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<PRE>[DOCID: f:s1447eah.txt]
                In the House of Representatives, U. S.,

                                                      November 6, 2001.

    Resolved, That the bill from the Senate (S. 1447) entitled ``An Act to 
improve aviation security, and for other purposes'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; AMENDMENTS TO TITLE 49, UNITED STATES CODE; 
              TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Airport Security 
Federalization Act of 2001''.
    (b) Amendments to Title 49, United States Code.--Except as 
otherwise specifically provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision of law, the reference shall be considered to 
be made to a section or other provision of title 49, United States 
Code.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; amendments to title 49, United States Code; table 
                            of contents.

                       TITLE I--AVIATION SECURITY

Sec. 101. Transportation Security Administration.
Sec. 102. Screening of passengers and property.
Sec. 103. Security programs.
Sec. 104. Employment standards and training.
Sec. 105. Deployment of Federal air marshals.
Sec. 106. Enhanced security measures.
Sec. 107. Criminal history record check for screeners and others.
Sec. 108. Passenger and baggage screening fee.
Sec. 109. Authorizations of appropriations.
Sec. 110. Limitation on liability for acts to thwart criminal violence 
                            or aircraft piracy.
Sec. 111. Passenger manifests.
Sec. 112. Transportation security oversight board.
Sec. 113. Airport improvement programs.
Sec. 114. Technical corrections.
Sec. 115. Alcohol and controlled substance testing.
Sec. 116. Conforming amendments to subtitle VII.
Sec. 117. Savings provision.
Sec. 118. Budget submissions.
Sec. 119. Aircraft operations in enhanced class B airspace.
Sec. 120. Waivers for certain isolated communities.
Sec. 121. Assessments of threats to airports.
Sec. 122. Requirement to honor passenger tickets of other carriers.
Sec. 123. Sense of Congress on certain aviation matters.

                     TITLE II--VICTIMS COMPENSATION

Sec. 201. Limitation on liability for damages arising out of crashes of 
                            September 11, 2001.

                       TITLE I--AVIATION SECURITY

SEC. 101. TRANSPORTATION SECURITY ADMINISTRATION.

    (a) In General.--Chapter 1 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 Pecuniary Interests.--The Under Secretary may 
not have a pecuniary interest in, or 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.--
            ``(1) In general.--The Under Secretary shall be responsible 
        for security in all modes of transportation, including--
                    ``(A) carrying out chapter 449 relating to civil 
                aviation security; and
                    ``(B) security responsibilities over nonaviation 
                modes of transportation that are exercised by 
                Administrations of the Department of Transportation 
                (other than the Federal Aviation Administration).
            ``(2) Schedule for assumption of civil aviation security 
        functions.--Not later than 3 months after the date of enactment 
        of this section, the Under Secretary shall assume civil 
        aviation security functions and responsibilities under chapter 
        449 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. The Under Secretary shall publish an 
        appropriate notice of the transfer of such security functions 
        and responsibilities before assuming the functions and 
        responsibilities.
            ``(3) Assignment of contracts.--Upon request of the Under 
        Secretary, an air carrier or foreign air carrier carrying out a 
        screening or security function under chapter 449 may enter into 
        an agreement with the Under Secretary to transfer any contract 
        the carrier has entered into with respect to carrying out such 
        function, before the Under Secretary assumes responsibility of 
        such function.
    ``(e) Additional Duties and Powers.--In addition to carrying out 
the functions specified in subsection (d), 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) supervise all airport security and screening services 
        using Federal uniformed personnel;
            ``(7) 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;
            ``(8) enforce security-related regulations and 
        requirements;
            ``(9) identify and undertake research and development 
        activities necessary to enhance transportation security;
            ``(10) inspect, maintain, and test security facilities, 
        equipment, and systems;
            ``(11) ensure the adequacy of security measures for the 
        transportation of cargo;
            ``(12) oversee the implementation, and ensure the adequacy, 
        of security measures at airports and other transportation 
        facilities;
            ``(13) perform background checks for airport security 
        screening personnel, individuals with unescorted access to 
        secure areas of airports, and other transportation security 
        personnel;
            ``(14) develop standards for the hiring and retention of 
        security screening personnel;
            ``(15) train and test security screening personnel; and
            ``(16) 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.
    ``(f) Acquisitions.--
            ``(1) In general.--The Under Secretary is authorized--
                    ``(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 
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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 (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 located in Atlantic City, New 
                Jersey.
            ``(2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by the 
        Government of the United States.
    ``(g) 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 this section, by law to the Under 
Secretary.
    ``(h) 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 disapproval by 
                the Transportation Security Oversight Board established 
                under section 44951. Any regulation or security 
                directive issued under this paragraph shall remain 
                effective until disapproved by the Board or rescinded 
                by the Under Secretary.
    ``(i) 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).
    ``(j) 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, except that 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.
    ``(k) 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 and materials by the Transportation Security Administration, 
except that 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 and materials as 
the Under Secretary considers appropriate.
    ``(l) 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.''.
    (b) Conforming Amendment.--The analysis for chapter 1 is amended by 
adding at the end the following:

``114. Transportation Security Administration.''.
    (c) Position of Under Secretary in Executive Schedule.--Section 
5313 of title 5, United States Code, is amended by adding at the end 
the following:
            ``The Under Secretary of Transportation for Security''.
    (d) Personnel of Other Agencies.--The last sentence of section 
106(m) is amended by inserting ``personnel and'' before ``supplies and 
equipment''.
    (e) Security and Research and Development Activities.--Section 
40119 is amended--
            (1) in subsection (a) by striking ``Administrator of the 
        Federal Aviation Administration'' and inserting ``Under 
        Secretary of Transportation for Security''; and
            (2) in subsections (b) and (c) by striking 
        ``Administrator'' each place it appears and inserting ``Under 
        Secretary''.
    (f) References to FAA in Chapter 449.--Chapter 449 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) by striking ``Administrator'' each place it appears in 
        such chapter (except in subsections (f) and (h) of section 
        44936) and inserting ``Under Secretary'';
            (8) by striking ``Administrator's'' each place it appears 
        in such chapter and inserting ``Under Secretary's''; and
            (9) 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''.

