To amend title 49, United States Code, to provide assistance for the construction of certain air traffic control towers.

Summary: Small Airport Safety, Security, and Air Service Improvement Act of 2002 - Amends Federal aviation law to make eligible for airport development project funds the construction of an air traffic control tower or the acquisition and installation of air traffic control, communications, and related equipment at a tower under specified terms.(Sec. 3) Authorizes the Secretary of Transportation under the air traffic control contract program to provide grants to a sponsor of a primary airport or a nonprimary airport from certain airport development and noise compatibility planning program funds for: (1) the construction or improvement of a nonapproach control tower (formerly known as a level I air traffic control tower); (2) the acquisition and installation of air traffic control, communications, and related equipment to be used in that tower; and (3) reimbursement for the cost of tower construction or improvement, and acquisition and installation in the tower of such equipment, if certain requirements are met. Revises eligibility requirements with respect to such grants.Limits the Federal share of cost of construction of a nonapproach control tower to no more $1.1 million.(Sec. 4) Authorizes the Administrator of the Federal Aviation Administration to enter into a lease agreement or contract agreement with a private entity to provide for construction and operation of a nonapproach control tower. Sets forth certain agreement terms and conditions.(Sec. 5) Directs the Secretary to study and report to Congress on the feasibility, costs, and benefits of allowing an airport sponsor to use up to ten percent of airport planning and development and noise compatibility planning funds apportioned to it to pay the non-Federal share of the cost of operation of an air traffic control tower.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Airport Safety, Security, and 
Air Service Improvement Act of 2002''.

SEC. 2. INCLUSION OF TOWERS IN AIRPORT DEVELOPMENT.

    Section 47102(3) of title 49, United States Code, is amended by 
adding at the end the following:
                    ``(M) constructing an air traffic control tower or 
                acquiring and installing air traffic control, 
                communications, and related equipment at an air traffic 
                control tower under the terms specified in section 
                47124(b)(4).''.

SEC. 3. CONSTRUCTION OF AIR TRAFFIC CONTROL TOWERS.

