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108th Congress 
 1st Session                     SENATE                          Report
                                                                 108-38
_______________________________________________________________________
 
                                                        Calendar No. 76


                   AIR CARGO SECURITY IMPROVEMENT ACT

                               __________

                              R E P O R T

                                 of the

                  COMMITTEE ON COMMERCE, SCIENCE, AND

                             TRANSPORTATION

                                   on

                                 S. 165




                 April 24, 2003.--Ordered to be printed

  Filed, under authority of the order of the Senate of April 11, 2003
?

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred eighth congress
                             first session

                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA J. SNOWE, Maine              JOHN F. KERRY, Massachusetts
SAM BROWNBACK, Kansas                JOHN B. BREAUX, Louisiana
GORDON SMITH, Oregon                 BYRON L. DORGAN, North Dakota
PETER G. FITZGERALD, Illinois        RON WYDEN, Oregon
JOHN ENSIGN, Nevada                  BARBARA BOXER, California
GEORGE ALLEN, Virginia               BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire        MARIA CANTWELL, Washington
                                     FRANK LAUTENBERG, New Jersey
           Jeanne Bumpus, Staff Director and General Counsel
                   Ann Begeman, Deputy Staff Director
                  Robert W. Chamberlin, Chief Counsel
               Kevin D. Kayes, Democratic Staff Director
                Gregg Elias, Democratic General Counsel

                                  (ii)
                                                        Calendar No. 76
108th Congress                                                   Report
                                 SENATE
 1st Session                                                     108-38

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




                   AIR CARGO SECURITY IMPROVEMENT ACT

                                _______
                                

                 April 24, 2003.--Ordered to be printed

Filed, under the authority of the order of the Senate of April 11, 2003

                                _______
                                

       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 165]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 165) ``A Bill To improve air 
cargo security'', having considered the same, reports favorably 
thereon with amendments and recommends that the bill (as 
amended) do pass.

                          Purpose of the Bill

  The purpose of the Air Cargo Security Improvement Act, S. 
165, as reported, is to enhance the security of cargo 
transported by air, particularly aboard passenger aircraft.

                          Background and Needs

  On November 16, 2001, Congress passed the Aviation and 
Transportation Security Act (ATSA) in response to the terrorist 
attacks on September 11th of that year. The Act, which was 
signed into law on November 19, 2001, implemented a new regime 
for aviation security and created the Transportation Security 
Administration (TSA) within the Department of Transportation 
(DOT) to oversee security for all modes of transportation. The 
TSA has since been transferred to the Department of Homeland 
Security (DHS). ATSA (P.L. 107-71) contained numerous 
provisions and deadlines designed to increase aviation security 
targeted at the safety and security of airline passengers.
  With respect to the security of air cargo, ATSA contained two 
key provisions. The first dealt with passenger aircraft and 
required that the TSA provide for the screening of all cargo 
and mail that will be carried aboard such aircraft (section 
110). Almost all passenger flights carry cargo alongside 
luggage in the belly of the plane. Such cargo can encompass 
anything from pallets of computer chips to refrigerated cartons 
of chicken. According to a Federal Aviation Administration 
(FAA) estimate, approximately 22 percent of all air cargo 
loaded in the United States in 2000 was carried on passenger 
flights.
  ATSA required that all checked airline bags be screened by 
explosive detection systems by December 31, 2002, which was 
later extended to 2003 for a limited number of airports. A 
similar timetable was not specified for screening cargo.
  The second provision required that a system must be in 
operation as soon as practicable after the date of enactment of 
ATSA (section 10), to screen, inspect, or otherwise ensure the 
security of all cargo that is to be transported in all-cargo 
aircraft .

                 I. ACTIVITY BEFORE SEPTEMBER 11, 2001

  The air cargo system involves numerous participants that all 
require some level of security oversight. Typically, a shipper 
takes packages to an indirect air carrier (IAC, also known as a 
freight forwarder). An IAC is defined as any person or entity, 
excluding an air carrier, that engages indirectly in the 
transportation of property by air, and uses the services of a 
passenger air carrier. This does not include the United States 
Postal Service. The IAC may consolidate packages from many 
shippers into single containers. The IAC then uses trucks, 
either its own or hired, to deliver the bulk freight to air 
carriers for transport.
  Before the attacks of September 11, 2001, the FAA was 
generally responsible for oversight of civil aviation security. 
The bombing of Pan Am Flight 103 in 1988 led to the passage of 
the Aviation Security Improvement Act of 1990, which required 
the FAA to begin an accelerated 18-month research and 
development effort to find an effective explosives detection 
system to screen baggage and cargo. Following the 1996 crashes 
of ValuJet flight 592 and TWA flight 800, the White House 
Commission on Aviation Safety and Security was created to 
assess vulnerabilities of safety and security confronting 
aviation. The Commission recommended that the FAA implement a 
comprehensive plan to address the threat of explosives and 
other threatening objects in cargo and to work with industry to 
develop new initiatives in this endeavor. The FAA subsequently 
created Federal and industry partnerships, the Baseline Working 
Group, and later, the Cargo Working Group, to find ways improve 
air cargo security.
  Under the FAA's program, front-line responsibility for 
screening air cargo fell on two groups: the carriers and IACs. 
Both were required to adopt and carry out FAA-approved security 
programs.
  The key element of FAA's cargo security program before 
September 11, 2001, was the Known Shipper Program. A known 
shipper is essentially one that has an established reputation 
and thus is ``known'' to the industry and to the FAA. This 
program allowed an air carrier or IAC to transport a package 
from a known shipper with no more screening than an examination 
of its exterior. Packages from unknown shippers would be 
screened by X-ray or physically inspected before being placed 
aboard a passenger aircraft. Under the FAA's cargo security 
program, IACs were not allowed to accept packages from unknown 
shippers. If the IAC does not have an existing relationship 
with the business that seeks to ship goods, it must follow 
established regulations to ensure the company is a trustworthy 
business. The FAA's security oversight and implementation 
responsibility of the Known Shipper Program was transferred 
through ATSA to the TSA.
  Before September 11, 2001, the DOT Inspector General (IG) had 
been conducting tests of cargo security. The IG found that air 
carriers and indirect air carriers were not always complying 
with the FAA's Known Shipper Program, and that the FAA had not 
developed and implemented an adequate policy or oversight 
system to ensure compliance.

