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107th Congress                                            Rept. 107-406
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================



 
           GENERAL AVIATION INDUSTRY REPARATIONS ACT OF 2002

                                _______
                                

 April 15, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

     Mr. Young of Alaska, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 3347]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 3347) to provide economic relief to 
general aviation entities that have suffered substantial 
economic injury as a result of the terrorist attacks 
perpetrated against the United States on September 11, 2001, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``General Aviation Industry Reparations 
Act of 2002''.

SEC. 2. GENERAL AVIATION INDUSTRY REPARATIONS.

  (a) In General.--Notwithstanding any other provision of law, the 
President shall take the following actions to compensate general 
aviation entities and their employees for economic injuries incurred by 
such entities and employees 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 and subject to subsection (b), issue Federal 
        credit instruments to such entities that do not, in the 
        aggregate, exceed $3,000,000,000 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 such entities and employees in an aggregate 
        amount equal to $2,500,000,000 for--
                  (A) direct losses incurred beginning on September 11, 
                2001, by such entities 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;
                  (B) the incremental losses incurred beginning 
                September 11, 2001, and ending December 31, 2001, by 
                such entities as a direct result of such attacks;
                  (C) the incremental losses incurred by employees of 
                an entity receiving assistance under this Act who lost 
                their jobs (other than for cause) at any time during 
                the period between September 11 and December 31, 2001, 
                as a result of the such attacks; except that 
                incremental losses under this subparagraph shall be 
                limited to--
                          (i) losses incurred, during a period of 90 
                        days beginning on the date of the job loss, as 
                        lost compensation offset by compensation paid 
                        by any other entity; and
                          (ii) the added costs to such employees, for 
                        themselves and their dependents, of health 
                        insurance premiums and medical expenses 
                        incurred, during such 90-day period, that--
                                  (I) would have been paid by health 
                                insurance coverage that was lost as a 
                                result of the job loss or as a result 
                                of other action to reduce expenses 
                                taken by the entity receiving 
                                assistance under this Act; and
                                  (II) were not paid by other insurance 
                                coverage, a government agency, or 
                                charitable gift; and
                  (D) direct losses incurred by such entities as a 
                direct result of flight restrictions for a period of 
                one week or more imposed by the Secretary of 
                Transportation before the date of enactment of this Act 
                in response to the increased security required by such 
                attacks.
  (b) Limitation on Aggregate Amount of Credit Instruments.--The 
aggregate amount of Federal credit instruments that may be issued under 
section 101(a)(1) of the Air Transportation Safety and System 
Stabilization Act (49 U.S.C. 40101 note; 115 Stat. 230) shall be 
reduced by the aggregate amount of Federal credit instruments issued 
under subsection (a)(1) of this section.
  (c) Emergency Designation.--Congress designates the amount of new 
budget authority and outlays in all fiscal years resulting from this 
Act 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.
  (d) Deadline for Applications.--Not later than 14 days after the date 
of enactment of this Act, the President shall establish and publish in 
the Federal Register a deadline for the issuance of Federal credit 
instruments under this section and a deadline for the submission of 
applications for payments of compensation under this section.

SEC. 3. STABILIZATION BOARD.

  (a) Federal Credit Instruments.--
          (1) Operating plan.--An obligor seeking issuance of a Federal 
        credit instrument under section 2(a)(1) shall submit to the Air 
        Transportation Stabilization Board, established under section 
        102(b) of the Air Transportation Safety Stabilization Act (49 
        U.S.C. 40101 note; 115 Stat. 231), an operating plan (including 
        budget and cash flow projections) and financial plan for the 
        period of time that the instrument will be in effect. Such 
        plans shall demonstrate to the satisfaction of the Board the 
        ability of the obligor to continue operations as an ongoing 
        general aviation entity during and after the period of time the 
        instrument will be in effect.
          (2) Issuance.--The Board, in consultation with the Small 
        Business Administration, may enter into agreements with 1 or 
        more obligors to issue Federal credit instruments under section 
        2(a)(1) if the Board determines, in its discretion, that--
                  (A) the obligor is a general aviation entity for 
                which credit is not reasonably available at the time of 
                the transaction;
                  (B) the intended obligation by the obligor is 
                prudently incurred;
                  (C) the obligor has furnished reasonable assurance 
                that it will be able to repay all loans and other debt 
                obligations covered by the Federal credit instrument in 
                accordance with the terms of such loans and other 
                obligations;
                  (D) the obligor intends to continue to operate as a 
                general aviation entity, and the operating and 
                financial plan submitted by the obligor under paragraph 
                (1) satisfies the demonstration required by paragraph 
                (1); and
                  (E) the type of aviation services or products (or 
                both) provided by the obligor are an important part of 
                a safe, efficient, and viable general aviation system.
  (b) Terms and Limitations.--
          (1) Forms; terms and conditions.--A Federal credit instrument 
        shall be issued under section 2(a)(1) in such form and on such 
        terms and conditions and contain such covenants, 
        representations, warranties, and requirements (including 
        requirements for audits) as the Board determines appropriate. 
        The Board may issue a Federal credit instrument under section 
        2(a)(1) to pay all or part of any of the principal of and 
        interest on a loan or other debt obligation issued to the 
        obligor.
          (2) 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 2(a)(1).
  (c) 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 Act.
          (2) Government participation in gains.--To the extent to 
        which any participating entity accepts financial assistance, in 
        the form of accepting the proceeds of any loans guaranteed by 
        the Government under this Act, the Board is authorized to enter 
        into contracts under which the Government, contingent on the 
        financial success of the participating entity, would 
        participate in the gains of the participating entity 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 
        Government under this subsection shall be deposited in the 
        Treasury as miscellaneous receipts.

