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September 11, 2001 : Attack on America
House Report 107-296 : Aviation and Transportation Security Act; November 16, 2001



                                  76 166                                 

                            107 th Congress                             

                                 Report                                 

                                                                            

                                                                             

                        HOUSE OF REPRESENTATIVES                        

                              1st Session                               

                                107 296                                 

                                                                        



                       AVIATION AND TRANSPORTATION SECURITY ACT                



                                                                         

                November  16, 2001.--Ordered to be printed               

                                                                         

  Mr. Young of Alaska, from the committee of conference, submitted the   
                               following                                 
                            CONFERENCE REPORT                            

                          [To accompany S. 1447]                         


       The committee of conference on the disagreeing votes of the two     
   Houses on the amendment of the House to the bill (S. 1447), to improve  
   aviation security, and for other purposes, having met, after full and   
   free conference, have agreed to recommend and do recommend to their     
   respective Houses as follows:                                           
       That the Senate recede from its disagreement to the amendment of the
   House and agree to the same with an amendment as follows:               
       In lieu of the matter proposed to be inserted by the House          
   amendment, insert the following:                                        

          SECTION 1. SHORT TITLE.                                                 

     This Act may be cited as the ``Aviation and Transportation Security  
  Act''.                                                                  
                                 TITLE I--AVIATION SECURITY                       

          SEC. 101. TRANSPORTATION SECURITY ADMINISTRATION.                       

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

     ``(a) In General.--The Transportation Security Administration shall  
  be an administration of the Department of Transportation.               
    ``(b)  Under Secretary.--                                             

       ``(1) Appointment.--The head of the Administration shall be the     
   Under Secretary of Transportation for Security. The Under Secretary     
   shall be appointed by the President, by and with the advice and consent 
   of the Senate.                                                          
     ``(2)  Qualifications.--The Under Secretary must--                    

     ``(A) be a citizen of the United States; and                          

       ``(B) have experience in a field directly related to transportation 
   or security.                                                            
       ``(3) Term.--The term of office of an individual appointed as the   
   Under Secretary shall be 5 years.                                       
     ``(c) Limitation on Ownership of Stocks and Bonds.--The Under        
  Secretary may not own stock in or bonds of a transportation or security 
  enterprise or an enterprise that makes equipment that could be used for 
  security purposes.                                                      
     ``(d) Functions.--The Under Secretary shall be responsible for       
  security in all modes of transportation, including--                    
       ``(1) carrying out chapter 449, relating to civil aviation security,
   and related research and development activities; and                    
       ``(2) security responsibilities over other modes of transportation  
   that are exercised by the Department of Transportation.                 
    ``(e)  Screening Operations.--The Under Secretary shall--             

       ``(1) be responsible for day-to-day Federal security screening      
   operations for passenger air transportation and intrastate air          
   transportation under sections 44901 and 44935;                          
       ``(2) develop standards for the hiring and retention of security    
   screening personnel;                                                    
     ``(3) train and test security screening personnel; and                

       ``(4) be responsible for hiring and training personnel to provide   
   security screening at all airports in the United States where screening 
   is required under section 44901, in consultation with the Secretary of  
   Transportation and the heads of other appropriate Federal agencies and  
   departments.                                                            
     ``(f) Additional Duties and Powers.--In addition to carrying out the 
  functions specified in subsections (d) and (e), the Under Secretary     
  shall--                                                                 
       ``(1) receive, assess, and distribute intelligence information      
   related to transportation security;                                     
     ``(2) assess threats to transportation;                               

       ``(3) develop policies, strategies, and plans for dealing with      
   threats to transportation security;                                     
       ``(4) make other plans related to transportation security, including
   coordinating countermeasures with appropriate departments, agencies, and
   instrumentalities of the United States Government;                      
       ``(5) serve as the primary liaison for transportation security to   
   the intelligence and law enforcement communities;                       
       ``(6) on a day-to-day basis, manage and provide operational guidance
   to the field security resources of the Administration, including Federal
   Security Managers as provided by section 44933;                         
     ``(7) enforce security-related regulations and requirements;          

       ``(8) identify and undertake research and development activities    
   necessary to enhance transportation security;                           
       ``(9) inspect, maintain, and test security facilities, equipment,   
   and systems;                                                            
       ``(10) ensure the adequacy of security measures for the             
   transportation of cargo;                                                
       ``(11) oversee the implementation, and ensure the adequacy, of      
   security measures at airports and other transportation facilities;      
       ``(12) require background checks for airport security screening     
   personnel, individuals with access to secure areas of airports, and     
   other transportation security personnel;                                
       ``(13) work in conjunction with the Administrator of the Federal    
   Aviation Administration with respect to any actions or activities that  
   may affect aviation safety or air carrier operations;                   
       ``(14) work with the International Civil Aviation Organization and  
   appropriate aeronautic authorities of foreign governments under section 
   44907 to address security concerns on passenger flights by foreign air  
   carriers in foreign air transportation; and                             
       ``(15) carry out such other duties, and exercise such other powers, 
   relating to transportation security as the Under Secretary considers    
   appropriate, to the extent authorized by law.                           
    ``(g)  National Emergency Responsibilities.--                         

       ``(1) In general.--Subject to the direction and control of the      
   Secretary, the Under Secretary, during a national emergency, shall have 
   the following responsibilities:                                         
       ``(A) To coordinate domestic transportation, including aviation,    
   rail, and other surface transportation, and maritime transportation     
   (including port security).                                              
       ``(B) To coordinate and oversee the transportation-related          
   responsibilities of other departments and agencies of the Federal       
   Government other than the Department of Defense and the military        
   departments.                                                            
       ``(C) To coordinate and provide notice to other departments and     
   agencies of the Federal Government, and appropriate agencies of State   
   and local governments, including departments and agencies for           
   transportation, law enforcement, and border control, about threats to   
   transportation.                                                         
       ``(D) To carry out such other duties, and exercise such other       
   powers, relating to transportation during a national emergency as the   
   Secretary shall prescribe.                                              
       ``(2) Authority of other departments and agencies.--The authority of
   the Under Secretary under this subsection shall not supersede the       
   authority of any other department or agency of the Federal Government   
   under law with respect to transportation or transportation-related      
   matters, whether or not during a national emergency.                    
       ``(3) Circumstances.--The Secretary shall prescribe the             
   circumstances constituting a national emergency for purposes of this    
   subsection.                                                             
     ``(h) Management of Security Information.--In consultation with the  
  Transportation Security Oversight Board, the Under Secretary shall--    
       ``(1) enter into memoranda of understanding with Federal agencies or
   other entities to share or otherwise cross-check as necessary data on   
   individuals identified on Federal agency databases who may pose a risk  
   to transportation or national security;                                 
       ``(2) establish procedures for notifying the Administrator of the   
   Federal Aviation Administration, appropriate State and local law        
   enforcement officials, and airport or airline security officers of the  
   identity of individuals known to pose, or suspected of posing, a risk of
   air piracy or terrorism or a threat to airline or passenger safety;     
       ``(3) in consultation with other appropriate Federal agencies and   
   air carriers, establish policies and procedures requiring air carriers--
       ``(A) to use information from government agencies to identify       
   individuals on passenger lists who may be a threat to civil aviation or 
   national security; and                                                  
       ``(B) if such an individual is identified, notify appropriate law   
   enforcement agencies, prevent the individual from boarding an aircraft, 
   or take other appropriate action with respect to that individual; and   
       ``(4) consider requiring passenger air carriers to share passenger  
   lists with appropriate Federal agencies for the purpose of identifying  
   individuals who may pose a threat to aviation safety or national        
   security.                                                               
     ``(i) View of NTSB.--In taking any action under this section that    
  could affect safety, the Under Secretary shall give great weight to the 
  timely views of the National Transportation Safety Board.               
    ``(j)  Acquisitions.--                                                

     ``(1)  In general.--The Under Secretary is authorized--               

       ``(A) to acquire (by purchase, lease, condemnation, or otherwise)   
   such real property, or any interest therein, within and outside the     
   continental United States, as the Under Secretary considers necessary;  
       ``(B) to acquire (by purchase, lease, condemnation, or otherwise)   
   and to construct, repair, operate, and maintain such personal property  
   (including office space and patents), or any interest therein, within   
   and outside the continental United States, as the Under Secretary       
   considers necessary;                                                    
       ``(C) to lease to others such real and personal property and to     
   provide by contract or otherwise for necessary facilities for the       
   welfare of its employees and to acquire, maintain and operate equipment 
   for these facilities;                                                   
       ``(D) to acquire services, including such personal services as the  
   Secretary determines necessary, and to acquire (by purchase, lease,     
   condemnation, or otherwise) and to construct, repair, operate, and      
   maintain research and testing sites and facilities; and                 
       ``(E) in cooperation with the Administrator of the Federal Aviation 
   Administration, to utilize the research and development facilities of   
   the Federal Aviation Administration.                                    
       ``(2) Title.--Title to any property or interest therein acquired    
   pursuant to this subsection shall be held by the Government of the      
   United States.                                                          
     ``(k) Transfers of Funds.--The Under Secretary is authorized to      
  accept transfers of unobligated balances and unexpended balances of     
  funds appropriated to other Federal agencies (as such term is defined in
  section 551(1) of title 5) to carry out functions transferred, on or    
  after the date of enactment of the Aviation and Transportation Security 
  Act, by law to the Under Secretary.                                     
    ``(l)  Regulations.--                                                 

       ``(1) In general.--The Under Secretary is authorized to issue,      
   rescind, and revise such regulations as are necessary to carry out the  
   functions of the Administration.                                        
     ``(2)  Emergency procedures.--                                        

       ``(A) In general.--Notwithstanding any other provision of law or    
   executive order (including an executive order requiring a cost-benefit  
   analysis), if the Under Secretary determines that a regulation or       
   security directive must be issued immediately in order to protect       
   transportation security, the Under Secretary shall issue the regulation 
   or security directive without providing notice or an opportunity for    
   comment and without prior approval of the Secretary.                    
       ``(B) Review by transportation security oversight board.--Any       
   regulation or security directive issued under this paragraph shall be   
   subject to review by the Transportation Security Oversight Board        
   established under section 115. Any regulation or security directive     
   issued under this paragraph shall remain effective unless disapproved by
   the Board or rescinded by the Under Secretary.                          
       ``(3) Factors to consider.--In determining whether to issue,        
   rescind, or revise a regulation under this section, the Under Secretary 
   shall consider, as a factor in the final determination, whether the     
   costs of the regulation are excessive in relation to the enhancement of 
   security the regulation will provide. The Under Secretary may waive     
   requirements for an analysis that estimates the number of lives that    
   will be saved by the regulation and the monetary value of such lives if 
   the Under Secretary determines that it is not feasible to make such an  
   estimate.                                                               
     ``(4)  Airworthiness objections by faa.--                             

       ``(A) In general.--The Under Secretary shall not take an aviation   
   security action under this title if the Administrator of the Federal    
   Aviation Administration notifies the Under Secretary that the action    
   could adversely affect the airworthiness of an aircraft.                
       ``(B) Review by secretary.--Notwithstanding subparagraph (A), the   
   Under Secretary may take such an action, after receiving a notification 
   concerning the action from the Administrator under subparagraph (A), if 
   the Secretary of Transportation subsequently approves the action.       
    ``(m)  Personnel and Services; Cooperation by Under Secretary.--      

       ``(1) Authority of under secretary.--In carrying out the functions  
   of the Administration, the Under Secretary shall have the same authority
   as is provided to the Administrator of the Federal Aviation             
   Administration under subsections (l) and (m) of section 106.            
       ``(2) Authority of agency heads.--The head of a Federal agency shall
   have the same authority to provide services, supplies, equipment,       
   personnel, and facilities to the Under Secretary as the head has to     
   provide services, supplies, equipment, personnel, and facilities to the 
   Administrator of the Federal Aviation Administration under section      
   106(m).                                                                 
     ``(n) Personnel Management System.--The personnel management system  
  established by the Administrator of the Federal Aviation Administration 
  under section 40122 shall apply to employees of the Transportation      
  Security Administration, or, subject to the requirements of such        
  section, the Under Secretary may make such modifications to the         
  personnel management system with respect to such employees as the Under 
  Secretary considers appropriate, such as adopting aspects of other      
  personnel systems of the Department of Transportation.                  
     ``(o) Acquisition Management System.--The acquisition management     
  system established by the Administrator of the Federal Aviation         
  Administration under section 40110 shall apply to acquisitions of       
  equipment, supplies, and materials by the Transportation Security       
  Administration, or, subject to the requirements of such section, the    
  Under Secretary may make such modifications to the acquisition          
  management system with respect to such acquisitions of equipment,       
  supplies, and materials as the Under Secretary considers appropriate,   
  such as adopting aspects of other acquisition management systems of the 
  Department of Transportation.                                           
     ``(p) Authority of Inspector General.--The Transportation Security   
  Administration shall be subject to the Inspector General Act of 1978 (5 
  U.S.C. App.) and other laws relating to the authority of the Inspector  
  General of the Department of Transportation.                            
    ``(q)  Law Enforcement Powers.--                                      

       ``(1) In general.--The Under Secretary may designate an employee of 
   the Transportation Security Administration to serve as a law enforcement
   officer.                                                                
       ``(2) Powers.--While engaged in official duties of the              
   Administration as required to fulfill the responsibilities under this   
   section, a law enforcement officer designated under paragraph (1) may-- 
     ``(A) carry a firearm;                                                

       ``(B) make an arrest without a warrant for any offense against the  
   United States committed in the presence of the officer, or for any      
   felony cognizable under the laws of the United States if the officer has
   probable cause to believe that the person to be arrested has committed  
   or is committing the felony; and                                        
       ``(C) seek and execute warrants for arrest or seizure of evidence   
   issued under the authority of the United States upon probable cause that
   a violation has been committed.                                         
       ``(3) Guidelines on exercise of authority.--The authority provided  
   by this subsection shall be exercised in accordance with guidelines     
   prescribed by the Under Secretary, in consultation with the Attorney    
   General of the United States, and shall include adherence to the        
   Attorney General's policy on use of deadly force.                       
       ``(4) Revocation or suspension of authority.--The powers authorized 
   by this subsection may be rescinded or suspended should the Attorney    
   General determine that the Under Secretary has not complied with the    
   guidelines prescribed in paragraph (3) and conveys the determination in 
   writing to the Secretary of Transportation and the Under Secretary.     
     ``(r) Authority To Exempt.--The Under Secretary may grant an         
  exemption from a regulation prescribed in carrying out this section if  
  the Under Secretary determines that the exemption is in the public      
  interest.''.                                                            
     (b) Conforming Amendment.--The analysis for chapter 1 of such title  
  is amended by adding at the end the following:                          


      ``114. Transportation Security Administration.''.                       



    (c)  Position of Under Secretary in Executive Schedule.--             

       (1) In general.--Section 5313 of title 5, United States Code, is    
   amended by adding at the end the following:                             
     ``The Under Secretary of Transportation for Security.''.              

       (2) Bonus eligibility.--In addition to the annual rate of pay       
   authorized by section 5313 of title 5, United States Code, the Under    
   Secretary may receive a bonus for any calendar year not to exceed 30    
   percent of the annual rate of pay, based on the Secretary's evaluation  
   of the Under Secretary's performance.                                   
       (3) Conforming change.--Section 106(r)(2)(A) of title 49, United    
   States Code, is amended to read as follows:                             
       ``(A) In general.--The Chief Operating Officer shall be paid at an  
   annual rate of basic pay to be determined by the Administrator, with the
   approval of the Air Traffic Services Subcommittee of the Aviation       
   Management Advisory Council. The annual rate may not exceed the annual  
   compensation paid under section 102 of title 3. The Chief Operating     
   Officer shall be subject to the post-employment provisions of section   
   207 of title 18 as if the position of Chief Operating Officer were      
   described in section 207(c)(2)(A)(i) of that title.''.                  
     (d) Cooperation With Other Agencies.--The last sentence of section   
  106(m) of such title is amended by striking ``supplies and'' and        
  inserting ``supplies, personnel, services, and''.                       
     (e) Security and Research and Development Activities.--Section 40119 
  of such title is amended--                                              
       (1) in subsection (a) by striking ``Administrator of the Federal    
   Aviation Administration'' and inserting ``Under Secretary of            
   Transportation for Security'';                                          
       (2) in subsections (b) and (c) by striking ``Administrator'' each   
   place it appears and inserting ``Under Secretary''; and                 
     (3) in subsection (b)(1)(C) by striking ``air''.                      

     (f) References to FAA in Chapter 449.--Chapter 449 of such title is  
  amended--                                                               
       (1) in section 44904(b)(5) by striking ``the Administration'' and   
   inserting ``the Transportation Security Administration'';               
       (2) in the second sentence of section 44913(a)(1) by striking ``of  
   the Administration'' and inserting ``of the Transportation Security     
   Administration'';                                                       
     (3) in section 44916(a)--                                             

       (A) in the first sentence by striking ``Administrator'' and         
   inserting ``Under Secretary of Transportation for Security''; and       
       (B) in the second sentence by striking ``Administration'' and       
   inserting ``Transportation Security Administration'';                   
       (4) in each of sections 44933(a) and 44934(b) by striking           
   ``Assistant Administrator for Civil Aviation Security'' and inserting   
   ``Under Secretary'';                                                    
       (5) in section 44934(b)(1) by striking ``Assistant Administrator''  
   and inserting ``Under Secretary'';                                      
       (6) by striking sections 44931 and 44932 and the items relating to  
   such sections in the analysis for such chapter;                         
       (7) 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''.                           
    (g)  Transition Provisions.--                                         

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

       (A) In general.--Upon request of the Under Secretary, an air carrier
   or foreign air carrier carrying out a screening or security function    
   under chapter 449 of title 49, United States Code, may enter into an    
   agreement with the Under Secretary to transfer any contract the carrier 
   has entered into with respect to carrying out the function, before the  
   Under Secretary assumes responsibility for the function.                
       (B) Schedule.--The Under Secretary may enter into an agreement under
   subparagraph (A) as soon as possible, but not later than 90 days after  
   the date of enactment of this Act. The Under Secretary may enter into   
   such an agreement for one 180-day period and may extend such agreement  
   for one 90-day period if the Under Secretary determines it necessary.   
       (4) Transfer of ownership.--In recognition of the assumption of the 
   financial costs of security screening of passengers and property at     
   airports, and as soon as practical after the date of enactment of this  
   Act, air carriers may enter into agreements with the Under Secretary to 
   transfer the ownership, at no cost to the United States Government, of  
   any personal property, equipment, supplies, or other material associated
   with such screening, regardless of the source of funds used to acquire  
   the property, that the Secretary determines to be useful for the        
   performance of security screening of passengers and property at         
   airports.                                                               
       (5) Performance of under secretary's functions during interim       
   period.--Until the Under Secretary takes office, the functions of the   
   Under Secretary that relate to aviation security may be carried out by  
   the Secretary or the Secretary's designee.                              
          SEC. 102. TRANSPORTATION SECURITY OVERSIGHT BOARD.                      

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

     ``(a) In General.--There is established in the Department of         
  Transportation a board to be known as the `Transportation Security      
  Oversight Board'.                                                       
    ``(b)  Membership.--                                                  

       ``(1) Number and appointment.--The Board shall be composed of 7     
   members as follows:                                                     
     ``(A) The Secretary of Transportation, or the Secretary's designee.   

     ``(B) The Attorney General, or the Attorney General's designee.       

     ``(C) The Secretary of Defense, or the Secretary's designee.          

     ``(D) The Secretary of the Treasury, or the Secretary's designee.     

       ``(E) The Director of the Central Intelligence Agency, or the       
   Director's designee.                                                    
       ``(F) One member appointed by the President to represent the        
   National Security Council.                                              
       ``(G) One member appointed by the President to represent the Office 
   of Homeland Security.                                                   
       ``(2) Chairperson.--The Chairperson of the Board shall be the       
   Secretary of Transportation.                                            
    ``(c)  Duties.--The Board shall--                                     

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

       ``(6) make recommendations to the Under Secretary regarding matters 
   reviewed under paragraph (5).                                           
    ``(d)  Quarterly Meetings.--The Board shall meet at least quarterly.  

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

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


          SEC. 103. FEDERAL SECURITY MANAGERS.                                    

     Section 44933 of title 49, United States Code, is amended to read as 
  follows:                                                                
          ``44933. Federal Security Managers                                      

     ``(a) Establishment, Designation, and Stationing.--The Under         
  Secretary of Transportation for Security shall establish the position of
  Federal Security Manager at each airport in the United States described 
  in section 44903(c). The Under Secretary shall designate individuals as 
  Managers for, and station those Managers at, those airports.            
    ``(b)  Duties and Powers.--The Manager at each airport shall--        

       ``(1) oversee the screening of passengers and property at the       
   airport; and                                                            
     ``(2) carry out other duties prescribed by the Under Secretary.''.    

          SEC. 104. IMPROVED FLIGHT DECK INTEGRITY MEASURES.                      

