49 U.S.C. § 41110 — Effective periods and amendments, modi-

Page 1125 TITLE 49—TRANSPORTATION § 41110 stituted for ‘‘engage in’’, for consistency in the revised title. The words ‘‘terminal and intermediate’’ are omit- ted as surplus. The words ‘‘between which the air car- rier is authorized to provide the transportation’’ are added for clarity and consistency. In subsection (a)(3), the words ‘‘or routes’’ are omit- ted because of 1:1. The words ‘‘The Secretary’’ are added for clarity. In subsection (a)(4), the words ‘‘or areas’’ are omitted because of 1:1. In subsection (b), the words ‘‘condition, or limita- tion’’ are omitted as being included in ‘‘term’’. In subsection (b)(1), before clause (A), the word ‘‘mod- ify’’ is substituted for ‘‘removal or modification’’ to eliminate unnecessary words. The word ‘‘provide’’ is substituted for ‘‘engage in’’ for consistency in the re- vised title. In clause (A), the words ‘‘provide the carrier an opportunity’’ are substituted for ‘‘set such applica- tion’’ for consistency in the revised title and with other titles of the United States Code. In clause (B), the words ‘‘the simplified procedures established by the Board in regulations pursuant to’’ are omitted as sur- plus. PUB. L. 104–287 This amends 49:41109(a) to clarify the restatement of 49 App.:1371(e) by section 1 of the Act of July 5, 1994 (Public Law 103–272, 108 Stat. 1123). Editorial Notes AMENDMENTS 1996—Subsec. (a)(5). Pub. L. 104–287 added par. (5). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–287 effective July 5, 1994, see section 8(1) of Pub. L. 104–287, set out as a note under section 5303 of this title. § 41110. Effective periods and amendments, modi- fications, suspensions, and revocations of certificates (a) GENERAL.—(1) Each certificate issued under section 41102 of this title is effective from the date specified in it and remains in effect until— (A) the Secretary of Transportation sus- pends or revokes the certificate under this sec- tion; (B) the end of the period the Secretary speci- fies for an air carrier having a certificate of temporary authority issued under section 41102(a)(2) of this title; or (C) the Secretary certifies that transpor- tation is no longer being provided under a cer- tificate. (2) On application or on the initiative of the Secretary and after notice and an opportunity for a hearing or, except as provided in paragraph (4) of this subsection, under section 41111 of this title, the Secretary may— (A) amend, modify, or suspend any part of a certificate if the Secretary finds the public convenience and necessity require amend- ment, modification, or suspension; and (B) revoke any part of a certificate if the Secretary finds that the holder of the certifi- cate intentionally does not comply with this chapter, sections 41308–41310(a), 41501, 41503, 41504, 41506, 41510, 41511, 41701, 41702, 41705–41709, 41711, 41712, and 41731–41742, chapter 419, sub- chapter II of chapter 421, and section 46301(b) of this title, a regulation or order of the Sec- retary under any of those provisions, or a term of its certificate. (3) The Secretary may revoke a certificate under paragraph (2)(B) of this subsection only if the holder of the certificate does not comply, within a reasonable time the Secretary speci- fies, with an order to the holder requiring com- pliance. (4) A certificate to provide foreign air trans- portation may not be amended, modified, sus- pended, or revoked under section 41111 of this title if the holder of the certificate requests an oral evidentiary hearing or the Secretary finds, under all the facts and circumstances, that the hearing is required in the public interest. (b) ALL-CARGO AIR TRANSPORTATION.—The Sec- retary may order that a certificate issued under section 41103 of this title authorizing all-cargo air transportation is ineffective if, after notice and an opportunity for a hearing, the Secretary finds that the transportation is not provided to the minimum extent specified by the Secretary. (c) FOREIGN AIR TRANSPORTATION.—(1) Not- withstanding subsection (a)(2)–(4) of this sec- tion, after notice and a reasonable opportunity for the affected air carrier to present its views, but without a hearing, the Secretary may sus- pend or revoke the authority of an air carrier to provide foreign air transportation to a place under a certificate issued under section 41102 of this title if the carrier— (A) notifies the Secretary, under section 41734(a) of this title or a regulation of the Sec- retary, that it intends to suspend all transpor- tation to that place; or (B) does not provide regularly scheduled transportation to the place for 90 days imme- diately before the date the Secretary notifies the carrier of the action the Secretary pro- poses. (2) Paragraph (1)(B) of this subsection does not apply to a place provided seasonal transpor- tation comparable to the transportation pro- vided during the prior year. (d) TEMPORARY CERTIFICATES.