SEC. 4. SPECIAL RULES FOR COMPENSATION.

  (a) Limitation on Amount of Compensation.--
          (1) Documentation.--Subject to subsection (b), the amount of 
        compensation payable under section 2(a)(2) to a general 
        aviation entity may not exceed the amount of losses described 
        in such section that such entity demonstrates to the 
        satisfaction of the President, using sworn financial statements 
        or other appropriate data, that such entity incurred.
          (2) Audits.--The Secretary of Transportation and the 
        Comptroller General of the United States may audit statements 
        referred to in paragraph (1) and may request any information 
        that the Secretary and the Comptroller General deem necessary 
        to conduct such audit.
  (b) Priority.--The President shall give priority for compensation 
under section 2(a)(2) to a general aviation entity--
          (1) based on the length of time that the entity has been 
        unable to operate as a result of the terrorist attacks on the 
        United States that occurred on September 11, 2001; and
          (2) if the entity is a small business concern (as defined 
        under section 3 of the Small Business Administration Act (15 
        U.S.C. 632(a))).
  (c) Amount of Compensation.--In order to ensure that compensation 
provided under section 2(a)(2) is distributed equitably among general 
aviation entities that have substantiated losses described in section 
2(a)(2), the President may provide compensation under section 2(a)(2) 
to a general aviation entity that is an amount less than the amount of 
losses incurred by the entity and substantiated by the entity as losses 
for which compensation may be made under section 2(a)(2).
  (d) Payments.--The President may provide compensation under section 
2(a)(2) to general aviation entities in 1 or more payments up to the 
amount authorized by this Act.
  (e) Employee Protection.--If the President provides compensation to a 
general aviation entity under subparagraph (A) or (B) of section 
2(a)(2), the President must also provide compensation to its employees 
under subparagraph (C) of such section. The President shall develop 
procedures to ensure that an application by a general aviation entity 
for compensation includes complete information about losses of 
employees of such entity.

SEC. 5. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.

  (a) In General.--The President may only issue a Federal credit 
instrument, or provide compensation, under section 2(a) to a general 
aviation entity after the entity enters into a legally binding 
agreement with the President that, during the 2-year period beginning 
on the date of enactment of this Act, no officer or employee of the 
entity 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 such 
date of enactment)--
          (1) will receive from the entity total compensation which 
        exceeds, during any 12 consecutive months of such 2-year 
        period, the total compensation received by the officer or 
        employee from the entity in calendar year 2000; and
          (2) will receive from the entity severance pay or other 
        benefits upon termination of employment with the entity which 
        exceeds twice the maximum total compensation received by the 
        officer or employee from the entity 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 a general aviation entity to an officer 
or employee of the entity.

SEC. 6. DOMESTIC INSURANCE AND REIMBURSEMENT OF INSURANCE COSTS.

  Section 44302 of title 49, United States Code, is amended--
          (1) in each of subsections (b), (c), and (d) by inserting 
        ``or general aviation entity (as defined in section 3 of the 
        General Aviation Industry Reparations Act of 2002)'' after 
        ``air carrier''; and
          (2) in subsection (b)(4) by inserting ``and general aviation 
        entities'' after ``air carriers''.

SEC. 7. REPORT.

  Not later than the 180th day following the date of enactment of this 
Act, the President shall transmit to the Committee on Transportation 
and Infrastructure, the Committee on Appropriations, and the Committee 
on the Budget of the House of Representatives and the Committee on 
Commerce, Science, and Transportation, the Committee on Appropriations, 
and the Committee on the Budget of the Senate a report on the amount of 
assistance provided under this Act to each general aviation entity and 
the financial status of such entity.

SEC. 8. HEALTH INSURANCE.

  (a) Health Insurance Agreement.--The President may only issue a 
Federal credit instrument to a general aviation entity under section 
2(a)(1) if the entity has entered into a legally binding agreement with 
the President to provide--
          (1) for payment of costs attributable to providing health 
        insurance coverage as described in subsections (b) and (c); and
          (2) for maintenance of current health benefit and 
        contribution levels as described in subsection (d).
  (b) Payment of Health Insurance Coverage for Former Employees Who 
Lose Coverage.--Under the agreement under subsection (a) and subject to 
subsection (e), the entity shall pay the costs attributable to 
providing health insurance coverage for a former employee (and the 
employee's dependents) if the former employee--
          (1) was provided health insurance coverage on September 11, 
        2001, by the entity; and
          (2) lost his or her job, after September 11, 2001, and before 
        the date the entity is issued a Federal credit instrument under 
        section 2(a)(1), as a result of the terrorist attacks on the 
        United States that occurred on September 11, 2001.
  (c) Payment of Health Insurance Coverage for Current Employees Who 
Lose Coverage.--Under the agreement under subsection (a) and subject to 
subsection (e), the entity shall pay the costs attributable to 
providing health insurance coverage for an employee (and the employee's 
dependents) if the employee--
          (1) was provided health insurance coverage on September 11, 
        2001, by the entity;
          (2) lost such coverage, after September 11, 2001, and before 
        the date the entity is issued a Federal credit instrument under 
        section 2(a)(1), by reason of the entity's response to economic 
        conditions arising out of the terrorist attacks on the United 
        States that occurred on September 11, 2001; and
          (3) is employed by such entity on the date of issuance of 
        such instrument.
  (d) Maintenance of Current Benefit Levels for Currently Insured 
Employees.--Under the agreement under subsection (a) and subject to 
subsection (e), the entity shall not reduce the amount of health 
benefits or employer contribution made for health insurance coverage 
for employees employed by the entity as of the date the entity is 
issued a Federal credit instrument under section 2(a)(1) below the 
level of such benefits and contributions in effect on February 27, 
2002.
  (e) Limitations.--The obligation of a general aviation entity--
          (1) under subsections (b), (c), and (d) shall be limited to a 
        period of 6 months beginning on the date the entity is issued a 
        Federal credit instrument under section 2(a)(1);
          (2) under subsections (b) and (c) shall not apply to an 
        employee who lost a job for cause; and
          (3) under subsection (b) shall not apply to an employee after 
        the date that the employee is first employed on a full-time, 
        non-seasonal basis after the date of the job loss referred to 
        in subsection (b).
  (f) Health Insurance Coverage Defined.--For purposes of this section 
and section 2, the term ``health insurance coverage'' has the meaning 
given such term in subsection (b)(1) of section 733 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1191b) and includes 
coverage under a group health plan (as defined in subsection (a)(1) of 
such section).

