.31(m)(1) or (2)'';
            (10) by striking ``the date of enactment of this
        subparagraph.'' in subparagraph (D), as redesignated, and
        inserting ``November 22, 2000. The Under Secretary shall work
        with the International Civil Aviation Organization and with
        appropriate authorities of foreign countries to ensure that
        individuals exempted under this subparagraph do not pose a
        threat to aviation or national security.'';
            (11) by striking ``carrier, or airport operator'' in
        subsection (a)(2) and inserting ``carrier, airport operator, or
        government'';
            (12) by striking ``carrier, or airport operator'' in
        subsection (b)(1) and inserting ``carrier, airport operator, or
        government'';
            (13) by striking ``carrier, or airport operator'' in
        subsection (b)(3) and inserting ``carrier, airport operator, or
        government''; and
            (14) by adding at the end of subsection (c)(1) ``All Federal
        agencies shall cooperate with the Under Secretary and the Under
        Secretary's designee in the process of collecting and submitting
        fingerprints.''.

    (b) Records of Employment of Pilot Applicants.--Part A of subtitle
VII of title 49, United States Code, is amended--
            (1) by moving subsections (f), (g), and (h) of section 44936
        from section 44936, inserting them at the end of section 44703,
        and redesignating them as subsections (h), (i), and (j),
        respectively; and
            (2) in subsections (i) and (j) of section 44703 (as moved to
        the end of section 44703 by paragraph (1) of this subsection),
        by striking ``subsection (f)'' each place it appears and
        inserting ``subsection (h)''.

SEC. 139. ALCOHOL AND CONTROLLED SUBSTANCE TESTING.

    Chapter 451 of title 49, United States Code, is amended--
            (1) <<NOTE: 49 USC 45102.>> by striking ``contract
        personnel'' each place it appears and inserting ``personnel'';
            (2) <<NOTE: 49 USC 45103.>> by striking ``contract
        employee'' each place it appears and inserting ``employee'';
            (3) in section 45106(c) by striking ``contract employees''
        and inserting ``employees'';
            (4) by inserting after section 45106 the following:

``Sec. 45107. Transportation Security Administration

    ``(a) Transfer of Functions Relating to Testing Programs With
Respect to Airport Security Screening Personnel.--The authority of the
Administrator of the Federal Aviation Administration under this chapter
with respect to programs relating to testing of airport security
screening personnel are transferred to the Under Secretary of
Transportation for Security. Notwith-
standing section 45102(a), the regulations prescribed under section
45102(a) shall require testing of such personnel by their employers
instead of by air carriers and foreign air carriers.
    ``(b) Applicability of Chapter With Respect to Employees of
Administration.--The provisions of this chapter that apply with respect
to employees of the Federal Aviation Administration whose duties include
responsibility for safety-sensitive functions

[[Page 115 STAT. 641]]

shall apply with respect to employees of the Transportation Security
Administration whose duties include responsibility for security-
sensitive functions. The Under Secretary of Transportation for Security,
the Transportation Security Administration, and employees of the
Transportation Security Administration whose duties include
responsibility for security-sensitive functions shall be subject to and
comply with such provisions in the same manner and to the same extent as
the Administrator of the Federal Aviation Administration, the Federal
Aviation Administration, and employees of the Federal Aviation
Administration whose duties include responsi-
bility for safety-sensitive functions, respectively.''; and
            (5) in the analysis for such chapter by inserting after the
        item relating to section 45106 the following:

``45107. Transportation Security Administration.''.

SEC. 140. CONFORMING AMENDMENTS TO SUBTITLE VII.

    (a) Records of Employment of Pilot Applicants.--Part A of subtitle
VII of title 49, United States Code, is amended--
            (1) by moving subsections (f), (g), and (h) of section 44936
        from section 44936, inserting them at the end of section 44703,
        and redesignating them as subsections (h), (i), and (j),
        respectively; and
            (2) in subsections (i) and (j) of section 44703 (as moved to
        the end of section 44703 by paragraph (1) of this subsection),
        by striking ``subsection (f)'' each place it appears and
        inserting ``subsection (h)''.

