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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 907 Introduced in House (IH)]

106th CONGRESS
  1st Session
                                H. R. 907

 To amend title 49, United States Code, to authorize the Secretary of 
 Transportation to implement a pilot program to improve access to the 
  national transportation system for small communities, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 2, 1999

 Mr. DeFazio introduced the following bill; which was referred to the 
             Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL

 
 To amend title 49, United States Code, to authorize the Secretary of 
 Transportation to implement a pilot program to improve access to the 
  national transportation system for small communities, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Air Service 
Restoration Act''.
    (b) References.--Except as otherwise specifically provided, 
whenever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision of law, the 
reference shall be considered to be made to a section or other 
provision of title 49, United States Code.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) a national transportation system providing safe, high 
        quality service to all areas of the United States is essential 
        to interstate commerce and the economic well-being of cities 
        and towns throughout the United States;
            (2) taxpayers throughout the United States have supported 
        and helped to fund the United States aviation infrastructure 
        and have a right to expect that aviation services will be 
        provided in an equitable and fair manner to every region of the 
        country;
            (3) some communities have not benefited from airline 
        deregulation and access to essential airports and air services 
        has been limited;
            (4) air service to a number of small communities has 
        suffered since deregulation;
            (5) studies by the Department of Transportation have 
        documented that, since the airline industry was deregulated in 
        1978--
                    (A) 34 small communities have lost service and many 
                small communities have had jet aircraft service 
                replaced by turboprop aircraft service;
                    (B) out of a total of 320 small communities, the 
                number of small communities being served by major air 
                carriers declined from 213 in 1978 to 33 in 1995;
                    (C) the number of small communities receiving 
                service to only one major hub airport increased from 79 
                in 1978 to 134 in 1995; and
                    (D) the number of small communities receiving 
                multiple-carrier service decreased from 136 in 1978 to 
                122 in 1995; and
            (6) improving air service to small and medium-sized 
        communities that have not benefited from fare reductions and 
        improved service since deregulation will likely entail a range 
        of Federal, State, regional, local, and private sector 
        initiatives.

SEC. 3. PURPOSE.

    The purpose of this Act is to facilitate, through a pilot program, 
incentives and projects that will help communities to improve their 
access to the essential airport facilities of the national air 
transportation system through public-private partnerships and to 
identify and establish ways to overcome the unique policy, economic, 
geographic, and marketplace factors that may inhibit the availability 
of quality, affordable air service to small communities.

SEC. 4. ESTABLISHMENT OF SMALL COMMUNITY AVIATION DEVELOPMENT PROGRAM.

    Section 102 is amended by adding at the end the following:
    ``(g) Small Community Air Service Development Program.--
            ``(1) Establishment.--The Secretary shall establish a 5-
        year pilot aviation development program to be administered by a 
        program director designated by the Secretary.
            ``(2) Functions.--The program director shall--
                    ``(A) function as a facilitator between small 
                communities and air carriers;
                    ``(B) carry out section 41743 of this title;
                    ``(C) carry out the airline service restoration 
                program under sections 41744, 41745, and 41746 of this 
                title;
                    ``(D) ensure that the Bureau of Transportation 
                Statistics collects data on passenger information to 
                assess the service needs of small communities;
                    ``(E) work with and coordinate efforts with other 
                Federal, State, and local agencies to increase the 
                viability of service to small communities and the 
                creation of aviation development zones; and
                    ``(F) provide policy recommendations to the 
                Secretary and the Congress that will ensure that small 
                communities have access to quality, affordable air 
                transportation services.
            ``(3) Reports.--The program director shall provide an 
        annual report to the Secretary and Congress beginning in 2000 
        that--
                    ``(A) analyzes the availability of air 
                transportation services in small communities, 
                including, but not limited to, an assessment of the air 
                fares charged for air transportation services in small 
                communities compared to air fares charged for air 
                transportation services in larger metropolitan areas 
                and an assessment of the levels of service, measured by 
                types of aircraft used, the availability of seats, and 
                scheduling of flights, provided to small communities;
                    ``(B) identifies the policy, economic, geographic, 
                and marketplace factors that inhibit the availability 
                of quality, affordable air transportation services to 
                small communities; and
                    ``(C) provides policy recommendations to address 
                the policy, economic, geographic, and marketplace 
                factors inhibiting the availability of quality, 
                affordable air transportation services to small 
                communities.''.

SEC. 5. COMMUNITY-CARRIER AIR SERVICE PROGRAM.

