H. R. 3539

One Hundred Fourth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Wednesday,

the third day of January, one thousand nine hundred and ninety-six

An Act

To amend title 49, United States Code, to reauthorize programs of the Federal

Aviation Administration, 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; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Federal Aviation Reauthorization Act of 1996’’.

(b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

Sec. 2. Amendments to title 49, United States Code.

Sec. 3. Applicability.

TITLE I—AIRPORT AND AIRWAY IMPROVEMENTS

Subtitle A—Reauthorization of FAA Programs

Sec. 101. Airport improvement program.

Sec. 102. Airway facilities improvement program.

Sec. 103. FAA operations.

Subtitle B—Airport Development Financing

Sec. 121. Apportionments.

Sec. 122. Discretionary fund.

Sec. 123. Use of apportioned amounts.

Sec. 124. Designating current and former military airports.

Sec. 125. Period of applicability of amendments.

Subtitle C—Airport Improvement Program Modifications

Sec. 141. Intermodal planning.

Sec. 142. Pavement maintenance program.

Sec. 143. Access to airports by intercity buses.

Sec. 144. Cost reimbursement for projects commenced prior to grant award.

Sec. 145. Selection of projects for grants from discretionary fund.

Sec. 146. Small airport fund.

Sec. 147. State block grant program.

Sec. 148. Innovative financing techniques.

Sec. 149. Pilot program on private ownership of airports.

TITLE II—FAA REFORM

Sec. 201. Short title.

Sec. 202. Definitions.

Sec. 203. Effective date.

Subtitle A—General Provisions

Sec. 221. Findings.

Sec. 222. Purposes.

Sec. 223. Regulation of civilian air transportation and related services by the

Federal Aviation Administration and Department of Transportation.

Sec. 224. Regulations.

Sec. 225. Personnel and services.

Sec. 226. Contracts.
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Sec. 227. Facilities.

Sec. 228. Property.

Sec. 229. Transfers of funds from other Federal agencies.

Sec. 230. Management Advisory Council.

Subtitle B—Federal Aviation Administration Streamlining Programs

Sec. 251. Review of acquisition management system.

Sec. 252. Air traffic control modernization reviews.

Sec. 253. Federal Aviation Administration personnel management system.

Sec. 254. Conforming amendment.

Subtitle C—System To Fund Certain Federal Aviation Administration Functions

Sec. 271. Findings.

Sec. 272. Purposes.

Sec. 273. User fees for various Federal Aviation Administration services.

Sec. 274. Independent assessment of FAA financial requirements; establishment of

National Civil Aviation Review Commission.

Sec. 275. Procedure for consideration of certain funding proposals.

Sec. 276. Administrative provisions.

Sec. 277. Advance appropriations for Airport and Airway Trust Fund activities.

Sec. 278. Rural Air Service Survival Act.

TITLE III—AVIATION SECURITY

Sec. 301. Report including proposed legislation on funding for airport security.

Sec. 302. Certification of screening companies.

Sec. 303. Weapons and explosive detection study.

Sec. 304. Requirement for criminal history records checks.

Sec. 305. Interim deployment of commercially available explosive detection equipment.

Sec. 306. Audit of performance of background checks for certain personnel.

Sec. 307. Passenger profiling.

Sec. 308. Authority to use certain funds for airport security programs and

activities.

Sec. 309. Development of aviation security liaison agreement.

Sec. 310. Regular joint threat assessments.

Sec. 311. Baggage match report.

Sec. 312. Enhanced security programs.

Sec. 313. Report on air cargo.

Sec. 314. Sense of the Senate regarding acts of international terrorism.

TITLE IV—AVIATION SAFETY

Sec. 401. Elimination of dual mandate.

Sec. 402. Protection of voluntarily submitted information.

Sec. 403. Supplemental type certificates.

Sec. 404. Certification of small airports.

Sec. 405. Authorization for State-specific safety measures.

Sec. 406. Aircraft engine standards.

Sec. 407. Accident and safety data classification; report on effects of publication

and automated surveillance targeting systems.

TITLE V—PILOT RECORD SHARING

Sec. 501. Short title.

Sec. 502. Employment investigations of pilot applicants.

Sec. 503. Studies of minimum standards for pilot qualifications and of pay for

training.

Sec. 504. Study of minimum flight time.

TITLE VI—CHILD PILOT SAFETY

Sec. 601. Short title.

Sec. 602. Child pilot safety.

TITLE VII—FAMILY ASSISTANCE

Sec. 701. Short title.

Sec. 702. Assistance by National Transportation Safety Board to families of

passengers involved in aircraft accidents.

Sec. 703. Air carrier plans to address needs of families of passengers involved in

aircraft accidents.

Sec. 704. Establishment of task force.

Sec. 705. Limitation on statutory construction.

TITLE VIII—AIRPORT REVENUE PROTECTION

Sec. 801. Short title.
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Sec. 802. Findings; purpose.

Sec. 803. Definitions.

Sec. 804. Restriction on use of airport revenues.

Sec. 805. Regulations; audits and accountability.

Sec. 806. Conforming amendments to the Internal Revenue Code of 1986.

TITLE IX—METROPOLITAN WASHINGTON AIRPORTS

Sec. 901. Short title.

Sec. 902. Use of leased property.

Sec. 903. Board of Directors.

Sec. 904. Termination of Board of Review.

Sec. 905. Limitations.

Sec. 906. Use of Dulles Airport Access Highway.

Sec. 907. Effect of judicial order.

Sec. 908. Amendment of lease.

Sec. 909. Sense of the Senate.

TITLE X—EXTENSION OF AIRPORT AND AIRWAY TRUST FUND

EXPENDITURES

Sec. 1001. Extension of Airport and Airway Trust Fund expenditures.

TITLE XI—FAA RESEARCH, ENGINEERING, AND DEVELOPMENT

Sec. 1101. Short title.

Sec. 1102. Authorization of appropriations.

Sec. 1103. Research priorities.

Sec. 1104. Research advisory committee.

Sec. 1105. National aviation research plan.

TITLE XII—MISCELLANEOUS PROVISIONS

Sec. 1201. Purchase of housing units.

Sec. 1202. Clarification of passenger facility revenues as constituting trust funds.

Sec. 1203. Authority to close airport located near closed or realigned military base.

Sec. 1204. Gadsden Air Depot, Alabama.

Sec. 1205. Regulations affecting intrastate aviation in Alaska.

Sec. 1206. Westchester County Airport, New York.

Sec. 1207. Bedford Airport, Pennsylvania.

Sec. 1208. Worcester Municipal Airport, Massachusetts.

Sec. 1209. Central Florida Airport, Sanford, Florida.

Sec. 1210. Aircraft Noise Ombudsman.

Sec. 1211. Special rule for privately owned reliever airports.

Sec. 1212. Sense of the Senate regarding the funding of the Federal Aviation

Administration.

Sec. 1213. Rural air fare study.

Sec. 1214. Carriage of candidates in State and local elections.

Sec. 1215. Special flight rules in the vicinity of Grand Canyon National Park.

Sec. 1216. Transfer of air traffic control tower; closing of flight service stations.

Sec. 1217. Location of Doppler radar stations, New York.

Sec. 1218. Train whistle requirements.

Sec. 1219. Increased fees.

Sec. 1220. Structures interfering with air commerce.

Sec. 1221. Hawaii cargo.

Sec. 1222. Limitation on authority of States to regulate gambling devices on vessels.

Sec. 1223. Clarifying amendment.

SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

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. 3. APPLICABILITY.

(a) IN GENERAL.—Except as otherwise specifically provided,

this Act and the amendments made by this Act apply only to

fiscal years beginning after September 30, 1996.

(b) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this

Act or any amendment made by this Act shall be construed as
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affecting funds made available for a fiscal year ending before October 1, 1996.

TITLE I—AIRPORT AND AIRWAY

IMPROVEMENTS

Subtitle A—Reauthorization of FAA

Programs

SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 48103 is

amended—

(1) by striking ‘‘September 30, 1981’’ and inserting ‘‘September 30, 1996’’; and

(2) by striking ‘‘$17,583,500,000’’ and all that follows

through the period at the end and inserting the following:

‘‘$2,280,000,000 for fiscal years ending before October 1, 1997,

and $4,627,000,000 for fiscal years ending before October 1,

1998.’’.

(b) OBLIGATIONAL AUTHORITY.—Section 47104(c) is amended

by striking ‘‘1996’’ and inserting ‘‘1998’’.

SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 48101(a) is

amended by striking paragraphs (1) through (4) and inserting the

following:

‘‘(1) $2,068,000,000 for fiscal year 1997.

‘‘(2) $2,129,000,000 for fiscal year 1998.’’.

(b) CLERICAL AMENDMENTS.—Chapter 481 is amended—

(1) by striking the heading for section 48101 and inserting

the following:

‘‘§ 48101. Air navigation facilities and equipment’’; and

(2) in the table of sections by striking the item relating

to section 48101 and inserting the following:

‘‘48101. Air navigation facilities and equipment.’’.

SEC. 103. FAA OPERATIONS.

(a) AUTHORIZATION OF APPROPRIATIONS FROM GENERAL FUND.— Section 106(k) is amended by striking ‘‘$4,088,000,000’’ and all

that follows through the period at the end and inserting the following: ‘‘$5,158,000,000 for fiscal year 1997 and $5,344,000,000 for

fiscal year 1998.’’.

(b) AUTHORIZATION OF APPROPRIATIONS FROM TRUST FUND.—

Section 48104(c) is amended—

(1) in the subsection heading by striking ‘‘1996’’ and inserting ‘‘1998’’;

(2) in the matter preceding paragraph (1) by striking ‘‘1994,

1995, and 1996’’ and inserting ‘‘1994 through 1998’’; and

(3) in paragraph (2)(A) by striking ‘‘70 percent’’ and inserting ‘‘72.5 percent’’.

(c) LIMITATION ON OBLIGATING OR EXPENDING AMOUNTS.—Section 48108(c) is amended by striking ‘‘1996’’ and inserting ‘‘1998’’.

(d) CLERICAL AMENDMENTS.—Chapter 481 is amended—
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(1) by striking the heading for section 48104 and inserting

the following:

‘‘§ 48104. Operations and maintenance’’; and

(2) in the table of sections by striking the item relating

to section 48104 and inserting the following:

‘‘48104. Operations and maintenance.’’.

Subtitle B—Airport Development

Financing

SEC. 121. APPORTIONMENTS.

(a) AMOUNTS APPORTIONED TO SPONSORS.—

(1) PRIMARY AIRPORTS.—Section 47114(c)(1)(A) is

amended—

(A) by striking ‘‘and’’ at the end of clause (iii);

(B) in clause (iv) by striking ‘‘additional passenger

boarding’’ and inserting ‘‘of the next 500,000 passenger

boardings’’;

(C) by striking the period at the end of clause (iv)

and inserting ‘‘; and’’; and

(D) by adding at the end the following:

‘‘(v) $.50 for each additional passenger boarding at the

airport during the prior calendar year.’’.

(2) CARGO ONLY AIRPORTS.—Section 47114(c)(2) of such title

is amended to read as follows:

‘‘(2) CARGO ONLY AIRPORTS.— ‘‘(A) APPORTIONMENT.—Subject to subparagraph (D),

the Secretary shall apportion an amount equal to 2.5 percent of the amount subject to apportionment each fiscal

year to the sponsors of airports served by aircraft providing

air transportation of only cargo with a total annual landed

weight of more than 100,000,000 pounds.

‘‘(B) SUBALLOCATION FORMULA.—Any funds apportioned under subparagraph (A) to sponsors of airports

described in subparagraph (A) shall be allocated among

those airports in the proportion that the total annual

landed weight of aircraft described in subparagraph (A)

landing at each of those airports bears to the total annual

landed weight of those aircraft landing at all those airports.

‘‘(C) LIMITATION.—Not more than 8 percent of the

amount apportioned under subparagraph (A) may be apportioned for any one airport.

‘‘(D) DISTRIBUTION TO OTHER AIRPORTS.—Before apportioning amounts to the sponsors of airports under subparagraph (A) for a fiscal year, the Secretary may set-aside

a portion of such amounts for distribution to the sponsors

of other airports, selected by the Secretary, that the Secretary finds will be served primarily by aircraft providing

air transportation of only cargo.

‘‘(E) DETERMINATION OF LANDED WEIGHT.—Landed

weight under this paragraph is the landed weight of aircraft landing at each airport described in subparagraph

(A) during the prior calendar year.’’.

(3) REPEAL OF LIMITATION.—Section 47114(c)(3) is repealed.
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(b) AMOUNTS APPORTIONED TO STATES.—Section 47114(d)(2) of

such title is amended—

(1) by striking ‘‘12’’ and inserting ‘‘18.5’’;

(2) in subparagraph (A) by striking ‘‘one’’ and inserting

‘‘0.66’’;

(3) in each of subparagraphs (B) and (C) by striking ‘‘49.5’’

and inserting ‘‘49.67’’; and

(4) in each of subparagraphs (B) and (C) by striking

‘‘except’’ the second place it appears and all that follows through

‘‘title,’’ and inserting ‘‘excluding primary airports but including

reliever and nonprimary commercial service airports,’’.

SEC. 122. DISCRETIONARY FUND.

Section 47115 is amended by striking the second subsection

(f), relating to minimum amounts to be credited, and inserting

the following:

‘‘(g) MINIMUM AMOUNT TO BE CREDITED.—

‘‘(1) GENERAL RULE.—In a fiscal year, there shall be credited to the fund, out of amounts made available under section

48103 of this title, an amount that is at least equal to the

sum of—

‘‘(A) $148,000,000; plus

‘‘(B) the total amount required from the fund to carry

out in the fiscal year letters of intent issued before January

1, 1996, under section 47110(e) of this title or the Airport

and Airway Improvement Act of 1982.

The amount credited is exclusive of amounts that have been

apportioned in a prior fiscal year under section 47114 of this

title and that remain available for obligation.

‘‘(2) REDUCTION OF APPORTIONMENTS.—In a fiscal year in

which the amount credited under subsection (a) is less than

the minimum amount to be credited under paragraph (1), the

total amount calculated under paragraph (3) shall be reduced

by an amount that, when credited to the fund, together with

the amount credited under subsection (a), equals such minimum

amount.

‘‘(3) AMOUNT OF REDUCTION.—For a fiscal year, the total

amount available to make a reduction to carry out paragraph

(2) is the total of the amounts determined under sections

47114(c)(1)(A), 47114(c)(2), 47114(d), and 47117(e) of this title.

Each amount shall be reduced by an equal percentage to achieve

the reduction.

‘‘(4) SPECIAL RULE.—For a fiscal year in which the amount

credited to the fund under this subsection exceeds $300,000,000,

the Secretary shall allocate the amount of such excess as

follows:

‘‘(A) 1⁄3 shall be made available to airports for which

apportionments are made under section 47114(d) of this

title.

‘‘(B) 1⁄3 shall be made available for airport noise

compatibility planning under section 47505(a)(2) of this

title and for carrying out noise compatibility programs

under section 47504(c)(1) of this title.

‘‘(C) 1⁄3 shall be made available to current or former

military airports for which grants may be made under

section 47117(e)(1)(B) of this title.’’.
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SEC. 123. USE OF APPORTIONED AMOUNTS.

(a) PERIOD OF AVAILABILITY.—Section 47117(b) is amended by

inserting before the period at the end of the first sentence the

following: ‘‘or the 3 fiscal years immediately following that year

in the case of a primary airport that had less than .05 percent

of the total boardings in the United States in the preceding calendar

year’’.

(b) SPECIAL APPORTIONMENT CATEGORIES.—Section 47117(e)(1)

is amended—

(1) by striking ‘‘made available under section 48103’’ and

inserting ‘‘available to the discretionary fund under section

47115’’;

(2) by striking subparagraphs (A), (C), and (D);

(3) by redesignating subparagraphs (B) and (E) as subparagraphs (A) and (B), respectively;

(4) in subparagraph (A), as so redesignated, by striking

‘‘at least 12.5’’ and inserting ‘‘At least 31’’;

(5) by adding at the end of subparagraph (A), as so redesignated, the following: ‘‘The Secretary may count the amount

of grants made for such planning and programs with funds

apportioned under section 47114 in that fiscal year in determining whether or not such 31 percent requirement is being met

in that fiscal year.’’;

(6) in subparagraph (B), as so redesignated, by striking

‘‘at least 2.25’’ and all that follows through ‘‘1996,’’ and inserting

‘‘At least 4 percent for each fiscal year thereafter’’; and

(7) by inserting before the period at the end of subparagraph (B), as so redesignated, the following: ‘‘and to sponsors

of noncommercial service airports for grants for operational

and maintenance expenses at any such airport if the amount

of such grants to the sponsor of the airport does not exceed

$30,000 in that fiscal year, if the Secretary determines that

the airport is adversely affected by the closure or realignment

of a military base, and if the sponsor of the airport certifies

that the airport would otherwise close if the airport does not

receive the grant’’.

(c) CONFORMING AMENDMENTS.—Section 47117(e) is amended—

(1) by striking paragraph (2); and

(2) by redesignating paragraph (3) as paragraph (2).

SEC. 124. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

(a) GENERAL REQUIREMENTS.—Section 47118(a) is amended to

read as follows:

‘‘(a) GENERAL REQUIREMENTS.—The Secretary of Transportation

shall designate current or former military airports for which grants

may be made under section 47117(e)(1)(B) of this title. The maximum number of airports bearing such designation at any time

is 12. The Secretary may only so designate an airport (other than

an airport so designated before August 24, 1994) if—

‘‘(1) the airport is a former military installation closed

or realigned under—

‘‘(A) section 2687 of title 10;

‘‘(B) section 201 of the Defense Authorization Amendments and Base Closure and Realignment Act (10 U.S.C.

2687 note); or

‘‘(C) section 2905 of the Defense Base Closure and

Realignment Act of 1990 (10 U.S.C. 2687 note); or
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‘‘(2) the Secretary finds that such grants would—

‘‘(A) reduce delays at an airport with more than 20,000

hours of annual delays in commercial passenger aircraft

takeoffs and landings; or

‘‘(B) enhance airport and air traffic control system

capacity in a metropolitan area or reduce current and

projected flight delays.’’.

(b) ADDITIONAL DESIGNATION PERIODS.—Section 47118(d) is

amended by striking ‘‘designation.’’ and inserting ‘‘designation, and

for subsequent 5-fiscal-year periods if the Secretary determines

that the airport satisfies the designation criteria under subsection

(a) at the beginning of each such subsequent 5-fiscal-year period.’’.

(c) PARKING LOTS, FUEL FARMS, UTILITIES, AND HANGARS.—

Section 47118(f) is amended—

(1) in the heading by striking ‘‘AND UTILITIES’’ and inserting

‘‘UTILITIES, AND HANGARS’’;

(2) by striking ‘‘for the fiscal years ending September 30,

1993–1996,’’ and inserting ‘‘for fiscal years beginning after

September 30, 1992,’’; and

(3) by striking ‘‘and utilities’’ and inserting ‘‘utilities, and

hangars’’.

(d) 2-YEAR EXTENSION.—Section 47117(e)(1)(B), as redesignated

by section 123(b) of this Act, is amended by striking ‘‘and 1996,’’

and inserting ‘‘1996, 1997, and 1998’’.

SEC. 125. PERIOD OF APPLICABILITY OF AMENDMENTS.

The amendments made by this subtitle shall cease to be effective on September 30, 1998. On and after such date, sections 47114,

47115, 47117, and 47118 of title 49, United States Code, shall

read as if such amendments had not been enacted.

Subtitle C—Airport Improvement Program

Modifications

SEC. 141. INTERMODAL PLANNING.

Section 47101(g) is amended to read as follows:

‘‘(g) INTERMODAL PLANNING.—To carry out the policy of subsection (a)(5) of this section, the Secretary of Transportation shall

take each of the following actions:

‘‘(1) COORDINATION IN DEVELOPMENT OF AIRPORT PLANS AND

PROGRAMS.—Cooperate with State and local officials in developing airport plans and programs that are based on overall

transportation needs. The airport plans and programs shall

be developed in coordination with other transportation planning

and considering comprehensive long-range land-use plans and

overall social, economic, environmental, system performance,

and energy conservation objectives. The process of developing

airport plans and programs shall be continuing, cooperative,

and comprehensive to the degree appropriate to the complexity

of the transportation problems.

‘‘(2) GOALS FOR AIRPORT MASTER AND SYSTEM PLANS.—

Encourage airport sponsors and State and local officials to

develop airport master plans and airport system plans that—

‘‘(A) foster effective coordination between aviation planning and metropolitan planning;
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‘‘(B) include an evaluation of aviation needs within

the context of multimodal planning; and

‘‘(C) are integrated with metropolitan plans to ensure

that airport development proposals include adequate

consideration of land use and ground transportation access.

‘‘(3) REPRESENTATION OF AIRPORT OPERATORS ON MPO’S.— Encourage metropolitan planning organizations, particularly in

areas with populations greater than 200,000, to establish membership positions for airport operators.’’.

SEC. 142. PAVEMENT MAINTENANCE PROGRAM.

(a) PAVEMENT MAINTENANCE.—Subchapter I of chapter 471 is

amended by adding at the end the following:

‘‘§ 47132. Pavement maintenance

‘‘(a) IN GENERAL.—The Administrator of the Federal Aviation

Administration shall issue guidelines to carry out a pavement

maintenance pilot project to preserve and extend the useful life

of runways, taxiways, and aprons at airports for which apportionments are made under section 47114(d). The guidelines shall provide that the Administrator may designate not more than 10

projects. The guidelines shall provide criteria for the Administrator

to use in choosing the projects. At least 2 such projects must

be in States without a primary airport that had 0.25 percent or

more of the total boardings in the United States in the preceding

calendar year. In designating a project, the Administrator shall

take into consideration geographical, climatological, and soil diversity.

‘‘(b) EFFECTIVE DATE.—This section shall be effective beginning

on the date of the enactment of this section and ending on September 30, 1999.’’.

(b) COMPLIANCE WITH FEDERAL MANDATES.— (1) USE OF AIP GRANTS.—Section 47102(3) is amended—

(A) in subparagraph (E) by inserting ‘‘or under section

40117’’ before the period at the end; and

(B) in subparagraph (F) by striking ‘‘paid for by a

grant under this subchapter and’’.

(2) USE OF PASSENGER FACILITY CHARGES.—Section

40117(a)(3) is amended—

(A) by inserting ‘‘and’’ at the end of subparagraph

(D);

(B) by striking ‘‘; and’’ at the end of subparagraph

(E) and inserting a period; and

(C) by striking subparagraph (F).

(c) CONFORMING AMENDMENT.—The table of sections for such

subchapter is amended by inserting after the item relating to section

47131 the following:

‘‘47132. Pavement maintenance.’’.

SEC. 143. ACCESS TO AIRPORTS BY INTERCITY BUSES.

Section 47107(a) is amended—

(1) by striking ‘‘and’’ at the end of paragraph (18);

(2) by striking the period at the end of paragraph (19)

and inserting ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(20) the airport owner or operator will permit, to the

maximum extent practicable, intercity buses or other modes

of transportation to have access to the airport, but the sponsor
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does not have any obligation under this paragraph, or because

of it, to fund special facilities for intercity bus service or for

other modes of transportation.’’.