    (b) Investigations and Procedures.--Chapter 461 of such title is
amended--
            (1) in each of sections 46101(a)(1), 46102(a), 46103(a),
        46104(a), 46105(a), 46106, 46107(b), and 46110(a) by inserting
        after ``(or'' the following: ``the Under Secretary of
        Transportation for Security with respect to security duties and
        powers designated to be carried out by the Under Secretary or'';
            (2) <<NOTE: 49 USC 46101-46105, 46107, 46110.>> by striking
        ``or Administrator'' each place it appears and inserting ``,
        Under Secretary, or Administrator'';
            (3) in section 46101(a)(2) by striking ``of Transportation
        or the'' and inserting ``, Under Secretary, or'';
            (4) in section 46102(b) by striking ``and the
        Administrator'' and inserting ``, the Under Secretary, and the
        Administrator'';
            (5) in section 46102(c) by striking ``and Administrator''
        each place it appears and inserting ``, Under Secretary, and
        Administrator'';
            (6) in each of sections 46102(d) and 46104(b) by inserting
        ``the Under Secretary,'' after ``Secretary,'';
            (7) in the heading to section 46106 by striking ``Secretary
        of Transportation and Administrator of the Federal Aviation
        Administration'' and inserting ``Department of Transportation'';
        and
            (8) in the item relating to section 46106 of the analysis
        for such chapter by striking ``Secretary of Transportation and
        Administrator of the Federal Aviation Administration'' and
        inserting ``Department of Transportation''.

    (c) Administrative.--Section 40113 of such title is amended--
            (1) in subsection (a)--
                    (A) by inserting after ``(or'' the following: ``the
                Under Secretary of Transportation for Security with
                respect to

[[Page 115 STAT. 642]]

                security duties and powers designated to be carried out
                by the Under Secretary or''; and
                    (B) by striking ``or Administrator'' and inserting
                ``, Under Secretary, or Administrator''; and
            (2) in subsection (d)--
                    (A) by inserting after ``The'' the following:
                ``Under Secretary of Transportation for Security or
                the'';
                    (B) by striking ``Administration'' the second place
                it appears and inserting ``Transportation Security
                Administration or Federal Aviation Administration, as
                the case may be,''; and
                    (C) by striking ``the Administrator decides'' and
                inserting ``the Under Secretary or Administrator, as the

                case may be, decides''.

    (d) Penalties.--Chapter 463 of such title is amended--
            (1) in section 46301(d)(2)--
                    (A) by striking ``, chapter 449 (except sections
                44902, 44903(d), 44907(a)-(d)(1)(A) and (d)(1)(C)-(f),
                44908, and 44909),'';
                    (B) by inserting after the first sentence the
                following: ``The Under Secretary of Transportation for
                Security may impose a civil penalty for a violation of
                chapter 449 (except sections 44902, 44903(d), 44907(a)-
                (d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909) or a
                regulation prescribed or order issued under such chapter
                449.''; and
                    (C) by inserting ``Under Secretary or'' before
                ``Administrator shall'';
            (2) in each of paragraphs (3) and (4) of section 46301(d) by
        striking ``Administrator'' each place it appears and inserting
        ``Under Secretary or Administrator'';
            (3) in section 46301(d)(8) by striking ``Administrator'' and
        inserting ``Under Secretary, Administrator,'';
            (4) in section 46301(h)(2) by inserting after ``(or'' the
        fol-
        lowing: ``the Under Secretary of Transportation for Security
        with respect to security duties and powers designated to be
        carried out by the Under Secretary or'';
            (5) in section 46303(c)(2) by inserting ``or the Under
        Secretary of Transportation for Security'' after ``Federal
        Aviation Administration'';
            (6) in section 46311--
                    (A) by inserting after ``Transportation,'' the
                following: ``the Under Secretary of Transportation for
                Security with respect to security duties and powers
                designated to be carried out by the Under Secretary,'';
                    (B) by inserting after ``Secretary,'' each place it
                appears the following: ``Under Secretary,''; and
                    (C) by striking ``or Administrator'' each place it
                appears and inserting ``, Under Secretary, or
                Administrator'';
            (7) in each of sections 46313 and 46316 by inserting after
        ``(or'' the following: ``the Under Secretary of Transportation
        for Security with respect to security duties and powers
        designated to be carried out by the Under Secretary or''; and
            (8) in section 46505(d)(2) by inserting ``or the Under
        Secretary of Transportation for Security'' after ``Federal
        Aviation Administration''.

