FILE h2036.ih
          HR 2036 IH
          105th CONGRESS
          1st Session
          To amend chapter 443 of title 49, United States Code, to extend the
          authorization of the aviation insurance program, and for other
          purposes.
                             IN THE HOUSE OF REPRESENTATIVES
                                      June 25, 1997
          Mr. SHUSTER (for himself, Mr. DUNCAN, Mr. OBERSTAR, and Mr.
              LIPINSKI) introduced the following bill; which was referred to
              the Committee on Transportation and Infrastructure
                                         A BILL
          To amend chapter 443 of title 49, United States Code, to extend the
          authorization of the aviation insurance program, and for other
          purposes.
              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 `Aviation Insurance Reauthorization
          Act of 1997'.
          SEC. 2. VALUATION OF AIRCRAFT.
            Section 44302(a)(2) of title 49, United States Code, is amended 
          by striking `as determined by the Secretary' and inserting `as
          determined by the Secretary in accordance with reasonable business
          practices in the commercial aviation insurance industry'.
          SEC. 3. EFFECT OF INDEMNITY AGREEMENTS.
            Section 44305(b) of title 49, United States Code, is amended by
          adding at the end the following: `If such an agreement is
          countersigned by the President, the agreement shall constitute, for
          purposes of section 44302(b), a determination that continuation of
          the aircraft operations to which the agreement applies is necessary
          to carry out the foreign policy of the United States.'.
          SEC. 4. BORROWING AUTHORITY.
            (a) IN GENERAL- Section 44307 of title 49, United States Code, is
          amended by adding at the end the following:
            `(e) BORROWING- 
                `(1) ISSUANCE OF OBLIGATIONS- Subject to the provisions of
              this subsection, the Administrator of the Federal Aviation
              Administration may issue and sell such notes or other
              obligations to the Secretary of the Treasury as the
              Administrator determines are necessary to provide funds to 
              carry out this chapter.
                `(2) TERMS AND CONDITIONS- Obligations under this subsection
              shall be issued in the forms and denominations, bearing the
              maturities, and subject to the terms and conditions that the
              Secretary of the Treasury may prescribe.
                `(3) NOTIFICATION OF CONGRESS- At least 25 days before the
              Administrator intends to issue and sell a note or other
              obligation under paragraph (1), the Administrator shall notify,
              in writing, the Senate and House of Representatives of such
              intention and the dollar amount of such note or obligation.
                `(4) PURCHASE OF OBLIGATIONS- The Secretary of the Treasury
              shall purchase any obligations issued under this subsection. 
              For such purpose, the Secretary of the Treasury may use as a
              public debt transaction the proceeds from the sale of any
              securities issued under the Second Liberty Bond Act. The
              purposes for which securities may be issued under such Act are
              extended to include any purchase of obligations issued under
              this subsection.
                `(5) RESALE AUTHORITY- The Secretary of the Treasury may sell
              any obligations issued under this subsection at the times and
              prices and upon the terms and conditions that the Secretary of
              the Treasury shall determine.
                `(6) TREATMENT- All purchases, redemptions, and sales of
              obligations under this subsection by the Secretary of the
              Treasury shall be treated as public debt transactions of the
              United States.'.
            (b) AUTHORIZATION OF APPROPRIATIONS- Section 44307(a) of such
          title is amended by striking paragraph (2) and inserting the
          following:
                `(2) AUTHORIZATION OF APPROPRIATIONS- Necessary amounts to
              carry out this chapter, including amounts required to pay the
              interest accrued on, or to repay the principal of, obligations
              issued under subsection (e), may be appropriated to the fund.
                `(3) DEPOSIT IN FUND- The amounts appropriated and other
              amounts received, including the proceeds of the sale of
              obligations issued under subsection (e), shall be deposited in
              the fund.'.
            (c) CONFORMING AMENDMENT- Section 44307(d) of such title is
          amended by adding at the end the following: `This subsection does
          not apply to amounts appropriated for paying interest accrued on, 
          or for repaying the principal of, obligations issued under
          subsection (e).'.
          SEC. 5. ARBITRATION AUTHORITY.
            (a) AUTHORIZATION OF BINDING ARBITRATION- Section 44308(b)(1) of
          title 49, United States Code, is amended by inserting after the
          second sentence the following: `Any such policy may authorize the
          binding arbitration of claims made thereunder in such manner as may
          be agreed to by the Secretary and any commercial insurer that may 
          be responsible for any part of a loss to which such policy relates.'.
            (b) AUTHORITY TO PAY ARBITRATION AWARD- Section 44308(b)(2) of
          such title is amended--
                (1) by striking `and' at the end of subparagraph (A);
                (2) by redesignating subparagraph (B) as subparagraph (C); and
                (3) by inserting after subparagraph (A) the following:
                `(B) pay the amount of a binding arbitration award made under
              paragraph (1); and'.
          SEC. 6. EXTENSION OF PROGRAM.
            Section 44310 of title 49, United States Code, is amended by
          striking `1997' and inserting `2002'.