What This Bill Does
This bill requires airlines and ticket agents to give passengers cash refunds when flights are canceled or significantly delayed by the airline. It also requires cash refunds when passengers cancel their tickets at least 48 hours before departure. Airlines can offer alternative compensation like vouchers, but only if they tell passengers about their right to cash instead. (Sec. 41727)
Who It Affects
Passengers buying tickets for airline flights, airlines with 2018 revenue over $1.5 billion and foreign airlines flying to or from the United States, and ticket agents who sell airline tickets.
Key Provisions
• Airlines and ticket agents must offer full cash refunds within 30 days when a passenger requests one after a flight cancellation, significant delay, or when the passenger cancels 48 hours before departure. This includes refunding any extra fees paid. (Sec. 41727(a)(1))
• Airlines and ticket agents must only provide one cash refund per passenger per route on any given date. (Sec. 41727(a)(1)(B))
• Airlines can offer vouchers, credits or other compensation instead of cash, but only if they clearly inform passengers that cash refunds are available. (Sec. 41727(a)(2)(A))
• Any vouchers or credits offered must never expire and passengers can use them indefinitely. (Sec. 41727(a)(2)(B))
• Passengers who received vouchers between March 1, 2020 and when this law takes effect can request cash refunds for any unused portion. (Sec. 41727(a)(3))
• Airlines and ticket agents must tell passengers in writing before buying tickets that they can cancel anytime and get a full cash refund. (Sec. 41727(c)(1))
What Changes
If this bill becomes law, airlines will be required to give cash refunds instead of vouchers for canceled flights, significantly delayed flights, or passenger-initiated cancellations 48 hours before departure. Airlines can use money they received from the government after March 1, 2020 to pay for these refunds, except money from a specific 2020 COVID relief law. Airlines and ticket agents that break these rules face $1,000 penalties for each violation.
Important Definitions
• "Covered carrier" means any passenger airline with 2018 revenue over $1.5 billion or any foreign airline flying to or from the United States. (Sec. 41727(d)(2))
• "Covered flight" means a flight operated by a covered carrier that departs from or arrives at an airport in the United States. (Sec. 41727(d)(3))
• "Significantly delayed" is defined by the Secretary of Transportation but not specified in this bill text.
Effective Date
The law takes effect on the date this bill is signed into law. (Sec. 2(d))
I
118TH CONGRESS
1ST SESSION H. R. 1233
To provide for cash refunds for canceled airline flights and tickets.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 28, 2023
Mr. COHEN (for himself and Mr. RASKIN) introduced the following bill; which
was referred to the Committee on Transportation and Infrastructure, and
in addition to the Committee on Financial Services, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee con-
cerned
A BILL
To provide for cash refunds for canceled airline flights and
tickets.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Cash Refunds for
4
Flight Cancellations Act of 2023’’.
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SEC. 2. CASH REFUNDS FOR CANCELED AIRLINE FLIGHTS
1
AND TICKETS.
2
(a) IN GENERAL.—Chapter 417 of title 49, United
3
States Code, is amended by adding at the end the fol-
4
lowing:
5
‘‘SEC. 41727. CASH REFUNDS FOR CANCELED AIRLINE
6
FLIGHTS AND TICKETS.
7
‘‘(a) CASH REFUNDS.—
8
‘‘(1) REQUIREMENT.—
9
‘‘(A) IN
GENERAL.—Subject to subpara-
10
graph (B), a covered carrier or ticket agent who
11
sells a ticket for a passenger to take a covered
12
flight, and either such flight is canceled or sig-
13
nificantly delayed (as defined by the Secretary
14
of Transportation) by the covered carrier or
15
such ticket is canceled by the passenger at least
16
48 hours before the scheduled departure of the
17
flight, shall offer the passenger a full cash re-
18
fund for such ticket, including any ancillary
19
fees paid, within 30 days of the passenger mak-
20
ing the request.
21
‘‘(B) LIMITATION.—A covered carrier or
22
ticket agent shall only be required to offer a
23
cash refund under subparagraph (A) for 1
24
flight booked by a passenger on any city-pair
25
itinerary on any given date.
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•HR 1233 IH
‘‘(2) ALTERNATIVE FORM OF COMPENSATION.—
1
‘‘(A) IN GENERAL.—A covered carrier or
2
ticket agent may offer an alternative form of
3
compensation determined appropriate by the
4
covered carrier or ticket agent, including a
5
credit, a voucher, or other mechanism to com-
6
pensate a passenger, provided that any such
7
offer includes a clear and conspicuous notice of
8
a passenger’s right to a cash refund under
9
paragraph (1).
10
‘‘(B) NO
EXPIRATION
DATE.—An alter-
11
native form of compensation provided pursuant
12
to subparagraph (A) shall remain valid and re-
13
deemable by the passenger indefinitely.
