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In the Senate of the United States,

September 18, 1996.

Resolved, That the bill from the House of Representatives (H.R. 3539) entitled ‘‘An Act to amend title 49, United

States Code, to reauthorize programs of the Federal Aviation

Administration, and for other purposes’’, do pass with the

following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Federal Aviation Reauthorization Act of 1996’’.

4 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

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

TITLE I—REAUTHORIZATION OF FAA PROGRAMS

Sec. 101. Federal Aviation Administration operations.

Sec. 102. Air navigation facilities.

Sec. 103. Research and development.

Sec. 104. Airport improvement program.

Sec. 105. Interaccount flexibility.

TITLE II—AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

Sec. 201. Pavement maintenance program.
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Sec. 202. Maximum percentages of amount made available for grants to certain

primary airports.

Sec. 203. Discretionary fund.

Sec. 204. Designating current and former military airports.

Sec. 205. State block grant program.

Sec. 206. Access to airports by intercity buses.

TITLE III—AVIATION SAFETY AND SECURITY

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

Sec. 302. Family advocacy.

Sec. 303. Accident and safety data classification; report on effects of publication

and automated surveillance targeting systems.

Sec. 304. Weapons and explosive detection study.

Sec. 305. Requirement for criminal history records checks.

Sec. 306. Interim deployment of commercially available explosive detection equipment.

Sec. 307. Audit of performance of background checks for certain personnel.

Sec. 308. Sense of the Senate on passenger profiling.

Sec. 309. Authority to use certain funds for airport security programs and activities.

Sec. 310. Development of aviation security liaison agreement.

Sec. 311. Regular joint threat assessments.

Sec. 312. Baggage match report.

Sec. 313. Enhanced security programs.

Sec. 314. Report on air cargo.

TITLE IV—MISCELLANEOUS PROVISIONS

Sec. 401. Acquisition of housing units.

Sec. 402. Protection of voluntarily submitted information.

Sec. 403. Application of FAA regulations.

Sec. 404. Sense of the Senate regarding the funding of the Federal Aviation Administration.

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

Sec. 406. Sense of the Senate regarding the air ambulance exemption from certain Federal excise taxes.

Sec. 407. FAA safety mission.

Sec. 408. Carriage of candidates in State and local elections.

Sec. 409. Train whistle requirements.

Sec. 410. Limitation on authority of States to regulate gambling devices on vessels.

Sec. 411. Special flight rules in the vicinity of Grand Canyon National Park.

Sec. 412. Increased fees.

Sec. 413. Transfer of air traffic control tower; closing of flight service stations.

Sec. 414. Sense of the Senate regarding acts of international terrorism.

Sec. 415. Reporting for procurement contracts.

Sec. 416. Provisions relating to limited scope audit.

Sec. 417. Advance electronic transmission of cargo and passenger information.

TITLE V—COMMERCIAL SPACE LAUNCH ACT AMENDMENTS

Sec. 501. Commercial space launch amendments.
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TITLE VI—AIR TRAFFIC MANAGEMENT SYSTEM PERFORMANCE

IMPROVEMENT ACT

Sec. 601. Short title.

Sec. 602. Definitions.

Sec. 603. Effective date.

Subtitle A—General Provisions

Sec. 621. Findings.

Sec. 622. Purposes.

Sec. 623. Regulation of civilian air transportation and related services by the

Federal Aviation Administration and Department of Transportation.

Sec. 624. Regulations.

Sec. 625. Personnel and services.

Sec. 626. Contracts.

Sec. 627. Facilities.

Sec. 628. Property.

Sec. 629. Transfers of funds from other Federal agencies.

Sec. 630. Management Advisory Council.

Sec. 631. Aircraft engine standards.

Sec. 632. Rural air fare study.

Subtitle B—Federal Aviation Administration Streamlining Programs

Sec. 651. Review of acquisition management system.

Sec. 652. Air traffic control modernization reviews.

Sec. 653. Federal Aviation Administration personnel management system.

Sec. 654. Conforming amendment.

Subtitle C—System To Fund Certain Federal Aviation Administration

Functions

Sec. 671. Findings.

Sec. 672. Purposes.

Sec. 673. User fees for various Federal Aviation Administration services.

Sec. 674. Independent assessment and task force to review existing and innovative

funding mechanisms.

Sec. 675. Procedure for consideration of certain funding proposals.

Sec. 676. Administrative provisions.

Sec. 677. Advance appropriations for Airport and Airway Trust Fund activities.

Sec. 678. Rural Air Service Survival Act.

TITLE VII—PILOT RECORDS

Sec. 701. Short title.

Sec. 702. Employment investigations of pilot applicants.

Sec. 703. Study of minimum standards for pilot qualifications.

TITLE VIII—ABOLITION OF BOARD OF REVIEW

Sec. 801. Abolition of Board of Review and related authority.

Sec. 802. Sense of the Senate.

Sec. 803. Conforming amendments in other law.

Sec. 804. Definitions.

Sec. 805. Increase in number of Presidentially appointed members of Board.

Sec. 806. Reconstituted Board to function without interruption.
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Sec. 807. Operational slots at National Airport.

Sec. 808. Airports authority support of Board.

TITLE IX—AIRPORT REVENUE PROTECTION

Sec. 901. Short title.

Sec. 902. Findings; purpose.

Sec. 903. Definitions.

Sec. 904. Restriction on use of airport revenues.

Sec. 905. Regulations; audits and accountability.

Sec. 906. Conforming amendments to the Internal Revenue Code of 1986.

TITLE X—EXTENSION OF AIRPORT AND AIRWAY TRUST FUND

EXPENDITURE AUTHORITY

Sec. 1001. Expenditures from airport and airway trust fund.

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

2 Except as otherwise specifically provided, whenever in

3 this Act an amendment or repeal is expressed in terms of

4 an amendment to, or repeal of, a section or other provision

5 of law, the reference shall be considered to be made to a

6 section or other provision of title 49, United States Code.

7 TITLE I—REAUTHORIZATION OF

8 FAA PROGRAMS

9 SEC. 101. FEDERAL AVIATION ADMINISTRATION OPER10 ATIONS.

11 (a) AUTHORIZATION OF APPROPRIATIONS FROM GEN12 ERAL FUND.—Section 106(k) is amended—

13 (1) by striking ‘‘and’’ after ‘‘1995,’’; and

14 (2) by inserting before the period at the end the

15 following: ‘‘, and $5,000,000,000 for fiscal year

16 1997.’’.

17 (b) AUTHORIZATION OF APPROPRIATIONS FROM

18 TRUST FUND.—Section 48104(b) is amended—
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1 (1) in the subsection heading by striking ‘‘FOR

2 FISCAL YEARS 1993’’; and

3 (2) by striking the phrase ‘‘for fiscal year 1993’’.

4 (c) CLERICAL AMENDMENT.—Section 48108 is amend5 ed by striking subsection (c).

6 SEC. 102. AIR NAVIGATION FACILITIES.

7 Section 48101(a) is amended by adding at the end the

8 following:

9 ‘‘(5) For the fiscal years ending September 30,

10 1991–1997, $17,929,000,000.’’.

11 SEC. 103. RESEARCH AND DEVELOPMENT.

12 Section 48102(a) is amended by striking ‘‘title:’’ and

13 all that follows through the end of the subsection, and insert14 ing the following: ‘‘title, $206,000,000 for fiscal year 1997.’’.

15 SEC. 104. AIRPORT IMPROVEMENT PROGRAM.

16 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

17 48103 is amended—

18 (1) by striking ‘‘and $21,958,500,000’’ and in19 serting ‘‘$19,200,500,000’’; and

20 (2) by inserting before the period at the end the

21 following: ‘‘, $21,480,500,000 for fiscal years ending

22 before October 1, 1997.

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

24 amended by striking ‘‘1996’’ and inserting ‘‘1997’’.
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1 SEC. 105. INTERACCOUNT FLEXIBILITY.

2 Section 106 is amended by adding at the end the fol3 lowing new subsection:

4 ‘‘(l) INTERACCOUNT FLEXIBILITY.—

5 ‘‘(1) Except as provided in paragraph (2), the

6 Administrator may transfer budget authority derived

7 from trust funds among appropriations authorized by

8 subsection (k) and sections 48101 and 48102, if the

9 aggregate estimated outlays in such accounts in the

10 fiscal year in which the transfers are made will not

11 be increased as a result of such transfer.

12 ‘‘(2) The transfer of budget authority under

13 paragraph (1) may be made only to the extent that

14 outlays do not exceed the aggregate estimated outlays.

15 ‘‘(3) A transfer of budget authority under para16 graph (1) may not result in a net decrease of more

17 than 5 percent, or a net increase of more than 10 per18 cent, in the budget authority available under any ap19 propriation involved in that transfer.

20 ‘‘(4) Any action taken pursuant to this section

21 shall be treated as a reprogramming of funds that is

22 subject to review by the appropriate committees of the

23 Congress.

24 ‘‘(5) The Administrator may transfer budget au25 thority pursuant to this section only after—
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1 ‘‘(A) submitting a written explanation of

2 the proposed transfer to the Committees on

3 Transportation and Infrastructure and Appro4 priations of the House of Representatives and the

5 Committees on Commerce, Science, and Trans6 portation and Appropriations of the Senate; and

7 ‘‘(B) 30 days have passed after the expla8 nation is submitted and none of the committees

9 notifies the Administrator in writing that it ob10 jects to the proposed transfer within the 30 day

11 period.’’.

12 TITLE II—AIRPORT IMPROVE13 MENT PROGRAM MODIFICA14 TIONS

15 SEC. 201. PAVEMENT MAINTENANCE PROGRAM.

16 (a) PAVEMENT MAINTENANCE.—Chapter 471 is

17 amended by adding the following section at the end of sub18 chapter I:

19 ‘‘§ 47132. Pavement maintenance

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

21 Aviation Administration shall issue guidelines to carry out

22 a pavement maintenance pilot project to preserve and ex23 tend the useful life of runways, taxiways, and aprons at

24 airports for which apportionments are made under section

25 47114(d). The regulations shall provide that the Adminis-
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1 trator may designate not more than 10 projects. The regula2 tions shall provide criteria for the Administrator to use in

3 choosing the projects. At least 2 such projects must be in

4 States without a primary airport that had 0.25 percent or

5 more of the total boardings in the United States in the pre6 ceding calendar year. In designating a project, the Admin7 istrator shall take into consideration geographical, climato8 logical, and soil diversity.

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

10 beginning on the date of enactment of the Federal Aviation

11 Reauthorization Act of 1996 and ending on September 30,

12 1999.’’.

13 (b) COMPLIANCE WITH FEDERAL MANDATES.—

14 (1) USE OF AIP GRANTS.—Section 47102(3) is

15 amended—

16 (A) in subparagraph (E) by inserting ‘‘or

17 under section 40117’’ before the period at the

18 end; and

19 (B) in subparagraph (F) by striking ‘‘paid

20 for by a grant under this subchapter and’’.

21 (2) USE OF PASSENGER FACILITY CHARGES.—

22 Section 40117(a)(3) is amended—

23 (A) by inserting ‘‘and’’ at the end of sub24 paragraph (D);
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1 (B) by striking ‘‘; and’’ at the end of sub2 paragraph (E) and inserting a period; and

3 (C) by striking subparagraph (F).

4 (c) CONFORMING AMENDMENT.—The chapter analysis

5 for subchapter I of chapter 471 is amended by inserting

6 after the item relating to section 47131 the following new

7 item:

‘‘47132. Pavement maintenance.’’.