                  II. ACTIONS SINCE SEPTEMBER 11, 2001

  A number of important changes were implemented after 
September 11, 2001, regarding the shipment of cargo on 
passenger air carriers. These changes included the requirement 
that only cargo from known shippers could be accepted on 
passenger air carriers and all cargo from unknown shippers and 
mail weighing more than 16 ounces had to be diverted to all-
cargo air carriers.
  The Known Shipper Program continues to be TSA's primary means 
of compliance with ATSA screening mandates today. According to 
the agency, it has strengthened the process through which a 
shipper becomes ``known''. The TSA has developed a national 
database of known shippers and is re-validating every business 
in the known shipper program.
  Many of the other changes implemented by TSA are sensitive or 
classified information.

                   III. AIR CARGO ISSUES AND CONCERNS

  The IG has expressed some concerns that the TSA's cargo 
security program is continuing to rely on the Known Shipper 
Program, which has weaknesses, and that very little cargo is 
actually screened. The IG believes that TSA must reevaluate its 
program to determine whether current procedures should be 
retained, identify new principles and controls that should be 
added, and develop a strategic plan to screen all cargo. The IG 
also is recommending that, until screening of all cargo is 
feasible, TSA develop and implement a plan for random screening 
of cargo using x-ray, canines, or explosives detection 
equipment. In addition, the IG advocates a requirement that a 
provider of cargo transportation lose its certification when 
TSA inspections and testing have continuously found the 
provider in noncompliance with cargo security requirements.
  The size and nature of air cargo can vary widely. Airlines 
are financially dependent on cargo, which carries higher profit 
margins than passenger traffic. One of the key problems with 
any attempt to screen all cargo on passenger aircraft at this 
time is that any type of physical inspection or electronic 
screening would be extremely expensive and time-consuming. Some 
industry observers believe that any changes causing additional 
expense or delay to the air cargo system could cause widespread 
disruption to United States businesses, which have grown 
dependent on moving goods rapidly, as well as creating further 
financial difficulties for the troubled United States airline 
industry.

                         Summary of Provisions

  S. 165 would provide for several steps to improve the 
security of air cargo, particularly that which is carried 
aboard passenger aircraft. The TSA would be required to develop 
a strategic plan to ensure that all air cargo is screened, 
inspected, or otherwise made secure. TSA also would be required 
to develop a system for the regular inspection of air cargo 
shipping facilities. A database of known shippers would be 
established in order to bolster the Known Shipper Program. 
Indirect air carriers could have their certificates revoked if 
TSA finds that they are not adhering to security laws or 
regulations. The existing Federal security program for indirect 
air carriers would be reviewed and assessed for possible 
improvements. TSA would develop a security training program for 
persons who handle air cargo. All-cargo carriers would be 
required to develop security plans that would be subject to 
approval by the TSA.
  S. 165 also would alter a provision in ATSA to expand the 
requirements of background checks for alien flight school 
applicants to include all aircraft instead of aircraft weighing 
12,500 pounds or more.
  S. 165 also would require a number of studies to be 
undertaken by the Department of Transportation and the 
Department of Homeland Security.

                          Legislative History

  S. 165 was introduced by Senators Hutchison and Feinstein on 
January 15, 2003. It is nearly identical to a title that was 
contained in legislation passed by the Committee last year, S. 
2949, the Aviation Security Improvement Act, which was 
sponsored by then Chairman Hollings and Ranking Member McCain. 
S. 2949 was passed by unanimous consent in the full Senate on 
November 18, 2002. The cargo-related provision represented a 
consensus based on individual bills introduced by Senators 
Snowe (S. 2656) and Hutchison (S. 2668) during the second 
session of the 107th Congress.
  A number of amendments to S. 165 were adopted during the 
Committee's Executive Session on March 13, 2003, before it was 
reported favorably out of the Senate Committee on Commerce, 
Science, and Transportation. Senator Wyden offered an amendment 
requiring a report on the proposed Computer Assisted Passenger 
Pre-Screening System (CAPPS II) and its impact upon privacy and 
civil liberties. Senator Boxer offered several amendments, 
including requiring the issuance of guidelines for detecting 
false identification at airports, evaluating blast-resistant 
cargo containers, reviewing how to best defend turbo and jet 
passenger aircraft from Man-Portable Air Defense Systems 
(MANPADS), and allowing cargo pilots to participate in the 
Federal Flight Deck Officers program. Senator Nelson offered an 
amendment requiring background checks of alien flight school 
applicants, without regard to the maximum certificated weight 
of the aircraft for which they seek training, and to require a 
report on the effectiveness of this requirement. All of the 
amendments were agreed to by voice vote. Many of these issues 
were included in S. 2949.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                                    April 16, 2003.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed estimate for S. 165, the Air Cargo 
Security Improvement Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mark Hadley 
and Ken Johnson.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 165--Air Cargo Security Improvement Act