14
‘‘(3) RETROACTIVE REFUNDS.—In the case of a
15
passenger who—
16
‘‘(A) received an alternative form of com-
17
pensation during the period beginning on
18
March 1, 2020, and ending on the day prior to
19
the date of enactment of this Act for a covered
20
flight or ticket for a covered flight canceled by
21
the covered carrier or by the passenger; and
22
‘‘(B) has not fully used such alternative
23
compensation,
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•HR 1233 IH
such passenger may request a cash refund to replace
1
the alternative compensation, or the remaining alter-
2
native compensation if the passenger has used part
3
of the alternative compensation, and the covered car-
4
rier or ticket agent shall comply with such request
5
within 30 days of receiving such request.
6
‘‘(4) REIMBURSEMENT TO TICKET AGENT.—A
7
ticket agent who provides a cash refund to a pas-
8
senger under this section, including a retroactive re-
9
fund under paragraph (3), shall be entitled to
10
prompt reimbursement from any covered carrier for
11
the portion of the ticket price paid to that carrier.
12
‘‘(b) FUNDING.—
13
‘‘(1) IN GENERAL.—Subject to paragraph (2), a
14
covered carrier or ticket agent may use amounts ap-
15
propriated or otherwise made available to the com-
16
mercial airline industry in any appropriations en-
17
acted on or after March 1, 2020, in response to
18
COVID–19 to pay for the cash refunds under sub-
19
section (a), including retroactive refunds under para-
20
graph (3) of such subsection.
21
‘‘(2) LIMITATION.—A covered carrier may not
22
use amounts appropriated under section 4112 of the
23
Coronavirus Economic Stabilization Act of 2020
24
(title IV of division A of the Coronavirus Aid, Relief,
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•HR 1233 IH
and Economic Security Act (Public Law 116–136))
1
to pay for the cash refunds under subsection (a), in-
2
cluding retroactive refunds under paragraph (3) of
3
such subsection.
4
‘‘(c) DISCLOSURE.—
5
‘‘(1) PRIOR TO PURCHASE.—Prior to the sale of
6
a ticket for passenger to take a covered flight, a cov-
7
ered carrier or ticket agent shall disclose, in writing
8
in written or electronic communication, that the pas-
9
senger has a right to cancel their ticket at any time
10
for any reason and receive a full cash refund.
11
‘‘(2) CANCELLED OR SIGNIFICANTLY DELAYED
12
FLIGHT.—In the case of a covered carrier or ticket
13
agent who sells a ticket for a passenger to take a
14
covered flight, if such flight is canceled or signifi-
15
cantly delayed (as defined by the Secretary of
16
Transportation) by the covered carrier or such ticket
17
is canceled by the passenger at least 48 hours before
18
the scheduled departure of the flight, the covered
19
carrier or ticket agent shall disclose, in writing in
20
written or electronic communication, that the pas-
21
senger has a right to receive a full cash refund for
22
their ticket.
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‘‘(3) REQUIREMENTS
FOR
DISCLOSURE.—Any
1
written or electronic disclosure under paragraph (1)
2
or (2) shall be in a clear and conspicuous format.
3
‘‘(d) DEFINITIONS.—In this section:
4
‘‘(1) AIR
CARRIER, FOREIGN
AIR
CARRIER,
5
TICKET AGENT, AND UNITED STATES.—The terms
6
‘air carrier, foreign air carrier, ticket agent, and
7
United States’ have the meanings given those terms
8
in section 40102.
9
‘‘(2) COVERED
CARRIER.—The term ‘covered
10
carrier’ means—
11
‘‘(A) any passenger air carrier that had an
12
operating revenue in 2018 that exceeded
13
$1,500,000,000 according to the Bureau of
14
Transportation Statistics; or
15
‘‘(B) any passenger foreign air carrier op-
16
erating a flight to or from the United States.
17
‘‘(3) COVERED
FLIGHT.—The term ‘covered
18
flight’ means a flight of a covered carrier that is
19
scheduled to depart from, or arrive at, an airport lo-
20
cated in the United States.’’.
21
(b) ENFORCEMENT.—Section 46301 of title 49,
22
United States Code, is amended by adding at the end the
23
following new subsection:
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•HR 1233 IH
‘‘(j) PENALTIES RELATING TO CASH REFUNDS FOR
1
CANCELED AIRLINE FLIGHTS AND TICKETS.—An air car-
2
rier or ticket agent that violates section 41727 shall be
3
liable to the Government for a civil penalty of $1,000 for
4
each violation.’’.
5
(c) CLERICAL AMENDMENT.—The analysis for chap-
6
ter 417 of title 49, United States Code, is amended by
7
adding at the end the following:
8
‘‘41727. Cash refunds for canceled airline flights and tickets.’’.
(d) EFFECTIVE DATE.—The amendments made by
9
this section shall take effect on the date of the enactment
10
of this Act.
11
Æ
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