(a) In General.—In the case of a passenger that holds a nonrefundable ticket on a scheduled flight to, from, or within the United States, an air carrier or a foreign air carrier shall, upon request as set forth in subsection (f), provide a full refund, including any taxes and ancillary fees, for the fare such carrier collected for any cancelled flight or significantly delayed or changed flight where the passenger chooses not to—
(1) fly on the significantly delayed or changed flight or accept rebooking on an alternative flight; or
(2) accept any voucher, credit, or other form of compensation offered by the air carrier or foreign air carrier pursuant to subsection (c).
(b) Timing of Refund.—Any refund required under subsection (a) shall be issued by the air carrier or foreign air carrier—
(1) in the case of a ticket purchased with a credit card, not later than 7 business days after the earliest date the refund was requested as set forth in subsection (f); or
(2) in the case of a ticket purchased with cash or another form of payment, not later than 20 days after the earliest date the refund was requested as set forth in subsection (f).
(c) Alternative to Refund.—An air carrier and a foreign air carrier may offer a voucher, credit, or other form of compensation as an explicit alternative to providing a refund required by subsection (a) but only if—
(1) the offer includes a clear and conspicuous notice of—
(A) the terms of the offer; and
(B) the passenger's right to a full refund under this section;
(2) the voucher, credit, or other form of compensation offered explicitly as an alternative to providing a refund required by subsection (a) remains valid and redeemable by the consumer for a period of at least 5 years from the date on which such voucher, credit, or other form of compensation is issued;
(3) upon the issuance of such voucher, credit, or other form of compensation, an air carrier, foreign air carrier, or ticket agent, where applicable, notifies the recipient of the expiration date of the voucher, credit, or other form of compensation; and
(4) upon request by an individual who self-identifies as having a disability (as defined in section
382.3 of title 14, Code of Federal Regulations), an air carrier, foreign air carrier, or ticket agent provides a notification under paragraph (3) in an electronic format that is accessible to the recipient.
(d) Significantly Delayed or Changed Flight Defined.—In this section, the term "significantly delayed or changed flight" includes, at a minimum, a flight where the passenger arrives at a destination airport—
(1) in the case of a domestic flight, 3 or more hours after the original scheduled arrival time; and
(2) in the case of an international flight, 6 or more hours after the original scheduled arrival time.
(e) Application to Ticket Agents.—
(1) In general.—Not later than 1 year after the date of enactment of this section, the Secretary shall issue a final rule to apply refund requirements to ticket agents in the case of cancelled flights and significantly delayed or changed flights.
(2) Transfer of funds.—The Secretary shall issue regulations requiring air carriers and foreign air carriers to promptly transfer funds to a ticket agent if—
(A) the Secretary has determined that the ticket agent is responsible for providing the refund; and
(B) the ticket agent does not possess the funds of the passenger.
(3) Timing and alternatives.—A refund provided by a ticket agent shall comply with the requirements in subsections (b) and (c) of this section.
(f) Refund.—An air carrier and a foreign air carrier shall consider a passenger to have requested a refund if—
(1) a flight is cancelled and a passenger is not offered an alternative flight or any voucher, credit, or other form of compensation by the air carrier or foreign air carrier pursuant to subsection (c);
(2) a passenger rejects the significantly delayed or changed flight, rebooking on an alternative flight, or any voucher, credit, or other form of compensation offered by the air carrier or foreign air carrier pursuant to subsection (c); or
(3) a passenger does not respond to an offer of—
(A) a significantly delayed or changed flight or an alternative flight and the flight departs without the passenger; or
(B) a voucher, credit, or other form of compensation by the date on which the cancelled flight was scheduled to depart or the date that the significantly delayed or changed flight departs.
(g) Refund Notification.—An air carrier and a foreign air carrier shall update their passenger notification systems to ensure passengers owed a refund under this section are notified of their right to receive a refund.