SEC. 9. DEFINITIONS.

  In this Act, the following definitions apply:
          (1) Federal credit instrument.--The term ``Federal credit 
        instrument'' means any guarantee or other pledge by the Air 
        Transportation Stabilization Board issued under section 2(a)(1) 
        of this Act to pledge the full faith and credit of the United 
        States to pay all or part of any of the principal of and 
        interest on a loan or other debt obligation issued by an 
        obligor and funded by a lender.
          (2) General aviation entity.--The term ``general aviation 
        entity'' means any person (other than an air carrier or foreign 
        air carrier) that--
                  (A) operates nonmilitary aircraft under part 91 of 
                title 14, Code of Federal Regulations, for the purpose 
                of conducting its primary business;
                  (B) manufactures nonmilitary aircraft with a maximum 
                seating capacity of fewer than 20 passengers or 
                aircraft parts to be used in such aircraft;
                  (C) provides services necessary for nonmilitary 
                operations under such part 91; or
                  (D) operates an airport, other than a primary airport 
                (as such terms are defined in section 40102 of title 
                49, United States Code), that--
                          (i) is listed in the national plan of 
                        integrated airport systems developed by the 
                        Federal Aviation Administration under section 
                        47103 of such title; or
                          (ii) is normally open to the public, is 
                        located within the confines of enhanced class B 
                        airspace (as defined by the Federal Aviation 
                        Administration in Notice to Airmen FDC 1/0618), 
                        and was closed as a result of an order issued 
                        by the Federal Aviation Administration in the 
                        period beginning September 11, 2001, and ending 
                        January 1, 2002, and remained closed as a 
                        result of that order on January 1, 2002.
        Such term includes fixed based operators, flight schools, 
        manufacturers of general aviation aircraft and products, 
        persons engaged in nonscheduled aviation enterprises, and 
        general aviation independent contractors.
          (3) Incremental loss.--The term ``incremental loss'' does not 
        include any loss that the President determines would have been 
        incurred if the terrorist attacks on the United States that 
        occurred on September 11, 2001, had not occurred.

                       Purpose of the Legislation

    H.R. 3347 provides relief to general aviation entities that 
have suffered substantial economic injury as a result of the 
terrorists attacks perpetrated against the United States on 
September 11, 2001.