    (a) In General.--Section 47124(b)(4) of title 49, United States 
Code, is amended to read as follows:
            ``(4) Construction of air traffic control towers.--
                    ``(A) Grants.--The Secretary may provide grants to 
                a sponsor of--
                            ``(i) a primary airport--
                                    ``(I) from amounts made available 
                                under sections 47114(c)(1) and 
                                47114(c)(2) for the construction or 
                                improvement of a nonapproach control 
                                tower, as defined by the Secretary, and 
                                for the acquisition and installation of 
                                air traffic control, communications, 
                                and related equipment to be used in 
                                that tower;
                                    ``(II) from amounts made available 
                                under sections 47114(c)(1) and 
                                47114(c)(2) for reimbursement for the 
                                cost of construction or improvement of 
                                a nonapproach control tower, as defined 
                                by the Secretary, incurred after 
                                October 1, 1996, if the sponsor 
                                complied with the requirements of 
                                sections 47107(e), 47112(b), and 
                                47112(c) in constructing or improving 
                                that tower; and
                                    ``(III) from amounts made available 
                                under sections 47114(c)(1) and 
                                47114(c)(2) for reimbursement for the 
                                cost of acquiring and installing in 
                                that tower air traffic control, 
                                communications, and related equipment 
                                that was acquired or installed after 
                                October 1, 1996; and
                            ``(ii) a public-use airport that is not a 
                        primary airport--
                                    ``(I) from amounts made available 
                                under sections 47114(c)(2) and 47114(d) 
                                for the construction or improvement of 
                                a nonapproach control tower, as defined 
                                by the Secretary, and for the 
                                acquisition and installation of air 
                                traffic control, communications, and 
                                related equipment to be used in that 
                                tower;
                                    ``(II) from amounts made available 
                                under sections 47114(c)(2) and 
                                47114(d)(3)(A) for reimbursement for 
                                the cost of construction or improvement 
                                of a nonapproach control tower, as 
                                defined by the Secretary, incurred 
                                after October 1, 1996, if the sponsor 
                                complied with the requirements of 
                                sections 47107(e), 47112(b), and 
                                47112(c) in constructing or improving 
                                that tower; and
                                    ``(III) from amounts made available 
                                under sections 47114(c)(2) and 
                                47114(d)(3)(A) for reimbursement for 
                                the cost of acquiring and installing in 
                                that tower air traffic control, 
                                communications, and related equipment 
                                that was acquired or installed after 
                                October 1, 1996.
                    ``(B) Eligibility.--An airport sponsor shall be 
                eligible for a grant under this paragraph only if--
                            ``(i)(I) the sponsor is a participant in 
                        the Federal Aviation Administration contract 
                        tower program established under subsection (a) 
                        and continued under paragraph (1) or the pilot 
                        program established under paragraph (3); or
                            ``(II) construction of a nonapproach 
                        control tower would qualify the sponsor to be 
                        eligible to participate in such program;
                            ``(ii) the sponsor certifies that it will 
                        pay not less than 10 percent of the cost of the 
                        activities for which the sponsor is receiving 
                        assistance under this paragraph;
                            ``(iii) the Secretary affirmatively accepts 
                        the proposed contract tower into a contract 
                        tower program under this section and certifies 
                        that the Secretary will seek future 
                        appropriations to pay the Federal Aviation 
                        Administration's cost of the contract to 
                        operate the tower to be constructed under this 
                        paragraph;
                            ``(iv) the sponsor certifies that it will 
                        pay its share of the cost of the contract to 
                        operate the tower to be constructed under this 
                        paragraph; and
                            ``(v) in the case of a tower to be 
                        constructed under this paragraph from amounts 
                        made available under section 47114(d)(2) or 
                        47114(d)(3)(B), the Secretary certifies that--
                                    ``(I) the Federal Aviation 
                                Administration has consulted the State 
                                within the borders of which the tower 
                                is to be constructed and the State 
                                supports the construction of the tower 
                                as part of its State airport capital 
                                plan; and
                                    ``(II) the selection of the tower 
                                for funding is based on objective 
                                criteria, giving no weight to any 
                                congressional committee report, joint 
                                explanatory statement of a conference 
                                committee, or statutory designation.
                    ``(C) Limitation on federal share.--The Federal 
                share of the cost of construction of a nonapproach 
                control tower under this paragraph may not exceed 
                $1,100,000.''.
    (b) Conforming Amendments.--Section 47124(b) of such title is 
amended--
            (1) in paragraph (3)(A) by striking ``Level I air traffic 
        control towers, as defined by the Secretary,'' and inserting 
        ``nonapproach control towers, as defined by the Secretary,''; 
        and
            (2) in paragraph (3)(E) by striking ``Subject to paragraph 
        (4)(D), of'' and inserting ``Of''.
    (c) Savings Clause.--Notwithstanding the amendments made by this 
section, the 2 towers for which assistance is being provided on the day 
before the date of enactment of this Act under section 47124(b)(4) of 
title 49, United States Code, as in effect on such day, may continue to 
be provided such assistance under the terms of such section.

SEC. 4. NONAPPROACH CONTROL TOWERS.

    (a) In General.--The Administrator of the Federal Aviation 
Administration may enter into a lease agreement or contract agreement 
with a private entity to provide for construction and operation of a 
nonapproach control tower as defined by the Secretary of 
Transportation.
    (b) Terms and Conditions.--An agreement entered into under this 
section--
            (1) shall be negotiated under such procedures as the 
        Administrator considers necessary to ensure the integrity of 
        the selection process, the safety of air travel, and to protect 
        the interests of the United States;
            (2) may provide a lease option to the United States, to be 
        exercised at the discretion of the Administrator, to occupy any 
        general-purpose space in a facility covered by the agreement;
            (3) shall not require, unless specifically determined 
        otherwise by the Administrator, Federal ownership of a facility 
        covered under the agreement after the expiration of the 
        agreement;
            (4) shall describe the consideration, duties, and 
        responsibilities for which the United States and the private 
        entity are responsible;
            (5) shall provide that the United States will not be liable 
        for any action, debt, or liability of any entity created by the 
        agreement;
            (6) shall provide that the private entity may not execute 
        any instrument or document creating or evidencing any 
        indebtedness with respect to a facility covered by the 
        agreement unless such instrument or document specifically 
        disclaims any liability of the United States under the 
        instrument or document; and
            (7) shall include such other terms and conditions as the 
        Administrator considers appropriate.

SEC. 5. USE OF APPORTIONMENTS TO PAY NON-FEDERAL SHARE OF OPERATION 
              COSTS.

    (a) Study.--The Secretary of Transportation shall conduct a study 
of the feasibility, costs, and benefits of allowing the sponsor of an 
airport to use not to exceed 10 percent of amounts apportioned to the 
sponsor under section 47114 to pay the non-Federal share of the cost of 
operation of an air traffic control tower under section 47124(b) of 
title 49, United States Code.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall transmit to Congress a report on the 
results of the study.

            Passed the House of Representatives June 20, 2002.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.