8 SEC. 202. MAXIMUM PERCENTAGES OF AMOUNT MADE

9 AVAILABLE FOR GRANTS TO CERTAIN PRI10 MARY AIRPORTS.

11 Section 47114 is amended by adding at the end thereof

12 the following:

13 ‘‘(g) SLIDING SCALE.—

14 ‘‘(1) Notwithstanding any other provision of this

15 title, of the amount newly made available under sec16 tion 48103 of this title for fiscal year 1997 to make

17 grants, not more than the percentage of such amount

18 newly made available that is specified in paragraph

19 (2) shall be distributed in total in such fiscal year for

20 grants described in paragraph (3).

21 ‘‘(2) If the amount newly made available is—

22 ‘‘(A) not more than $1,150,000,000, then the

23 percentage is 47.0;
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1 ‘‘(B) more than $1,150,000,000 but not

2 more than $1,250,000,000, then the percentage is

3 46.0;

4 ‘‘(C) more than $1,250,000,000 but not

5 more than $1,350,000,000, then the percentage is

6 45.4;

7 ‘‘(D) more than $1,350,000,000 but not

8 more than $1,450,000,000, then the percentage is

9 44.8; or

10 ‘‘(E) more than $1,450,000,000 but not

11 more than $1,550,000,000, then the percentage is

12 44.3.

13 ‘‘(3) This subsection applies to the aggregate

14 amount of grants in a fiscal year for projects at those

15 primary airports that each have not less than 0.25

16 per centum of the total passenger boardings in the

17 United States in the preceding calendar year.’’.

18 SEC. 203. DISCRETIONARY FUND.

19 Section 47115 is amended—

20 (1) by striking ‘‘and’’ at the end of subsection

21 (d)(2) and inserting a comma and the following: ‘‘,

22 including, in the case of a project at a reliever air23 port, the number of operations projected to be diverted

24 from a primary airport to that reliever airport as a

25 result of the project, as well as the cost savings pro-
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1 jected to be realized by users of the local airport sys2 tem;’’;

3 (2) by redesignating paragraph (3) of subsection

4 (d) as paragraph (5), and by inserting after para5 graph (2) of that subsection the following:

6 ‘‘(3) the airport improvement priorities of the

7 States, and regional offices of the Administration, to

8 the extent such priorities are not in conflict with

9 paragraphs (1) and (2) of this subsection;

10 ‘‘(4) any increase in the number of passenger

11 boardings in the preceding 12-month period at the

12 airport at which the project will be carried out, with

13 priority consideration to be given to projects at air14 ports at which, during that period, the number of

15 passenger boardings was 20 percent or greater than

16 the number of such boardings during the 12-month

17 period preceding that period; and’’;

18 (3) by redesignating the second subsection (f) as

19 subsection (g); and

20 (4) by adding at the end the following:

21 ‘‘(h) PRIORITY FOR LETTERS OF INTENT.—In making

22 grants in a fiscal year with funds made available under

23 this section, the Secretary shall fulfill intentions to obligate

24 under section 47110(e).’’.
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1 SEC. 204. DESIGNATING CURRENT AND FORMER MILITARY

2 AIRPORTS.

3 (a) GENERAL REQUIREMENTS.—Section 47118(a) is

4 amended to read as follows:

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

6 Transportation shall designate current or former military

7 airports for which grants may be made under section

8 47117(e)(1)(E) of this title. The maximum number of air9 ports bearing such designation at any time is 12. The Sec10 retary may only so designate an airport (other than an air11 port so designated before August 24, 1994) if—

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

13 closed or realigned under—

14 ‘‘(A) section 2687 of title 10;

15 ‘‘(B) section 201 of the Defense Authoriza16 tion Amendments and Base Closure and Re17 alignment Act (10 U.S.C. 2687 note); or

18 ‘‘(C) section 2905 of the Defense Base Clo19 sure and Realignment Act of 1990 (10 U.S.C.

20 2687 note); or

21 ‘‘(2) the Secretary finds that such grants

22 would—

23 ‘‘(A) reduce delays at an airport with more

24 than 20,000 hours of annual delays in commer25 cial passenger aircraft takeoffs and landings; or
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1 ‘‘(B) enhance airport and air traffic control

2 system capacity in a metropolitan area or re3 duce current and projected flight delays.’’.

4 (b) ADDITIONAL DESIGNATION PERIODS.—Section

5 47118(d) is amended by striking ‘‘designation.’’ and insert6 ing ‘‘designation, and for subsequent 5-fiscal-year periods

7 if the Secretary determines that the airport satisfies the des8 ignation criteria under subsection (a) at the beginning of

9 each such subsequent 5-fiscal-year period.’’.

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

11 Subsection (f) of section 47118 is amended by striking ‘‘the

12 fiscal years ending September 30, 1993–1996,’’ and insert13 ing ‘‘for fiscal years beginning after September 30, 1992,’’.

14 (d) ONE-YEAR EXTENSION.—Section 47117(e)(1)(E)

15 is amended by striking ‘‘and 1996,’’ and inserting ‘‘1996,

16 and 1997,’’.

17 SEC. 205. STATE BLOCK GRANT PROGRAM.

18 (a) PARTICIPATING STATES.—Section 47128(b) is

19 amended—

20 (1) by striking paragraph (2);

21 (2) by redesignating subparagraphs (A) through

22 (E) of paragraph (1) as paragraphs (1) through (5),

23 respectively; and

24 (3) by striking ‘‘(1) A State’’ and inserting ‘‘A

25 State’’.
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1 (b) USE OF STATE PRIORITY SYSTEM.—Section

2 47128(c) is amended by adding at the end the following:

3 ‘‘In carrying out this subsection, the Secretary shall permit

4 a State to use the priority system of the State if such system

5 is not inconsistent with the national priority system.’’.

6 (c) CHANGE OF EXPIRATION DATE.—Section 47128(d)

7 is amended by striking ‘‘1996’’ and inserting ‘‘1997’’.

8 SEC. 206. ACCESS TO AIRPORTS BY INTERCITY BUSES.

9 Section 47107 (a) is amended—

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

11 (18);

12 (2) by striking the period at the end of para13 graph (19) and inserting ‘‘; and’’; and

14 (3) by adding at the end the following:

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

16 to the maximum extent practicable, intercity buses or

17 other modes of transportation to have access to the

18 airport, but the sponsor does not have any obligation

19 under this paragraph, or because of it, to fund special

20 facilities for intercity bus service or for other modes

21 of transportation.’’.
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1 TITLE III—AVIATION SAFETY

2 AND SECURITY

3 SEC. 301. REPORT INCLUDING PROPOSED LEGISLATION ON

4 FUNDING FOR AIRPORT SECURITY.

5 (a) IN GENERAL.—Not later than 30 days after the

6 date of enactment of this Act, the Administrator shall con7 duct a study and submit to the Congress a report on wheth8 er, and if so, how to transfer certain responsibilities of air

9 carriers under Federal law for security activities conducted

10 onsite at airports to airport operators who are subject to

11 section 44903 of title 49, United States Code, or to the Fed12 eral Government or providing for shared responsibilities be13 tween air carriers and airport operators or the Federal

14 Government.

15 (b) CONTENTS OF REPORT.—The report submitted

16 under this section shall—

17 (1) examine potential sources of Federal and

18 non-Federal revenue that may be used to fund secu19 rity activities including but not limited to providing

20 grants from funds received as fees collected under a

21 fee system established under subpart C of this title

22 and the amendments made by that subpart; and

23 (2) provide legislative proposals, if necessary, for

24 accomplishing the transfer of responsibilities referred

25 to in subsection (a).
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1 (c) CERTIFICATION OF SCREENING COMPANIES.—The

2 Federal Aviation Administrator is directed to certify com3 panies providing security screening and to improve the

4 training and testing of security screeners through develop5 ment of uniform performance standards for providing secu6 rity screening services.

7 SEC. 302. FAMILY ADVOCACY.

8 (a) IN GENERAL.—Subchapter III of chapter 11 of

9 title 49, United States Code, is amended by adding at the

10 end the following new section:

11 ‘‘§ 1136. Family advocacy

12 ‘‘(a) IN GENERAL.—The National Transportation

13 Safety Board shall establish a program consistent with its

14 existing authority to provide family advocacy services for

15 aircraft accidents described in subsection (b)(1) and serve

16 as the lead agency in coordinating the provision of the serv17 ices described in subsection (b). The National Transpor18 tation Safety Board shall, as necessary, in carrying out the

19 program, cooperate with the Secretary of Transportation,

20 the Administrator of the Federal Aviation Administration,

21 and such other public and private organizations as may

22 be appropriate.

23 ‘‘(b) FAMILY ADVOCACY SERVICES.—

24 ‘‘(1) IN GENERAL.—The National Transpor25 tation Safety Board shall work with an air carrier
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1 involved in an accident in air commerce and facili2 tate the procurement by that air carrier of the serv3 ices of family advocates who are not otherwise em4 ployed by an air carrier and who are not employed

5 by the Federal Aviation Administration to, in the

6 event of an accident in air commerce—

7 ‘‘(A) apply standards of conduct specified

8 by the National Transportation Safety Board;

9 ‘‘(B) to the extent practicable, direct and fa10 cilitate all communication among air carriers,

11 surviving passengers, families of passengers,

12 news reporters, the Federal Government, and the

13 governments of States and political subdivisions

14 thereof;

15 ‘‘(C) coordinate with a representative of the

16 air carrier to jointly direct the notification of the

17 next of kin of victims of the accident; and

18 ‘‘(D) carry out such other related duties as

19 the National Transportation Safety Board deter20 mines to be appropriate.

21 ‘‘(2) DEFINITIONS.—For purposes of this sub22 section, the following definitions shall apply:

23 ‘‘(A) AIR CARRIER.—The term ‘air carrier’

24 has the meaning provided that term in section

25 40102(a)(2).
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1 ‘‘(B) FAMILY ADVOCATE.—The term ‘family

2 advocate’ shall have the meaning provided that

3 term by the National Transportation Safety

4 Board by regulation.’’.

5 (b) GUIDELINES.—Not later than 90 days after the

6 date of enactment of this Act, the National Transportation

7 Safety Board shall issue guidelines for the implementation

8 of the program established by the Board under section 1136

9 of title 49, United States Code, as added by subsection (a).

10 (c) CONFORMING AMENDMENT.—The chapter analysis

11 for subchapter III of chapter 11 of title 49, United States

12 Code, is amended by adding at the end the following:

‘‘1136. Family advocacy.’’.

13 SEC. 303. ACCIDENT AND SAFETY DATA CLASSIFICATION;

14 REPORT ON EFFECTS OF PUBLICATION AND

15 AUTOMATED SURVEILLANCE TARGETING SYS16 TEMS.

17 (a) ACCIDENT AND SAFETY DATA CLASSIFICATION.—

18 (1) IN GENERAL.—Subchapter II of chapter 11 of

19 title 49, United States Code, is amended by adding

20 at the end the following new section:

21 ‘‘§ 1119. Accident and safety data classification and

22 publication

23 ‘‘(a) IN GENERAL.—Not later than 90 days after the

24 date of enactment of this section, the National Transpor25 tation Safety Board (hereafter in this section referred to
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1 as the ‘Board’) shall, in consultation and coordination with

2 the Administrator of the Federal Aviation Administration

3 (hereafter in this section referred to as the ‘Administrator’),

4 develop a system for classifying air carrier accident and

5 pertinent safety data maintained by the Board.

