SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Air Traffic Control Service 
Improvement Act of 1994''.

         TITLE I--UNITED STATES AIR TRAFFIC SERVICE CORPORATION

SEC. 101. ESTABLISHMENT OF CORPORATION.

    (a) In General.--There is established a wholly owned Government 
corporation, to be known as the ``United States Air Traffic Service 
Corporation'', to operate the air traffic control system of the United 
States after the completion of transfers of air traffic control 
facilities and equipment under section 201.
    (b) Limitations.--The Corporation--
            (1) except as provided in subsection (c), shall not be an 
        agency or establishment of the United States Government;
            (2) shall have its principal office in the District of 
        Columbia and is deemed to be a resident thereof;
            (3) to the extent consistent with this Act, shall be 
        subject to the District of Columbia Business Corporation Act 
        (D.C. Code, Sec. 29-301 et seq.);
            (4) shall be subject to safety regulatory oversight of the 
        Federal Aviation Administration; and
            (5) shall be self-sufficient through revenues earned by 
        charging fees to users of the air traffic control system.
    (c) War or National Emergency.--
            (1) Transfer of functions.--In the event of a declared war 
        or national emergency, the President may by Executive order 
        transfer any functions, personnel, property, records, funds, 
        and other matters relating to the Corporation to the Department 
        of Defense.
            (2) Development of plans.--The Board, in consultation with 
        the Secretary of Defense, shall develop plans for the effective 
        discharge of the functions of the Corporation in the event of a 
        declared war or national emergency.

SEC. 102. CORPORATION.

    (a) Chief Executive Officer.--Within 30 days after the date of the 
enactment of this Act, the President shall appoint an interim chief 
executive officer of the Corporation to handle the preliminary 
development of the Corporation before the appointment of the board of 
directors. The interim chief executive officer shall serve as a member 
of the board until the board elects a permanent chief executive 
officer. The chief executive officer (other than the interim chief 
executive officer) shall be selected by the board. The first executive 
officer to be selected shall be selected not later than the 180th day 
following the date of the first meeting of the board.
    (b) Appointment of Transition Team.--The interim chief executive 
officer shall appoint a 6-member transition team which shall be 
responsible for getting the Corporation operational and shall serve 
until the Corporation is operational.
    (c) Functions of Transition Team.--The transition team appointed 
under this section shall--
            (1) subject to approval by the President, draft and file 
        articles of incorporation for the Corporation, draft the 
        initial bylaws of the Corporation, and take any other actions 
        necessary for the establishment and initial operation of the 
        corporation; and
            (2) after appointment of the board, the transition team 
        shall work under the board until the Corporation is 
        operational.
    (d) Articles of Incorporation.--The articles of incorporation filed 
by the transition team in accordance with subsection (c)--
            (1) shall provide for cumulative voting under section 27(d) 
        of the District of Columbia Business Corporation Act (D.C. 
        Code, Sec. 29-327(d)); and
            (2) may be amended, altered, changed, or repealed by a vote 
        of not less than \2/3\ of the members of the board.
    (e) Budget.--The Corporation shall be subject to provisions of the 
Government Corporation Control Act, shall submit an annual business-
type budget to Congress, and shall have an annual financial audit 
performed by an independent public accountant.

SEC. 103. BOARD OF DIRECTORS AND OFFICERS.