    Summary: S. 165 would impose new duties on the 
Transportation Security Administration (TSA) within the 
Department of Homeland Security. The bill would require the TSA 
to regularly inspect air shipping facilities, expand the 
Federal Flight Deck Officer Program by allowing pilots of air 
cargo aircraft to be armed, establish an industry-wide database 
of cargo shippers, and create a security training program for 
air cargo handlers.
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing S. 165 would cost $417 million over 
the 2004-2008 period. Enacting S. 165 would not affect direct 
spending or revenues.
    S. 165 would allow eligible cargo pilots, regardless of 
state laws, to carry firearms within and across state borders 
and would protect those pilots and air carriers from liability 
for certain actions. These provisions would expand existing 
intergovernmental mandates as defined in the Unfunded Mandates 
Reform Act (UMRA). CBO estimates, however, that these 
provisions would impose no costs on state, local, or tribal 
governments. Thus, new mandate costs would not exceed the 
threshold established by that act ($59 million in 2003, 
adjusted annually for inflation). The remaining provisions of 
the bill contain no intergovernmental mandates.
    S. 165 would impose private-sector mandates as defined in 
UMRA on carriers that transport cargo and facilities that 
provide flight training to foreign candidates. The cost to 
comply with those mandates would depend on the standards to be 
developed after enactment. However, based on information on 
current industry practices from the TSA and industry 
representatives, CBO expects that the costs to comply with the 
mandates would not exceed the annual threshold established by 
UMRA for private-sector mandates ($117 million in 2003, 
adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 165 is shown in the following table. The 
costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated authorization level......................................       80       83       86       89       92
Estimated outlays..................................................       68       83       85       89       92
----------------------------------------------------------------------------------------------------------------

Basis of estimate

    CBO estimates implementing S. 165 would cost $417 million 
over the 2004-2008 period. A description of the costs in 
provided below. For this estimate, CBO assumes that S. 165 will 
be enacted by the end of fiscal year 2003 and that the 
necessary amounts will be appropriated for each year. We also 
assume that these appropriations would be adjusted to reflect 
anticipated inflation for each year. The estimated costs are 
based on information from the Transportation Security 
Administration and the Air Line Pilots Association.
            Inspection of air shipping facilities and training cargo 
                    handlers
    S. 165 would require the TSA to establish a system for 
regular inspections of shipping facilities that handle air 
cargo to ensure that appropriate security protocols are 
observed. Under current law, the TSA employs about 50 cargo 
security inspectors. To inspect every air cargo facility once a 
year, TSA estimates that it would need to hire 500 inspectors. 
CBO estimates that each inspector would cost about $120,000 
each year, including the cost of training and supervision. 
Hence, CBO estimates that this provision would cost about $50 
million in 2004 and about $290 million over the 2004-2008 
period. The bill also would require the TSA to create a 
security training program for air cargo handlers. Based on 
information from the TSA, CBO estimates that creating such a 
program would cost about $250,000.
            Arming cargo pilots
    CBO estimates that TSA would need about $16 million in 2004 
and $83 million over the 2004-2008 period to arm and equip 
pilots of cargo aircraft. Under current law, the TSA trains and 
equips pilots on passenger aircraft to carry firearms as 
federal flight deck officers. The bill would expand that 
program to include pilots of cargo aircraft. Based on 
information from the Air Line Pilots Association, CBO estimates 
that about 25 percent of the 8,000 active cargo pilots would 
apply and qualify for the program. CBO expects that the number 
of participants in the program would remain relatively steady 
over time as pilots retire who are replaced by new 
participants.
    We estimate that the program would spend an average of 
about $8,000 for each federal flight deck officer, including 
the cost of weapons, ammunition, training, and travel. Because 
all pilots would receive updated training and equipment, such 
costs would continue each year. CBO estimates that it would 
cost an additional $500,000 each year to maintain a staff of 
about six people to manage the expanded program.
            Database of cargo shippers
    S. 165 would require the TSA to establish an industry-wide 
database of air cargo shippers that use passenger aircraft. 
More than 50 air carriers transport air cargo on passenger 
aircraft. The largest carriers of air cargo conduct business 
with nearly 2 million shippers per day. Because the population 
of shippers would change each year, the costs of maintaining a 
database of known shippers would be ongoing. Based on the 
number of shippers that would need to be tracked and the cost 
of private systems to track shippers, CBO estimates that 
maintaining an industry-wide database of known shippers would 
cost about $10 million dollars a year.
    Estimated impact on state, local, and tribal governments: 
S. 165 would amend the Homeland Security Act of 2002 to expand 
participation in the federal flight deck program. The bill 
would permit deputized cargo pilots to carry firearms into any 
state, regardless of state firearm laws, and would extend 
liability protection to eligible carriers and cargo pilots for 
damages resulting from the pilot's defense of the aircraft 
(with some exceptions). The increase in the type of pilots 
eligible to carry firearms and afforded the liability 
protection are expansions of existing mandates as defined in 
UMRA because they expand the scope of preemptions of state 
firearm and liability laws. CBO estimates, however, that such 
preemptions would not affect state budgets because, while they 
would limit the application of state law, they would impose no 
duties on states that would result in additional spending.
    The remaining provisions of S. 165 contain no 
intergovernmental mandates as defined in UMRA. However, 
airports could be indirectly affected by provisions that would 
authorize TSA to install machinery and systems to enhance 
security. For example, airports might need to give up space to 
accommodate security improvements. CBO cannot predict exactly 
how airports would be affected because regulations regarding 
such enhancements have yet to be implemented. However, any 
resulting costs likely would not be large.
    Estimated impact on the private sector: S. 165 would impose 
private-sector mandates as defined in UMRA on air carriers that 
transport cargo and on facilities that provide flight training 
to foreign candidates. The costs to comply with those mandates 
would depend on standards to be developed after enactment. 
However, based on information on current industry practices 
from the TSA and industry representatives, CBO expects that the 
costs to comply with the mandates would not exceed the annual 
threshold established by UMRA for private-sector mandates ($117 
million in 2003, adjusted annually for inflation).
    S. 165 would require air carriers that operate all-cargo 
aircraft to establish and implement a security plan. The 
requirements in the security plan would be based on standards 
to be set by the Under Secretary of Transportation for 
Security. According to industry representatives, many 
businesses have already undertaken several measures to upgrade 
security. To the extent that future security regulations mirror 
those measures, the industry would not bear substantial 
additional costs associated with the mandate. Based on 
information on industry practices from the TSA and 
representatives for air carriers transporting cargo, CBO 
expects that the costs of compliance would not be great.
    Current law requires facilities that provide flight 
training to submit certain information to the Attorney General 
on foreign candidates requesting initial training to operate 
aircraft weighing 12,500 pounds or more. S. 165 would require 
such training facilities to submit that information on foreign 
candidates requesting initial training on any aircraft, 
regardless of size. Based on information from the Department of 
Justice and representatives of flight training facilities, CBO 
estimates that the incremental cost to comply with this mandate 
would be under $2 million annually.
    Estimate prepared by: Federal costs: Mark Hadley and Ken 
Johnson; impact on state, local, and tribal governments: Greg 
Waring; impact on the private sector: Jean Talarico.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