6 ‘‘(b) REQUIREMENTS FOR CLASSIFICATION SYSTEM.—

7 ‘‘(1) IN GENERAL.—The system developed under

8 this section shall provide for the classification of acci9 dent and safety data in a manner that, in compari10 son to the system in effect on the date of enactment

11 of this section, provides for—

12 ‘‘(A) safety-related categories that provide

13 clearer descriptions of the passenger safety effects

14 associated with air transportation;

15 ‘‘(B) clearer descriptions of passenger safety

16 concerns associated with air transportation acci17 dents; and

18 ‘‘(C) a report to the Congress by the Board

19 that describes methods for accurately informing

20 the public of the concerns referred to in subpara21 graph (B) through regular reporting of accident

22 and safety data obtained through the system de23 veloped under this section.

24 ‘‘(2) PUBLIC COMMENT.—Upon developing a sys25 tem of classification under paragraph (1), the Board
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1 shall provide adequate opportunity for public review

2 and comment.

3 ‘‘(3) FINAL CLASSIFICATION.—After providing

4 for public review and comment, and after consulting

5 with the Administrator, the Board shall issue final

6 classifications. The Board shall ensure that air travel

7 accident and safety data covered under this section is

8 classified in accordance with the final classifications

9 issued under this section for data for calendar year

10 1997, and for each subsequent calendar year.

11 ‘‘(4) REPORT ON THE EFFECTS ASSOCIATED

12 WITH PUBLICATION OF AIR TRANSPORTATION ACCI13 DENT AND SAFETY INFORMATION.—

14 ‘‘(A) IN GENERAL.—Not later than the date

15 specified in subsection (a), the Board shall pre16 pare and submit to the Congress a report on the

17 effects and potential of the publication of air

18 transportation accident safety information.

19 ‘‘(B) CONTENT AND FORM OF REPORT.—The

20 report prepared under this paragraph shall in21 clude recommendations concerning the adoption

22 or revision of requirements for reporting accident

23 and safety data.

24 ‘‘(5) RECOMMENDATIONS OF THE ADMINIS25 TRATOR.—The Administrator may, from time to time,
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1 request the Board to consider revisions (including ad2 ditions to the classification system developed under

3 this section). The Board shall respond to any request

4 made by the Administrator under this section not

5 later than 90 days after receiving that request.

6 ‘‘(c) PRESENTATION OF FINAL CLASSIFICATIONS TO

7 THE INTERNATIONAL CIVIL AVIATION ORGANIZATION.—Not

8 later than 90 days after final classifications are issued

9 under subsection (b)(3), the Administrator shall—

10 ‘‘(1) present to the International Civil Aviation

11 Organization the final classification system developed

12 under this section; and

13 ‘‘(2) seek the adoption of that system by the

14 International Civil Aviation Organization.’’.

15 (2) CONFORMING AMENDMENT.—The chapter

16 analysis for subchapter II of chapter 11 of title 49,

17 United States Code, is amended by adding at the end

18 the following new item:

‘‘1119. Accident and safety data classification and publication.’’.

19 (b) AUTOMATED SURVEILLANCE TARGETING SYS20 TEMS.—Section 44713 is amended by adding at the end the

21 following new subsection:

22 ‘‘(e) AUTOMATED SURVEILLANCE TARGETING SYS23 TEMS.—

24 ‘‘(1) IN GENERAL.—The Administrator shall give

25 high priority to developing and deploying a fully en-
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1 hanced safety performance analysis system that in2 cludes automated surveillance to assist the Adminis3 trator in prioritizing and targeting surveillance and

4 inspection activities of the Federal Aviation Adminis5 tration.

6 ‘‘(2) DEADLINES FOR DEPLOYMENT.—

7 ‘‘(A) INITIAL PHASE.—The initial phase of

8 the operational deployment of the system devel9 oped under this subsection shall begin not later

10 than December 31, 1997.

11 ‘‘(B) FINAL PHASE.—The final phase of

12 field deployment of the system developed under

13 this subsection shall begin not later than Decem14 ber 31, 1999. By that date, all principal oper15 ations and maintenance inspectors of the Admin16 istration, and appropriate supervisors and ana17 lysts of the Administration shall have been pro18 vided access to the necessary information and re19 sources to carry out the system.

20 ‘‘(3) INTEGRATION OF INFORMATION.—In devel21 oping the system under this section, the Administra22 tion shall consider the near-term integration of acci23 dent and incident data into the safety performance

24 analysis system under this subsection.’’.
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1 SEC. 304. WEAPONS AND EXPLOSIVE DETECTION STUDY.

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

3 Aviation Administration (hereafter in this section referred

4 to as the ‘‘Administrator’’) shall enter into an arrangement

5 with the Director of the National Academy of Sciences (or

6 if the National Academy of Sciences is not available, the

7 head of another equivalent entity) to conduct a study in

8 accordance to this section.

9 (b) PANEL OF EXPERTS.—

10 (1) IN GENERAL.—In carrying out a study

11 under this section, the Director of the National Acad12 emy of Sciences (or the head of another equivalent en13 tity) shall establish a panel (hereinafter in this sec14 tion as the ‘‘panel’’).

15 (2) EXPERTISE.—Each member of the panel es16 tablished under this subsection shall have expertise in

17 weapons and explosive detection technology, security,

18 air carrier and airport operations, or another appro19 priate area. The Director of the National Academy of

20 Sciences (or the head of another equivalent entity)

21 shall ensure that the panel has an appropriate num22 ber of representatives of the areas specified in the pre23 ceding sentence.

24 (c) STUDY.—The panel established under subsection

25 (b), in consultation with the National Science and Tech26 nology Council, representatives of appropriate Federal
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1 agencies, and appropriate members of the private sector,

2 shall—

3 (1) assess the weapons and explosive detection

4 technologies that are available at the time of the study

5 that are capable of being effectively deployed in com6 mercial aviation;

7 (2) determine how the technologies referred to in

8 paragraph (1) may more effectively be used for pro9 motion and improvement of security at airport and

10 aviation facilities and other secured areas; and

11 (3) on the basis of the assessments and deter12 minations made under paragraphs (1) and (2), iden13 tify the most promising technologies for the improve14 ment of the efficiency and cost-effectiveness of weap15 ons and explosive detection.

16 (d) COOPERATION.—The National Science and Tech17 nology Council shall take such action as may be necessary

18 to facilitate, to the maximum extent practicable and upon

19 request of the Director of the National Academy of Sciences

20 (or the head of another equivalent entity), the cooperation

21 of representatives of appropriate Federal agencies, as pro22 vided for in subsection (c), in providing the panel, for the

23 study under this section—

24 (1) expertise; and
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1 (2) to the extent allowable by law, resources and

2 facilities.

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

4 of Sciences (or the head of another equivalent entity) shall,

5 pursuant to an arrangement entered into under subsection

6 (a), submit to the Administrator such reports as the Admin7 istrator considers to be appropriate. Upon receipt of a re8 port under this subsection, the Administrator shall submit

9 a copy of the report to the appropriate committees of the

10 Congress.

11 (f) AUTHORIZATION OF APPROPRIATIONS.—There are

12 authorized to be appropriated, for each of fiscal years 1997

13 through 2001, such sums as may be necessary to carry out

14 this section.

15 SEC. 305. REQUIREMENT FOR CRIMINAL HISTORY RECORDS

16 CHECKS.

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

18 (1) by redesignating subparagraphs (A) and (B)

19 as clauses (i) and (ii), respectively;

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

21 and

22 (3) by adding at the end the following:

23 ‘‘(B) The Administrator shall require by regulation

24 that an employment investigation (including a criminal
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1 history record check in any case described in subparagraph

2 (C)) be conducted for—

3 ‘‘(i) individuals who will be responsible for

4 screening passengers or property under section 44901

5 of this title;

6 ‘‘(ii) supervisors of the individuals described in

7 clause (i); and

8 ‘‘(iii) such other individuals who exercise secu9 rity functions associated with baggage or cargo, as the

10 Administrator determines is necessary to ensure air

11 transportation security.

12 ‘‘(C) Under the regulations issued under subparagraph

13 (B), a criminal history record check shall, as a minimum,

14 be conducted in any case in which—

15 ‘‘(i) an employment investigation reveals a gap

16 in employment of 12 months or more that the indi17 vidual who is the subject of the investigation does not

18 satisfactorily account for;

19 ‘‘(ii) that individual is unable to support state20 ments made on the application of that individual;

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

22 information provided on the application of that indi23 vidual; or

24 ‘‘(iv) information becomes available during the

25 employment investigation indicating a possible con-
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1 viction for one of the crimes listed in subsection

2 (b)(1)(B).’’.

3 (b) APPLICABILITY.—The amendment made by sub4 section (a)(3) shall apply to individuals hired to perform

5 functions described in section 44936(a)(1)(B) of title 49,

6 United States Code, after the date of the enactment of this

7 Act, except that the Administrator may, as the Adminis8 trator determines to be appropriate, require such employ9 ment investigations or criminal history records checks for

10 individuals performing those functions on the date of enact11 ment of this Act. Nothing in section 44936 of title 49, Unit12 ed States Code, as amended by subsection (a) precludes the

13 Administration from permitting the employment of an in14 dividual on an interim basis while employment or criminal

15 history record checks required by that section are being con16 ducted.

17 SEC. 306. INTERIM DEPLOYMENT OF COMMERCIALLY AVAIL18 ABLE EXPLOSIVE DETECTION EQUIPMENT.

19 Section 44913(a) is amended—

20 (1) by redesignating paragraph (3) as para21 graph (4); and

22 (2) by inserting after paragraph (2) the follow23 ing:

24 ‘‘(3) Until such time as the Administrator deter25 mines that equipment certified under paragraph (1)
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1 is commercially available and has successfully com2 pleted operational testing as provided in paragraph

3 (1), the Administrator shall facilitate the deployment

4 of such approved commercially available explosive de5 tection devices as the Administrator determines will

6 enhance aviation security significantly. The Adminis7 trator shall require that equipment deployed under

8 this paragraph be replaced by equipment certified

9 under paragraph (1) when equipment certified under

10 paragraph (1) becomes commercially available. The

11 Administrator is authorized, based on operational

12 considerations at individual airports, to waive the re13 quired installation of commercially available equip14 ment under paragraph (1) in the interests of aviation

15 security.’’.

16 SEC. 307. AUDIT OF PERFORMANCE OF BACKGROUND

17 CHECKS FOR CERTAIN PERSONNEL.

18 Section 44936(a) is amended by adding at the end the

19 following:

20 ‘‘(3) The Administrator shall provide for the

21 periodic audit of the effectiveness of criminal history

22 record checks conducted under paragraph (1) of this

23 subsection.’’.
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1 SEC. 308. SENSE OF THE SENATE ON PASSENGER

2 PROFILING.

3 It is the sense of the Senate that the Administrator

4 of the Federal Aviation Administration, in consultation

5 with the intelligence and law enforcement communities,

6 should continue to assist air carriers in developing com7 puter-assisted and other appropriate passenger profiling

8 programs which should be used in conjunction with other

9 security measures and technologies.

10 SEC. 309. AUTHORITY TO USE CERTAIN FUNDS FOR AIR11 PORT SECURITY PROGRAMS AND ACTIVITIES.

12 (a) IN GENERAL.—Notwithstanding any other provi13 sion of law, funds referred to in subsection (b) may be used

14 to expand and enhance air transportation security pro15 grams and other activities (including the improvement of

16 facilities and the purchase and deployment of equipment)

17 to ensure the safety and security of passengers and other

18 persons involved in air travel.