     (a) In General.--As soon as possible after the date of enactment of  
  this Act, the Administrator of the Federal Aviation Administration      
  shall--                                                                 
       (1) issue an order (without regard to the provisions of chapter 5 of
   title 5, United States Code)--                                          
       (A) prohibiting access to the flight deck of aircraft engaged in    
   passenger air transportation or intrastate air transportation that are  
   required to have a door between the passenger and pilot compartments    
   under title 14, Code of Federal Regulations, except to authorized       
   persons;                                                                
       (B) requiring the strengthening of the flight deck door and locks on
   any such aircraft operating in air transportation or intrastate air     
   transportation that has a rigid door in a bulkhead between the flight   
   deck and the passenger area to ensure that the door cannot be forced    
   open from the passenger compartment;                                    
       (C) requiring that such flight deck doors remain locked while any   
   such aircraft is in flight except when necessary to permit access and   
   egress by authorized persons; and                                       
       (D) prohibiting the possession of a key to any such flight deck door
   by any member of the flight crew who is not assigned to the flight deck;
   and                                                                     
       (2) take such other action, including modification of safety and    
   security procedures and flight deck redesign, as may be necessary to    
   ensure the safety and security of the aircraft.                         
     (b) Implementation of Other Methods.--As soon as possible after such 
  date of enactment, the Administrator of the Federal Aviation            
  Administration may develop and implement methods--                      
       (1) to use video monitors or other devices to alert pilots in the   
   flight deck to activity in the cabin, except that the use of such       
   monitors or devices shall be subject to nondisclosure requirements      
   applicable to cockpit video recordings under section 1114(c);           
       (2) to ensure continuous operation of an aircraft transponder in the
   event of an emergency; and                                              
       (3) to revise the procedures by which cabin crews of aircraft can   
   notify flight deck crews of security breaches and other emergencies,    
   including providing for the installation of switches or other devices or
   methods in an aircraft cabin to enable flight crews to discreetly notify
   the pilots in the case of a security breach occurring in the cabin.     
     (c) Commuter Aircraft.--The Administrator shall investigate means of 
  securing the flight deck of scheduled passenger aircraft operating in   
  air transportation or intrastate air transportation that do not have a  
  rigid fixed door with a lock between the passenger compartment and the  
  flight deck and issue such an order as the Administrator deems          
  appropriate to ensure the inaccessibility, to the greatest extent       
  feasible, of the flight deck while the aircraft is so operating, taking 
  into consideration such aircraft operating in regions where there is    
  minimal threat to aviation security or national security.               
          SEC. 105. DEPLOYMENT OF FEDERAL AIR MARSHALS.                           

     (a) In General.--Subchapter I of chapter 449 of title 49, United     
  States Code, is amended by adding at the end the following:             
          ``44917. Deployment of Federal air marshals                             

     ``(a) In General.--The Under Secretary of Transportation for Security
  under the authority provided by section 44903(d)--                      
       ``(1) may provide for deployment of Federal air marshals on every   
   passenger flight of air carriers in air transportation or intrastate air
   transportation;                                                         
       ``(2) shall provide for deployment of Federal air marshals on every 
   such flight determined by the Secretary to present high security risks; 
       ``(3) shall provide for appropriate training, supervision, and      
   equipment of Federal air marshals;                                      
       ``(4) shall require air carriers providing flights described in     
   paragraph (1) to provide seating for a Federal air marshal on any such  
   flight without regard to the availability of seats on the flight and at 
   no cost to the United States Government or the marshal;                 
       ``(5) may require air carriers to provide, on a space-available     
   basis, to an off-duty Federal air marshal a seat on a flight to the     
   airport nearest the marshal's home at no cost to the marshal or the     
   United States Government if the marshal is traveling to that airport    
   after completing his or her security duties;                            
       ``(6) may enter into agreements with Federal, State, and local      
   agencies under which appropriately-trained law enforcement personnel    
   from such agencies, when traveling on a flight of an air carrier, will  
   carry a firearm and be prepared to assist Federal air marshals;         
       ``(7) shall establish procedures to ensure that Federal air marshals
   are made aware of any armed or unarmed law enforcement personnel on     
   board an aircraft; and                                                  
     ``(8) may appoint--                                                   

     ``(A) an individual who is a retired law enforcement officer;         

     ``(B) an individual who is a retired member of the Armed Forces; and  

       ``(C) an individual who has been furloughed from an air carrier crew
   position in the 1-year period beginning on September 11, 2001;          
      as a Federal air marshal, regardless of age, if the individual       
   otherwise meets the background and fitness qualifications required for  
   Federal air marshals.                                                   
     ``(b) Long Distance Flights.--In making the determination under      
  subsection (a)(2), nonstop, long distance flights, such as those        
  targeted on September 11, 2001, should be a priority.                   
     ``(c) Interim Measures.--Until the Under Secretary completes         
  implementation of subsection (a), the Under Secretary may use, after    
  consultation with and concurrence of the heads of other Federal agencies
  and departments, personnel from those agencies and departments, on a    
  nonreimbursable basis, to provide air marshal service.''.               
     (b) Conforming Amendment.--The analysis for chapter 449 of such title
  is amended by adding after the item relating to section 44916 the       
  following:                                                              


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



     (c) Basic Pay Defined.--Section 8331(3)(E) of title 5, United States 
  Code, is amended to read as follows:                                    
     ``(E) availability pay--                                              

       ``(i) received by a criminal investigator under section 5545a of    
   this title; or                                                          
       ``(ii) received after September 11, 2001, by a Federal air marshal  
   of the Department of Transportation, subject to all restrictions and    
   earning limitations imposed on criminal investigators under section     
   5545a;''.                                                               
          SEC. 106. IMPROVED AIRPORT PERIMETER ACCESS SECURITY.                   

     (a) In General.--Section 44903 of title 49, United States Code, is   
  amended by adding at the end the following:                             
    ``(h)  Improved Airport Perimeter Access Security.--                  

       ``(1) In general.--The Under Secretary, in consultation with the    
   airport operator and law enforcement authorities, may order the         
   deployment of such personnel at any secure area of the airport as       
   necessary to counter the risk of criminal violence, the risk of aircraft
   piracy at the airport, the risk to air carrier aircraft operations at   
   the airport, or to meet national security concerns.                     
       ``(2) Security of aircraft and ground access to secure areas.--In   
   determining where to deploy such personnel, the Under Secretary shall   
   consider the physical security needs of air traffic control facilities, 
   parked aircraft, aircraft servicing equipment, aircraft supplies        
   (including fuel), automobile parking facilities within airport          
   perimeters or adjacent to secured facilities, and access and transition 
   areas at airports served by other means of ground or water              
   transportation.                                                         
       ``(3) Deployment of federal law enforcement personnel.--The         
   Secretary may enter into a memorandum of understanding or other         
   agreement with the Attorney General or the head of any other appropriate
   Federal law enforcement agency to deploy Federal law enforcement        
   personnel at an airport in order to meet aviation safety and security   
   concerns.                                                               
     ``(4)  Airport perimeter screening.--The Under Secretary--            

       ``(A) shall require, as soon as practicable after the date of       
   enactment of this subsection, screening or inspection of all            
   individuals, goods, property, vehicles, and other equipment before entry
   into a secured area of an airport in the United States described in     
   section 44903(c);                                                       
       ``(B) shall prescribe specific requirements for such screening and  
   inspection that will assure at least the same level of protection as    
   will result from screening of passengers and their baggage;             
       ``(C) shall establish procedures to ensure the safety and integrity 
   of--                                                                    
       ``(i) all persons providing services with respect to aircraft       
   providing passenger air transportation or intrastate air transportation 
   and facilities of such persons at an airport in the United States       
   described in section 44903(c);                                          
       ``(ii) all supplies, including catering and passenger amenities,    
   placed aboard such aircraft, including the sealing of supplies to ensure
   easy visual detection of tampering; and                                 
       ``(iii) all persons providing such supplies and facilities of such  
   persons;                                                                
       ``(D) shall require vendors having direct access to the airfield and
   aircraft to develop security programs; and                              
       ``(E) may provide for the use of biometric or other technology that 
   positively verifies the identity of each employee and law enforcement   
   officer who enters a secure area of an airport.''.                      
    (b)  Small and Medium Airports.--                                     

       (1) Technical support and financial assistance.--The Under Secretary
   of Transportation for Security shall develop a plan to--                
       (A) provide technical support to airports, each of which had less   
   than 1 percent of the total annual enplanements in the United States for
   the most recent calendar year for which data is available, to enhance   
   security operations; and                                                
       (B) provide financial assistance to those airports to defray the    
   costs of enhancing security.                                            
     (2)  Removal of certain restrictions.--                               

       (A) Certification by operator.--If the operator of an airport       
   described in paragraph (1), after consultation with the appropriate     
   State and local law enforcement authorities, determines that safeguards 
   are in place to sufficiently protect public safety, and so certifies in 
   writing to the Under Secretary, then any security rule, order, or other 
   directive restricting the parking of passenger vehicles shall not apply 
   at that airport after the applicable time period specified in           
   subparagraph (B), unless the Under Secretary, taking into account       
   individual airport circumstances, notifies the airport operator that the
   safeguards in place do not adequately respond to specific security risks
   and that the restriction must be continued in order to ensure public    
   safety.                                                                 
       (B) Countermand period.--The time period within which the Secretary 
   may notify an airport operator, after receiving a certification under   
   subparagraph (A), that a restriction must be continued in order to      
   ensure public safety at the airport is--                                
       (i) 15 days for a nonhub airport (as defined in section 41714(h) of 
   title 49, United States Code);                                          
     (ii) 30 days for a small hub airport (as defined in such section);    

       (iii) 60 days for a medium hub airport (as defined in such section);
   and                                                                     
       (iv) 120 days for an airport that had at least 1 percent of the     
   total annual enplanements in the United States for the most recent      
   calendar year for which data is available.                              
     (c) Improvement of Secured-Area Access Control.--Section 44903(g)(2) 
  of title 49, United States Code, is amended--                           
       (1) by striking ``weaknesses by January 31, 2001;'' in subparagraph 
   (A) and inserting ``weaknesses;'';                                      
     (2) by striking subparagraph (D) and inserting the following:         

       ``(D) on an ongoing basis, assess and test for compliance with      
   access control requirements, report annually findings of the            
   assessments, and assess the effectiveness of penalties in ensuring      
   compliance with security procedures and take any other appropriate      
   enforcement actions when noncompliance is found;'';                     
       (3) by striking ``program by January 31, 2001;'' in subparagraph (F)
   and inserting ``program;''; and                                         
     (4) by striking subparagraph (G) and inserting the following:         

       ``(G) work with airport operators to strengthen access control      
   points in secured areas (including air traffic control operations areas,
   maintenance areas, crew lounges, baggage handling areas, concessions,   
   and catering delivery areas) to ensure the security of passengers and   
   aircraft and consider the deployment of biometric or similar            
   technologies that identify individuals based on unique personal         
   characteristics.''.                                                     
     (d) Airport Security Pilot Program.--Section 44903(c) of title 49,   
  United States Code, is amended by adding at the end the following:      
       ``(3) Pilot programs.--The Administrator shall establish pilot      
   programs in no fewer than 20 airports to test and evaluate new and      
   emerging technology for providing access control and other security     
   protections for closed or secure areas of the airports. Such technology 
   may include biometric or other technology that ensures only authorized  
   access to secure areas.''.                                              
     (e) Airport Security Awareness Programs.--The Under Secretary of     
  Transportation for Security shall require scheduled passenger air       
  carriers, and airports in the United States described in section        
  44903(c) to develop security awareness programs for airport employees,  
  ground crews, gate, ticket, and curbside agents of the air carriers, and
  other individuals employed at such airports.                            
          SEC. 107. CREW TRAINING.                                                

     (a) In General.--Subchapter I of chapter 449 of title 49, United     
  States Code, is amended by adding at the end the following:             
          ``44918. Crew training                                                  

     ``(a) In General.--Not later than 60 days after the date of enactment
  of the Aviation and Transportation Security Act, the Administrator of   
  the Federal Aviation Administration, in consultation with the Under     
  Secretary of Transportation for Security, appropriate law enforcement,  
  security, and terrorism experts, representatives of air carriers and    
  labor organizations representing individuals employed in commercial     
  aviation, shall develop detailed guidance for a scheduled passenger air 
  carrier flight and cabin crew training program to prepare crew members  
  for potential threat conditions.                                        
     ``(b) Program Elements.--The guidance shall require such a program to
  include, at a minimum, elements that address the following:             
     ``(1) Determination of the seriousness of any occurrence.             

     ``(2) Crew communication and coordination.                            

     ``(3) Appropriate responses to defend oneself.                        

       ``(4) Use of protective devices assigned to crew members (to the    
   extent such devices are required by the Administrator or Under          
   Secretary).                                                             
       ``(5) Psychology of terrorists to cope with hijacker behavior and   
   passenger responses.                                                    
       ``(6) Live situational training exercises regarding various threat  
   conditions.                                                             
       ``(7) Flight deck procedures or aircraft maneuvers to defend the    
   aircraft.                                                               
       ``(8) Any other subject matter deemed appropriate by the            
   Administrator.                                                          
     ``(c) Air Carrier Programs.--Within 60 days after the Administrator  
  issues the guidance under subsection (a) in final form, each air carrier
  shall develop a flight and cabin crew training program in accordance    
  with that guidance and submit it to the Administrator for approval.     
  Within 30 days after receiving an air carrier's program under this      
  subsection, the Administrator shall review the program and approve it or
  require the air carrier to make any revisions deemed necessary by the   
  Administrator for the program to meet the guidance requirements.        
     ``(d) Training.--Within 180 days after the Administrator approves the
  training program developed by an air carrier under this section, the air
  carrier shall complete the training of all flight and cabin crews in    
  accordance with that program.                                           
     ``(e) Updates.--The Administrator shall update the training guidance 
  issued under subsection (a) from time to time to reflect new or         
  different security threats and require air carriers to revise their     
  programs accordingly and provide additional training to their flight and
  cabin crews.''.                                                         
     (b) Conforming Amendment.--The chapter analysis for chapter 449 of   
  title 49, United States Code, is amended by inserting after the item    
  relating to section 44917 the following:                                


      ``44918. Crew training.''.                                              


          SEC. 108. SECURITY SCREENING BY PRIVATE COMPANIES.                      

     (a) In General.--Subchapter I of chapter 449 of title 49, United     
  States Code, is amended by adding at the end the following:             
          ``44919. Security screening pilot program                               

     ``(a) Establishment of Program.--The Under Secretary shall establish 
  a pilot program under which, upon approval of an application submitted  
  by an operator of an airport, the screening of passengers and property  
  at the airport under section 44901 will be carried out by the screening 
  personnel of a qualified private screening company under a contract     
  entered into with the Under Secretary.                                  
     ``(b) Period of Pilot Program.--The pilot program under this section 
  shall begin on the last day of the 1-year period beginning on the date  
  of enactment of this section and end on the last day of the 3-year      
  period beginning on such date of enactment.                             
     ``(c) Applications.--An operator of an airport may submit to the     
  Under Secretary an application to participate in the pilot program under
  this section.                                                           
     ``(d) Selection of Airports.--From among applications submitted under
  subsection (c), the Under Secretary may select for participation in the 
  pilot program not more than 1 airport from each of the 5 airport        
  security risk categories, as defined by the Under Secretary.            
     ``(e) Supervision of Screened Personnel.--The Under Secretary shall  
  provide Federal Government supervisors to oversee all screening at each 
  airport participating in the pilot program under this section and       
  provide Federal Government law enforcement officers at the airport      
  pursuant to this chapter.                                               
     ``(f) Qualified Private Screening Company.--A private screening      
  company is qualified to provide screening services at an airport        
  participating in the pilot program under this section if the company    
  will only employ individuals to provide such services who meet all the  
  requirements of this chapter applicable to Federal Government personnel 
  who perform screening services at airports under this chapter and will  
  provide compensation and other benefits to such individuals that are not
  less than the level of compensation and other benefits provided to such 
  Federal Government personnel in accordance with this chapter.           
     ``(g) Standards for Private Screening Companies.--The Under Secretary
  may enter into a contract with a private screening company to provide   
  screening at an airport participating in the pilot program under this   
  section only if the Under Secretary determines and certifies to Congress
  that the private screening company is owned and controlled by a citizen 
  of the United States, to the extent that the Under Secretary determines 
  that there are private screening companies owned and controlled by such 
  citizens.                                                               
     ``(h) Termination of Contracts.--The Under Secretary may terminate   
  any contract entered into with a private screening company to provide   
  screening services at an airport under the pilot program if the Under   
  Secretary finds that the company has failed repeatedly to comply with   
  any standard, regulation, directive, order, law, or contract applicable 
  to the hiring or training of personnel to provide such services or to   
  the provision of screening at the airport.                              
     ``(i) Election.--If a contract is in effect with respect to screening
  at an airport under the pilot program on the last day of the 3-year     
  period beginning on the date of enactment of this section, the operator 
  of the airport may elect to continue to have such screening carried out 
  by the screening personnel of a qualified private screening company     
  under a contract entered into with the Under Secretary under section    
  44920 or by Federal Government personnel in accordance with this        
  chapter.                                                                
          ``44920. Security screening opt-out program                             

     ``(a) In General.--On or after the last day of the 2-year period     
  beginning on the date on which the Under Secretary transmits to Congress
  the certification required by section 110(c) of the Aviation and        
  Transportation Security Act, an operator of an airport may submit to the
  Under Secretary an application to have the screening of passengers and  
  property at the airport under section 44901 to be carried out by the    
  screening personnel of a qualified private screening company under a    
  contract entered into with the Under Secretary.                         
     ``(b) Approval of Applications.--The Under Secretary may approve any 
  application submitted under subsection (a).                             
     ``(c) Qualified Private Screening Company.--A private screening      
  company is qualified to provide screening services at an airport under  
  this section if the company will only employ individuals to provide such
  services who meet all the requirements of this chapter applicable to    
  Federal Government personnel who perform screening services at airports 
  under this chapter and will provide compensation and other benefits to  
  such individuals that are not less than the level of compensation and   
  other benefits provided to such Federal Government personnel in         
  accordance with this chapter.                                           
     ``(d) Standards for Private Screening Companies.--The Under Secretary
  may enter into a contract with a private screening company to provide   
  screening at an airport under this section only if the Under Secretary  
  determines and certifies to Congress that--                             
       ``(1) the level of screening services and protection provided at the
   airport under the contract will be equal to or greater than the level   
   that would be provided at the airport by Federal Government personnel   
   under this chapter; and                                                 
       ``(2) the private screening company is owned and controlled by a    
   citizen of the United States, to the extent that the Under Secretary    
   determines that there are private screening companies owned and         
   controlled by such citizens.                                            
     ``(e) Supervision of Screened Personnel.--The Under Secretary shall  
  provide Federal Government supervisors to oversee all screening at each 
  airport at which screening services are provided under this section and 
  provide Federal Government law enforcement officers at the airport      
  pursuant to this chapter.                                               
     ``(g) Termination of Contracts.--The Under Secretary may terminate   
  any contract entered into with a private screening company to provide   
  screening services at an airport under this section the pilot program if
  the Under Secretary finds that the company has failed repeatedly to     
  comply with any standard, regulation, directive, order, law, or contract
  applicable to the hiring or training of personnel to provide such       
  services or to the provision of screening at the airport.               
     (b) Clerical Amendment.--The analysis for such subchapter is amended 
  by adding after the item relating to section 44918 the following:       


      ``44919. Security screening pilot program.                              


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


          SEC. 109. ENHANCED SECURITY MEASURES.                                   

     (a) In General.--The Under Secretary of Transportation for Security  
  may take the following actions:                                         
       (1) Require effective 911 emergency call capability for telephones  
   serving passenger aircraft and passenger trains.                        
       (2) Establish a uniform system of identification for all State and  
   local law enforcement personnel for use in obtaining permission to carry
   weapons in aircraft cabins and in obtaining access to a secured area of 
   an airport, if otherwise authorized to carry such weapons.              
       (3) Establish requirements to implement trusted passenger programs  
   and use available technologies to expedite the security screening of    
   passengers who participate in such programs, thereby allowing security  
   screening personnel to focus on those passengers who should be subject  
   to more extensive screening.                                            
       (4) In consultation with the Commissioner of the Food and Drug      
   Administration, develop alternative security procedures under which a   
   medical product to be transported on a flight of an air carrier would   
   not be subject to an inspection that would irreversibly damage the      
   product.                                                                
       (5) Provide for the use of technologies, including wireless and wire
   line data technologies, to enable the private and secure communication  
   of threats to aid in the screening of passengers and other individuals  
   on airport property who are identified on any State or Federal          
   security-related data base for the purpose of having an integrated      
   response coordination of various authorized airport security forces.    
       (6) In consultation with the Administrator of the Federal Aviation  
   Administration, consider whether to require all pilot licenses to       
   incorporate a photograph of the license holder and appropriate biometric
   imprints.                                                               
       (7) Provide for the use of voice stress analysis, biometric, or     
   other technologies to prevent a person who might pose a danger to air   
   safety or security from boarding the aircraft of an air carrier or      
   foreign air carrier in air transportation or intrastate air             
   transportation.                                                         
       (8) Provide for the use of technology that will permit enhanced     
   instant communications and information between airborne passenger       
   aircraft and appropriate individuals or facilities on the ground.       
     (b) Report.--Not later than 6 months after the date of enactment of  
  this Act, and annually thereafter until the Under Secretary has         
  implemented or decided not to take each of the actions specified in     
  subsection (a), the Under Secretary shall transmit to Congress a report 
  on the progress of the Under Secretary in evaluating and taking such    
  actions, including any legislative recommendations that the Under       
  Secretary may have for enhancing transportation security.''.            
          SEC. 110. SCREENING.                                                    

     (a) Review and Development of Ways To Strengthen Security.--Section  
  44932(c) of title 49, United States Code, is amended--                  
     (1) by striking ``x-ray'' in paragraph (4);                           

     (2) by striking ``and'' at the end of paragraph (4);                  

       (3) by striking ``passengers.'' in paragraph (5) and inserting      
   ``passengers;''; and                                                    
     (4) by adding at the end the following:                               

       ``(6) to strengthen and enhance the ability to detect or neutralize 
   nonexplosive weapons, such as biological, chemical, or similar          
   substances; and                                                         
       ``(7) to evaluate such additional measures as may be appropriate to 
   enhance inspection of passengers, baggage, and cargo.''.                
     (b) Passengers and Property.--Section 44901 of title 49, United      
  States Code, is amended--                                               
     (1) by redesignating subsection (c) as subsection (h); and            

     (2) by striking subsections (a) and (b) and inserting the following:  

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

     ``(c) Checked Baggage.-- A system must be in operation to screen all 
  checked baggage at all airports in the United States as soon as         
  practicable but not later than the 60th day following the date of       
  enactment of the Aviation and Transportation Security Act.              
    ``(d)  Explosive Detection Systems.--                                 

     ``(1) In general.-- The Under Secretary of Transportation for        
  Security shall take all necessary action to ensure that--               
       ``(A) explosive detection systems are deployed as soon as possible  
   to ensure that all United States airports described in section 44903(c) 
   have sufficient explosive detection systems to screen all checked       
   baggage no later than December 31, 2002, and that as soon as such       
   systems are in place at an airport, all checked baggage at the airport  
   is screened by those systems; and                                       
       ``(B) all systems deployed under subparagraph (A) are fully         
   utilized; and                                                           
       ``(C) if explosive detection equipment at an airport is unavailable,
   all checked baggage is screened by an alternative means.                
     ``(e) Mandatory Screening Where EDS Not Yet Available.-- As soon as  
  practicable but not later than the 60th day following the date of       
  enactment of the Aviation and Transportation Security Act and until the 
  requirements of subsection (b)(1)(A) are met, the Under Secretary shall 
  require alternative means for screening any piece of checked baggage    
  that is not screened by an explosive detection system. Such alternative 
  means may include 1 or more of the following:                           
       ``(1) A bag-match program that ensures that no checked baggage is   
   placed aboard an aircraft unless the passenger who checked the baggage  
   is aboard the aircraft.                                                 
     ``(2) Manual search.                                                  

       ``(3) Search by canine explosive detection units in combination with
   other means.                                                            
     ``(4) Other means or technology approved by the Under Secretary.      