  S. 165 is intended to improve aviation security by making 
modifications to P.L. 107-71, the Aviation and Transportation 
Security Act (ATSA). The bill affects TSA and other entities 
already subject to TSA rules and regulations, and therefore the 
number of persons covered should be consistent with the current 
levels of individuals impacted under the provisions that are 
addressed in the bill.

                            ECONOMIC IMPACT

  S. 165 is not expected to have an adverse impact on the 
nation's economy. It is anticipated that Sections 2 through 6 
would have positive economic impacts to their respective areas, 
and should provide significant support to the aviation 
industry. The bill addresses cargo security and would authorize 
the necessary funding to establish a system that ensures all 
air cargo is secure by requiring TSA and the air cargo industry 
to take steps to protect the system.

                                PRIVACY

  S. 165 would have minimal effect on the privacy rights of 
individuals, but a provision on identification training raises 
the issue of a person proving their identity, potentially with 
the aid of technology. The use of biometrics and other 
identifiers raise a number of questions that need to be 
addressed by TSA to ensure that the privacy rights of 
individuals are protected. Senator Wyden's provision is 
intended to ensure privacy for passenger screening.

                               PAPERWORK

  The Committee does not anticipate a major increase in 
paperwork burdens resulting from the passage of this 
legislation. In those areas where the bill does require 
additional paperwork, it is aimed at improving the security of 
the national air transportation system. S.165 would require the 
establishment of a database to improve the system by which 
known shippers of cargo are identified, and would require 
reports to Congress on several security matters addressed by 
other provisions.

                      Section-by-Section Analysis


Section 1. Short title

  Section 1 states the short title of the bill as the ``Air 
Cargo Security Improvement Act.''.

Section 2. Inspection of cargo aboard passenger aircraft

  Section 2 instructs the Under Secretary of Transportation for 
Security to establish systems to screen, inspect, or otherwise 
ensure the security of all cargo that is to be transported in 
passenger aircraft operated by an air carrier or foreign air 
carrier in air transportation or intrastate air transportation; 
or all-cargo aircraft in air transportation and intrastate air 
transportation. The Under Secretary is directed to create a 
strategic plan to accomplish this requirement.

Section 3. Regular inspections of air cargo shipping facilities

  Section 3 instructs the Under Secretary of Transportation for 
Security to establish a system for the regular inspection of 
shipping facilities for shipments of cargo transported in air 
transportation or intrastate air transportation to ensure that 
appropriate security controls, systems, and protocols are 
observed, while entering into arrangements with the civil 
aviation authorities, or other appropriate officials, of 
foreign countries to ensure that inspections are conducted on a 
regular basis at shipping facilities for cargo transported in 
air transportation to the United States.
  The Under Secretary may increase the number of inspectors as 
necessary to implement the requirements of title 49. It also 
amends chapter 449 of title49, United States Code, by adding 
``44922. Regular inspections of air cargo shipping 
facilities.''