SEC. 144. COST REIMBURSEMENT FOR PROJECTS COMMENCED PRIOR

TO GRANT AWARD.

(a) COST REIMBURSEMENT.—Section 47110(b)(2)(C) is amended

to read as follows:

‘‘(C) if the Government’s share is paid only with amounts

apportioned under paragraphs (1) and (2) of section 47114(c)

of this title and if the cost is incurred—

‘‘(i) after September 30, 1996;

‘‘(ii) before a grant agreement is executed for the

project; and

‘‘(iii) in accordance with an airport layout plan

approved by the Secretary and with all statutory and

administrative requirements that would have been

applicable to the project if the project had been carried

out after the grant agreement had been executed;’’.

(b) USE OF DISCRETIONARY FUNDS.—Section 47110 is amended

by adding at the end the following:

‘‘(g) USE OF DISCRETIONARY FUNDS.—A project for which cost

reimbursement is provided under subsection (b)(2)(C) shall not

receive priority consideration with respect to the use of discretionary

funds made available under section 47115 of this title even if

the amounts made available under paragraphs (1) and (2) of section

47114(c) are not sufficient to cover the Government’s share of the

cost of project.’’.

SEC. 145. SELECTION OF PROJECTS FOR GRANTS FROM DISCRETIONARY FUND.

(a) SELECTION OF PROJECTS FOR GRANTS.—Section 47115(d)

is amended—

(1) by striking ‘‘; and’’ at the end of paragraph (2) and

inserting the following: ‘‘, including, in the case of a project

at a reliever airport, the number of operations projected to

be diverted from a primary airport to the reliever airport as

a result of the project, as well as the cost savings projected

to be realized by users of the local airport system;’’;

(2) by striking the period at the end of paragraph (3)

and inserting a semicolon; and

(3) by adding at the end the following:

‘‘(4) the airport improvement priorities of the States, and

regional offices of the Administration, to the extent such priorities are not in conflict with paragraphs (1) and (2);

‘‘(5) the projected growth in the number of passengers

that will be using the airport at which the project will be

carried out; and

‘‘(6) any increase in the number of passenger boardings

in the preceding 12-month period at the airport at which the

project will be carried out, with priority consideration to be

given to projects at airports at which the number of passenger

boardings increased by at least 20 percent as compared to

the number of passenger boardings in the 12-month period

preceding such period.’’.

(b) PRIORITY FOR LETTERS OF INTENT.—Section 47115, as

amended by section 122 of this Act, is further amended by adding

at the end the following:
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‘‘(h) PRIORITY FOR LETTERS OF INTENT.—In making grants in

a fiscal year with funds made available under this section, the

Secretary shall fulfill intentions to obligate under section 47110(e).’’.

SEC. 146. SMALL AIRPORT FUND.

Section 47116 is amended by adding at the end the following:

‘‘(d) PRIORITY CONSIDERATION FOR CERTAIN PROJECTS.—In making grants to sponsors described in subsection (b)(2), the Secretary

shall give priority consideration to multi-year projects for construction of new runways that the Secretary finds are cost beneficial

and would increase capacity in a region of the United States.’’.

SEC. 147. STATE BLOCK GRANT PROGRAM.

(a) PARTICIPATING STATES.—Section 47128 is amended—

(1) in subsection (a) by striking ‘‘7 qualified States’’ and

inserting ‘‘8 qualified States for fiscal year 1997 and 9 qualified

States for each fiscal year thereafter’’;

(2) in subsection (b)(1)—

(A) by striking ‘‘(1)’’; and

(B) by redesignating subparagraphs (A) through (E)

as paragraphs (1) through (5), respectively; and

(3) by striking subsection (b)(2).

(b) USE OF STATE PRIORITY SYSTEM.—Section 47128(c) is

amended—

(1) by striking ‘‘(b)(1)(B) or (C)’’ and inserting ‘‘(b)(2) or

(b)(3)’’; and

(2) by adding at the end the following: ‘‘In carrying out

this subsection, the Secretary shall permit a State to use the

priority system of the State if such system is not inconsistent

with the national priority system.’’.

(c) REPEAL OF EXPIRATION DATE.— (1) IN GENERAL.—Section 47128 is amended—

(A) by striking ‘‘pilot’’ in the section heading;

(B) by striking ‘‘pilot’’ in subsection (a); and

(C) by striking subsection (d).

(2) CONFORMING AMENDMENT.—The table of sections for

chapter 471 is amended by striking the item relating to section

47128 and inserting the following:

‘‘47128. State block grant program.’’.

SEC. 148. INNOVATIVE FINANCING TECHNIQUES.

(a) IN GENERAL.—The Secretary of Transportation is authorized

to carry out a demonstration program under which the Secretary

may approve applications under subchapter I of chapter 471 of

title 49, United States Code, for not more than 10 projects for

which grants received under such subchapter may be used to implement innovative financing techniques.

(b) PURPOSE.—The purpose of the demonstration program shall

be to provide information on the use of innovative financing techniques for airport development projects to Congress and the

National Civil Aviation Review Commission.

(c) LIMITATION.—In no case shall the implementation of an

innovative financing technique under the demonstration program

result in a direct or indirect guarantee of any airport debt

instrument by the Federal Government.

(d) INNOVATIVE FINANCING TECHNIQUE DEFINED.—In this section, the term ‘‘innovative financing technique’’ shall be limited

to the following:
H. R. 3539—12

(1) Payment of interest.

(2) Commercial bond insurance and other credit enhancement associated with airport bonds for eligible airport development.

(3) Flexible non-Federal matching requirements.

(e) EXPIRATION OF AUTHORITY.—The authority of the Secretary

to carry out the demonstration program shall expire on September

30, 1998.

SEC. 149. PILOT PROGRAM ON PRIVATE OWNERSHIP OF AIRPORTS.

(a) ESTABLISHMENT OF PROGRAM.—

(1) IN GENERAL.—Subchapter I of chapter 471, as amended

by section 804 of this Act, is further amended by adding after

section 47133 the following:

‘‘§ 47134. Pilot program on private ownership of airports

‘‘(a) SUBMISSION OF APPLICATIONS.—If a sponsor intends to

sell or lease a general aviation airport or lease any other type

of airport for a long term to a person (other than a public agency),

the sponsor and purchaser or lessee may apply to the Secretary

of Transportation for exemptions under this section.

‘‘(b) APPROVAL OF APPLICATIONS.—The Secretary may approve,

with respect to not more than 5 airports, applications submitted

under subsection (a) granting exemptions from the following provisions:

‘‘(1) USE OF REVENUES.—

‘‘(A) IN GENERAL.—The Secretary may grant an exemption to a sponsor from the provisions of sections 47107(b)

and 47133 of this title (and any other law, regulation,

or grant assurance) to the extent necessary to permit the

sponsor to recover from the sale or lease of the airport

such amount as may be approved—

‘‘(i) by at least 65 percent of the air carriers serving

the airport; and

‘‘(ii) by air carriers whose aircraft landing at the

airport during the preceding calendar year had a total

landed weight during the preceding calendar year of

at least 65 percent of the total landed weight of all

aircraft landing at the airport during such year.

‘‘(B) LANDED WEIGHT DEFINED.—In this paragraph, the

term ‘landed weight’ means the weight of aircraft transporting passengers or cargo, or both, in intrastate, interstate,

and foreign air transportation, as the Secretary determines

under regulations the Secretary prescribes.

‘‘(2) REPAYMENT REQUIREMENTS.—The Secretary may grant

an exemption to a sponsor from the provisions of sections

47107 and 47152 of this title (and any other law, regulation,

or grant assurance) to the extent necessary to waive any obligation of the sponsor to repay to the Federal Government any

grants, or to return to the Federal Government any property,

received by the airport under this title, the Airport and Airway

Improvement Act of 1982, or any other law.

‘‘(3) COMPENSATION FROM AIRPORT OPERATIONS.—The Secretary may grant an exemption to a purchaser or lessee from

the provisions of sections 47107(b) and 47133 of this title (and

any other law, regulation, or grant assurance) to the extent
H. R. 3539—13

necessary to permit the purchaser or lessee to earn compensation from the operations of the airport.

‘‘(c) TERMS AND CONDITIONS.—The Secretary may approve an

application under subsection (b) only if the Secretary finds that

the sale or lease agreement includes provisions satisfactory to the

Secretary to ensure the following:

‘‘(1) The airport will continue to be available for public

use on reasonable terms and conditions and without unjust

discrimination.

‘‘(2) The operation of the airport will not be interrupted

in the event that the purchaser or lessee becomes insolvent

or seeks or becomes subject to any State or Federal bankruptcy,

reorganization, insolvency, liquidation, or dissolution proceeding or any petition or similar law seeking the dissolution or

reorganization of the purchaser or lessee or the appointment

of a receiver, trustee, custodian, or liquidator for the purchaser

or lessee or a substantial part of the purchaser or lessee’s

property, assets, or business.

‘‘(3) The purchaser or lessee will maintain, improve, and

modernize the facilities of the airport through capital investments and will submit to the Secretary a plan for carrying

out such maintenance, improvements, and modernization.

‘‘(4) Every fee of the airport imposed on an air carrier

on the day before the date of the lease of the airport will

not increase faster than the rate of inflation unless a higher

amount is approved—

‘‘(A) by at least 65 percent of the air carriers serving

the airport; and

‘‘(B) by air carriers whose aircraft landing at the airport

during the preceding calendar year had a total landed

weight during the preceding calendar year of at least 65

percent of the total landed weight of all aircraft landing

at the airport during such year.

‘‘(5) The percentage increase in fees imposed on general

aviation aircraft at the airport will not exceed the percentage

increase in fees imposed on air carriers at the airport.

‘‘(6) Safety and security at the airport will be maintained

at the highest possible levels.

‘‘(7) The adverse effects of noise from operations at the

airport will be mitigated to the same extent as at a public

airport.

‘‘(8) Any adverse effects on the environment from airport

operations will be mitigated to the same extent as at a public

airport.

‘‘(9) Any collective bargaining agreement that covers

employees of the airport and is in effect on the date of the

sale or lease of the airport will not be abrogated by the sale

or lease.

‘‘(d) PARTICIPATION OF CERTAIN AIRPORTS.—

‘‘(1) GENERAL AVIATION AIRPORTS.—If the Secretary

approves under subsection (b) applications with respect to 5

airports, one of the airports must be a general aviation airport.

‘‘(2) LARGE HUB AIRPORTS.—The Secretary may not approve

under subsection (b) more than 1 application submitted by

an airport that had 1 percent or more of the total passenger

boardings (as defined in section 47102) in the United States

in the preceding calendar year.
H. R. 3539—14

‘‘(e) REQUIRED FINDING THAT APPROVAL WILL NOT RESULT IN

UNFAIR METHODS OF COMPETITION.—The Secretary may approve

an application under subsection (b) only if the Secretary finds

that the approval will not result in unfair and deceptive practices

or unfair methods of competition.

‘‘(f) INTERESTS OF GENERAL AVIATION USERS.—In approving

an application of an airport under this section, the Secretary shall

ensure that the interests of general aviation users of the airport

are not adversely affected.

‘‘(g) PASSENGER FACILITY FEES; APPORTIONMENTS; SERVICE

CHARGES.—Notwithstanding that the sponsor of an airport receiving

an exemption under subsection (b) is not a public agency, the

sponsor shall not be prohibited from—

‘‘(1) imposing a passenger facility fee under section 40117

of this title;

‘‘(2) receiving apportionments under section 47114 of this

title; or

‘‘(3) collecting reasonable rental charges, landing fees, and

other service charges from aircraft operators under section

40116(e)(2) of this title.

‘‘(h) EFFECTIVENESS OF EXEMPTIONS.—An exemption granted

under subsection (b) shall continue in effect only so long as the

facilities sold or leased continue to be used for airport purposes.

‘‘(i) REVOCATION OF EXEMPTIONS.—The Secretary may revoke

an exemption issued to a purchaser or lessee of an airport under

subsection (b)(3) if, after providing the purchaser or lessee with

notice and an opportunity to be heard, the Secretary determines

that the purchaser or lessee has knowingly violated any of the

terms specified in subsection (c) for the sale or lease of the airport.

‘‘(j) NONAPPLICATION OF PROVISIONS TO AIRPORTS OWNED BY

PUBLIC AGENCIES.—The provisions of this section requiring the

approval of air carriers in determinations concerning the use of

revenues, and imposition of fees, at an airport shall not be extended

so as to apply to any airport owned by a public agency that is

not participating in the program established by this section.

‘‘(k) AUDITS.—The Secretary may conduct periodic audits of

the financial records and operations of an airport receiving an

exemption under this section.

‘‘(l) REPORT.—Not later than 2 years after the date of the

initial approval of an application under this section, the Secretary

shall transmit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on

implementation of the program under this section.

‘‘(m) GENERAL AVIATION AIRPORT DEFINED.—In this section,

the term ‘general aviation airport’ means an airport that is not

a commercial service airport.’’.

(2) CONFORMING AMENDMENT.—The table of sections for

such chapter is amended by inserting after the item relating

to section 47133, as added by section 804 of this Act, the

following:

‘‘47134. Pilot program on private ownership of airports.’’.

(b) TAXATION.—Section 40116(b) is amended—

(1) by striking ‘‘a State or’’ and inserting ‘‘a State, a’’;

and
H. R. 3539—15

(2) by inserting after ‘‘of a State’’ the following: ‘‘, and

any person that has purchased or leased an airport under

section 47134 of this title’’.

(c) FEDERAL SHARE.—Section 47109(a) is amended—

(1) by striking ‘‘and’’ at the end of paragraph (1);

(2) by striking the period at the end of paragraph (2)

and inserting ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(3) 40 percent for a project funded by the Administrator

from the discretionary fund under section 47115 at an airport

receiving an exemption under section 47134.’’.

(d) RESOLUTION OF AIRPORT-AIR CARRIER DISPUTES CONCERNING AIRPORT FEES.—Section 47129(a) is amended by adding at

the end the following:

‘‘(4) FEES IMPOSED BY PRIVATELY-OWNED AIRPORTS.—In

evaluating the reasonableness of a fee imposed by an airport

receiving an exemption under section 47134 of this title, the

Secretary shall consider whether the airport has complied with

section 47134(c)(4).’’.

TITLE II—FAA REFORM

SEC. 201. SHORT TITLE.

This title may be cited as the ‘‘Air Traffic Management System

Performance Improvement Act of 1996’’.

SEC. 202. DEFINITIONS.

In this title, the following definitions apply:

(1) ADMINISTRATION.—The term ‘‘Administration’’ means

the Federal Aviation Administration.

(2) ADMINISTRATOR.—The term ‘‘Administrator’’ means the

Administrator of the Federal Aviation Administration.

(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of Transportation.

SEC. 203. EFFECTIVE DATE.

The provisions of this title and the amendments made by this

title shall take effect on the date that is 30 days after the date

of the enactment of this Act.

Subtitle A—General Provisions

SEC. 221. FINDINGS.

Congress finds the following:

(1) In many respects the Administration is a unique agency,

being one of the few non-defense government agencies that

operates 24 hours a day, 365 days of the year, while continuing

to rely on outdated technology to carry out its responsibilities

for a state-of-the-art industry.

(2) Until January 1, 1996, users of the air transportation

system paid 70 percent of the budget of the Administration,

with the remaining 30 percent coming from the General Fund.

The General Fund contribution over the years is one measure

of the benefit received by the general public, military, and

other users of Administration’s services.
H. R. 3539—16

(3) The Administration must become a more efficient, effective, and different organization to meet future challenges.

(4) The need to balance the Federal budget means that

it may become more and more difficult to obtain sufficient

General Fund contributions to meet the Administration’s future

budget needs.

(5) Congress must keep its commitment to the users of

the national air transportation system by seeking to spend

all moneys collected from them each year and deposited into

the Airport and Airway Trust Fund. Existing surpluses representing past receipts must also be spent for the purposes

for which such funds were collected.

(6) The aviation community and the employees of the

Administration must come together to improve the system.

The Administration must continue to recognize who its customers are and what their needs are, and to design and redesign

the system to make safety improvements and increase

productivity.

(7) The Administration projects that commercial operations

will increase by 18 percent and passenger traffic by 35 percent

by the year 2002. Without effective airport expansion and system modernization, these needs cannot be met.

(8) Absent significant and meaningful reform, future challenges and needs cannot be met.

(9) The Administration must have a new way of doing

business.

(10) There is widespread agreement within government

and the aviation industry that reform of the Administration

is essential to safely and efficiently accommodate the projected

growth of aviation within the next decade.

(11) To the extent that Congress determines that certain

segments of the aviation community are not required to pay

all of the costs of the government services which they require

and benefits which they receive, Congress should appropriate

the difference between such costs and any receipts received

from such segment.

(12) Prior to the imposition of any new charges or user

fees on segments of the industry, an independent review must

be performed to assess the funding needs and assumptions

for operations, capital spending, and airport infrastructure.

(13) An independent, thorough, and complete study and

assessment must be performed of the costs to the Administration and the costs driven by each segment of the aviation

system for safety and operational services, including the use

of the air traffic control system and the Nation’s airports.

(14) Because the Administration is a unique Federal entity

in that it is a participant in the daily operations of an industry,

and because the national air transportation system faces significant problems without significant changes, the Administration

has been authorized to change the Federal procurement and

personnel systems to ensure that the Administration has the

ability to keep pace with new technology and is able to match

resources with the real personnel needs of the Administration.

(15) The existing budget system does not allow for longterm planning or timely acquisition of technology by the

Administration.
H. R. 3539—17

(16) Without reforms in the areas of procurement, personnel, funding, and governance, the Administration will continue

to experience delays and cost overruns in its major modernization programs and needed improvements in the performance

of the air traffic management system will not occur.

(17) All reforms should be designed to help the Administration become more responsive to the needs of its customers

and maintain the highest standards of safety.

SEC. 222. PURPOSES.

The purposes of this title are—

(1) to ensure that final action shall be taken on all notices

of proposed rulemaking of the Administration within 18 months

after the date of their publication;

(2) to permit the Administration, with Congressional

review, to establish a program to improve air traffic management system performance and to establish appropriate levels

of cost accountability for air traffic management services provided by the Administration;

(3) to establish a more autonomous and accountable

Administration within the Department of Transportation; and

(4) to make the Administration a more efficient and effective organization, able to meet the needs of a dynamic, growing

industry, and to ensure the safety of the traveling public.

SEC. 223. REGULATION OF CIVILIAN AIR TRANSPORTATION AND

RELATED SERVICES BY THE FEDERAL AVIATION

ADMINISTRATION AND DEPARTMENT OF TRANSPORTATION.

(a) IN GENERAL.—Section 106 is amended—

(1) by striking ‘‘The Administrator’’ in subsection (b) and

inserting ‘‘Except as provided in subsection (f) or in other

provisions of law, the Administrator’’; and

(2) in subsection (f)—

(A) by striking ‘‘(f) The Secretary’’ and inserting the

following:

‘‘(f) AUTHORITY OF THE SECRETARY AND THE ADMINISTRATOR.— ‘‘(1) AUTHORITY OF THE SECRETARY.—Except as provided

in paragraph (2), the Secretary’’;

(B) in subsection (f)(1), as so designated—

(i) by moving the remainder of the text 2 ems

to the right;

(ii) by striking ‘‘The Secretary may not’’ and inserting ‘‘Neither the Secretary nor the Administrator may’’;

and

(iii) by striking ‘‘nor’’ and inserting ‘‘or’’; and

(C) by adding at the end the following:

‘‘(2) AUTHORITY OF THE ADMINISTRATOR.—The Administrator—

‘‘(A) is the final authority for carrying out all functions,

powers, and duties of the Administration relating to—

‘‘(i) the appointment and employment of all officers

and employees of the Administration (other than Presidential and political appointees);

‘‘(ii) the acquisition and maintenance of property

and equipment of the Administration;

‘‘(iii) except as otherwise provided in paragraph

(3), the promulgation of regulations, rules, orders,
H. R. 3539—18

circulars, bulletins, and other official publications of

the Administration; and

‘‘(iv) any obligation imposed on the Administrator,

or power conferred on the Administrator, by the Air

Traffic Management System Performance Improvement Act of 1996 (or any amendment made by that

Act);

‘‘(B) shall offer advice and counsel to the President

with respect to the appointment and qualifications of any

officer or employee of the Administration to be appointed

by the President or as a political appointee;

‘‘(C) may delegate, and authorize successive redelegations of, to an officer or employee of the Administration

any function, power, or duty conferred upon the Administrator, unless such delegation is prohibited by law; and

‘‘(D) except as otherwise provided for in this title, and

notwithstanding any other provision of law, shall not be

required to coordinate, submit for approval or concurrence,

or seek the advice or views of the Secretary or any other

officer or employee of the Department of Transportation

on any matter with respect to which the Administrator

is the final authority.

‘‘(3) DEFINITION OF POLITICAL APPOINTEE.—For purposes

of this subsection, the term ‘political appointee’ means any

individual who—

‘‘(A) is employed in a position listed in sections 5312

through 5316 of title 5 (relating to the Executive Schedule);

‘‘(B) is a limited term appointee, limited emergency

appointee, or noncareer appointee in the Senior Executive

Service, as defined under paragraphs (5), (6), and (7),

respectively, of section 3132(a) of title 5; or

‘‘(C) is employed in a position in the executive branch

of the Government of a confidential or policy-determining

character under schedule C of subpart C of part 213 of

title 5 of the Code of Federal Regulations.’’.

(b) PRESERVATION OF EXISTING AUTHORITY.—Nothing in this

title or the amendments made by this title limits any authority

granted to the Administrator by statute or by delegation that was

in effect on the day before the date of the enactment of this

Act.

SEC. 224. REGULATIONS.

Section 106(f), as amended by section 223 of this Act, is further

amended—

(1) by redesignating paragraph (3) as paragraph (4); and

(2) by inserting after paragraph (2) the following:

‘‘(3) REGULATIONS.—

‘‘(A) IN GENERAL.—In the performance of the functions

of the Administrator and the Administration, the Administrator is authorized to issue, rescind, and revise such regulations as are necessary to carry out those functions. The

issuance of such regulations shall be governed by the provisions of chapter 5 of title 5. The Administrator shall act

upon all petitions for rulemaking no later than 6 months

after the date such petitions are filed by dismissing such

petitions, by informing the petitioner of an intention to

dismiss, or by issuing a notice of proposed rulemaking
H. R. 3539—19

or advanced notice of proposed rulemaking. The Administrator shall issue a final regulation, or take other final

action, not later than 16 months after the last day of

the public comment period for the regulations or, in the

case of an advanced notice of proposed rulemaking, if

issued, not later than 24 months after the date of publication in the Federal Register of notice of the proposed rulemaking.

‘‘(B) APPROVAL OF SECRETARY OF TRANSPORTATION.—

(i) The Administrator may not issue a proposed regulation

or final regulation that is likely to result in the expenditure

by State, local, and tribal governments in the aggregate,

or by the private sector, of $100,000,000 or more (adjusted

annually for inflation beginning with the year following

the date of the enactment of the Air Traffic Management

System Performance Improvement Act of 1996) in any year,

or any regulation which is significant, unless the Secretary

of Transportation approves the issuance of the regulation

in advance. For purposes of this paragraph, a regulation

is significant if the Administrator, in consultation with

the Secretary (as appropriate), determines that the regulation is likely to—

‘‘(I) have an annual effect on the economy of

$100,000,000 or more or adversely affect in a material

way the economy, a sector of the economy, productivity,

competition, jobs, the environment, public health or

safety, or State, local, or tribal governments or communities;

‘‘(II) create a serious inconsistency or otherwise

interfere with an action taken or planned by another

agency;

‘‘(III) materially alter the budgetary impact of

entitlements, grants, user fees, or loan programs or

the rights and obligations of recipients thereof; or

‘‘(IV) raise novel legal or policy issues arising out

of legal mandates.