    (a) In General.--Subchapter II of chapter 417 is amended by adding 
at the end the following:
``Sec. 41743. Air service program for small communities
    ``(a) Communities Program.--Under advisory guidelines prescribed by 
the Secretary of Transportation, a small community or a consortia of 
small communities or a State may develop an assessment of its air 
service requirements, in such form as the program director designated 
by the Secretary under section 102(g) may require, and submit the 
assessment and service proposal to the program director.
    ``(b) Selection of Participants.--In selecting community programs 
for participation in the communities program under subsection (a), the 
program director shall apply criteria, including geographical diversity 
and the presentation of unique circumstances, that will demonstrate the 
feasibility of the program. For purposes of this subsection, the 
application of geographical diversity criteria means criteria that--
            ``(1) will promote the development of a national air 
        transportation system; and
            ``(2) will involve the participation of communities in all 
        regions of the country.
    ``(c) Carriers Program.--The program director shall invite part 121 
air carriers and regional/commuter carriers (as such terms are defined 
in section 41715(d) of this title) to offer service proposals in 
response to, or in conjunction with, community aircraft service 
assessments submitted to the office under subsection (a). A service 
proposal under this subsection shall include--
            ``(1) an assessment of potential daily passenger traffic, 
        revenues, and costs necessary for the carrier to offer the 
        service;
            ``(2) a forecast of the minimum percentage of that traffic 
        the carrier would require the community to garner in order for 
        the carrier to start up and maintain the service; and
            ``(3) the costs and benefits of providing jet service by 
        regional or other jet aircraft.
    ``(d) Program Support Function.--The program director shall work 
with small communities and air carriers, taking into account their 
proposals and needs, to facilitate the initiation of service. The 
program director--
            ``(1) may work with communities to develop innovative means 
        and incentives for the initiation of service;
            ``(2) may obligate funds authorized under section 6 of the 
        Air Service Restoration Act to carry out this section;
            ``(3) shall continue to work with both the carriers and the 
        communities to develop a combination of community incentives 
        and carrier service levels that--
                    ``(A) are acceptable to communities and carriers; 
                and
                    ``(B) do not conflict with other Federal or State 
                programs to facilitate air transportation to the 
                communities;
            ``(4) designate an airport in the program as an Air Service 
        Development Zone and work with the community on means to 
        attract business to the area surrounding the airport, to 
        develop land use options for the area, and provide data, 
        working with the Department of Commerce and other agencies; and
            ``(5) take such other action under this subchapter as may 
        be appropriate.
    ``(e) Limitations.--
            ``(1) Community support.--The program director may not 
        provide financial assistance under subsection (c)(2) to any 
        community unless the program director determines that--
                    ``(A) a public-private partnership exists at the 
                community level to carry out the community's proposal;
                    ``(B) the community will make a substantial 
                financial contribution that is appropriate for that 
                community's resources, but of not less than 25 percent 
                of the cost of the project in any event;
                    ``(C) the community has established an open process 
                for soliciting air service proposals; and
                    ``(D) the community will accord similar benefits to 
                air carriers that are similarly situated.
            ``(2) Amount.--The program director may not obligate more 
        than $100,000,000 of the amounts authorized under section 6 of 
        the Air Service Restoration Act over the 5 years of the 
        program.
            ``(3) Number of participants.--The program established 
        under subsection (a) shall not involve more than 40 communities 
        or consortia of communities.
    ``(f) Report.--The program director shall report through the 
Secretary to Congress annually on the progress made under this section 
during the preceding year in expanding commercial aviation service to 
smaller communities.
``Sec. 41744. Pilot program project authority
    ``(a) In General.--The program director designated by the Secretary 
of Transportation under section 102(g)(1) shall establish a 5-year 
pilot program--
            ``(1) to assist communities and States with inadequate 
        access to the national transportation system to improve their 
        access to that system; and
            ``(2) to facilitate better air service link-ups to support 
        the improved access.
    ``(b) Project Authority.--Under the pilot program established 
pursuant to subsection (a), the program director may--
            ``(1) out of amounts authorized under section 6 of the Air 
        Service Restoration Act, provide financial assistance by way of 
        grants to small communities or consortia of small communities 
        under section 41743 of up to $500,000 per year; and
            ``(2) take such other action as may be appropriate.
    ``(c) Other Action.--Under the pilot program established pursuant 
to subsection (a), the program director may facilitate service by--