SEC. 102. SCREENING OF PASSENGERS AND PROPERTY.

    Section 44901 of such title is amended--
            (1) in subsection (a)--
                    (A) by striking ``a cabin of''; and
                    (B) by striking ``a w
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eapon-detecting'' and all that 
                follows through the period at the end of the second 
                sentence and inserting ``persons and procedures 
                acceptable to the Under Secretary (or the Administrator 
                before responsibilities under this subsection are 
                assumed by the Under Secretary).''; and
            (2) by adding at the end the following:
    ``(d) Assumption of Screening Function by Under Secretary.--
            ``(1) In general.--The responsibility for the screening of 
        passengers and property on passenger aircraft in air 
        transportation that originates in the United States or 
        intrastate air transportation that, on the date of enactment of 
        this subsection, was performed by an employee or agent of an 
        air carrier, intrastate air carrier, or foreign air carrier 
        shall be assumed by the Under Secretary.
            ``(2) Additional screening authority.--The Under Secretary 
        may perform any such additional screening of passengers and 
        property on passenger aircraft in air transportation that 
        originates in the United States or intrastate air 
        transportation that the Under Secretary deems necessary to 
        enhance aviation security.
    ``(e) Supervision of Screening.--All screening of passengers and 
property at airports under this section shall be supervised by 
uniformed Federal personnel of the Transportation Security 
Administration who shall have the power to order the dismissal of any 
individual performing such screening.
    ``(f) 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.
    ``(g) Deputization of Airport Screening Personnel.--The Under 
Secretary shall deputize, for enforcement of such Federal laws as the 
Under Secretary determines appropriate, all airport screening personnel 
as Federal transportation security agents and shall ensure that such 
agents operate under common standards and common uniform, insignia, and 
badges. The authority to arrest an individual may be exercised only by 
supervisory personnel who are sworn, full-time law enforcement 
officers.''.

SEC. 103. SECURITY PROGRAMS.

    Section 44903(c) is amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking ``a law enforcement presence'' and 
                inserting ``a law enforcement or military presence''; 
                and
                    (B) by inserting after ``at each of those 
                airports'' the following: ``and at each location at 
                those airports where passengers are screened''; and
            (2) in paragraph (2)(C)(i) by striking ``shall issue an 
        amendment to air carrier security programs to require'' and 
        inserting ``shall require''.

SEC. 104. EMPLOYMENT STANDARDS AND TRAINING.