                Background and Need for the Legislation

    General aviation has become a forgotten victim of the 
September 11, 2001 terrorist attacks on the United States. The 
Federal government imposed more severe and onerous restrictions 
on general aviation than any other sector of the aviation 
industry.
    As a precaution during the attacks, the Federal Aviation 
Administration (FAA) grounded all civil aviation flights. 
However, unlike major airlines that were grounded for a few 
days, general aviation operations around major metropolitan 
areas were prohibited for weeks. Three airports in the 
Washington metropolitan area, Hyde Field, Potomac Airpark and 
College Park Airport, remained closed until February 14, 2002. 
General aviation is still prohibited from using Reagan National 
Airport. These restrictions have had devastating results for 
hundreds of small businesses across the Nation.
    General aviation accounts for 60 percent of aircraft 
operations nationally and 92 percent of all registered 
aircraft. Since September 11, this sector of the economy has 
lost hundreds of millions of dollars. Thousands of hardworking 
men and women have lost their jobs. At a hearing on September 
25, 2001, the Subcommittee on Aviation heard testimony that 
25,000 general aviation workers have been laid off and 700 
general aviation businesses have shut down (See pages 65 of 
September 25th hearing on aviation security). Fixed-based 
operators, flight schools, manufacturers, aerial surveyors, 
airport operators, and independent contractors all have been 
dramatically affected. Skytypers, a skywriting company near 
Manhattan, laid off all 15 of its pilots. General Aviation 
Services in Beverly, Massachusetts has seen its revenue drop by 
75 percent. At least 5600 flight instructors lost their jobs 
while FAA restrictions on general aviation flights were in 
place. The Van Nuys Flight Center lost nearly $30,000 a day 
during the shutdown. These are only a few examples of the 
hardships endures by thousands of general aviation entities.
    Most of these companies are small, locally owned 
enterprises. They do not have large cash reserves and often do 
not have access to capital markets. Sadly, hundreds of these 
``Mom and Pop'' shops have already closed their doors, and 
hundreds more are teetering on the brink of bankruptcy.
    While the economic injury to this sector is a direct result 
of the September 11th disaster, most of these businesses do not 
qualify for relief under any established Federal law or 
program. H.R. 3347, the General Aviation Industry Reparations 
Act of 2001, attempts to repair some of the damage inflicted 
upon the general aviation industry as a direct result of the 
Federal airspace restrictions. It is modeled after the Air 
Transportation Safety and System Stabilization Act (P.L. 107-
42), which provided the major airlines with relief from 
economic injuries that resulted from the Federal grounding of 
commercial air carrier operations following the terrorist 
attacks.
    The Committee recognizes that other industries have also 
suffered financially from the September 11th attacks. However, 
like the airlines and unlike most of those other industries, 
general aviation entities were actually shut down and 
prohibited from carrying out their business by government 
action. While necessary under the circumstances, it was 
equivalent to a government taking and like similar takings, 
calls for government compensation.
    The shut down of many general aviation businesses has 
resulted in lay-offs and hardship for the employees of those 
businesses. The Committee believes it is important that these 
employees share in the compensation their employers received 
and the reported bill provides for that.
    While the reported bill focuses on compensation for general 
aviation entities and their employees, the Committee is also 
concerned about general aviation security. One of the best ways 
to address general aviation security is to systematically and 
immediately identify and characterize general aviation pilots. 
This issue has been the subject of security discussions within 
the general aviation community.
    The Aircraft Owners and Pilots Association have petitioned 
the Federal Aviation Administration (FAA) for a rule requiring 
pilots to carry valid photo identification. This can be 
implemented quickly and would result in pilots having a picture 
identification (most likely a valid state issued driver's 
license, government ID card, passport, or other form of 
identification that is acceptable to the FAA for security 
purposes), in addition to their pilot and medical certificates 
on their person when flying. The Committee recommends prompt 
action by the FAA on this petition for rulemaking.
    There are other initiatives under consideration for future 
action as required by the Aviation and Transportation Security 
Act (Public Law 107-71) including whether to require all pilot 
licenses to incorporate a photograph of the license holder and 
appropriate biometric imprints. A particularly promising 
initiative in this regard is the creation of a ``smart card'' 
that is underway at leading aeronautical universities and 
elsewhere. For a relatively modest cost, a testing program 
could be put quickly into place. The Committee urges the FAA 
and the Department of Transportation to consider supporting 
this work.
    Indeed, research and testing in the aviation security area 
is of critical importance to ensure the integrity of our 
national aviation system. While there are measures that can 
serve to address the issues in the near term, a sustained 
program of research and development is essential. The committee 
notes that at least one leading aeronautical university is 
creating an archive and database of academic and technical 
literature focusing exclusively on aviation safety and 
security. Any new research should begin with a survey of the 
results of past work. A comprehensive online archive would be 
very helpful in doing that. Therefore, the committee urges the 
FAA and the Department of Transportation to take the necessary 
steps to ensure the prompt completion of all promising archival 
work.
    H.R. 3347 provides economic relief to general aviation 
entities and their employees that have suffered substantial 
economic injury as a result of the terrorist attacks against 
the United States on September 11, 2001.
    It provides emergency relief in the form of $2.5 billion in 
grants to cover direct and incremental losses from the airspace 
restrictions on general aviation. It provides the President 
with the power to establish priority for compensation to a 
general aviation business based on the length of time that 
business has been unable to operate.
    H.R. 3347 also provides loan guarantees to help general 
aviation enterprises secure private financing that had been 
available prior to the attacks of September 11th and it extends 
the War Risk Insurance program to include general aviation.
    With respect to employees, the reported bill compensates 
employees of general aviation entities receiving assistance 
under the Act who lost their jobs (other than for cause) during 
the period between September 11 and December 31, 2001 as a 
result of the terrorist attacks, including reimbursement for 
lost compensation and increased costs of health insurance for 
90 days.
    The reported bill generally requires employers who take 
advantage of the loan guarantee program to continue, for a 
period of six months, any health coverage now in place; pay the 
costs of health insurance for current employees who lost their 
coverage since September 11 as a result of the employer's 
response to the economic conditions arising out of the 
terrorists' attacks; and pay the costs of health insurance for 
former employees for whom health insurance was provided on 
September 11, 2001, but who lost coverage and jobs since the 
terrorists' attacks.

                       Summary of the Legislation


Sec. 1.--Short title

    This Act may be cited as the ``General Aviation Industry 
Reparations Act of 2002''.

Sec. 2.--General aviation industry reparations

    Paragraph 2(a)(1) directs the President to issue Federal 
credit instruments that in the aggregate do not exceed 
$3,000,000,000 to general aviation entities for economic losses 
that resulted from the terrorist attack on September 11, 2001.
    Paragraph 2(a)(2) directs the President to provide direct 
compensation in the aggregate of $2,500,000,000 to general 
aviation entities and their employees for direct losses and 
incremental losses that resulted from the terrorist attack on 
September 11, 2001. Incremental losses for qualified employees 
include healthcare costs that would have otherwise been covered 
by the employer or healthcare benefits in place on September 
11, 2001.
    Subparagraph 2(a)(2)(D) makes direct losses incurred by 
general aviation entities as a result of flight restrictions 
for a period of one week or more imposed by the Secretary 
before the date of enactment of this Act eligible for 
compensation. This includes direct losses that result from 
airspace restrictions imposed during the 2002 Winter Olympic 
Games in Salt Lake City, Utah.
    Subsection 2(b) reduces the aggregate amount of Federal 
Credit Instruments that can be issued under the Air 
Transportation Safety and System Stabilization Act (P.L. 107-
42) by the amount of Federal credit instruments issued under 
this Act.
    Subsection 2(c) designates the amount of budget authority 
and outlays created by this bill as an emergency requirement 
pursuant to the Balanced Budget and Emergency Deficit Control 
Act of 1985. Such amounts are only available at the request of 
the President.