            ``(1) working with airports and air carriers to ensure that 
        appropriate facilities are made available at essential 
        airports;
            ``(2) collecting data on air carrier service to small 
        communities; and
            ``(3) providing policy recommendations to the Secretary to 
        stimulate air service and competition to small communities.
    ``(d) Additional Action.--Under the pilot program established 
pursuant to subsection (a), the Secretary shall work with air carriers 
providing service to participating communities and major air carriers 
serving large hub airports (as defined in section 41731(a)(3)) to 
facilitate joint fare arrangements consistent with normal industry 
practice.
``Sec. 41745. Assistance to communities for service
    ``(a) In General.--Financial assistance provided under section 
41743 during any fiscal year as part of the pilot program established 
under section 41744(a) shall be implemented for not more than--
            ``(1) 4 communities within any State at any given time; and
            ``(2) 40 communities in the entire program at any time.
For purposes of this subsection, a consortium of communities shall be 
treated as a single community.
    ``(b) Eligibility.--In order to participate in a pilot project 
under this subchapter, a State, community, or group of communities 
shall apply to the Secretary in such form and at such time, and shall 
supply such information, as the Secretary may require, and shall 
demonstrate to the satisfaction of the Secretary that--
            ``(1) the applicant has an identifiable need for access, or 
        improved access, to the national air transportation system that 
        would benefit the public;
            ``(2) the pilot project will provide material benefits to a 
        broad section of the travelling public, businesses, educational 
        institutions, and other enterprises whose access to the 
        national air transportation system is limited;
            ``(3) the pilot project will not impede competition; and
            ``(4) the applicant has established, or will establish, 
        public-private partnerships in connection with the pilot 
        project to facilitate service to the public.
    ``(c) Coordination With Other Provisions of Subchapter.--The 
Secretary shall carry out the 5-year pilot program authorized by this 
subchapter in such a manner as to complement action taken under the 
other provisions of this subchapter. To the extent the Secretary 
determines to be appropriate, the Secretary may adopt criteria for 
implementation of the 5-year pilot program that are the same as, or 
similar to, the criteria developed under the preceding sections of this 
subchapter for determining which airports are eligible under those 
sections. The Secretary shall also, to the extent possible, provide 
incentives where no direct, viable, and feasible alternative service 
exists, taking into account geographical diversity and appropriate 
market definitions.
    ``(d) Maximization of Participation.--The Secretary shall structure 
the program established pursuant to section 41744(a) in a way designed 
to--
            ``(1) permit the participation of the maximum feasible 
        number of communities and States over a 5-year period by 
        limiting the number of years of participation or otherwise; and
            ``(2) obtain the greatest possible leverage from the 
        financial resources available to the Secretary and the 
        applicant by--
                    ``(A) progressively decreasing, on a project-by-
                project basis, any Federal financial incentives 
                provided under this subchapter over the 5-year period; 
                and
                    ``(B) terminating as early as feasible Federal 
                financial incentives for any project determined by the 
                Secretary after its implementation to be--
                            ``(i) viable without further support under 
                        this subchapter; or
                            ``(ii) failing to meet the purposes of this 
                        subchapter or criteria established by the 
                        Secretary under the pilot program.
    ``(e) Success Bonus.--If Federal financial incentives to a 
community are terminated under subsection (d)(2)(B) because of the 
success of the program in that community, then that community may 
receive a one-time incentive grant to ensure the continued success of 
that program.
    ``(f) Program to Terminate in 5 Years.--No new financial assistance 
may be provided under this subchapter for any fiscal year beginning 
more than 5 years after the date of enactment of the Air Service 
Restoration Act.
``Sec. 41746. Additional authority
    ``In carrying out this subchapter, the Secretary--
            ``(1) may provide assistance to States and communities in 
        the design and application phase of any project under this 
        subchapter, and oversee the implementation of any such project;
            ``(2) may assist States and communities in putting together 
        projects under this subchapter to utilize private sector 
        resources, other Federal resources, or a combination of public 
        and private resources;
            ``(3) may accord priority to service by jet aircraft;
            ``(4) take such action as may be necessary to ensure that 
        financial resources, facilities, and administrative 
        arrangements made under this subchapter are used to carry out 
        the purposes of the Air Service Restoration Act; and
            ``(5) shall work with the Federal Aviation Administration 
        on airport and air traffic control needs of communities in the 
        program.''.
    (b) Conforming Amendment.--The analysis for subchapter II of 
chapter 417 of such title is amended by inserting after the item 
relating to section 41742 the following:

``41743. Air service program for small communities.
``41744. Pilot program project authority.
``41745. Assistance to communities for service.
``41746. Additional authority.''.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    To carry out sections 41743 through 41746 of title 49, United 
States Code, for the 5 fiscal year period beginning with fiscal year 
2000 there are authorized to be appropriated to the Secretary of 
Transportation not more than $100,000,000.

SEC. 7. MARKETING PRACTICES.

    Section 41712 is amended--
            (1) by inserting ``(a) In General.--'' before ``On''; and
            (2) by adding at the end the following:
    ``(b) Marketing Practices That Adversely Affect Service to Small or 
Medium Communities.--Within 180 days after the date of enactment of the 
Air Service Restoration Act, the Secretary shall review the marketing 
practices of air carriers that may inhibit the availability of quality, 
affordable air transportation services to small- and medium-sized 
communities, including--
            ``(1) marketing arrangements between airlines and travel 
        agents;
            ``(2) code-sharing partnerships;
            ``(3) computer reservation system displays;
            ``(4) gate arrangements at airports;
            ``(5) exclusive dealing arrangements; and
            ``(6) any other marketing practice that may have the same 
        effect.
    ``(c) Regulations.--If the Secretary finds, after conducting the 
review required by subsection (b), that marketing practices inhibit the 
availability of such service to such communities, then, after public 
notice and an opportunity for comment, the Secretary shall promulgate 
regulations that address the problem.''.

SEC. 8. NONDISCRIMINATORY INTERLINE INTERCONNECTION REQUIREMENTS.

    (a) In General.--Subchapter I of chapter 417 is amended by adding 
at the end the following:
``Sec. 41717. Interline agreements for domestic transportation
    ``(a) Nondiscriminatory Requirements.--If a major air carrier that 
provides air service to an essential airport facility has any agreement 
involving ticketing, baggage and ground handling, and terminal and gate 
access with another carrier, it shall provide the same services to any 
requesting air carrier that offers service to a community selected for 
participation in the program under section 41743 under similar terms 
and conditions and on a nondiscriminatory basis within 30 days after 
receiving the request, as long as the requesting air carrier meets such 
safety, service, financial, and maintenance requirements, if any, as 
the Secretary may by regulation establish consistent with public 
convenience and necessity. The Secretary must review any proposed 
agreement to determine if the requesting carrier meets operational 
requirements consistent with the rules, procedures, and policies of the 
major carrier. This agreement may be terminated by either party in the 
event of failure to meet the standards and conditions outlined in the 
agreement.''.
    ``(b) Definitions.--In this section the term `essential airport 
facility' means a large hub airport (as defined in section 41731(a)(3)) 
in the contiguous 48 States in which one carrier has more than 50 
percent of such airport's total annual enplanements.''.
    (b) Clerical Amendment.--The analysis for subchapter I of chapter 
417 is amended by adding at the end the following:

``41717. Interline agreements for domestic transportation.''.

SEC. 9. PRICES FOR AIR TRANSPORTATION ON ROUTES USING SINGLE CARRIER 
              DOMINATED AIRPORTS.

    (a) In General.--Chapter 415 is amended by adding at the end the 
following:
``Sec. 41512. Prices for air transportation on routes using single 
              carrier dominated airports
    ``(a) Authority To Request Secretary's Determination.--
            ``(1) In general.--The Secretary of Transportation shall 
        issue a determination as to whether a price established by an 
        air carrier for a route in air transportation that contains a 
        flight segment to or from an airport dominated by the carrier 
        is reasonable if any individual files with the Secretary a 
        written request for the determination.
            ``(2) Secretary not to set price.--In determining whether a 
        price is reasonable under this section, the Secretary may only 
        determine whether the price is reasonable or unreasonable and 
        shall not set the price.
    ``(b) Single Carrier Dominated Airports.--For purposes of 
subsection (a), an airport shall be treated as an airport dominated by 
a carrier if more than 50 percent of the daily passenger enplanements 
at the airport are enplanements of the carrier.
    ``(c) Procedural Regulations.--Not later than 90 days after the 
date of enactment of this section, the Secretary shall publish in the 
Federal Register final regulations, policy statements, or guidelines 
establishing--
            ``(1) the procedures for acting upon a written request 
        filed under subsection (a)(1); and
            ``(2) the standards or guidelines that shall be used by the 
        Secretary in determining under this section whether a price is 
        reasonable.''.
    (b) Conforming Amendment.--The analysis for chapter 415 is amended 
by adding at the end the following:

``41512. Prices for air transportation on routes using single carrier 
                            dominated airports.''.
                                 <all>
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