    (a) Employment Standards.--Section 44935(a) is amended--
            (1) in the first sentence by inserting ``, personnel who 
        screen passengers and property,'' after ``air carrier 
        personnel'';
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking the period at the end of paragraph (5) and 
        inserting a semicolon; and
            (4) by adding at the end the following:
            ``(6) a requirement that all personnel who screen 
        passengers and property be citizens of the United States;
            ``(7) a requirement that any private security firm retained 
        to provide airport security services be owned and controlled by 
        a citizen of the United States, to the extent that the 
        President determines that there are firms owned and controlled 
        by such citizens;
            ``(8) minimum compensation levels, when appropriate;
            ``(9) a preference for the hiring of any individual who is 
        a member or former member of the armed forces and who is 
        entitled, under statute, to retired, retirement, or retainer 
        pay on account of service as a member of the armed forces; and
            ``(10) a preference for the hiring of any individual who is 
        a former employee of an air carrier and whose employment with 
        the air carrier was terminated as a result of a reduction in 
        the workforce of the air carrier.''.
    (b) Final Rules Establishing Training Standards for Screeners.--
Section 44935(e)(1) is amended by striking ``May 31, 2001'' and 
inserting ``6 months after the date of enactment of the Airport 
Security Federalization Act of 2001''.
    (c) Employment Standards for Screeners; Uniforms.--Section 44935 is 
amended by adding at the end the following:
    ``(g) Training for All Screeners, Supervisors, and Instructors.--
            ``(1) In general.--The Under Secretary shall require any 
        individual who screens passengers and property pursuant to 
        section 44901, and the supervisors and instructors of such 
        individuals, to have satisfactorily completed all initial, 
        recurrent, and appropriate specialized training necessary to 
        ensure compliance with the requirements of this section.
            ``(2) On-the-job portion of screener's training.--
        Notwithstanding paragraph (1), the Under Secretary may permit 
        an individual, during the on-the-job portion of training, to 
        perform security functions if the individual is closely 
        supervised and does not make independent judgments as to 
        whether persons or property may enter secure areas or aircraft 
        or whether cargo may be loaded aboard aircraft without further 
        inspection.
            ``(3) Effect of screener's failure of operation test.--The 
        Under Secretary may not allow an individual to perform a 
        screening function after the individual has failed an 
        operational test related to that function until the individual 
        has successfully completed remedial training.
    ``(h) Uniforms.--The Under Secretary shall require any individual 
who screens passengers and property pursuant section 44901 to be 
attired in a uniform, approved by the Under Secretary, while on 
duty.''.
    (d) Interim Employment Standards for Screening Personnel.--In the 
period beginning 30 days after the date of the enactment of this Act 
and ending on the first date that a final rule issued by the Under 
Secretary of Transportation for Security under section 44935(e)(1) of 
title 49, United States Code, takes effect, the following requirements 
shall apply to an individual who screens passengers and property 
pursuant to section 44901 of such title (in this subsection referred to 
as a ``screener''):
            (1) Education.--A screener shall have a high school 
        diploma, a general equivalency diploma, or a combination of 
        education and experience that the Under Secretary has 
        determined to have equipped the individual to perform the 
        duties of the screening position.
            (2) Basic aptitudes and physical abilities.--A screener 
        shall have basic aptitudes and physical abilities (including 
        color perception, visual and aural acuity, physical 
        coordination, and motor skills) and shall have--
                    (A) the ability to identify the components that may 
                constitute an explosive or an incendiary device;
                    (B) the ability to identify objects that appear to 
                match those items described in all current regulations, 
                security directives, and emergency amendments;
                    (C) for screeners operating X-ray and explosives 
                detection system equipment, the ability to distinguish 
                on the equipment monitors the appropriate images;
                    (D) for screeners operating any screening 
                equip
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ment, the ability to distinguish each color 
                displayed on every type of screening equipment and 
                explain what each color signifies;
                    (E) the ability to hear and respond to the spoken 
                voice and to audible alarms generated by screening 
                equipment in an active checkpoint or other screening 
                environment;
                    (F) for screeners performing manual searches or 
                other related operations, the ability to efficiently 
                and thoroughly manipulate and handle such baggage, 
                containers, cargo, and other objects subject to 
                security processing;
                    (G) for screeners performing manual searches of 
                cargo, the ability to use tools that allow for opening 
                and closing boxes, crates, or other common cargo 
                packaging;
                    (H) for screeners performing screening of cargo, 
                the ability to stop the transfer of suspect cargo to 
                passenger air carriers;
                    (I) for screeners performing pat-down or hand-held 
                metal detector searches of persons, sufficient 
                dexterity and capability to thoroughly conduct those 
                procedures over a person's entire body; and
                    (J) the ability to demonstrate daily a fitness for 
                duty without any impairment due to illegal drugs, sleep 
                deprivation, medication, or alcohol.
            (3) Command of english language.--A screener shall be able 
        to read, speak, write, and understand the English language well 
        enough to--
                    (A) carry out written and oral instructions 
                regarding the proper performance of screening duties;
                    (B) read English language identification media, 
                credentials, airline tickets, documents, air waybills, 
                invoices, and labels on items normally encountered in 
                the screening process;
                    (C) provide direction to and understand and answer 
                questions from English-speaking persons undergoing 
                screening or submitting cargo for screening; and
                    (D) write incident reports and statements and log 
                entries into security records in the English language.

SEC. 105. DEPLOYMENT OF FEDERAL AIR MARSHALS.

    (a) In General.--Subchapter I of chapter 449 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) shall--
            ``(1) provide for deployment of Federal air marshals on 
        selected passenger flights of air carriers in air 
        transportation or intrastate air transportation;
            ``(2) provide for appropriate background and fitness checks 
        for candidates for appointment as Federal air marshals;
            ``(3) provide for appropriate training, supervision, and 
        equipment of Federal air marshals at the facility of the 
        Federal Aviation Administration in New Jersey;
            ``(4) 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) 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; and
            ``(6) provide, in choosing among applicants for a position 
        as a Federal air marshal, a preference for the hiring of a 
        pilot of an air carrier whose employment with the air carrier 
        was terminated as a result of a reduction in the workforce of 
        the air carrier if the pilot is otherwise qualified for the 
        position.
    ``(b) Flights in Foreign Air Transportation.--The Under Secretary 
shall work with appropriate aeronautic authorities of foreign 
governments under section 44907 to address security concerns on 
passenger flights in foreign air transportation.
    ``(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 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
                            ``(ii) received after September 11, 2001, 
                        by a Federal air marshal of the Department of 
                        Transportation;''.

SEC. 106. ENHANCED SECURITY MEASURES.