Sec. 3.--Stabilization Board

    Paragraph 3(a)(1) requires general aviation entities 
seeking a Federal Credit Instrument to submit to the Air 
Transportation Stabilization Board an operating plan and a 
financial plan covering the period of time the Federal credit 
instrument will be in effect. Such plans shall demonstrate the 
ability of the entity to continue operations as an ongoing 
general aviation entity.
    Paragraph 3(a)(2) outlines the conditions under which the 
Board, in consultation with the Small Business Administration, 
may enter an agreement with 1 or more obligors to issue Federal 
credit instruments.
    Subsection 3(b) provides the Board the authority to set 
such terms and limitations on Federal credit instruments as the 
Board determines appropriate. The Board may issue a Federal 
credit instrument to pay all or part of any of the principal 
and interest on a loan or other debt obligations.
    Paragraph 3(c)(1) directs the Board to the extent feasible 
and practicable to ensure that the Federal government is 
compensated for the risk assumed in making guarantees under 
this Act.
    Paragraph 3(c)(2) authorized the Board to enter into 
contracts under which the Government would participate in the 
gains of the participating entity through the use of warrants, 
stocks, common or preferred stock, or other appropriate equity 
instruments.

Sec. 4.--Special rules for compensation

    Subsection 4(a) limits the amount of compensation payable 
to a general aviation entity to not more than the amount of 
losses that such entity demonstrates using sworn financial 
statements to the satisfaction of the President. The Secretary 
of Transportation and the Comptroller General of the United 
States may audit such statements.
    Subsection 4(b) directs the President to give priority for 
direct compensation to entities that have been shutdown the 
longest and those that qualify as a small business.
    Subsection 4(c) recognizes that the amount provided by this 
Act may not be enough to compensate all general aviation 
applicants. Accordingly, the President is authorized to provide 
compensation in an amount less than the amount of losses 
incurred by a general aviation entity to ensure that 
compensation is distributed equitably among general aviation 
entities.
    Under subsection 4(e), if the President provides 
compensation to a general aviation entity, the President must 
also provide compensation to the qualified employees of such 
general aviation entity.

Sec. 5.--Limitation on certain employee compensation

    This section limits Federal credit instruments and 
compensation to those general aviation entities that enter into 
legally binding agreements ensuring that no officer or employee 
whose total compensation exceeded $300,000 in the year 2000 
will receive compensation during any 12-month period that 
exceeds the total compensation received in calendar year 2000. 
It also limits severance pay for such officers and employees to 
twice the maximum total compensation received in 2000.

Sec. 6.--Domestic insurance and reimbursement of insurance costs.

    Section 6 extends the provisions of the War Risk Insurance 
Program to cover general aviation entities.

Sec. 7.--Report

    Section 7 requires the President to transmit not later than 
180 days following enactment of this Act a report on the amount 
of assistance provided to each general aviation entity and the 
financial status of such entity.

Sec. 8.--Health insurance

    Under subsection 8(a), the President may only issue a 
Federal credit instrument to a general aviation entity that 
enters into a legally binding agreement to provide for costs 
attributable to providing health insurance coverage and for 
maintenance of current health benefits and contributions.
    Subsection 8(b) requires such general aviation entity to 
provide healthcare coverage to former employees who had 
coverage on September 11, 2001, and lost their jobs between 
September 11, 2001 and the date the Federal credit instrument 
is issued as a result of the terrorist attacks of September 11, 
2001.
    Subsection 8(c) requires such general aviation entity to 
provide healthcare coverage to current employees who had 
healthcare coverage on September 11, 2001 and lost such 
coverage between September 11, 2001 and the date the Federal 
credit instrument is issued as a response to economic 
conditions that resulted from the terrorist attacks of 
September 11, 2001.
    Subsection 8(d) requires such general aviation entity to 
maintain healthcare benefits for employees employed on the date 
the Federal credit instrument is issued at the level of such 
benefits in effect on February 27, 2002.
    Paragraph 8(e)(1) limits the obligation of such general 
aviation entity under subsections 8(b), 8(c) and 8(d) to the 
six-month period after the Federal credit instrument is issued.
    Under paragraph 8(e)(2), subsections 8(b), 8(c) and 8(d) do 
not apply to an employee who lost a job for cause.
    Under paragraph 8(e)(3), subsection 8(b) does not apply to 
an employee after such employee receives full-time, non-
seasonal employment.
    Subsection 8(f) defines ``health insurance coverage'' to 
have the meaning given in section 733(b)(1) of the Employee 
Retirement Income Security Act of 1974.

Sec. 9.--Definitions.

    Subsection 9(a) defines the term ``Federal credit 
instrument.''
    Subsection 9(b) defines the term ``general aviation 
entity,'' This definition includes, but is not limited to, 
fixed base operators, flight schools, manufacturers of general 
aviation aircraft and products, persons engaged in nonscheduled 
aviation enterprises, general aviation airports, and general 
aviation independent contractors. General aviation independent 
contractors include employees of general aviation entities that 
provide services to such entity on a contract basis.
    Subsection 9(c) clarifies that the term incremental losses 
does not include any loss the President determines would have 
been incurred if the terrorist attacks on the United States had 
not occurred.

                    Hearings and Legislative History

    On September 25, 2001, the Aviation Subcommittee held a 
hearing on the economic impact of the September 11th attack on 
general aviation. On October 17, 2001 the Aviation Subcommittee 
held a hearing on prohibitions on general aviation activity in 
Enhanced Class B airspace.

