Restoring Local Control of Airports Act of 2016

Summary: Restoring Local Control of Airports Act of 2016 This bill reauthorizes through FY2021 and revises the Airport Improvement Program. Specifically, the bill: (1) eliminates the federal cap on passenger facility charges (local user fees) of $4.50 per enplanement; and (2) with respect to airports that increase such charges beyond $4.50 per enplanement, provides for corresponding reductions in program grant funding. In addition, the bill amends the Internal Revenue Code to reduce the federal airline ticket tax.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Restoring Local Control of Airports 
Act of 2016''.

SEC. 2. PASSENGER FACILITY CHARGES.

    (a) General Authority.--Section 40117(b) of title 49, United States 
Code, is amended--
            (1) in paragraph (1) by striking ``$1, $2, or $3'' and 
        inserting ``any amount'';
            (2) by striking paragraph (4);
            (3) by redesignating paragraphs (5), (6), and (7) as 
        paragraphs (4), (5), and (6), respectively;
            (4) in paragraph (5) (as so redesignated)--
                    (A) by striking ``paragraphs (1) and (4)'' and 
                inserting ``paragraph (1)''; and
                    (B) by striking ``paragraph (1) or (4)'' and 
                inserting ``paragraph (1)''; and
            (5) in paragraph (6)(A) (as so redesignated)--
                    (A) by striking ``paragraphs (1), (4), and (6)'' 
                and inserting ``paragraphs (1) and (5)''; and
                    (B) by striking ``paragraph (1) or (4)'' and 
                inserting ``paragraph (1)''.
    (b) Determination of Reasonableness of Passenger Facility Charge.--
Section 40117 of title 49, United States Code, is amended by adding at 
the end the following:
    ``(n) Determination of Reasonableness of Passenger Facility 
Charge.--
            ``(1) In general.--The Secretary shall issue a 
        determination as to whether a passenger facility charge is 
        reasonable, if a written complaint for such determination is 
        filed with the Secretary by an affected passenger not later 
        than 120 days after the charge is paid by the passenger.
            ``(2) Secretary's determination.--In determining under 
        paragraph (1) whether a passenger facility charge is 
        reasonable, the Secretary may only determine whether the charge 
        is reasonable pursuant to paragraph (4).
            ``(3) Procedural regulations.--Not later than 360 days 
        after the date of enactment of this subsection, the Secretary 
        shall publish in the Federal Register final regulations, policy 
        statements, or guidelines establishing the procedures for 
        acting upon written complaints filed under paragraph (1).
            ``(4) Determination of reasonableness.--In determining 
        under paragraph (1) whether a passenger facility charge is 
        reasonable, the Secretary shall determine if the passenger 
        facility charge is--
                    ``(A) excessive in relation to the benefits 
                conferred; or
                    ``(B) used for a purpose other than the purpose for 
                which the charge was originally authorized.
            ``(5) Decisions by secretary.--The final regulations, 
        policy statements, or guidelines required under paragraph (3) 
        shall provide for the following:
                    ``(A) Directions regarding an appropriate refund or 
                credit of a passenger facility charge to a passenger 
                who has filed with the Secretary a written complaint 
                relating to a passenger facility charge.
                    ``(B) Not later than 270 days after a complaint 
                relating to a passenger facility charge is filed with 
                the Secretary, the Secretary shall issue a written 
                determination as to whether the passenger facility 
                charge is reasonable.
                    ``(C) Not later than 90 days after a complaint 
                relating to a passenger facility charge is filed with 
                the Secretary, the Secretary shall dismiss the 
                complaint if no significant dispute exists or shall 
                assign the matter to an administrative law judge. 
                Thereafter, the matter shall be handled in accordance 
                with part 302 of title 14, Code of Federal Regulations, 
                or as modified by the Secretary, to ensure an orderly 
                disposition of the matter within the 270-day period and 
                any specifically applicable provisions of this 
                subsection.
                    ``(D) The administrative law judge shall issue a 
                recommended decision within 90 days after the complaint 
                is assigned.
                    ``(E) If the Secretary, upon the expiration of the 
                270-day period, has not issued a final order, the 
                decision of the administrative law judge shall be 
                deemed to be the final order of the Secretary.''.

SEC. 3. AIRPORT IMPROVEMENT PROGRAM.

    (a) Funding.--Section 48103(a) of title 49, United States Code, is 
amended by striking ``$3,350,000,000'' and all that follows before the 
period at the end and inserting ``$2,950,000,000 for each of fiscal 
years 2016 through 2021''.
    (b) Apportionments.--Section 47114 of title 49, United States Code, 
is amended--
            (1) by striking ``$3,200,000,000'' each place it appears 
        and inserting ``$2,950,000,000''; and
            (2) in subsection (f)--
                    (A) in paragraph (1) by striking ``paragraph (3)'' 
                and inserting ``paragraph (4)'';
                    (B) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                    (C) by inserting after paragraph (1) the following:
            ``(2) In general.--Subject to paragraph (4), and in lieu of 
        the reduction under paragraph (1), an amount that would be 
        apportioned under this section (other than amounts apportioned 
        under subsection (c)(2)) in a fiscal year to the sponsor of an 
        airport having at least 1.0 percent of the total number of 
        boardings each year in the United States and for which a charge 
        of more than $4.50 is imposed in the fiscal year under section 
        40117 shall be reduced by an amount equal to--
                    ``(A) except as provided in subparagraph (B), 100 
                percent of the projected revenues from the charge in 
                the fiscal year but not by more than 100 percent of the 
                amount that otherwise would be apportioned under this 
                section; or
                    ``(B) with respect to an airport in Hawaii, 100 
                percent of the projected revenues from the charge in 
                the fiscal year but not by more than 100 percent of the 
                excess of--
                            ``(i) the amount that otherwise would be 
                        apportioned under this section; over
                            ``(ii) the amount equal to the amount 
                        specified in clause (i) multiplied by the 
                        percentage of the total passenger boardings at 
                        the applicable airport that are comprised of 
                        interisland passengers.'';
                    (D) in paragraph (3) (as so redesignated) by 
                striking ``paragraph (1)'' and inserting ``paragraph 
                (1) or (2)''; and
                    (E) in paragraph (4) (as so redesignated)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``.25 percent'' and 
                                inserting ``1.0 percent''; and
                                    (II) by striking ``paragraph (1)'' 
                                and inserting ``paragraph (2)''; and
                            (ii) in subparagraph (B) by striking 
                        ``fiscal year 2004'' and inserting ``fiscal 
                        year 2017 and each fiscal year thereafter''.
    (c) Use of Apportioned Amounts.--Section 47117(e)(1)(C) of title 
49, United States Code, is amended by striking ``$3,200,000,000'' and 
inserting ``$2,950,000,000''.

SEC. 4. REDUCTION IN AIRLINE TICKET TAX.

    (a) In General.--Section 4261(a) of the Internal Revenue Code of 
1986 is amended by striking ``7.5 percent'' and inserting ``7.0 
percent''.
    (b) Effective Date.--The amendment made by this section shall apply 
to transportation beginning after September 30, 2016, but not for 
amounts paid on or before such date.