     ``(f) Cargo Deadline.-- A system must be in operation to screen,     
  inspect, or otherwise ensure the security of all cargo that is to be    
  transported in all-cargo aircraft in air transportation and intrastate  
  air transportation as soon as practicable after the date of enactment of
  the Aviation and Transportation Security Act.                           
    ``(g)  Deployment of Armed Personnel.--                               

       ``(1) In general.-- The Under Secretary shall order the deployment  
   of law enforcement personnel authorized to carry firearms at each       
   airport security screening location to ensure passenger safety and      
   national security.                                                      
       ``(2) Minimum requirements.-- Except at airports required to enter  
   into agreements under subsection (c), the Under Secretary shall order   
   the deployment of at least 1 law enforcement officer at each airport    
   security screening location. At the 100 largest airports in the United  
   States, in terms of annual passenger enplanements for the most recent   
   calendar year for which data are available, the Under Secretary shall   
   order the deployment of additional law enforcement personnel at airport 
   security screening locations if the Under Secretary determines that the 
   additional deployment is necessary to ensure passenger safety and       
   national security.''.                                                   
    (c)  Deadline for Deployment of Federal Screeners.--                  

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

       (1) Deployment.-- Within 6 months after the date of enactment of    
   this Act, the Under Secretary of Transportation for Security shall      
   report to the                                                           

                    Committee on Commerce, Science, and Transportation of the     
          Senate and to the Committee on Transportation and Infrastructure of the 
          House of Representatives on the deployment of the systems required by   
          section 44901(c) of title 49, United States Code. The Under Secretary   
          shall include in the report--                                           
     (A) an installation schedule;                                         

     (B) the dates of installation of each system; and                     

     (C) the date on which each system installed is operational.           

       (2) Screening of small aircraft. --Within 1 year after the date of  
   enactment of this Act, the Under Secretary of Transportation for        
   Security shall transmit a report to the Committee on Commerce, Science, 
   and Transportation of the Senate and Committee on Transportation and    
   Infrastructure of the House of Representatives on the screening         
   requirements applicable to passengers boarding, and property being      
   carried aboard, aircraft with 60 seats or less used in scheduled        
   passenger service with recommendations for any necessary changes in     
   those requirements.                                                     
          SEC. 111. TRAINING AND EMPLOYMENT OF SECURITY SCREENING PERSONNEL.      

     (a) In General. --Section 44935 of title 49, United States Code, is  
  amended--                                                               
     (1) by redesignating subsection (f) as subsection (i); and            

     (2) by striking subsection (e) and inserting the following:           

    ``(e)  Security Screeners. --                                         

       ``(1) Training program. --The Under Secretary of Transportation for 
   Security shall establish a program for the hiring and training of       
   security screening personnel.                                           
     ``(2)  Hiring. --                                                     

       ``(A) Qualifications. --Within 30 days after the date of enactment  
   of the aviation Transportation Security Act, the Under Secretary shall  
   establish qualification standards for individuals to be hired by the    
   United States as security screening personnel. Notwithstanding any      
   provision of law, those standards shall require, at a minimum, an       
   individual--                                                            
       ``(i) to have a satisfactory or better score on a Federal security  
   screening personnel selection examination;                              
     ``(ii) to be a citizen of the United States;                          

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

       ``(1) Screener requirements. --Notwithstanding any provision of law,
   an individual may not be deployed as a security screener unless that    
   individual meets the following requirements:                            
       ``(A) The individual shall possess a high school diploma, a general 
   equivalency diploma, or experience that the Under Secretary has         
   determined to be sufficient for the individual to perform the duties of 
   the position.                                                           
       ``(B) The individual shall possess basic aptitudes and physical     
   abilities, including color perception, visual and aural acuity, physical
   coordination, and motor skills, to the following standards:             

       ``(i) Screeners operating screening equipment shall be able to      
   distinguish on the screening equipment monitor the appropriate imaging  
   standard specified by the Under Secretary.                              
       ``(ii) Screeners operating any screening equipment shall be able to 
   distinguish each color displayed on every type of screening equipment   
   and explain what each color signifies.                                  
       ``(iii) Screeners shall be able to hear and respond to the spoken   
   voice and to audible alarms generated by screening equipment in an      
   active checkpoint environment.                                          
       ``(iv) Screeners performing physical searches or other related      
   operations shall be able to efficiently and thoroughly manipulate and   
   handle such baggage, containers, and other objects subject to security  
   processing.                                                             
       ``(v) Screeners who perform pat-downs or hand-held metal detector   
   searches of individuals shall have sufficient dexterity and capability  
   to thoroughly conduct those procedures over an individual's entire body.
       ``(C) The individual shall be able to read, speak, and write English
   well enough to--                                                        
       ``(i) carry out written and oral instructions regarding the proper  
   performance of screening duties;                                        
       ``(ii) read English language identification media, credentials,     
   airline tickets, and labels on items normally encountered in the        
   screening process;                                                      
       ``(iii) provide direction to and understand and answer questions    
   from English-speaking individuals undergoing screening; and             
       ``(iv) write incident reports and statements and log entries into   
   security records in the English language.                               
       ``(D) The individual shall have satisfactorily completed all        
   initial, recurrent, and appropriate specialized training required by the
   security program, except as provided in paragraph (3).                  
       ``(2) Veterans preference. --The Under Secretary shall provide a    
   preference for the hiring of an individual as a security screener if the
   individual is a member or former member of the armed forces and if the  
   individual is entitled, under statute, to retired, retirement, or       
   retainer pay on account of service as a member of the armed forces.     
       ``(3) Exceptions. --An individual who has not completed the training
   required by this section may be deployed during the on-the-job portion  
   of training to perform functions if that individual--                   
     ``(A) is closely supervised; and                                      

       ``(B) does not make independent judgments as to whether individuals 
   or property may enter a sterile area or aircraft without further        
   inspection.                                                             
       ``(4) Remedial training. --No individual employed as a security     
   screener may perform a screening function after that individual has     
   failed an operational test related to that function until that          
   individual has successfully completed the remedial training specified in
   the security program.                                                   
       ``(5) Annual proficiency review. --The Under Secretary shall provide
   that an annual evaluation of each individual assigned screening duties  
   is conducted and documented. An individual employed as a security       
   screener may not continue to be employed in that capacity unless the    
   evaluation demonstrates that the individual--                           
       ``(A) continues to meet all qualifications and standards required to
   perform a screening function;                                           
       ``(B) has a satisfactory record of performance and attention to duty
   based on the standards and requirements in the security program; and    
       ``(C) demonstrates the current knowledge and skills necessary to    
   courteously, vigilantly, and effectively perform screening functions.   
       ``(6) Operational testing. --In addition to the annual proficiency  
   review conducted under paragraph (5), the Under Secretary shall provide 
   for the operational testing of such personnel.                          
    ``(g)  Training.--                                                    

       ``(1) Use of other agencies.-- The Under Secretary may enter into a 
   memorandum of understanding or other arrangement with any other Federal 
   agency or department with appropriate law enforcement responsibilities, 
   to provide personnel,                                                   

                    resources, or other forms of assistance in the training of    
          security screening personnel.                                           
       ``(2) Training plan. --Within 60 days after the date of enactment of
   the Aviation and Transportation Security Act, the Under Secretary shall 
   develop a plan for the training of security screening personnel. The    
   plan shall require, at a minimum, that a security screener--            
       ``(A) has completed 40 hours of classroom instruction or            
   successfully completed a program that the Under Secretary determines    
   will train individuals to a level of proficiency equivalent to the level
   that would be achieved by such classroom instruction;                   
     ``(B) has completed 60 hours of on-the-job instructions; and          

       ``(C) has successfully completed an on-the-job training examination 
   prescribed by the Under Secretary.                                      
       ``(3) Equipment-specific training. --An individual employed as a    
   security screener may not use any security screening device or equipment
   in the scope of that individual's employment unless the individual has  
   been trained on that device or equipment and has successfully completed 
   a test on the use of the device or equipment.                           
    ``(h)  Technological Training. --                                     

       ``(1) In general. --The Under Secretary shall require training to   
   ensure that screeners are proficient in using the most up-to-date new   
   technology and to ensure their proficiency in recognizing new threats   
   and weapons.                                                            
       ``(2) Periodic assessments. --The Under Secretary shall make        
   periodic assessments to determine if there are dual use items and inform
   security screening personnel of the existence of such items.            
       ``(3) Current lists of dual use items. --Current lists of dual use  
   items shall be part of the ongoing training for screeners.              
       ``(4) Dual use defined. --For purposes of this subsection, the term 
   `dual use' item means an item that may seem harmless but that may be    
   used as a weapon.                                                       
     ``(i) Limitation on Right To Strike. --An individual that screens    
  passengers or property, or both, at an airport under this section may   
  not participate in a strike, or assert the right to strike, against the 
  person (including a governmental entity) employing such individual to   
  perform such screening.                                                 
     ``(j) Uniforms. --The Under Secretary shall require any individual   
  who screens passengers and property pursuant to section 44901 to be     
  attired while on duty in a uniform approved by the Under Secretary.''.  
     (b) Conforming Amendments. --Section 44936(a)(1) of title 49, United 
  States Code, is amended--                                               
       (1) in subparagraph (A) by inserting ``as a security screener under 
   section 44935(e) or a position'' after ``a position''; and              
     (2) in subparagraph (E) by striking clause (iv).                      

     (c) Transition. --The Under Secretary of Transportation for Security 
  shall complete the full implementation of section 44935 (e), (f), (g),  
  and (h) of title 49, United States Code, as amended by subsection (a),  
  as soon as is practicable. The Under Secretary may make or continue such
  arrangements for the training of security screeners under that section  
  as the Under Secretary determines necessary pending full implementation 
  of that section as so amended.                                          
     (d) Screener Personnel. --Notwithstanding any other provision of law,
  the Under Secretary of Transportation for Security may employ, appoint, 
  discipline, terminate, and fix the compensation, terms, and conditions  
  of employment of Federal service for such a number of individuals as the
  Under Secretary determines to be necessary to carry out the screening   
  functions of the Under Secretary under section 44901 of title 49, United
  States Code. The Under Secretary shall establish levels of compensation 
  and other benefits for individuals so employed.                         
          SEC. 112. RESEARCH AND DEVELOPMENT.                                     

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

       ``(D) the potential release of chemical, biological, or similar     
   weapons or devices either within an aircraft or within an airport;''.   
    (b)  Additional Matters Regarding Research and Development.--         

       (1) Additional program requirements. --Subsection (a) of section    
   44912 of title 49, United States Code, is amended--                     
     (A) by redesignating paragraph (4) as paragraph (5); and              

     (B) by inserting after paragraph (3) the following new paragraph (4): 

     ``(4)(A) In carrying out the program established under this          
  subsection, the Administrator shall designate an individual to be       
  responsible for engineering, research, and development with respect to  
  security technology under the program.                                  
     ``(B) The individual designated under subparagraph (A) shall use     
  appropriate systems engineering and risk management models in making    
  decisions regarding the allocation of funds for engineering, research,  
  and development with respect to security technology under the program.  
     ``(C) The individual designated under subparagraph (A) shall, on an  
  annual basis, submit to the Research, Engineering and Development       
  Advisory Committee a report on activities under this paragraph during   
  the preceding year. Each report shall include, for the year covered by  
  such report, information on--                                           
       ``(i) progress made in engineering, research, and development with  
   respect to security technology;                                         
       ``(ii) the allocation of funds for engineering, research, and       
   development with respect to security technology; and                    
       ``(iii) engineering, research, and development with respect to any  
   technologies drawn from other agencies, including the rationale for     
   engineering, research, and development with respect to such             
   technologies.''.                                                        
       (2) Review of threats. --Subsection (b)(1) of that section is       
   further amended--                                                       
       (A) by redesignating subparagraphs (A) through (G) as subparagraphs 
   (B) through (H) respectively; and                                       
       (B) by inserting before subparagraph (B), as so redesignated, the   
   following new subparagraph (A):                                         
       ``(A) a comprehensive systems analysis (employing vulnerability     
   analysis, threat attribute definition, and technology roadmaps) of the  
   civil aviation system, including--                                      
       ``(i) the destruction, commandeering, or diversion of civil aircraft
   or the use of civil aircraft as a weapon; and                           
       ``(ii) the disruption of civil aviation service, including by cyber 
   attack;''.                                                              
       (3) Scientific advisory panel. --Subsection (c) of that section is  
   amended to read as follows:                                             
     ``(c) Scientific Advisory Panel. --(1) The Administrator shall       
  establish a scientific advisory panel, as a subcommittee of the         
  Research, Engineering, and Development Advisory Committee, to review,   
  comment on, advise the progress of, and recommend modifications in, the 
  program established under subsection (a) of this section, including the 
  need for long-range research programs to detect and prevent catastrophic
  damage to commercial aircraft, commercial aviation facilities,          
  commercial aviation personnel and passengers, and other components of   
  the commercial aviation system by the next generation of terrorist      
  weapons.                                                                
     ``(2)(A) The advisory panel shall consist of individuals who have    
  scientific and technical expertise in--                                 
       ``(i) the development and testing of effective explosive detection  
   systems;                                                                
       ``(ii) aircraft structure and experimentation to decide on the type 
   and minimum weights of explosives that an effective explosive detection 
   technology must be capable of detecting;                                
       ``(iii) technologies involved in minimizing airframe damage to      
   aircraft from explosives; and                                           
       ``(iv) other scientific and technical areas the Administrator       
   considers appropriate.                                                  
     ``(B) In appointing individuals to the advisory panel, the           
  Administrator should consider individuals from academia and the national
  laboratories, as appropriate.                                           
     ``(3) The Administrator shall organize the advisory panel into teams 
  capable of undertaking the review of policies and technologies upon     
  request.                                                                
     ``(4) Not later than 90 days after the date of the enactment of the  
  Aviation and Transportation Security Act, and every two years           
  thereafter, the Administrator shall review the composition of the       
  advisory panel in order to ensure that the expertise of the individuals 
  on the panel is suited to the current and anticipated duties of the     
  panel.''.                                                               

          SEC. 113. FLIGHT SCHOOL SECURITY.                                       

     (a) In General.-- Subchapter II of chapter 449 of title 49, United   
  States Code, is amended by adding at the end the following new section: 
          ``44939. Training to operate certain aircraft                           

     ``(a) Waiting Period.-- A person subject to regulation under this    
  part may provide training in the operation of any aircraft having a     
  maximum certificated takeoff weight of 12,500 pounds or more to an alien
  (as defined in section 101(a)(3) of the Immigration and Nationality Act 
  (8 U.S.C. 1101(a)(3))) or to any other individual specified by the Under
  Secretary of Transportation for Security only if--                      
       ``(1) that person has first notified the Attorney General that the  
   individual has requested such training and furnished the Attorney       
   General with that individual's identification in such form as the       
   Attorney General may require; and                                       
       ``(2) the Attorney General has not directed, within 45 days after   
   being notified under paragraph (1), that person not to provide the      
   requested training because the Attorney General has determined that the 
   individual presents a risk to aviation or national security.            
     ``(b) Interruption of Training.-- If the Attorney General, more than 
  45 days after receiving notification under subsection (a) from a person 
  providing training described in subsection (a), determines that the     
  individual presents a risk to aviation or national security, the        
  Attorney General shall immediately notify the person providing the      
  training of the determination and that person shall immediately         
  terminate the training.                                                 
     ``(c) Covered Training.-- For the purposes of subsection (a),        
  training includes in-flight training, training in a simulator, and any  
  other form or aspect of training.                                       
     ``(d) Security Awareness Training for Employees.-- The Under         
  Secretary shall require flight schools to conduct a security awareness  
  program for flight school employees to increase their awareness of      
  suspicious circumstances and activities of individuals enrolling in or  
  attending flight school.''.                                             
     (b) Clerical Amendment.-- The table of sections at the beginning of  
  such chapter is amended by adding at the end the following new item:    


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



     (c) International Cooperation.-- The Secretary of Transportation, in 
  consultation with the Secretary of State, shall work with the           
  International Civil Aviation Organization and the civil aviation        
  authorities of other countries to improve international aviation        
  security through screening programs for flight instruction candidates.  
     (d) Effective Date.-- The amendment made by subsection (a) applies to
  applications for training received after the date of enactment of this  
  Act.                                                                    
          SEC. 114. INCREASED PENALTIES FOR INTERFERENCE WITH SECURITY PERSONNEL. 

     (a) In General.-- Chapter 465 of title 49, United States Code, is    
  amended by inserting after section 46502 the following:                 
          ``46503. Interference with security screening personnel                 

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


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


          SEC. 117. 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 the Aviation and Transportation Security Act, each air     
   carrier and foreign air carrier operating a passenger flight in foreign 
   air transportation to the United States shall provide to the            
   Commissioner of Customs by electronic transmission a passenger and crew 
   manifest containing the information specified in paragraph (2). Carriers
   may use the advanced passenged information system established under     
   section 431 of the Tariff Act of 1930 (19 U.S.C. 1431) to provide the   
   information required by the preceding sentence.                         

       ``(2) Information. --A passenger and crew manifest for a flight     
   required under paragraph (1) shall contain the following information:   
     ``(A) The full name of each passenger and crew member.                

       ``(B) The date of birth and citizenship of each passenger and crew  
   member.                                                                 
     ``(C) The sex of each passenger and crew member.                      

       ``(D) The passport number and country of issuance of each passenger 
   and crew member if required for travel.                                 
       ``(E) The United States visa number or resident alien card number of
   each passenger and crew member, as applicable.                          
       ``(F) Such other information as the Under Secretary, in consultation
   with the Commissioner of Customs, determines is reasonably necessary to 
   ensure aviation safety.                                                 
       ``(3) Passenger name records. --The carriers shall make passenger   
   name record information available to the Customs Service upon request.  
       ``(4) Transmission of manifest. --Subject to paragraph (5), a       
   passenger and crew manifest required for a flight under paragraph (1)   
   shall be transmitted to the Customs Service in advance of the aircraft  
   landing in the United States in such manner, time, and form as the      
   Customs Service prescribes.                                             
       ``(5) Transmission of manifests to other federal agencies. --Upon   
   request, information provided to the Under Secretary or the Customs     
   Service under this subsection may be shared with other Federal agencies 
   for the purpose of protecting national security.''.                     
          SEC. 118. AIR TRANSPORTATION ARRANGEMENTS IN CERTAIN STATES.            

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

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

     (2) October 1, 2002.                                                  

     (e) Extension. --Notwithstanding subsection (d), if the Secretary    
  determines that it is in the public interest, the Secretary may extend  
  the termination date under subsection (d)(2) until a date no later than 
  October 1, 2003.                                                        
     (f) Reports. --If the Secretary approves any such agreement, request,
  modification, or cancellation under this section and grants an          
  exemption, the Secretary shall transmit a report to Committee on        
  Commerce, Science, and Transportation of the Senate and the Committee on
  Transportation and Infrastructure of the House of Representatives within
  6 months describing what actions have been taken by the air carriers to 
  which the exemption was granted. The Secretary shall also notify those  
  committees if the Secretary extends the termination date under          
  subsection (e).                                                         
          SEC. 115. AIRLINE COMPUTER RESERVATION SYSTEMS.                         

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

          SEC. 116. SECURITY SERVICE FEE.                                         

     (a) In General.--Subchapter II of chapter 449 is amended by adding at
  the end the following:                                                  
          ``44940. Security service fee                                           

    ``(a)  General Authority.--                                           

       ``(1) Passenger fees.--The Under Secretary of Transportation for    
   Security shall impose a uniform fee, on passengers of air carriers and  
   foreign air carriers in air transportation and intrastate air           
   transportation originating at airports in the United States, to pay for 
   the following costs of providing civil aviation security services:      
       ``(A) Salary, benefits, overtime, retirement and other costs of     
   screening personnel, their supervisors and managers, and Federal law    
   enforcement personnel deployed at airport security screening locations  
   under section 44901.                                                    
       ``(B) The costs of training personnel described in subparagraph (A),
   and the acquisition, operation, and maintenance of equipment used by    
   such personnel.                                                         
       ``(C) The costs of performing background investigations of personnel
   described in subparagraphs (A), (D), (F), and (G).                      
     ``(D) The costs of the Federal air marshals program.                  

       ``(E) The costs of performing civil aviation security research and  
   development under this title.                                           
     ``(F) The costs of Federal Security Managers under section 44903.     