‘‘(ii) In an emergency, the Administrator may issue

a regulation described in clause (i) without prior approval

by the Secretary, but any such emergency regulation is

subject to ratification by the Secretary after it is issued

and shall be rescinded by the Administrator within 5 days

(excluding Saturdays, Sundays, and legal public holidays)

after issuance if the Secretary fails to ratify its issuance.

‘‘(iii) Any regulation that does not meet the criteria

of clause (i), and any regulation or other action that is

a routine or frequent action or a procedural action, may

be issued by the Administrator without review or approval

by the Secretary.

‘‘(iv) The Administrator shall submit a copy of any

regulation requiring approval by the Secretary under clause

(i) to the Secretary, who shall either approve it or return

it to the Administrator with comments within 45 days

after receiving it.

‘‘(C) PERIODIC REVIEW.—(i) Beginning on the date

which is 3 years after the date of the enactment of the

Air Traffic Management System Performance Improvement

Act of 1996, the Administrator shall review any unusually
H. R. 3539—20

burdensome regulation issued by the Administrator after

such date of enactment beginning not later than 3 years

after the effective date of the regulation to determine if

the cost assumptions were accurate, the benefit of the

regulations, and the need to continue such regulations in

force in their present form.

‘‘(ii) The Administrator may identify for review under

the criteria set forth in clause (i) unusually burdensome

regulations that were issued before the date of the enactment of the Air Traffic Management System Performance

Improvement Act of 1996 and that have been in force

for more than 3 years.

‘‘(iii) For purposes of this subparagraph, the term

‘unusually burdensome regulation’ means any regulation

that results in the annual expenditure by State, local,

and tribal governments in the aggregate, or by the private

sector, of $25,000,000 or more (adjusted annually for inflation beginning with the year following the date of the

enactment of the Air Traffic Management System Performance Act of 1996) in any year.

‘‘(iv) The periodic review of regulations may be performed by advisory committees and the Management

Advisory Council established under subsection (p).’’.

SEC. 225. PERSONNEL AND SERVICES.

Section 106 is amended by adding at the end the following:

‘‘(l) PERSONNEL AND SERVICES.—

‘‘(1) OFFICERS AND EMPLOYEES.—Except as provided in section 40122(a) of this title and section 347 of Public Law 104–

50, the Administrator is authorized, in the performance of

the functions of the Administrator, to appoint, transfer, and

fix the compensation of such officers and employees, including

attorneys, as may be necessary to carry out the functions of

the Administrator and the Administration. In fixing compensation and benefits of officers and employees, the Administrator

shall not engage in any type of bargaining, except to the extent

provided for in section 40122(a), nor shall the Administrator

be bound by any requirement to establish such compensation

or benefits at particular levels.

‘‘(2) EXPERTS AND CONSULTANTS.—The Administrator is

authorized to obtain the services of experts and consultants

in accordance with section 3109 of title 5.

‘‘(3) TRANSPORTATION AND PER DIEM EXPENSES.—The

Administrator is authorized to pay transportation expenses,

and per diem in lieu of subsistence expenses, in accordance

with chapter 57 of title 5.

‘‘(4) USE OF PERSONNEL FROM OTHER AGENCIES.—The

Administrator is authorized to utilize the services of personnel

of any other Federal agency (as such term is defined under

section 551(1) of title 5).

‘‘(5) VOLUNTARY SERVICES.—

‘‘(A) GENERAL RULE.—In exercising the authority to

accept gifts and voluntary services under section 326 of

this title, and without regard to section 1342 of title 31,

the Administrator may not accept voluntary and uncompensated services if such services are used to displace Federal
H. R. 3539—21

employees employed on a full-time, part-time, or seasonal

basis.

‘‘(B) INCIDENTAL EXPENSES.—The Administrator is

authorized to provide for incidental expenses, including

transportation, lodging, and subsistence, for volunteers who

provide voluntary services under this subsection.

‘‘(C) LIMITED TREATMENT AS FEDERAL EMPLOYEES.— An individual who provides voluntary services under this

subsection shall not be considered a Federal employee for

any purpose other than for purposes of chapter 81 of title

5, relating to compensation for work injuries, and chapter

171 of title 28, relating to tort claims.’’.

SEC. 226. CONTRACTS.

Section 106(l), as added by section 225 of this Act, is further

amended by adding at the end the following:

‘‘(6) CONTRACTS.—The Administrator is authorized to enter

into and perform such contracts, leases, cooperative agreements,

or other transactions as may be necessary to carry out the

functions of the Administrator and the Administration. The

Administrator may enter into such contracts, leases, cooperative

agreements, and other transactions with any Federal agency

(as such term is defined in section 551(1) of title 5) or any

instrumentality of the United States, any State, territory, or

possession, or political subdivision thereof, any other governmental entity, or any person, firm, association, corporation,

or educational institution, on such terms and conditions as

the Administrator may consider appropriate.’’.

SEC. 227. FACILITIES.

Section 106, as amended by section 225 of this Act, is further

amended by adding at the end the following:

‘‘(m) COOPERATION BY ADMINISTRATOR.—With the consent of

appropriate officials, the Administrator may, with or without

reimbursement, use or accept the services, equipment, personnel,

and facilities of any other Federal agency (as such term is defined

in section 551(1) of title 5) and any other public or private entity.

The Administrator may also cooperate with appropriate officials

of other public and private agencies and instrumentalities concerning the use of services, equipment, personnel, and facilities. The

head of each Federal agency shall cooperate with the Administrator

in making the services, equipment, personnel, and facilities of the

Federal agency available to the Administrator. The head of a Federal agency is authorized, notwithstanding any other provision of

law, to transfer to or to receive from the Administration, without

reimbursement, supplies and equipment other than administrative

supplies or equipment.’’.

SEC. 228. PROPERTY.

Section 106, as amended by section 227 of this Act, is further

amended by adding at the end the following:

‘‘(n) ACQUISITION.—

‘‘(1) IN GENERAL.—The Administrator is authorized—

‘‘(A) to acquire (by purchase, lease, condemnation, or

otherwise), construct, improve, repair, operate, and

maintain—

‘‘(i) air traffic control facilities and equipment;

‘‘(ii) research and testing sites and facilities; and
H. R. 3539—22

‘‘(iii) such other real and personal property (including office space and patents), or any interest therein,

within and outside the continental United States as

the Administrator considers necessary;

‘‘(B) to lease to others such real and personal

property; and

‘‘(C) to provide by contract or otherwise for eating

facilities and other necessary facilities for the welfare of

employees of the Administration at the installations of

the Administration, and to acquire, operate, and maintain

equipment for these facilities.

‘‘(2) TITLE.—Title to any property or interest therein

acquired pursuant to this subsection shall be held by the

Government of the United States.’’.

SEC. 229. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

Section 106, as amended by section 228 of this Act, is further

amended by adding at the end the following:

‘‘(o) TRANSFERS OF FUNDS.—The Administrator is authorized

to accept transfers of unobligated balances and unexpended balances of funds appropriated to other Federal agencies (as such

term is defined in section 551(1) of title 5) to carry out functions

transferred by law to the Administrator or functions transferred

pursuant to law to the Administrator on or after the date of the

enactment of the Air Traffic Management System Performance

Improvement Act of 1996.’’.

SEC. 230. MANAGEMENT ADVISORY COUNCIL.

Section 106, as amended by section 229 of this Act, is further

amended by adding at the end the following:

‘‘(p) MANAGEMENT ADVISORY COUNCIL.— ‘‘(1) ESTABLISHMENT.—Within 3 months after the date of

the enactment of the Air Traffic Management System Performance Improvement Act of 1996, the Administrator shall establish an advisory council which shall be known as the Federal

Aviation Management Advisory Council (in this subsection

referred to as the ‘Council’). With respect to Administration

management, policy, spending, funding, and regulatory matters

affecting the aviation industry, the Council may submit comments, recommended modifications, and dissenting views to

the Administrator. The Administrator shall include in any

submission to Congress, the Secretary, or the general public,

and in any submission for publication in the Federal Register,

a description of the comments, recommended modifications,

and dissenting views received from the Council, together with

the reasons for any differences between the views of the Council

and the views or actions of the Administrator.

‘‘(2) MEMBERSHIP.—The Council shall consist of 15 members, who shall consist of—

‘‘(A) a designee of the Secretary of Transportation;

‘‘(B) a designee of the Secretary of Defense; and

‘‘(C) 13 members representing aviation interests,

appointed by the President by and with the advice and

consent of the Senate.

‘‘(3) QUALIFICATIONS.—No member appointed under paragraph (2)(C) may serve as an officer or employee of the United

States Government while serving as a member of the Council.

‘‘(4) FUNCTIONS.—
H. R. 3539—23

‘‘(A) IN GENERAL.—(i) The Council shall provide advice

and counsel to the Administrator on issues which affect

or are affected by the operations of the Administrator.

The Council shall function as an oversight resource for

management, policy, spending, and regulatory matters

under the jurisdiction of the Administration.

‘‘(ii) The Council shall review the rulemaking costbenefit analysis process and develop recommendations to

improve the analysis and ensure that the public interest

is fully protected.

‘‘(iii) The Council shall review the process through

which the Administration determines to use advisory circulars and service bulletins.

‘‘(B) MEETINGS.—The Council shall meet on a regular

and periodic basis or at the call of the chairman or of

the Administrator.

‘‘(C) ACCESS TO DOCUMENTS AND STAFF.—The Administration may give the Council appropriate access to relevant

documents and personnel of the Administration, and the

Administrator shall make available, consistent with the

authority to withhold commercial and other proprietary

information under section 552 of title 5 (commonly known

as the ‘Freedom of Information Act’), cost data associated

with the acquisition and operation of air traffic service

systems. Any member of the Council who receives commercial or other proprietary data from the Administrator shall

be subject to the provisions of section 1905 of title 18,

pertaining to unauthorized disclosure of such information.

‘‘(5) FEDERAL ADVISORY COMMITTEE ACT NOT TO APPLY.— The Federal Advisory Committee Act (5 U.S.C. App.) does not

apply to the Council or such aviation rulemaking committees

as the Administrator shall designate.

‘‘(6) ADMINISTRATIVE MATTERS.— ‘‘(A) TERMS OF MEMBERS.—(i) Except as provided in

subparagraph (B), members of the Council appointed by

the President under paragraph (2)(C) shall be appointed

for a term of 3 years.

‘‘(ii) Of the members first appointed by the President—

‘‘(I) 4 shall be appointed for terms of 1 year;

‘‘(II) 5 shall be appointed for terms of 2 years;

and

‘‘(III) 4 shall be appointed for terms of 3 years.

‘‘(iii) An individual chosen to fill a vacancy shall be

appointed for the unexpired term of the member replaced.

‘‘(iv) A member whose term expires shall continue to

serve until the date on which the member’s successor takes

office.

‘‘(B) CHAIRMAN; VICE CHAIRMAN.—The Council shall

elect a chair and a vice chair from among the members

appointed under paragraph (2)(C), each of whom shall serve

for a term of 1 year. The vice chair shall perform the

duties of the chairman in the absence of the chairman.

‘‘(C) TRAVEL AND PER DIEM.—Each member of the

Council shall be paid actual travel expenses, and per diem

in lieu of subsistence expenses when away from his or

her usual place of residence, in accordance with section

5703 of title 5.
H. R. 3539—24

‘‘(D) DETAIL OF PERSONNEL FROM THE ADMINISTRA- TION.—The Administrator shall make available to the

Council such staff, information, and administrative services

and assistance as may reasonably be required to enable

the Council to carry out its responsibilities under this

subsection.’’.

Subtitle B—Federal Aviation

Administration Streamlining Programs

SEC. 251. REVIEW OF ACQUISITION MANAGEMENT SYSTEM.

Not later than April 1, 1999, the Administrator shall employ

outside experts to provide an independent evaluation of the

effectiveness of the Administration’s acquisition management system within 3 months after such date. The Administrator shall

transmit a copy of the evaluation to the Committee on Commerce,

Science, and Transportation of the Senate and the Committee on

Transportation and Infrastructure of the House of Representatives.

SEC. 252. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

Chapter 401 is amended by adding at the end the following:

‘‘§ 40121. Air traffic control modernization reviews

‘‘(a) REQUIRED TERMINATIONS OF ACQUISITIONS.—The Administrator of the Federal Aviation Administration shall terminate any

acquisition program initiated after the date of the enactment of

the Air Traffic Management System Performance Improvement Act

of 1996 and funded under the Facilities and Equipment account

that—

‘‘(1) is more than 50 percent over the cost goal established

for the program;

‘‘(2) fails to achieve at least 50 percent of the performance

goals established for the program; or

‘‘(3) is more than 50 percent behind schedule as determined

in accordance with the schedule goal established for the

program.

‘‘(b) AUTHORIZED TERMINATION OF ACQUISITION PROGRAMS.— The Administrator shall consider terminating, under the authority

of subsection (a), any substantial acquisition program that—

‘‘(1) is more than 10 percent over the cost goal established

for the program;

‘‘(2) fails to achieve at least 90 percent of the performance

goals established for the program; or

‘‘(3) is more than 10 percent behind schedule as determined

in accordance with the schedule goal established for the

program.

‘‘(c) EXCEPTIONS AND REPORT.—

‘‘(1) CONTINUANCE OF PROGRAM, ETC.—Notwithstanding

subsection (a), the Administrator may continue an acquisitions

program required to be terminated under subsection (a) if the

Administrator determines that termination would be inconsistent with the development or operation of the national air

transportation system in a safe and efficient manner.

‘‘(2) DEPARTMENT OF DEFENSE.—The Department of Defense

shall have the same exemptions from acquisition laws as are

waived by the Administrator under section 348(b) of Public
H. R. 3539—25

Law 104–50 when engaged in joint actions to improve or replenish the national air traffic control system. The Administration

may acquire real property, goods, and services through the

Department of Defense, or other appropriate agencies, but is

bound by the acquisition laws and regulations governing those

cases.

‘‘(3) REPORT.—If the Administrator makes a determination

under paragraph (1), the Administrator shall transmit a copy

of the determination, together with a statement of the basis

for the determination, to the Committees on Appropriations

of the Senate and the House of Representatives, the Committee

on Commerce, Science, and Transportation of the Senate, and

the Committee on Transportation and Infrastructure of the

House of Representatives.’’.

SEC. 253. FEDERAL AVIATION ADMINISTRATION PERSONNEL

MANAGEMENT SYSTEM.

Chapter 401, as amended by section 252 of this Act, is further

amended by adding at the end the following:

‘‘§ 40122. Federal Aviation Administration personnel

management system

‘‘(a) IN GENERAL.—

‘‘(1) CONSULTATION AND NEGOTIATION.—In developing and

making changes to the personnel management system initially

implemented by the Administrator of the Federal Aviation

Administration on April 1, 1996, the Administrator shall negotiate with the exclusive bargaining representatives of employees

of the Administration certified under section 7111 of title 5

and consult with other employees of the Administration.

‘‘(2) MEDIATION.—If the Administrator does not reach an

agreement under paragraph (1) with the exclusive bargaining

representatives, the services of the Federal Mediation and

Conciliation Service shall be used to attempt to reach such

agreement. If the services of the Federal Mediation and Conciliation Service do not lead to an agreement, the Administrator’s

proposed change to the personnel management system shall

not take effect until 60 days have elapsed after the Administrator has transmitted the proposed change, along with the

objections of the exclusive bargaining representatives to the

change, and the reasons for such objections, to Congress.

‘‘(3) COST SAVINGS AND PRODUCTIVITY GOALS.—The

Administration and the exclusive bargaining representatives

of the employees shall use every reasonable effort to find cost

savings and to increase productivity within each of the affected

bargaining units.

‘‘(4) ANNUAL BUDGET DISCUSSIONS.—The Administration

and the exclusive bargaining representatives of the employees

shall meet annually for the purpose of finding additional cost

savings within the Administration’s annual budget as it applies

to each of the affected bargaining units and throughout the

agency.

‘‘(b) EXPERT EVALUATION.—On the date that is 3 years after

the personnel management system is implemented, the Administration shall employ outside experts to provide an independent evaluation of the effectiveness of the system within 3 months after such

date. For this purpose, the Administrator may utilize the services
H. R. 3539—26

of experts and consultants under section 3109 of title 5 without

regard to the limitation imposed by the last sentence of section

3109(b) of such title, and may contract on a sole source basis,

notwithstanding any other provision of law to the contrary.

‘‘(c) PAY RESTRICTION.—No officer or employee of the Administration may receive an annual rate of basic pay in excess of the

annual rate of basic pay payable to the Administrator.

‘‘(d) ETHICS.—The Administration shall be subject to Executive

Order No. 12674 and regulations and opinions promulgated by

the Office of Government Ethics, including those set forth in section

2635 of title 5 of the Code of Federal Regulations.

‘‘(e) EMPLOYEE PROTECTIONS.—Until July 1, 1999, basic wages

(including locality pay) and operational differential pay provided

employees of the Administration shall not be involuntarily adversely

affected by reason of the enactment of this section, except for

unacceptable performance or by reason of a reduction in force

or reorganization or by agreement between the Administration and

the affected employees’ exclusive bargaining representative.

‘‘(f) LABOR-MANAGEMENT AGREEMENTS.—Except as otherwise

provided by this title, all labor-management agreements covering

employees of the Administration that are in effect on the effective

date of the Air Traffic Management System Performance Improvement Act of 1996 shall remain in effect until their normal expiration

date, unless the Administrator and the exclusive bargaining representative agree to the contrary.’’.

SEC. 254. CONFORMING AMENDMENT.

The table of sections for chapter 401 is amended by adding

at the end the following:

‘‘40121. Air traffic control modernization reviews.

‘‘40122. Federal Aviation Administration personnel management system.’’.

Subtitle C—System To Fund Certain

Federal Aviation Administration Functions

SEC. 271. FINDINGS.

Congress finds the following:

(1) The Administration is recognized throughout the world

as a leader in aviation safety.

(2) The Administration certifies aircraft, engines, propellers, and other manufactured parts.

(3) The Administration certifies more than 650 training

schools for pilots and nonpilots, more than 4,858 repair stations,

and more than 193 maintenance schools.

(4) The Administration certifies pilot examiners, who are

then qualified to determine if a person has the skills necessary

to become a pilot.

(5) The Administration certifies more than 6,000 medical

examiners, each of whom is then qualified to medically certify

the qualifications of pilots and nonpilots.

(6) The Administration certifies more than 470 airports,

and provides a limited certification for another 205 airports.

Other airports in the United States are also reviewed by the

Administration.

(7) The Administration each year performs more than

355,000 inspections.
H. R. 3539—27

(8) The Administration issues more than 655,000 pilot’s

licenses and more than 560,000 nonpilot’s licenses (including

mechanics).

(9) The Administration’s certification means that the

product meets world-wide recognized standards of safety and

reliability.

(10) The Administration’s certification means aviationrelated equipment and services meet world-wide recognized

standards.

(11) The Administration’s certification is recognized by

governments and businesses throughout the world and as such

may be a valuable element for any company desiring to sell

aviation-related products throughout the world.

(12) The Administration’s certification may constitute a

valuable license, franchise, privilege or benefits for the holders.

(13) The Administration also is a major purchaser of

computers, radars, and other systems needed to run the air

traffic control system. The Administration’s design, acceptance,

commissioning, or certification of such equipment enables the

private sector to market those products around the world, and

as such confers a benefit on the manufacturer.

(14) The Administration provides extensive services to

public use aircraft.

SEC. 272. PURPOSES.

The purposes of this subtitle are—

(1) to provide a financial structure for the Administration

so that it will be able to support the future growth in the

national aviation and airport system;

(2) to review existing and alternative funding options,

including incentive-based fees for services, and establish a program to improve air traffic management system performance

and to establish appropriate levels of cost accountability for

air traffic management services provided by the Administration;

(3) to ensure that any funding will be dedicated solely

for the use of the Administration;

(4) to authorize the Administration to recover the costs

of its services from those who benefit from, but do not contribute

to, the national aviation system and the services provided by

the Administration;

(5) to consider a fee system based on the cost or value

of the services provided and other funding alternatives;

(6) to develop funding options for Congress in order to

provide for the long-term efficient and cost-effective support

of the Administration and the aviation system; and

(7) to achieve a more efficient and effective Administration

for the benefit of the aviation transportation industry.

SEC. 273. USER FEES FOR VARIOUS FEDERAL AVIATION ADMINISTRATION SERVICES.

(a) IN GENERAL.—Chapter 453 is amended by striking section

45301 and inserting the following:

‘‘§ 45301. General provisions

‘‘(a) SCHEDULE OF FEES.—The Administrator shall establish

a schedule of new fees, and a collection process for such fees,

for the following services provided by the Administration:
H. R. 3539—28

‘‘(1) Air traffic control and related services provided to

aircraft other than military and civilian aircraft of the United

States government or of a foreign government that neither

take off from, nor land in, the United States.

‘‘(2) Services (other than air traffic control services)

provided to a foreign government.

‘‘(b) LIMITATIONS.—

‘‘(1) AUTHORIZATION AND IMPACT CONSIDERATIONS.—In

establishing fees under subsection (a), the Administrator—

‘‘(A) is authorized to recover in fiscal year 1997

$100,000,000; and

‘‘(B) shall ensure that each of the fees required by

subsection (a) is directly related to the Administration’s

costs of providing the service rendered. Services for which

costs may be recovered include the costs of air traffic control, navigation, weather services, training and emergency

services which are available to facilitate safe transportation

over the United States, and other services provided by

the Administrator or by programs financed by the Administrator to flights that neither take off nor land in the United

States.

‘‘(2) PUBLICATION; COMMENT.—The Administrator shall publish in the Federal Register an initial fee schedule and associated collection process as an interim final rule, pursuant to

which public comment will be sought and a final rule issued.

‘‘(c) USE OF EXPERTS AND CONSULTANTS.—In developing the

system, the Administrator may consult with such nongovernmental

experts as the Administrator may employ and the Administrator

may utilize the services of experts and consultants under section

3109 of title 5 without regard to the limitation imposed by the

last sentence of section 3109(b) of such title, and may contract

on a sole source basis, notwithstanding any other provision of

law to the contrary. Notwithstanding any other provision of law

to the contrary, the Administrator may retain such experts under

a contract awarded on a basis other than a competitive basis

and without regard to any such provisions requiring competitive

bidding or precluding sole source contract authority.’’.

(b) CONFORMING AMENDMENT.—The table of sections for chapter

453 is amended by striking the item relating to section 45301

and inserting the following:

‘‘45301. General provisions.’’.

SEC. 274. INDEPENDENT ASSESSMENT OF FAA FINANCIAL REQUIREMENTS; ESTABLISHMENT OF NATIONAL CIVIL AVIATION

REVIEW COMMISSION.

