SEC. 8. AUTHORIZATION OF APPROPRIATIONS. There are authorized to be appropriated $250,000 for the period encompassing fiscal years 2003 and 2004 to carry out this Act, to remain available until expended. Approved September 18, 2001. LEGISLATIVE HISTORY-H.R. 2133 (S. 1046): Aug. 3, considered and passed Senate, amended. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 37 (2001): Sept. 22, 2001 [H.R. 2926] Air Transportation Stabilization Act. 49 USC 40101 note. 49 USC 40101 note. President. Terrorism. Public Law 107-42 107th Congress An Act To preserve the continued viability of the United States air transportation system. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the "Air Transportation Safety and System Stabilization Act". TITLE I-AIRLINE STABILIZATION SEC. 101. AVIATION DISASTER RELIEF. (a) IN GENERAL.-Notwithstanding any other provision of law, the President shall take the following actions to compensate air carriers for losses incurred by the air carriers as a result of the terrorist attacks on the United States that occurred on September 11, 2001: (1) Subject to such terms and conditions as the President deems necessary, issue Federal credit instruments to air carriers that do not, in the aggregate, exceed $10,000,000,000 and provide the subsidy amounts necessary for such instruments in accordance with the provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). (2) Compensate air carriers in an aggregate amount equal to $5,000,000,000 for (A) direct losses incurred beginning on September 11, 2001, by air carriers as a result of any Federal ground stop order issued by the Secretary of Transportation or any subsequent order which continues or renews such a stoppage; and (B) the incremental losses incurred beginning September 11, 2001, and ending December 31, 2001, by air carriers as a direct result of such attacks. (b) EMERGENCY DESIGNATION.-Congress designates the amount of new budget authority and outlays in all fiscal years resulting from this title as an emergency requirement pursuant to section 252(e) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(e)). Such amount shall be available only to the extent that a request, that includes designation of such amount as an emergency requirement as defined in such Act, is transmitted by the President to Congress. SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD. (a) DEFINITIONS.-In this section, the following definitions apply: (1) BOARD.-The term "Board" means the Air Transportation Stabilization Board established under subsection (b). (2) FINANCIAL OBLIGATION.-The term "financial obligation" means any note, bond, debenture, or other debt obligation issued by an obligor in connection with financing under this section and section 101(a)(1). (3) LENDER.-The term "lender" means any non-Federal qualified institutional buyer (as defined by section 230.144A(a) of title 17, Code of Federal Regulations (or any successor regulation) known as Rule 144A(a) of the Securities and Exchange Commission and issued under the Security Act of 1933, including (A) a qualified retirement plan (as defined in section 4974(c) of the Internal Revenue Code of 1986 (26 U.S.C. 4974(c)) that is a qualified institutional buyer; and (B) a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. 414(d)) that is a qualified institutional buyer. (4) OBLIGOR.-The term "obligor" means a party primarily liable for payment of the principal of or interest on a Federal credit instrument, which party may be a corporation, partnership, joint venture, trust, or governmental entity, agency, or instrumentality. (b) AIR TRANSPORTATION STABILIZATION BOARD. (1) ESTABLISHMENT.-There is established a board (to be known as the "Air Transportation Stabilization Board") to review and decide on applications for Federal credit instruments under section 101(a)(1). (2) COMPOSITION.-The Board shall consist of— (A) the Secretary of Transportation or the designee of the Secretary; (B) the Chairman of the Board of Governors of the Federal Reserve System, or the designee of the Chairman, who shall be the Chair of the Board; (C) the Secretary of the Treasury or the designee of the Secretary; and (D) the Comptroller General of the United States, or the designee of the Comptroller General, as a nonvoting member of the Board. (c) FEDERAL CREDIT INSTRUMENTS.— (1) IN GENERAL.-The Board may enter into agreements with 1 or more obligors to issue Federal credit instruments under section 101(a)(1) if the Board determines, in its discretion, that (A) the obligor is an air carrier for which credit is not reasonably available at the time of the transaction; (B) the intended obligation by the obligor is prudently incurred; and (C) such agreement is a necessary part of maintaining a safe, efficient, and viable commercial aviation system in the United States. (2) TERMS AND LIMITATIONS. (A) FORMS; TERMS AND CONDITIONS.-A Federal credit instrument shall be issued under section 101(a)(1) in such Deadline. 49 USC 40101 note. form and on such terms and conditions and contain such covenants, representatives, warranties, and requirements (including requirements for audits) as the Board determines appropriate. (B) PROCEDURES.-Not later than 14 days after the date of enactment of this Act, the Director of the Office of Management and Budget shall issue regulations setting forth procedures for application and minimum requirements, which may be supplemented by the Board in its discretion, for the issuance of Federal credit instruments under section 101(a)(1). (d) FINANCIAL PROTECTION OF GOVERNMENT.