Section 4. Cargo carried aboard passenger aircraft

  Section 4 requires an industry-wide ``known shipper'' 
database pilot program. Such a program, which is voluntary, is 
currently in use, and this section is intended to reinforce 
TSA's authority to continue and expand such a pilot program and 
use the results to improve the ``known shipper'' program. 
Further, the Under Secretary is directed to conduct random 
audits, investigations, and inspections of indirect air carrier 
facilities to determine if the indirect air carriers are 
meeting the security requirements of this title. The Under 
Secretary may take such actions as may be appropriate to 
promote and ensure compliance with the security standards 
established under this title and shall notify the Secretary of 
Transportation of any indirect air carrier that fails to meet 
such security standards.
  The Secretary, as appropriate, shall suspend or revoke any 
certificate or authority issued to an indirect air carrier 
immediately upon the recommendation of the Under Secretary. Any 
indirect air carrier whose certificate is suspended or revoked 
under this provision may appeal the suspension or revocation in 
accordance with procedures established under this title for the 
appeal of suspensions and revocations.
  In implementing air cargo security requirements under this 
title, the Under Secretary may take into consideration the 
extraordinary air transportation needs of small or isolated 
communities and unique operational characteristics of carriers 
that serve those communities.
  The Under Secretary of Transportation for Security shall 
assess the security aspects of the indirect air carrier 
program, and report the results of the assessment, together 
with any recommendations for necessary modifications of the 
program to the Senate Committee on Commerce, Science, and 
Transportation, and the House of Representatives Committee on 
Transportation and Infrastructure within 45 days after the date 
of enactment of this Act. The Under Secretary may submit the 
report and recommendations in classified form. The Senate 
recommends industry involvement in any assessment of an 
indirect air carrier program.
  The Under Secretary of Transportation for Security shall 
report to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure on random screening, audits, 
and investigations of air cargo security programs based on 
threat assessments and other relevant information. The report 
may be submitted in classified form. There are authorized to be 
appropriated to the Secretary of Transportation such sums as 
may be necessary to carry out this section.

Section 5. Training program for cargo handlers

  Section 5 requires the Under Secretary of Transportation for 
Security to establish a training program for any persons that 
handle air cargo to ensure that the cargo is properly handled 
and safe-guarded from security breaches.

Section 6. Cargo carried aboard all-cargo aircraft

  Section 6 instructs the Under Secretary of Transportation for 
Security to establish a program requiring that air carriers 
operating all-cargo aircraft have an approved plan for the 
security of their air operations area, the cargo placed aboard 
such aircraft, and persons having access to their aircraft on 
the ground or in flight. The plan shall include provisions for 
(1) security of each carrier's air operations areas and cargo 
acceptance areas at the airports served; (2) background 
security checks for all employees with access to the air 
operations area; (3) appropriate training for all employees and 
contractors with security responsibilities; (4) appropriate 
screening of all flight crews and persons transported aboard 
all-cargo aircraft; (5) security procedures for cargo placed on 
all-cargo aircraft; and (6) additional measures deemed 
necessary and appropriate by the Under Secretary.
  The program will be proposed within 90 days after the date of 
enactment of this Act and the Under Secretary of Transportation 
for Security shall distribute the proposed program, on a 
confidential basis, to those air carriers and other employers 
to which the program will apply. Any person to which the 
proposed program is distributed under paragraph (1) may submit 
comments on the proposed program to the Under Secretary not 
more than 60 days after it is received. The Under Secretary of 
Transportation shall issue a final program not later than 45 
days after the last date on which comments may be submitted. 
The final program shall contain time frames for the plans to be 
implemented by each air carrier or employer to which it 
applies.

Section 7. Report on passenger prescreening program

  Section 7 instructs the Secretary of Homeland Security to 
submit a report within 90 days to the Senate Committee on 
Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure 
on the potential impacts of the Transportation Security 
Administration's proposed Computer Assisted Passenger 
Prescreening System (CAPPS II) on United States citizens' 
privacy and civil liberties.

Section 8. Modification requirements regarding training to operate 
        aircraft

  Section 8 extends background checks of alien flight school 
applicants to include all aircraft, regardless of the certified 
weight of the aircraft. The provision does not apply to aliens 
who are qualified and up-to-date with respective certificates 
and ratings recognized by the United States for aircraft with a 
maximum certificated takeoff weight of 12,500 pounds or more of 
classroom training. The bill also requires the TSA and Attorney 
General to jointly submit to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure a report on the 
effectiveness of the new requirement not later than one year 
after the date of enactment.

Section 9. Passenger identification

  Section 9 instructs the Under Secretary of Transportation for 
Security, in consultation with appropriate government and 
private interests, to develop guidelines to provide air 
carriers direction for detecting false or fraudulent 
identification. The guidelines are to be created within 180 
days after the date of enactment. The guidelines must be 
provided to the airlines within 60 days of being issued and 
establish a joint government and industry council to implement 
guidelines. Within one year, the Under Secretary of 
Transportation for Security is to issue a report to Congress on 
these actions.

Section 10. Passenger identification verification

  Section 10 allows the Under Secretary of Transportation for 
Security to establish and carry out a program to require the 
use of identification verification technologies at airports to 
assist in the screening of passengers boarding aircraft.

Section 11. Blast resistant cargo container technology

  Section 11 instructs the Under Secretary of Transportation 
for Security and the Administrator of the FAA to jointly submit 
a report to Congress evaluating blast-resistant cargo container 
technology that may be used to protect against explosives 
placed in passenger luggage and cargo. The report is to be 
submitted within 6 months following the date of enactment of 
this Act.

Section 12. Arming pilots against terrorism

  Section 12 directs the Transportation Security Administration 
to include all-cargo pilots as eligible applicants for the 
Federal Flight Deck Officer program. The Federal Flight Deck 
Officer program was established in the Homeland Security Act of 
2002 (P.L. 107-296).

Section 13. Report on defending aircraft from man-portable air defense 
        systems (shoulder-fired missiles)

  Section 13 instructs the Secretary of Homeland Security to 
submit to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure a report within 90 days on 
how to best defend turbo and jet passenger aircraft from Man-
Portable Air Defense Systems (shoulder-fired missiles).