19 (b) COVERED FUNDS.—The following funds may be

20 used under subsection (a):

21 (1) Project grants made under subchapter 1 of

22 chapter 471 of title 49, United States Code.

23 (2) Passenger facility fees collected under section

24 40117 of title 49, United States Code.
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1 SEC. 310. DEVELOPMENT OF AVIATION SECURITY LIAISON

2 AGREEMENT.

3 The Secretary of Transportation and the Attorney

4 General, acting through the Administrator of the Federal

5 Aviation Administration and the Director of the Federal

6 Bureau of Investigation, shall enter into an interagency

7 agreement providing for the establishment of an aviation

8 security liaison at existing appropriate Federal agencies’

9 field offices in or near cities served by a designated high10 risk airport.

11 SEC. 311. REGULAR JOINT THREAT ASSESSMENTS.

12 The Administrator of the Federal Aviation Adminis13 tration and the Director of the Federal Bureau of Investiga14 tion shall carry out joint threat and vulnerability assess15 ments on security every 3 years, or more frequently, as nec16 essary, at airports determined to be high risk.

17 SEC. 312. BAGGAGE MATCH REPORT.

18 Within 30 days after the completion of the passenger

19 bag match pilot program recommended by the Vice Presi20 dent’s Commission on Aviation Security, the Administrator

21 shall submit a report to Congress on the safety effectiveness

22 and operational effectiveness of the pilot program. The re23 port shall also assess the extent to which implementation

24 of baggage match requirements, coupled with the best avail25 able technologies and methodologies, such as passenger

26 profiling, enhance domestic aviation security.
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1 SEC. 313. ENHANCED SECURITY PROGRAMS.

2 (a) IN GENERAL.—Chapter 449 is amended by adding

3 at the end of subchapter I the following:

4 ‘‘§ 44916. Assessments and evaluations

5 ‘‘(a) IN GENERAL.—

6 ‘‘(1) PERIODIC ASSESSMENTS.—The Adminis7 trator shall require each air carrier and airport (in8 cluding the airport owner or operator in cooperation

9 with the air carriers and vendors serving each air10 port) that provides for intrastate, interstate, or for11 eign air transportation to conduct periodic vulner12 ability assessments of the security systems of that air

13 carrier or airport, respectively. The Administration

14 shall perform periodic audits of the assessments re15 ferred to in paragraph (1).

16 ‘‘(2) INVESTIGATIONS.—The Administrator shall

17 conduct periodic and unannounced inspections of se18 curity systems of airports and air carriers to deter19 mine the effectiveness and vulnerabilities of such sys20 tems. To the extent allowable by law, the Adminis21 trator may provide for anonymous tests of those secu22 rity systems.’’.

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

24 such chapter is amended by inserting after the item relating

25 to section 44915 the following:

‘‘44916. Assessments and evaluations.’’.
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1 SEC. 314. REPORT ON AIR CARGO.

2 Within —— days after the date of enactment of this

3 Act, the Secretary of Transportation shall prepare a report

4 for the Congress on any changes recommended and imple5 mented as a result of the Vice President’s Commission on

6 Aviation Security to enhance and supplement screening

7 and inspection of cargo, mail, and company-shipped mate8 rials transported in air commerce. The report shall include

9 an assessment of the effectiveness of such changes, any addi10 tional recommendations, and, if necessary, any legislative

11 proposals necessary to carry out additional changes.

12 TITLE IV—MISCELLANEOUS

13 PROVISIONS

14 SEC. 401. ACQUISITION OF HOUSING UNITS.

15 Section 40110 is amended—

16 (1) by redesignating subsection (b) as subsection

17 (c); and

18 (2) by inserting after subsection (a) the follow19 ing:

20 ‘‘(b) ACQUISITION OF HOUSING UNITS.—

21 ‘‘(1) AUTHORITY.—In carrying out this part, the

22 Administrator may acquire interests in housing units

23 outside the contiguous United States.

24 ‘‘(2) CONTINUING OBLIGATIONS.—Notwithstand25 ing section 1341 of title 31, United States Code, the

26 Administrator may acquire an interest in a housing
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1 unit under paragraph (1) even if there is an obliga2 tion thereafter to pay necessary and reasonable fees

3 duly assessed upon such unit, including fees related to

4 operation, maintenance, taxes, and insurance.

5 ‘‘(3) CERTIFICATION TO CONGRESS.—The Ad6 ministrator may acquire an interest in a housing

7 unit under paragraph (1) only if the Administrator

8 transmits to the Committee on Transportation and

9 Infrastructure of the House of Representatives and the

10 Committee on Commerce, Science, and Transpor11 tation of the Senate at least 30 days before completing

12 the acquisition a report containing—

13 ‘‘(A) a description of the housing unit and

14 its price; and

15 ‘‘(B) a certification that acquiring the hous16 ing unit is the most cost-beneficial means of pro17 viding necessary accommodations in carrying

18 out this part.

19 ‘‘(4) PAYMENT OF FEES.—The Administrator

20 may pay, when due, fees resulting from the acquisi21 tion of an interest in a housing unit under this sub22 section from any amounts made available to the Ad23 ministrator.’’.
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1 SEC. 402. PROTECTION OF VOLUNTARILY SUBMITTED IN2 FORMATION.

3 (a) IN GENERAL.—Chapter 401 is amended by redesig4 nating section 40120 as section 40121 and by inserting

5 after section 40119 the following:

6 ‘‘§ 40120. Protection of voluntarily submitted informa7 tion

8 ‘‘(a) IN GENERAL.—Notwithstanding any other provi9 sion of law, neither the Administrator of the Federal Avia10 tion Administration, nor any agency receiving information

11 from the Administrator, shall disclose voluntarily-provided

12 safety or security related information if the Administrator

13 finds that—

14 ‘‘(1) the disclosure of the information would in15 hibit the voluntary provision of that type of informa16 tion and that the receipt of that type of information

17 aids in fulfilling the Administrator’s safety and secu18 rity responsibilities; and

19 ‘‘(2) withholding such information from disclo20 sure would be consistent with the Administrator’s

21 safety and security responsibilities.

22 ‘‘(b) REGULATIONS.—The Administrator shall issue

23 regulations to carry out this section.’’.

24 (b) CONFORMING AMENDMENT.—The table of sections

25 at the beginning of chapter 401 is amended by striking the

26 item relating to section 40120 and inserting the following:
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‘‘40120. Protection of voluntarily submitted information.

‘‘40121. Relationship to other laws.’’.

1 SEC. 403. APPLICATION OF FAA REGULATIONS.

2 In revising title 14, Code of Federal Regulations, in

3 a manner affecting intrastate aviation in Alaska, the Ad4 ministrator of the Federal Aviation Administration shall

5 consider the extent to which Alaska is not served by trans6 portation modes other than aviation, and shall establish

7 such regulatory distinctions as the Administrator deems ap8 propriate.

9 SEC. 404. SENSE OF THE SENATE REGARDING THE FUND10 ING OF THE FEDERAL AVIATION ADMINISTRA11 TION.

12 (a) FINDINGS.—The Senate finds that—

13 (1) the Congress is responsible for ensuring that

14 the financial needs of the Federal Aviation Adminis15 tration, the agency that performs the critical function

16 of overseeing the Nation’s air traffic control system

17 and ensuring the safety of air travelers in the United

18 States, are met;

19 (2) the number of air traffic control equipment

20 and power failures is increasing, which could place at

21 risk the reliability of our Nation’s air traffic control

22 system;

23 (3) aviation excise taxes that constitute the Air24 port and Airway Trust Fund, which provides most of
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1 the funding for the Federal Aviation Administration,

2 have expired;

3 (4) the surplus in the Airport and Airway Trust

4 Fund will be spent by the Federal Aviation Adminis5 tration by December 1996;

6 (5) the existing system of funding the Federal

7 Aviation Administration will not provide the agency

8 with sufficient short-term or long-term funding;

9 (6) this Act creates a sound process to review

10 Federal Aviation Administration funding and develop

11 a funding system to meet the Federal Aviation Ad12 ministration’s long-term funding needs; and

13 (7) without immediate action by the Congress to

14 ensure that the Federal Aviation Administration’s fi15 nancial needs are met, air travelers’ confidence in the

16 system could be undermined.

17 (b) SENSE OF THE SENATE.—It is the sense of the Sen18 ate that there should be an immediate enactment of an 18-

19 month reinstatement of the aviation excise taxes to provide

20 short-term funding for the Federal Aviation Administra21 tion.

22 SEC. 405. AUTHORIZATION FOR STATE-SPECIFIC SAFETY

23 MEASURES.

24 There are authorized to be appropriated to the Federal

25 Aviation Administration not more than $10,000,000 for fis-
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1 cal year 1997 for the purpose of addressing State-specific

2 aviation safety problems identified by the National Trans3 portation Safety Board.

4 SEC. 406. SENSE OF THE SENATE REGARDING THE AIR AM5 BULANCE EXEMPTION FROM CERTAIN FED6 ERAL EXCISE TAXES.

7 It is the sense of the Senate that, if the excise taxes

8 imposed by section 4261 or 4271 of the Internal Revenue

9 Code of 1986 are reinstated, the exemption from those taxes

10 provided by section 4261(f) of such Code for air transpor11 tation by helicopter for the purpose of providing emergency

12 medical services should be broadened to include air trans13 portation by fixed-wing aircraft for that purpose.

14 SEC. 407. FAA SAFETY MISSION.

15 (a) IN GENERAL.—Section 40104 is amended—

16 (1) by inserting ‘‘safety of’’ before ‘‘air com17 merce’’ in the section caption;

18 (2) by inserting ‘‘SAFETY OF’’ before ‘‘AIR COM19 MERCE’’ in the caption of subsection (a); and

20 (3) by and inserting ‘‘safety of’’ before ‘‘air com21 merce’’ in subsection (a).

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

23 chapter 401 is amended by striking the item relating to sec24 tion 40104 and inserting:

‘‘40104. Promotion of civil aeronautics and air commerce safety.’’.
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1 SEC. 408. CARRIAGE OF CANDIDATES IN STATE AND LOCAL

2 ELECTIONS.

3 The Administrator of the Federal Aviation Adminis4 tration shall revise section 91.321 of the Administration’s

5 regulations (14 C.F.R. 91.321), relating to the carriage of

6 candidates in Federal elections, to make the same or similar

7 rules applicable to the carriage of candidates for election

8 to public office in State and local government elections.

9 SEC. 409. TRAIN WHISTLE REQUIREMENTS.

10 The Secretary of Transportation may not implement

11 regulations issued under section 20153(b) of title 49, United

12 States Code, requiring audible warnings to be sounded by

13 a locomotive horn at highway-rail grade crossings, unless—

14 (1) in implementing the regulations or providing

15 an exception to the regulations under section 20158(c)

16 of such title, the Secretary of Transportation takes

17 into account, among other criteria—

18 (A) the interest of the communities that, as

19 of July 30, 1996—

20 (i) have in effect restrictions on sound21 ing of a locomotive horn at highway-rail

22 grade crossings; or

23 (ii) have not been subject to the routine

24 (as the term is defined by the Secretary)

25 sounding of a locomotive horn at highway26 rail grade crossings; and
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1 (B) the past safety record at each grade

2 crossing involved; and

3 (2) whenever the Secretary determines that sup4 plementary safety measures (as that term is defined

5 in section 20153(a) of title 49, United States Code)

6 are necessary to provide an exception referred to in

7 paragraph (1), the Secretary—

8 (A) having considered the extent to which

9 local communities have established public aware10 ness initiatives and highway-rail crossing traffic

11 law enforcement programs allows for a period of

12 not to exceed 3 years, beginning on the date of

13 that determination, for the installation of those

14 measures; and

15 (B) works in partnership with affected com16 munities to provide technical assistance and to

17 develop a reasonable schedule for the installation

18 of those measures.