(a) INDEPENDENT ASSESSMENT.—

(1) INITIATION.—Not later than 30 days after the date of

the enactment of this Act, the Administrator shall contract

with an entity independent of the Administration and the

Department of Transportation to conduct a complete independent assessment of the financial requirements of the Administration through the year 2002.

(2) ASSESSMENT CRITERIA.—The Administrator shall provide to the independent entity estimates of the financial

requirements of the Administration for the period described

in paragraph (1), using as a base the fiscal year 1997 appropriation levels established by Congress. The independent assess-
H. R. 3539—29

ment shall be based on an objective analysis of agency funding

needs.

(3) CERTAIN FACTORS TO BE TAKEN INTO ACCOUNT.—The

independent assessment shall take into account all relevant

factors, including—

(A) anticipated air traffic forecasts;

(B) other workload measures;

(C) estimated productivity gains, if any, which

contribute to budgetary requirements;

(D) the need for programs; and

(E) the need to provide for continued improvements

in all facets of aviation safety, along with operational

improvements in air traffic control.

(4) COST ALLOCATION.—The independent assessment shall

also assess the costs to the Administration occasioned by the

provision of services to each segment of the aviation system.

(5) DEADLINE.—The independent assessment shall be completed no later than 90 days after the contract is awarded,

and shall be submitted to the Commission established under

subsection (b), the Secretary, the Secretary of the Treasury,

the Committee on Commerce, Science, and Transportation and

the Committee on Finance of the Senate, and the Committee

on Transportation and Infrastructure and the Committee on

Ways and Means of the House of Representatives.

(b) NATIONAL CIVIL AVIATION REVIEW COMMISSION.—

(1) ESTABLISHMENT.—There is established a commission

to be known as the National Civil Aviation Review Commission

(hereinafter in this section referred to as the ‘‘Commission’’).

(2) MEMBERSHIP.—The Commission shall consist of 21

members to be appointed as follows:

(A) 13 members to be appointed by the Secretary,

in consultation with the Secretary of the Treasury, from

among individuals who have expertise in the aviation

industry and who are able, collectively, to represent a

balanced view of the issues important to general aviation,

major air carriers, air cargo carriers, regional air carriers,

business aviation, airports, aircraft manufacturers, the

financial community, aviation industry workers, and airline

passengers. At least one member appointed under this

subparagraph shall have detailed knowledge of the congressional budgetary process.

(B) Two members appointed by the Speaker of the

House of Representatives.

(C) Two members appointed by the minority leader

of the House of Representatives.

(D) Two members appointed by the majority leader

of the Senate.

(E) Two members appointed by the minority leader

of the Senate.

(3) TASK FORCES.—The Commission shall establish an aviation funding task force and an aviation safety task force to

carry out the responsibilities of the Commission under this

subsection.

(4) FIRST MEETING.—The Commission may conduct its first

meeting as soon as a majority of the members of the Commission are appointed.

(5) HEARINGS AND CONSULTATION.—
H. R. 3539—30

(A) HEARINGS.—The Commission shall take such testimony and solicit and receive such comments from the public

and other interested parties as it considers appropriate,

shall conduct 2 public hearings after affording adequate

notice to the public thereof, and may conduct such additional hearings as may be necessary.

(B) CONSULTATION.—The Commission shall consult on

a regular and frequent basis with the Secretary, the Secretary of the Treasury, the Committee on Commerce,

Science, and Transportation and the Committee on Finance

of the Senate, and the Committee on Transportation and

Infrastructure and the Committee on Ways and Means

of the House of Representatives.

(C) FACA NOT TO APPLY.—The Commission shall not

be considered an advisory committee for purposes of the

Federal Advisory Committee Act (5 U.S.C. App.).

(6) DUTIES OF AVIATION FUNDING TASK FORCE.—

(A) REPORT TO SECRETARY.—

(i) IN GENERAL.—The aviation funding task force

established pursuant to paragraph (3) shall submit

a report setting forth a comprehensive analysis of the

Administration’s budgetary requirements through fiscal year 2002, based upon the independent assessment

under subsection (a), that analyzes alternative financing and funding means for meeting the needs of the

aviation system through the year 2002. The task force

shall submit a preliminary report of that analysis to

the Secretary not later than 6 months after the

independent assessment is completed under subsection

(a). The Secretary shall provide comments on the

preliminary report to the task force within 30 days

after receiving the report. The task force shall issue

a final report of such comprehensive analysis within

30 days after receiving the Secretary’s comments on

its preliminary report.

(ii) CONTENTS.—The report submitted by the

aviation funding task force under clause (i)—

(I) shall consider the independent assessment

under subsection (a);

(II) shall consider estimated cost savings, if

any, resulting from the procurement and personnel

reforms included in this Act or in sections 347

and 348 of Public Law 104–50, and additional

financial initiatives;

(III) shall include specific recommendations to

Congress on how the Administration can reduce

costs, raise additional revenue for the support of

agency operations, and accelerate modernization

efforts; and

(IV) shall include a draft bill containing the

changes in law necessary to implement its

recommendations.

(B) RECOMMENDATIONS.—The aviation funding task

force shall make such recommendations under subparagraph (A)(ii)(III) as the task force deems appropriate. Those

recommendations may include—
H. R. 3539—31

(i) proposals for off-budget treatment of the Airport

and Airway Trust Fund;

(ii) alternative financing and funding proposals,

including linked financing proposals;

(iii) modifications to existing levels of Airport and

Airways Trust Fund receipts and taxes for each type

of tax;

(iv) establishment of a cost-based user fee system

based on, but not limited to, criteria under subparagraph (F) and methods to ensure that costs are borne

by users on a fair and equitable basis;

(v) methods to ensure that funds collected from

the aviation community are able to meet the needs

of the agency;

(vi) methods to ensure that funds collected from

the aviation community and passengers are used to

support the aviation system;

(vii) means of meeting the airport infrastructure

needs for large, medium, and small airports; and

(viii) any other matter the task force deems appropriate to address the funding and needs of the Administration and the aviation system.

(C) ADDITIONAL RECOMMENDATIONS.—The aviation

funding task force report may also make recommendations

concerning—

(i) means of improving productivity by expanding

and accelerating the use of automation and other technology;

(ii) means of contracting out services consistent

with this Act, other applicable law, and safety and

national defense needs;

(iii) methods to accelerate air traffic control modernization and improvements in aviation safety and

safety services;

(iv) the elimination of unneeded programs; and

(v) a limited innovative program based on funding

mechanisms such as loan guarantees, financial partnerships with for-profit private sector entities, government-sponsored enterprises, and revolving loan funds,

as a means of funding specific facilities and equipment

projects, and to provide limited additional funding

alternatives for airport capacity development.

(D) IMPACT ASSESSMENT FOR RECOMMENDATIONS.—For

each recommendation contained in the aviation funding

task force’s report, the report shall include a full analysis

and assessment of the impact implementation of the recommendation would have on—

(i) safety;

(ii) administrative costs;

(iii) the congressional budget process;

(iv) the economics of the industry (including the

proportionate share of all users);

(v) the ability of the Administration to utilize the

sums collected; and

(vi) the funding needs of the Administration.

(E) TRUST FUND TAX RECOMMENDATIONS.—If the task

force’s report includes a recommendation that the existing
H. R. 3539—32

Airport and Airways Trust Fund tax structure be modified,

the report shall—

(i) state the specific rates for each group affected

by the proposed modifications;

(ii) consider the impact such modifications shall

have on specific users and the public (including passengers); and

(iii) state the basis for the recommendations.

(F) FEE SYSTEM RECOMMENDATIONS.—If the task force’s

report includes a recommendation that a fee system be

established, including an air traffic control performancebased user fee system, the report shall consider—

(i) the impact such a recommendation would have

on passengers, air fares (including low-fare, high frequency service), service, and competition;

(ii) existing contributions provided by individual

air carriers toward funding the Administration and

the air traffic control system through contributions

to the Airport and Airways Trust Fund;

(iii) continuing the promotion of fair and competitive practices;

(iv) the unique circumstances associated with

interisland air carrier service in Hawaii and rural air

service in Alaska;

(v) the impact such a recommendation would have

on service to small communities;

(vi) the impact such a recommendation would have

on services provided by regional air carriers;

(vii) alternative methodologies for calculating fees

so as to achieve a fair and reasonable distribution

of costs of service among users;

(viii) the usefulness of phased-in approaches to

implementing such a financing system;

(ix) means of assuring the provision of general

fund contributions, as appropriate, toward the support

of the Administration; and

(x) the provision of incentives to encourage greater

efficiency in the provision of air traffic services by

the Administration and greater efficiency in the use

of air traffic services by aircraft operators.

(7) DUTIES OF AVIATION SAFETY TASK FORCE.—

(A) REPORT TO ADMINISTRATOR.—Not later than 1 year

after the date of the enactment of this Act, the aviation

safety task force established pursuant to paragraph (3)

shall submit to the Administrator a report setting forth

a comprehensive analysis of aviation safety in the United

States and emerging trends in the safety of particular

sectors of the aviation industry.

(B) CONTENTS.—The report to be submitted under

subparagraph (A) shall include an assessment of—

(i) the adequacy of staffing and training resources

for safety personnel of the Administration, including

safety inspectors;

(ii) the Administration’s processes for ensuring the

public safety from fraudulent parts in civil aviation

and the extent to which use of suspected unapproved
H. R. 3539—33

parts requires additional oversight or enforcement

action; and

(iii) the ability of the Administration to anticipate

changes in the aviation industry and to develop policies

and actions to ensure the highest level of aviation

safety in the 21st century.

(8) ACCESS TO DOCUMENTS AND STAFF.—The Administration

may give the Commission appropriate access to relevant documents and personnel of the Administration, and the Administrator shall make available, consistent with the authority to

withhold commercial and other proprietary information under

section 552 of title 5, United States Code (commonly known

as the ‘‘Freedom of Information Act’’), cost data associated

with the acquisition and operation of air traffic service systems.

Any member of the Commission who receives commercial or

other proprietary data from the Administrator shall be subject

to the provisions of section 1905 of title 18, United States

Code, pertaining to unauthorized disclosure of such information.

(9) TRAVEL AND PER DIEM.—Each member of the Commission shall be paid actual travel expenses, and per diem in

lieu of subsistence expenses when away from his or her usual

place of residence, in accordance with section 5703 of title

5, United States Code.

(10) DETAIL OF PERSONNEL FROM THE ADMINISTRATION.—

The Administrator shall make available to the Commission

such staff, information, and administrative services and assistance as may reasonably be required to enable the Commission

to carry out its responsibilities under this subsection.

(11) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated such sums as may be necessary to

carry out the provisions of this subsection.

(c) REPORTS TO CONGRESS.— (1) REPORT BY THE SECRETARY BASED ON FINAL REPORT

OF AVIATION FUNDING TASK FORCE.— (A) CONSIDERATION OF TASK FORCE’S PRELIMINARY

REPORT.—Not later than 30 days after receiving the

preliminary report of the aviation funding task force, the

Secretary, in consultation with the Secretary of the Treasury, shall furnish comments on the report to the task

force.

(B) REPORT TO CONGRESS.—Not later than 30 days

after receiving the final report of the aviation funding

task force, and in no event more than 1 year after the

date of the enactment of this Act, the Secretary, after

consulting the Secretary of the Treasury, shall transmit

a report to the Committee on Commerce, Science, and

Transportation and the Committee on Finance of the Senate, and the Committee on Transportation and Infrastructure and the Committee on Ways and Means of the House

of Representatives. Such report shall be based upon the

final report of the task force and shall contain the Secretary’s recommendations for funding the needs of the aviation system through the year 2002.

(C) CONTENTS.—The Secretary shall include in the

report to Congress under subparagraph (B)—

(i) a copy of the final report of the task force;

and
H. R. 3539—34

(ii) a draft bill containing the changes in law necessary to implement the Secretary’s recommendations.

(D) PUBLICATION.—The Secretary shall cause a copy

of the report to be printed in the Federal Register upon

its transmittal to Congress under subparagraph (B).

(2) REPORT BY THE ADMINISTRATOR BASED ON FINAL REPORT

OF AVIATION SAFETY TASK FORCE.—Not later than 30 days after

receiving the report of the aviation safety task force, the

Administrator shall transmit the report to Congress, together

with the Administrator’s recommendations for improving aviation safety in the United States.

(d) GAO AUDIT OF COST ALLOCATION.—The Comptroller General shall conduct an assessment of the manner in which costs

for air traffic control services are allocated between the Administration and the Department of Defense. The Comptroller General

shall report the results of the assessment, together with any recommendations the Comptroller General may have for reallocation

of costs and for opportunities to increase the efficiency of air traffic

control services provided by the Administration and by the Department of Defense, to the Commission, the Administrator, the Secretary of Defense, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate not later than

180 days after the date of the enactment of this Act.

(e) GAO ASSESSMENT.—Not later than 180 days after the date

of the enactment of this Act, the Comptroller General shall transmit

to the Commission and Congress an independent assessment of

airport development needs.

SEC. 275. PROCEDURE FOR CONSIDERATION OF CERTAIN FUNDING

PROPOSALS.

(a) IN GENERAL.—Chapter 481 is amended by adding at the

end the following:

‘‘§ 48111. Funding proposals

‘‘(a) INTRODUCTION IN THE SENATE.—Within 15 days (not counting any day on which the Senate is not in session) after a funding

proposal is submitted to the Senate by the Secretary of Transportation under section 274(c) of the Air Traffic Management System

Performance Improvement Act of 1996, an implementing bill with

respect to such funding proposal shall be introduced in the Senate

by the majority leader of the Senate, for himself and the minority

leader of the Senate, or by Members of the Senate designated

by the majority leader and minority leader of the Senate.

‘‘(b) CONSIDERATION IN THE SENATE.—An implementing bill

introduced in the Senate under subsection (a) shall be referred

to the Committee on Commerce, Science, and Transportation. The

Committee on Commerce, Science, and Transportation shall report

the bill with its recommendations within 60 days following the

date of introduction of the bill. Upon the reporting of the bill

by the Committee on Commerce, Science, and Transportation, the

reported bill shall be referred sequentially to the Committee on

Finance for a period of 60 legislative days.

‘‘(c) DEFINITIONS.—For purposes of this section, the following

definitions apply:

‘‘(1) IMPLEMENTING BILL.—The term ‘implementing bill’

means only a bill of the Senate which is introduced as provided
H. R. 3539—35

in subsection (a) with respect to one or more Federal Aviation

Administration funding proposals which contain changes in

existing laws or new statutory authority required to implement

such funding proposal or proposals.

‘‘(2) FUNDING PROPOSAL.—The term ‘funding proposal’

means a proposal to provide interim or permanent funding

for operations of the Federal Aviation Administration.

‘‘(d) RULES OF THE SENATE.—The provisions of this section

are enacted—

‘‘(1) as an exercise of the rulemaking power of the Senate

and as such they are deemed a part of the rules of the Senate

and they supersede other rules only to the extent that they

are inconsistent therewith; and

‘‘(2) with full recognition of the constitutional right of the

Senate to change the rules (so far as relating to the procedure

of the Senate) at any time, in the same manner and to the

same extent as in the case of any other rule of the Senate.’’.

(b) CLERICAL AMENDMENT.—The table of sections for chapter

481 is amended by adding at the end thereof the following:

‘‘48111. Funding proposals.’’.

SEC. 276. ADMINISTRATIVE PROVISIONS.

(a) IN GENERAL.—Chapter 453 is amended—

(1) by redesignating section 45303 as section 45304; and

(2) by inserting after section 45302 the following:

‘‘§ 45303. Administrative provisions

‘‘(a) FEES PAYABLE TO ADMINISTRATOR.—All fees imposed and

amounts collected under this chapter for services performed, or

materials furnished, by the Federal Aviation Administration are

payable to the Administrator of the Federal Aviation Administration.

‘‘(b) REFUNDS.—The Administrator may refund any fee paid

by mistake or any amount paid in excess of that required.

‘‘(c) RECEIPTS CREDITED TO ACCOUNT.—Notwithstanding section

3302 of title 31, all fees and amounts collected by the Administration, except insurance premiums and other fees charged for the

provision of insurance and deposited in the Aviation Insurance

Revolving Fund and interest earned on investments of such Fund,

and except amounts which on September 30, 1996, are required

to be credited to the general fund of the Treasury (whether imposed

under this section or not)—

‘‘(1) shall be credited to a separate account established

in the Treasury and made available for Administration

activities;

‘‘(2) shall be available immediately for expenditure but

only for congressionally authorized and intended purposes; and

‘‘(3) shall remain available until expended.

‘‘(d) ANNUAL BUDGET REPORT BY ADMINISTRATOR.—The

Administrator shall, on the same day each year as the President

submits the annual budget to Congress, provide to the Committee

on Commerce, Science, and Transportation of the Senate and the

Committee on Transportation and Infrastructure of the House of

Representatives—

‘‘(1) a list of fee collections by the Administration during

the preceding fiscal year;
H. R. 3539—36

‘‘(2) a list of activities by the Administration during the

preceding fiscal year that were supported by fee expenditures

and appropriations;

‘‘(3) budget plans for significant programs, projects, and

activities of the Administration, including out-year funding estimates;

‘‘(4) any proposed disposition of surplus fees by the

Administration; and

‘‘(5) such other information as those committees consider

necessary.

‘‘(e) DEVELOPMENT OF COST ACCOUNTING SYSTEM.—The

Administration shall develop a cost accounting system that adequately and accurately reflects the investments, operating and overhead costs, revenues, and other financial measurement and reporting aspects of its operations.

‘‘(f) COMPENSATION TO CARRIERS FOR ACTING AS COLLECTION

AGENTS.—The Administration shall prescribe regulations to ensure

that any air carrier required, pursuant to the Air Traffic Management System Performance Improvement Act of 1996 or any amendments made by that Act, to collect a fee imposed on another party

by the Administrator may collect from such other party an additional uniform amount that the Administrator determines reflects

the necessary and reasonable expenses (net of interest accruing

to the carrier after collection and before remittance) incurred in

collecting and handling the fee.’’.

(b) CONFORMING AMENDMENT.—The table of sections for chapter

453 is amended by striking the item relating to section 45303

and inserting the following:

‘‘45303. Administrative provisions.

‘‘45304. Maximum fees for private person services.’’.

SEC. 277. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY

TRUST FUND ACTIVITIES.

(a) IN GENERAL.—Part C of subtitle VII is amended by adding

at the end the following:

‘‘CHAPTER 482—ADVANCE APPROPRIATIONS FOR

AIRPORT AND AIRWAY TRUST FACILITIES

‘‘Sec.

‘‘48201. Advance appropriations.

‘‘§ 48201. Advance appropriations

‘‘(a) MULTIYEAR AUTHORIZATIONS.—Beginning with fiscal year

1999, any authorization of appropriations for an activity for which

amounts are to be appropriated from the Airport and Airway Trust

Fund established under section 9502 of the Internal Revenue Code

of 1986 shall provide funds for a period of not less than 3 fiscal

years unless the activity for which appropriations are authorized

is to be concluded before the end of that period.

‘‘(b) MULTIYEAR APPROPRIATIONS.—Beginning with fiscal year

1999, amounts appropriated from the Airport and Airway Trust

Fund shall be appropriated for periods of 3 fiscal years rather

than annually.’’.

(b) CONFORMING AMENDMENT.—The analysis for subtitle VII

is amended by inserting after the item relating to chapter 481

the following:
H. R. 3539—37

‘‘482. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY

TRUST FACILITIES .............................................................................48201.’’.

SEC. 278. RURAL AIR SERVICE SURVIVAL ACT.

(a) SHORT TITLE.—This section may be cited as the ‘‘Rural

Air Service Survival Act’’.

(b) FINDINGS.—Congress finds that—

(1) air service in rural areas is essential to a national

and international transportation network;

(2) the rural air service infrastructure supports the safe

operation of all air travel;

(3) rural air service creates economic benefits for all air

carriers by making the national aviation system available to

passengers from rural areas;

(4) rural air service has suffered since deregulation;

(5) the essential air service program under the Department

of Transportation—

(A) provides essential airline access to rural and isolated rural communities throughout the Nation;

(B) is necessary for the economic growth and development of rural communities;

(C) is a critical component of the national and international transportation system of the United States; and

(D) has endured serious funding cuts in recent years;

and

(6) a reliable source of funding must be established to

maintain air service in rural areas and the essential air service

program.

(c) ESSENTIAL AIR SERVICE AUTHORIZATION.—Section 41742 is

amended to read as follows:

‘‘§ 41742. Essential air service authorization

‘‘(a) IN GENERAL.—Out of the amounts received by the Federal

Aviation Administration credited to the account established under

section 45303 of this title or otherwise provided to the Administration, the sum of $50,000,000 is authorized and shall be made

available immediately for obligation and expenditure to carry out

the essential air service program under this subchapter for each

fiscal year.

‘‘(b) FUNDING FOR SMALL COMMUNITY AIR SERVICE.—Notwithstanding any other provision of law, moneys credited to the account

established under section 45303(a) of this title, including the funds

derived from fees imposed under the authority contained in section

45301(a) of this title, shall be used to carry out the essential

air service program under this subchapter. Notwithstanding section

47114(g) of this title, any amounts from those fees that are not

obligated or expended at the end of the fiscal year for the purpose

of funding the essential air service program under this subchapter

shall be made available to the Administration for use in improving

rural air safety under subchapter I of chapter 471 of this title

and shall be used exclusively for projects at rural airports under

this subchapter.

‘‘(c) SPECIAL RULE FOR FISCAL YEAR 1997.—Notwithstanding

subsections (a) and (b), in fiscal year 1997, amounts in excess

of $75,000,000 that are collected in fees pursuant to section

45301(a)(1) of this title shall be available for the essential air

service program under this subchapter, in addition to amounts

specifically provided for in appropriations Acts.’’.
H. R. 3539—38

(d) CONFORMING AMENDMENT.—The table of sections for chapter

417 is amended by striking the item relating to section 41742

and inserting the following:

‘‘41742. Essential air service authorization.’’.

TITLE III—AVIATION SECURITY

SEC. 301. REPORT INCLUDING PROPOSED LEGISLATION ON FUNDING

FOR AIRPORT SECURITY.

(a) IN GENERAL.—Not later than 90 days after the date of

the enactment of this Act, the Administrator of the Federal Aviation

Administration, in cooperation with other appropriate persons, shall

conduct a study and submit to Congress a report on whether,

and if so how, to transfer certain responsibilities of air carriers

under Federal law for security activities conducted onsite at

commercial service airports to airport operators or to the Federal

Government or to provide for shared responsibilities between air

carriers and airport operators or the Federal Government.

(b) CONTENTS OF REPORT.—The report submitted under this

section shall—

(1) examine potential sources of Federal and non-Federal

revenue that may be used to fund security activities, including

providing grants from funds received as fees collected under

a fee system established under subtitle C of title II of this

Act and the amendments made by that subtitle; and

(2) provide legislative proposals, if necessary, for accomplishing the transfer of responsibilities referred to in subsection

(a).

SEC. 302. CERTIFICATION OF SCREENING COMPANIES.

The Administrator of the Federal Aviation Administration is

directed to certify companies providing security screening and to

improve the training and testing of security screeners through

development of uniform performance standards for providing security screening services.

SEC. 303. WEAPONS AND EXPLOSIVE DETECTION STUDY.