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                      TITLE 49, UNITED STATES CODE

                    SUBTITLE VII--AVIATION PROGRAMS

                    PART A--AIR COMMERCE AND SAFETY

                          SUBPART III--SAFETY

                         CHAPTER 449--SECURITY

                       SUBCHAPTER I--REQUIREMENTS

Sec. 44901. Screening passengers and property

  (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.]
  (f) Cargo.--
          (1) In general.--The Under Secretary of 
        Transportation for Security shall establish systems to 
        screen, inspect, or otherwise ensure the security of 
        all cargo that is to be transported in--
                  (A) passenger aircraft operated by an air 
                carrier or foreign air carrier in air 
                transportation or intrastate air 
                transportation; or
                  (B) all-cargo aircraft in air transportation 
                and intrastate air transportation.
          (2) Strategic plan.--The Under Secretary shall 
        develop a strategic plan to carry out paragraph (1).
  (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.
  (h) Exemptions and Advising Congress on Regulations.--The 
Under Secretary--
          (1) may exempt from this section air transportation 
        operations, except scheduled passenger operations of an 
        air carrier providing air transportation under a 
        certificate issued under section 41102 of this title or 
        a permit issued under section 41302 of this title; and
          (2) shall advise Congress of a regulation to be 
        prescribed under this section at least 30 days before 
        the effective date of the regulation, unless the Under 
        Secretary decides an emergency exists requiring the 
        regulation to become effective in fewer than 30 days 
        and notifies Congress of that decision.