19 SEC. 410. LIMITATION ON AUTHORITY OF STATES TO REGU20 LATE GAMBLING DEVICES ON VESSELS.

21 Subsection (b)(2) of section 5 of the Act of January

22 2, 1951 (commonly referred to as the ‘‘Johnson Act’’) (64

23 Stat. 1135, chapter 1194; 15 U.S.C. 1175), is amended by

24 adding at the end the following:
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1 ‘‘(C) EXCLUSION OF CERTAIN VOYAGES AND

2 SEGMENTS.—Except for a voyage or segment of

3 a voyage that occurs within the boundaries of the

4 State of Hawaii, a voyage or segment of a voy5 age is not described in subparagraph (B) if such

6 voyage or segment includes or consists of a seg7 ment—

8 ‘‘(i) that begins that ends in the same

9 State;

10 ‘‘(ii) that is part of a voyage to an11 other State or to a foreign country; and

12 ‘‘(iii) in which the vessel reaches the

13 other State or foreign country within 3

14 days after leaving the State in which such

15 segment begins.’’.

16 SEC. 411. SPECIAL FLIGHT RULES IN THE VICINITY OF

17 GRAND CANYON NATIONAL PARK.

18 The Secretary of Transportation, acting through the

19 Administrator of the Federal Aviation Administration,

20 shall take such action as may be necessary to provide 30

21 additional days for comment by interested persons on the

22 special flight rules in the vicinity of Grand Canyon Na23 tional Park described in the notice of proposed rulemaking

24 issued on July 31, 1996, at 61 Fed. Reg. 40120 et seq.
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1 SEC. 412. INCREASED FEES.

2 Notwithstanding any other provision of law, the Sur3 face Transportation Board shall not increase fees for serv4 ices in connection with rail maximum rate complaints pur5 suant to 49 CFR part 1002, STB Ex Parte No. 542.

6 SEC. 413. TRANSFER OF AIR TRAFFIC CONTROL TOWER;

7 CLOSING OF FLIGHT SERVICE STATIONS.

8 (a) HICKORY, NORTH CAROLINA TOWER.—

9 (1) TRANSFER.—The Administrator of the Fed10 eral Aviation Administration may transfer any title,

11 right, or interest the United States has in the air

12 traffic control tower located at the Hickory Regional

13 Airport to the City of Hickory, North Carolina, for

14 the purpose of enabling the city to provide air traffic

15 control services to operators of aircraft.

16 (2) STUDY.—The Administrator shall conduct a

17 study to determine whether the number of operations

18 at Hickory Regional Airport meet the criteria for

19 contract towers and shall certify in writing to the

20 Committee on Commerce, Science, and Transpor21 tation of the Senate and the Committee on Commerce

22 and Infrastructure of the House of Representatives

23 whether that airport meets those criteria.

24 (b) NEW BERN–CRAVEN COUNTY STATION.—The Ad25 ministrator shall not close the New Bern–Craven County

26 flight services station or the Hickory Regional Airport flight
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1 service station unless the Administrator certifies in writing

2 to the Committee on Commerce, Science, and Transpor3 tation of the Senate and the Committee on Transportation

4 and Infrastructure of the House of Representatives that such

5 closure will not result in a derogation of air safety and

6 that it will reduce costs to taxpayers.

7 SEC. 414. SENSE OF THE SENATE REGARDING ACTS OF

8 INTERNATIONAL TERRORISM.

9 (a) FINDINGS.—The Senate finds that—

10 (1) there has been an intensification in the op11 pression and disregard for human life among nations

12 that are willing to export terrorism;

13 (2) there has been an increase in attempts by

14 criminal terrorists to murder airline passengers

15 through the destruction of civilian airliners and the

16 deliberate fear and death inflicted through bombings

17 of buildings and the kidnapping of tourists and

18 Americans residing abroad; and

19 (3) information widely available demonstrates

20 that a significant portion of international terrorist

21 activity is state-sponsored, -organized, -condoned, or

22 -directed.

23 (b) SENSE OF THE SENATE.—It is the sense of the Sen24 ate that if evidence establishes beyond a clear and reason25 able doubt that any act of hostility towards any United
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1 States citizen was an act of international terrorism spon2 sored, organized, condoned, or directed by any nation, a

3 state of war should be considered to exist or to have existed

4 between the United States of America and that nation, be5 ginning as of the moment that the act of aggression occurs.

6 SEC. 415. REPORTING FOR PROCUREMENT CONTRACTS.

7 Section 47112 is amended by adding at the end the

8 following new subsection:

9 ‘‘(d) REPORTING FOR PROCUREMENT CONTRACTS.—

10 (1) The Secretary of Transportation shall promulgate regu11 lations to require that each grant agreement that includes

12 the awarding of any contract that includes Federal funds

13 in an amount greater than or equal to $5,000,000 under

14 this subchapter provides for a report to the Secretary that

15 states—

16 ‘‘(A) the number of bids from qualified, respon17 sive and reasonable bidders that were in amounts

18 lower than the amount specified in the bid submitted

19 by the bidder awarded the contract;

20 ‘‘(B) for each bid referred to in subparagraph A

21 (other than the bid submitted by the bidder awarded

22 the contract) the amount by which the bid submitted

23 by the bidder awarded the contract exceeded the lower

24 bid.
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1 ‘‘(2) APPLICABILITY.—This subsection shall apply to

2 grants referred to in this paragraph that are awarded on

3 or after the date of enactment of this Act.’’.

4 SEC. 416. PROVISIONS RELATING TO LIMITED SCOPE

5 AUDIT.

6 (a) IN GENERAL.—Subparagraph (C) of section

7 103(a)(3) of the Employee Retirement Income Security Act

8 of 1974 (29 U.S.C. 1023(a)(3)(C)) is amended by adding

9 at the end the following new clause:

10 ‘‘(ii) If an accountant is offering his opin11 ion under this section in the case of an employee

12 pension benefit plan, the accountant shall, to the

13 extent consistent with generally accepted audit14 ing standards, rely on the work of any independ15 ent public accountant of any bank or similar in16 stitution or insurance carrier regulated and su17 pervised and subject to periodic investigation by

18 a State or Federal agency that holds assets or

19 processes transactions of the employee pension

20 benefit plan.’’.

21 (b) CONFORMING AMENDMENTS.—

22 (1) Section 103(a)(3)(A) of such Act (29 U.S.C.

23 1023(a)(3)(A)) is amended by striking ‘‘subparagraph

24 (C)’’ and inserting ‘‘subparagraph (C)(i)’’.
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1 (2) Section 103(a)(3)(C) of such Act (29 U.S.C.

2 1023(a)(3)(C)) is amended by striking ‘‘(C) The’’ and

3 inserting ‘‘(C)(i) In the case of an employee benefit

4 plan other than an employee pension benefit plan,

5 the’’.

6 (c) EFFECTIVE DATE.—The amendments made by this

7 section shall apply with respect to opinions required under

8 section 103(a)(3)(A) of the Employee Retirement Income

9 Security Act of 1974 for plan years beginning on or after

10 January 1 of the calendar year following the date of the

11 enactment of this Act.

12 SEC. 417. ADVANCE ELECTRONIC TRANSMISSION OF CARGO

13 AND PASSENGER INFORMATION.

14 (a) CARGO INFORMATION.—

15 (1) IN GENERAL.—Section 431(b) of the Tariff

16 Act of 1930 (19 U.S.C. 1431(b)) is amended—

17 (A) by striking ‘‘Any manifest’’ and insert18 ing ‘‘(1) Any manifest’’, and

19 (B) by adding at the end the following new

20 paragraph:

21 ‘‘(2)(A) Every passenger air carrier required to make

22 entry or to obtain clearance under the customs laws of the

23 United States (or the authorized agent of such carrier) shall

24 provide by electronic transmission cargo manifest informa25 tion described in subparagraph (B) in advance of such
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1 entry or clearance in such manner as the Secretary shall

2 prescribe.

3 ‘‘(B) The information described in this subparagraph

4 is as follows:

5 ‘‘(i) The airport of arrival or departure, which6 ever is appropriate.

7 ‘‘(ii) The airline prefix code.

8 ‘‘(iii) The carrier code.

9 ‘‘(iv) The flight number.

10 ‘‘(v) The date of scheduled arrival or date of de11 parture, whichever is appropriate.

12 ‘‘(vi) The permit to proceed to the destination, if

13 applicable.

14 ‘‘(vii) The master and house air waybill numbers

15 and quantities.

16 ‘‘(viii) The first airport of lading of the cargo.

17 ‘‘(ix) A description and weight of the cargo.

18 ‘‘(x) The shipper’s name and address from all

19 air waybills.

20 ‘‘(xi) The consignee name and address from all

21 air waybills.

22 ‘‘(xii) Notice that actual boarded quantities are

23 not equal to air waybill quantities.

24 ‘‘(xiii) Transfer or transit information.

25 ‘‘(xiv) Warehouse or other location of the cargo.
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1 ‘‘(xv) Any other data that the Secretary may by

2 regulation prescribe.’’.

3 (2) CONFORMING AMENDMENT.—Subsection

4 (d)(1)(A) of section 431 of such Act is amended by in5 serting before the semicolon ‘‘or subsection (b)(2)’’.

6 (b) PASSENGER INFORMATION.—The Part II of title

7 IV of the Tariff Act of 1930 is amended by inserting after

8 section 431 the following new section:

9 ‘‘SEC. 432. PASSENGER MANIFEST INFORMATION REQUIRED

10 FOR AIR CARRIERS.

11 ‘‘(a) IN GENERAL.—Every passenger air carrier re12 quired to make entry or obtain clearance under the customs

13 laws of the United States (or the authorized agent of such

14 carrier) shall provide by electronic transmission passenger

15 manifest information described in subsection (b) in advance

16 of such entry or clearance in such manner and form as the

17 Secretary shall prescribe.

18 ‘‘(b) INFORMATION DESCRIBED.—The information de19 scribed in this subsection is as follows:

20 ‘‘(1) Full name of each passenger.

21 ‘‘(2) Date of birth and citizenship of each pas22 senger.

23 ‘‘(3) Passport number and country of issuance of

24 each passenger.

25 ‘‘(4) Passenger name record.
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1 ‘‘(5) Any additional data that the Secretary, by

2 regulation, determines is reasonably necessary to en3 sure aviation safety pursuant to the Customs laws of

4 the United States.’’.

5 (c) DEFINITION.—Section 401 of the Tariff Act of 1930

6 is amended by adding at the end the following new sub7 section:

8 ‘‘(t) PASSENGER AIR CARRIER.—The term ‘passenger

9 air carrier’ means an air carrier (as defined in section

10 40102(a)(2) of title 49, United States Code) or foreign air

11 carrier (as defined in section 40102(a)(21) of such title 49)

12 that provides transportation of passengers to or from any

13 place in the United States.’’.

14 (d) EFFECTIVE DATE.—The amendments made by this

15 section shall take effect 45 days after the date of the enact16 ment of this Act.