    (a) Board of Directors.--
            (1) Membership.--The Corporation shall be governed by a 
        board of directors with 11 members. The board shall be 
        comprised of the chief executive officer of the Corporation, 
        the Secretary of Transportation, and the Secretary of Defense 
        (or their designees), and 8 members appointed by the President 
        with the advice and consent of the Senate.
            (2) Appointed members.--The President shall appoint the 
        initial 8 appointed members of the board so that thereafter the 
        appointed members will serve on the board for 5-year staggered 
        terms. The 8 members of the board appointed by the President 
        shall be as follows:
                    (A) 3 members from among persons who represent the 
                views of commercial aviation interests.
                    (B) 1 member from among persons who represent the 
                views of airports.
                    (C) 1 member from among persons who represent the 
                views of employees of the Federal Aviation 
                Administration and the Corporation who belong to a 
                union.
                    (D) 1 member from among persons who represent the 
                views of general business interests.
                    (E) 2 members from among persons who represent the 
                views of noncommercial aviation interests.
            (3) Chairperson.--The board shall elect one of its members 
        annually to serve as Chairperson.
            (4) Compensation and expenses.--Members of the board may 
        receive compensation in accordance with rules established by 
        the board.
            (5) Functions of the board.--The board shall meet at least 
        quarterly and shall be responsible for strategic planning and 
        approving major financial decisions of the Corporation, the 
        annual budget, and the level of user fees. The board shall 
        provide for public notice and comment on its fee proposals. The 
        board shall have authority over decisions about contracting for 
        air traffic control facilities, including Level I towers and 
        navigational facilities and equipment.
            (6) Function of the secretary of transportation.--
                    (A) User fees.--In consultation with the Attorney 
                General, the Secretary of Transportation shall have the 
                authority to disapprove the kind and level of user fees 
                established by the board if such fees are not 
                reasonable as determined by the Secretary under 
                criteria established by the Secretary. Not later than 
                180 days after the date of the enactment of this Act, 
                the Secretary shall issue regulations establishing such 
                criteria. In determining if fees are reasonable under 
                this paragraph, the Secretary shall consider if the 
                fees will harm new entrant air carriers, diminish 
                competition among users of the air traffic control 
                system, or lead to excessive charges for air service.
                    (B) Borrowing.--The Secretary of Transportation 
                shall have the authority to disapprove borrowing by the 
                Corporation under the following circumstances:
                            (i) If the Corporation seeks to borrow 
                        funds at levels which exceed a reasonable 
                        prospect for repayment as determined by the 
                        Secretary.
                            (ii) If the Corporation seeks to borrow 
                        funds for inappropriate, wasteful, or 
                        unreasonably speculative activities as 
                        determined by the Secretary.
                    (C) Intermodal issues.--The Secretary of 
                Transportation shall have the authority to address 
                intermodal issues affecting the Corporation.
            (7) Function of the secretary of defense.--The Secretary of 
        Defense shall address national security concerns as they relate 
        to the Corporation.
    (b) Safety Committee.--
            (1) Appointment.--The board shall establish a 3-member 
        permanent safety committee from among persons who are citizens 
        of the United States to review the operations of the 
        Corporation to ensure the highest level of aviation safety. 
        Persons appointed under this paragraph shall serve at the 
        pleasure of the board.
            (2) Compensation.--Individuals appointed under paragraph 
        (1) shall be compensated at rates fixed by the board.
    (c) CEO.--The Corporation shall have a chief executive officer who 
is elected by the board and who shall serve at the discretion of the 
board. The board shall fix the term of employment and compensation of 
the chief executive officer.
    (d) Restriction on Receipt of Other Salary.--An officer of the 
Corporation shall not receive any salary from any source other than the 
Corporation during the period of the officer's employment by the 
Corporation.

SEC. 104. POWERS OF CORPORATION.

    The Corporation may--
            (1) plan, initiate, construct, own, manage, and operate, by 
        itself or in cooperation with other entities, an air traffic 
        control system;
            (2) furnish, for hire, air traffic control services to air 
        transportation common carriers, and other operators of civil 
        aircraft;
            (3) establish reasonable nondiscriminatory fees for the 
        provision of air traffic control services;
            (4) enter into contracts under which other entities may 
        operate individual air traffic control facilities on behalf of 
        the Corporation;
            (5) acquire, by construction, purchase, or gift, physical 
        facilities, equipment, and devices necessary to the operations 
        of the Corporation, including air traffic control and 
        associated equipment and facilities; and
            (6) conduct or contract for the conduct of research and 
        development related to the operations of the Corporation and 
        establish technical specifications of all elements of the air 
        traffic control system.

