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Pub.L. 107-043 To implement the agreement establishing a United States-Jordan free trade area. <> ...
AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT
[[Page 115 STAT. 230]]
Public Law 107-42
To preserve the continued viability of the United States air
transportation system. <<NOTE: Sept. 22, 2001 - [H.R. 2926]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Air
Transportation Safety and System Stabilization Act. 49 USC 40101
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Air Transportation Safety and System
TITLE I--AIRLINE STABILIZATION
SEC. 101. AVIATION DISASTER RELIEF. <<NOTE: 49 USC 40101 note.>>
(a) <<NOTE: President. Terrorism.>> In General.--Notwithstanding
any other provision of law, the President shall take the following
actions to compensate air carriers for losses incurred by the air
carriers as a result of the terrorist attacks on the United States that
occurred on September 11, 2001:
(1) Subject to such terms and conditions as the President
deems necessary, issue Federal credit instruments to air
carriers that do not, in the aggregate, exceed $10,000,000,000
and provide the subsidy amounts necessary for such instruments
in accordance with the provisions of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661 et seq.).
(2) Compensate air carriers in an aggregate amount equal to
(A) direct losses incurred beginning on September
11, 2001, by air carriers as a result of any Federal
ground stop order issued by the Secretary of
Transportation or any subsequent order which continues
or renews such a stoppage; and
(B) the incremental losses incurred beginning
September 11, 2001, and ending December 31, 2001, by air
carriers as a direct result of such attacks.
(b) Emergency Designation.--Congress designates the amount of new
budget authority and outlays in all fiscal years resulting from this
title as an emergency requirement pursuant to section 252(e) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(e)). Such amount shall be available only to the extent that a
request, that includes designation of such amount as an emergency
requirement as defined in such Act, is transmitted by the President to
[[Page 115 STAT. 231]]
SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD. <<NOTE: 49 USC 40101
(a) Definitions.--In this section, the following definitions apply:
(1) Board.--The term ``Board'' means the Air Transportation
Stabilization Board established under subsection (b).
(2) Financial obligation.--The term ``financial obligation''
means any note, bond, debenture, or other debt obligation issued
by an obligor in connection with financing under this section
and section 101(a)(1).
(3) Lender.--The term ``lender'' means any non-Federal
qualified institutional buyer (as defined by section 230.144A(a)
of title 17, Code of Federal Regulations (or any successor
regulation) known as Rule 144A(a) of the Securities and Exchange
Commission and issued under the Security Act of 1933,
(A) a qualified retirement plan (as defined in
section 4974(c) of the Internal Revenue Code of 1986 (26
U.S.C. 4974(c)) that is a qualified institutional buyer;
(B) a governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986 (26 U.S.C.
414(d)) that is a qualified institutional buyer.
(4) Obligor.--The term ``obligor'' means a party primarily
liable for payment of the principal of or interest on a Federal
credit instrument, which party may be a corporation,
partnership, joint venture, trust, or governmental entity,
agency, or instrumentality.
(b) Air Transportation Stabilization Board.--
(1) Establishment.--There is established a board (to be
known as the ``Air Transportation Stabilization Board'') to
review and decide on applications for Federal credit instruments
under section 101(a)(1).
(2) Composition.--The Board shall consist of--
(A) the Secretary of Transportation or the designee
of the Secretary;
(B) the Chairman of the Board of Governors of the
Federal Reserve System, or the designee of the Chairman,
who shall be the Chair of the Board;
(C) the Secretary of the Treasury or the designee of
the Secretary; and
(D) the Comptroller General of the United States, or
the designee of the Comptroller General, as a nonvoting
member of the Board.
(c) Federal Credit Instruments.--
(1) In general.--The Board may enter into agreements with 1
or more obligors to issue Federal credit instruments under
section 101(a)(1) if the Board determines, in its discretion,
(A) the obligor is an air carrier for which credit
is not reasonably available at the time of the
(B) the intended obligation by the obligor is
prudently incurred; and
(C) such agreement is a necessary part of
maintaining a safe, efficient, and viable commercial
aviation system in the United States.
(2) Terms and limitations.--
(A) Forms; terms and conditions.--A Federal credit
instrument shall be issued under section 101(a)(1) in
[[Page 115 STAT. 232]]
form and on such terms and conditions and contain such
covenants, representatives, warranties, and requirements
(including requirements for audits) as the Board
(B) <<NOTE: Deadline. Regulations.>> Procedures.--
Not later than 14 days after the date of enactment of
this Act, the Director of the Office of Management and
Budget shall issue regulations setting forth procedures
for application and minimum requirements, which may be
supplemented by the Board in its discretion, for the
issuance of Federal credit instruments under section
(d) Financial Protection of Government.--
(1) In general.--To the extent feasible and practicable, the
Board shall ensure that the Government is compensated for the
risk assumed in making guarantees under this title.
(2) Government participation in gains.--To the extent to
which any participating corporation accepts financial
assistance, in the form of accepting the proceeds of any loans
guaranteed by the Government under this title, the Board is
authorized to enter into contracts under which the Government,
contingent on the financial success of the participating
corporation, would participate in the gains of the participating
corporation or its security holders through the use of such
instruments as warrants, stock options, common or preferred
stock, or other appropriate equity instruments.
(3) Deposit in treasury.--All amounts collected by the
Secretary of the Treasury under this subsection shall be
deposited in the Treasury as miscellaneous receipts.