                             * * * * * * *

Sec.  44921. Federal flight deck officer program

  (a) Establishment.--The Under Secretary of Transportation for 
Security shall establish a program to deputize volunteer pilots 
of air carriers providing [passenger] air transportation or 
intrastate [passenger] air transportation as Federal law 
enforcement officers to defend the flight decks of aircraft of 
such air carriers against acts of criminal violence or air 
piracy. Such officers shall be known as ``Federal flight deck 
officers''.
  (b) Procedural Requirements.--
          (1) In general.--Not later than 3 months after the 
        date of enactment of this section, the Under Secretary 
        shall establish procedural requirements to carry out 
        the program under this section.
          (2) Commencement of program.--Beginning 3 months 
        after the date of enactment of this section, the Under 
        Secretary shall begin the process of training and 
        deputizing pilots who are qualified to be Federal 
        flight deck officers as Federal flight deck officers 
        under the program.
          (3) Issues to be addressed.--The procedural 
        requirements established under paragraph (1) shall 
        address the following issues:
                  (A) The type of firearm to be used by a 
                Federal flight deck officer.
                  (B) The type of ammunition to be used by a 
                Federal flight deck officer.
                  (C) The standards and training needed to 
                qualify and requalify as a Federal flight deck 
                officer.
                  (D) The placement of the firearm of a Federal 
                flight deck officer on board the aircraft to 
                ensure both its security and its ease of 
                retrieval in an emergency.
                  (E) An analysis of the risk of catastrophic 
                failure of an aircraft as a result of the 
                discharge (including an accidental discharge) 
                of a firearm to be used in the program into the 
                avionics, electrical systems, or other 
                sensitive areas of the aircraft.
                  (F) The division of responsibility between 
                pilots in the event of an act of criminal 
                violence or air piracy if only 1 pilot is a 
                Federal flight deck officer and if both pilots 
                are Federal flight deck officers.
                  (G) Procedures for ensuring that the firearm 
                of a Federal flight deck officer does not leave 
                the cockpit if there is a disturbance in the 
                passenger cabin of the aircraft or if the pilot 
                leaves the cockpit for personal reasons.
                  (H) Interaction between a Federal flight deck 
                officer and a Federal air marshal on board the 
                aircraft.
                  (I) The process for selection of pilots to 
                participate in the program based on their 
                fitness to participate in the program, 
                including whether an additional background 
                check should be required beyond that required 
                by section 44936(a)(1).
                  (J) Storage and transportation of firearms 
                between flights, including international 
                flights, to ensure the security of the 
                firearms, focusing particularly on whether such 
                security would be enhanced by requiring storage 
                of the firearm at the airport when the pilot 
                leaves the airport to remain overnight away 
                from the pilot's base airport.
                  (K) Methods for ensuring that security 
                personnel will be able to identify whether a 
                pilot is authorized to carry a firearm under 
                the program.
                  (L) Methods for ensuring that pilots 
                (including Federal flight deck officers) will 
                be able to identify whether a passenger is a 
                law enforcement officer who is authorized to 
                carry a firearm aboard the aircraft.
                  (M) Any other issues that the Under Secretary 
                considers necessary.
                  (N) The Under Secretary's decisions regarding 
                the methods for implementing each of the 
                foregoing procedural requirements shall be 
                subject to review only for abuse of discretion.
          (4) Preference.--In selecting pilots to participate 
        in the program, the Under Secretary shall give 
        preference to pilots who are former military or law 
        enforcement personnel.
          (5) Classified information.--Notwithstanding section 
        552 of title 5 but subject to section 40119 of this 
        title, information developed under paragraph (3)(E) 
        shall not be disclosed.
          (6) Notice to Congress.--The Under Secretary shall 
        provide notice to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate after completing the analysis required by 
        paragraph (3)(E).
          (7) Minimization of risk.--If the Under Secretary 
        determines as a result of the analysis under paragraph 
        (3)(E) that there is a significant risk of the 
        catastrophic failure of an aircraft as a result of the 
        discharge of a firearm, the Under Secretary shall take 
        such actions as may be necessary to minimize that risk.
  (c) Training, Supervision, and Equipment.--
          (1) In general.--The Under Secretary shall only be 
        obligated to provide the training, supervision, and 
        equipment necessary for a pilot to be a Federal flight 
        deck officer under this section at no expense to the 
        pilot or the air carrier employing the pilot.
          (2) Training.--
                  (A) In general.--The Under Secretary shall 
                base the requirements for the training of 
                Federal flight deck officers under subsection 
                (b) on the training standards applicable to 
                Federal air marshals; except that the Under 
                Secretary shall take into account the differing 
                roles and responsibilities of Federal flight 
                deck officers and Federal air marshals.
                  (B) Elements.--The training of a Federal 
                flight deck officer shall include, at a 
                minimum, the following elements:
                          (i) Training to ensure that the 
                        officer achieves the level of 
                        proficiency with a firearm required 
                        under subparagraph (C)(i).
                          (ii) Training to ensure that the 
                        officer maintains exclusive control 
                        over the officer's firearm at all 
                        times, including training in defensive 
                        maneuvers.
                          (iii) Training to assist the officer 
                        in determining when it is appropriate 
                        to use the officer's firearm and when 
                        it is appropriate to use less than 
                        lethal force.
                  (C) Training in use of firearms.--
                          (i) Standard.--In order to be 
                        deputized as a Federal flight deck 
                        officer, a pilot must achieve a level 
                        of proficiency with a firearm that is 
                        required by the Under Secretary. Such 
                        level shall be comparable to the level 
                        of proficiency required of Federal air 
                        marshals.
                          (ii) Conduct of training.--The 
                        training of a Federal flight deck 
                        officer in the use of a firearm may be 
                        conducted by the Under Secretary or by 
                        a firearms training facility approved 
                        by the Under Secretary.
                          (iii) Requalification.--The Under 
                        Secretary shall require a Federal 
                        flight deck officer to requalify to 
                        carry a firearm under the program. Such 
                        requalification shall occur at an 
                        interval required by the Under 
                        Secretary.
  (d) Deputization.--
          (1) In general.--The Under Secretary may deputize, as 
        a Federal flight deck officer under this section, a 
        pilot who submits to the Under Secretary a request to 
        be such an officer and whom the Under Secretary 
        determines is qualified to be such an officer.
          (2) Qualification.--A pilot is qualified to be a 
        Federal flight deck officer under this section if--
                  (A) the pilot is employed by an air carrier;
                  (B) the Under Secretary determines (in the 
                Under Secretary's discretion) that the pilot 
                meets the standards established by the Under 
                Secretary for being such an officer; and
                  (C) the Under Secretary determines that the 
                pilot has completed the training required by 
                the Under Secretary.
          (3) Deputization by other federal agencies.--The 
        Under Secretary may request another Federal agency to 
        deputize, as Federal flight deck officers under this 
        section, those pilots that the Under Secretary 
        determines are qualified to be such officers.
          (4) Revocation.--The Under Secretary may, (in the 
        Under Secretary's discretion) revoke the deputization 
        of a pilot as a Federal flight deck officer if the 
        Under Secretary finds that the pilot is no longer 
        qualified to be such an officer.
  (e) Compensation.--Pilots participating in the program under 
this section shall not be eligible for compensation from the 
Federal Government for services provided as a Federal flight 
deck officer. The Federal Government and air carriers shall not 
be obligated to compensate a pilot for participating in the 
program or for the pilot's training or qualification and 
requalification to carry firearms under the program.
  (f) Authority To Carry Firearms.--
          (1) In general.--The Under Secretary shall authorize 
        a Federal flight deck officer to carry a firearm while 
        engaged in providing air transportation or intrastate 
        air transportation. Notwithstanding subsection (c)(1), 
        the officer may purchase a firearm and carry that 
        firearm aboard an aircraft of which the officer is the 
        pilot in accordance with this section if the firearm is 
        of a type that may be used under the program.
          (2) Preemption.--Notwithstanding any other provision 
        of Federal or State law, a Federal flight deck officer, 
        whenever necessary to participate in the program, may 
        carry a firearm in any State and from 1 State to 
        another State.
          (3) Carrying firearms outside United States.--In 
        consultation with the Secretary of State, the Under 
        Secretary may take such action as may be necessary to 
        ensure that a Federal flight deck officer may carry a 
        firearm in a foreign country whenever necessary to 
        participate in the program.
  (g) Authority To Use Force.--Notwithstanding section 
44903(d), the Under Secretary shall prescribe the standards and 
circumstances under which a Federal flight deck officer may 
use, while the program under this section is in effect, force 
(including lethal force) against an individual in the defense 
of the flight deck of an aircraft in air transportation or 
intrastate air transportation.
  (h) Limitation on Liability.--
          (1) Liability of air carriers.--An air carrier shall 
        not be liable for damages in any action brought in a 
        Federal or State court arising out of a Federal flight 
        deck officer's use of or failure to use a firearm.
          (2) Liability of federal flight deck officers.--A 
        Federal flight deck officer shall not be liable for 
        damages in any action brought in a Federal or State 
        court arising out of the acts or omissions of the 
        officer in defending the flight deck of an aircraft 
        against acts of criminal violence or air piracy unless 
        the officer is guilty of gross negligence or willful 
        misconduct.
          (3) Liability of federal government.--For purposes of 
        an action against the United States with respect to an 
        act or omission of a Federal flight deck officer in 
        defending the flight deck of an aircraft, the officer 
        shall be treated as an employee of the Federal 
        Government under chapter 171 of title 28, relating to 
        tort claims procedure.
  (i) Procedures Following Accidental Discharges.--If an 
accidental discharge of a firearm under the pilot program 
results in the injury or death of a passenger or crew member on 
an aircraft, the Under Secretary--
          (1) shall revoke the deputization of the Federal 
        flight deck officer responsible for that firearm if the 
        Under Secretary determines that the discharge was 
        attributable to the negligence of the officer; and
          (2) if the Under Secretary determines that a 
        shortcoming in standards, training, or procedures was 
        responsible for the accidental discharge, the Under 
        Secretary may temporarily suspend the program until the 
        shortcoming is corrected.
  (j) Limitation on Authority of Air Carriers.--No air carrier 
shall prohibit or threaten any retaliatory action against a 
pilot employed by the air carrier from becoming a Federal 
flight deck officer under this section. No air carrier shall--
          (1) prohibit a Federal flight deck officer from 
        piloting an aircraft operated by the air carrier; or
          (2) terminate the employment of a Federal flight deck 
        officer, solely on the basis of his or her volunteering 
        for or participating in the program under this section.
  (k) Applicability.--
          (1) Exemption.--This section shall not apply to air 
        carriers operating under part 135 of title 14, Code of 
        Federal Regulations, and to pilots employed by such 
        carriers to the extent that such carriers and pilots 
        are covered by section 135.119 of such title or any 
        successor to such section.
          (2) Pilot defined.--The term ``pilot'' means an 
        individual who has final authority and responsibility 
        for the operation and safety of the flight [or, if more 
        than 1 pilot is required for the operation of the 
        aircraft or by the regulations under which the flight 
        is being conducted, the individual designated as second 
        in command.] or any other flight deck crew member.
          (3) All-cargo air transportation.--For the purposes 
        of this section, the term air transportation includes 
        all-cargo air transportation.