SEC. 105. FOREIGN BUSINESS NEGOTIATIONS OF CORPORATION.

    (a) Negotiations of Corporation.--Whenever the Corporation enters 
into negotiations with any foreign entity with respect to facilities, 
operations, and services authorized by this Act to be conducted by the 
Corporation--
            (1) the Corporation shall notify the Secretary of State 
        regarding the initiation, conduct, and foreign policy 
        implications of such negotiations; and
            (2) the Secretary of State shall advise the Corporation of 
        relevant foreign policy considerations and, upon request of the 
        Corporation, shall render such assistance as may be 
        appropriate.
    (b) Negotiations of Secretary of State.--The Secretary of State 
shall consult with the Corporation with respect to all negotiations 
conducted by the Secretary regarding matters which relate to air 
traffic control.

SEC. 106. SANCTIONS.

    (a) Petition for Relief.--Except as otherwise prohibited by law--
            (1) if the Corporation engages in any activity, or takes 
        any action in furtherance of any policy, which is inconsistent 
        with the policy and purposes of this Act; or
            (2) if any other person--
                    (A) violates any provision of this Act;
                    (B) obstructs or interferes with any activity 
                authorized by this Act;
                    (C) refuses, fails, or neglects to discharge any 
                duty or responsibility under this Act; or
                    (D) threatens any such violation, obstruction, 
                interference, refusal, failure, or neglect;
        the district court of the United States for any district in 
        which such Corporation or other person resides or may be found 
        shall have jurisdiction, upon petition of the Attorney General 
        of the United States, to grant such equitable relief as may be 
        necessary or appropriate to prevent or terminate such activity.
    (b) Punishment, Liability, or Sanction Under Other Provisions.--
Nothing contained in this section shall be considered to relieve any 
person of any liability, punishment, or sanction under any other law.

SEC. 107. REPORT.

    (a) Corporation.--The Corporation shall transmit to the President 
and Congress, annually and at such other times as it considers 
appropriate, a comprehensive and detailed report of its operations, 
activities, and accomplishments under this Act.
    (b) Administrator.--The Administrator shall transmit to the 
Congress, annually and at such other times as the Administrator 
considers appropriate, an evaluation of the capital structure of the 
Corporation so as to assure the Congress that such structure is 
consistent with the most efficient and economical operation of the 
Corporation.

                        TITLE II--MISCELLANEOUS

SEC. 201. TRANSFER OF FACILITIES AND EQUIPMENT TO CORPORATION.

    (a) In General.--Not later than 1 year after the date the Senate 
approves the appointments of the President under section 102(a), the 
Secretary of Transportation shall take such steps as may be necessary--
            (1) to transfer to the Corporation all right, title, and 
        interest of the United States in, and all control of the United 
        States over, all facilities and equipment under the 
        jurisdiction of the Administration by the operational date of 
        the Corporation, which are part of the air traffic control 
        system including the air route traffic centers, terminal radar 
        control centers, VHF omnidirectional radio stations, long-range 
        and terminal radar systems, flight service stations, and 
        related facilities and equipment; and
            (2) to transfer all right of the United States in airport 
        control towers, landing aids, and landing slots to owners of 
        the airport where such towers and aids are located and to which 
        such landing slots relate.
    (b) Compensation.--In consideration for property transferred by the 
United States pursuant to subsection (a), the Corporation shall pay 
into the General Fund of the Treasury such amount as the Corporation 
and the Secretary of Transportation agree is reasonable and shall 
relinquish all rights of the Corporation to amounts in the Airport and 
Airway Trust Fund.

SEC. 202. AIRPORT FEES.