(a) IN GENERAL.—The Administrator of the Federal Aviation

Administration shall enter into an arrangement with the Director

of the National Academy of Sciences (or if the National Academy

of Sciences is not available, the head of another equivalent entity)

to conduct a study in accordance to this section.

(b) PANEL OF EXPERTS.— (1) IN GENERAL.—In carrying out a study under this section,

the Director of the National Academy of Sciences (or the head

of another equivalent entity) shall establish a panel (hereinafter

in this section referred to as the ‘‘panel’’).

(2) EXPERTISE.—Each member of the panel shall have

expertise in weapons and explosive detection technology, security, air carrier and airport operations, or another appropriate

area. The Director of the National Academy of Sciences (or

the head of another equivalent entity) shall ensure that the

panel has an appropriate number of representatives of the

areas specified in the preceding sentence.

(c) STUDY.—The panel, in consultation with the National

Science and Technology Council, representatives of appropriate
H. R. 3539—39

Federal agencies, and appropriate members of the private sector,

shall—

(1) assess the weapons and explosive detection technologies

that are available at the time of the study that are capable

of being effectively deployed in commercial aviation;

(2) determine how the technologies referred to in paragraph

(1) may more effectively be used for promotion and improvement

of security at airport and aviation facilities and other secured

areas;

(3) assess the cost and advisability of requiring hardened

cargo containers as a way to enhance aviation security and

reduce the required sensitivity of bomb detection equipment;

and

(4) on the basis of the assessments and determinations

made under paragraphs (1), (2), and (3), identify the most

promising technologies for the improvement of the efficiency

and cost-effectiveness of weapons and explosive detection.

(d) COOPERATION.—The National Science and Technology Council shall take such actions as may be necessary to facilitate, to

the maximum extent practicable and upon request of the Director

of the National Academy of Sciences (or the head of another equivalent entity), the cooperation of representatives of appropriate Federal agencies, as provided for in subsection (c), in providing the

panel, for the study under this section—

(1) expertise; and

(2) to the extent allowable by law, resources and facilities.

(e) REPORTS.—The Director of the National Academy of Sciences

(or the head of another equivalent entity) shall, pursuant to an

arrangement entered into under subsection (a), submit to the

Administrator such reports as the Administrator considers to be

appropriate. Upon receipt of a report under this subsection, the

Administrator shall submit a copy of the report to the appropriate

committees of Congress.

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated for each of fiscal years 1997 through 2001

such sums as may be necessary to carry out this section.

SEC. 304. REQUIREMENT FOR CRIMINAL HISTORY RECORDS CHECKS.

(a) IN GENERAL.—Section 44936(a)(1) is amended—

(1) by redesignating subparagraphs (A) and (B) as clauses

(i) and (ii), respectively;

(2) by striking ‘‘(1)’’ and inserting ‘‘(1)(A)’’; and

(3) by adding at the end the following:

‘‘(B) The Administrator shall require by regulation that an

employment investigation (including a criminal history record check

in any case described in subparagraph (C)) be conducted for—

‘‘(i) individuals who will be responsible for screening passengers or property under section 44901 of this title;

‘‘(ii) supervisors of the individuals described in clause (i);

and

‘‘(iii) such other individuals who exercise security functions

associated with baggage or cargo, as the Administrator determines is necessary to ensure air transportation security.

‘‘(C) Under the regulations issued under subparagraph (B),

a criminal history record check shall be conducted in any case

in which—
H. R. 3539—40

‘‘(i) an employment investigation reveals a gap in employment of 12 months or more that the individual who is the

subject of the investigation does not satisfactorily account for;

‘‘(ii) such individual is unable to support statements made

on the application of such individual;

‘‘(iii) there are significant inconsistencies in the information

provided on the application of such individual; or

‘‘(iv) information becomes available during the employment

investigation indicating a possible conviction for one of the

crimes listed in subsection (b)(1)(B).

‘‘(D) If an individual requires a criminal history record check

under subparagraph (C), the individual may be employed as a

screener until the check is completed if the individual is subject

to supervision.’’.

(b) APPLICABILITY.—The amendment made by subsection (a)(3)

shall apply to individuals hired to perform functions described

in section 44936(a)(1)(B) of title 49, United States Code, after the

date of the enactment of this Act; except that the Administrator

of the Federal Aviation Administration may, as the Administrator

determines to be appropriate, require such employment investigations or criminal history records checks for individuals performing

those functions on the date of the enactment of this Act.

SEC. 305. INTERIM DEPLOYMENT OF COMMERCIALLY AVAILABLE

EXPLOSIVE DETECTION EQUIPMENT.

(a) IN GENERAL.—Section 44913(a) is amended—

(1) by redesignating paragraph (3) as paragraph (4); and

(2) by inserting after paragraph (2) the following:

‘‘(3) Until such time as the Administrator determines that

equipment certified under paragraph (1) is commercially available

and has successfully completed operational testing as provided in

paragraph (1), the Administrator shall facilitate the deployment

of such approved commercially available explosive detection devices

as the Administrator determines will enhance aviation security

significantly. The Administrator shall require that equipment

deployed under this paragraph be replaced by equipment certified

under paragraph (1) when equipment certified under paragraph

(1) becomes commercially available. The Administrator is authorized, based on operational considerations at individual airports,

to waive the required installation of commercially available equipment under paragraph (1) in the interests of aviation security.

The Administrator may permit the requirements of this paragraph

to be met at airports by the deployment of dogs or other appropriate

animals to supplement equipment for screening passengers, baggage, mail, or cargo for explosives or weapons.’’.

(b) AGREEMENTS.—The Administrator is authorized to use noncompetitive or cooperative agreements with air carriers and airport

authorities that provide for the Administrator to purchase and

assist in installing advanced security equipment for the use of

such entities.

SEC. 306. AUDIT OF PERFORMANCE OF BACKGROUND CHECKS FOR

CERTAIN PERSONNEL.

Section 44936(a) is amended by adding at the end the following:

‘‘(3) The Administrator shall provide for the periodic audit

of the effectiveness of criminal history record checks conducted

under paragraph (1) of this subsection.’’.
H. R. 3539—41

SEC. 307. PASSENGER PROFILING.

The Administrator of the Federal Aviation Administration, the

Secretary of Transportation, the intelligence community, and the

law enforcement community should continue to assist air carriers

in developing computer-assisted passenger profiling programs and

other appropriate passenger profiling programs which should be

used in conjunction with other security measures and technologies.

SEC. 308. AUTHORITY TO USE CERTAIN FUNDS FOR AIRPORT SECURITY

PROGRAMS AND ACTIVITIES.

(a) IN GENERAL.—Notwithstanding any other provision of law,

funds referred to in subsection (b) may be used for the improvement

of facilities and the purchase and deployment of equipment to

enhance and ensure the safety and security of passengers and

other persons involved in air travel.

(b) COVERED FUNDS.—The following funds may be used under

subsection (a):

(1) Project grants made under subchapter I of chapter

471 of title 49, United States Code.

(2) Passenger facility fees collected under section 40117

of title 49, United States Code.

SEC. 309. DEVELOPMENT OF AVIATION SECURITY LIAISON AGREEMENT.

The Secretary of Transportation and the Attorney General,

acting through the Administrator of the Federal Aviation Administration and the Director of the Federal Bureau of Investigation,

shall enter into an interagency agreement providing for the

establishment of an aviation security liaison at existing appropriate

Federal agencies’ field offices in or near cities served by a designated

high-risk airport.

SEC. 310. REGULAR JOINT THREAT ASSESSMENTS.

The Administrator of the Federal Aviation Administration and

the Director of the Federal Bureau of Investigation shall carry

out joint threat and vulnerability assessments on security every

3 years, or more frequently, as necessary, at each airport determined to be high risk.

SEC. 311. BAGGAGE MATCH REPORT.

(a) REPORT.—If a bag match pilot program is carried out as

recommended by the White House Conference on Aviation Safety

and Security, not later than the 30th day following the date of

completion of the pilot program, the Administrator of the Federal

Aviation Administration shall submit to Congress a report on the

safety, effectiveness, and operational effectiveness of the pilot program. The report shall also assess the extent to which implementation of baggage match requirements (coupled with the best available

technologies and methodologies, such as passenger profiling)

enhance domestic aviation security.

(b) SENSE OF THE SENATE.—It is the sense of the Senate that

the Administrator should work with airports and air carriers to

develop, to the extent feasible, effective domestic bag matching

proposals.

SEC. 312. ENHANCED SECURITY PROGRAMS.

(a) IN GENERAL.—Chapter 449 is amended by adding at the

end of subchapter I the following:
H. R. 3539—42

‘‘§ 44916. Assessments and evaluations

‘‘(a) PERIODIC ASSESSMENTS.—The Administrator shall require

each air carrier and airport (including the airport owner or operator

in cooperation with the air carriers and vendors serving each airport) that provides for intrastate, interstate, or foreign air transportation to conduct periodic vulnerability assessments of the security

systems of that air carrier or airport, respectively. The Administration shall perform periodic audits of such assessments.

‘‘(b) INVESTIGATIONS.—The Administrator shall conduct periodic

and unannounced inspections of security systems of airports and

air carriers to determine the effectiveness and vulnerabilities of

such systems. To the extent allowable by law, the Administrator

may provide for anonymous tests of those security systems.’’.

(b) CLERICAL AMENDMENT.—The table of sections for such chapter is amended by inserting after the item relating to section 44915

the following:

‘‘44916. Assessments and evaluations.’’.

SEC. 313. REPORT ON AIR CARGO.

(a) REPORT.—Not later than 90 days after the date of the

enactment of this Act, the Secretary of Transportation shall transmit to Congress a report on any changes recommended and implemented as a result of the White House Commission on Aviation

Safety and Security to enhance and supplement screening and

inspection of cargo, mail, and company-shipped materials transported in air commerce.

(b) CONTENTS.—The report shall include—

(1) an assessment of the effectiveness of the changes

referred to in subsection (a);

(2) an assessment of the oversight by the Federal Aviation

Administration of inspections of shipments of mail and cargo

by domestic and foreign air carriers;

(3) an assessment of the need for additional security measures with respect to such inspections;

(4) an assessment of the adequacy of inspection and screening of cargo on passenger air carriers; and

(5) any additional recommendations, and if necessary any

legislative proposals, necessary to carry out additional changes.

(c) SENSE OF THE SENATE.—It is the sense of the Senate that

the inspection of cargo, mail, and company-shipped materials can

be enhanced.

SEC. 314. SENSE OF THE SENATE REGARDING ACTS OF INTERNATIONAL TERRORISM.

(a) FINDINGS.—The Senate finds that—

(1) there has been an intensification in the oppression

and disregard for human life among nations that are willing

to export terrorism;

(2) there has been an increase in attempts by criminal

terrorists to murder airline passengers through the destruction

of civilian airliners and the deliberate fear and death inflicted

through bombings of buildings and the kidnapping of tourists

and Americans residing abroad; and

(3) information widely available demonstrates that a

significant portion of international terrorist activity is statesponsored, -organized, -condoned, or -directed.
H. R. 3539—43

(b) SENSE OF THE SENATE.—It is the sense of the Senate that

if evidence establishes beyond a clear and reasonable doubt that

any act of hostility towards any United States citizen was an

act of international terrorism sponsored, organized, condoned, or

directed by any nation, a state of war should be considered to

exist or to have existed between the United States and that nation,

beginning as of the moment that the act of aggression occurs.

TITLE IV—AVIATION SAFETY

SEC. 401. ELIMINATION OF DUAL MANDATE.

(a) SAFETY CONSIDERATIONS IN PUBLIC INTEREST.—

(1) SAFETY AS HIGHEST PRIORITY.—Section 40101(d) is

amended—

(A) by redesignating paragraphs (1) through (6) as

paragraphs (2) through (7), respectively; and

(B) by inserting before paragraph (2), as so redesignated, the following:

‘‘(1) assigning, maintaining, and enhancing safety and security as the highest priorities in air commerce.’’.

(2) ELIMINATION OF PROMOTION.—Section 40101(d) is further amended—

(A) in paragraph (2), as redesignated by paragraph

(1)(A) of this subsection, by striking ‘‘its development and’’;

and

(B) in paragraph (3), as so redesignated—

(i) by striking ‘‘promoting, encouraging,’’ and

inserting ‘‘encouraging’’; and

(ii) by inserting before the period at the end ‘‘,

including new aviation technology’’.

(b) FAA SAFETY MISSION.—

(1) IN GENERAL.—Section 40104 is amended—

(A) by inserting ‘‘safety of’’ before ‘‘air commerce’’

in the section heading;

(B) by inserting ‘‘SAFETY OF’’ before ‘‘AIR COMMERCE’’

in the heading of subsection (a); and

(C) by inserting ‘‘safety of’’ before ‘‘air commerce’’ in

subsection (a).

(2) CLERICAL AMENDMENT.—The table of sections for chapter 401 is amended by striking the item relating to section

40104 and inserting the following:

‘‘40104. Promotion of civil aeronautics and safety of air commerce.’’.

SEC. 402. PROTECTION OF VOLUNTARILY SUBMITTED INFORMATION.

(a) IN GENERAL.—Chapter 401, as amended by section 253

of this Act, is further amended by adding at the end the following:

‘‘§ 40123. Protection of voluntarily submitted information

‘‘(a) IN GENERAL.—Notwithstanding any other provision of law,

neither the Administrator of the Federal Aviation Administration,

nor any agency receiving information from the Administrator, shall

disclose voluntarily-provided safety or security related information

if the Administrator finds that—

‘‘(1) the disclosure of the information would inhibit the

voluntary provision of that type of information and that the
H. R. 3539—44

receipt of that type of information aids in fulfilling the Administrator’s safety and security responsibilities; and

‘‘(2) withholding such information from disclosure would

be consistent with the Administrator’s safety and security

responsibilities.

‘‘(b) REGULATIONS.—The Administrator shall issue regulations

to carry out this section.’’.

(b) CONFORMING AMENDMENT.—The table of sections for such

chapter is amended by adding at the end the following:

‘‘40123. Protection of voluntarily submitted information.’’.

SEC. 403. SUPPLEMENTAL TYPE CERTIFICATES.

Section 44704 is amended—

(1) by redesignating subsections (b) and (c) as subsections

(c) and (d), respectively; and

(2) by inserting after subsection (a) the following:

‘‘(b) SUPPLEMENTAL TYPE CERTIFICATES.—

‘‘(1) ISSUANCE.—The Administrator may issue a type certificate designated as a supplemental type certificate for a change

to an aircraft, aircraft engine, propeller, or appliance.

‘‘(2) CONTENTS.—A supplemental type certificate issued

under paragraph (1) shall consist of the change to the aircraft,

aircraft engine, propeller, or appliance with respect to the previously issued type certificate for the aircraft, aircraft engine,

propeller, or appliance.

‘‘(3) REQUIREMENT.—If the holder of a supplemental type

certificate agrees to permit another person to use the certificate

to modify an aircraft, aircraft engine, propeller, or appliance,

the holder shall provide the other person with written evidence,

in a form acceptable to the Administrator, of that agreement.

A person may change an aircraft, aircraft engine, propeller,

or appliance based on a supplemental type certificate only

if the person requesting the change is the holder of the supplemental type certificate or has permission from the holder to

make the change.’’.

SEC. 404. CERTIFICATION OF SMALL AIRPORTS.

(a) IN GENERAL.—Section 44706(a) is amended—

(1) by redesignating paragraph (2) as paragraph (3);

(2) by inserting after paragraph (1) the following:

‘‘(2) that is not located in the State of Alaska and serves

any scheduled passenger operation of an air carrier operating

aircraft designed for more than 9 passenger seats but less

than 31 passenger seats; and’’;

(3) by striking ‘‘and’’ at the end of paragraph (3), as redesignated by paragraph (1) of this subsection;

(4) by striking ‘‘(3) when’’ and inserting ‘‘if’’; and

(5) by moving the matter following paragraph (3), as

redesignated by paragraph (1) of this subsection, to the left

flush full measure.

(b) COMMUTER AIRPORTS.—Section 44706 is amended by adding

at the end the following:

‘‘(d) COMMUTER AIRPORTS.—In developing the terms required

by subsection (b) for airports covered by subsection (a)(2), the

Administrator shall identify and consider a reasonable number

of regulatory alternatives and select from such alternatives the

least costly, most cost-effective or the least burdensome alternative
H. R. 3539—45

that will provide comparable safety at airports described in subsections (a)(1) and (a)(2).’’.

(c) EFFECTIVE DATE.—Section 44706 is further amended by

adding at the end the following:

‘‘(e) EFFECTIVE DATE.—Any regulation establishing the terms

required by subsection (b) for airports covered by subsection (a)(2)

shall not take effect until such regulation, and a report on the

economic impact of the regulation on air service to the airports

covered by the rule, has been submitted to Congress and 120

days have elapsed following the date of such submission.’’.

(d) LIMITATION ON STATUTORY CONSTRUCTION.—Section 44706

is further amended by adding at the end the following:

‘‘(f) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this

title may be construed as requiring a person to obtain an airport

operating certificate if such person does not desire to operate an

airport described in subsection (a).’’.

SEC. 405. AUTHORIZATION OF APPROPRIATIONS FOR STATE-SPECIFIC

SAFETY MEASURES.

There are authorized to be appropriated to the Federal Aviation

Administration not more than $10,000,000 for fiscal year 1997

for the purpose of addressing State-specific aviation safety problems

identified by the National Transportation Safety Board.

SEC. 406. AIRCRAFT ENGINE STANDARDS.

(a) STANDARDS AND REGULATIONS.—Subsection (a)(1) of section

44715 is amended to read as follows:

‘‘(a) STANDARDS AND REGULATIONS.—(1)(A) To relieve and protect the public health and welfare from aircraft noise and sonic

boom, the Administrator of the Federal Aviation Administration,

as he deems necessary, shall prescribe—

‘‘(i) standards to measure aircraft noise and sonic

boom; and

‘‘(ii) regulations to control and abate aircraft noise and

sonic boom.

‘‘(B) The Administrator, as the Administrator deems appropriate, shall provide for the participation of a representative of

the Environmental Protection Agency on such advisory committees

or associated working groups that advise the Administrator on

matters related to the environmental effects of aircraft and aircraft

engines.’’.

(b) INTERAGENCY COOPERATION.—Section 231(a)(2) of the Clean

Air Act (42 U.S.C. 7571(a)(2)) is amended—

(1) by inserting ‘‘(A)’’ before ‘‘The Administrator’’; and

(2) by adding at the end the following:

‘‘(B)(i) The Administrator shall consult with the Administrator

of the Federal Aviation Administration on aircraft engine emission

standards.

‘‘(ii) The Administrator shall not change the aircraft engine

emission standards if such change would significantly increase noise

and adversely affect safety.’’.

SEC. 407. ACCIDENT AND SAFETY DATA CLASSIFICATION; REPORT ON

EFFECTS OF PUBLICATION AND AUTOMATED SURVEILLANCE TARGETING SYSTEMS.

(a) ACCIDENT AND SAFETY DATA CLASSIFICATION.—
H. R. 3539—46

(1) IN GENERAL.—Subchapter II of chapter 11 of title 49,

United States Code, is amended by adding at the end the

following:

‘‘§ 1119. Accident and safety data classification and

publication

‘‘(a) IN GENERAL.—Not later than 90 days after the date of

the enactment of this section, the National Transportation Safety

Board shall, in consultation and coordination with the Administrator of the Federal Aviation Administration, develop a system

for classifying air carrier accident data maintained by the Board.

‘‘(b) REQUIREMENTS FOR CLASSIFICATION SYSTEM.— ‘‘(1) IN GENERAL.—The system developed under this section

shall provide for the classification of accident and safety data

in a manner that, in comparison to the system in effect on

the date of the enactment of this section, provides for safetyrelated categories that provide clearer descriptions of accidents

associated with air transportation, including a more refined

classification of accidents which involve fatalities, injuries, or

substantial damage and which are only related to the operation

of an aircraft.

‘‘(2) PUBLIC COMMENT.—In developing a system of classification under paragraph (1), the Board shall provide adequate

opportunity for public review and comment.

‘‘(3) FINAL CLASSIFICATION.—After providing for public

review and comment, and after consulting with the Administrator, the Board shall issue final classifications. The Board

shall ensure that air travel accident covered under this section

is classified in accordance with the final classifications issued

under this section for data for calendar year 1997, and for

each subsequent calendar year.

‘‘(4) PUBLICATION.—The Board shall publish on a periodic

basis accident and safety data in accordance with the final

classifications issued under paragraph (3).

‘‘(5) RECOMMENDATIONS OF THE ADMINISTRATOR.—The

Administrator may, from time to time, request the Board to

consider revisions (including additions to the classification system developed under this section). The Board shall respond

to any request made by the Administrator under this section

not later than 90 days after receiving that request.’’.

(2) CONFORMING AMENDMENT.—The table of sections for

subchapter II of chapter 11 of title 49, United States Code,

is amended by adding at the end the following:

‘‘1119. Accident and safety data classification and publication.’’.

(b) AUTOMATED SURVEILLANCE TARGETING SYSTEMS.—Section

44713 is amended by adding at the end the following:

‘‘(e) AUTOMATED SURVEILLANCE TARGETING SYSTEMS.— ‘‘(1) IN GENERAL.—The Administrator shall give high

priority to developing and deploying a fully enhanced safety

performance analysis system that includes automated surveillance to assist the Administrator in prioritizing and targeting

surveillance and inspection activities of the Federal Aviation

Administration.

‘‘(2) DEADLINES FOR DEPLOYMENT.—

‘‘(A) INITIAL PHASE.—The initial phase of the operational deployment of the system developed under this

subsection shall begin not later than December 31, 1997.
H. R. 3539—47

‘‘(B) FINAL PHASE.—The final phase of field deployment

of the system developed under this subsection shall begin

not later than December 31, 1999. By that date, all principal operations and maintenance inspectors of the

Administration, and appropriate supervisors and analysts

of the Administration shall have been provided access to

the necessary information and resources to carry out the

system.

‘‘(3) INTEGRATION OF INFORMATION.—In developing the system under this section, the Administration shall consider the

near-term integration of accident and incident data into the

safety performance analysis system under this subsection.’’.

TITLE V—PILOT RECORD SHARING

SEC. 501. SHORT TITLE.

This title may be cited as the ‘‘Pilot Records Improvement

Act of 1996’’.

SEC. 502. EMPLOYMENT INVESTIGATIONS OF PILOT APPLICANTS.

(a) IN GENERAL.—Section 44936 is amended by adding at the

end the following:

‘‘(f) RECORDS OF EMPLOYMENT OF PILOT APPLICANTS.—

‘‘(1) IN GENERAL.—Before hiring an individual as a pilot,

an air carrier shall request and receive the following information:

‘‘(A) FAA RECORDS.—From the Administrator of the

Federal Aviation Administration, records pertaining to the

individual that are maintained by the Administrator

concerning—

‘‘(i) current airman certificates (including airman

medical certificates) and associated type ratings,

including any limitations to those certificates and

ratings; and

‘‘(ii) summaries of legal enforcement actions resulting in a finding by the Administrator of a violation

of this title or a regulation prescribed or order issued

under this title that was not subsequently overturned.