Sec. 44922. Regular inspections of air cargo shipping facilities

  The Under Secretary of Transportation for Security shall 
establish a system for the regular inspection of shipping 
facilities for shipments of cargo transported in air 
transportation or intrastate air transportation to ensure that 
appropriate security controls, systems, and protocols are 
observed, and shall enter into arrangements with the civil 
aviation authorities, or other appropriate officials, of 
foreign countries to ensure that inspections are conducted on a 
regular basis at shipping facilities for cargo transported in 
air transportation to the United States.

Sec.  44923. Air cargo security

  (a) Database.--The Under Secretary of Transportation for 
Security shall establish an industry-wide pilot program 
database of known shippers of cargo that is to be transported 
in passenger aircraft operated by an air carrier or foreign air 
carrier in air transportation or intrastate air transportation. 
The Under Secretary shall use the results of the pilot program 
to improve the known shipper program.
  (b) Indirect air carriers.--
          (1) Random inspections.--The Under Secretary shall 
        conduct random audits, investigations, and inspections 
        of indirect air carrier facilities to determine if the 
        indirect air carriers are meeting the security 
        requirements of this title.
          (2) Ensuring compliance.--The Under Secretary may 
        take such actions as may be appropriate to promote and 
        ensure compliance with the security standards 
        established under this title.
          (3) Notice of failures.--The Under Secretary shall 
        notify the Secretary of Transportation of any indirect 
        air carrier that fails to meet security standards 
        established under this title.
          (4) Suspension or revocation of certificate.--The 
        Secretary, as appropriate, shall suspend or revoke any 
        certificate or authority issued under chapter 411 to an 
        indirect air carrier immediately upon the 
        recommendation of the Under Secretary. Any indirect air 
        carrier whose certificate is suspended or revoked under 
        this subparagraph may appeal the suspension or 
        revocation in accordance with procedures established 
        under this title for the appeal of suspensions and 
        revocations.
          (5) Indirect air carrier.--In this subsection, the 
        term ``indirect air carrier'' has the meaning given 
        that term in part 1548 of title 49, Code of Federal 
        Regulations.
  (c) Consideration of Community Needs.--In implementing air 
cargo security requirements under this title, the Under 
Secretary may take into consideration the extraordinary air 
transportation needs of small or isolated communities and 
unique operational characteristics of carriers that serve those 
communities.

                             * * * * * * *

              SUBCHAPTER II--ADMINISTRATION AND PERSONNEL

Sec. 44939. Training to operate certain aircraft

  (a) Waiting Period.--
          (1) In general._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] an aircraft 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)] (A) 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)] (B) the Attorney General has not 
                directed, within 45 days after being notified 
                under [paragraph (1),] subparagraph (A), 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.
          (2) Exception.--The requirements of paragraph (1) 
        shall not apply to an alien who--
                  (A) has earned a Federal Aviation 
                Administration type rating in an aircraft; or
                  (B) holds a current pilot's license or 
                foreign equivalent commercial pilot's license 
                that permits the person to fly an aircraft with 
                a maximum certificated takeoff weight of more 
                than 12,500 pounds as defined by the 
                International Civil Aviation Organization in 
                Annex 1 to the Convention on International 
                Civil Aviation.
  (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.]
  (c) Covered Training.--
          (1) In general.--For purposes of subsection (a), 
        training includes in-flight training, training in a 
        simulator, and any other form or aspect of training.
          (2) Exception.--For the purposes of subsection (a), 
        training does not include classroom instruction (also 
        known as ground training), which may be provided to an 
        alien during the 45-day period applicable to the alien 
        under that subsection.
  (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.