    (a) In General.--Notwithstanding any other law, on and after the 
date of the transfers carried out by the Secretary of Transportation 
pursuant to section 201(a), an airport may establish and charge fees 
for use of airport facilities by, and provision of services to, air 
carriers and air transportation passengers, including--
            (1) fees which air carriers must pay for landing aircraft 
        at or taking aircraft off from such facilities; and
            (2) fees which passengers must pay for departing from such 
        facilities.
    (b) Criteria.--Fees established under subsection (a)--
            (1) shall be in an amount equal to the cost to the airport 
        of providing the particular use or service for which the fee is 
        charged, plus a reasonable profit; and
            (2) may vary according to time of day and demand for the 
        facility or service.

SEC. 203. AIRPORT ACCESS.

    (a) Prohibition.--An owner, operator, or other person in charge of 
a public-use airport shall not deny access to and use of the facilities 
of such airport by any person operating an aircraft which is in 
compliance with all laws relating to aviation safety if the person 
offers to pay all fees which are usually charged for such use.
    (b) Penalty.--Any person who violates subsection (a) shall be 
subject to a civil penalty under section 46301 of title 49, United 
States Code.

SEC. 204. LIABILITY OF CORPORATION.

    The Corporation shall be treated as a Federal agency for purposes 
of chapter 171 of title 28, United States Code; except that judgments, 
awards, settlements, interest, and costs of claims resulting from air 
traffic control system liability, shall not be paid from amounts 
available under section 1304 of title 31, United States Code, but shall 
be paid from amounts otherwise available to the Corporation. The 
Corporation may secure its own insurance for claims resulting from air 
traffic control system liability. The Corporation shall be responsible 
for any legal or administrative costs for air traffic control-related 
litigation. The Corporation may secure liability insurance for the 
board of directors. The Corporation may sue or be sued in its corporate 
name. The Secretary of Transportation shall identify potential 
environmental liabilities of facilities before their transfer to the 
Corporation.

SEC. 205. DEFINITIONS.

    As used in this Act--
            (1) the terms ``airport'' and ``public-use airport'', 
        respectively, have the meaning given such terms by section 
        47102 of title 49, United States Code;
            (2) the terms ``air carrier'', ``aircraft'', ``air 
        transportation'', ``civil aircraft'', ``citizen of the United 
        States'', ``person'' and ``United States'', respectively, have 
        the meaning given such terms by section 40102 of title 49, 
        United States Code;
            (3) the term ``board'' means the board of directors of the 
        Corporation appointed under section 103;
            (4) the term ``Corporation'' means the corporation 
        established by section 101 of this Act;
            (5) the term ``Administration'' means the Federal Aviation 
        Administration; and
            (6) the term ``Administrator'' means the Administrator of 
        the Federal Aviation Administration.

SEC. 206. CONFORMING AMENDMENTS.

    The Secretary of Transportation shall submit to Congress not later 
than 1 year after the date of the enactment of this Act such conforming 
amendments as the Secretary of Transportation determines are necessary 
to fully implement this Act.
                                 
HR 5209 IH----2
TABLE OF CONTENTS: 
     Title I:  United States Air Traffic Service Corporation 
     Title II:  Miscellaneous 
Air Traffic Control Service Improvement Act of 1994 - 
Title I: United States Air Traffic Service Corporation
 - Establishes, as a Government corporation, the United States Air Traffic Service Corporation to operate the U.S. air traffic control system. 
Title II:  Miscellaneous
 - Directs the Secretary of Transportation to transfer to the Corporation all right, title, and interest of the United States over facilities, including airport control towers, landing aids, landing slots, and equipment which are part of the air traffic control system. 
Authorizes airports to charge fees for use of airport facilities by, and provision of services to, air carriers and air transportation passengers. 
Prohibits owners or operators of public-use airports from denying access to and use of airport facilities by any person operating an aircraft which is in compliance with all aviation safety laws if such person offers to pay all user fees. Subjects persons who violate such prohibition to a civil penalty.
Air Traffic Control Service Improvement Act of 1994