17 TITLE V—COMMERCIAL SPACE

18 LAUNCH ACT AMENDMENTS

19 SEC. 501. COMMERCIAL SPACE LAUNCH AMENDMENTS.

20 (a) AMENDMENTS.—Chapter 701 of title 49, United

21 States Code, is amended—

22 (1) in the table of sections—

23 (A) by amending the item relating to sec24 tion 70104 to read as follows:

‘‘70104. Restrictions on launches, operations, and reentries.’’;
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1 (B) by amending the item relating to sec2 tion 70108 to read as follows:

‘‘70108. Prohibition, suspension, and end of launches, operation of launch sites

and reentry sites, and reentries.’’;

3 and

4 (C) by amending the item relating to sec5 tion 70109 to read as follows:

‘‘70109. Preemption of scheduled launches or reentries.’’;

6 (2) in section 70101—

7 (A) by inserting ‘‘microgravity research,’’

8 after ‘‘information services,’’ in subsection (a)(3);

9 (B) by inserting ‘‘, reentry,’’ after ‘‘launch10 ing’’ both places it appears in subsection (a)(4);

11 (C) by inserting ‘‘, reentry vehicles,’’ after

12 ‘‘launch vehicles’’ in subsection (a)(5);

13 (D) by inserting ‘‘and reentry services‘’

14 after ‘‘launch services’’ in subsection (a)(6);

15 (E) by inserting ‘‘, reentries,’’ after

16 ‘‘launches’’ both places it appears in subsection

17 (a)(7);

18 (F) by inserting ‘‘, reentry sites,’’ after

19 ‘‘launch sites’’ in subsection (a)(8);

20 (G) by inserting ‘‘and reentry services’’

21 after ‘‘launch services’’ in subsection (a)(8);

22 (H) by inserting ‘‘reentry sites,’’ after

23 ‘‘launch sites,’’ in subsection (a)(9);
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1 (I) by inserting ‘‘and reentry site’’ after

2 ‘‘launch site’’ in subsection (a)(9);

3 (J) by inserting ‘‘reentry vehicles,’’ after

4 ‘‘launch vehicles’’ in subsection (b)(2);

5 (K) by striking ‘‘launch’’ in subsection

6 (b)(2)(A);

7 (L) by inserting ‘‘and reentry’’ after ‘‘com8 mercial launch’’ in subsection (b)(3);

9 (M) by striking ‘‘launch’’ after ‘‘and trans10 fer commercial’’ in subsection (b)(3); and

11 (N) by inserting ‘‘and development of re12 entry sites,’’ after ‘‘launch-site support facili13 ties,’’ in subsection (b)(4);

14 (3) in section 70102—

15 (A) by striking ‘‘and any payload’’ and in16 serting in lieu thereof ‘‘or reentry vehicle and

17 any payload from Earth’’ in paragraph (3);

18 (B) by inserting ‘‘or reentry vehicle’’ after

19 ‘‘means of a launch vehicle’’ in paragraph (8);

20 (C) by redesignating paragraphs (10)

21 through (12) as paragraphs (14) through (16),

22 respectively;

23 (D) by inserting after paragraph (9) the fol24 lowing new paragraphs:
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1 ‘‘(10) ‘reenter’ and ‘reentry’ mean to return or

2 attempt to return, purposefully, a reentry vehicle and

3 its payload, if any, from Earth orbit or from outer

4 space to Earth.

5 ‘‘(11) ‘reentry services’ means—

6 ‘‘(A) activities involved in the preparation

7 of a reentry vehicle and its payload, if any, for

8 reentry; and

9 ‘‘(B) the conduct of a reentry.

10 ‘‘(12) ‘reentry site’ means the location on Earth

11 to which a reentry vehicle is intended to return (as

12 defined in a license the Secretary issues or transfers

13 under this chapter).

14 ‘‘(13) ‘reentry vehicle’ means a vehicle designed

15 to return from Earth orbit or outer space to Earth,

16 or a reusable launch vehicle designed to return from

17 outer space substantially intact.’’; and

18 (E) by inserting ‘‘or reentry services’’ after

19 ‘‘launch services’’ each place it appears in para20 graph (15), as so redesignated by subparagraph

21 (C) of this paragraph;

22 (4) in section 70103(b)—

23 (A) by inserting ‘‘AND REENTRIES’’ after

24 ‘‘LAUNCHES’’ in the subsection heading;
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1 (B) by inserting ‘‘and reentries’’ after

2 ‘‘space launches’’ in paragraph (1); and

3 (C) by inserting ‘‘and reentry’’ after ‘‘space

4 launch’’ in paragraph (2);

5 (5) in section 70104—

6 (A) by amending the section designation

7 and heading to read as follows:

8 ‘‘§ 70104. Restrictions on launches, operations, and re9 entries’’;

10 (B) by inserting ‘‘or reentry site, or to reen11 ter a reentry vehicle,’’ after ‘‘operate a launch

12 site’’ each place it appears in subsection (a);

13 (C) by inserting ‘‘or reentry’’ after ‘‘launch

14 or operation’’ in subsection (a)(3) and (4);

15 (D) in subsection (b)—

16 (i) by striking ‘‘launch license’’ and

17 inserting in lieu thereof ‘‘license’’;

18 (ii) by inserting ‘‘or reenter’’ after

19 ‘‘may launch’’; and

20 (iii) by inserting ‘‘or reentering’’ after

21 ‘‘related to launching’’; and

22 (E) in subsection (c)—

23 (i) by amending the subsection heading

24 to read as follows: ‘‘PREVENTING LAUNCHES

25 AND REENTRIES.—’’;
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1 (ii) by inserting ‘‘or reentry’’ after

2 ‘‘prevent the launch’’; and

3 (iii) by inserting ‘‘or reentry’’ after

4 ‘‘decides the launch’’;

5 (6) in section 70105—

6 (A) by inserting ‘‘or a reentry site, or the

7 reentry of a reentry vehicle,’’ after ‘‘operation of

8 a launch site’’ in subsection (b)(1); and

9 (B) by striking ‘‘or operation’’ and insert10 ing in lieu thereof ‘‘, operation, or reentry’’ in

11 subsection (b)(2)(A);

12 (7) in section 70106(a)—

13 (A) by inserting ‘‘or reentry site’’ after ‘‘ob14 server at a launch site’’;

15 (B) by inserting ‘‘or reentry vehicle’’ after

16 ‘‘assemble a launch vehicle’’; and

17 (C) by inserting ‘‘or reentry vehicle’’ after

18 ‘‘with a launch vehicle’’;

19 (8) in section 70108—

20 (A) by amending the section designation

21 and heading to read as follows:

22 ‘‘§ 70108. Prohibition, suspension, and end of

23 launches, operation of launch sites and

24 reentry sites, and reentries’’;

25 and
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1 (B) in subsection (a)—

2 (i) by inserting ‘‘or reentry site, or re3 entry of a reentry vehicle,’’ after ‘‘operation

4 of a launch site’’; and

5 (ii) by inserting ‘‘or reentry’’ after

6 ‘‘launch or operation’’;

7 (9) in section 70109—

8 (A) by amending the section designation

9 and heading to read as follows:

10 ‘‘§ 70109. Preemption of scheduled launches or reen11 tries’’;

12 (B) in subsection (a)—

13 (i) by inserting ‘‘or reentry’’ after ‘‘en14 sure that a launch’’;

15 (ii) by inserting ‘‘, reentry site,’’ after

16 ‘‘United States Government launch site’’;

17 (iii) by inserting ‘‘or reentry date com18 mitment’’ after ‘‘launch date commitment’’;

19 (iv) by inserting ‘‘or reentry’’ after

20 ‘‘obtained for a launch’’;

21 (v) by inserting ‘‘, reentry site,’’ after

22 ‘‘access to a launch site’’;

23 (vi) by inserting ‘‘, or services related

24 to a reentry,’’ after ‘‘amount for launch

25 services’’; and
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1 (vii) by inserting ‘‘or reentry’’ after

2 ‘‘the scheduled launch’’; and

3 (C) in subsection (c), by inserting ‘‘or re4 entry’’ after ‘‘prompt launching’’;

5 (10) in section 70110—

6 (A) by inserting ‘‘or reentry’’ after ‘‘prevent

7 the launch’’ in subsection (a)(2); and

8 (B) by inserting ‘‘or reentry site, or reentry

9 of a reentry vehicle,’’ after ‘‘operation of a

10 launch site’’ in subsection (a)(3)(B);

11 (11) in section 70111—

12 (A) by inserting ‘‘or reentry’’ after

13 ‘‘launch’’ in subsection (a)(1)(A);

14 (B) by inserting ‘‘and reentry services’’

15 after ‘‘launch services’’ in subsection (a)(1)(B);

16 (C) by inserting ‘‘or reentry services’’ after

17 ‘‘or launch services’’ in subsection (a)(2);

18 (D) by inserting ‘‘or reentry’’ after ‘‘com19 mercial launch’’ both places it appears in sub20 section (b)(1);

21 (E) by inserting ‘‘or reentry services’’ after

22 ‘‘launch services’’ in subsection (b)(2)(C);

23 (F) by striking ‘‘or its payload for launch’’

24 in subsection (d) and inserting in lieu thereof
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1 ‘‘or reentry vehicle, or the payload of either, for

2 launch or reentry’’; and

3 (G) by inserting ‘‘, reentry vehicle,’’ after

4 ‘‘manufacturer of the launch vehicle’’ in sub5 section (d);

6 (12) in section 70112—

7 (A) by inserting ‘‘or reentry’’ after ‘‘one

8 launch’’ in subsection (a)(3);

9 (B) by inserting ‘‘or reentry services’’ after

10 ‘‘launch services’’ in subsection (a)(4);

11 (C) by inserting ‘‘or reentry services’’ after

12 ‘‘launch services’’ each place it appears in sub13 section (b);

14 (D) by inserting ‘‘applicable’’ after ‘‘carried

15 out under the’’ in paragraphs (1) and (2) of sub16 section (b);

17 (E) by striking ‘‘, Space, and Technology’’

18 in subsection (d)(1);

19 (F) by inserting ‘‘OR REENTRIES’’ after

20 ‘‘LAUNCHES’’ in the heading for subsection (e);

21 and

22 (G) by inserting ‘‘or reentry site or a re23 entry’’ after ‘‘launch site’’ in subsection (e);
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1 (13) in section 70113(a)(1) and (d)(1) and (2),

2 by inserting ‘‘or reentry’’ after ‘‘one launch’’ each

3 place it appears;

4 (14) in section 70115(b)(1)(D)(i)—

5 (A) by inserting ‘‘reentry site,’’ after

6 ‘‘launch site,’’; and

7 (B) by inserting ‘‘or reentry vehicle’’ after

8 ‘‘launch vehicle’’ both places it appears; and

9 (15) in section 70117—

10 (A) by inserting ‘‘or reentry site, or to reen11 ter a reentry vehicle’’ after ‘‘operate a launch

12 site’’ in subsection (a);

13 (B) by inserting ‘‘or reentry’’ after ‘‘ap14 proval of a space launch’’ in subsection (d);

15 (C) by amending subsection (f) to read as

16 follows:

17 ‘‘(f) LAUNCH NOT AN EXPORT; REENTRY NOT AN IM18 PORT.—A launch vehicle, reentry vehicle, or payload that

19 is launched or reentered is not, because of the launch or

20 reentry, an export or import, respectively, for purposes of

21 a law controlling exports or imports.’’; and

22 (D) in subsection (g)—

23 (i) by striking ‘‘operation of a launch

24 vehicle or launch site,’’ in paragraph (1)

25 and inserting in lieu thereof ‘‘reentry, oper-
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1 ation of a launch vehicle or reentry vehicle,

2 or operation of a launch site or reentry

3 site,’’; and

4 (ii) by inserting ‘‘reentry,’’ after

5 ‘‘launch,’’ in paragraph (2).