    (a) In General.--Subchapter I of chapter 449 is further amended by 
adding at the end the following:
``Sec. 44918. Enhanced security measures
    ``(a) In General.--To the extent the Under Secretary of 
Transportation for Security determines appropriate, the Under Secretary 
shall take the following actions:
            ``(1) After consultation with the Administrator of the 
        Federal Aviation Administration, develop procedures and 
        authorize equipment for pilots and other members of the flight 
        crew to use to defend an aircraft against acts of criminal 
        violence or aircraft piracy.
            ``(2) After consultation with the Administrator, develop 
        and implement methods to--
                    ``(A) restrict the opening of a cockpit door during 
                a flight;
                    ``(B) fortify cockpit doors to deny access from the 
                cabin to the cockpit;
                    ``(C) use video monitors or other devices to alert 
                pilots in the cockpit to activity in the cabin; and
                    ``(D) ensure continuous operation of an aircraft 
                transponder in the event of an emergency.
            ``(3) Impose standards for the screening or inspection of 
        persons and vehicles having access to secure areas of an 
        airport.
            ``(4) Require effective 911 emergency call capability for 
        telephones serving passenger aircraft and passenger trains.
            ``(5) Provide for the use of voice stress analysis 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.
            ``(6) Develop standards and procedures for the issuance, 
        renewal, and revocation of a certificate of qualification for 
        individuals who screen passengers and property at an airport.
            ``(7) Establish performance goals for individuals described 
        in paragraph (6), provide for the use of threat image 
        projection or similar devices to test such individuals, and 
        establish procedures to revoke the certification of such 
        individuals if the individuals fail to maintain a required 
        level of proficiency.
            ``(8) In consultation with air carriers and other 
        government agencies, establish policies and procedures 
        req
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uiring air carriers to use information from government 
        agencies to identify individuals on passenger lists who may be 
        a threat to civil aviation and, if such an individual is 
        identified, to notify appropriate law enforcement agencies and 
        prohibit the individual from boarding an aircraft.
            ``(9) Provide for the enhanced use of computer profiling to 
        more effectively screen passengers and property that will be 
        carried in the cabin of an aircraft.
            ``(10) Provide for the use of electronic technology that 
        positively verifies the identity of each employee and law 
        enforcement officer who enters a secure area of an airport.
            ``(11) After consultation with the Administrator, provide 
        for the installation of switches in an aircraft cabin to enable 
        flight crews to discreetly notify the pilots in the case of a 
        security breach occurring in the cabin.
            ``(12) Update training procedures used by the Federal 
        Aviation Administration, law enforcement agencies, air 
        carriers, and flight crews during hijackings to include 
        measures relating to suicidal hijackers and other extremely 
        dangerous events not currently described in the training 
        procedures.
            ``(13) Provide for background checks of individuals seeking 
        instruction (including training through the use of flight 
        simulators) in flying aircraft that has a minimum certificated 
        takeoff weight of more than 12,500 pounds.
            ``(14) 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.
            ``(15) Require more thorough background checks of persons 
        described in subparagraphs (A), (B)(i), and (B)(ii) of section 
        44936(a) and paragraph (13) of this subsection, including a 
        review of immigration records, law enforcement databases, and 
        records of other government and international agencies to help 
        determine whether the person may be a threat to civil aviation.
            ``(16) 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.
            ``(17) Establish requirements under which air carriers, 
        under the supervision of the Under Secretary, could 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.
            ``(18) In consultation with the Commissioner of Food and 
        Drugs, develop security procedures under which a medical 
        product to be transported on a flight of an air carrier would 
        not be subject to manual or x-ray inspection if conducting such 
        an inspection would irreversibly damage the product.
            ``(19) 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 terms and 
        conditions as may be established by the Under Secretary or the 
        air carrier, including imposing additional charges by the air 
        carrier.
            ``(20) Provide for the use of wireless and wire line data 
        technologies enabling 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.
    ``(b) Airworthiness Objections by FAA.--
            ``(1) In general.--The Under Secretary shall not take an 
        action under subsection (a) if the Administrator notifies the 
        Under Secretary that the action could adversely affect the 
        airworthiness of an aircraft.
            ``(2) Review by secretary.--Notwithstanding paragraph (1), 
        the Under Secretary may take an action under subsection (a), 
        after receiving a notification concerning the action from the 
        Administrator under paragraph (1), if the Secretary of 
        Transportation subsequently approves the action.
    ``(c) View of NTSB.--In taking any action under subsection (a) that 
could affect safety, the Under Secretary shall solicit and give great 
weight to the views of the National Transportation Safety Board.
    ``(d) Property Security Program.--
            ``(1) Checked baggage.--
                    ``(A) Final deadline for screening.--A system must 
                be in operation to screen all checked baggage at all 
                airports in the United States no later than December 
                31, 2003.
                    ``(B) Use of explosive detection equipment.--The 
                Under Secretary shall ensure that explosive detection 
                equipment installed at airports to screen checked 
                baggage is used to the maximum extent possible.
                    ``(C) Installation of additional explosive 
                detection equipment.--The Under Secretary shall install 
                additional explosive detection equipment at airports as 
                soon as possible to ensure that all checked baggage is 
                screened before being placed in an aircraft.
                    ``(D) Interim bag-match programs.--Until the Under 
                Secretary has installed enough explosive detection 
                equipment at airports to ensure that all checked 
                baggage is screened, the Under Secretary shall require 
                air carriers to implement bag-match programs that 
                ensure that no checked baggage is placed in an aircraft 
                unless the passenger who checks the baggage is aboard 
                the aircraft.
            ``(2) Cargo deadline.--A system must be in operation to 
        screen all cargo that is to be transported in passenger 
        aircraft in air transportation and intrastate air 
        transportation as soon as practicable after the date of 
        enactment of this paragraph.
    ``(e) Limitation on Certain Actions.--The Secretary of 
Transportation shall not take any action to prevent a pilot of an air 
carrier from taking a firearm into the cockpit of the aircraft if the 
policy of the air carrier permits its pilots to be armed and the pilot 
has successfully completed a training program for the carriage of 
firearms aboard aircraft that is acceptable to the Under Secretary.
    ``(f) Report.--Not later than 6 months after the date of enactment 
of this section, and annually thereafter until the Under Secretary 
determines whether or 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, and on the 
progress the Under Secretary is making in carrying out subsection 
(d).''.
    (b) Conforming Amendment.--The analysis for chapter 449 is amended 
by inserting after the item relating to section 44917 the following:

``44918. Enhanced security measures.''.
    (c) Repeal of Existing Reporting Requirement.--
            (1) In general.--Section 44938 is amended-
2000
-
                    (A) in the section heading by striking ``Reports'' 
                and inserting ``Report''; and
                    (B) by striking ``(a) Transportation Security.--'' 
                and all that follows through ``(b) Screening and 
                Foreign Air Carrier and Airport Security.--The 
                Administrator'' and inserting ``The Under Secretary of 
                Transportation for Security''.
            (2) Chapter analysis.--The analysis for chapter 449 is 
        amended by striking the item relating section 44938 and 
        inserting the following:

``44938. Report.''.