       ``(G) The costs of deploying Federal law enforcement personnel      
   pursuant to section 44903(h).                                           
      The amount of such costs shall be determined by the Under Secretary  
   and shall not be subject to judicial review.                            
     ``(2)  Air carrier fees.--                                            

       ``(A) Authority.--In addition to the fee imposed pursuant to        
   paragraph (1), and only to the extent that the Under Secretary estimates
   that such fee will be insufficient to pay for the costs of providing    
   civil aviation security services described in paragraph (1), the Under  
   Secretary may impose a fee on air carriers and foreign air carriers     
   engaged in air transportation and intrastate air transportation to pay  
   for the difference between any such costs and the amount collected from 
   such fee, as estimated by the Under Secretary at the beginning of each  
   fiscal year. The estimates of the Under Secretary under this            
   subparagraph are not subject to judicial review.                        
     ``(B)  Limitations.--                                                 

       ``(i) Overall limit.--The amounts of fees collected under this      
   paragraph for each fiscal year may not exceed, in the aggregate, the    
   amounts paid in calendar year 2000 by carriers described in subparagraph
   (A) for screening passengers and property, as determined by the Under   
   Secretary.                                                              
       ``(ii) Per-carrier limit.--The amount of fees collected under this  
   paragraph from an air carrier described in subparagraph (A) for each of 
   fiscal years 2002, 2003, and 2004 may not exceed the amount paid in     
   calendar year 2000 by that carrier for screening passengers and         
   property, as determined by the Under Secretary.                         
       ``(iii) Adjustment of per-carrier limit.--For fiscal year 2005 and  
   subsequent fiscal years, the per-carrier limitation under clause (ii)   
   may be determined by the Under Secretary on the basis of market share or
   any other appropriate measure in lieu of actual screening costs in      
   calendar year 2000.                                                     
       ``(iv) Finality of determinations.--Determinations of the Under     
   Secretary under this subparagraph are not subject to judicial review.   
       ``(C) Special rule for fiscal year 2002.--The amount of fees        
   collected under this paragraph from any carrier for fiscal year 2002 may
   not exceed the amounts paid by that carrier for screening passengers and
   property for a period of time in calendar year 2000 proportionate to the
   period of time in fiscal year 2002 during which fees are collected under
   this paragraph.                                                         
     ``(b) Schedule of Fees.--In imposing fees under subsection (a), the  
  Under Secretary shall ensure that the fees are reasonably related to the
  Transportation Security Administration's costs of providing services    
  rendered.                                                               
     ``(c) Limitation on Fee.--Fees imposed under subsection (a)(1) may   
  not exceed $2.50 per enplanement in air transportation or intrastate air
  transportation that                                                     

                    originates at an airport in the United States, except that the
          total amount of such fees may not exceed $5.00 per one-way trip.        
    ``(d)  Imposition of Fee.--                                           

       ``(1) In general.--Notwithstanding section 9701 of title 31 and the 
   procedural requirements of section 553 of title 5, the Under Secretary  
   shall impose the fee under subsection (a)(1), and may impose a fee under
   subsection (a)(2), through the publication of notice of such fee in the 
   Federal Register and begin collection of the fee within 60 days of the  
   date of enactment of this Act, or as soon as possible thereafter.       
       ``(2) Special rules passenger fees.--A fee imposed under subsection 
   (a)(1) through the procedures under subsection (d) shall apply only to  
   tickets sold after the date on which such fee is imposed. If a fee      
   imposed under subsection (a)(1) through the procedures under subsection 
   (d) on transportation of a passenger of a carrier described in          
   subsection (a)(1) is not collected from the passenger, the amount of the
   fee shall be paid by the carrier.                                       
       ``(3) Subsequent modification of fee.--After imposing a fee in      
   accordance with paragraph (1), the Under Secretary may modify, from time
   to time through publication of notice in the Federal Register, the      
   imposition or collection of such fee, or both.                          
       ``(4) Limitation on collection.--No fee may be collected under this 
   section except to the extent that the expenditure of the fee to pay the 
   costs of activities and services for which the fee is imposed is        
   provided for in advance in an appropriations Act.                       
    ``(e)  Administration of Fees.--                                      

       ``(1) Fees payable to under secretary.--All fees imposed and amounts
   collected under this section are payable to the Under Secretary.        
       ``(2) Fees collected by air carrier.--A fee imposed under subsection
   (a)(1) shall be collected by the air carrier or foreign air carrier that
   sells a ticket for transportation described in subsection (a)(1).       
       ``(3) Due date for remittance.--A fee collected under this section  
   shall be remitted on the last day of each calendar month by the carrier 
   collecting the fee. The amount to be remitted shall be for the calendar 
   month preceding the calendar month in which the remittance is made.     
       ``(4) Information.--The Under Secretary may require the provision of
   such information as the Under Secretary decides is necessary to verify  
   that fees have been collected and remitted at the proper times and in   
   the proper amounts.                                                     
       ``(5) Fee not subject to tax.--For purposes of section 4261 of the  
   Internal Revenue Code of 1986 (26 U.S.C. 4261), a fee imposed under this
   section shall not be considered to be part of the amount paid for       
   taxable transportation.                                                 
       ``(6) Cost of collecting fee.--No portion of fee collected under    
   this section may be retained by the air carrier or foreign air carrier  
   for the costs of collecting, handling, or remitting the fee except for  
   interest accruing to the carrier after collection and before remittance.
     ``(f) Receipts Credited as Offsetting Collections.--Notwithstanding  
  section 3302 of title 31, any fee collected under this section--        
       ``(1) shall be credited as offsetting collections to the account    
   that finances the activities and services for which the fee is imposed; 
       ``(2) shall be available for expenditure only to pay the costs of   
   activities and services for which the fee is imposed; and               
     ``(3) shall remain available until expended.                          

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


      ``44940. Security service fee''.                                        



    (c)  Specific Authorization of Appropriations.--                      

       (1) In general. --Part C of subtitle VII of title 49, United States 
   Code, is amended by adding at the end the following:                    
           ``CHAPTER 483--AVIATION SECURITY FUNDING                               


      ``Sec.                                                                  

      ``48301. Aviation security funding.                                     


          ``48301. Aviation security funding                                      

     ``(a) In General. --There are authorized to be appropriated for      
  fiscal years 2002, 2003, 2004, and 2005 such sums as may be necessary to
  carry out chapter 449 and related aviation security activities under    
  this title. Any amounts appropriated pursuant to this section for fiscal
  year 2002 shall remain available until expended.                        
     ``(b) Grants for Aircraft Security.--There is authorized to be       
  appropriated $500,000,000 for fiscal year 2002 to the Secretary of      
  Transportation to make grants to or other agreements with air carriers  
  (including intrastate air carriers) to--                                
       ``(1) fortify cockpit doors to deny access from the cabin to the    
   pilots in the cockpit;                                                  
       ``(2) provide for the use of video monitors or other devices to     
   alert the cockpit crew to activity in the passenger cabin;              
       ``(3) ensure continuous operation of the aircraft transponder in the
   event the crew faces an emergency; and                                  
       ``(4) provide for the use of other innovative technologies to       
   enhance aircraft security.''.                                           
       (2) Conforming amendment. --The subtitle analysis for subtitle VII  
   of title 49, United States Code, is amended by inserting after the item 
   relating to chapter 482 the following:                                  




          ``483. Aviation Security Funding                48301''.


          SEC. 119. INCREASED FUNDING FLEXIBILITY FOR AVIATION SECURITY.          

    (a)  Limited Use of Airport Improvement Program Funds.--              

       (1) Airport development funds. --Section 47102(3) of title 49,      
   United States Code, is amended by adding at the end the following:      
       ``(J) in fiscal year 2002, any additional security related activity 
   required by law or by the Secretary after September 11, 2001, and before
   October 1, 2002.                                                        
       ``(K) in fiscal year 2002 with respect to funds apportioned under   
   section 47114 in fiscal years 2001 and 2002, any activity, including    
   operational activities, of an airport that is not a primary airport if  
   that airport is located within the confines of enhanced class B         
   airspace, as defined by Notice to Airmen FDC 1/0618 issued by the       
   Federal Aviation Administration and the activity was carried out when   
   any restriction in the Notice is in effect.                             
       ``(L) in fiscal year 2002, payments for debt service on indebtedness
   incurred to carry                                                       

                    out a project at an airport owned or controlled by the sponsor
          or at a privately owned or operated airport passenger terminal financed 
          by indebtedness incurred by the sponsor if the Secretary determines that
          such payments are necessary to prevent a default on the indebtedness.''.
       (2) Allowable costs. --Section 47110(b)(2) of title 49, United      
   States Code, is amended--                                               
     (A) by striking ``or'' in subparagraph (B);                           

     (B) by inserting ``or'' after ``executed;'' in subparagraph (C); and  

     (C) by adding at the end the following:                               

       ``(D) if the cost is incurred after September 11, 2001, for a       
   project described in section 47102(3)(J), 47102(3)(K), or 47102(3)(L)   
   and shall not depend upon the date of execution of a grant agreement    
   made under this subchapter;''.                                          
       (3) Discretionary grants.-- Section 47115 of title 49, United States
   Code, is amended by adding at the end the following:                    
     ``(i) Considerations for Project Under Expanded Security             
  Eligibility.-- In order to assure that funding under this subchapter is 
  provided to the greatest needs, the Secretary, in selecting a project   
  described in section 47102(3)(J) for a grant, shall consider the        
  non-federal resources available to sponsor, the use of such non-federal 
  resources, and the degree to which the sponsor is providing increased   
  funding for the project.''.                                             
       (4) Federal share.-- Section 47109(a) of title 49, United States    
   Code, is amended--                                                      
     (A) by striking ``and'' in paragraph (3);                             

       (B) by striking ``47134.'' in paragraph (4) and inserting ``47134;  
   and''; and                                                              
     (C) by adding at the end the following:                               

       ``(5) for fiscal year 2002, 100 percent for a project described in  
   section 47102(3)(J), 47102(3)(K), or 47102(3)(L).''.                    
       (5) Airport development. --Section 47102(3)(B) of title 49, United  
   States Code, is amended--                                               
     (A) by striking ``and'' at the end of clause (viii);                  

       (B) by striking the period at the end of clause (ix) and inserting  
   ``; and''; and                                                          
     (C) by inserting after clause (ix) the following new clause:          

       ``(x) replacement of baggage conveyor systems, and reconfiguration  
   of terminal baggage areas, that the Secretary determines are necessary  
   to install bulk explosive detection devices.''.                         
     (b) Apportioned Funds.-- For the purpose of carrying out section     
  47114 of title 49, United States Code, for fiscal year 2003, the        
  Secretary shall use, in lieu of passenger boardings at an airport during
  the prior calendar year, the greater of--                               
     (1) the number of passenger boardings at that airport during 2000; or 

     (2) the number of passenger boardings at that airport during 2001.    

     (c) Expedited Processing of Security-Related PFC Requests.-- The     
  Administrator of the Federal Aviation Administration shall, to the      
  extent feasible, expedite the processing and approval of passenger      
  facility fee requests under subchapter I of chapter 471 of title 49,    
  United States Code, for projects described in section 47192(3)(J) of    
  title 49, United States Code.                                           
     (d) Amendment of General Fee Schedule Provision.-- Section           
  45301(b)(1)(B) of title 49, United States Code, is amended--            
     (1) by striking ``directly'' and inserting ``reasonably'';            

       (2) by striking ``Administration's costs'' and inserting            
   ``Administration's costs, as determined by the Administrator,''; and    
       (3) by adding at the end ``The Determination of such costs by the   
   Administrator is not subject to judicial review.''.                     

          SEC. 120. CHEMICAL AND BIOLOGICAL WEAPON DETECTION.                     

     Section 44903(c)(2)(C) of title 49, United States Code, is amended to
  read as follows:                                                        
       ``(C) Maximum use of chemical and biological weapon detection       
   equipment. --The Secretary of Transportation may require airports to    
   maximize the use of technology and equipment that is designed to detect 
   or neutralize potential chemical or biological weapons.''.              
                    SEC. 121. AUTHORIZATION OF FUNDS FOR REIMBURSEMENT OF AIRPORTS
          FOR SECURITY MANDATES.                                                  
     (a) Airport Security. --There is authorized to be appropriated to the
  Secretary of Transportation for fiscal years 2002 and 2003 a total of   
  $1,500,000,000 to reimburse airport operators, on-airport parking lots, 
  and vendors of on-airfield direct services to air carriers for direct   
  costs incurred by such operators to comply with new, additional, or     
  revised security requirements imposed on such operators by the Federal  
  Aviation Administration or Transportation Security Administration on or 
  after September 11, 2001. Such sums shall remain available until        
  expended.                                                               
     (b) Documentation of Costs; Audit. --The Secretary may not reimburse 
  an airport operator, on-airport parking lot, or vendor of on-airfield   
  direct services to air carriers under this section for any cost for     
  which the airport operator, on-airport parking lot, or vendor of        
  on-airfield direct services does not demonstrate to the satisfaction of 
  the Secretary, using sworn financial statements or other appropriate    
  data, that--                                                            
     (1) the cost is eligible for reimbursement under subsection (a); and  

       (2) the cost was incurred by the airport operator, on-airport       
   parking lot, or vendor of on-airfield direct services to air carriers.  
    The Inspector General of the Department of Transportation and the     
  Comptroller General of the United States may audit such statements and  
  may request any other information necessary to conduct such an audit.   
     (c) Claim Procedure. --Within 30 days after the date of enactment of 
  this Act, the Secretary, after consultation with airport operators,     
  on-airport parking lots, and vendors of on-airfield direct services to  
  air carriers, shall publish in the Federal Register the procedures for  
  filing claims for reimbursement under this section of eligible costs    
  incurred by airport operators.                                          
          SEC. 122. SENSE OF THE CONGRESS.                                        

    It is the sense of the Congress that--                                

       (1) an airport receiving Federal financial assistance should meet   
   with the tenants of the airport (other than air carriers and foreign air
   carriers) to discuss adjustments of the rent of the tenants to account  
   for losses in revenue incurred by the tenants on and after September 11,
   2001;                                                                   
       (2) an air carrier that received financial assistance under the Air 
   Transportation Safety and System Stabilization Act or under title 49,   
   United States Code, since September 11, 2001, should meet with airport  
   operators to discuss payment of applicable rates, charges, and fees; and
       (3) the Federal Aviation Administration should maintain its current 
   restriction on carry-on baggage of 1 bag and 1 personal item.           
          SEC. 123. AIRPORT IMPROVEMENT PROGRAMS.                                 

    (a)  Competition Plan. --Section 47106(f) 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) 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 Aviation and       
  Transportation Security Act'' after ``21st Century''.                   
          SEC. 124. TECHNICAL CORRECTIONS.                                        

     (a) Report Deadline. --Section 106(a) of the Air Transportation      
  Safety and System Stabilization Act (Public Law 107 42) 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 or'' 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 Certain Air Carriers. --                      

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

     (a) In General. --Subchapter II of chapter 449 of title 49, United   
  States Code, is amended by inserting at the end the following:          
          ``44941. Immunity for reporting suspicious activities                   

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

       ``(1) any disclosure made with actual knowledge that the disclosure 
   was false, inaccurate, or misleading; or                                
       ``(2) any disclosure made with reckless disregard as to the truth or
   falsity of that disclosure.''.                                          
     (b) Conforming Amendment. --The chapter analysis for such chapter is 
  amended by adding at the end the following:                             


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


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

     (a) National Institute of Justice Study. --The National Institute of 
  Justice shall assess the range of less-than-lethal weaponry available   
  for use by a flight deck crewmember temporarily to incapacitate an      
  individual who presents a clear and present danger to the safety of the 
  aircraft, its passengers, or individuals on the ground and report its   
  findings and recommendations to the Secretary of Transportation within  
  90 days after the date of enactment of this Act.                        
     (b) Arming Flight Deck Crew. --Section 44903 of title 49, United     
  States Code, is amended by adding at the end the following:             
     ``(h) Authority To Arm Flight Deck Crew With Less-Than-Lethal        
  Weapons.--                                                              
       ``(1) In general. --If the Secretary, after receiving the           
   recommendations of the National Institute of Justice, determines, with  
   the approval of the Attorney General and the Secretary of State, that it
   is appropriate and necessary and would effectively serve the public     
   interest in avoiding air piracy, the Secretary may authorize members of 
   the flight deck crew on any aircraft providing air transportation or    
   intrastate air transportation to carry a less-than-lethal weapon while  
   the aircraft is engaged in providing such transportation.               
       ``(2) Usage. --If the Secretary grants authority under paragraph (1)
   for flight deck crew members to carry a less-than-lethal weapon while   
   engaged in providing air transportation or intrastate air               
   transportation, the Secretary shall--                                   

       ``(A) prescribe rules requiring that any such crew member be trained
   in the proper use of the weapon; and                                    
       ``(B) prescribe guidelines setting forth the circumstances under    
   which such weapons may be used.''.                                      
          SEC. 127. MAIL AND FREIGHT WAIVERS.                                     

       (a) In General. --During a national emergency affecting air         
   transportation or intrastate air transportation, the Secretary of       
   Transportation, after consultation with the Transportation Security     
   Oversight Board, may grant a complete or partial waiver of any          
   restrictions on the carriage by aircraft of freight, mail, emergency    
   medical supplies, personnel, or patients on aircraft, imposed by the    
   Department of Transportation (or other Federal agency or department)    
   that would permit such carriage of freight, mail, emergency medical     
   supplies, personnel, or patients on flights, to, from, or within a State
   if the Secretary determines that--                                      
     (1) extraordinary air transportation needs or concerns exist; and     

       (2) the waiver is in the public interest, taking into consideration 
   the isolation of and dependence on air transportation of the State.     
     (b) Limitations. --The Secretary may impose reasonable limitations on
  any such waiver.                                                        
          SEC. 128. FLIGHT DECK SECURITY.                                         

     The pilot of a passenger aircraft operated by an air carrier in air  
  transportation or intrastate air transportation is authorized to carry a
  firearm into the cockpit if--                                           
     (1) the Under Secretary of Transportation for Security approves;      

     (2) the air carrier approves;                                         

     (3) the firearm is approved by the Under Secretary; and               

       (4) the pilot has received proper training for the use of the       
   firearm, as determined by the Under Secretary.                          
          SEC. 129. AMENDMENTS TO AIRMEN REGISTRY AUTHORITY.                      

    Section 44703(g) of title 49, United States Code, is amended--        

     (1) in the first sentence of paragraph (1)--                          

     (A) by striking ``pilots'' and inserting ``airmen''; and              

       (B) by striking the period and inserting ``and related to combating 
   acts of terrorism.''; and                                               
     (2) by adding at the end, the following new paragraphs:               

     ``(3) For purposes of this section, the term `acts of terrorism'     
  means an activity that involves a violent act or an act dangerous to    
  human life that is a violation of the criminal laws of the Untied States
  or of any State, or that would be a criminal violation if committed     
  within the jurisdiction of the United States or of any State, and       
  appears to be intended to intimidate or coerce a civilian population to 
  influence the policy of a government by intimidation or coercion or to  
  affect the conduct of a government by assassination or kidnaping.       
     ``(4) The Administrator is authorized and directed to work with State
  and local authorities, and other Federal agencies, to assist in the     
  identification of individuals applying for or holding airmen            
  certificates.''.                                                        
          SEC. 130. RESULTS-BASED MANAGEMENT.                                     