—On application or on the initiative of the Secretary, the Sec- retary may— (1) review the performance of an air carrier issued a certificate under section 41102(c) of this title on the basis that the air carrier will provide innovative or low-priced air transpor- tation under the certificate; and (2) amend, modify, suspend, or revoke the certificate or authority under subsection (a)(2) or (c) of this section if the air carrier has not provided, or is not providing, the transpor- tation. (e) CONTINUING REQUIREMENTS.—(1) To hold a certificate issued under section 41102 of this title, an air carrier must continue to be fit, will- ing, and able to provide the transportation au- thorized by the certificate and to comply with this part and regulations of the Secretary. (2) After notice and an opportunity for a hear- ing, the Secretary shall amend, modify, suspend, or revoke any part of a certificate issued under section 41102 of this title if the Secretary finds that the air carrier— (A) is not fit, willing, and able to provide the transportation authorized by the certificate Page 1126 TITLE 49—TRANSPORTATION § 41110 and to comply with this part and regulations of the Secretary; or (B) does not file reports necessary for the Secretary to decide if the carrier is complying with the requirements of clause (A) of this paragraph. (f) ILLEGAL IMPORTATION OF CONTROLLED SUB- STANCES.—The Secretary— (1) in consultation with appropriate depart- ments, agencies, and instrumentalities of the United States Government, shall reexamine immediately the fitness of an air carrier that— (A) violates the laws and regulations of the United States related to the illegal importa- tion of a controlled substance; or (B) does not adopt available measures to prevent the illegal importation of a con- trolled substance into the United States on its aircraft; and (2) when appropriate, shall amend, modify, suspend, or revoke the certificate of the car- rier issued under this chapter. (g) RESPONSES.—An interested person may file a response with the Secretary opposing or sup- porting the amendment, modification, suspen- sion, or revocation of a certificate under sub- section (a) of this section. (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1123; Pub. L. 103–429, § 6(50), Oct. 31, 1994, 108 Stat. 4384.) HISTORICAL AND REVISION NOTES PUB. L. 103–272 Revised Section Source (U.S. Code) Source (Statutes at Large) 41110(a)(1) .. 49 App.:1371(f). Aug. 23, 1958, Pub. L. 85–726, § 401(f), 72 Stat. 755; Oct. 24, 1978, Pub. L. 95–504, §§ 10(b), 17, 92 Stat. 1716, 1720. 49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, § 3(e), 98 Stat. 1704. 41110(a) (2)–(4). 49 App.:1371(g)(1). Aug. 23, 1958, Pub. L. 85–726, § 401(g), 72 Stat. 756; Oct. 24, 1978, Pub. L. 95–504, § 18, 92 Stat. 1720; restated Feb. 15, 1980, Pub. L. 96–192, § 6, 94 Stat 37. 49 App.:1551(b)(1)(E). 41110(b) ...... 49 App.:1388(b)(4). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 418(b)(4); added Nov. 9, 1977, Pub. L. 95–163, § 17(a), 91 Stat. 1285. 49 App.:1551(b)(1)(E). 41110(c) ...... 49 App.:1371(g)(3). 49 App.:1551(b)(1)(E). 41110(d) ...... 49 App.:1371(d)(8) (last sentence). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 401(d)(8) (last sentence); added Oct. 24, 1978, Pub. L. 95–504, § 13, 92 Stat. 1719. 49 App.:1551(a)(1)(B). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 1601(a)(1)(B); added Oct. 24, 1978, Pub. L. 95–504, § 40(a), 92 Stat. 1744. 49 App.:1551(b)(1)(E). 41110(e) ...... 49 App.:1371(r) (re- lated to certifi- cate). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 401(r) (re- lated to certificate); added Oct. 24, 1978, Pub. L. 95–504, § 20(d)(1), 92 Stat. 1722. 49 App.:1551(b)(1)(E). 41110(f) ....... 49 App.:1371a (re- lated to certifi- cate). Aug. 15, 1985, Pub. L. 99–88, § 100 (1st complete par. re- lated to certificate on p. 352), 99 Stat. 352. 41110(g) ...... 49 App.:1371(g)(2). 