                        Committee Consideration

    On February 27, 2002, the Full Committee met in open 
session and ordered H.R. 3347 reported with amendments, by 
voice vote with a quorum present. There were no recorded votes 
taken during Committee consideration of H.R. 3347.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each rollcall vote on a motion to 
report and on any amendment offered to the measure or matter, 
and the names of those members voting for and against. There 
were no recorded votes taken in connection with ordering H.R. 
3347 reported. A motion by Mr. Mica to order H.R. 3347 
favorably reported to the House with amendment was agreed to by 
voice vote, a quorum being present.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          Cost of Legislation

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    Compliance With House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 3347.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
3347 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 19, 2002.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3347, the General 
Aviation Industry Reparations Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark Hadley.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3347--General Aviation Industry Reparations Act of 2002

    Summary: H.R. 3347 would provide financial assistance to 
general aviation entities (including airports, flight schools, 
manufacturers, crop dusters, and fuel suppliers) and their 
employees. This aid would include $2.5 billion in grants, up to 
$3 billion in direct loans or loan guarantees, and 
reimbursement for certain increases in insurance premiums that 
have occurred since the terrorist attacks on September 11th. 
The bill would require the President to submit a report, within 
180 days of enactment, on the amount of assistance provided to 
each general aviation entity and its financial status.
    Based on information from the Federal Aviation 
Administration (FAA) and representatives of the general 
aviation industry, CBO estimates that enacting H.R. 3347 would 
cost about $2.7 billion over the 2002-2012 period. Because H.R. 
3347 would designate all such costs as emergency requirements, 
pay-as-you-go procedures would not apply.
    H.R. 3347 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on state, local, or tribal governments. The bill could 
benefit certain general aviation airports by providing loan 
guarantees and compensation for losses incurred as a result of 
the September 11 attacks; any costs to participating entities 
would be incurred voluntarily as a condition of federal 
assistance. This bill contains no new private-sector mandates 
as defined in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3347 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2002      2003      2004      2005      2006      2007
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Grants to general aviation businesses, airports, and
 employees:
    Budget authority................................     2,500         0         0         0         0         0
    Estimated outlays...............................       250     1,250       750       250         0         0
Credit assistance to general aviation business and
 airports:
    Estimated budget authority......................        30       135         2         2         2         2
    Estimated outlays...............................        30       135         2         2         2         2
Total spending under H.R. 3347:
    Estimated budget authority......................     2,530       135         2         2         2         2
    Estimated outlays...............................       280     1,385       752       252         2         2
----------------------------------------------------------------------------------------------------------------