     Subchapter II of chapter 449 of title 49, United States Code, is     
  amended by adding at the end the following:                             
          ``44942. Performance goals and objectives                               

    ``(a)  Short Term Transition.--                                       

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

     ``(1)  Performance plan and report.--                                 

     ``(A)  Performance plan.--                                            

       ``(i) Each year, consistent with the requirements of the Government 
   Performance and Results Act of 1993 (GPRA), the Secretary and the Under 
   Secretary for Transportation Security shall agree on a performance plan 
   for the succeeding 5 years that establishes measurable goals            

                    and objectives for aviation security. The plan shall identify 
          action steps necessary to achieve such goals.                           
       ``(ii) In addition to meeting the requirements of GPRA, the         
   performance plan should clarify the responsibilities of the Secretary,  
   the Under Secretary for Transportation Security and any other agency or 
   organization that may have a role in ensuring the safety and security of
   the civil air transportation system.                                    
       ``(B) Performance report. --Each year, consistent with the          
   requirements of GPRA, the Under Secretary for Transportation Security   
   shall prepare and submit to Congress an annual report including an      
   evaluation of the extent goals and objectives were met. The report shall
   include the results achieved during the year relative to the goals      
   established in the performance plan.                                    
          ``44943. Performance management system                                  

     ``(a) Establishing a Fair and Equitable System for Measuring Staff   
  Performance. --The Under Secretary for Transportation Security shall    
  establish a performance management system which strengthens the         
  organization's effectiveness by providing for the establishment of goals
  and objectives for managers, employees, and organizational performance  
  consistent with the performance plan.                                   
     ``(b) Establishing Management Accountability for Meeting Performance 
  Goals.--                                                                
       ``(1) In general. --Each year, the Secretary and Under Secretary of 
   Transportation for Security shall enter into an annual performance      
   agreement that shall set forth organizational and individual performance
   goals for the Under Secretary.                                          
       ``(2) Goals. --Each year, the Under Secretary and each senior       
   manager who reports to the Under Secretary shall enter into an annual   
   performance agreement that sets forth organization and individual goals 
   for those managers. All other employees hired under the authority of the
   Under Secretary shall enter into an annual performance agreement that   
   sets forth organization and individual goals for those employees.       
     ``(c) Performance-Based Service Contracting. --To the extent         
  contracts, if any, are used to implement the Aviation Security Act, the 
  Under Secretary for Transportation Security shall, to the extent        
  practical, maximize the use of performance-based service contracts.     
  These contracts should be consistent with guidelines published by the   
  Office of Federal Procurement Policy.''.                                
                    SEC. 131. VOLUNTARY PROVISION OF EMERGENCY SERVICES DURING    
          COMMERCIAL FLIGHTS.                                                     
     (a) In General. --Subchapter II of chapter 449 of title 49, United   
  States Code, is amended by adding at the end the following new section: 
          ``44944. Voluntary provision of emergency services                      

    ``(a)  Program for Provision of Voluntary Services.--                 

       ``(1) Program. --The Under Secretary of Transportation for          
   Transportation Security shall carry out a program to permit qualified   
   law enforcement officers, firefighters, and emergency medical           
   technicians to provide emergency services on commercial air flights     
   during emergencies.                                                     
       ``(2) Requirements. --The Under Secretary shall establish such      
   requirements for qualifications of providers of voluntary services under
   the program under paragraph (1), including training requirements, as the
   Under Secretary considers appropriate.                                  
       ``(3) Confidentiality of registry. --If as part of the program under
   paragraph (1) the Under Secretary requires or permits registration of   
   law enforcement officers, firefighters, or emergency medical technicians
   who are willing to provide emergency services on commercial flights     
   during emergencies, the Under Secretary shall take appropriate actions  
   to ensure that the registry is available only to appropriate airline    
   personnel and otherwise remains confidential.                           
       ``(4) Consultation. --The Under Secretary shall consult with        
   appropriate representatives of the commercial airline industry, and     
   organizations representing community-based law enforcement,             
   firefighters, and emergency medical technicians, in carrying out the    
   program under paragraph (1), including the actions taken under paragraph
   (3).                                                                    
     ``(b) Exemption From Liability. --An individual shall not be liable  
  for damages in any action brought in a Federal or State court that      
  arises from an act or omission of the individual in providing or        
  attempting to provide assistance in the case of an in-flight emergency  
  in an aircraft of an air carrier if the individual meets such           
  qualifications as the Under Secretary shall prescribe for purposes of   
  this section.                                                           
     ``(c) Exception. --The exemption under subsection (b) shall not apply
  in any case in which an individual provides, or attempts to provide,    
  assistance described in that                                            

                    paragraph in a manner that constitutes gross negligence or    
          willful misconduct.''.                                                  
     (b) Clerical Amendment. --The table of sections at the beginning of  
  such chapter is amended by adding at the end the following new item:    


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



     (c) Construction Regarding Possession of Firearms. --Nothing in this 
  section may be construed to require any modification of regulations of  
  the Department of Transportation governing the possession of firearms   
  while in aircraft or air transportation facilities or to authorize the  
  possession of a firearm in an aircraft or any such facility not         
  authorized under those regulations.                                     
          SEC. 132. GENERAL AVIATION AND AIR CHARTERS.                            

     (a) Air Charter Program. --Within 90 days after the date of enactment
  of this Act, the Under Secretary of Transportation for Transportation   
  Security shall implement an aviation security program for charter air   
  carriers (as defined in section 40102(a)(13) of title 49, United States 
  Code) with a maximum certificated takeoff weight of 12,500 pounds or    
  more.                                                                   
     (b) General Aviation Program. --Within 30 days after the date of     
  enactment of this Act, the Under Secretary of Transportation for        
  Transportation Security shall transmit a report on airspace and other   
  security measures that can be deployed, as necessary, to improve general
  aviation security to the Senate Committee on Commerce, Science, and     
  Transportation and the House of Representatives Committee on            
  Transportation and Infrastructure. The Under Secretary may submit the   
  report in both classified and redacted forms.                           
          SEC. 133. DEFINITIONS.                                                  

     Except as otherwise explicitly provided, any term used in this title 
  that is defined in section 40102 of title 49, United States Code, has   
  the meaning given that term in that section.                            
          SEC. 134. SENSE OF CONGRESS ON CERTAIN AVIATION MATTERS.                

     (a) Flight Service Station Employees. --It is the sense of Congress  
  that the Administrator of the Federal Aviation Administration should    
  continue negotiating in good faith with flight service station employees
  of the Administration with a goal of reaching agreement on a contract as
  soon as possible.                                                       
     (b) War Risk Insurance. --It is the sense of Congress that the       
  Secretary of Transportation should implement section 202 of the Air     
  Transportation Safety and System Stabilization Act (Public Law 107 42)  
  so as to make war risk insurance directly available to vendors, agents, 
  and subcontractors of air carriers for all of their domestic operations.
          SEC. 135. SENSE OF THE HOUSE OF REPRESENTATIVES.                        

    It is the sense of the House of Representatives that--                

       (1) the Under Secretary of Transportation for Security should       
   develop security procedures to allow passengers transporting a musical  
   instrument on a flight of an air carrier to transport the instrument in 
   the passenger cabin of the aircraft, notwithstanding any size or other  
   restriction on carry-on baggage but subject to such other reasonable    
   security procedures, terms, and conditions as may be established by the 
   Under Secretary or the air carrier, including imposing additional       
   charges by the air carrier; and                                         
       (2) an air carrier that transports mail under a contract with the   
   United States Postal Service should transport any animal that the Postal
   Service allows to be shipped through the mail.                          
                    SEC. 136. SHORT-TERM ASSESSMENT AND DEPLOYMENT OF EMERGING    
          SECURITY TECHNOLOGIES AND PROCEDURES.                                   
     Section 44903 of title 49, United States Code, is amended by adding  
  at the end the following:                                               
     ``(i) Short-Term Assessment and Deployment of Emerging Security      
  Technologies and Procedures.--                                          
       ``(1) In general. --The Under Secretary of Transportation for       
   Security shall recommend to airport operators, within 6 months after the
   date of enactment of the Aviation and Transportation Security Act,      
   commercially available measures or procedures to prevent access to      
   secure airport areas by unauthorized persons. As part of the 6-month    
   assessment,                                                             

          the Under Secretary for Transportation Security shall--                 

       ``(A) review the effectiveness of biometrics systems currently in   
   use at several United States airports, including San Francisco          
   International;                                                          
       ``(B) review the effectiveness of increased surveillance at access  
   points;                                                                 
       ``(C) review the effectiveness of card- or keypad-based access      
   systems;                                                                
       ``(D) review the effectiveness of airport emergency exit systems and
   determine whether those that lead to secure areas of the airport should 
   be monitored or how breaches can be swiftly responded to; and           
       ``(E) specifically target the elimination of the `piggy-backing'    
   phenomenon, where another person follows an authorized person through   
   the access point.                                                       
      The 6-month assessment shall include a 12-month deployment strategy  
   for currently available technology at all category X airports, as       
   defined in the Federal Aviation Administration approved air carrier     
   security programs required under part 108 of title 14, Code of Federal  
   Regulations. Not later than 18 months after the date of enactment of    
   this Act, the Secretary of Transportation shall conduct a review of     
   reductions in unauthorized access at these airports.                    
     ``(2)  Computer-assisted passenger prescreening system.--             

       ``(A) In general.-- The Secretary of Transportation shall ensure    
   that the Computer-Assisted Passenger Prescreening System, or any        
   successor system--                                                      
       ``(i) is used to evaluate all passengers before they board an       
   aircraft; and                                                           
       ``(ii) includes procedures to ensure that individuals selected by   
   the system and their carry-on and checked baggage are adequately        
   screened.                                                               
       ``(B) Modifications.-- The Secretary of Transportation may modify   
   any requirement under the Computer-Assisted Passenger Prescreening      
   System for flights that originate and terminate within the same State,  
   if the Secretary determines that--                                      
       ``(i) the State has extraordinary air transportation needs or       
   concerns due to its isolation and dependence on air transportation; and 
       ``(ii) the routine characteristics of passengers, given the nature  
   of the market, regularly triggers primary selectee status.''.           
          SEC. 137. RESEARCH AND DEVELOPMENT OF AVIATION SECURITY TECHNOLOGY.     

     (a) Funding.-- To augment the programs authorized in section         
  44912(a)(1) of title 49, United States Code, there is authorized to be  
  appropriated an additional $50,000,000 for each of fiscal years 2002    
  through 2006 and such sums as are necessary for each fiscal year        
  thereafter to the Transportation Security Administration, for research, 
  development, testing, and evaluation of the following technologies which
  may enhance aviation security in the future. Grants to industry,        
  academia, and Government entities to carry out the provisions of this   
  section shall be available for fiscal years 2002 and 2003 for--         
       (1) the acceleration of research, development, testing, and         
   evaluation of explosives detection technology for checked baggage,      
   specifically, technology that is--                                      
       (A) more cost-effective for deployment for explosives detection in  
   checked baggage at small- to medium-sized airports, and is currently    
   under development as part of the Argus research program at the          
   Transportation Security Administration;                                 
       (B) faster, to facilitate screening of all checked baggage at larger
   airports; or                                                            
       (C) more accurate, to reduce the number of false positives requiring
   additional security measures;                                           
       (2) acceleration of research, development, testing, and evaluation  
   of new screening technology for carry-on items to provide more effective
   means of detecting and identifying weapons, explosives, and components  
   of weapons of mass destruction, including advanced x-ray technology;    
       (3) acceleration of research, development, testing, and evaluation  
   of threat screening technology for other categories of items being      
   loaded onto aircraft, including cargo, catering, and duty-free items;   
       (4) acceleration of research, development, testing, and evaluation  
   of threats carried on persons boarding aircraft or entering secure      
   areas, including detection of weapons, explosives, and components of    
   weapons of mass destruction;                                            
       (5) acceleration of research, development, testing and evaluation of
   integrated systems of airport                                           

                    security enhancement, including quantitative methods of       
          assessing security factors at airports selected for testing such        
          systems;                                                                
       (6) expansion of the existing program of research, development,     
   testing, and evaluation of improved methods of education, training, and 
   testing of key airport security personnel; and                          
       (7) acceleration of research, development, testing, and evaluation  
   of aircraft hardening materials, and techniques to reduce the           
   vulnerability of aircraft to terrorist attack.                          
     (b) Grants.-- Grants awarded under this subtitle shall identify      
  potential outcomes of the research, and propose a method for            
  quantitatively assessing effective increases in security upon completion
  of the research program. At the conclusion of each grant, the grant     
  recipient shall submit a final report to the Transportation Security    
  Administration that shall include sufficient information to permit the  
  Under Secretary of Transportation for Security to prepare a cost-benefit
  analysis of potential improvements to airport security based upon       
  deployment of the proposed technology. The Under Secretary shall begin  
  awarding grants under this subtitle within 90 days of the date of       
  enactment of this Act.                                                  
     (c) Budget Submission.-- A budget submission and detailed strategy   
  for deploying the identified security upgrades recommended upon         
  completion of the grants awarded under subsection (b), shall be         
  submitted to Congress as part of the Department of Transportation's     
  annual budget submission.                                               
     (d) Defense Research. --There is authorized to be appropriated       
  $20,000,000 to the Transportation Security Administration to issue      
  research grants in conjunction with the Defense Advanced Research       
  Projects Agency. Grants may be awarded under this section for--         
       (1) research and development of longer-term improvements to airport 
   security, including advanced weapons detection;                         
       (2) secure networking and sharing of threat information between     
   Federal agencies, law enforcement entities, and other appropriate       
   parties;                                                                
       (3) advances in biometrics for identification and threat assessment;
   or                                                                      
     (4) other technologies for preventing acts of terrorism in aviation.  

          SEC. 138. EMPLOYMENT INVESTIGATIONS AND RESTRICTIONS.                   

     (a) In General.-- Section 44936 of title 49, United States Code, is  
  amended--                                                               
       (1) by inserting ``and a review of available law enforcement data   
   bases and records of other governmental and international agencies to   
   the extent determined practicable by the Under Secretary of             
   Transportation for Transportation Security,'' after ``check'' in        
   subsection (a)(1)(A);                                                   
       (2) by striking ``in any case described in subparagraph (C)'' in    
   subsection (a)(1)(B) and inserting ``and a review of available law      
   enforcement data bases and records of other governmental and            
   international agencies to the extent determined practicable by the Under
   Secretary of Transportation for Transportation Security'';              
       (3) by striking ``will be'' in subsection (a)(1)(B)(i) and inserting
   ``are'';                                                                
       (4) by striking ``and'' after the semicolon in clause (ii) of       
   subsection (a)(1)(B)                                                    
       (5) by redesignating clause (iii) of subsection (a)(1)(B) as clause 
   (iv);                                                                   
       (6) by inserting after clause (ii) of subsection (a)(1)(B) the      
   following:                                                              
       ``(iii) individuals who regularly have escorted access to aircraft  
   of an air carrier or foreign air carrier or a secured area of an airport
   in the United States the Administrator designates that serves an air    
   carrier or foreign air carrier; and'';                                  

       (7) by striking subparagraphs (C), (D), and (E) of subsection (a)(1)
   and redesignating subparagraph (F) as subparagraph (D);                 
       (8) by inserting after subparagraph (B) of subsection (a)(1) the    
   following:                                                              
     ``(C)  Background checks of current employees.--                      

       ``(i) A new background check (including a criminal history record   
   check and a review of available law enforcement data bases and records  
   of other governmental and international agencies to the extent          
   determined practicable by the Under Secretary of Transportation for     
   Transportation Security shall be required for any individual who is     
   employed in a position described in subparagraphs (A) and (B) on the    
   date of enactment of the Aviation and Transportation Security Act.      
       ``(ii) The Under Secretary may provide by order (without regard to  
   the provisions of chapter 5 of title 5, United States Code) for a       
   phased-in implementation of the requirements of this subparagraph.'';   
       (9) by striking ``107.31(m)'' in subparagraph (D), as redesignated, 
   and inserting ``107.31(m)(1) or (2)'';                                  
       (10) by striking ``the date of enactment of this subparagraph.'' in 
   subparagraph (D), as redesignated, and inserting ``November 22, 2000.   
   The Under Secretary shall work with the International Civil Aviation    
   Organization and with appropriate authorities of foreign countries to   
   ensure that individuals exempted under this subparagraph do not pose a  
   threat to aviation or national security.'';                             
       (11) by striking ``carrier, or airport operator'' in subsection     
   (a)(2) and inserting ``carrier, airport operator, or government'';      
       (12) by striking ``carrier, or airport operator'' in subsection     
   (b)(1) and inserting ``carrier, airport operator, or government'';      
       (13) by striking ``carrier, or airport operator'' in subsection     
   (b)(3) and inserting ``carrier, airport operator, or government''; and  
       (14) by adding at the end of subsection (c)(1) ``All Federal        
   agencies shall cooperate with the Under Secretary and the Under         
   Secretary's designee in the process of collecting and submitting        
   fingerprints.''.                                                        
     (b) Records of Employment of Pilot Applicants. --Part A of subtitle  
  VII is amended--                                                        
       (1) by moving subsections (f), (g), and (h) of section 44936 from   
   section 44936, inserting them at the end of section 44703, and          
   redesignating them as subsections (h), (i), and (j), respectively; and  
       (2) in subsections (i) and (j) of section 44703 (as moved to the end
   of section 44703 by paragraph (1) of this subsection), by striking      
   ``subsection (f)'' each place it appears and inserting ``subsection     
   (h)''.                                                                  
          SEC. 139. ALCOHOL AND CONTROLLED SUBSTANCE TESTING.                     

    Chapter 451 of title 49, United States Code, is amended--             

       (1) 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:                   

          ``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. 140. CONFORMING AMENDMENTS TO SUBTITLE VII.                        

     (a) Records of Employment of Pilot Applicants.--Part A of subtitle   
  VII of title 49, United States Code, is amended--                       
       (1) by moving subsections (f), (g), and (h) of section 44936 from   
   section 44936, inserting them at the end of section 44703, and          
   redesignating them as subsections (h), (i), and (j), respectively; and  
       (2) in subsections (i) and (j) of section 44703 (as moved to the end
   of section 44703 by paragraph (1) of this subsection), by striking      
   ``subsection (f)'' each place it appears and inserting ``subsection     
   (h)''.                                                                  
     (b) Investigations and Procedures.--Chapter 461 of such title is     
  amended--                                                               
       (1) in each of sections 46101(a)(1), 46102(a), 46103(a), 46104(a),  
   46105(a), 46106, 46107(b), and 46110(a) by inserting after ``(or'' the  
   following: ``the Under Secretary of Transportation for Security with    
   respect to security duties and powers designated to be carried out by   
   the Under Secretary or'';                                               
       (2) by striking ``or Administrator'' each place it appears and      
   inserting ``, Under Secretary, or Administrator'';                      
       (3) in section 46101(a)(2) by striking ``of Transportation or the'' 
   and inserting ``, Under Secretary, or'';                                
       (4) in section 46102(b) by striking ``and the Administrator'' and   
   inserting ``, the Under Secretary, and the Administrator'';             
       (5) in section 46102(c) by striking ``and Administrator'' each place
   it appears and inserting ``, Under Secretary, and Administrator'';      
       (6) in each of sections 46102(d) and 46104(b) by inserting ``the    
   Under Secretary,'' after ``Secretary,'';                                
       (7) in the heading to section 46106 by striking `` Secretary of     
   Transportation and Administrator of the Federal Aviation                
   Administration'' and inserting `` Department of Transportation''; and   
       (8) in the item relating to section 46106 of the analysis for such  
   chapter by striking ``Secretary of Transportation and Administrator of  
   the Federal Aviation Administration'' and inserting ``Department of     
   Transportation''.                                                       
    (c)  Administrative.--Section 40113 of such title is amended--        

     (1) in subsection (a)--                                               

       (A) by inserting after ``(or'' the following: ``the Under Secretary 
   of Transportation for Security with respect to security duties and      
   powers designated to be carried out by the Under Secretary or''; and    
       (B) by striking ``or Administrator'' and inserting ``, Under        
   Secretary, or Administrator''; and                                      
     (2) in subsection (d)--                                               

       (A) by inserting after ``The'' the following: ``Under Secretary of  
   Transportation for Security or the'';                                   
       (B) by striking ``Administration'' the second place it appears and  
   inserting ``Transportation Security Administration or Federal Aviation  
   Administration, as the case may be,''; and                              
       (C) by striking ``the Administrator decides'' and inserting ``the   
   Under Secretary or Administrator, as the case may be, decides''.        
    (d)  Penalties.--Chapter 463 of such title is amended--               

     (1) in section 46301(d)(2)--                                          

       (A) by striking ``, chapter 449 (except sections 44902, 44903(d),   
   44907(a) (d)(1)(A) and (d)(1)(C) (f), 44908, and 44909),'';             
       (B) by inserting after the first sentence the following: ``The Under
   Secretary of Transportation for Security may impose a civil penalty for 
   a violation of chapter 449 (except sections 44902, 44903(d), 44907(a)   
   (d)(1)(A), 44907(d)(1)(C) (f), 44908, and 44909) or a regulation        
   prescribed or order issued under such chapter 449.''; and               
       (C) by inserting ``Under Secretary or'' before ``Administrator      
   shall'';                                                                
       (2) in each of paragraphs (3) and (4) of section 46301(d) by        
   striking ``Administrator'' each place it appears and inserting ``Under  
   Secretary or Administrator'';                                           
       (3) in section 46301(d)(8) by striking ``Administrator'' and        
   inserting ``Under Secretary, Administrator,'';                          
       (4) in section 46301(h)(2) by inserting after ``(or'' the 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      
   inserting ``, Under Secretary, or Administrator'';                      
       (7) in each of sections 46313 and 46316 by inserting after ``(or''  
   the following: ``the Under Secretary of Transportation for Security with
   respect to security duties and powers designated to be carried out by   
   the Under Secretary or''; and                                           
       (8) in section 46505(d)(2) by inserting ``or the Under Secretary of 
   Transportation for Security'' after ``Federal Aviation Administration''.
          SEC. 141. 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. 142. 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. 143. LAND ACQUISITION COSTS.                                       

     In the case of a grant for land acquisition issued to an airport     
  under chapter 471 of title 49, United States Code, prior to January 1,  
  1995, the Secretary of Transportation may waive the provisions of       
  section 47108 of such title and provide an upward adjustment in the     
  maximum obligation of the United States under that chapter to assist the
  airport in funding land acquisition costs (and associated eligible      
  costs) that increased as a result of a judicial order.                  
                    SEC. 144. LIMITATION ON LIABILITY FOR ACTS TO THWART CRIMINAL 
          VIOLENCE OR AIRCRAFT PIRACY.                                            
    Section 44903 is amended by adding at the end the following:          

     ``(h) Limitation on Liability for Acts To Thwart Criminal Violence or
  Aircraft Piracy.--An individual shall not be liable for damages in any  
  action brought in a Federal or State court arising out of the acts of   
  the individual in attempting to thwart an act of criminal violence or   
  piracy on an aircraft if that individual reasonably believed that such  
  an act of criminal violence or piracy was occurring or was about to     
  occur.''.                                                               
          SEC. 145. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED SERVICE. 

     (a) In General.--Each air carrier that provides scheduled air        
  transportation on a route shall provide, to the extent practicable, air 
  transportation to passengers ticketed for air transportation on that    
  route by any other air carrier that suspends, interrupts, or            
  discontinues air passenger service on the route by reason of insolvency 
  or bankruptcy of the other air carrier.                                 
     (b) Passenger Obligation.--An air carrier is not required to provide 
  air transportation under subsection (a) to a passenger unless that      
  passenger makes alternative arrangements with the air carrier for such  
  transportation within 60 days after the date on which that passenger's  
  air transportation was suspended, interrupted, or discontinued (without 
  regard to the originally scheduled travel date on the ticket).          
     (c) Sunset.--This section does not apply to air transportation the   
  suspension, interruption, or discontinuance of which occurs more than 18
  months after the date of enactment of this Act.                         
          SEC. 146. AIRCRAFT OPERATIONS IN ENHANCED CLASS B AIRSPACE.             