SEC. 103. SPECIAL RULES FOR COMPENSATION. <<NOTE: 49 USC 40101 note.>>
(a) Documentation.--Subject to subsection (b), the amount of
compensation payable to an air carrier under section 101(a)(2) may not
exceed the amount of losses described in section 101(a)(2) that the air
carrier demonstrates to the satisfaction of the President, using sworn
financial statements or other appropriate data, that the air carrier
incurred. The Secretary of Transportation and the Comptroller General of
the United States may audit such statements and may request any
information that the Secretary and the Comptroller General deems
necessary to conduct such audit.
(b) Maximum Amount of Compensation Payable Per Air Carrier.--The
maximum total amount of compensation payable to an air carrier under
section 101(a)(2) may not exceed the lesser of--
(1) the amount of such air carrier's direct and incremental
losses described in section 101(a)(2); or
(2) in the case of--
(A) flights involving passenger-only or combined
passenger and cargo transportation, the product of--
(i) $4,500,000,000; and
(ii) the ratio of--
(I) the available seat miles of the
air carrier for the month of August 2001
as reported to the Secretary; to
(II) the total available seat miles
of all such air carriers for such month
as reported to the Secretary; and
[[Page 115 STAT. 233]]
(B) flights involving cargo-only transportation, the
(i) $500,000,000; and
(ii) the ratio of--
(I) the revenue ton miles or other
auditable measure of the air carrier for
cargo for the latest quarter for which
data is available as reported to the
(II) the total revenue ton miles or
other auditable measure of all such air
carriers for cargo for such quarter as
reported to the Secretary.
(c) Payments.--The President may provide compensation to air
carriers under section 101(a)(2) in 1 or more payments up to the amount
authorized by this title.
SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION. <<NOTE: 49 USC
(a) In General.--The President may only issue a Federal credit
instrument under section 101(a)(1) to an air carrier after the air
carrier enters into a legally binding agreement with the President that,
during the 2-year period beginning September 11, 2001, and ending
September 11, 2003, no officer or employee of the air carrier whose
total compensation exceeded $300,000 in calendar year 2000 (other than
an employee whose compensation is determined through an existing
collective bargaining agreement entered into prior to September 11,
(1) will receive from the air carrier total compensation
which exceeds, during any 12 consecutive months of such 2-year
period, the total compensation received by the officer or
employee from the air carrier in calendar year 2000; and
(2) will receive from the air carrier severance pay or other
benefits upon termination of employment with the air carrier
which exceeds twice the maximum total compensation received by
the officer or employee from the air carrier in calendar year
(b) Total Compensation Defined.--In this section, the term ``total
compensation'' includes salary, bonuses, awards of stock, and other
financial benefits provided by an air carrier to an officer or employee
of the air carrier.
SEC. 105. CONTINUATION OF CERTAIN AIR SERVICE. <<NOTE: 49 USC 40101
(a) Action of Secretary.--The Secretary of Transportation should
take appropriate action to ensure that all communities that had
scheduled air service before September 11, 2001, continue to receive
adequate air transportation service and that essential air service to
small communities continues without interruption.
(b) <<NOTE: Appropriation authorization.>> Essential Air Service.--
There is authorized to be appropriated to the Secretary to carry out the
essential air service program under subchapter II of chapter 417 of
title 49, United States Code, $120,000,000 for fiscal year 2002.
(c) Secretarial Oversight.--
(1) In general.--Notwithstanding any other provision of law,
the Secretary is authorized to require an air carrier receiving
direct financial assistance under this Act to maintain scheduled
air service to any point served by that carrier before September
(2) Agreements.--In applying paragraph (1), the Secretary
may require air carriers receiving direct financial assistance
under this Act to enter into agreements which will ensure,
[[Page 115 STAT. 234]]
to the maximum extent practicable, that all communities that had
scheduled air service before September 11, 2001, continue to
receive adequate air transportation service.
SEC. 106. REPORTS. <<NOTE: Deadlines. President. 49 USC 40101 note.>>
(a) Report.--Not later than February 1, 2001, the President shall
transmit to the Committee on Transportation and Infrastructure, the
Committee on Appropriations, and the Committee on the Budget of the
House of Representatives and the Committee on Commerce, Science, and
Transportation, the Committee on Appropriations, and the Committee on
the Budget of the Senate a report on the financial status of the air
carrier industry and the amounts of assistance provided under this title
to each air carrier.
(b) Update.--Not later than the last day of the 7-month period
following the date of enactment of this Act, the President shall update
and transmit the report to the Committees.
SEC. 107. DEFINITIONS.
In this title, the following definitions apply:
(1) Air carrier.--The term ``air carrier'' has the meaning
such term has under section 40102 of title 49, United States
(2) Federal credit instrument.--The term ``Federal credit
instrument'' means any guarantee or other pledge by the Board
issued under section 101(a)(1) to pledge the full faith and
credit of the United States to pay all or part of any of the
principal of and interest on a loan or other debt obligation
issued by an obligor and funded by a lender.
(3) Incremental loss.--The term ``incremental loss'' does
not include any loss that the President determines would have
been incurred if the terrorist attacks on the United States that
occurred on September 11, 2001, had not occurred.
TITLE II--AVIATION INSURANCE
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107th Congressional Public Laws Records and Documents
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