49 App.:1551(b)(1)(E). In subsection (a)(1)(C), the words ‘‘transportation is no longer being provided under a certificate’’ are sub- stituted for ‘‘operation thereunder has ceased’’ and ‘‘operations thereunder have ceased’’ for clarity and consistency. In subsections (a)(2) and (e), the words ‘‘opportunity for a’’ are added for consistency in the revised title and with other titles of the United States Code. In subsection (a)(2), before clause (A), the word ‘‘ap- plication’’ is substituted for ‘‘petition or complaint’’ for consistency in the revised title and with other titles of the Code and to eliminate unnecessary words. The words ‘‘except as provided in paragraph (4) of this sub- section’’ are added for clarity. The words ‘‘the sim- plified procedures under’’ are omitted as surplus. In clause (A), the word ‘‘alter’’ is omitted as surplus. In clause (B), the reference to 49 App.:1372 is omitted from the cross-references of ‘‘this subchapter’’ because 49 App.:1372 is concerned with foreign air carrier permits and not relevant to air carrier certificate revocation. The word ‘‘rule’’ is omitted as being synonymous with ‘‘regulation’’. The words ‘‘condition, or limitation’’ are omitted as surplus. In subsection (a)(3), the words ‘‘to the provision, or to the order (other than an order issued in accordance with this sentence), rule, regulation, term, condition, or limitation found by the Board to have been vio- lated’’ are omitted as surplus. In subsection (a)(4), the word ‘‘provide’’ is substituted for ‘‘engage in’’ for consistency in the revised title. The words ‘‘altered’’ and ‘‘the simplified procedures of’’ are omitted as surplus. In subsection (b), the words ‘‘to the extent of such service’’ are omitted as surplus. The word ‘‘provided’’ is substituted for ‘‘performed’’ for consistency in the re- vised title. In subsection (c)(1), the word ‘‘place’’ is substituted for ‘‘point’’ for consistency in the revised title. In clause (A), the cross-reference is to section 41734(a) of the revised title for clarity because 49 App.:1371(j) is ob- solete. The comparable provision is 49 App.:1389(b)(2), restated as section 41734(a). The words ‘‘provided by that carrier’’ are omitted as surplus. In clause (B), the word ‘‘immediately’’ is added for clarity. In subsection (d)(2), the words ‘‘alter’’ and ‘‘the pro- cedures prescribed in’’ are omitted as surplus. In subsections (e) and (f)(2), the word ‘‘amend’’ is added for consistency. In subsection (e), before clause (1), the words ‘‘The re- quirement that each applicant for a certificate or any other authority . . . shall be a continuing requirement applicable to each such air carrier with respect to the transportation authorized by the Board’’ are omitted as surplus. The words ‘‘by order’’ are omitted as unneces- sary because of 5:ch. 5, subch. II. In clause (1), the word ‘‘provide’’ is substituted for ‘‘perform’’ for consistency in the revised title. The word ‘‘properly’’ is omitted as surplus. The word ‘‘comply’’ is substituted for ‘‘con- form to’’ for consistency in the revised title. The word ‘‘rules’’ is omitted as being synonymous with ‘‘regula- tions’’. The word ‘‘requirements’’ is omitted as surplus. In subsection (f), before clause (1), the words ‘‘Not- withstanding any other provision of law’’ are omitted as surplus. The words ‘‘on and after August 15, 1985’’ are omitted as executed. In clause (1), before subclause (A), the words ‘‘law enforcement and other’’ are omitted as surplus. The words ‘‘departments, agencies, and instru- mentalities of the United States Government’’ are sub- stituted for ‘‘agencies’’ for consistency in the revised title and with other titles of the Code. The words ‘‘an air carrier’’ are substituted for ‘‘any carrier’’ for clar- ity. In clause (2), the words ‘‘of public convenience and necessity’’ are omitted as surplus. The words ‘‘issued under this chapter’’ are added for clarity. In subsection (g), the word ‘‘response’’ is substituted for ‘‘protest or memorandum’’ to eliminate unneces- sary words. The word ‘‘alteration’’ is omitted as sur- plus. PUB. L. 103–429 This amends 49:41110(e) to clarify the restatement of 49 App.:1371(r) (related to certificate) by section 1 of the Act of July 5, 1994 (Public Law 103–272, 108 Stat. 1124). Page 1127 TITLE 49—TRANSPORTATION § 41112 Editorial Notes AMENDMENTS 1994—Subsec. (e). Pub. L. 103–429 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: ‘‘After notice and an opportunity for a hearing, the Secretary shall amend, modify, suspend, or revoke any part of a certificate issued under section 41102 of this title if the Secretary finds that the air carrier— ‘‘(1) is not fit, willing, and able to continue to pro- vide the transportation authorized by the certificate and to comply with this part and regulations of the Secretary; or ‘‘(2) does not file reports necessary for the Sec- retary to decide if the carrier is complying with the requirements of clause (1) of this subsection.