     Upon request of an operator of an aircraft affected by the           
  restrictions imposed under Notice to Airmen FDC 1/0618 issued by the    
  Federal Aviation Administration, or any other notice issued after       
  September 11, 2001, and prior to the date of enactment of this Act that 
  restricts the ability of United States registered aircraft to conduct   
  operations under part 91 of title 14, Code of Federal Regulations, in   
  enhanced class B airspace (as defined by such Notice), such restrictions
  shall cease to be in effect for the affected class of operator beginning
  on the 30th day following the request, unless the Secretary of          
  Transportation publishes a notice in the Federal Register before such   
  30th day reimposing the restriction and explaining the reasons for the  
  restriction.                                                            
          SEC. 147. AVIATION WAR RISK INSURANCE.                                  

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

                    SEC. 201. AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION  
          ACT AMENDMENTS.                                                         
     (a) Recovery of Collateral Source Obligations of Terrorists.--Section
  405(c)(3)(B)(i) of the Air Transportation Safety and System             
  Stabilization Act (49 U.S.C. 40101 note) is amended by striking         
  ``obligations.'' and inserting ``obligations, or to a civil action      
  against any person who is a knowing participant in any conspiracy to    
  hijack any aircraft or commit any terrorist act.''.                     
     (b) Extension of Liability Relief to Aircraft Manufacturers and      
  Others.--Section 408 of that Act is amended--                           
     (1) by striking `` air carrier'' in the section heading;              

     (2) by striking subsection (a) and inserting the following:           

    ``(a)  In General.--                                                  

       ``(1) Liability limited to insurance coverage.--Notwithstanding any 
   other provision of law, liability for all claims, whether for           
   compensatory or punitive damages or for contribution or indemnity,      
   arising from the terrorist-related aircraft crashes of September 11,    
   2001, against an air carrier, aircraft manufacturer, airport sponsor, or
   person with a property interest in the World Trade Center, on September 
   11, 2001, whether fee simple, leasehold or easement, direct or indirect,
   or their directors, officers, employees, or agents, shall not be in an  
   amount greater than the limits of liability insurance coverage          
   maintained by that air carrier, aircraft manufacturer, airport sponsor, 
   or person.                                                              
       ``(2) Willful defaults on rebuilding obligation.--Paragraph (1) does
   not apply to any such person with a property interest in the World Trade
   Center if the Attorney General determines, after notice and an          
   opportunity for a hearing on the record, that the person has defaulted  
   willfully on a contractual obligation to rebuild, or assist in the      
   rebuilding of, the World Trade Center.                                  
       ``(3) Limitations on liability for new york city.--Liability for all
   claims, whether for compensatory or punitive damages or for contribution
   or indemnity arising from the terrorist-related aircraft crashes of     
   September 11, 2001, against the City of New York shall not exceed the   
   greater of the city's insurance coverage or $350,000,000. If a claimant 
   who is eligible to seek compensation under section 405 of this Act,     
   submits a claim under section 405, the claimant waives the right to file
   a civil action (or to be a party to an action) in any Federal or State  
   court for damages sustained as a result of the terrorist-related        
   aircraft crashes of September 11, 2001, including any such action       
   against the City of New York. The preceding sentence does not apply to a
   civil action to recover collateral source obligations.''; and           
       (3) by adding at the end of subsection (c) the following:           
   ``Subsections (a) and (b) do not apply to civil actions to recover      
   collateral source obligations. Nothing in this section shall in any way 
   limit any liability of any person who is engaged in the business of     
   providing air transportation security and who is not an airline or      
   airport sponsor or director, officer, or employee of an airline or      
   airport sponsor.''.                                                     
     (c) Limitation of United States Subrogation Right.--Section 409 of   
  that Act is amended by striking ``title.'' and inserting ``title,       
  subject to the limitations described in section 408.''.                 
    (d)  Definitions.--Section 402 of that Act is amended--               

       (1) by adding at the end of paragraph (1) the following: ``The term 
   `air carrier' does not include a person, other than an air carrier,     
   engaged in the business of providing air transportation security.''.    
       (2) by redesignating paragraphs (3) through (8) as paragraphs (5)   
   through (10), respectively; and                                         
     (3) by inserting after paragraph (2) the following:                   

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

    And the House agree to the same.                                       



    Don Young,                                                              

    Thomas Petri,                                                           

    John J. Duncan,  Jr.,                                                   

    John L. Mica,                                                           

    Vernon J. Ehlers,                                                       

    James L. Oberstar,                                                      

    William O. Lipinski,                                                    

    Peter DeFazio,                                                          

        Managers on the Part of the House.                                      


    Ernest F. Hollings,                                                     

    Daniel K. Inouye,                                                       

    John D. Rockefeller IV,                                                 

    John F. Kerry,                                                          

    John Breaux,                                                            

    Byron L. Dorgan,                                                        

    Ron Wyden,                                                              

    John McCain,                                                            

    Trent Lott,                                                             

    Kay Bailey Hutchison,                                                   

    Olympia Snowe,                                                          

        Managers on the Part of the Senate.                                     


                 JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE       

       The managers on the part of the Senate and House at the conference  
   on the disagreeing vote of the two Houses on the amendment of the House 
   of Representatives to the bill (S. 1447), to improve aviation security, 
   and for other purposes, submit the following joint statement to the     
   Senate and House in explanation of the effects of the action agreed upon
   by the managers and recommended in the accompanying conference report:  
       The House amendment struck all of the Senate bill after the enacting
   clause and inserted a substitute text.                                  
       The Senate recedes from its disagreement to the amendment of the    
   House with an amendment that is a substitute for the Senate bill and the
   House amendment. The differences between the Senate bill, the House     
   amendment, and the substitute agreed to in conference are noted below,  
   except for clerical corrections, conforming changes made necessary by   
   agreements reached by the conferees, and minor drafting and clerical    
   changes.                                                                
                              1. short title                             

   Senate bill                                                            

    Section 1: ``Aviation Security Act''.                                  

   House amendment                                                        

    Section 1: ``Airport Security Federalization Act of 2001''.            

   Conference substitute                                                  

       The title of the legislation will be ``The Aviation and             
   Transportation Security Act.''                                          
                               2. findings                               

   Senate bill                                                            

       Section 101: 7 findings on the importance of security and the need  
   for Federal control and other changes.                                  
   House amendment                                                        

    No provision.                                                          

   Conference substitute                                                  

       The conferees recognize that the safety and security of the civil   
   air transportation system is critical to the security of the United     
   States and its national defense, and that a safe and secure United      
   States civil air transportation system is essential to the basic freedom
   of America to move in intrastate, interstate and international          
   transportation. The conferees further note the terrorist hijacking and  
   crashes of passenger aircraft on September 11, 2001, which converted    
   civil aircraft into guided bombs for strikes against the United States, 
   required a fundamental change in the way it approaches the task of      
   ensuring the safety and security of the civil air transportation system.
       The Conferees expect that security functions at United States       
   airports should become a Federal government responsibility, and it is   
   their belief that while the number of Federal air marshals is           
   classified, their presence would have a deterrent effect on hijacking   
   and would further bolster public confidence in the safety of air travel.
   The Conferees also noted that the effectiveness of existing security    
   measures, including employee background checks and passenger            
   pre-screening, is currently impaired because of the inaccessibility of, 
   or the failure to share information among, data bases maintained by     
   different Federal and international agencies for criminal behavior or   
   pertinent intelligence information.                                     
       The Conferees developed this legislation to address the security of 
   the nation's transportation system.                                     
             3. organization of security function within dot             

   Senate bill                                                            

    Section 102: Creates a new Deputy Secretary of Transportation.         

   House amendment                                                        

       Section 101: Creates a new Transportation Security Administration   
   (TSA) within DOT headed by an Under Secretary. Establishes              
   qualifications. Sets 5-year term. TSA has same procurement and personnel
   authority as the FAA.                                                   
   Conference substitute                                                  

       The Conference Report creates the Transportation Security           
   Administration (TSA) to be headed by an Under Secretary within the DOT. 
           4. functions of deputy secretary or under secretary           

   Senate bill                                                            

       Section 102(a): Coordinate and direct the functions of DOT and FAA  
   under Chapter 449.                                                      
    Work with the FAA on actions that affect safety.                       

       Coordinate with DOJ, DOD, and other agencies on matters related to  
   aviation security.                                                      
       Coordinate transportation and actions of other agencies during an   
   emergency. (This does not supersede the authority of any other agency.) 
    Establish uniform standards for transportation during an emergency.    

       Provide notice to other agencies about threats during an emergency. 
   The Secretary defines what constitutes an emergency.                    
    Take other actions, the Secretary shall prescribe.                     

   House amendment                                                        

       Section 101: Under Secretary will be responsible for security in all
   modes of transportation. Specifically, Under Secretary is responsible   
   for the following:                                                      
       Receiving, assessing, and distributing intelligence information to  
   the appropriate people in the transportation community.                 
     Assessing threats to transportation.                                  

     Developing policies to deal with these threats.                       

     Coordinating with other agencies.                                     

     Serve as the liaison with the intelligence community.                 


     Supervising airport security using Federal uniformed personnel.       

     Manage the Federal security personnel in the field.                   

     Enforce security regulations.                                         

     Undertake research to improve security.                               

     Inspect, maintain, and test security equipment.                       

       Ensure that adequate security is provided for the transportation of 
   cargo.                                                                  
     Oversee the security at airports and other transportation facilities. 

     Perform background checks on screeners and those who work at airports.

     Develop standards for the hiring and firing of screeners.             

     Train and test screeners.                                             

   Conference substitute                                                  

       The Conferees believe the best way to ensure effective Federal      
   management of the nation's transportation system is through the creation
   of a new Administration within DOT to be called the Transportation      
   Security Administration (TSA). The TSA's responsibilities will encompass
   security in all modes of transportation.                                
              5. pay of deputy secretary or under secretary              

   Senate bill                                                            

       Section 127: Paid at level II of the Executive Schedule plus bonuses
   based on performance.                                                   
   House amendment                                                        

       Section 101(c): Paid at level II of the Executive Schedule ($141,300
   in 2000).                                                               
   Conference substitute                                                  

       The Conferees direct that the Under Secretary is to be paid at Level
   II of the Executive Schedule ($141,300 in 2000). A bonus, not to exceed 
   thirty percent of the annual salary may be provided based on the        
   performance of the US to be determined by the Secretary.                
                                6. reports                               

   Senate bill                                                            

    Section 102(a): Annual report of activities.                           

       Section 127: Annual DOT report on results achieved relative to the  
   agency security performance plan.                                       
    Section 112: 60-day report on additional security measures.            

       Section 133: 120-day report on the new DOJ responsibilities for     
   aviation security.                                                      
       Section 113: 3-month report on how to improve security of general   
   aviation and air charters.                                              
   House amendment                                                        

       Section 106: Eliminates existing report in section 44938 of title   
   49, United States Code.                                                 
   Conference substitute                                                  

    (House)                                                                

                          6A. enhanced security                          

   Senate bill                                                            

    Section 115: 120 day report on the following issues:                   

     (1) Requiring verification of airport employees' identity.            

       (2) Installing switches so flight attendants can notify pilots of a 
   hijacking.                                                              
     (3) Revalidating airline and airport employee identification cards.   

     (4) Updating strategy for dealing with hijackings.                    

       (5) Technology to improve communication between aircraft and ground 
   facilities.                                                             
       Section 211: DOT shall study options for improving positive IDs of  
   passengers at check-in counters and boarding areas. Report required in 6
   months.                                                                 
   House amendment                                                        

       Section 106: Requires the Under Secretary to address the issues     
   listed below and to report 6 months after the date of enactment on the  
   progress being made in implementing each.                               
       A similar report would have to be submitted each year thereafter    
   until all the items had either been implemented or rejected:            
       (1) Develop procedures (such as barrel roles or depressurizing the  
   aircraft) and authorize equipment (such as lethal or non-lethal weapons)
   to help the pilot defend the aircraft against hijackers.                
     (2) After consultation with the FAA, find ways to--                   

     (A) limit access to the cockpit;                                      

     (B) strengthen cockpit doors;                                         

       (C) use video cameras to alert pilots to problems in the passenger  
   cabin without having to open the cockpit door;                          
       (D) ensure that the aircraft transponder cannot be turned off in    
   flight.                                                                 
       (3) Impose standards for the screening or inspection of vehicles and
   employees of aircraft fuelers, caterers, cleaners, and others who have  
   access to aircraft and secure areas of airports.                        
       (4) Require airlines to provide emergency call capability from      
   aircraft and trains.                                                    
       (5) Use various technologies, such as voice stress analysis, to     
   prevent a dangerous person from boarding a plane.                       
     (6) Develop certification standards for individual screeners.         

       (7) Establish performance goals and use Threat Image Projection     
   (TIP) or similar devices to test whether screeners are meeting those    
   goals or certification standards.                                       
       (8) Develop ways for airlines to have access to law enforcement and 
   immigration data bases to ensure that dangerous people do not board     
   their planes.                                                           
       (9) Use the profiling system known as CAPS to not only give special 
   scrutiny to selected checked baggage but also to the passengers who fit 
   the profile and their carry-on baggage.                                 
       (10) Use technology to ensure that airport and airline employees and
   law enforcement officers are who they claim to be.                      
       (11) Install switches in the passenger cabin so that flight         
   attendants can discreetly notify a pilot if there is a problem.         
       (12) Change the training of airline personnel in light of the change
   in the methods and goals of hijackers as evidenced by the attack of     
   September 11th.                                                         

       (13) Provide for background checks for those seeking flying lessons 
   on large aircraft or flight simulators of such aircraft.                
       (14) Enter into agreements allowing trained law enforcement         
   personnel of other agencies to travel with guns in order to assist a sky
   marshal.                                                                
       (15) Perform more thorough background checks (including review of   
   immigration and other government records) of airport screeners, student 
   pilots, and others who have unescorted access to secure areas of the    
   airport.                                                                
       (16) Establish a uniform system for identifying law enforcement     
   personnel authorized to carry a gun on board to ensure they are who they
   claim to be.                                                            
       (17) Allow airlines to implement trusted passenger programs to use  
   technology to expedite screening for those passengers that wish to      
   participate.                                                            
       (18) Develop security procedures for stem cells and other medical   
   containers that cannot be opened or x-rayed.                            
       (19) Develop security procedures to allow musical instruments to be 
   carried in the passenger cabin.                                         
       (20) Provide for the use of wireless devices to enable              
   communications among airport security personnel about potential threats.
   Conference substitute                                                  

       The Under Secretary shall decide upon establishing security measures
   to: ensure that the flight transponder cannot be turned off in flight;  
   require airlines to provide emergency call capability from aircraft and 
   trains; use voice stress analysis, biometric, and other technologies to 
   prevent dangerous persons from boarding a plane; establish a uniform    
   system for identifying law enforcement personnel traveling with firearms
   to ensure they are who they claim to be; require the consideration of   
   alternative security procedures that would not damage medical products; 
   allow airlines to implement trusted passenger programs to use technology
   to expedite screening on a voluntary basis; and, provide for the use of 
   technology to enhance communications among airport security personnel   
   about potential threats. The conferees encourage efforts by the         
   Transportation Security Administration and professional organizations   
   representing industry to use biometric information, such as fingerprints
   collected initially as input to the background check process, for future
   verification of identity at access control points to secure airport     
   areas. The Conferees applaud efforts to improve day-to-day airport      
   security by utilizing this raw biometric information collected from     
   individuals as a recurrent identifier for access to secure areas. The   
   Conferees urge the Transportation Security Administration to work with  
   industry organizations that can assist in the process of background     
   checks, record-keeping, and universal access control data.              
                7. responsibility of the attorney general                

   Senate bill                                                            

       Section 102(b): Responsible for screening, including the hiring and 
   training of screeners.                                                  
   House amendment                                                        

    No provision--The Under Secretary is responsible for screening.        

   Conference substitute                                                  

    No provision.                                                          

                              8. transition                              

   Senate bill                                                            

       Section 102(d): Until Deputy Secretary takes office, the functions  
   are performed by the Assistant Administrator of the FAA.                
       Section 108: Transition to Attorney General immediate. Actions      
   completed in 9 months.                                                  
   House amendment                                                        

       Section 101: Under Secretary shall assume civil aviation security   
   responsibilities in 3 months. In the meantime, Under Secretary can take 
   over airline contracts with screening companies.                        
    No change until Under Secretary is appointed.                          

   Conference substitute                                                  

       The Conferees direct the Under Secretary to assume responsibility   
   for civil aviation security within 3 months of the enactment of this    
   legislation.                                                            
                       9. technology and equipment                       

   Senate bill                                                            

       Section 102(c): Amends 44932(c) to require FAA to ensure the use of 
   the best available security equipment, not merely the best available    
   x-ray equipment.                                                        
       Section 108: Restates provision in current law requiring manual     
   process where equipment is now underutilized.                           
       Section 132: By September 30, 2002, FAA shall decide the feasibility
   of implementing technologies designed to protect aviation and           
   automatically detect bombs, drugs, hazardous chemicals, and nuclear     
   devices.                                                                
       Section 201(b): FAA shall deploy and use existing bomb detection    
   equipment. Within 60 days, FAA shall establish goals for--              
     (1) deploying equipment now in storage;                               

       (2) specifying a percentage of checked bags to be scanned within 6  
   months, with a goal of scanning 100 percent;                            
       (3) the number of bomb detectors that will be purchased for         
   deployment at medium sized airports within 6 months. [See item 29.]     
   House amendment                                                        

       Section 106: Makes no change in section 44932(c) of title 49, United
   States Code, but directs Under Secretary to consider requiring various  
   technologies described in item 6 above and report to Congress on them 6 
   months after enactment and annually thereafter until those technologies 
   are deployed or a decision is made not to deploy them.                  
   Conference substitute                                                  

       The Conferees want new, state-of-the-art security equipment         
   installed at airports on an expedited basis, and immediate action taken 
   to ensure that existing explosive detection equipment is employed to the
   greatest extent possible for the screening of checked baggage. It is    
   expected that additional equipment will be installed in as timely a     
   manner as possible, and in the interim, other systems will be used to   
   screen baggage. The Conferees agree that                                

                    everything going on board a passenger aircraft should be      
          screened within 60 days by FAA-approved methods.                        
                   10. airworthiness objections by faa                   

   Senate bill                                                            

       Section 102: Must consult with FAA on all matters affecting safety  
   and operations.                                                         
   House amendment                                                        

       Section 106: Under Secretary cannot take an action if notified by   
   the FAA that it would adversely affect the airworthiness of the aircraft
   unless the Secretary approves the action.                               
   Conference substitute                                                  

    House provision.                                                       

         11. role of national transportation safety board (ntsb)         

   Senate bill                                                            

    No provision.                                                          

   House amendment                                                        

       Section 106: In taking an action that could affect safety, Under    
   Secretary shall solicit and give great weight to views of NTSB.         
   Conference substitute                                                  

       The Conferees instruct that in taking actions that could affect     
   safety, the timely views of the National Transportation Safety Board    
   (NTSB) will be taken into consideration by the Under Secretary. The     
   conferees wished to emphasize that the views of the NTSB should be      
   provided in a sufficiently and timely manner so those views could be    
   fully considered by the Under Secretary.                                
                   12. Biological and chemical weapons                   

   Senate bill                                                            

       Section 102(c): FAA shall develop ways to enhance the ability to    
   detect biological and chemical weapons.                                 
       Section 106(c): DOT shall require airports to maximize the use of   
   equipment to detect these weapons.                                      
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conference Report requires airports to maximize the use of      
   equipment to detect and neutralize biological and chemical weapons, and 
   instructs the FAA to develop ways to enhance the detection of these     
   weapons.                                                                
                      13. oversight and coordination                     

   Senate bill                                                            

       Section 103: Establishes Aviation Security Oversight Council (ASOC),
   chaired by DOT Secretary and composed of DOJ, DOD, Treasury, CIA, and   
   any other agency head DOT and DOJ determine to be appropriate.          
   House bill                                                             

       Section 112: Establishes Transportation Security Oversight Board    
   (TSOB) chaired by DOT Secretary and composed of DOJ, DOD, Treasury, and 
   either NSC or Homeland Security. TSOB shares intelligence, reviews      
   emergency rules, and oversees actions of Under Secretary.               
       Establishes Advisory Council, composed of industry, labor, families,
   and others to advise Under Secretary on security matters.               
   Conference substitute                                                  

       The Conference Report establishes the Transportation Security       
   Oversight Board (TSOB) chaired by the Secretary of DOT and composed of  
   DOJ, DOD, Treasury, CIA, NSC and Homeland Security. The TSOB may review 
   and ratify or disapprove regulations issued by the Under Secretary;     
   facilitate the coordination of intelligence, security and law           
   enforcement activities affecting transportation; and, perform other     
   duties including making recommendations to the Under Secretary for use  
   in combating threats to the integrity of the nation's transportation    
   system.                                                                 
                              14. rulemaking                             

   Senate bill                                                            

       No Rules required by DOJ for its own employees; cockpit requirements
   issuable without APA.                                                   
   House bill                                                             

       Section 101: Under Secretary can issue security rules immediately   
   without notice and comment, DOT or OMB review, and without a            
   cost-benefit analysis but subject to disapproval by the TSOB.           
   Conference substitute                                                  

    House provision.                                                       

                          15. inspector general                          

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

    Section 101: TSA is subject to the Inspector General Act.              

   Conference substitute                                                  

       The Conference report instructs that the Transportation Security    
   Administration (TSA) will be subject to the Inspector General Act.      
                      16. cross checking data bases                      

   Senate bill                                                            

       Section 103(a): DOT, acting through ASOC, shall try to develop a    
   common data base with other agencies and share information about people.
       Section 211: DOT, as part of the ASCC, shall conduct a 90-day review
   of upgrades to the distribution of people on the ``watch list'' of      
   Federal law enforcement agencies.                                       
    Upgrades shall be deployed in 6 months.                                

    A report shall be filed in 18 months.                                  