— (1) IN GENERAL.-To the extent feasible and practicable, the Board shall ensure that the Government is compensated for the risk assumed in making guarantees under this title. (2) GOVERNMENT PARTICIPATION IN GAINS.-To the extent to which any participating corporation accepts financial assistance, in the form of accepting the proceeds of any loans guaranteed by the Government under this title, the Board is authorized to enter into contracts under which the Government, contingent on the financial success of the participating corporation, would participate in the gains of the participating corporation or its security holders through the use of such instruments as warrants, stock options, common or preferred stock, or other appropriate equity instruments. (3) DEPOSIT IN TREASURY.-All amounts collected by the Secretary of the Treasury under this subsection shall be deposited in the Treasury as miscellaneous receipts. SEC. 103. SPECIAL RULES FOR COMPENSATION. (a) DOCUMENTATION.-Subject to subsection (b), the amount of compensation payable to an air carrier under section 101(a)(2) may not exceed the amount of losses described in section 101(a)(2) that the air carrier demonstrates to the satisfaction of the President, using sworn financial statements or other appropriate data, that the air carrier incurred. The Secretary of Transportation and the Comptroller General of the United States may audit such statements and may request any information that the Secretary and the Comptroller General deems necessary to conduct such audit. (b) MAXIMUM AMOUNT OF COMPENSATION PAYABLE PER AIR CARRIER.-The maximum total amount of compensation payable to an air carrier under section 101(a)(2) may not exceed the lesser of (1) the amount of such air carrier's direct and incremental losses described in section 101(a)(2); or (2) in the case of (A) flights involving passenger-only or combined passenger and cargo transportation, the product of (i) $4,500,000,000; and (ii) the ratio of (I) the available seat miles of the air carrier for the month of August 2001 as reported to the Secretary; to (II) the total available seat miles of all such air carriers for such month as reported to the Secretary; and (B) flights involving cargo-only transportation, the product of (i) $500,000,000; and (ii) the ratio of (I) the revenue ton miles or other auditable measure of the air carrier for cargo for the latest quarter for which data is available as reported to the Secretary; to (II) the total revenue ton miles or other auditable measure of all such air carriers for cargo for such quarter as reported to the Secretary. (c) PAYMENTS.-The President may provide compensation to air carriers under section 101(a)(2) in 1 or more payments up to the amount authorized by this title. SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION. (a) IN GENERAL.-The President may only issue a Federal credit instrument under section 101(a)(1) to an air carrier after the air carrier enters into a legally binding agreement with the President that, during the 2-year period beginning September 11, 2001, and ending September 11, 2003, no officer or employee of the air carrier whose total compensation exceeded $300,000 in calendar year 2000 (other than an employee whose compensation is determined through an existing collective bargaining agreement entered into prior to September 11, 2001)— (1) will receive from the air carrier total compensation which exceeds, during any 12 consecutive months of such 2year period, the total compensation received by the officer or employee from the air carrier in calendar year 2000; and (2) will receive from the air carrier severance pay or other benefits upon termination of employment with the air carrier which exceeds twice the maximum total compensation received by the officer or employee from the air carrier in calendar year 2000. (b) TOTAL COMPENSATION DEFINED.-In this section, the term "total compensation" includes salary, bonuses, awards of stock, and other financial benefits provided by an air carrier to an officer or employee of the air carrier. SEC. 105. CONTINUATION OF CERTAIN AIR SERVICE. (a) ACTION OF SECRETARY.-The Secretary of Transportation should take appropriate action to ensure that all communities that had scheduled air service before September 11, 2001, continue to receive adequate air transportation service and that essential air service to small communities continues without interruption. (b) ESSENTIAL AIR SERVICE.-There is authorized to be appropriated to the Secretary to carry out the essential air service program under subchapter II of chapter 417 of title 49, United States Code, $120,000,000 for fiscal year 2002. (c) SECRETARIAL OVERSIGHT.— (1) IN GENERAL.-Notwithstanding any other provision of law, the Secretary is authorized to require an air carrier receiving direct financial assistance under this Act to maintain scheduled air service to any point served by that carrier before September 11, 2001. (2) AGREEMENTS.—In applying paragraph (1), the Secretary may require air carriers receiving direct financial assistance under this Act to enter into agreements which will ensure, 49 USC 40101 note. 49 USC 40101 note. Appropriation authorization. |