‘‘(B) AIR CARRIER AND OTHER RECORDS.—From any air

carrier or other person that has employed the individual

at any time during the 5-year period preceding the date

of the employment application of the individual, or from

the trustee in bankruptcy for such air carrier or person—

‘‘(i) records pertaining to the individual that are

maintained by an air carrier (other than records relating to flight time, duty time, or rest time) under regulations set forth in—

‘‘(I) section 121.683 of title 14, Code of Federal

Regulations;

‘‘(II) paragraph (A) of section VI, appendix I,

part 121 of such title;

‘‘(III) paragraph (A) of section IV, appendix

J, part 121 of such title;

‘‘(IV) section 125.401 of such title; and

‘‘(V) section 135.63(a)(4) of such title; and
H. R. 3539—48

‘‘(ii) other records pertaining to the individual that

are maintained by the air carrier or person

concerning—

‘‘(I) the training, qualifications, proficiency, or

professional competence of the individual, including comments and evaluations made by a check

airman designated in accordance with section

121.411, 125.295, or 135.337 of such title;

‘‘(II) any disciplinary action taken with respect

to the individual that was not subsequently overturned; and

‘‘(III) any release from employment or resignation, termination, or disqualification with respect

to employment.

‘‘(C) NATIONAL DRIVER REGISTER RECORDS.—In accordance with section 30305(b)(7), from the chief driver licensing official of a State, information concerning the motor

vehicle driving record of the individual.

‘‘(2) WRITTEN CONSENT; RELEASE FROM LIABILITY.—An air

carrier making a request for records under paragraph (1)—

‘‘(A) shall be required to obtain written consent to

the release of those records from the individual that is

the subject of the records requested; and

‘‘(B) may, notwithstanding any other provision of law

or agreement to the contrary, require the individual who

is the subject of the records to request to execute a release

from liability for any claim arising from the furnishing

of such records to or the use of such records by such

air carrier (other than a claim arising from furnishing

information known to be false and maintained in violation

of a criminal statute).

‘‘(3) 5-YEAR REPORTING PERIOD.—A person shall not furnish

a record in response to a request made under paragraph (1)

if the record was entered more than 5 years before the date

of the request, unless the information concerns a revocation

or suspension of an airman certificate or motor vehicle license

that is in effect on the date of the request.

‘‘(4) REQUIREMENT TO MAINTAIN RECORDS.—The Administrator shall maintain pilot records described in paragraph (1)(A)

for a period of at least 5 years.

‘‘(5) RECEIPT OF CONSENT; PROVISION OF INFORMATION.—

A person shall not furnish a record in response to a request

made under paragraph (1) without first obtaining a copy of

the written consent of the individual who is the subject of

the records requested. A person who receives a request for

records under this paragraph shall furnish a copy of all of

such requested records maintained by the person not later

than 30 days after receiving the request.

‘‘(6) RIGHT TO RECEIVE NOTICE AND COPY OF ANY RECORD

FURNISHED.—A person who receives a request for records under

paragraph (1) shall provide to the individual who is the subject

of the records—

‘‘(A) on or before the 20th day following the date of

receipt of the request, written notice of the request and

of the individual’s right to receive a copy of such records;

and
H. R. 3539—49

‘‘(B) in accordance with paragraph (10), a copy of such

records, if requested by the individual.

‘‘(7) REASONABLE CHARGES FOR PROCESSING REQUESTS AND

FURNISHING COPIES.—A person who receives a request under

paragraph (1) or (6) may establish a reasonable charge for

the cost of processing the request and furnishing copies of

the requested records.

‘‘(8) STANDARD FORMS.—The Administrator shall

promulgate—

‘‘(A) standard forms that may be used by an air carrier

to request records under paragraph (1); and

‘‘(B) standard forms that may be used by an air

carrier to—

‘‘(i) obtain the written consent of the individual

who is the subject of a request under paragraph (1);

and

‘‘(ii) inform the individual of—

‘‘(I) the request; and

‘‘(II) the individual right of that individual

to receive a copy of any records furnished in

response to the request.

‘‘(9) RIGHT TO CORRECT INACCURACIES.—An air carrier that

maintains or requests and receives the records of an individual

under paragraph (1) shall provide the individual with a reasonable opportunity to submit written comments to correct any

inaccuracies contained in the records before making a final

hiring decision with respect to the individual.

‘‘(10) RIGHT OF PILOT TO REVIEW CERTAIN RECORDS.—Notwithstanding any other provision of law or agreement, an air

carrier shall, upon written request from a pilot employed by

such carrier, make available, within a reasonable time of the

request, to the pilot for review, any and all employment records

referred to in paragraph (1)(B) (i) or (ii) pertaining to the

employment of the pilot.

‘‘(11) PRIVACY PROTECTIONS.—An air carrier that receives

the records of an individual under paragraph (1) may use

such records only to assess the qualifications of the individual

in deciding whether or not to hire the individual as a pilot.

The air carrier shall take such actions as may be necessary

to protect the privacy of the pilot and the confidentiality of

the records, including ensuring that information contained in

the records is not divulged to any individual that is not directly

involved in the hiring decision.

‘‘(12) PERIODIC REVIEW.—Not later than 18 months after

the date of the enactment of the Pilot Records Improvement

Act of 1996, and at least once every 3 years thereafter, the

Administrator shall transmit to Congress a statement that

contains, taking into account recent developments in the aviation industry—

‘‘(A) recommendations by the Administrator concerning

proposed changes to Federal Aviation Administration

records, air carrier records, and other records required

to be furnished under subparagraphs (A) and (B) of paragraph (1); or

‘‘(B) reasons why the Administrator does not recommend any proposed changes to the records referred to

in subparagraph (A).
H. R. 3539—50

‘‘(13) REGULATIONS.—The Administrator may prescribe

such regulations as may be necessary—

‘‘(A) to protect—

‘‘(i) the personal privacy of any individual whose

records are requested under paragraph (1); and

‘‘(ii) the confidentiality of those records;

‘‘(B) to preclude the further dissemination of records

received under paragraph (1) by the person who requested

those records; and

‘‘(C) to ensure prompt compliance with any request

made under paragraph (1).

‘‘(g) LIMITATION ON LIABILITY; PREEMPTION OF STATE LAW.—

‘‘(1) LIMITATION ON LIABILITY.—No action or proceeding

may be brought by or on behalf of an individual who has

applied for or is seeking a position with an air carrier as

a pilot and who has signed a release from liability, as provided

for under paragraph (2), against—

‘‘(A) the air carrier requesting the records of that

individual under subsection (f)(1);

‘‘(B) a person who has complied with such request;

‘‘(C) a person who has entered information contained

in the individual’s records; or

‘‘(D) an agent or employee of a person described in

subparagraph (A) or (B);

in the nature of an action for defamation, invasion of privacy,

negligence, interference with contract, or otherwise, or under

any Federal or State law with respect to the furnishing or

use of such records in accordance with subsection (f).

‘‘(2) PREEMPTION.—No State or political subdivision thereof

may enact, prescribe, issue, continue in effect, or enforce any

law (including any regulation, standard, or other provision having the force and effect of law) that prohibits, penalizes, or

imposes liability for furnishing or using records in accordance

with subsection (f).

‘‘(3) PROVISION OF KNOWINGLY FALSE INFORMATION.—Paragraphs (1) and (2) shall not apply with respect to a person

who furnishes information in response to a request made under

subsection (f)(1), that—

‘‘(A) the person knows is false; and

‘‘(B) was maintained in violation of a criminal statute

of the United States.

‘‘(h) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in

subsection (f) shall be construed as precluding the availability of

the records of a pilot in an investigation or other proceeding concerning an accident or incident conducted by the Administrator, the

National Transportation Safety Board, or a court.’’.

(b) CONFORMING AMENDMENTS.—Section 30305(b) is amended—

(1) by redesignating paragraph (7) as paragraph (8); and

(2) by inserting after paragraph (6) the following:

‘‘(7) An individual who is seeking employment by an air

carrier as a pilot may request the chief driver licensing official

of a State to provide information about the individual under

paragraph (2) to the prospective employer of the individual

or to the Secretary of Transportation. Information may not

be obtained from the National Driver Register under this subsection if the information was entered in the Register more

than 5 years before the request unless the information is about
H. R. 3539—51

a revocation or suspension still in effect on the date of the

request.’’.

(c) CIVIL PENALTIES.—Section 46301, as amended by section

1220(b) of this Act, is further amended—

(1) in each of subsections (a)(1)(A), (d)(2), and (f)(1)(A)(i)

by inserting ‘‘44724,’’ after ‘‘44718(d),’’; and

(2) in subsection (a)(2)(A) by inserting ‘‘44724,’’ after

‘‘44716,’’.

(d) APPLICABILITY.—The amendments made by this section shall

apply to any air carrier hiring an individual as a pilot whose

application was first received by the carrier on or after the 120th

day following the date of the enactment of this Act.

SEC. 503. STUDIES OF MINIMUM STANDARDS FOR PILOT QUALIFICATIONS AND OF PAY FOR TRAINING.

(a) STUDY.—The Administrator of the Federal Aviation

Administration shall appoint a task force consisting of appropriate

representatives of the aviation industry to conduct—

(1) a study directed toward the development of—

(A) standards and criteria for preemployment screening

tests measuring the psychomotor coordination, general

intellectual capacity, instrument and mechanical comprehension, and physical and mental fitness of an applicant

for employment as a pilot by an air carrier; and

(B) standards and criteria for pilot training facilities

to be licensed by the Administrator and which will assure

that pilots trained at such facilities meet the

preemployment screening standards and criteria described

in subparagraph (A); and

(2) a study to determine if the practice of some air carriers

to require employees or prospective employees to pay for the

training or experience that is needed to perform flight check

duties for an air carrier is in the public interest.

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Administrator shall transmit to Congress

a report on the results of the study conducted under subsection

(a)(2).

SEC. 504. STUDY OF MINIMUM FLIGHT TIME.

(a) STUDY.—The Administrator of the Federal Aviation

Administration shall conduct a study to determine whether current

minimum flight time requirements applicable to individuals seeking

employment as a pilot with an air carrier are sufficient to ensure

public safety.

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Administrator shall transmit to Congress

a report on the results of the study.

TITLE VI—CHILD PILOT SAFETY

SEC. 601. SHORT TITLE.

This title may be cited as the ‘‘Child Pilot Safety Act’’.

SEC. 602. CHILD PILOT SAFETY.

(a) MANIPULATION OF FLIGHT CONTROLS.—

(1) IN GENERAL.—Chapter 447 is amended by adding at

the end the following:
H. R. 3539—52

‘‘§ 44724. Manipulation of flight controls

‘‘(a) PROHIBITION.—No pilot in command of an aircraft may

allow an individual who does not hold—

‘‘(1) a valid private pilots certificate issued by the Administrator of the Federal Aviation Administration under part 61

of title 14, Code of Federal Regulations; and

‘‘(2) the appropriate medical certificate issued by the

Administrator under part 67 of such title,

to manipulate the controls of an aircraft if the pilot knows or

should have known that the individual is attempting to set a

record or engage in an aeronautical competition or aeronautical

feat, as defined by the Administrator.

‘‘(b) REVOCATION OF AIRMEN CERTIFICATES.—The Administrator

shall issue an order revoking a certificate issued to an airman

under section 44703 of this title if the Administrator finds that

while acting as a pilot in command of an aircraft, the airman

has permitted another individual to manipulate the controls of

the aircraft in violation of subsection (a).

‘‘(c) PILOT IN COMMAND DEFINED.—In this section, the term

‘pilot in command’ has the meaning given such term by section

1.1 of title 14, Code of Federal Regulations.’’.

(2) CONFORMING AMENDMENT.—The table of sections at

the beginning of such chapter is amended by adding at the

end the following:

‘‘44724. Manipulation of flight controls.’’.

(b) CHILDREN FLYING AIRCRAFT.—

(1) STUDY.—The Administrator of the Federal Aviation

Administration shall conduct a study of the impacts of children

flying aircraft.

(2) CONSIDERATIONS.—In conducting the study, the

Administrator shall consider the effects of imposing any restrictions on children flying aircraft on safety and on the future

of general aviation in the United States.

(3) REPORT.—Not later than 6 months after the date of

the enactment of this Act, the Administrator shall issue a

report containing the results of the study, together with recommendations on—

(A) whether the restrictions established by the amendment made by subsection (a)(1) should be modified or

repealed; and

(B) whether certain individuals or groups should be

exempt from any age, altitude, or other restrictions that

the Administrator may impose by regulation.

(4) REGULATIONS.—As a result of the findings of the study,

the Administrator may issue regulations imposing age, altitude,

or other restrictions on children flying aircraft.

TITLE VII—FAMILY ASSISTANCE

SEC. 701. SHORT TITLE.

This title may be cited as the ‘‘Aviation Disaster Family Assistance Act of 1996’’.
H. R. 3539—53

SEC. 702. ASSISTANCE BY NATIONAL TRANSPORTATION SAFETY BOARD

TO FAMILIES OF PASSENGERS INVOLVED IN AIRCRAFT

ACCIDENTS.

(a) AUTHORITY TO PROVIDE ASSISTANCE.— (1) IN GENERAL.—Subchapter III of chapter 11 is amended

by adding at the end the following:

‘‘§ 1136. Assistance to families of passengers involved in

aircraft accidents

‘‘(a) IN GENERAL.—As soon as practicable after being notified

of an aircraft accident within the United States involving an air

carrier or foreign air carrier and resulting in a major loss of life,

the Chairman of the National Transportation Safety Board shall—

‘‘(1) designate and publicize the name and phone number

of a director of family support services who shall be an employee

of the Board and shall be responsible for acting as a point

of contact within the Federal Government for the families of

passengers involved in the accident and a liaison between the

air carrier or foreign air carrier and the families; and

‘‘(2) designate an independent nonprofit organization, with

experience in disasters and posttrauma communication with

families, which shall have primary responsibility for coordinating the emotional care and support of the families of passengers

involved in the accident.

‘‘(b) RESPONSIBILITIES OF THE BOARD.—The Board shall have

primary Federal responsibility for facilitating the recovery and

identification of fatally-injured passengers involved in an accident

described in subsection (a).

‘‘(c) RESPONSIBILITIES OF DESIGNATED ORGANIZATION.—The

organization designated for an accident under subsection (a)(2) shall

have the following responsibilities with respect to the families of

passengers involved in the accident:

‘‘(1) To provide mental health and counseling services, in

coordination with the disaster response team of the air carrier

or foreign air carrier involved.

‘‘(2) To take such actions as may be necessary to provide

an environment in which the families may grieve in private.

‘‘(3) To meet with the families who have traveled to the

location of the accident, to contact the families unable to travel

to such location, and to contact all affected families periodically

thereafter until such time as the organization, in consultation

with the director of family support services designated for the

accident under subsection (a)(1), determines that further assistance is no longer needed.

‘‘(4) To communicate with the families as to the roles of

the organization, government agencies, and the air carrier or

foreign air carrier involved with respect to the accident and

the post-accident activities.

‘‘(5) To arrange a suitable memorial service, in consultation

with the families.

‘‘(d) PASSENGER LISTS.—

‘‘(1) REQUESTS FOR PASSENGER LISTS.—

‘‘(A) REQUESTS BY DIRECTOR OF FAMILY SUPPORT SERVICES.—It shall be the responsibility of the director of family

support services designated for an accident under subsection (a)(1) to request, as soon as practicable, from the

air carrier or foreign air carrier involved in the accident
H. R. 3539—54

a list, which is based on the best available information

at the time of the request, of the names of the passengers

that were aboard the aircraft involved in the accident.

‘‘(B) REQUESTS BY DESIGNATED ORGANIZATION.—The

organization designated for an accident under subsection

(a)(2) may request from the air carrier or foreign air carrier

involved in the accident a list described in subparagraph

(A).

‘‘(2) USE OF INFORMATION.—The director of family support

services and the organization may not release to any person

information on a list obtained under paragraph (1) but may

provide information on the list about a passenger to the family

of the passenger to the extent that the director of family support

services or the organization considers appropriate.

‘‘(e) CONTINUING RESPONSIBILITIES OF THE BOARD.—In the

course of its investigation of an accident described in subsection

(a), the Board shall, to the maximum extent practicable, ensure

that the families of passengers involved in the accident—

‘‘(1) are briefed, prior to any public briefing, about the

accident, its causes, and any other findings from the investigation; and

‘‘(2) are individually informed of and allowed to attend

any public hearings and meetings of the Board about the

accident.

‘‘(f) USE OF AIR CARRIER RESOURCES.—To the extent practicable,

the organization designated for an accident under subsection (a)(2)

shall coordinate its activities with the air carrier or foreign air

carrier involved in the accident so that the resources of the carrier

can be used to the greatest extent possible to carry out the organization’s responsibilities under this section.

‘‘(g) PROHIBITED ACTIONS.—

‘‘(1) ACTIONS TO IMPEDE THE BOARD.—No person (including

a State or political subdivision) may impede the ability of

the Board (including the director of family support services

designated for an accident under subsection (a)(1)), or an

organization designated for an accident under subsection (a)(2),

to carry out its responsibilities under this section or the ability

of the families of passengers involved in the accident to have

contact with one another.

‘‘(2) UNSOLICITED COMMUNICATIONS.—In the event of an

accident involving an air carrier providing interstate or foreign

air transportation, no unsolicited communication concerning

a potential action for personal injury or wrongful death may

be made by an attorney or any potential party to the litigation

to an individual injured in the accident, or to a relative of

an individual involved in the accident, before the 30th day

following the date of the accident.

‘‘(h) DEFINITIONS.—In this section, the following definitions

apply:

‘‘(1) AIRCRAFT ACCIDENT.—The term ‘aircraft accident’

means any aviation disaster regardless of its cause or suspected

cause.

‘‘(2) PASSENGER.—The term ‘passenger’ includes an

employee of an air carrier aboard an aircraft.’’.
H. R. 3539—55

(2) CONFORMING AMENDMENT.—The table of sections for

such chapter is amended by inserting after the item relating

to section 1135 the following:

‘‘1136. Assistance to families of passengers involved in aircraft accidents.’’.

(b) PENALTIES.—Section 1155(a)(1) of such title is amended—

(1) by striking ‘‘or 1134(b) or (f)(1)’’ and inserting ‘‘, section

1134(b), section 1134(f)(1), or section 1136(g)’’; and

(2) by striking ‘‘either of’’ and inserting ‘‘any of’’.

SEC. 703. AIR CARRIER PLANS TO ADDRESS NEEDS OF FAMILIES OF

PASSENGERS INVOLVED IN AIRCRAFT ACCIDENTS.

(a) IN GENERAL.—Chapter 411 is amended by adding at the

end the following:

‘‘§ 41113. Plans to address needs of families of passengers

involved in aircraft accidents

‘‘(a) SUBMISSION OF PLANS.—Not later than 6 months after

the date of the enactment of this section, each air carrier holding

a certificate of public convenience and necessity under section 41102

of this title shall submit to the Secretary and the Chairman of

the National Transportation Safety Board a plan for addressing

the needs of the families of passengers involved in any aircraft

accident involving an aircraft of the air carrier and resulting in

a major loss of life.

‘‘(b) CONTENTS OF PLANS.—A plan to be submitted by an air

carrier under subsection (a) shall include, at a minimum, the

following:

‘‘(1) A plan for publicizing a reliable, toll-free telephone

number, and for providing staff, to handle calls from the families of the passengers.

‘‘(2) A process for notifying the families of the passengers,

before providing any public notice of the names of the passengers, either by utilizing the services of the organization

designated for the accident under section 1136(a)(2) of this

title or the services of other suitably trained individuals.

‘‘(3) An assurance that the notice described in paragraph

(2) will be provided to the family of a passenger as soon as

the air carrier has verified that the passenger was aboard

the aircraft (whether or not the names of all of the passengers

have been verified) and, to the extent practicable, in person.

‘‘(4) An assurance that the air carrier will provide to the

director of family support services designated for the accident

under section 1136(a)(1) of this title, and to the organization

designated for the accident under section 1136(a)(2) of this

title, immediately upon request, a list (which is based on the

best available information at the time of the request) of the

names of the passengers aboard the aircraft (whether or not

such names have been verified), and will periodically update

the list.

‘‘(5) An assurance that the family of each passenger will

be consulted about the disposition of all remains and personal

effects of the passenger within the control of the air carrier.

‘‘(6) An assurance that if requested by the family of a

passenger, any possession of the passenger within the control

of the air carrier (regardless of its condition) will be returned

to the family unless the possession is needed for the accident

investigation or any criminal investigation.
H. R. 3539—56

‘‘(7) An assurance that any unclaimed possession of a passenger within the control of the air carrier will be retained

by the air carrier for at least 18 months.

‘‘(8) An assurance that the family of each passenger

will be consulted about construction by the air carrier of any

monument to the passengers, including any inscription on the

monument.

‘‘(9) An assurance that the treatment of the families of

nonrevenue passengers (and any other victim of the accident)

will be the same as the treatment of the families of revenue

passengers.

‘‘(10) An assurance that the air carrier will work with

any organization designated under section 1136(a)(2) of this

title on an ongoing basis to ensure that families of passengers

receive an appropriate level of services and assistance following

each accident.

‘‘(11) An assurance that the air carrier will provide reasonable compensation to any organization designated under section

1136(a)(2) of this title for services provided by the organization.

‘‘(12) An assurance that the air carrier will assist the

family of a passenger in traveling to the location of the accident

and provide for the physical care of the family while the family

is staying at such location.

‘‘(13) An assurance that the air carrier will commit sufficient resources to carry out the plan.

‘‘(c) CERTIFICATE REQUIREMENT.—After the date that is 6

months after the date of the enactment of this section, the Secretary

may not approve an application for a certificate of public convenience and necessity under section 41102 of this title unless the

applicant has included as part of such application a plan that

meets the requirements of subsection (b).

‘‘(d) LIMITATION ON LIABILITY.—An air carrier shall not be

liable for damages in any action brought in a Federal or State

court arising out of the performance of the air carrier in preparing

or providing a passenger list pursuant to a plan submitted by

the air carrier under subsection (b), unless such liability was caused

by conduct of the air carrier which was grossly negligent or which

constituted intentional misconduct.

‘‘(e) AIRCRAFT ACCIDENT AND PASSENGER DEFINED.—In this

section, the terms ‘aircraft accident’ and ‘passenger’ have the meanings such terms have in section 1136 of this title.’’.

(b) CONFORMING AMENDMENT.—The table of sections for such

chapter is amended by adding at the end the following:

‘‘41113. Plans to address needs of families of passengers involved in aircraft

accidents.’’.

SEC. 704. ESTABLISHMENT OF TASK FORCE.

(a) ESTABLISHMENT.—The Secretary of Transportation, in

cooperation with the National Transportation Safety Board, the

Federal Emergency Management Agency, the American Red Cross,

air carriers, and families which have been involved in aircraft

accidents shall establish a task force consisting of representatives

of such entities and families, representatives of air carrier employees, and representatives of such other entities as the Secretary

considers appropriate.