   House bill                                                             

       Section 106: To the extent that the Under Secretary determines      
   appropriate, the Under Secretary shall (1) establish procedures         
   requiring airlines to use information from government agencies to       
   identify people who may be a threat to civil aviation and (2) require   
   more thorough background checks that include a review of other agency   
   data bases.                                                             

    A report is required in 6 months and annually thereafter.              

   Conference substitute                                                  

       The Conferees have instructed the Secretary to work with the TSOB to
   develop a data base that will allow the cross checking of the people on 
   ``watch lists'' of various Federal law enforcement agencies to identify 
   individuals that may pose a risk to security in an effort to identify   
   potential risks to civil aviation. Passenger lists should be used in    
   conjunction with this data base to help target those individuals that   
   pose a threat, and allow appropriate action to be taken.                
                           17. terrorism report                          

   Senate bill                                                            

       Section 103(b): Require reports on all terrorism. Reports to be     
   shared with DOT.                                                        
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conference Report requires the intelligence community to ensure 
   that reports on terrorism are shared with the DOT.                      
                          18. strategic planning                         

   Senate bill                                                            

       Section 103(c): Require intelligence agencies to establish units for
   strategic planning on terrorism.                                        
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conference Report requires intelligence agencies to establish   
   units for strategic planning on terrorism.                              
                           19. cockpit security                          

   Senate bill                                                            

       Section 104: FAA shall issue a rule, without notice and comment,    
   permitting only authorized persons to have access to the cockpit,       
   requiring strengthening the door by installing locks and making them    
   rigid, requiring the door to remain locked during flight except when the
   pilot needs to get out, and taking away the flight attendants key.      
    Special rules shall be issued for aircraft that do not have a door.    

   House bill                                                             

       Section 106: To the extent the Under Secretary considers            
   appropriate, the Under Secretary shall, after consultation with FAA,    
   implement methods to restrict the opening of the cockpit door during    
   flight and fortify those doors.                                         
    A report is required in 6 months and annually thereafter.              

    Funds are authorized to help airlines pay for this.                    

   Conference substitute                                                  

       The Conference Report prohibits access to the flight deck of        
   passenger aircraft by anyone other than the flight crew. Flight deck    
   doors must be strengthened and remain locked while aircraft is in       
   flight. Video cameras may be provided to alert pilots to cabin activity 
   in the event of a security breech occurring during the flight. These    
   provisions apply to aircraft required to have a door between the flight 
   deck and cabin. The Conferees also seek the redesign of cockpits to     
   ensure the doors are secured at all times during flight. Redesign can   
   encompass new flight deck materials, double doors to the cockpit as are 
   used in Israel, and lavatories within the flight deck so that flight    
   crew do not leave the flight deck. Once bathroom facilities are provided
   for the flight crew of passenger aircraft, the cockpit door no longer   
   will need to be opened during flight.                                   
       The Conferees instruct the Under Secretary to take into             
   consideration the threat to aviation and national security when         
   developing means to secure the flight deck on commuter aircraft. Any new
   burdens should be appropriate for the risk.                             
                             20. air marshals                            

   Senate bill                                                            

       Section 105: Attorney General prescribes guidelines for training and
   deployment of sky marshals. DOT administers the program in accordance   
   with these guidelines:                                                  
       (1) Marshals may be placed on every flight but must be placed on    
   every flight that DOT determines to be high risk.                       
     (2) Marshals must be deployed in 30 days.                             

       (3) Marshals must be given a seat even if that means bumping a      
   passenger.                                                              
       (4) DOT shall work with ICAO and foreign governments to address     
   security concerns on foreign airlines.                                  
       (5) DOT may use personnel from other agencies, including the        
   military, as air marshals.                                              
       Section 105: Waives age requirements for retired police, military   
   and out-of-work pilots to work as air marshals, if they meet the        
   background and fitness qualifications.                                  
    Report required in 18 months.                                          

   House bill                                                             

       Section 105: Under Secretary deploys air marshals, provides for     
   their background checks, trains them, and requires U.S. airlines to     
   provide seats for them at no cost.                                      
    Preference for hiring laid off airline pilots as marshals.             

    Marshals must be placed on selected flights.                           

    Marshals must be given a seat even if that means bumping a passenger.  

       DOT shall work with foreign governments to address security concerns
   on international flights from the U.S.                                  
       Until the Under Secretary has all the air marshals needed, personnel
   from other agencies may be used, with the other agency's concurrence, as
   air marshals on a non-reimbursable basis.                               
       Airlines must provide seats, on a space-available basis, to off-duty
   marshals flying home.                                                   
   Conference substitute                                                  

       The Conference Report requires that appropriately trained,          
   supervised and equipped Federal Air Marshals (FAMs) may be deployed on  
   every scheduled passenger flight, and must be placed on every ``high    
   risk'' flight, which may include nonstop longhaul flights, or any other 
   flight deemed appropriate, even if the flight is fully booked. For      
   applicants who otherwise meet the background and fitness requirements,  
   age restrictions may be waived to allow                                 

                    retired law enforcement officers, retired members of the armed
          forces, and members of commercial airline crews (cockpit and cabin) who 
          have been furloughed from their positions after 9 11 01. Personnel from 
          other agencies may be deployed, with the agency's concurrence, as FAMs  
          until an adequate number of FAMs are in place. Additionally, agreements 
          may be entered into allowing trained law enforcement personnel from     
          other agencies to travel with firearms in order to assist FAMs.         
       The Conferees instruct the Under Secretary to follow air carrier    
   passenger reservations and cancellation practices to the extent         
   practicable. The Under Secretary should work cooperatively with air     
   carriers to develop guidelines concerning reservations and cancellation 
   for the transportation of Federal Air Marshals.                         
                              21. screening                              

   Senate bill                                                            

       Section 108: Attorney General, in consultation with DOT, shall      
   provide for screening of all passengers, property, mail, and cargo that 
   will be carried aboard an aircraft.                                     
    Federal employees shall do screening.                                  

       Airport and airline employees shall be screened in the same way,    
   except alternative methods may be used for security personnel.          
    Attorney General shall use screening technology approved by FAA.       

    Law enforcement personnel shall be deployed at each screening location.

    At the 100 largest airports, additional police may be ordered.         

       Section 105(f): Report from DOT and DOJ required within 120 days on 
   effectiveness of security screening.                                    
       Section 106: DOJ and DOT may permit operational flexibility to      
   tailor screening needs for seasonal variations, aircraft types, and     
   special needs of small airports.                                        
       Section 108: Attorney General may require non-hub or smaller        
   airports to use State or local law enforcement if the screening will be 
   equivalent to that at larger airports, the training meets Federal       
   standards, the airport is reimbursed by funds made available by this    
   Act, and the airport is consulted.                                      
   House bill                                                             

       Section 102: Federal government is responsible for screening        
   passengers and property on passenger aircraft that originate in the U.S.
   Silent on whether screeners are to be Federal employees or private      
   contractors. Under Secretary shall deputize screeners to enforce Federal
   laws, but not to arrest people. Screeners must have common uniforms.    
   Must be supervised by uniformed Federal employees.                      
       Section 107: Under Secretary should consider certificating screeners
   and use TIP or similar technologies to measure their performance and    
   revoke their certification if their performance is inadequate.          
       Section 104: Airport required to deploy law enforcement or military 
   personnel at each screening location. Law enforcement can be either     
   Federal or local.                                                       
   Conference substitute                                                  

       The Conference Report requires the Federal government to hire, train
   and deploy Federal screeners, Federal managers, Federal security        
   personnel and Federal law enforcement within 1 year. The participants in
   this Federal security workforce will not be able to strike or engage in 
   work stoppages, and can be fired at the discretion of the Secretary if  
   they are not able to adequately perform their duties.                   
       The Conferees recognize that, in order to ensure that Federal       
   screeners are able to provide the best security possible, the Secretary 
   must be given wide latitude to determine the terms of employment of     
   screeners. The Conference Committee expects that, in fixing the terms   
   and conditions of employment the Secretary shall establish benefits and 
   conditions of employment. The Conference Committee also recognizes that,
   in order to hire and retain screeners, the Secretary should also ensure 
   that screeners have access to Federal health, life insurance, and       
   retirement benefits, as well as workers' compensation benefits. The     
   Committee believes that screening personnel must also be given          
   whistleblower protections so that screeners may report security         
   conditions without fear of reprisal.                                    
       The Conference Report requires the DOT to assume existing screening 
   company contracts as soon as possible, but no later than 90 days after  
   enactment of this legislation. The contracts for existing screeners can 
   be extended for up to 6 months, and the DOT would have the option to    
   extend contracts for no longer than 3 months, if necessary, to continue 
   screening. DOT may also authorize additional Federal law enforcement,   
   National Guard, and other personnel immediately to address the aviation 
   security needs of the country.                                          
       The Conferees direct the Secretary to provide a report after one    
   year from the date of enactment certifying deployment of the Federal    
   screeners. Two years after certification airports can opt out of the    
   Federalization of the screener level of the Federal workforce if the    
   Secretary determines that these facilities would continue to provide an 
   equal or higher level of security. Companies will be barred from        
   providing screening if they violate federal standards, are found to     
   allow repeated failures of the system, or prove to be a security risk.  
   The DOT will also establish a Pilot Program for 5 airports, one from    
   each category type, to apply for the use of private contract screeners. 
       Within 1 year after the date of enactment of the Act, the conferees 
   expect the Transportation Security Administration to submit a report to 
   the Senate Committee on Commerce, Science, and Transportation and the   
   House of Representatives Committee on Transportation and Infrastructure 
   on the screening requirements applicable to passengers boarding, and    
   property being carried aboard, aircraft with 60 seats or less used in   
   scheduled passenger service with recommendations for any necessary      
   changes in those requirements.                                          
                    22. citizenship of security firms                    

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 104: Must be owned or controlled by a citizen of the U.S. to
   the extent the President determines that there are such firms.          

    Section 123(e): Similar sense of Congress.                             

   Conference substitute                                                  

       The Conference Report directs that U.S. companies should be used to 
   provide screening if they are available.                                
               23. training of pilots and flight attendants              

   Senate bill                                                            

       Section 105(f): Report from DOT and DOJ required within 6 months on 
   crew training.                                                          
       Section 107: DOT shall develop a mandatory airline training program 
   for crews dealing with a hijacking. Training shall be developed in      
   coordination with law enforcement experts.                              
   House bill                                                             

       Section 106: Under Secretary should consider updating training for  
   dealing with hijacking that includes ways for dealing with suicidal     
   hijackers. Report six months and annually thereafter.                   
   Conference substitute                                                  

       The Conferees have determined that detailed guidance shall be       
   developed for a mandatory air carrier training program to assist flight 
   crews and attendants in hijack situations. The training curriculum will 
   be developed in consultation with Federal law enforcement agencies with 
   expertise in dealing with these types of threat conditions.             
          24. how flight attendants notify pilots of a hijacking         

   Senate bill                                                            

       Section 107: FAA shall revise procedures by which flight attendants 
   notify pilots and implement new measures as soon as practicable.        
   House bill                                                             

       Section 106: The Under Secretary should consider requiring the      
   installation of switches in the cabin so that the flight attendants can 
   discreetly notify the pilots.                                           
   Conference substitute                                                  

       The Conference Report directs the Under Secretary to consider the   
   installation of a switch or other devices to be located in the cabin for
   flight attendants to notify pilots in the event of a hijacking without  
   the knowledge of passengers.                                            
              25. provision of personnel from other agencies             

   Senate bill                                                            

       Section 105: Amends section 106(m) to allow other agencies to       
   provide personnel to FAA.                                               
   House bill                                                             

    Section 102(d): Same provision, worded differently.                    

   Conference substitute                                                  

       The Conferees call upon other agencies to provide personnel that has
   received the proper training for use by the FAA as Federal air marshals 
   (FAMs) in an effort to support and supplement the FAM workforce in its  
   early stages.                                                           
                  26. airport perimeter access security                  

   Senate bill                                                            

       Section 106: DOT may order deployment of law enforcement personnel  
   as needed to bolster airport security by entering into an agreement with
   another agency to deploy Federal law enforcement at airports.           
       Section 106(b): FAA shall provide technical support and financial   
   assistance to small airports to help defray security costs.             
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conferees have given the Secretary the ability to work with the 
   airports to address potential threats at individual facilities by       
   ordering the deployment of Federal law enforcement authorities to       
   improve airport perimeter and access security in an effort to counter   
   potential criminal activities. Such actions also can include providing  
   increased security at air traffic control facilities. Additionally, the 
   FAA Administrator will develop a plan to provide technical support to   
   enable small- and medium-sized airports to enhance their security       
   operations, and shall include using network digital video surveillance  
   systems.                                                                
        27. individuals with access to secure areas of the airport       

   Senate bill                                                            

    See item 21                                                            

       Section 106(a): DOT, in consultation with ASOC, shall consider      
   whether such individuals should be screened.                            
       Section 106(d): Amend 44903(g)(2) to delete 1/31/01 deadline and    
   beef up language on access control requirements.                        
    Consider deployment of biometric technologies.                         

    Establish pilot programs at 20 airports to test new technologies.      

       DOT shall require airlines and airports to develop security         
   awareness programs for employees.                                       
       Section 211: Within 6 months, DOT shall recommend to airports       
   commercially available ways to prevent access to secure areas. As part  
   of this, DOT shall review effectiveness of biometric and other systems, 
   focus on eliminating piggy-backing, and include a 12-month deployment   
   strategy for currently available technology at Category X airports. Not 
   later than 18 months, DOT shall conduct a review of reductions in       
   unauthorized access.                                                    
   House bill                                                             

       Section 106: The Under Secretary shall consider imposing standards  
   for the screening or inspection of vehicles that have access to secure  
   areas and provide for the use of technology to verify the identity of   
   those vehicles entering a secure area. Report after 6 months and        
   annually thereafter.                                                    
   Conference substitute                                                  

       The Conference Report instructs that all individuals, goods,        
   property, vehicles, and other equipment seeking access to secure areas  
   must be screened and inspected before entry. The Conference Committee   
   instructs that prescribed requirements should provide at least the same 
   level of protection as the screening of passengers and baggage. The     
   Conferees, however, recognize that these requirements may make          
   allowances for tools and equipment necessary to perform duties in secure
   areas. The Secretary will examine the physical configuration of         
   individual airports, and consider the                                   

                    views of the TSOB to consider implementing standards to       
          protect the integrity of secure areas.                                  
        28. ban on parking of vehicles within 300 feet of terminal       

   Senate bill                                                            

       Section 106(b): FAA, in consultation with local law enforcement,    
   shall reexamine the need for 300 feet restriction.                      
   House bill                                                             

       Section 121: Removes this parking ban if the airport, in            
   consultation with local law enforcement, certifies to DOT, after doing a
   threat assessment, that safeguards are in place to protect public       
   safety.                                                                 
   Conference substitute                                                  

       The Conferees have determined that all airports must consult with   
   local law enforcement and inform DOT that proper safeguards are in place
   to ensure that parked vehicles are not a security risk. Each airport    
   must submit views regarding its assessment of the needs of their        
   facility.                                                               
                           29. checked baggage                           

   Senate bill                                                            

    See item 9.                                                            

       Section 201(b)(1): Requirement for all baggage to be screened within
   9 months.                                                               
       FAA must establish within 60 days confidential goals for scanning a 
   specific percentage of checked bags within 6 months and annual goals    
   thereafter eventually scanning 100%.                                    
       Section 201(c)--page 85FAA shall require airlines to upgrade the bag
   match system. Shall establish goals within 60 days to accomplish this   
   including interim measures to match a higher percentage of bags until   
   bomb detectors are used to scan 100% of bags.                           
    Confidential report to Congress in 1 year.                             

   House bill                                                             

    See item 9.                                                            

       Section 106: All checked baggage must be screened by December 31,   
   2003. All existing explosive detection equipment must be used to the    
   maximum extent possible.                                                
       Additional explosive detection equipment must be installed as soon  
   as possible.                                                            
    In the interim, airlines must implement a bag match program.           

       A system must be in place as soon as possible to screen cargo       
   transported in passenger aircraft.                                      
       Section 123(d): Sense of Congress that all checked baggage should be
   screened by any available means.                                        
   Conference substitute                                                  

       The Conferees feel strongly that all baggage to be placed on        
   passenger flights must be screened. Existing technology, including EDS, 
   should be used and upgraded in an effort to ensure that all checked     
   baggage goes through such a system. Any baggage that does not go through
   EDS will be required to go through some form of manual or other         
   comparable screening system. An alternate system of screening cargo     
   should also be established, and periodic reports issued to provide an   
   understanding of the progress made on these efforts.                    
         30. computer assisted passenger profiling system (capps)        

   Senate bill                                                            

       Section 201(d): FAA shall make all passengers subject to CAPPS even 
   if they don't check bags so that their carry-ons and person will be     
   subject to additional security measures. Report within 3 months.        
       Section 211: DOT, as part of the ASCC, shall conduct a 90-day review
   of upgrades to CAPPS and to the distribution of people on the ``watch   
   list'' of Federal law enforcement agencies. Upgrades shall be deployed  
   in 6 months. A report shall be filed in 18 months.                      
   House bill                                                             

       Section 106(9): The Under Secretary should consider providing the   
   enhanced use of CAPPS to more effectively screen passengers and carry-on
   baggage. Report in 6 months and annually thereafter.                    
   Conference substitute                                                  

       The Conference Report instructs that an enhanced and upgraded use of
   the Computer Assisted Passenger Pre-Screening System (CAPPS) must be    
   considered to more effectively screen passengers and baggage. The       
   Conferees also recognize that adjustments may need to be made to reflect
   circumstances in some areas of the U.S., including States with unique   
   transportation needs.                                                   
         31. deputizing for enforcement of federal security laws         

   Senate bill                                                            

       Section 108(b): Requires Attorney General to deputize State and     
   local law enforcement to regulate screening at non-hubs.                
   House bill                                                             

    Private contractor employees deputized.                                

   Conference substitute                                                  

    No provision.                                                          

                   32. hiring and training of screeners                  

   Senate bill                                                            

       Section 109: DOJ, in consultation with DOT, shall establish a       
   program for the hiring and training of screeners. Hiring qualifications 
   shall be set in 30 days. Includes list of qualifications screeners must 
   meet such as education and language requirements. Training plans must be
   developed within 60 days. Requires 40 hours of classroom training and 60
   hours of on the job training. Current lists of dual use items (seemingly
   harmless items that could be used as a weapon) shall be part of the     
   training. Section 104--page 16.                                         
   House bill                                                             

       Under Secretary may set minimum pay for screeners. Preference shall 
   be given to veterans in the hiring of screeners and laid off airline    
   workers. Final rule for certification of screening companies changed    
   from May 31, 2001 to 6 months after date of enactment. In the meantime, 
   within 30 days of enactment, the standards in the proposed rule, such as
   education and language requirements, shall be in effect. All screeners  
   must be in approved uniforms.                                           
   Conference substitute                                                  

    A blend of the House and Senate provisions.                            


                       33. citizenship of screeners                      

   Senate bill                                                            

       Section 109: Must have been a national of the U.S. for at least 5   
   years.                                                                  
   House bill                                                             

    Section 104(a): Must be U.S. citizens.                                 

   Conference substitute                                                  

       The Conference Report requires that all airport screeners must be   
   citizens of the U.S.                                                    
                         34. status of screeners                         

   Senate bill                                                            

       Section 109(d): Notwithstanding any law, the Attorney General may   
   hire, fire, and pay screeners as he determines necessary.               
   House bill                                                             

       Section 102: Federal supervisor can order the dismissal of any      
   screener.                                                               
   Conference substitute                                                  

       The Conference Report provides the Under Secretary the authority to 
   employ, terminate and fix the conditions of employment for the Federal  
   screening workforce.                                                    
                         35. strikes by screeners                        

   Senate bill                                                            

    Section 109(e): Strikes prohibited pursuant to Title 5.                

   House bill                                                             

    Section 102: Strikes prohibited.                                       

   Conference substitute                                                  

       The Conference Report directs that the airport screening workforce  
   will be prohibited from striking. The Conferees have provided the       
   Transportation Security Administration authority to utilize existing    
   authority provided to the FAA to develop personnel and acquisition      
   systems. The authority gives the Administration flexibility to design   
   its own policies and procedures and not use the FAA's system, while     
   retaining the legal requirements under sections 40110 and 40112.        
                          36. background checks                          

   Senate bill                                                            

       Section 109(f): Requires background checks for current screeners and
   others with access to the airport.                                      
       Section 201(a): Requires background checks for current screeners and
   others to be completed in 9 months unless the person has had such a     
   check in the past 5 years. Alternative checks shall be developed for    
   those who have lived in the U.S. for less than 5 years.                 
   House bill                                                             

       Section 107: Allows smaller airports to use the same expedited      
   procedures for criminal history background checks as the larger airports
   now use. (Under the 2000 Security Act these expedited procedures do not 
   go into effect at smaller airports until 2003.)                         
       Requires background check (including review of government data      
   bases) for all current screeners and those with access to secure areas  
   except for those who have already had such a check or those who are     
   exempted by FAA rules from such checks.                                 
   Conference substitute                                                  

    A blend of the House and Senate provisions.                            

       The Conferees encourage the Under Secretary to provide channeling   
   authority to professional organizations representing industry to FBI    
   AFIS fingerprint databases to perform criminal history verification of  
   aviation business employees.                                            
                       37. research and development                      

   Senate bill                                                            

       Section 110: Amends section 44912 to require periodic reviews of    
   threats to civil aviation and the potential for the release of          
   biological and chemical weapons. A person shall be designated to be     
   responsible for security research. The person shall file an annual      
   report on research activities. A scientific advisory panel shall be     
   established. DOT shall coordinate research with DOJ.                    
       Section 221: Authorizes $50 million per year to research various    
   security technologies.                                                  
   House bill                                                             

       Section 101: Transfers security research from FAA to the TSA. The   
   TSA can use FAA research facilities.                                    
   Conference substitute                                                  

    A modified version of the Senate provision.                            