Basis of estimate

    The financial assistance authorized by H.R. 3347 would be 
available without further appropriation and would be designated 
by Congress as emergency spending. Agencies could not obligate 
the money, however, unless the President also designates the 
spending as an emergency requirement. For this estimate, CBO 
assumes that the bill will be enacted by July 1, 2002, and that 
the President will make the emergency designation. We estimate 
that enacting H.R. 3347 would increase direct spending by 
nearly $2.7 billion over the 2002-2007 period.
            Grants
    Under the bill, the President would be authorized to 
provide up to $2.5 billion in grants to general aviation 
entities as compensation for losses sustained as a direct 
result of federal orders that grounded flights after the 
terrorist attacks on September 11, 2001. General aviation 
entities, however, could only be compensated for losses 
sustained between September 11, 2001, and December 31, 2001. 
Such losses would include the wages and insurance benefits of 
employees who lost their jobs during this period as a result of 
federal regulations that halted flights.
    Based on information from the FAA and industry 
associations, CBO estimates that about 50,000 businesses and 
airports would apply for compensation under H.R. 3347 and would 
be able to claim losses totaling at least $3 billion--more than 
would be provided under the bill. The bill would require the 
President to compensate the employees of any business that 
receives federal compensation grants for any individual losses 
(wages and benefits). The bill would direct the President to 
give priority for compensation to small businesses based on the 
length of time that the entity was unable to operate because of 
federal regulations. CBO expects that gathering information 
from the affected entities and disbursing funds equitably would 
take a few years and that the funds would be disbursed by the 
end of fiscal year 2005.
            Federal credit assistance
    H.R. 3347 would allow the Air Transportation Stabilization 
Board, consisting of the Secretary of Transportation, the 
Secretary of the Treasury, and the Chairman of the Federal 
Reserve Board, to provide loan guarantees or direct loans worth 
up to $3 billion to general aviation entities. The board would 
be required to ensure that the federal government is 
compensated for the risk of extending this credit assistance, 
and could accept warrants, stock options, or preferred stock in 
order to participate in any financial gains of a borrower.
    Under procedures established by the Federal Credit Reform 
Act, the subsidy cost of a federal direct loan, loan guarantee, 
or line of credit is the estimated long-term cost to the 
government, calculated on a net present value basis. CBO 
estimates that the credit assistance provided under the bill 
would cost about 25 percent of the total amount borrowed and 
that general aviation entities would borrow about $600 million 
of the $3 billion available under the bill. We therefore 
estimate that the subsidy cost of this credit assistance would 
be about $150 million. This estimate is based on information 
about the financial condition of the general aviation industry 
and the cost of loans and guarantees extended by the Small 
Business Administration.
    In evaluating the risk to the government of extending 
credit to the general aviation industry, CBO considered how the 
financial position of general aviation entities would be 
affected by the $2.5 billion in grants under the bill. For this 
estimate, CBO assumes that the Air Transportation Stabilization 
Board would issue federal credit assistance on terms similar to 
the assistance the board provides under current law to U.S. air 
carriers. Specifically, we assume the board would guarantee 
less than 100 percent of the value of the loan and that loans 
would reach maturity within seven years. The board's 
regulations also require borrowers to pay fees that would 
escalate each year the loan is outstanding. Such fees would 
reduce the cost of providing credit assistance. Some entities 
may not withstand their current financial strain, but we expect 
the Air Transportation Stabilization Board would exercise its 
discretion when choosing which entities to assist.
    Based on information from industry associations and the 
cost of credit under H.R. 3347 relative to other private and 
government sources, CBO expects that few general aviation 
entities would seek this credit assistance. Many general 
aviation businesses could receive credit assistance under other 
federal programs on more favorable terms than the rules of the 
board would allow. Many airports are either owned or supported 
by state and local governments, and could obtain more favorable 
financing through public borrowing. Finally, because the bill 
would impose new constraints on general aviation airports and 
businesses that borrow under this program, this federal credit 
assistance may not be attractive to many entities. H.R. 3347 
would require borrowers to pay the costs of up to six months of 
health insurance coverage for current and former employees who 
lost their insurance coverage as a result of the terrorist 
attacks of September 11, 2001. The bill also would require 
entities accepting credit assistance to limit the compensation 
of officers and employees for two years after enactment of H.R. 
3347.
    Because the board would need time to review credit 
applications, we expect it would issue most loans or guarantees 
during fiscal year 2003. The administrative expenses of the 
board would be the highest during those two years. We estimate 
that administering the program would cost about $5 million in 
2002, $10 million in 2003, and $2 million a year for the 
remaining years of the program.
    H.R. 3347 would reduce the amount of loans and loan 
guarantees that the board may issue to air carriers under 
current law by the amount of loans and loan guarantees that it 
issues to general aviation entities under the bill. Based on 
the applications for credit assistance that the board has 
received to date, however, CBO estimates that at least $600 
million will not be used by air carriers. The board, therefore, 
could implement H.R. 3347 without affecting the existing 
program for air carriers.
            Reimbursement of war-risk insurance costs
    H.R. 3347 would expand an existing program to authorize the 
Secretary of Transportation to reimburse general aviation 
entities for increases in insurance premiums that occurred 
since September 11, 2002. This program expires, however, on 
March 22, 2002. For this estimate CBO assumes H.R. 3347 will be 
enacted after that date. Hence, this provision would have no 
cost.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. H.R. 
3347 would designate the amount of new budget authority and 
outlays that would result from the bill as an emergency 
requirement. Thus, the estimated cost of the bill--$2.7 billion 
over the 2002-2012 period--would be exempt from pay-as-you-go 
procedures.
    Estimated impact on state, local, and tribal governments: 
H.R. 3347 contains no intergovermental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments. The bill could benefit certain general aviation 
airports by providing loan guarantees and compensation for 
losses incurred as a result of the September 11 attacks; any 
costs to participating entities would be incurred voluntarily 
as a condition of federal assistance.
    Estimated impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal costs: Mark Hadley; impact on 
state, local, and tribal governments: Susan Sieg Tompkins; 
impact on the private sector: Cecil McPherson.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                        Committee Correspondence

                          House of Representatives,
                           Committee on Financial Services,
                                     Washington, DC, March 6, 2002.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure, Rayburn House 
        Office Building, Washington, DC.
    Dear Mr. Chairman: On February 27, 2002, the Committee on 
the Transportation and Infrastructure ordered reported H.R. 
3347, the General Aviation Industry Reparations Act of 2001. As 
you know, the Committee on Financial Services was granted an 
additional referral upon the bill's introduction pursuant to 
the Committee's jurisdiction over financial aid to commerce and 
industry under clause 1(g) of rule X of the Rules of the House 
of Representatives.
    Because of your willingness to consult with the Committee 
on Financial Services regarding this matter and the need to 
move this legislation expeditiously, I will waive consideration 
of the bill by the Financial Services Committee. By agreeing to 
waive its consideration of the bill, the Financial Services 
Committee does not waive its jurisdiction over H.R. 3347. In 
addition, the Committee on Financial Services reserves its 
authority to seek conferees on any provisions of the bill that 
are within its jurisdiction during any House-Senate conference 
that may be convened on this legislation. I ask your commitment 
to support any request by the Committee on Financial Services 
for conferees on H.R. 3347 or related legislation.
    I request that you include this letter and your response as 
part of your committee's report on the bill and the 
Congressional Record during consideration of the legislation on 
the House floor.
    Thank you for your attention to these matters.
            Sincerely,
                                          Michael G. Oxley,
                                                          Chairman.
                                ------                                