6 (b) ADDITIONAL AMENDMENTS.—(1) Section 70105 of

7 title 49, United States Code, is amended—

8 (A) by inserting ‘‘(1)’’ before ‘‘A person may

9 apply’’ in subsection (a);

10 (B) by striking ‘‘receiving an application’’ both

11 places it appears in subsection (a) and inserting in

12 lieu thereof ‘‘accepting an application in accordance

13 with criteria established pursuant to subsection

14 (b)(2)(D)’’;

15 (C) by adding at the end of subsection (a) the

16 following new paragraph:

17 ‘‘(2) In carrying out paragraph (1), the Secretary may

18 establish procedures for certification of the safety of a

19 launch vehicle, reentry vehicle, or safety system, procedure,

20 service, or personnel that may be used in conducting li21 censed commercial space launch or reentry activities.’’;

22 (D) by striking ‘‘and’’ at the end of subsection

23 (b)(2)(B);
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1 (E) by striking the period at the end of sub2 section (b)(2)(C) and inserting in lieu thereof ‘‘;

3 and’’;

4 (F) by adding at the end of subsection (b)(2) the

5 following new subparagraph:

6 ‘‘(D) regulations establishing criteria for accept7 ing or rejecting an application for a license under

8 this chapter within 60 days after receipt of such ap9 plication.’’; and

10 (G) by inserting ‘‘, or the requirement to obtain

11 a license,’’ after ‘‘waive a requirement’’ in subsection

12 (b)(3).

13 (2) The amendment made by paragraph (1)(B) shall

14 take effect upon the effective date of final regulations issued

15 pursuant to section 70105(b)(2)(D) of title 49, United

16 States Code, as added by paragraph (1)(F) of this sub17 section.

18 (3) Section 70102(5) of title 49, United States Code,

19 is amended—

20 (A) by redesignating subparagraphs (A) and (B)

21 as subparagraphs (B) and (C), respectively; and

22 (B) by inserting before subparagraph (B), as so

23 redesignated by subparagraph (A) of this paragraph,

24 the following new subparagraph:
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1 ‘‘(A) activities directly related to the prepa2 ration of a launch site or payload facility for

3 one or more launches;’’.

4 (4) Section 70103(b) of title 49, United States Code,

5 is amended—

6 (A) in the subsection heading, as amended by

7 subsection (a)(4)(A) of this section, by inserting ‘‘AND

8 STATE SPONSORED SPACEPORTS’’ after ‘‘AND REEN9 TRIES’’; and

10 (B) in paragraph (1), by inserting ‘’and State

11 sponsored spaceports’’ after ‘‘private sector’’.

12 (5) Section 70105(a)(1) of title 49, United States Code,

13 as amended by subsection (b)(1) of this section, is amended

14 by inserting at the end the following: ‘‘The Secretary shall

15 submit to the Committee on Science of the House of Rep16 resentatives and the Committee on Commerce, Science, and

17 Transportation of the Senate a written notice not later than

18 7 days after any occurrence when a license is not issued

19 within the deadline established by this subsection.’’.

20 (6) Section 70111 of title 49, United States Code, is

21 amended—

22 (A) in subsection (a)(1), by inserting after sub23 paragraph (B) the following:

24 ‘‘The Secretary shall establish criteria and procedures for

25 determining the priority of competing requests from the pri-
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1 vate sector and State governments for property and services

2 under this section.’’;

3 (B) by striking ‘‘actual costs’’ in subsection

4 (b)(1) and inserting in lieu thereof ‘‘additive costs

5 only’’; and

6 (C) by inserting after subsection (b)(2) the fol7 lowing new paragraph:

8 ‘‘(3) The Secretary shall ensure the establishment of

9 uniform guidelines for, and consistent implementation of,

10 this section by all Federal agencies.’’.

11 (7) Section 70112 of title 49, United States Code, is

12 amended—

13 (A) in subsection (a)(1), by inserting ‘‘launch,

14 reentry, or site operator’’ after ‘‘(1) When a’’;

15 (B) in subsection (b)(1), by inserting ‘‘launch,

16 reentry, or site operator’’ after ‘‘(1)A’’; and

17 (C) in subsection (f), by inserting ‘‘launch, re18 entry, or site operator’’ after ‘‘carried out under a’’.

19 (c) REGULATIONS.—(1) Chapter 701 of title 49, Unit20 ed States Code, is amended by adding at the end the follow21 ing new section:

22 ‘‘§ 70120. Regulations

23 ‘‘The Secretary of Transportation, within 6 months

24 after the date of the enactment of this section, shall issue

25 regulations to carry out this chapter that include—
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1 ‘‘(1) guidelines for industry to obtain sufficient

2 insurance coverage for potential damages to third

3 parties;

4 ‘‘(2) procedures for requesting and obtaining li5 censes to operate a commercial launch vehicle and re6 entry vehicle;

7 ‘‘(3) procedures for requesting and obtaining op8 erator licenses for launch and reentry; and

9 ‘‘(4) procedures for the application of govern10 ment indemnification.’’.

11 (2) The table of sections for such chapter 701 is amend12 ed by adding after the item relating to section 70119 the

13 following new item:

‘‘70120. Regulations.’’.

14 TITLE VI—AIR TRAFFIC MANAGE15 MENT SYSTEM PERFORMANCE

16 IMPROVEMENT ACT

17 SEC. 601. SHORT TITLE.

18 This title may be cited as the ‘‘Air Traffic Manage19 ment System Performance Improvement Act of 1996’’.

20 SEC. 602. DEFINITIONS.

21 For the purposes of this title, the following definitions

22 shall apply:

23 (1) ADMINISTRATION.—The term ‘‘Administra24 tion’’ means the Federal Aviation Administration.
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1 (2) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of the Federal Avia3 tion Administration.

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

5 the Secretary of Transportation.

6 SEC. 603. EFFECTIVE DATE.

7 The provisions of this title and the amendments made

8 by this title shall take effect on the date that is 30 days

9 after the date of the enactment of this Act.

10 Subtitle A—General Provisions

11 SEC. 621. FINDINGS.

12 The Congress finds the following:

13 (1) In many respects the Administration is a

14 unique agency, being one of the few non-defense gov15 ernment agencies that operates 24 hours a day, 365

16 days of the year, while continuing to rely on outdated

17 technology to carry out its responsibilities for a state18 of-the-art industry.

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

20 transportation system paid 70 percent of the budget

21 of the Administration, with the remaining 30 percent

22 coming from the General Fund. The General Fund

23 contribution over the years is one measure of the bene24 fit received by the general public, military, and other

25 users of Administration’s services.
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1 (3) The Administration must become a more effi2 cient, effective, and different organization to meet fu3 ture challenges.

4 (4) The need to balance the Federal budget

5 means that it may become more and more difficult to

6 obtain sufficient General Fund contributions to meet

7 the Administration’s future budget needs.

8 (5) Congress must keep its commitment to the

9 users of the national air transportation system by

10 seeking to spend all moneys collected from them each

11 year and deposited into the Airport and Airway

12 Trust Fund. Existing surpluses representing past re13 ceipts must also be spent for the purposes for which

14 such funds were collected.

15 (6) The aviation community and the employees

16 of the Administration must come together to improve

17 the system. The Administration must continue to rec18 ognize who its customers are and what their needs

19 are, and to design and redesign the system to make

20 safety improvements and increase productivity.

21 (7) The Administration projects that commercial

22 operations will increase by 18 percent and passenger

23 traffic by 35 percent by the year 2002. Without effec24 tive airport expansion and system modernization,

25 these needs cannot be met.
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1 (8) Absent significant and meaningful reform,

2 future challenges and needs cannot be met.

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

4 doing business.

5 (10) There is widespread agreement within gov6 ernment and the aviation industry that reform of the

7 Administration is essential to safely and efficiently

8 accommodate the projected growth of aviation within

9 the next decade.

10 (11) To the extent that the Congress determines

11 that certain segments of the aviation community are

12 not required to pay all of the costs of the government

13 services which they require and benefits which they

14 receive, the Congress should appropriate the difference

15 between such costs and any receipts received from

16 such segment.

17 (12) Prior to the imposition of any new charges

18 or user fees on segments of the industry, an independ19 ent review must be performed to assess the funding

20 needs and assumptions for operations, capital spend21 ing, and airport infrastructure.

22 (13) An independent, thorough, and complete

23 study and assessment must be performed of the costs

24 to the Administration and the costs driven by each

25 segment of the aviation system for safety and oper-
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1 ational services, including the use of the air traffic

2 control system and the Nation’s airports.

3 (14) Because the Administration is a unique

4 Federal entity in that it is a participant in the daily

5 operations of an industry, and because the national

6 air transportation system faces significant problems

7 without significant changes, the Administration has

8 been authorized to change the Federal procurement

9 and personnel systems to ensure that the Administra10 tion has the ability to keep pace with new technology

11 and is able to match resources with the real personnel

12 needs of the Administration.

13 (15) The existing budget system does not allow

14 for long-term planning or timely acquisition of tech15 nology by the Administration.

16 (16) Without reforms in the areas of procure17 ment, personnel, funding, and governance, the Admin18 istration will continue to experience delays and cost

19 overruns in its major modernization programs and

20 needed improvements in the performance of the air

21 traffic management system will not occur.

22 (17) All reforms should be designed to help the

23 Administration become more responsive to the needs

24 of its customers and maintain the highest standards

25 of safety.
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1 SEC. 622. PURPOSES.

2 The purposes of this title are—

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

4 all notices of proposed rulemaking of the Administra5 tion within 18 months after the date of their publica6 tion;

7 (2) to permit the Administration, with Congres8 sional review, to establish a program to improve air

9 traffic management system performance and to estab10 lish appropriate levels of cost accountability for air

11 traffic management services provided by the Adminis12 tration;

13 (3) to establish a more autonomous and account14 able Administration within the Department of Trans15 portation; and

16 (4) to make the Administration a more efficient

17 and effective organization, able to meet the needs of

18 a dynamic, growing industry, and to ensure the safe19 ty of the traveling public.

20 SEC. 623. REGULATION OF CIVILIAN AIR TRANSPORTATION

21 AND RELATED SERVICES BY THE FEDERAL

22 AVIATION ADMINISTRATION AND DEPART23 MENT OF TRANSPORTATION.

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

25 (1) by striking ‘‘The Administrator’’ in the fifth

26 sentence of subsection (b) and inserting ‘‘Except as
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1 provided in subsection (f) of this section or in other

2 provisions of law, the Administrator’’; and

3 (2) by striking subsection (f) and inserting the

4 following:

5 ‘‘(f) AUTHORITY OF THE SECRETARY AND THE ADMIN6 ISTRATOR.—

7 ‘‘(1) AUTHORITY OF THE SECRETARY.—Except

8 as provided in paragraph (2), the Secretary of Trans9 portation shall carry out the duties and powers of the

10 Administration.

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

12 Administrator—

13 ‘‘(A) is the final authority for carrying out

14 all functions, powers, and duties of the Adminis15 tration relating to—

16 ‘‘(i) except as otherwise provided in

17 paragraph (3), the promulgation of regula18 tions, rules, orders, circulars, bulletins, and

19 other official publications of the Adminis20 tration; and

21 ‘‘(ii) any obligation imposed on the

22 Administrator, or power conferred on the

23 Administrator, by the Air Traffic Manage24 ment System Performance Improvement Act
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1 of 1996 (or any amendment made by that

2 Act);

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

4 President with respect to the appointment and

5 qualifications of any officer or employee of the

6 Administration to be appointed by the President

7 or as a political appointee;

8 ‘‘(C) may delegate, and authorize successive

9 redelegations of, to an officer or employee of the

10 Administration any function, power, or duty

11 conferred upon the Administrator, unless such

12 delegation is prohibited by law; and

13 ‘‘(D) except as otherwise provided for in

14 this title, and notwithstanding any other provi15 sion of law to the contrary, shall not be required

16 to coordinate, submit for approval or concur17 rence, or seek the advice or views of the Secretary

18 or any other officer or employee of the Depart19 ment of Transportation on any matter with re20 spect to which the Administrator is the final au21 thority.