                            38. flight schools                           

   Senate bill                                                            

       Section 111: Regarding jet-propelled aircraft, a person shall not   
   give flight instruction, including instruction in simulator, to an alien
   (or other person specified by DOT) unless DOJ issues that person a      
   certificate of completion of the background check of the alien. Requests
   for the background check shall be made jointly by the alien and the     
   flight school. Investigation must be completed in 30 days. Investigation
   includes fingerprint check, immigration check, and a determination of   
   whether alien is a national security risk. Expedited procedures shall be
   developed for an alien seeking recurrent training. Penalties for        
   violations shall be developed by DOT rulemaking. Flight schools shall   
   report aliens that they train.                                          
       Section 111(c): DOT and State shall work with ICAO to improve       
   screening of student pilots.                                            
   House bill                                                             

       Section 106(13): The Under Secretary should consider requiring      
   background checks on individuals seeking flying lessons (including      
   simulator lessons) on aircraft weighing more than 12,500 pounds. Report 
   in 6 months and annually thereafter until the Under Secretary implements
   the checks or decides not to require them.                              
   Conference substitute                                                  

       The Conferees have determined that flight school training for       
   aircraft with a minimum certificated weight of 12,500 pounds or more    
   should not be allowed for any alien within the United States unless they
   have passed a sufficient background check. Such individuals seeking to  
   attend flight school may begin pilot training after 45 days or upon     
   being certified as having passed a background investigation regarding   
   their criminal history and immigration status. A                        

                    security awareness program will be developed to assist        
          employees that work at flight schools by helping to increase their      
          awareness of a potential threat.                                        
                              39. penalties                              

   Senate bill                                                            

       Section 114: Imposes criminal penalties for interfering with        
   security personnel at a commercial service airport.                     
   House bill                                                             

       Section 116(c): Transfers the relevant civil penalty authorities    
   from the FAA to the TSA.                                                
   Conference substitute                                                  

       The Conference Report requires that an individual who disrupts the  
   duties of security screening personnel within a commercial service      
   airport shall be fined and/or imprisoned for up to 10 years. The use of 
   a dangerous weapon to interfere with security screening may result in up
   to life imprisonment.                                                   
                        40. intrastate air service                       

   Senate bill                                                            

       Section 116: DOT may grant antitrust exemptions to ensure continued 
   viability of air service in that State.                                 
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conference Report instructs that DOT may grant anti-trust       
   immunity to ensure continued viability of air service within a state. If
   the Secretary approves any such request, a report must be given to the  
   relevant Senate and House Committees within six months of the approval  
   describing what actions have been taken by the carriers receiving the   
   exemption.                                                              
                 41. airline computer reservation systems                

   Senate bill                                                            

       Section 117: DOT shall require all airlines to use the best         
   technology to ensure that their systems are secure from unauthorized    
   access. DOT shall submit an annual report on compliance.                
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       Under the direction of the Conference Report airlines are required  
   to take action that will prevent unauthorized access to computer        
   reservation systems and the information they contain on passengers.     
   Technology should be utilized to the greatest extent possible to ensure 
   the integrity of these systems.                                         
                                 42. fees                                

   Senate bill                                                            

       Section 118(a): Within 180 days, airlines remit a $2.50 fee per     
   enplanement.                                                            
   House bill                                                             

       Section 108: Under Secretary shall impose a fee of not more than    
   $2.50 per one-way trip. The amount of the fee shall be reasonably       
   related to the costs of providing the screening service. In addition, a 
   fee can be imposed directly on the airlines but it cannot be more than  
   the airlines paid for screening services in 2000. Fees shall be credited
   as off-setting collections. Passengers using airports where screening   
   services are not provided may be exempted from the fee.                 
   Conference substitute                                                  

       The Conference substitute requires a fee to be charged to cover the 
   cost of providing the aviation security services. The fee will be based 
   on the number of times a passenger boards a plane during the course of  
   travel, but will be capped at $5.00 per one-way trip. Any additional    
   funds needed will be authorized to be appropriated or may come from a   
   fee imposed directly on the airlines.                                   
       The Secretary may waive or modify the security fee to take into     
   account the isolation of certain communities. In determining whether to 
   waive or modify this fee, the Secretary shall consider the costs of     
   transportation security and the benefits of transportation security that
   is bestowed on those communities. The Conference substitute amends      
   section 45301(b) of title 49, United States Code, with respect to       
   limitations on overflight fees to (1) to make the language consistent   
   with the new security fee language of this Act, and (2) to clarify      
   Congressional intent with respect to the FAA costs upon which the fees  
   can be based. Specifically, the conference substitute replaces the word 
   ``directly'' with ``reasonably'', since the word ``directly'' has been a
   source of much confusion and narrow interpretation, and has been a      
   primary cause of recurring litigation which has frustrated and delayed  
   the FAA's imposition of the overflight fees for a number of years.      
   Additionally, this amendment specifies that the FAA's costs upon which  
   the fees are based are to be determined solely by the Administrator.    
   This is to clarify that the Administrator has full authority to         
   determine costs by appropriate means. This amendment is not intended to 
   require revision of the fees recently promulgated by the FAA (66 FR     
   43680, Aug. 20, 2001) but rather, to clarify longstanding Congressional 
   intent that the FAA expeditiously and continuously collect the fees     
   authorized under section 45301(a) of title 49.                          
                            43. authorization                            

   Senate bill                                                            

       Section 118(b): Authorizes such sums for the next 3 years as may be 
   necessary to carry out the security functions.                          
   House bill                                                             

       Section 109: Authorizes such sums as may be necessary to the TSA for
   operating costs and for screening services not covered by the above fee.
       Authorizes $500 million for grants to airlines to fortify cockpit   
   doors, install video monitors to view the passenger cabin, ensure       
   continuous operation of transponder, and use of other technologies.     
   Conference substitute                                                  

       The Conference Report authorizes the necessary spending for the cost
   of providing aviation security.                                         
                           44. airport funding                           

   Senate bill                                                            


       Section 119(a): Allows AIP and PFC funds to be used to pay security 
   costs in FY 2002 for any cost incurred after 9/11 regardless of when it 
   was incurred. Waives the local matching share. In deciding whether to   
   make a discretionary AIP grant for security costs, the availability and 
   use of non-Federal funding by the airport shall be considered.          
       Section 120: Authorizes such sums in 2002 to compensate airports for
   security costs. Costs must be documented and subject to an IG audit. DOT
   shall publish procedures for filing claims in 30 days.                  
    Section 119(c): PFC requests for security funding should be expedited. 

       Section 119(b): For the purpose of determining AIP entitlements in  
   FY 2003, enplanements in 2000 or 2001, whichever is higher, shall be    
   used.                                                                   
       Section 201(b): Modifying terminal and baggage systems in order to  
   install bomb detection equipment is made AIP eligible. Section 113:     
   Allows AIP and PFC funds to be used to pay for added law enforcement    
   costs in at a non-hub or small hub airport regardless of when the cost  
   was incurred.                                                           
    Waives the local matching share.                                       

       In FY 2002, allows AIP and PFC money to be used to pay debt service 
   if that would prevent an airport, or privately owned terminal, from     
   defaulting on its bond.                                                 
   House bill                                                             

       Section 109: Authorizes a total of $1.5 billion in 2002 and 2003 to 
   reimburse airports for direct costs they incurred to meet new security  
   requirements. Such sums to remain available until expended. Before      
   getting the money, the airport must agree to meet with its              
   concessionaires to discuss rent adjustments and provide an itemized list
   of costs incurred.                                                      
   Conference substitute                                                  

    A blend of the House and Senate provisions.                            

                          45. competition plans                          

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 113(a): Waives an airport's obligation to submit a          
   competition plan in FY 2002 when it is seeking money to improve         
   security.                                                               
   Conference substitute                                                  

       The Conference Report waives the obligation of an airport to submit 
   a competition plan in FY '02 when seeking money to improve security.    
                   46. reporting suspicious activities                   

   Senate bill                                                            

       Section 121: Exempts airline employees from liability for           
   disclosing, in good faith, suspicious activity. DOJ shall establish     
   procedures to notify the FAA of people who may pose a risk of hijacking.
   Report shall be submitted in 120 days on the implementation of this     
   notification.                                                           
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conference Report encourages and exempts airline employees from 
   liability for disclosing suspicious activities in response to a         
   ``reasonably believed'' threat.                                         
                            47. arming pilots                            

   Senate bill                                                            

       Section 122: National Institute of Justice shall assess non-lethal  
   weapons for use by pilots and report to DOT in 90 days. After receiving 
   report, DOT may authorize pilots to carry such weapons. DOT shall       
   establish training and procedural requirements for using these weapons. 
       Section 125: Authorizes FAA to permit a pilot with proper training  
   to carry a gun in the cockpit. FAA shall establish a training program.  
   Report shall be submitted every 6 months on the effectiveness of this   
   provision.                                                              
   House bill                                                             

       Section 106: DOT cannot take any action to prevent a pilot from     
   taking a gun into the cockpit if the policy of the airline allows it and
   the pilot has completed a training program acceptable to the Under      
   Secretary.                                                              
   Conference substitute                                                  

       A pilot is authorized to carry an approved firearm into the cockpit 
   if approved by the Under Secretary and the air carrier, and the pilot   
   has received proper training.                                           
                         48. isolated communities                        

   Senate bill                                                            

       Section 123: During an emergency, DOT, after consulting with the    
   ASCC, may grant waivers on flight restrictions to allow flights carrying
   freight, mail, patients, and medical supplies to areas with             
   extraordinary transportation needs given isolation of the area and if   
   the waiver is in the public interest.                                   
   House bill                                                             

    Section 120: Similar provision but worded differently.                 

   Conference substitute                                                  

       The Conference Report instructs that during an emergency DOT may    
   grant waivers on flight restrictions to areas with extraordinary        
   transportation needs.                                                   
                      49. supplies on board aircraft                     

   Senate bill                                                            

       Section 124: DOT shall ensure the safety of food and other supplies 
   on aircraft by sealing packages, screening personnel and vehicles, etc. 
   House bill                                                             

    See item 27.                                                           

   Conference substitute                                                  

       The Conferees have determined that DOT should establish procedures  
   to ensure the safety and security of on-board supplies for intrastate   
   passenger aircraft. The Secretary will establish procedures that may    
   increase security for the point of origin of the                        

                    supplier, provide for sealed supplies, and the screening of   
          the supplies as they enter the airport.                                 
                           50. airman registry                           

   Senate bill                                                            

       Section 126: Directs FAA to modify the registry to make it more     
   effective in combating terrorism. FAA should work with State and locals 
   to assist in identifying those applying for or holding airmen           
   certificates.                                                           
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conferees direct that the FAA must take steps to make the airman
   registry more effective to combat terrorism by working with the         
   appropriate authorities to assist in properly identifying persons       
   applying for or in possession of airmen certificates.                   
                         51. passenger manifests                         

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 111: Within 60 days, U.S. and foreign airlines on           
   international flights to the U.S. must provide to the Under Secretary   
   (or another agency) by electronic transmission a passenger and crew     
   manifest with specified information.                                    
   Conference substitute                                                  

       The Conference Report requires air carriers to use the Air Passenger
   Information System (APIS) to provide a crew and passenger manifest and  
   related information to Customs for each flight.                         
                       52. results-based management                      

   Senate bill                                                            

       Section 127: Within 60 days, DOT shall establish acceptable         
   performance levels for aviation security and provide Congress with an   
   action plan clarifying the responsibilities of the government agencies  
   involved. Each year, a performance plan shall be made available. Any    
   contracts to implement this Act shall try to maximize the use of        
   performance based service contracts.                                    
   House bill                                                             

       Section 106(7): Consider establishing performance goals for         
   screeners. Report after 6 months and annually thereafter until this is  
   implemented or rejected.                                                
   Conference substitute                                                  

    Modified Senate provision.                                             

                         53. employment register                         

   Senate bill                                                            

       Section 128(a): DOT shall establish and maintain an employment      
   register.                                                               
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

    No provision.                                                          

                         54. training facilities                         

   Senate bill                                                            

       Section 128(b): DOT may use FAA training facilities to train        
   security screeners.                                                     
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conference Report directs the Secretary to use existing Federal 
   training facilities, where possible, to address the training needs of   
   security screening personnel.                                           
                        55. airspace restrictions                        

   Senate bill                                                            

       Section 129: President shall submit a report within 30 days         
   describing any airspace restrictions that remain in place and the       
   justification for those restrictions.                                   
   House bill                                                             

       Section 119: The restrictions on Class B airspace shall cease to be 
   in effect 10 days after enactment unless a notice is published prior to 
   the 10th day reimposing and explaining the reasons for those            
   restrictions.                                                           
   Conference substitute                                                  

       The Conferees instruct the Secretary to lift restrictions on Class B
   airspace under specified requirements.                                  
                              56. volunteers                             

   Senate bill                                                            

       Section 130: DOT shall carry out a program to permit police,        
   firefighters, and paramedics to provide emergency services during       
   flight. Exempts from liability those who help in an emergency. This does
   not authorize the possession of firearms.                               
   House bill                                                             

       No provision but exemption from liability seems to be covered by    
   existing law, section 5(b) of Aviation Medical Assistance Act.          
   Conference substitute                                                  

       The Conferees instruct the Secretary to implement a program that    
   will allow qualified law enforcement, firefighters and emergency service
   technicians to assist in the event of an emergency during commercial air
   flights. This program will establish the credentials of volunteers,     
   maintain their confidentiality and exempt them from liability.          
                       57. limitation on liability                       

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 110: Limits liability of passenger or crew who hurts a      
   person they, in good faith, believe was hijacking or about to hijack the
   plane.                                                                  
   Conference substitute                                                  

       The Conference Report exempts passengers and crew from liability if 
   an individual ``reasonably believed'' that a hijacking was occurring.   

                      58. general aviation security                      

   Senate bill                                                            

       Section 131: FAA shall begin a security program for aircraft over   
   12,500 pounds within 90 days. Waivers from this requirement can be      
   granted. A security program for smaller aircraft shall begin in 1 year. 
   A report shall be filed in 18 months.                                   
       Aircraft may not be sold or leased to an alien unless a background  
   check has been done or until the security programs described above are  
   implemented.                                                            
   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conference report directs the Secretary to provide Congress a   
   report on improving general aviation security in the United States      
   within 3 months of enactment of the legislation.                        
       The Conferees note that a number of issues on aviation security     
   research merit the prompt attention of the Department of Transportation.
   In particular, the Conferees observe that research into providing better
   security with minimal disruption in the system in the area of general   
   aviation is important.                                                  
       The Conferees note that the FAA has recently designated a consortium
   of schools as a general aviation center of excellence and anticipates   
   that the FAA would draw upon the expertise of these institutions in     
   formulating a security program for general aviation.                    
       The Conferees also note that NASA, in coordination with the DOT, is 
   investigating technology that would facilitate remote screening of small
   aircraft prior to takeoff.                                              
       Such a general aviation remote screening system (GARSS) could be    
   installed on a vehicle or mobile platform, or in a fixed facility       
   alongside a taxiway, and would provide a pre-takeoff alert if suspicious
   objects or materials were detected aboard an aircraft.                  
       The Conferees urge that the development and implementation of GARSS 
   be pursued.                                                             
                59. funding for general aviation airports                

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 113(b): In FY 2002, allows non-primary airports within Class
   B airspace to seek AIP money for any purpose, including operational     
   costs.                                                                  
   Conference substitute                                                  

    Modified House position.                                               

                   60. conforming amendment to irs code                  

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 113(e): Amends Code to cross-reference this Security Act so 
   that the money authorized by this Act out of the Trust Fund can be      
   spent.                                                                  
   Conference substitute                                                  

       The Conference Report amends the IRS code to cross-reference this   
   legislation to provide for the authorization of spending from the Trust 
   Fund.                                                                   
                        61. technical corrections                        

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 114: Makes technical corrections to the Air Transportation  
   Safety and System Stabilization Act.                                    
   Conference substitute                                                  

       The Conference Report makes technical corrections to the Air        
   Transportation Safety and System Stabilization Act.                     
                       62. alcohol and drug testing                      

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 115: Amends existing law to account for the transfer of     
   functions from the FAA to the TSA.                                      
   Conference substitute                                                  

       The Conference Report amends existing law to transfer alcohol and   
   drug testing functions from the FAA to the TSA.                         
                        63. conforming amendments                        

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 116: Amends existing law to account for the transfer of     
   functions from the FAA to the TSA.                                      
   Conference substitute                                                  

       The Conference Report amends existing law to account for the        
   transfer of functions from the FAA to the TSA.                          
                          64. savings provision                          

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

    Section 117: Ensures a smooth transfer from the FAA to the TSA.        

   Conference substitute                                                  

    The Conference Report.                                                 

    House provision.                                                       

                          65. budget submissions                         

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 118: Requires the President's budget submissions starting in
   2003 to list the TSA budget separately.                                 
   Conference substitute                                                  

    The Conference Report.                                                 

    House provision.                                                       


                            66. air ambulances                           

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             
       Section 114: Amends the Airline Stabilization Act to modify the     
   method for distributing compensation to air ambulances.                 
   Conference substitute                                                  

       The Conference Report amends the Airline Stabilization Act to allow 
   for a modified system of providing compensation to air tour operators   
   and air ambulances to better address their needs after industry wide    
   losses. It is the Conferees' position that the Stabilization Act's      
   section 103 compensation formula language, ``revenue ton miles or any   
   other auditable measure'' should be broadly construed and should not    
   restrict compensation exclusively to revenue ton miles reported on      
   previously filed DOT Form 41s. If Air, Crew, Maintenance, Insurance     
   lessors can provide accurate and auditable records of their             
   revenue-ton-miles during the relevant time period, then they should be  
   eligible for compensation based under the Stabilization Act.            
          67. passengers who bought tickets on bankrupt airlines         

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 123: Other airlines must honor these tickets to the extent  
   practicable.                                                            
   Conference substitute                                                  

       The Conferees direct the air carriers, to the extent practicable, to
   honor the tickets of passengers purchased by airlines that file for     
   bankruptcy, if the purchaser requests the use of his or her ticket      
   within 60 days of the suspended or canceled flight, for the first 18    
   months after enactment of this legislation.                             
                   68. flight service station employees                  

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 123(a): Sense of Congress that FAA should continue          
   negotiating in good faith with these employees.                         
   Conference substitute                                                  

       The Conference Report offers the Sense of Congress that FAA should  
   continue negotiating in good faith with flight service station          
   employees.                                                              
                          69. war risk insurance                         

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 123(b): Sense of Congress that vendors agents and           
   subcontractors of general aviation aircraft should get war risk         
   insurance.                                                              
   Conference substitute                                                  

       The Conference Report offers the Sense of Congress on the           
   availability of war risk insurance to vendors, agents, and              
   subcontractors of air carriers for all their domestic operations.       
                               70. animals                               

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

       Section 123(c): Sense of Congress that airlines that transport mail 
   should carry animals that the Postal Service allows to be mailed.       
   Conference substitute                                                  

       The Conference Report offers the Sense of the House that airlines   
   that transport mail should carry animals that the U.S. Postal Service   
   permits to be sent in the mail.                                         
                           71. Carry-on Baggage                          

   Senate bill                                                            

    Report on carry-on baggage.                                            

   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conference Report offers the Sense of the Congress that the FAA 
   should continue its current restrictions on carry-on baggage of 1 bag   
   plus 1 personal item. A backpack should be considered a personal item.  
                      72. USPS Mail Policy in Alaska                     

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

    No provision.                                                          

   Conference substitute                                                  

       The Conferees encourage the Congress to pass legislation quickly to 
   restructure the United States Postal Service's process of tendering     
   non-priority bypass mail with the State of Alaska. Restructuring this   
   program to direct more carriers to convert to 121 passenger operators   
   will improve the safety of air transportation in Alaska and enhance the 
   security of passengers.                                                 
                         73. victims compensation                        

   Senate bill                                                            

    No provision.                                                          

   House bill                                                             

    Title II.                                                              

   Conference substitute                                                  

       The Conference substitute extends the liability limitations of the  
   Air Transportation Stabilization Act to aircraft manufacturers, State   
   port authorities, owners and operators of airports, and persons with    
   property interests in the World Trade Center.                           
       These provisions limit liability under the Act to the maximum level 
   of their insurance coverage.                                            

       Any person with a property interest in the World Trade Center, as a 
   condition to receiving liability protection under the Act, is required  
   to satisfy all contractual obligations to rebuild or assist in the      
   rebuilding of the World Trade Center.                                   
       The Conference substitute also limits the liability for all claims  
   arising from the terrorist-related attacks of September 11, 2001,       
   brought against the City of New York to the greater of the City's       
   insurance coverage or $350,000,000.                                     
       This limitation on damages against the City of New York, however,   
   does not apply to any non-government or private entity that is          
   contracted with the City.                                               
       The Conference substitute also excludes entities primarily engaged  
   in the business of airport security from its limitation on liability.   
    Don Young,                                                              

    Thomas Petri,                                                           

    John J. Duncan,  Jr.,                                                   

    John L. Mica,                                                           

    Vernon J. Ehlers,                                                       

    James L. Oberstar,                                                      

    William O. Lipinski,                                                    

    Peter DeFazio,                                                          

        Managers on the Part of the House.                                      


    Ernest F. Hollings,                                                     

    Daniel K. Inouye,                                                       

    John D. Rockefeller IV,                                                 

    John F. Kerry,                                                          

    John Breaux,                                                            

    Byron L. Dorgan,                                                        

    Ron Wyden,                                                              

    John McCain,                                                            

    Trent Lott,                                                             

    Kay Bailey Hutchison,                                                   

    Olympia Snowe,                                                          

        Managers on the Part of the Senate.                                     


Source:
U.S. Government Website

September 11 Page

127 Wall Street, New Haven, CT 06511.