SEC. 107. CRIMINAL HISTORY RECORD CHECK FOR SCREENERS AND OTHERS.

    Section 44936(a) is amended--
            (1) in paragraph (1)(E)(iv)(II) by striking the period at 
        the end and inserting ``; except that at such an airport, the 
        airport operator, air carriers, and certified screening 
        companies may elect to implement the requirements of this 
        subparagraph in advance of the effective date if the Under 
        Secretary (or the Administrator of the Federal Aviation 
        Administration before the transfer of civil aviation security 
        responsibilities to the Under Secretary) approves of such early 
        implementation and if the airport operator, air carriers, and 
        certified screening companies amend their security programs to 
        conform those programs to the requirements of this 
        subparagraph.'';
            (2) by adding at the end of paragraph (1) the following:
                    ``(G) Background checks of current employees.--A 
                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) shall be required for any 
                individual who currently has unescorted access to an 
                aircraft of an air carrier or foreign air carrier, 
                unescorted access to a secured area of an airport in 
                the United States that serves an air carrier or foreign 
                air carrier, or is responsible for screening passengers 
                or property, or both, unless that individual was 
                subject to such a background check before the 
                individual began his or her current employment or is 
                exempted from such a check under section 107.31(m) of 
                title 14, Code of Federal Regulations.''; and
            (3) in paragraph (2)--
                    (A) by striking ``or airport operator'' and 
                inserting ``airport operator, or certificated screening 
                company''; and
                    (B) by adding at the end the following: ``In this 
                paragraph, the term `certificated screening company' 
                means a screening company to which the Under Secretary 
                has issued a screening company certificate authorizing 
                the screening company to provide security screening.''.

SEC. 108. PASSENGER AND BAGGAGE SCREENING FEE.

    (a) In General.--Subchapter II of chapter 449 is amended by adding 
at the end the following:
``Sec. 44939. Passenger and baggage screening fee
    ``(a) General Authority.--
            ``(1) Passenger fees.--The Under Secretary of 
        Transportation for Security shall impose a 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 costs of the screening of 
        passengers and property pursuant to section 44901(d). Such 
        costs shall be limited to the salaries and benefits of 
        screening personnel and their direct supervisors, training of 
        screening personnel, and acquisition, operation, and 
        maintenance of equipment used by screening personnel and shall 
        be determined by the Under Secretary.
            ``(2) Air carrier fees.--
                    ``(A) Authority.--In addition to the fee imposed 
                pursuant to paragraph (1), and only to the extent that 
                such fee is insufficient to pay for the costs of the 
                screening of passengers and property pursuant to 
                section 44901(d), the Under Secretary may impose a fee 
                on air carriers to pay for the difference between any 
                such costs and the amount collected from such fee.
                    ``(B) Limitation.--The amounts of fees collected 
                under this paragraph may not exceed, in the aggregate, 
                the amounts paid in calendar year 2000 by air carriers 
                for screening activities described in paragraph (1) as 
                determined by the Under Secretary.
    ``(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 on a 1-way trip in air transportation or intrastate 
air transportation that originates at an airport in the United States.
    ``(d) Imposition of Fee.--
            ``(1) In general.--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) Subsequent modification of fee.--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.
            ``(3) Limitation on collection.--No fee may be collected 
        under this section, except to the extent that expenditure of 
        such 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.
            ``(2) Fees collected by air carrier.--A fee imposed under 
        subsection (a)(1) shall be collected by the air carrier or 
        foreign air carrier providing the 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.
    ``(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
2000
 that required.''.
    (b) Conforming Amendment.--The analysis for chapter 449 is amended 
by adding after the item relating to section 44938 the following:

``44939. Passenger and baggage screening fee.''.
    (c) Exemptions.--Section 44915 is amended by striking ``and 44936'' 
and inserting ``44936, and 44939''.

SEC. 109. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) In General.--Subchapter II of chapter 449 is further amended by 
adding at the end the following:
``Sec. 44940. Authorizations of appropriations
    ``(a) Operations of Transportation Security Administration.--There 
are authorized to be appropriated such sums as may be necessary for the 
operations of the Transportation Security Administration, including the 
functions of the Administration under section 44901(d) if the fees 
imposed under section 44939 are insufficient to cover the costs of such 
functions.
    ``(b) Grants for Aircraft Security.--There is authorized to be 
appropriated $500,000,000 for the Secretary of Transportation to make 
grants to 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.
    ``(c) Airport Security.--
            ``(1) In general.--There is authorized to be appropriated 
        to the Secretary for fiscal years 2002 and 2003 a total of 
        $1,500,000,000 to reimburse airport operators 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.
            ``(2) Conditions.--Before providing financial assistance to 
        an airport operator with funds appropriated pursuant to 
        paragraph (1), the Secretary shall require the operator to 
        provide assurances that the operator will--
                    ``(A) 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; and
                    ``(B) provide to the Secretary an itemized list of 
                costs incurred by the operator to comply with the 
                security requirements described in paragraph (1), 
                including costs relating to landing fees, automobile 
                parking revenues, rental cars, restaurants, and gift 
                shops.''.
    (b) Conforming Amendment.--The analysis for chapter 449 is amended 
by adding after the item relating to section 44939 the following:

``44940. Authorizations of appropriations.''.