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–429 effective July 5, 1994, see section 9 of Pub. L. 103–429, set out as a note under section 321 of this title. § 41111. Simplified procedure to apply for, amend, modify, suspend, and transfer certifi- cates (a) GENERAL REQUIREMENTS.—(1) The Sec- retary of Transportation shall prescribe regula- tions that simplify the procedure for— (A) acting on an application for a certificate to provide air transportation under section 41102 of this title; and (B) amending, modifying, suspending, or transferring any part of that certificate under section 41105 or 41110(a) or (c) of this title. (2) Regulations under this section shall pro- vide for notice and an opportunity for each in- terested person to file appropriate written evi- dence and argument. An oral evidentiary hear- ing is not required to be provided under this sec- tion. (b) WHEN SIMPLIFIED PROCEDURE USED.—The Secretary may use the simplified procedure to act on an application for a certificate to provide air transportation under section 41102 of this title, or to amend, modify, suspend, or transfer any part of that certificate under section 41105 or 41110(a) or (c) of this title, when the Sec- retary decides the use of the procedure is in the public interest. (c) CONTENTS.—(1) To the extent the Secretary finds practicable, regulations under this section shall include each standard the Secretary will apply when— (A) deciding whether to use the simplified procedure; and (B) making a decision on an action in which the procedure is used. (2) The regulations may provide that written evidence and argument may be filed under sec- tion 41108(b) of this title as a part of a response opposing or supporting the issuance of a certifi- cate. (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1125.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 41111(a) ...... 49 App.:1371(p)(1) (1st, 2d sen- tences). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 401(p); added Oct. 24, 1978, Pub. L. 95–504, § 21(a)(1), 92 Stat. 1723. 49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, § 3(e), 98 Stat. 1704. 41111(b) ...... 49 App.:1371(p)(2) (1st sentence). 49 App.:1551(b)(1)(E). 41111(c) ...... 49 App.:1371(p)(1) (last sentence), (2) (last sentence). 49 App.:1551(b)(1)(E). In this section, the words ‘‘acting on’’ and ‘‘act on’’ are substituted for ‘‘disposition of’’ for consistency. In subsection (a)(1)(A), the word ‘‘provide’’ is sub- stituted for ‘‘engage in’’ for consistency in the revised title. In subsection (a)(1)(B), the word ‘‘alteration’’ is omit- ted as surplus. In subsection (a)(2), the word ‘‘adequate’’ is omitted as surplus. In subsection (b), the words ‘‘to act on an application for a certificate to provide air transportation under section 41102 of this title, or to amend, modify, suspend, or transfer any part of that certificate under section 41105 or 41110(a) or (c) of this title’’ are added for clar- ity. In subsection (c)(2), the words ‘‘by such person’’ are omitted as surplus. The words ‘‘a response opposing or supporting the issuance of a certificate’’ are sub- stituted for ‘‘a protest or memorandum filed with re- spect to such application’’ for consistency. § 41112. Liability insurance and financial respon- sibility (a) LIABILITY INSURANCE.—The Secretary of Transportation may issue a certificate to a cit- izen of the United States to provide air trans- portation as an air carrier under section 41102 of this title only if the citizen complies with regu- lations and orders of the Secretary governing the filing of an insurance policy or self-insur- ance plan approved by the Secretary. The policy or plan must be sufficient to pay, not more than the amount of the insurance, for bodily injury to, or death of, an individual or for loss of, or damage to, property of others, resulting from the operation or maintenance of the aircraft under the certificate. A certificate does not re- main in effect unless the carrier complies with this subsection. (b) FINANCIAL RESPONSIBILITY.—To protect passengers and shippers using an aircraft oper- ated by an air carrier issued a certificate under section 41102 of this title, the Secretary may re- quire the carrier to file a performance bond or equivalent security in the amount and on terms the Secretary prescribes. The bond or security must be sufficient to ensure the carrier ade- quately will pay the passengers and shippers when the transportation the carrier agrees to provide is not provided. The Secretary shall pre- scribe the amounts to be paid under this sub- section. (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1126.)