[[Page 115 STAT. 643]]

            (2) Suits by or against faa.--Any suit by or against the
        Federal Aviation Administration begun before the date of the
        enactment of this Act shall be continued, insofar as it involves
        a function retained and transferred under this Act, with the
        Transportation Security Administration (to the extent the suit
        involves functions transferred to the Transportation Security
        Administration under this Act) substituted for the Federal
        Aviation Administration.
            (3) Remanded cases.--If the court in a suit described in
        paragraph (1) remands a case to the Transportation Security
        Administration, subsequent proceedings related to such case
        shall proceed in accordance with applicable law and regulations
        as in effect at the time of such subsequent proceedings.

    (e) Continuance of Actions Against Officers.--No suit, action, or
other proceeding commenced by or against any officer in his official
capacity as an officer of the Federal Aviation Administration shall
abate by reason of the enactment of this Act. No cause of action by or
against the Federal Aviation Administration, or by or against any
officer thereof in his official capacity, shall abate by reason of the
enactment of this Act.
    (f) Exercise of Authorities.--Except as otherwise provided by law,
an officer or employee of the Transportation Security Administration
may, for purposes of performing a function transferred by this Act or
the amendments made by this Act, exercise all authorities under any
other provision of law that were available with respect to the
performance of that function to the official responsible for the
performance of the function immediately before the effective date of the
transfer of the function under this Act.
    (g) Act Defined.--In this section, the term ``Act'' includes the
amendments made by this Act.

SEC. 142. BUDGET SUBMISSIONS. <<NOTE: 31 USC 1105 note.>>

    The President's budget submission for fiscal year 2003 and each
fiscal year thereafter shall reflect the establishment of the
Transportation Security Administration.

SEC. 143. LAND ACQUISITION COSTS. <<NOTE: 49 USC 47108 note.>>

    In the case of a grant for land acquisition issued to an airport
under chapter 471 of title 49, United States Code, prior to January 1,
1995, the Secretary of Transportation may waive the provisions of
section 47108 of such title and provide an upward adjustment in the
maximum obligation of the United States under that chapter to assist the
airport in funding land acquisition costs (and associated eligible
costs) that increased as a result of a judicial order.
SEC. 144. LIMITATION ON LIABILITY FOR ACTS TO THWART CRIMINAL
                        VIOLENCE OR AIRCRAFT PIRACY.

    Section 44903 <<NOTE: 49 USC 44903.>> is amended by adding at the
end the following:

    ``(h) Limitation on Liability for Acts To Thwart Criminal Violence
or Aircraft Piracy.--An individual shall not be liable for damages in
any action brought in a Federal or State court arising out of the acts
of the individual in attempting to thwart an act of criminal violence or
piracy on an aircraft if that individual reasonably believed that such
an act of criminal violence or piracy was occurring or was about to
occur.''.

[[Page 115 STAT. 644]]

SEC. 141. SAVINGS PROVISION. <<NOTE: 49 USC 44901 note.>>

    (a) Transfer of Assets and Personnel.--Except as otherwise provided
in this Act, those personnel, property, and records employed, used,
held, available, or to be made available in connection with a function
transferred to the Transportation Security Administration by this Act
shall be transferred to the Transportation Security Administration for
use in connection with the functions transferred. Unexpended balances of
appropriations, allocations, and other funds made available to the
Federal Aviation Administration to carry out such functions shall also
be transferred to the Transportation Security Administration for use in
connection with the functions transferred.
    (b) Legal Documents.--All orders, determinations, rules,
regulations, permits, grants, loans, contracts, settlements, agreements,
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to
        become effective by the Federal Aviation Administration, any
        officer or employee thereof, or any other Government official,
        or by a court of competent jurisdiction, in the performance of
        any function that is transferred by this Act; and
            (2) that are in effect on the effective date of such
        transfer (or become effective after such date pursuant to their
        terms as in effect on such effective date), shall continue in
        effect according to their terms until modified, terminated,
        superseded, set aside, or revoked in accordance with law by the
        Under Secretary of Transportation for Security, any other
        authorized official, a court of competent jurisdiction, or
        operation of law.