                          House of Representatives,
            Committee on Transportation and Infrastructure,
                                     Washington, DC, March 7, 2002.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
Rayburn Building, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter of March 6, 
2002, regarding H.R. 3347, the General Aviation Industry 
Reparations Act of 2001 and for your willingness to waive 
consideration of provisions in the bill that fall within your 
Committee's jurisdiction under House Rules.
    I agree that your waiving consideration of relevant 
provisions of H.R. 3347 does not waive your Committee's 
jurisdiction over the bill. I also acknowledge your right to 
seek conferees on any provisions that are under your 
Committee's jurisdiction during any House-Senate conference on 
H.R. 3347 or similar legislation, and will support your request 
for conferees on such provisions.
    As you request, your letter and this response will be 
included in the committee report on the legislation as well as 
the Congressional Record during consideration on the House 
Floor.
    Thank you for your cooperation in moving this important 
legislation.
            Sincerely,
                                                 Don Young,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                   Committee on the Budget,
                                    Washington, DC, April 11, 2002.
Hon. Dennis J. Hastert,
Speaker, House of Representatives,
The Capitol, Washington, DC.
    Dear Mr. Speaker: On February 27, 2002 the Committee on 
Transportation and Infrastructure ordered reported H.R. 3347, 
the General Aviation Industry Reparations Act of 2001. At 
introduction, H.R. 3347 was appropriately referred to the 
Committee on the Budget under House Rule X and the Committee's 
jurisdiction over the enforcement of special controls over the 
Federal budget.
    I do not intend to schedule a committee meeting to consider 
H.R. 3347; and will support your waiver of our consideration 
pursuant to House Rule XII. By agreeing to waive consideration 
of H.R. 3347, the Committee does not waive its jurisdiction 
over H.R. 3347. In addition, the Committee on the Budget 
reserves its authority to seek conferees on H.R. 3347 or a 
similar Senate bill with respect to provisions that are within 
the committee's jurisdiction.
    Thank you for your attention to these matters.
            Sincerely,
                                                Jim Nussle,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                   Committee on the Budget,
                                    Washington, DC, April 11, 2002.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure, Rayburn House 
        Office Building, Washington, DC.
    Dear Mr. Young: On February 27, 2002 the Committee on 
Transportation and Infrastructure ordered reported H.R. 3347, 
the General Aviation Industry Reparations Act of 2001. At 
introduction, H.R. 3347 was appropriately and additionally 
referred to the Committee on the Budget under House Rule X and 
the Committee's jurisdiction over the enforcement of special 
controls over the Federal budget.
    In order to expedite the consideration of H.R. 3347, I do 
not intend to mark up H.R. 3347. By agreeing to waive 
consideration of H.R. 3347, the committee does not waive its 
jurisdiction or its prerogatives over H.R. 3347. The Committee 
on the Budget reserves its authority to seek conferees on H.R. 
3347 or similar Senate bill with respect to provisions that are 
within the committee's jurisdiction. I ask your commitment to 
support any request by the Committee on the Budget for 
conferees on H.R. 3347.
    Finally, I would ask that you include a copy of our 
exchange of letters on this matter in your Committee Report and 
in the Congressional Record during floor consideration. Thank 
you for your assistance and cooperation in this matter.
            Sincerely,
                                                Jim Nussle,
                                                          Chairman.
                                ------                                

                          House of Representatives,
            Committee on Transportation and Infrastructure,
                                    Washington, DC, April 11, 2002.
Hon. Jim Nussle,
Chairman, Committee on the Budget,
Cannon Building, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter of April 11, 
2002, regarding H.R. 3347, the General Aviation Industry 
Reparations Act of 2001 and for your willingness to waive 
consideration of provisions in the bill that fall within your 
Committee's jurisdiction under House Rules.
    I agree that your waiving consideration of relevant 
provisions of H.R. 3347 does not waive your Committee's 
jurisdiction over the bill. I also acknowledge your right to 
seek conferees on any provisions that are under your 
Committee's jurisdiction during any House-Senate conference on 
H.R. 3347 or similar legislation, and will support your request 
for conferees on such provisions.
    As you request, your letter and this response will be 
included in the committee report on the legislation as well as 
in the Congressional Record during consideration on the House 
Floor.
    Thank you for your cooperation in moving this important 
legislation.
            Sincerely,
                                                 Don Young,
                                                          Chairman.

                   Constitutional Authority Statement

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4.)

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1994 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local or 
tribal law. The Committee states that H.R. 3347 does not 
preempt any state, local or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act. (Public Law 
104-1.)

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

             SECTION 44302 OF TITLE 49, UNITED STATES CODE


Sec. 44302. General authority

  (a) * * *
  (b) Reimbursement of Insurance Cost Increases.--
          (1) In general.--The Secretary may reimburse an air 
        carrier or general aviation entity (as defined in 
        section 3 of the General Aviation Industry Reparations 
        Act of 2002) for the increase in the cost of insurance, 
        with respect to a premium for coverage ending before 
        October 1, 2002, against loss or damage arising out of 
        any risk from the operation of an American aircraft 
        over the insurance premium that was in effect for a 
        comparable operation during the period beginning 
        September 4, 2001, and ending September 10, 2001, as 
        the Secretary may determine. Such reimbursement is 
        subject to subsections (a)(2), (c), and (d) of this 
        section and to section 44303.

           *       *       *       *       *       *       *

          (4) Termination of authority.--The authority to 
        reimburse air carriers and general aviation entities 
        under this subsection shall expire 180 days after the 
        date of enactment of this paragraph.
  (c) Presidential Approval.--The Secretary may provide 
insurance or reinsurance under subsection (a) of this section, 
or reimburse an air carrier or general aviation entity (as 
defined in section 3 of the General Aviation Industry 
Reparations Act of 2002) under subsection (b) of this section, 
only with the approval of the President. The President may 
approve the insurance or reinsurance or the reimbursement only 
after deciding that the continued operation of the American 
aircraft or foreign-flag aircraft to be insured or reinsured is 
necessary in the interest of air commerce or national security 
or to carry out the foreign policy of the United States 
Government.
  (d) Consultation.--The President may require the Secretary to 
consult with interested departments, agencies, and 
instrumentalities of the Government before providing insurance 
or reinsurance or reimbursing an air carrier or general 
aviation entity (as defined in section 3 of the General 
Aviation Industry Reparations Act of 2002) under this chapter.

           *       *       *       *       *       *       *