SEC. 110. LIMITATION ON LIABILITY FOR ACTS TO THWART CRIMINAL VIOLENCE 
              OR AIRCRAFT PIRACY.

    Section 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 in good faith believed that 
such an act of criminal violence or piracy was occurring or was about 
to occur.''.

SEC. 111. PASSENGER MANIFESTS.

    Section 44909 is amended by adding at the end the following:
    ``(c) Flights in Foreign Air Transportation to the United States.--
            ``(1) In general.--Not later than 60 days after the date of 
        enactment of this subsection, the Under Secretary of 
        Transportation for Security shall require each air carrier and 
        foreign air carrier operating a passenger flight in foreign air 
        transportation to the United States to provide to the Under 
        Secretary by electronic transmission a passenger and crew 
        manifest containing the information specified in paragraph (2).
            ``(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) The passenger name record of each passenger.
                    ``(G) Such other information as the Under 
                Secretary, by regulation, determines is reasonably 
                necessary to ensure aviation safety.
            ``(3) Transmission of manifest.--Subject to paragraph (4), 
        a passenger and crew manifest required for a flight under 
        paragraph (1) shall be transmitted to the Under Secretary in 
        advance of the aircraft landing in the United States in such 
        manner, time, and form as the Under Secretary prescribes.
            ``(4) Transmission of manifests to other federal 
        agencies.--The Under Secretary may require by regulation that a 
        passenger and crew manifest required for a flight under 
        paragraph (1) be transmitted directly to the head of another 
        Federal agency.''.

SEC. 112. TRANSPORTATION SECURITY OVERSIGHT BOARD.

    (a) In General.--Chapter 449 is amended by adding at the end the 
following:

       ``SUBCHAPTER III--TRANSPORTATION SECURITY OVERSIGHT BOARD

``Sec. 44951. Transportation Security Oversight Board
    ``(a) In General.--There is established a board to be known as a 
`Transportation Security Oversight Board'.
    ``(b) Membership.--
            ``(1) Number and appointment.--The Board shall be composed 
        of 5 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 the Treasury (or the 
                Secretary's designee).
                    ``(D) The Secretary of Defense (or the Secretary's 
                designee).
                    ``(E) One member appointed by the President to 
                represent the National Security Council or 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(h)(2) within 30 
        days after the date of issuance of such regulation or 
        directive;
            ``(2) share intelligence information with the Under 
        Secretary;
            ``(3) review--
                    ``(A) plans for transportation security;
                    ``(B) standards established for performance of 
                airport security screening personnel;
                    ``(C) compensation being paid to airport security 
                screening personnel;
                    ``(D) procurement of security equipment;
              
2000
      ``(E) selection, performance, and compensation of 
                senior executives in the Transportation Security 
                Administration;
                    ``(F) waivers granted by the Under Secretary under 
                section 120 of the Airport Security Federalization Act 
                of 2001 and may ratify or disapprove such waivers; and
                    ``(G) budget requests of the Under Secretary; and
            ``(4) make recommendations to the Under Secretary regarding 
        matters reviewed under paragraph (3).
    ``(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 when 
classified, sensitive security information, or information protected in 
accordance with section 40119(b), will be discussed.
``Sec. 44952. Advisory council
    ``(a) Establishment.--The Under Secretary of Transportation for 
Security shall establish an advisory council to be known as the 
`Transportation Security Advisory Council'.
    ``(b) Membership.--The Council shall be composed of members 
appointed by the Under Secretary to represent all modes of 
transportation, transportation labor, screening companies, 
organizations representing families of victims of transportation 
disasters, and other entities affected or involved in the 
transportation security process.
    ``(c) Duties.--The Council shall provide advice and counsel to the 
Under Secretary on issues which affect or are affected by the 
operations of the Transportation Security Administration. The Council 
shall function as a resource for management, policy, spending, and 
regulatory matters under the jurisdiction of the Transportation 
Security Administration.
    ``(d) Administrative Matters.--
            ``(1) Meetings.--The Council shall meet on a regular and 
        periodic basis or at the call of the Chairperson or the Under 
        Secretary.
            ``(2) Access to documents and staff.--The Under Secretary 
        may give the Council appropriate access to relevant documents 
        and personnel of the Administration, and the Under Secretary 
        shall make available, consistent with the authority to withhold 
        commercial and other proprietary information under section 552 
        of title 5 (commonly known as the `Freedom of Information 
        Act'), cost data associated with the acquisition and operation 
        of security screening equipment. Any member of the Council who 
        receives commercial or other proprietary data from the Under 
        Secretary shall be subject to the provisions of section 1905 of 
        title 18, pertaining to unauthorized disclosure of such 
        information.
            ``(3) Chairperson and vice chairperson.--The Council shall 
        elect a Chairperson and a Vice Chairperson from among the 
        members, each of whom shall serve for a term of 2 years. The 
        Vice Chairperson shall perform the duties of the Chairperson in 
        the absence of the Chairperson.
            ``(4) Travel and per diem.--Each member of the Council 
        shall be paid actual travel expenses, and per diem in lieu of 
        subsistence expenses when away from his or her usual place of 
        residence, in accordance with section 5703 of title 5.
            ``(5) Detail of personnel from the administration.--The 
        Under Secretary shall make available to the Council such staff, 
        information, and administrative services and assistance as may 
        reasonably be required to enable the Council to carry out its 
        responsibilities under this section.
    ``(e) Federal Advisory Committee Act Not To Apply.--The Federal 
Advisory Committee Act (5 U.S.C. App.) does not apply to the 
Council.''.
    (b) Conforming Amendment.--The analysis for chapter 449 is amended 
by adding at the end the following:

       ``SUBCHAPTER III--TRANSPORTATION SECURITY OVERSIGHT BOARD

``44951. Transportation Security Oversight Board.
``44952. Advisory council.''.