    (c) Proceedings.--
            (1) In general.--The provisions of this Act shall not affect
        any proceedings or any application for any license pending
        before the Federal Aviation Administration at the time this Act
        takes effect, insofar as those functions are transferred by this
        Act; but such proceedings and applications, to the extent that
        they relate to functions so transferred, shall be continued.
        Orders shall be issued in such proceedings, appeals shall be
        taken therefrom, and payments shall be made pursuant to such
        orders, as if this Act had not been enacted; and orders issued
        in any such proceedings shall continue in effect until modified,
        terminated, superseded, or revoked by a duly authorized
        official, by a court of competent jurisdiction, or by operation
        of law.
            (2) Statutory construction.--Nothing in this subsection
        shall be deemed to prohibit the discontinuance or modification
        of any proceeding described in paragraph (1) under the same
        terms and conditions and to the same extent that such pro-
        ceeding could have been discontinued or modified if this Act
        had not been enacted.
            (3) Orderly transfer.--The Secretary of Transportation is
        authorized to provide for the orderly transfer of pending
        proceedings from the Federal Aviation Administration.

    (d) Suits.--
            (1) In general.--This Act shall not affect suits commenced
        before the date of the enactment of this Act, except as provided
        in paragraphs (2) and (3). In all such suits, proceeding shall
        be had, appeals taken, and judgments rendered in the same manner
        and with the same effect as if this Act had not been enacted.

[[Page 115 STAT. 645]]

SEC. 145.  <<NOTE: 49 USC 40101 note.>> AIR CARRIERS REQUIRED TO
                        HONOR TICKETS FOR SUSPENDED SERVICE.

    (a) In General.--Each air carrier that provides scheduled air
transportation on a route shall provide, to the extent practicable, air
transportation to passengers ticketed for air transportation on that
route by any other air carrier that suspends, interrupts, or
discontinues air passenger service on the route by reason of insolvency
or bankruptcy of the other air carrier.
    (b) Passenger Obligation.-- <<NOTE: Deadline.>> An air carrier is
not required to provide air transportation under subsection (a) to a
passenger unless that passenger makes alternative arrangements with the
air carrier for such transportation within 60 days after the date on
which that passenger's air transportation was suspended, interrupted, or
discontinued (without regard to the originally scheduled travel date on
the ticket).

    (c) Sunset.--This section does not apply to air transportation the
suspension, interruption, or discontinuance of which occurs more than 18
months after the date of enactment of this Act.

SEC. 146. AIRCRAFT OPERATIONS IN ENHANCED CLASS B
            AIRSPACE. <<NOTE: Federal Register, publication.>>

    Upon request of an operator of an aircraft affected by the
restrictions imposed under Notice to Airmen FDC 1/0618 issued by the
Federal Aviation Administration, or any other notice issued after
September 11, 2001, and prior to the date of enactment of this Act that
restricts the ability of United States registered aircraft to conduct
operations under part 91 of title 14, Code of Federal Regulations, in
enhanced class B airspace (as defined by such Notice), such restrictions
shall cease to be in effect for the affected class of operator beginning
on the 30th day following the request, unless the Secretary of
Transportation publishes a notice in the Federal Register before such
30th day reimposing the restriction and explaining the reasons for the
restriction.

SEC. 147. AVIATION WAR RISK INSURANCE.

    Section 44306(b) of title 49, United States Code, is amended by
striking ``60 days'' each place it appears and inserting ``1 year''.

                     TITLE II--LIABILITY LIMITATION

SEC. 201. AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT
                        AMENDMENTS.