(b) GUIDELINES AND RECOMMENDATIONS.—The task force established pursuant to subsection (a) shall develop—
H. R. 3539—57

(1) guidelines to assist air carriers in responding to aircraft

accidents;

(2) recommendations on methods to ensure that attorneys

and representatives of media organizations do not intrude on

the privacy of families of passengers involved in an aircraft

accident;

(3) recommendations on methods to ensure that the families

of passengers involved in an aircraft accident who are not

citizens of the United States receive appropriate assistance;

(4) recommendations on methods to ensure that State mental health licensing laws do not act to prevent out-of-state

mental health workers from working at the site of an aircraft

accident or other related sites;

(5) recommendations on the extent to which military

experts and facilities can be used to aid in the identification

of the remains of passengers involved in an aircraft accident;

and

(6) recommendations on methods to improve the timeliness

of the notification provided by air carriers to the families of

passengers involved in an aircraft accident, including—

(A) an analysis of the steps that air carriers would

have to take to ensure that an accurate list of passengers

on board the aircraft would be available within 1 hour

of the accident and an analysis of such steps to ensure

that such list would be available within 3 hours of the

accident;

(B) an analysis of the added costs to air carriers and

travel agents that would result if air carriers were required

to take the steps described in subparagraph (A);

(C) an analysis of any inconvenience to passengers,

including flight delays, that would result if air carriers

were required to take the steps described in subparagraph

(A); and

(D) an analysis of the implications for personal privacy

that would result if air carriers were required to take

the steps described in subparagraph (A).

(c) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Secretary shall transmit to Congress a report

containing the model plan and recommendations developed by the

task force under subsection (b).

SEC. 705. LIMITATION ON STATUTORY CONSTRUCTION.

Nothing in this title or any amendment made by this title

may be construed as limiting the actions that an air carrier may

take, or the obligations that an air carrier may have, in providing

assistance to the families of passengers involved in an aircraft

accident.

TITLE VIII—AIRPORT REVENUE

PROTECTION

SEC. 801. SHORT TITLE.

This title may be cited as the ‘‘Airport Revenue Protection

Act of 1996’’.
H. R. 3539—58

SEC. 802. FINDINGS; PURPOSE.

(a) IN GENERAL.—Congress finds that—

(1) section 47107 of title 49, United States Code, prohibits

the diversion of certain revenue generated by a public airport

as a condition of receiving a project grant;

(2) a grant recipient that uses airport revenue for purposes

that are not airport related in a manner inconsistent with

chapter 471 of title 49, United States Code, illegally diverts

airport revenues;

(3) any diversion of airport revenues in violation of the

condition referred to in paragraph (1) undermines the interest

of the United States in promoting a strong national air

transportation system that is responsive to the needs of airport

users;

(4) the Secretary and the Administrator have not enforced

airport revenue diversion rules adequately and must have additional regulatory tools to increase enforcement efforts; and

(5) sponsors who have been found to have illegally diverted

airport revenues—

(A) have not reimbursed or made restitution to airports

in a timely manner; and

(B) must be encouraged to do so.

(b) PURPOSE.—The purpose of this title is to ensure that airport

users are not burdened with hidden taxation for unrelated municipal services and activities by—

(1) eliminating the ability of any State or political subdivision thereof that is a recipient of a project grant to divert

airport revenues for purposes that are not related to an airport,

in violation of section 47107 of title 49, United States Code;

(2) imposing financial reporting requirements that are

designed to identify instances of illegal diversions referred to

in paragraph (1);

(3) establishing a statute of limitations for airport revenue

diversion actions;

(4) clarifying limitations on revenue diversion that are

permitted under chapter 471 of title 49, United States Code;

and

(5) establishing clear penalties and enforcement mechanisms for identifying and prosecuting airport revenue diversion.

SEC. 803. DEFINITIONS.

For purposes of this title, the following definitions apply:

(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the

Administrator of the Federal Aviation Administration.

(2) AIRPORT.—The term ‘‘airport’’ has the meaning provided

that term in section 47102(2) of title 49, United States Code.

(3) PROJECT GRANT.—The term ‘‘project grant’’ has the

meaning provided that term in section 47102(14) of title 49,

United States Code.

(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of Transportation.

(5) SPONSOR.—The term ‘‘sponsor’’ has the meaning provided that term in section 47102(19) of title 49, United States

Code.
H. R. 3539—59

SEC. 804. RESTRICTION ON USE OF AIRPORT REVENUES.

(a) IN GENERAL.—Subchapter I of chapter 471, as amended

by section 142 of this Act, is further amended by adding after

section 47132 the following:

‘‘§ 47133. Restriction on use of revenues

‘‘(a) PROHIBITION.—Local taxes on aviation fuel (except taxes

in effect on December 30, 1987) or the revenues generated by

an airport that is the subject of Federal assistance may not be

expended for any purpose other than the capital or operating

costs of—

‘‘(1) the airport;

‘‘(2) the local airport system; or

‘‘(3) any other local facility that is owned or operated by

the person or entity that owns or operates the airport that

is directly and substantially related to the air transportation

of passengers or property.

‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply if a provision

enacted not later than September 2, 1982, in a law controlling

financing by the airport owner or operator, or a covenant or assurance in a debt obligation issued not later than September 2, 1982,

by the owner or operator, provides that the revenues, including

local taxes on aviation fuel at public airports, from any of the

facilities of the owner or operator, including the airport, be used

to support not only the airport but also the general debt obligations

or other facilities of the owner or operator.

‘‘(c) RULE OF CONSTRUCTION.—Nothing in this section may be

construed to prevent the use of a State tax on aviation fuel to

support a State aviation program or the use of airport revenue

on or off the airport for a noise mitigation purpose.’’.

(b) PENALTIES.—Section 46301(a)(5) is amended to read as

follows:

‘‘(5) PENALTY FOR DIVERSION OF AVIATION REVENUES.—The

amount of a civil penalty assessed under this section for a

violation of section 47107(b) of this title (or any assurance

made under such section) or section 47133 of this title may

be increased above the otherwise applicable maximum amount

under this section to an amount not to exceed 3 times the

amount of revenues that are used in violation of such section.’’.

(c) CONFORMING AMENDMENT.—The table of sections for such

subchapter is amended by inserting after the item relating to section

47132, as added by section 142 of this Act, the following:

‘‘47133. Restriction on use of revenues.’’.

SEC. 805. REGULATIONS; AUDITS AND ACCOUNTABILITY.

(a) IN GENERAL.—Section 47107 is amended by adding at the

end the following:

‘‘(m) AUDIT CERTIFICATION.—

‘‘(1) IN GENERAL.—The Secretary of Transportation, acting

through the Administrator of the Federal Aviation Administration, shall promulgate regulations that require a recipient of

a project grant (or any other recipient of Federal financial

assistance that is provided for an airport) to include as part

of an annual audit conducted under sections 7501 through

7505 of title 31, a review and opinion of the review concerning

the funding activities with respect to an airport that is the

subject of the project grant (or other Federal financial
H. R. 3539—60

assistance) and the sponsors, owners, or operators (or other

recipients) involved.

‘‘(2) CONTENT OF REVIEW.—A review conducted under paragraph (1) shall provide reasonable assurances that funds paid

or transferred to sponsors are paid or transferred in a manner

consistent with the applicable requirements of this chapter

and any other applicable provision of law (including regulations

promulgated by the Secretary or the Administrator).

‘‘(3) REQUIREMENTS FOR AUDIT REPORT.—The report submitted to the Secretary under this subsection shall include a specific determination and opinion regarding the appropriateness

of the disposition of airport funds paid or transferred to a

sponsor.

‘‘(n) RECOVERY OF ILLEGALLY DIVERTED FUNDS.—

‘‘(1) IN GENERAL.—Not later than 180 days after the issuance of an audit or any other report that identifies an illegal

diversion of airport revenues (as determined under subsections

(b) and (l) and section 47133), the Secretary, acting through

the Administrator, shall—

‘‘(A) review the audit or report;

‘‘(B) perform appropriate factfinding; and

‘‘(C) conduct a hearing and render a final determination

concerning whether the illegal diversion of airport revenues

asserted in the audit or report occurred.

‘‘(2) NOTIFICATION.—Upon making such a finding, the Secretary, acting through the Administrator, shall provide written

notification to the sponsor and the airport of—

‘‘(A) the finding; and

‘‘(B) the obligations of the sponsor to reimburse the

airport involved under this paragraph.

‘‘(3) ADMINISTRATIVE ACTION.—The Secretary may withhold

any amount from funds that would otherwise be made available

to the sponsor, including funds that would otherwise be made

available to a State, municipality, or political subdivision

thereof (including any multimodal transportation agency or

transit authority of which the sponsor is a member entity)

as part of an apportionment or grant made available pursuant

to this title, if the sponsor—

‘‘(A) receives notification that the sponsor is required

to reimburse an airport; and

‘‘(B) has had an opportunity to reimburse the airport,

but has failed to do so.

‘‘(4) CIVIL ACTION.—If a sponsor fails to pay an amount

specified under paragraph (3) during the 180-day period beginning on the date of notification and the Secretary is unable

to withhold a sufficient amount under paragraph (3), the Secretary, acting through the Administrator, may initiate a civil

action under which the sponsor shall be liable for civil penalty

in an amount equal to the illegal diversion in question plus

interest (as determined under subsection (o)).

‘‘(5) DISPOSITION OF PENALTIES.—

‘‘(A) AMOUNTS WITHHELD.—The Secretary or the

Administrator shall transfer any amounts withheld under

paragraph (3) to the Airport and Airway Trust Fund.

‘‘(B) CIVIL PENALTIES.—With respect to any amount

collected by a court in a civil action under paragraph (4),

the court shall cause to be transferred to the Airport and
H. R. 3539—61

Airway Trust Fund any amount collected as a civil penalty

under paragraph (4).

‘‘(6) REIMBURSEMENT.—The Secretary, acting through the

Administrator, shall, as soon as practicable after any amount

is collected from a sponsor under paragraph (4), cause to be

transferred from the Airport and Airway Trust Fund to an

airport affected by a diversion that is the subject of a civil

action under paragraph (4), reimbursement in an amount equal

to the amount that has been collected from the sponsor under

paragraph (4) (including any amount of interest calculated

under subsection (o)).

‘‘(7) STATUTE OF LIMITATIONS.—No person may bring an

action for the recovery of funds illegally diverted in violation

of this section (as determined under subsections (b) and (l))

or section 47133 after the date that is 6 years after the date

on which the diversion occurred.

‘‘(o) INTEREST.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

the Secretary, acting through the Administrator, shall charge

a minimum annual rate of interest on the amount of any

illegal diversion of revenues referred to in subsection (n) in

an amount equal to the average investment interest rate for

tax and loan accounts of the Department of the Treasury (as

determined by the Secretary of the Treasury) for the applicable

calendar year, rounded to the nearest whole percentage point.

‘‘(2) ADJUSTMENT OF INTEREST RATES.—If, with respect to

a calendar quarter, the average investment interest rate for

tax and loan accounts of the Department of the Treasury

exceeds the average investment interest rate for the immediately preceding calendar quarter, rounded to the nearest

whole percentage point, the Secretary of the Treasury may

adjust the interest rate charged under this subsection in a

manner that reflects that change.

‘‘(3) ACCRUAL.—Interest assessed under subsection (n) shall

accrue from the date of the actual illegal diversion of revenues

referred to in subsection (n).

‘‘(4) DETERMINATION OF APPLICABLE RATE.—The applicable

rate of interest charged under paragraph (1) shall—

‘‘(A) be the rate in effect on the date on which interest

begins to accrue under paragraph (3); and

‘‘(B) remain at a rate fixed under subparagraph (A)

during the duration of the indebtedness.

‘‘(p) PAYMENT BY AIRPORT TO SPONSOR.—If, in the course of

an audit or other review conducted under this section, the Secretary

or the Administrator determines that an airport owes a sponsor

funds as a result of activities conducted by the sponsor or expenditures by the sponsor for the benefit of the airport, interest on

that amount shall be determined in the same manner as provided

in paragraphs (1) through (4) of subsection (o), except that the

amount of any interest assessed under this subsection shall be

determined from the date on which the Secretary or the Administrator makes that determination.’’.

(b) REVISION OF POLICIES AND PROCEDURES; DEADLINES.—

(1) IN GENERAL.—Not later than 90 days after the date

of the enactment of this Act, the Secretary, acting through

the Administrator, shall revise the policies and procedures

established under section 47107(l) of title 49, United States
H. R. 3539—62

Code, to take into account the amendments made to that section

by this title.

(2) STATUTE OF LIMITATIONS.—Section 47107(l) is amended

by adding at the end the following:

‘‘(5) STATUTE OF LIMITATIONS.—In addition to the statute

of limitations specified in subsection (n)(7), with respect to

project grants made under this chapter—

‘‘(A) any request by a sponsor to any airport for additional payments for services conducted off of the airport

or for reimbursement for capital contributions or operating

expenses shall be filed not later than 6 years after the

date on which the expense is incurred; and

‘‘(B) any amount of airport funds that are used to

make a payment or reimbursement as described in

subparagraph (A) after the date specified in that subparagraph shall be considered to be an illegal diversion of

airport revenues that is subject to subsection (n).’’.

SEC. 806. CONFORMING AMENDMENTS TO THE INTERNAL REVENUE

CODE OF 1986.

Section 9502 of the Internal Revenue Code of 1986 is

amended—

(1) by striking ‘‘and’’ at the end of subsection (b)(3);

(2) by striking the period at the end of subsection (b)(4)

and inserting ‘‘, and’’; and

(3) by adding at the end of subsection (b) the following:

‘‘(5) amounts determined by the Secretary of the Treasury

to be equivalent to the amounts of civil penalties collected

under section 47107(n) of title 49, United States Code.’’; and

(4) by adding at the end of subsection (d) the following:

‘‘(5) TRANSFERS FROM THE AIRPORT AND AIRWAY TRUST FUND

ON ACCOUNT OF CERTAIN AIRPORTS.—The Secretary of the Treasury may transfer from the Airport and Airway Trust Fund

to the Secretary of Transportation or the Administrator of

the Federal Aviation Administration an amount to make a

payment to an airport affected by a diversion that is the subject

of an administrative action under paragraph (3) or a civil

action under paragraph (4) of section 47107(n) of title 49,

United States Code.’’.

TITLE IX—METROPOLITAN

WASHINGTON AIRPORTS

SEC. 901. SHORT TITLE.

This title may be cited as the ‘‘Metropolitan Washington Airports Amendments Act of 1996’’.

SEC. 902. USE OF LEASED PROPERTY.

Section 6005(c)(2) of the Metropolitan Washington Airports Act

of 1986 (49 U.S.C. App. 2454(c)(2)) is amended by inserting before

the period at the end of the second sentence the following: ‘‘which

are not inconsistent with the needs of aviation’’.
H. R. 3539—63

SEC. 903. BOARD OF DIRECTORS.

(a) APPOINTMENT OF ADDITIONAL MEMBERS.—Section 6007(e)(1)

of the Metropolitan Washington Airports Act of 1986 (49 U.S.C.

App. 2456(e)(1)) is amended—

(1) in the matter preceding subparagraph (A) by striking

‘‘11’’ and inserting ‘‘13’’;

(2) in subparagraph (D) by striking ‘‘one member’’ and

inserting ‘‘three members’’.

(b) RESTRICTIONS.—Section 6007(e)(2) of the Metropolitan

Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)(2)) is

amended by striking ‘‘except that’’ and all that follows through

the period and inserting ‘‘except that the members appointed by

the President shall be registered voters of States other than Maryland, Virginia, or the District of Columbia.’’.

(c) TERMS.—Section 6007(e)(3) of the Metropolitan Washington

Airports Act of 1986 (49 U.S.C. App. 2456(e)(3)) is amended—

(1) in subparagraph (B) by striking ‘‘and’’ at the end;

(2) in subparagraph (C) by striking the period at the end

and inserting ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(D) by the President after the date of the enactment

of this subparagraph, 1 shall be appointed for 4 years.

A member may serve after the expiration of that member’s

term until a successor has taken office.’’.

(d) VACANCIES.—Section 6007(e) of the Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)) is amended

by redesignating paragraphs (4) and (5) as paragraphs (8) and

(9), respectively, and by inserting after paragraph (3) the following:

‘‘(4) VACANCIES.—A vacancy in the board of directors shall

be filled in the manner in which the original appointment

was made. Any member appointed to fill a vacancy occurring

before the expiration of the term for which the member’s predecessor was appointed shall be appointed only for the remainder

of such term.’’.

(e) POLITICAL PARTIES OF PRESIDENTIAL APPOINTEES.—Section

6007(e) of the Metropolitan Washington Airports Act of 1986 (49

U.S.C. App. 2456(e)) is amended by inserting after paragraph (4),

as inserted by subsection (d) of this section, the following:

‘‘(5) POLITICAL PARTIES OF PRESIDENTIAL APPOINTEES.—Not

more than 2 of the members of the board appointed by the

President may be of the same political party.’’.

(f) DUTIES OF PRESIDENTIAL APPOINTEES.—Section 6007(e) of

the Metropolitan Washington Airports Act of 1986 (49 U.S.C. App.

2456(e)) is amended by inserting after paragraph (5), as inserted

by subsection (e) of this section, the following:

‘‘(6) DUTIES OF PRESIDENTIAL APPOINTEES.—In carrying out

their duties on the board, members of the board appointed

by the President shall ensure that adequate consideration is

given to the national interest.’’.

(g) DEADLINE FOR PRESIDENTIAL APPOINTMENTS.—Section

6007(e) of the Metropolitan Washington Airports Act of 1986 (49

U.S.C. App. 2456(e)) is amended by inserting after paragraph (6),

as inserted by subsection (f) of this section, the following:

‘‘(7) DEADLINE FOR PRESIDENTIAL APPOINTMENTS.—

‘‘(A) DEADLINE.—The members to be appointed to the

board by the President under section 6007(e)(1)(D) shall

be appointed on or before September 30, 1997.
H. R. 3539—64

‘‘(B) APPLICABILITY OF LIMITATIONS.—If the deadline

of subparagraph (A) is not met, the Secretary and the

Airports Authority shall be subject to the limitations

described in subsection (i) for the period beginning on October 1, 1997, and ending on the first day on which all

of the members referred to in subparagraph (A) have been

appointed.’’.

(h) REQUIRED NUMBER OF VOTES.—Section 6007(e)(9) of the

Metropolitan Washington Airports Act of 1986 (49 U.S.C. App.

2456(e)(9)), as redesignated by subsection (d) of this section, is

amended by striking ‘‘Seven’’ and inserting ‘‘Eight’’.

SEC. 904. TERMINATION OF BOARD OF REVIEW.

(a) IN GENERAL.—Section 6007 of the Metropolitan Washington

Airports Act of 1986 (49 U.S.C. App. 2456) is amended by striking

subsections (f) and (h) and redesignating subsections (g) and (i)

as subsections (f) and (g), respectively.

(b) STAFF.—Section 6007 of the Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 2456) is amended—

(1) by inserting paragraph (8) of subsection (f), as in effect

before the amendment made by subsection (a) of this section,

after subsection (g), as redesignated by such subsection (a);

(2) by moving such paragraph 2 ems to the left and

redesignating such paragraph as subsection (h); and

(3) in subsection (h), as so redesignated—

(A) in the first sentence by striking ‘‘The Board of

Review’’ and inserting ‘‘To assist the Secretary in carrying

out this Act, the Secretary’’; and

(B) in the second sentence by striking ‘‘Board’’ and

inserting ‘‘Secretary’’.

(c) CONFORMING AMENDMENTS.—The Metropolitan Washington

Airports Act of 1986 (49 U.S.C. App. 2451 et seq.) is amended—

(1) in section 6009(b) by striking ‘‘or by reason’’ and all

that follows before the period; and

(2) in section 6011 by striking ‘‘Except as provided in

section 6007(h), if’’ and inserting ‘‘If’’.

(d) PROTECTION OF CERTAIN ACTIONS.—Actions taken by the

Metropolitan Washington Airports Authority and required to be

submitted to the Board of Review pursuant to section 6007(f)(4)

of the Metropolitan Washington Airports Act of 1986 before the

date of the enactment of this Act shall remain in effect and shall

not be set aside solely by reason of a judicial order invalidating

certain functions of the Board of Review.

SEC. 905. LIMITATIONS.

Section 6007 of the Metropolitan Washington Airports Act of

1986 (49 U.S.C. App. 2456) is further amended by adding at the

end the following:

‘‘(i) LIMITATIONS.—After October 1, 2001—

‘‘(1) the Secretary may not approve an application of the

Airports Authority for an airport development project grant

under subchapter I of chapter 471 of title 49, United States

Code; and

‘‘(2) the Secretary may not approve an application of the

Airports Authority to impose a passenger facility fee under

section 40117 of such title.’’.
H. R. 3539—65

SEC. 906. USE OF DULLES AIRPORT ACCESS HIGHWAY.

The Metropolitan Washington Airports Act of 1986 (49 U.S.C.

App. 2451 et seq.) is further amended by adding at the end the

following:

‘‘SEC. 6013. USE OF DULLES AIRPORT ACCESS HIGHWAY.

‘‘(a) RESTRICTIONS.—Except as provided by subsection (b), the

Airports Authority shall continue in effect and enforce paragraphs

(1) and (2) of section 4.2 of the Metropolitan Washington Airports

Regulations, as in effect on February 1, 1995.

‘‘(b) ENFORCEMENT.—The district courts of the United States

shall have jurisdiction to compel the Airports Authority and its

officers and employees to comply with the requirements of this

section. An action may be brought on behalf of the United States

by the Attorney General or by any aggrieved party.’’.

SEC. 907. EFFECT OF JUDICIAL ORDER.

The Metropolitan Washington Airports Act of 1986 (49 U.S.C.

App. 2451 et seq.) is further amended by adding at the end the

following:

‘‘SEC. 6014. EFFECT OF JUDICIAL ORDER.

‘‘If any provision of the Metropolitan Washington Airports

Amendments Act of 1996 or the amendments made by such Act

(or the application of that provision to any person, circumstance,

or venue) is held invalid by a judicial order, on the day after

the date of the issuance of such order, and thereafter, the Secretary

of Transportation and the Metropolitan Washington Airports

Authority shall be subject to the limitations described in section

6007(i) of this Act.’’.

SEC. 908. AMENDMENT OF LEASE.

The Secretary of Transportation shall amend the lease entered

into with the Metropolitan Washington Airports Authority under

section 6005(a) of the Metropolitan Washington Airports Authority

Act of 1986 to secure the Airports Authority’s consent to the amendments made to such Act by this title.

SEC. 909. SENSE OF THE SENATE.

It is the sense of the Senate that the Metropolitan Washington

Airports Authority—

(1) should not provide any reserved parking areas free

of charge to Members of Congress, other Government officials,

or diplomats at Washington National Airport or Washington

Dulles International Airport; and

(2) should establish a parking policy for such airports that

provides equal access to the public, and does not provide preferential parking privileges to Members of Congress, other

Government officials, or diplomats.
H. R. 3539—66

TITLE X—EXTENSION OF AIRPORT AND

AIRWAY TRUST FUND EXPENDITURES

SEC. 1001. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND

EXPENDITURES.

(a) EXTENSION OF EXPENDITURE AUTHORITY.—Paragraph (1)

of section 9502(d) of the Internal Revenue Code of 1986 is amended

by striking ‘‘October 1, 1996’’ and inserting ‘‘October 1, 1998’’.

(b) EXTENSION OF TRUST FUND PURPOSES.—Subparagraph (A)

of section 9502(d)(1) of such Code is amended by inserting before

the semicolon at the end ‘‘or the Federal Aviation Reauthorization

Act of 1996’’.