SEC. 113. AIRPORT IMPROVEMENT PROGRAMS.

    (a) Competition Plan.--Section 47106(f) 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 
        made, in fiscal year 2002 if the fee or grant is to be used to 
        improve security at a covered airport.''.
    (b) Airport Development Defined.--Section 47102(3) is amended by 
adding at the end the following:
                    ``(J) hiring, training, compensating, or 
                reimbursement for law enforcement personnel at a non-
                hub or small hub airport (as defined in section 41731).
                    ``(K) in fiscal year 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.
                    ``(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.''.
    (c) Reimbursement for Past Expenses.--Section 47110(b)(2) is 
amended--
            (1) by striking ``or'' at the end of subparagraph (B);
            (2) by inserting after the semicolon at the end of the 
        subparagraph (C)(iii) ``or''; and
            (3) by inserting at the end the following:
            ``(D) if the cost is incurred after September 11, 2001, for 
        a project described in subparagraphs (J), (K), or (L) of 
        section 47102(3) without regard to the date of execution of a 
        grant agreement under this subchapter.''.
    (d) Federal Share.--Section 47109(a) is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) 100 percent for a project described in subparagraphs 
        (J), (K), or (L) of section 47102(3).''.
    (e) Conforming Amendment to Airport and Airway Trust Fund.--Section 
9502(d)(1)(A) of the Internal Revenue Code of 1986 (relating to airport 
and airway program) is amended by inserting ``or the Airport Security 
Federalization Act of 2001'' after ``21st Century''.

SEC. 114. TECHNICAL CORRECTIONS.

    (a) Report Deadline.--Section 106(a) of the Air Transportation 
Safety and System Stabilization Act (Public Law 107-42) 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) is amended by inserting 
``in the interest of air commerce or national security'' before ``to 
carry out foreign policy''.
    (c) Federal Credit Instruments.--Section 102(c)(2)(A) of such Act 
is amended by striking ``representatives'' and inserting 
``representations''.
    (d) Maximum Amount of Compensation Payable Per Air Carrier.--
Section 103 of such Act is amended by adding at the end the following:
    ``(d) Compensation for Air Carriers Providing Air Ambulance 
Services.--
            ``(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 air carriers 
        providing air ambulance services. The President shall reduce 
        the $4
2000
,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 
        distribute the amount set aside under this subsection 
        proportionally among air carriers providing air ambulance 
        services based on an appropriate auditable measure, as 
        determined by the President.''.

SEC. 115. ALCOHOL AND CONTROLLED SUBSTANCE TESTING.

    Chapter 451 is amended--
            (1) by striking ``contract personnel'' each place it 
        appears and inserting ``personnel'';
            (2) 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. Notwithstanding 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 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 responsibility 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. 116. CONFORMING AMENDMENTS TO SUBTITLE VII.

    (a) Records of Employment of Pilot Applicants.--Part A of subtitle 
VII 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 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) 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 is amended--
            (1) in subsection (a)--
                    (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''; 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 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 
        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'';
            (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 i
2000
nserting ``, 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''.

SEC. 117. SAVINGS PROVISION.

    (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 
        proceeding 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.
            (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. 118. BUDGET SUBMISSIONS.

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

SEC. 119. AIRCRAFT OPERATIONS IN ENHANCED CLASS B AIRSPACE.

    Notice to Airmen FDC 1/0618 issued by the Federal Aviation 
Administration, and any other regulation, order, or directive 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), shall cease to 
be in effect beginning on the 10th day following the date of the 
enactment of this Act, unless the Secretary of Transportation publishes 
a notice in the Federal Register before such 10th day reimposing the 
restriction and explaining the reasons for the restriction.

SEC. 120. WAIVERS FOR CERTAIN ISOLATED COMMUNITIES.

    (a) In General.--In any case in which a restriction is imposed on 
an air carrier (as defined in section 40102 of title 49, United States 
Code) for reasons of national security by any government agency, the 
Under Secretary of Transportation for Security may grant a waiver from 
such restrictions for the carriage of cargo, mail, patients, and 
emergency medical supplies (and associated personnel) on flights to or 
from a community that is not accessible by road, or that is more than 
200 miles, from a hub airport (as defined in section 41731 of such 
title).
    (b) Review and Disapproval.--Any grant of a waiver by the Under 
Secretary under this section shall be subject to review and disapproval 
by the Transportation Security Oversight Board.
    (c) Limitations.--The Board may impose reasonable limitations on 
any waiver granted under this section.

SEC. 121. ASSESSMENTS OF THREATS TO AIRPORTS.