    (a) Recovery of Collateral Source Obligations of Terrorists.--
Section 405(c)(3)(B)(i) of the Air Transportation Safety and System
Stabilization Act (49 U.S.C. 40101 note) is amended by striking
``obligations.'' and inserting ``obligations, or to a civil action
against any person who is a knowing participant in any conspiracy to
hijack any aircraft or commit any terrorist act.''.
    (b) Extension of Liability Relief to Aircraft Manufacturers and
Others.--Section 408 of that Act <<NOTE: 49 USC 40101 note.>> is
amended--
            (1) by striking ``air carrier'' in the section heading;
            (2) by striking subsection (a) and inserting the following:

[[Page 115 STAT. 646]]

    ``(a) In General.--
            ``(1) Liability limited to insurance coverage.--
        Notwithstanding any other provision of law, liability for all
        claims, whether for compensatory or punitive damages or for
        contribution or indemnity, arising from the terrorist-related
        aircraft crashes of September 11, 2001, against an air carrier,
        aircraft manufacturer, airport sponsor, or person with a
        property interest in the World Trade Center, on September 11,
        2001, whether fee simple, leasehold or easement, direct or
        indirect, or their directors, officers, employees, or agents,
        shall not be in an amount greater than the limits of liability
        insurance coverage maintained by that air carrier, aircraft
        manufacturer, airport sponsor, or person.
            ``(2) Willful defaults on rebuilding obligation.--Paragraph
        (1) does not apply to any such person with a property interest
        in the World Trade Center if the Attorney General determines,
        after notice and an opportunity for a hearing on the record,
        that the person has defaulted willfully on a contractual
        obligation to rebuild, or assist in the rebuilding of, the World
        Trade Center.
            ``(3) Limitations on liability for new york city.--
        Liability for all claims, whether for compensatory or punitive
        damages or for contribution or indemnity arising from the
        terrorist-related aircraft crashes of September 11, 2001,
        against the City of New York shall not exceed the greater of the
        city's insurance coverage or $350,000,000. If a claimant who is
        eligible to seek compensation under section 405 of this Act,
        submits a claim under section 405, 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,
        including any such action against the City of New York. The
        preceding sentence does not apply to a civil action to recover
        collateral source obligations.''; and
            (3) by adding at the end of subsection (c) the following:
        ``Subsections (a) and (b) do not apply to civil actions to
        recover collateral source obligations. Nothing in this section
        shall in any way limit any liability of any person who is
        engaged in the business of providing air transportation security
        and who is not an airline or airport sponsor or director,
        officer, or employee of an airline or airport sponsor.''.

    (c) Limitation of United States Subrogation Right.--Section 409 of
that Act <<NOTE: 49 USC 40101 note.>> is amended by striking ``title.''
and inserting ``title, subject to the limitations described in section
408.''.

    (d) Definitions.--Section 402 of that Act <<NOTE: 49 USC 40101
note.>> is amended--
            (1) by adding at the end of paragraph (1) the following:
        ``The term `air carrier' does not include a person, other than
        an air carrier, engaged in the business of providing air
        transportation security.''.
            (2) by redesignating paragraphs (3) through (8) as
        paragraphs (5) through (10), respectively; and

[[Page 115 STAT. 647]]

            (3) by inserting after paragraph (2) the following:
            ``(3) Aircraft manufacturer.--The term `aircraft
        manufacturer' means any entity that manufactured the aircraft or
        any parts or components of the aircraft involved in the
        terrorist related aircraft crashes of September 11, 2001,
        including employees and agents of that entity.
            ``(4) Airport sponsor.--The term `airport sponsor' means the
        owner or operator of an airport (as defined in section 40102 of
        title 49, United States Code).''.

    Approved November 19, 2001.

LEGISLATIVE HISTORY--S. 1447 (H.R. 3150):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 107-296 (Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 147 (2001):
            Oct. 10, 11, considered and passed Senate.
            Nov. 6, considered and passed House, amended, in lieu of
                H.R. 3150.
            Nov. 16, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 37 (2001):
            Nov. 19, Presidential statement.

                                  <all>