TITLE XI—FAA RESEARCH,

ENGINEERING, AND DEVELOPMENT

SEC. 1101. SHORT TITLE.

This title may be cited as the ‘‘FAA Research, Engineering,

and Development Management Reform Act of 1996’’.

SEC. 1102. AUTHORIZATION OF APPROPRIATIONS.

Section 48102(a) is amended—

(1) by striking ‘‘and’’ at the end of paragraph (1)(J);

(2) by striking the period at the end of paragraph (2)(J)

and inserting in lieu thereof ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(3) for fiscal year 1997— ‘‘(A) $13,660,000 for system development and infrastructure projects and activities; ‘‘(B) $34,889,000 for capacity and air traffic management technology projects and activities; ‘‘(C) $19,000,000 for communications, navigation, and

surveillance projects and activities; ‘‘(D) $13,000,000 for weather projects and activities;

‘‘(E) $5,200,000 for airport technology projects and

activities; ‘‘(F) $36,504,000 for aircraft safety technology projects

and activities; ‘‘(G) $57,055,000 for system security technology

projects and activities; ‘‘(H) $23,504,000 for human factors and aviation medicine projects and activities; ‘‘(I) $3,600,000 for environment and energy projects

and activities; and ‘‘(J) $2,000,000 for innovative/cooperative research

projects and activities.’’.

SEC. 1103. RESEARCH PRIORITIES.

Section 48102(b) is amended—

(1) by redesignating paragraph (2) as paragraph (3); and

(2) by striking ‘‘AVAILABILITY FOR RESEARCH.—(1)’’ and

inserting in lieu thereof ‘‘RESEARCH PRIORITIES.—(1) The

Administrator shall consider the advice and recommendations

of the research advisory committee established by section 44508

of this title in establishing priorities among major categories
H. R. 3539—67

of research and development activities carried out by the Federal Aviation Administration.

‘‘(2)’’.

SEC. 1104. RESEARCH ADVISORY COMMITTEE.

Section 44508(a)(1) is amended—

(1) by striking ‘‘and’’ at the end of subparagraph (B);

(2) by striking the period at the end of subparagraph (C)

and inserting in lieu thereof ‘‘; and’’; and

(3) by inserting after subparagraph (C) the following:

‘‘(D) annually review the allocation made by the Administrator of the amounts authorized by section 48102(a) of this

title among the major categories of research and development

activities carried out by the Administration and provide advice

and recommendations to the Administrator on whether such

allocation is appropriate to meet the needs and objectives identified under subparagraph (A).’’.

SEC. 1105. NATIONAL AVIATION RESEARCH PLAN.

Section 44501(c) is amended—

(1) in paragraph (2)(A) by striking ‘‘15-year’’ and inserting

in lieu thereof ‘‘5-year’’;

(2) by amending subparagraph (B) to read as follows:

‘‘(B) The plan shall—

‘‘(i) provide estimates by year of the schedule, cost, and

work force levels for each active and planned major research

and development project under sections 40119, 44504, 44505,

44507, 44509, 44511–44513, and 44912 of this title, including

activities carried out under cooperative agreements with other

Federal departments and agencies;

‘‘(ii) specify the goals and the priorities for allocation of

resources among the major categories of research and development activities, including the rationale for the priorities identified;

‘‘(iii) identify the allocation of resources among long-term

research, near-term research, and development activities; and

‘‘(iv) highlight the research and development activities that

address specific recommendations of the research advisory

committee established under section 44508 of this title, and

document the recommendations of the committee that are not

accepted, specifying the reasons for nonacceptance.’’; and

(3) in paragraph (3) by inserting ‘‘, including a description

of the dissemination to the private sector of research results

and a description of any new technologies developed’’ after

‘‘during the prior fiscal year’’.

TITLE XII—MISCELLANEOUS

PROVISIONS

SEC. 1201. PURCHASE OF HOUSING UNITS.

Section 40110 is amended—

(1) by redesignating subsection (b) as subsection (c); and

(2) by inserting after subsection (a) the following:

‘‘(b) PURCHASE OF HOUSING UNITS.—

‘‘(1) AUTHORITY.—In carrying out this part, the Administrator may purchase a housing unit (including a condominium
H. R. 3539—68

or a housing unit in a building owned by a cooperative) that

is located outside the contiguous United States if the cost

of the unit is $300,000 or less.

‘‘(2) ADJUSTMENTS FOR INFLATION.—For fiscal years beginning after September 30, 1997, the Administrator may adjust

the dollar amount specified in paragraph (1) to take into

account increases in local housing costs.

‘‘(3) CONTINUING OBLIGATIONS.—Notwithstanding section

1341 of title 31, the Administrator may purchase a housing

unit under paragraph (1) even if there is an obligation thereafter to pay necessary and reasonable fees duly assessed upon

such unit, including fees related to operation, maintenance,

taxes, and insurance.

‘‘(4) CERTIFICATION TO CONGRESS.—The Administrator may

purchase a housing unit under paragraph (1) only if, at least

30 days before completing the purchase, the Administrator

transmits to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on

Commerce, Science, and Transportation of the Senate a report

containing—

‘‘(A) a description of the housing unit and its price;

‘‘(B) a certification that the price does not exceed the

median price of housing units in the area; and

‘‘(C) a certification that purchasing the housing unit

is the most cost-beneficial means of providing necessary

accommodations in carrying out this part.

‘‘(5) PAYMENT OF FEES.—The Administrator may pay, when

due, fees resulting from the purchase of a housing unit under

this subsection from any amounts made available to the

Administrator.’’.

SEC. 1202. CLARIFICATION OF PASSENGER FACILITY REVENUES AS

CONSTITUTING TRUST FUNDS.

Section 40117(g) is amended by adding at the end the following:

‘‘(4) Passenger facility revenues that are held by an air carrier

or an agent of the carrier after collection of a passenger facility

fee constitute a trust fund that is held by the air carrier or agent

for the beneficial interest of the eligible agency imposing the fee.

Such carrier or agent holds neither legal nor equitable interest

in the passenger facility revenues except for any handling fee or

retention of interest collected on unremitted proceeds as may be

allowed by the Secretary.’’.

SEC. 1203. AUTHORITY TO CLOSE AIRPORT LOCATED NEAR CLOSED

OR REALIGNED MILITARY BASE.

Notwithstanding any other provision of a law, rule, or grant

assurance, an airport that is not a commercial service airport may

be closed by its sponsor without any obligation to repay grants

made under chapter 471 of title 49, United States Code, the Airport

and Airway Improvement Act of 1982, or any other law if the

airport is located within 2 miles of a United States Army depot

which has been closed or realigned; except that in the case of

disposal of the land associated with the airport, the part of the

proceeds from the disposal that is proportional to the Government’s

share of the cost of acquiring the land shall be paid to the Secretary

of Transportation for deposit in the Airport and Airway Trust

Fund established under section 9502 of the Internal Revenue Code

of 1986 (26 U.S.C. 9502).
H. R. 3539—69

SEC. 1204. GADSDEN AIR DEPOT, ALABAMA.

(a) AUTHORITY TO GRANT WAIVERS.—Notwithstanding section

16 of the Federal Airport Act (as in effect on May 4, 1949), the

Secretary is authorized, subject to the provisions of section 47153

of title 49, United States Code, and the provisions of subsection

(b) of this section, to waive any of the terms contained in the

deed of conveyance dated May 4, 1949, under which the United

States conveyed certain property to the city of Gadsden, Alabama,

for airport purposes.

(b) CONDITIONS.—Any waiver granted under subsection (a) shall

be subject to the following conditions:

(1) The city of Gadsden, Alabama, shall agree that, in

conveying any interest in the property which the United States

conveyed to the city by a deed described in subsection (a),

the city will receive an amount for such interest which is

equal to the fair market value of such interest (as determined

pursuant to regulations issued by the Secretary).

(2) Any such amount so received by the city shall be used

by the city for the development, improvement, operation, or

maintenance of a public airport, lands (including any improvements thereto) which produce revenues that are used for airport

development purposes, or both.

SEC. 1205. REGULATIONS AFFECTING INTRASTATE AVIATION IN

ALASKA.

In modifying regulations contained in title 14, Code of Federal

Regulations, in a manner affecting intrastate aviation in Alaska,

the Administrator of the Federal Aviation Administration shall

consider the extent to which Alaska is not served by transportation

modes other than aviation, and shall establish such regulatory

distinctions as the Administrator considers appropriate.

SEC. 1206. WESTCHESTER COUNTY AIRPORT, NEW YORK.

Notwithstanding sections 47107(b) and 47133 of title 49, United

States Code, and any other law, regulation, or grant assurance,

all fees received by Westchester County Airport in the State of

New York may be paid into the treasury of Westchester County

pursuant to section 119.31 of the Westchester County Charter if

the Secretary finds that the expenditures from such treasury for

the capital and operating costs of the Airport after December 31,

1990, have been and will be equal to or greater than the fees

that such treasury receives from the Airport.

SEC. 1207. BEDFORD AIRPORT, PENNSYLVANIA.

If the Administrator of the Federal Aviation Administration

decommissions an instrument landing system in Pennsylvania, the

Administrator may transfer and install the system at Bedford Airport, Pennsylvania.

SEC. 1208. WORCESTER MUNICIPAL AIRPORT, MASSACHUSETTS.

The Administrator of the Federal Aviation Administration shall

take such actions as may be necessary to improve the safety of

aircraft landing at Worcester Municipal Airport, Massachusetts,

including, if appropriate, providing air traffic radar service to such

airport from the Providence Approach Radar Control in Coventry,

Rhode Island.
H. R. 3539—70

SEC. 1209. CENTRAL FLORIDA AIRPORT, SANFORD, FLORIDA.

The Administrator of the Federal Aviation Administration shall

take such actions as may be necessary to improve the safety of

aircraft landing at Central Florida Airport, Sanford, Florida, including, if appropriate, providing a new instrument landing system

on Runway 27R.

SEC. 1210. AIRCRAFT NOISE OMBUDSMAN.

Section 106, as amended by section 230 of this Act, is further

amended by adding at the end the following:

‘‘(q) AIRCRAFT NOISE OMBUDSMAN.—

‘‘(1) ESTABLISHMENT.—There shall be in the Administration

an Aircraft Noise Ombudsman.

‘‘(2) GENERAL DUTIES AND RESPONSIBILITIES.—The Ombudsman shall—

‘‘(A) be appointed by the Administrator;

‘‘(B) serve as a liaison with the public on issues regarding aircraft noise; and

‘‘(C) be consulted when the Administration proposes

changes in aircraft routes so as to minimize any increases

in aircraft noise over populated areas.

‘‘(3) NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES.—The

appointment of an Ombudsman under this subsection shall

not result in an increase in the number of full-time equivalent

employees in the Administration.’’.

SEC. 1211. SPECIAL RULE FOR PRIVATELY OWNED RELIEVER

AIRPORTS.

Section 47109 is amended by adding at the end the following:

‘‘(c) SPECIAL RULE FOR PRIVATELY OWNED RELIEVER AIRPORTS.—If a privately owned reliever airport contributes any lands,

easements, or rights-of-way to carry out a project under this subchapter, the current fair market value of such lands, easements,

or rights-of-way shall be credited toward the non-Federal share

of allowable project costs.’’.

SEC. 1212. SENSE OF THE SENATE REGARDING THE FUNDING OF THE

FEDERAL AVIATION ADMINISTRATION.

(a) FINDINGS.—The Senate finds that—

(1) Congress is responsible for ensuring that the financial

needs of the Federal Aviation Administration, the agency that

performs the critical function of overseeing the Nation’s air

traffic control system and ensuring the safety of air travelers

in the United States, are met;

(2) aviation excise taxes that constitute the Airport and

Airway Trust Fund, which provides most of the funding for

the Federal Aviation Administration, have expired;

(3) the surplus in the Airport and Airway Trust Fund

will be spent by the Federal Aviation Administration by December 1996;

(4) the existing system of funding the Federal Aviation

Administration will not provide the agency with sufficient shortterm or long-term funding;

(5) this Act creates a sound process to review Federal

Aviation Administration funding and develop a funding system

to meet the Federal Aviation Administration’s long-term funding needs; and
H. R. 3539—71

(6) without immediate action by Congress to ensure that

the Federal Aviation Administration’s financial needs are met,

air travelers’ confidence in the system could be undermined.

(b) SENSE OF THE SENATE.—It is the sense of the Senate that

there should be an immediate enactment of an 18-month reinstatement of the aviation excise taxes to provide short-term funding

for the Federal Aviation Administration.

SEC. 1213. RURAL AIR FARE STUDY.

(a) IN GENERAL.—The Secretary shall conduct a study to—

(1) compare air fares paid (calculated as both actual and

adjusted air fares) for air transportation on flights conducted

by commercial air carriers—

(A) between—

(i) nonhub airports located in small communities;

and

(ii) large hub airports; and

(B) between large hub airports;

(2) analyze—

(A) the extent to which passenger service that is provided from nonhub airports is provided on—

(i) regional commuter commercial air carriers; or

(ii) major air carriers;

(B) the type of aircraft employed in providing passenger

service at nonhub airports; and

(C) whether there is competition among commercial

air carriers with respect to the provision of air service

to passengers from nonhub airports.

(b) FINDINGS.—The Secretary shall include in the report of

the study conducted under subsection (a) findings concerning—

(1) whether passengers who use commercial air carriers

to and from rural areas (as defined by the Secretary) pay

a disproportionately greater price for that transportation than

passengers who use commercial air carriers between urban

areas (as defined by the Secretary);

(2) the nature of competition, if any, in rural markets

(as defined by the Secretary) for commercial air carriers;

(3) whether a relationship exists between higher air fares

and competition among commercial air carriers for passengers

traveling on jet aircraft from small communities (as defined

by the Secretary) and, if such a relation exists, the nature

of that relationship;

(4) the number of small communities that have lost air

service as a result of the deregulation of commercial air carriers

with respect to air fares;

(5) the number of small communities served by airports

with respect to which, after commercial air carrier fares were

deregulated, jet aircraft service was replaced by turboprop aircraft service; and

(6) where such replacement occurred, any corresponding

decreases in available seat capacity for consumers at the airports referred to in that subparagraph.

(c) REPORT.—Not later than 60 days after the date of the

enactment of this Act, the Secretary shall submit a final report

on the study carried out under subsection (a) to the Committee

on Commerce, Science, and Transportation of the Senate and the
H. R. 3539—72

Committee on Transportation and Infrastructure of the House of

Representatives.

(d) DEFINITIONS.—For purposes of this section, the following

definitions apply:

(1) ADJUSTED AIR FARE.—The term ‘‘adjusted air fare’’

means an actual air fare that is adjusted for distance traveled

by a passenger.

(2) AIR CARRIER.—The term ‘‘air carrier’’ is defined in section 40102(a)(2) of title 49, United States Code.

(3) AIRPORT.—The term ‘‘airport’’ is defined in section

40102(9) of such title.

(4) COMMERCIAL AIR CARRIER.—The term ‘‘commercial air

carrier’’ means an air carrier that provides air transportation

for commercial purposes (as determined by the Secretary).

(5) HUB AIRPORT.—The term ‘‘hub airport’’ is defined in

section 41731(a)(2) of such title.

(6) LARGE HUB AIRPORT.—The term ‘‘large hub airport’’

shall be defined by the Secretary but the definition may not

include a small hub airport, as that term is defined in section

41731(a)(5) of such title.

(7) MAJOR AIR CARRIER.—The term ‘‘major air carrier’’ shall

be defined by the Secretary.

(8) NONHUB AIRPORT.—The term ‘‘nonhub airport’’ is

defined in section 41731(a)(4) of such title.

(9) REGIONAL COMMUTER AIR CARRIER.—The term ‘‘regional

commuter air carrier’’ shall be defined by the Secretary.

SEC. 1214. CARRIAGE OF CANDIDATES IN STATE AND LOCAL

ELECTIONS.

The Administrator of the Federal Aviation Administration shall

revise section 91.321 of the Administration’s regulations (14 C.F.R.

91.321), relating to the carriage of candidates in Federal elections,

to make the same or similar rules applicable to the carriage of

candidates for election to public office in State and local government

elections.

SEC. 1215. SPECIAL FLIGHT RULES IN THE VICINITY OF GRAND

CANYON NATIONAL PARK.

The Secretary of Transportation, acting through the Administrator of the Federal Aviation Administration, shall take such action

as may be necessary to provide 45 additional days for comment

by interested persons on the special flight rules in the vicinity

of Grand Canyon National Park and the Draft Environmental

Assessment described in the notice of proposed rulemaking issued

on July 31, 1996, at 61 Fed. Reg. 40120 et seq.

SEC. 1216. TRANSFER OF AIR TRAFFIC CONTROL TOWER; CLOSING

OF FLIGHT SERVICE STATIONS.

(a) HICKORY, NORTH CAROLINA TOWER.— (1) TRANSFER.—The Administrator of the Federal Aviation

Administration may transfer any title, right, or interest the

United States has in the air traffic control tower located at

the Hickory Regional Airport to the City of Hickory, North

Carolina, for the purpose of enabling the city to provide air

traffic control services to operators of aircraft.

(2) STUDY.—The Administrator shall conduct a study to

determine whether the number of operations at Hickory

Regional Airport meet the criteria for contract towers and shall
H. R. 3539—73

certify in writing to the Committee on Commerce, Science,

and Transportation of the Senate and the Committee on Commerce and Infrastructure of the House of Representatives

whether that airport meets those criteria.

(b) NEW BERN-CRAVEN COUNTY STATION.—The Administrator

shall not close the New Bern-Craven County flight services station

or the Hickory Regional Airport flight service station unless the

Administrator certifies in writing to the Committee on Commerce,

Science, and Transportation of the Senate and the Committee on

Transportation and Infrastructure of the House of Representatives

that such closure will not result in a degradation of air safety

and that it will reduce costs to taxpayers.

(c) PIERRE, SOUTH DAKOTA STATION.—The Administrator shall

not close the Pierre, South Dakota Regional Airport flight service

station unless following the 180th day after the date of the enactment of this Act the Administrator certifies in writing to the

Committee on Commerce, Science, and Transportation of the Senate

and the Committee on Transportation and Infrastructure of the

House of Representatives that such closure will not result in a

degradation of air safety, air service, or the loss of meteorological

services or data that cannot otherwise be obtained in a more costeffective manner, and that it will reduce costs to taxpayers.

SEC. 1217. LOCATION OF DOPPLER RADAR STATIONS, NEW YORK.

(a) STUDY.—The Administrator of the Federal Aviation

Administration shall conduct a study of the feasibility of constructing 2 offshore platforms to serve as sites for the location of Doppler

radar stations for John F. Kennedy International Airport and

LaGuardia Airport in New York City, New York.

(b) REPORT.—Not later than 90 days after the date of the

enactment of this Act, the Administrator shall transmit to Congress

a report on the results of the study conducted under subsection

(a), including proposed locations for the offshore platforms. Such

locations shall be as far as possible from populated areas while

providing appropriate safety measures for John F. Kennedy International Airport and LaGuardia Airport.

SEC. 1218. TRAIN WHISTLE REQUIREMENTS.

(a) IN GENERAL.—Section 20153 is amended by adding at the

end the following:

‘‘(i) REGULATIONS.—In issuing regulations under this section,

the Secretary—

‘‘(1) shall take into account the interest of communities

that—

‘‘(A) have in effect restrictions on the sounding of a

locomotive horn at highway-rail grade crossings; or

‘‘(B) have not been subject to the routine (as defined

by the Secretary) sounding of a locomotive horn at highwayrail grade crossings;

‘‘(2) shall work in partnership with affected communities

to provide technical assistance and shall provide a reasonable

amount of time for local communities to install supplementary

safety measures, taking into account local safety initiatives

(such as public awareness initiatives and highway-rail grade

crossing traffic law enforcement programs) subject to such

terms and conditions as the Secretary deems necessary, to

protect public safety; and
H. R. 3539—74

‘‘(3) may waive (in whole or in part) any requirement

of this section (other than a requirement of this subsection

or subsection (j)) that the Secretary determines is not likely

to contribute significantly to public safety.

‘‘(j) EFFECTIVE DATE OF REGULATIONS.—Any regulations under

this section shall not take effect before the 365th day following

the date of publication of the final rule.’’.

SEC. 1219. INCREASED FEES.

(a) IN GENERAL.—Notwithstanding any other provision of law,

the Surface Transportation Board shall not increase fees for services

to be collected from small shippers in connection with rail maximum

rate complaints pursuant to part 1002 of title 49, Code of Federal

Regulations, Ex Parte No. 542.

(b) APPLICABILITY.—Subsection (a) shall no longer be effective

after September 30, 1998.

SEC. 1220. STRUCTURES INTERFERING WITH AIR COMMERCE.

(a) LANDFILLS.—Section 44718 is amended by adding at the

end the following:

‘‘(d) LANDFILLS.—For the purposes of enhancing aviation safety,

in a case in which 2 landfills have been proposed to be constructed

or established within 6 miles of a commercial service airport with

fewer than 50,000 enplanements per year, no person shall construct

or establish either landfill if an official of the Federal Aviation

Administration has stated in writing within the 3-year period ending on the date of the enactment of this subsection that 1 of

the landfills would be incompatible with aircraft operations at the

airport, unless the landfill is already active on such date of

enactment or the airport operator agrees to the construction or

establishment of the landfill.’’.

(b) CIVIL PENALTIES.—Section 46301 is amended by inserting

‘‘44718(d),’’ after ‘‘44716,’’ in each of subsections (a)(1)(A), (d)(2),

and (f)(1)(A)(i).

SEC. 1221. HAWAII CARGO.

Notwithstanding any other provision of law, and for a period

that shall not extend beyond September 30, 1998, an air carrier

which commenced all-cargo turnaround service during November

1995 with Stage 2 aircraft with a maximum weight of more than

75,000 pounds may operate no more than one Stage 2 aircraft

in all-cargo turnaround service and may also maintain a second

such aircraft in reserve. The reserve aircraft may only be used

as a replacement aircraft when the first aircraft is not airworthy

or is unavailable due to closure of an airport at which the first

aircraft is located in the State of Hawaii.

SEC. 1222. LIMITATION ON AUTHORITY OF STATES TO REGULATE

GAMBLING DEVICES ON VESSELS.

Subsection (b)(2) of section 5 of the Act of January 2, 1951

(commonly referred to as the ‘‘Johnson Act’’) (64 Stat. 1135, chapter

1194; 15 U.S.C. 1175), is amended by adding at the end the

following:

‘‘(C) EXCLUSION OF CERTAIN VOYAGES AND SEGMENTS.—

Except for a voyage or segment of a voyage that occurs

within the boundaries of the State of Hawaii, a voyage

or segment of a voyage is not described in subparagraph
H. R. 3539—75

(B) if such voyage or segment includes or consists of a

segment—

‘‘(i) that begins and ends in the same State;

‘‘(ii) that is part of a voyage to another State

or to a foreign country; and

‘‘(iii) in which the vessel reaches the other State

or foreign country within 3 days after leaving the State

in which such segment begins.’’.

SEC. 1223. CLARIFYING AMENDMENT.

Section 1 of the Railway Labor Act (45 U.S.C. 151) is amended

by inserting ‘‘, any express company that would have been subject

to subtitle IV of title 49, United States Code, as of December

31, 1995,’’ after ‘‘Board’’ the first place it appears in the first

paragraph.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.