    Section 44904 is amended by adding at the end the following:
    ``(d) Passenger Vehicles.--
            ``(1) Threat assessment.--An operator of an airport with 
        scheduled passenger service, in consultation with appropriate 
        State or local law enforcem
1ecb
ent authorities, may conduct a 
        threat assessment of the airport to determine whether passenger 
        vehicles should be permitted to park within 300 feet of the 
        airport terminal building.
            ``(2) Removal of certain restrictions.--If the airport 
        operator, after consultation with the appropriate State or 
        local law enforcement authorities, determines that safeguards 
        are in place to sufficiently protect public safety and so 
        certifies, in writing, to the Secretary of Transportation, any 
        rule, order, or other directive of the Secretary prohibiting 
        the parking of passenger vehicles within 300 feet of an airport 
        terminal building shall not apply to the terminal building at 
        such airport.''.

SEC. 122. REQUIREMENT TO HONOR PASSENGER TICKETS OF OTHER CARRIERS.

    (a) In General.--Subchapter I of chapter 417 is amended by adding 
at the end the following:
``Sec. 41722. Requirement to honor passenger tickets of other carriers
    ``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 an act of war or terrorism or 
insolvency or bankruptcy of the carrier.''.
    (b) Conforming Amendment.--The analysis for such subchapter is 
amended by adding at the end the following:

``41722. Requirement to honor passenger tickets of other carriers.''.

SEC. 123. 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 available to vendors, agents, and 
subcontractors of general aviation aircraft.
    (c) Transport of Animals.--It is the sense of Congress that 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.
    (d) Screening.--It is the sense of Congress that the Under 
Secretary of Transportation for Security should require, as soon as 
practicable, that all property carried in a passenger aircraft in air 
transportation or intrastate air transportation (including checked 
baggage) be screened by any currently available means, including X-ray 
machine, hand-held metal detector, explosive detection system 
equipment, or manual search.
    (e) Contracts for Airport Security Services.--It is the sense of 
Congress that, in awarding a contract for airport security services, 
the Under Secretary of Transportation for Security should, to the 
maximum extent practicable, award the contract to a firm that is owned 
and controlled by a citizen of the United States.

                     TITLE II--VICTIMS COMPENSATION

SEC. 201. LIMITATION ON LIABILITY FOR DAMAGES ARISING OUT OF CRASHES OF 
              SEPTEMBER 11, 2001.

    Section 408 of the Air Transportation Safety and System 
Stabilization Act (Public Law 107-42; 115 Stat. 240; 49 U.S.C. 40101 
note) is amended--
            (1) by amending the section heading to read as follows:

``SEC. 408. LIMITATION ON LIABILITY FOR DAMAGES ARISING OUT OF CRASHES 
              OF SEPTEMBER 11, 2001.'';

            (2) by amending subsection (a) to read as follows:
    ``(a) General Limitation of Liability.--Except as provided in this 
section, no Federal court or agency or State court or agency shall 
enforce any Federal or State law holding any person, or any State or 
political subdivision thereof, liable for any damages arising out of 
the hijacking and subsequent crashes of American Airlines flights 11 or 
77, or United Airlines flights 93 or 175, on September 11, 2001.'';
            (3) in subsection (b), by adding at the end the following 
        new paragraphs:
            ``(4) Damages.--If any party to any action brought under 
        this subsection is determined to be liable--
                    ``(A) no damages in the aggregate ordered by the 
                court to be paid by such party shall exceed the amount 
                of insurance, minus any payments made pursuant to a 
                court approved settlement, which such party is 
                determined to have obtained prior to September 11, 
                2001, and which is determined to cover such party's 
                liability for any damages arising out of the hijacking 
                and subsequent crashes of American Airlines flights 11 
                or 77, or United Airlines flights 93 or 175, on 
                September 11, 2001;
                    ``(B) such party shall not be liable for interest 
                prior to the judgment or for punitive damages intended 
                to punish or deter; and
                    ``(C) the court shall reduce the amount of damages 
                awarded to a plaintiff by the amount of collateral 
                source compensation that the plaintiff has received or 
                is entitled to receive as a result of the terrorist-
                related aircraft crashes of September 11, 2001.
            ``(5) Attorneys' fees.--Reasonable attorneys' fees for work 
        performed in any action brought under this subsection shall be 
        subject to the discretion of the court, but in no event shall 
        any attorney charge, demand, receive, or collect for services 
        rendered, fees in excess of 20 percent of the damages ordered 
        by the court to be paid pursuant to this subsection, or in 
        excess of 20 percent of any court approved settlement made of 
        any claim cognizable under this subsection. Any attorney who 
        charges, demands, receives, or collects for services rendered 
        in connection with such claim any amount in excess of that 
        allowed under this subsection, if recovery be had, shall be 
        fined not more than $2,000 or imprisoned not more than one 
        year, or both.'';
            (4) by amending subsection (c) to read as follows:
    ``(c) Exclusion.--Nothing in this section shall in any way limit 
any liability of any person who--
            ``(1) hijacks any aircraft or commits any terrorist act; or
            ``(2) knowingly participates in a conspiracy to hijack any 
        aircraft or commit any terrorist act.''; and
            (5) by adding at the end the following new subsections:
    ``(d) Disclaimer.--Nothing herein implies that any person is liable 
for damages arising out of the hijacking and subsequent crashes of 
American Airlines flights 11 or 77, or United Airlines flights 93 or 
175, on September 11, 2001.
    ``(e) State Defined.--In this section, the term `State' means any 
State of the United States, the District of Columbia, the Commonwealth 
of Puerto Rico, the Northern Mariana Islands, the United States Virgin 
Islands, Guam, American Samoa, and any other territory of possession of 
the United States or any political subdivision of any of the 
foregoing.''.
            Attest:

                                                                          Clerk.
107th CONGRESS

  1st Session

                                S. 1447

_______________________________________________________________________

                               AMENDMENT

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