22 ‘‘(3) DEFINITION OF POLITICAL APPOINTEE.—

23 For purposes of this subsection, the term ‘political ap24 pointee’ means any individual who—
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1 ‘‘(A) is employed in a position on the Exec2 utive Schedule under sections 5312 through 5316

3 of title 5;

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

5 emergency appointee, or noncareer appointee in

6 the Senior Executive Service as defined under

7 section 3132(a) (5), (6), and (7) of title 5, re8 spectively; or

9 ‘‘(C) is employed in a position in the execu10 tive branch of the Government of a confidential

11 or policy-determining character under Schedule

12 C of subpart C of part 213 of title 5 of the Code

13 of Federal Regulations.’’.

14 (b) PRESERVATION OF EXISTING AUTHORITY.—Noth15 ing in this title or the amendments made by this title limits

16 any authority granted to the Administrator by statute or

17 by delegation that was in effect on the day before the date

18 of enactment of this Act.

19 SEC. 624. REGULATIONS.

20 Section 106(f), as amended by section 623, is further

21 amended—

22 (1) by redesignating paragraph (3) as para23 graph (4); and

24 (2) by inserting after paragraph (2) the follow25 ing:
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1 ‘‘(3) REGULATIONS.—

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

3 the functions of the Administrator and the Ad4 ministration, the Administrator is authorized to

5 issue, rescind, and revise such regulations as are

6 necessary to carry out those functions. The issu7 ance of such regulations shall be governed by the

8 provisions of chapter 5 of title 5. The Adminis9 trator shall act upon all petitions for rulemaking

10 no later than 6 months after the date such peti11 tions are filed by dismissing such petitions, by

12 informing the petitioner of an intention to dis13 miss, or by issuing a notice of proposed rule14 making or advanced notice of proposed rule15 making. The Administrator shall issue a final

16 regulation, or take other final action, not later

17 than 18 months after the date of publication in

18 the Federal Register of a notice of proposed rule19 making or, in the case of an advanced notice of

20 proposed rulemaking, if issued, not later than 24

21 months after that date.

22 ‘‘(B) APPROVAL OF SECRETARY OF TRANS23 PORTATION.—

24 ‘‘(i) The Administrator may not issue

25 a proposed regulation or final regulation
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1 that is likely to result in the expenditure by

2 State, local, and tribal governments in the

3 aggregate, or by the private sector, of

4 $50,000,000 or more (adjusted annually for

5 inflation beginning with the year following

6 the date of enactment of the Air Traffic

7 Management System Performance Improve8 ment Act of 1996) in any 1 year, or any

9 regulation which is significant, unless the

10 Secretary of Transportation approves the

11 issuance of the regulation in advance. For

12 purposes of this paragraph, a regulation is

13 significant if it is likely to—

14 ‘‘(I) have an annual effect on the

15 economy of $100,000,000 or more or

16 adversely affect in a material way the

17 economy, a sector of the economy, pro18 ductivity, competition, jobs, the envi19 ronment, public health or safety, or

20 State, local, or tribal governments or

21 communities;

22 ‘‘(II) create a serious inconsist23 ency or otherwise interfere with an ac24 tion taken or planned by another agen25 cy;
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1 ‘‘(III) materially alter the budg2 etary impact of entitlements, grants,

3 user fees, or loan programs or the

4 rights and obligations of recipients

5 thereof; or

6 ‘‘(IV) raise novel legal or policy

7 issues arising out of legal mandates.

8 ‘‘(ii) In an emergency, the Adminis9 trator may issue a regulation described in

10 clause (i) without prior approval by the

11 Secretary, but any such emergency regula12 tion is subject to ratification by the Sec13 retary after it is issued and shall be re14 scinded by the Administrator within 5 days

15 (excluding Saturdays, Sundays, and legal

16 public holidays) after issuance if the Sec17 retary fails to ratify its issuance.

18 ‘‘(iii) Any regulation that does not

19 meet the criteria of clause (i), and any reg20 ulation or other action that is a routine or

21 frequent action or a procedural action, may

22 be issued by the Administrator without re23 view or approval by the Secretary.

24 ‘‘(iv) The Administrator shall submit a

25 copy of any regulation requiring approval
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1 by the Secretary under clause (i) to the Sec2 retary, who shall either approve it or return

3 it to the Administrator with comments

4 within 45 days after receiving it.

5 ‘‘(C) PERIODIC REVIEW.—(i) Beginning on

6 the date which is 3 years after the date of enact7 ment of the Air Traffic Management System Per8 formance Improvement Act of 1996, the Admin9 istrator shall review any unusually burdensome

10 regulation issued by the Administrator after the

11 date of enactment of the Air Traffic Management

12 System Performance Improvement Act of 1996

13 beginning not later than 3 years after the effec14 tive date of the regulation to determine if the cost

15 assumptions were accurate, the benefit of the reg16 ulations, and the need to continue such regula17 tions in force in their present form.

18 ‘‘(ii) The Administrator may identify for

19 review under the criteria set forth in clause (i)

20 unusually burdensome regulations that were is21 sued before the date of enactment of the Air Traf22 fic Management System Performance Improve23 ment Act of 1996 and that have been in force for

24 more than 3 years.
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1 ‘‘(iii) For purposes of this subparagraph,

2 the term ‘unusually burdensome regulation’

3 means any regulation that results in the annual

4 expenditure by State, local, and tribal govern5 ments in the aggregate, or by the private sector,

6 of $25,000,000 or more (adjusted annually for

7 inflation beginning with the year following the

8 date of enactment of the Air Traffic Management

9 System Performance Act of 1996) in any year.

10 ‘‘(iv) The periodic review of regulations

11 may be performed by advisory committees and

12 the Management Advisory Council established

13 under subsection (p).’’.

14 SEC. 625. PERSONNEL AND SERVICES.

15 Section 106 is amended by adding at the end the fol16 lowing new subsection:

17 ‘‘(l) PERSONNEL AND SERVICES.—

18 ‘‘(1) OFFICERS AND EMPLOYEES.—Except as

19 provided in section 40121(a) of this title and section

20 347 of Public Law 104–50, the Administrator is au21 thorized, in the performance of the functions of the

22 Administrator, to appoint, transfer, and fix the com23 pensation of such officers and employees, including

24 attorneys, as may be necessary to carry out the func25 tions of the Administrator and the Administration.
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1 In fixing compensation and benefits of officers and

2 employees, the Administrator shall not engage in any

3 type of bargaining, except to the extent provided for

4 in section 40121(a), nor shall the Administrator be

5 bound by any requirement to establish such com6 pensation or benefits at particular levels.

7 ‘‘(2) EXPERTS AND CONSULTANTS.—The Admin8 istrator is authorized to obtain the services of experts

9 and consultants in accordance with section 3109 of

10 title 5.

11 ‘‘(3) TRANSPORTATION AND PER DIEM EX12 PENSES.—The Administrator is authorized to pay

13 transportation expenses, and per diem in lieu of sub14 sistence expenses, in accordance with chapter 57 of

15 title 5.

16 ‘‘(4) USE OF PERSONNEL FROM OTHER AGEN17 CIES.—The Administrator is authorized to utilize the

18 services of personnel of any other Federal agency (as

19 such term is defined under section 551(1) of title 5).

20 ‘‘(5) VOLUNTARY SERVICES.—

21 ‘‘(A) IN GENERAL.—(i) In exercising the

22 authority to accept gifts and voluntary services

23 under section 326 of this title, and without re24 gard to section 1342 of title 31, the Adminis25 trator may not accept voluntary and uncompen-
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1 sated services if such services are used to displace

2 Federal employees employed on a full-time, part3 time, or seasonal basis.

4 ‘‘(ii) The Administrator is authorized to

5 provide for incidental expenses, including trans6 portation, lodging, and subsistence for volunteers

7 who provide voluntary services under this sub8 section.

9 ‘‘(iii) An individual who provides vol10 untary services under this subsection shall not be

11 considered a Federal employee for any purpose

12 other than for purposes of chapter 81 of title 5,

13 relating to compensation for work injuries, and

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

15 SEC. 626. CONTRACTS.

16 Section 106(l), as added by section 625 of this title,

17 is amended by adding at the end the following new para18 graph:

19 ‘‘(6) CONTRACTS.—The Administrator is author20 ized to enter into and perform such contracts, leases,

21 cooperative agreements, or other transactions as may

22 be necessary to carry out the functions of the Admin23 istrator and the Administration. The Administrator

24 may enter into such contracts, leases, cooperative

25 agreements, and other transactions with any Federal
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1 agency (as such term is defined in section 551(1) of

2 title 5) or any instrumentality of the United States,

3 any State, territory, or possession, or political sub4 division thereof, any other governmental entity, or

5 any person, firm, association, corporation, or edu6 cational institution, on such terms and conditions as

7 the Administrator may consider appropriate.’’.

8 SEC. 627. FACILITIES.

9 Section 106, as amended by section 625 of this title,

10 is further amended by adding at the end the following new

11 subsection:

12 ‘‘(m) COOPERATION BY ADMINISTRATOR.—With the

13 consent of appropriate officials, the Administrator may,

14 with or without reimbursement, use or accept the services,

15 equipment, personnel, and facilities of any other Federal

16 agency (as such term is defined in section 551(1) of title

17 5) and any other public or private entity. The Adminis18 trator may also cooperate with appropriate officials of other

19 public and private agencies and instrumentalities concern20 ing the use of services, equipment, personnel, and facilities.

21 The head of each Federal agency shall cooperate with the

22 Administrator in making the services, equipment, person23 nel, and facilities of the Federal agency available to the Ad24 ministrator. The head of a Federal agency is authorized,

25 notwithstanding any other provision of law, to transfer to
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1 or to receive from the Administration, without reimburse2 ment, supplies and equipment other than administrative

3 supplies or equipment.’’.

4 SEC. 628. PROPERTY.

5 Section 106, as amended by section 627 of this title,

6 is further amended by adding at the end the following new

7 subsection:

8 ‘‘(n) ACQUISITION.—

9 ‘‘(1) IN GENERAL.—The Administrator is au10 thorized—

11 ‘‘(A) to acquire (by purchase, lease, con12 demnation, or otherwise), construct, improve, re13 pair, operate, and maintain—

14 ‘‘(i) air traffic control facilities and

15 equipment;

16 ‘‘(ii) research and testing sites and fa17 cilities; and

18 ‘‘(iii) such other real and personal

19 property (including office space and pat20 ents), or any interest therein, within and

21 outside the continental United States as the

22 Administrator considers necessary;

23 ‘‘(B) to lease to others such real and per24 sonal property; and
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1 ‘‘(C) to provide by contract or otherwise for

2 eating facilities and other necessary facilities for

3 the welfare of employees of the Administration at

4 the installations of the Administration, and to

5 acquire, operate, and maintain equipment for

6 these facilities.

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

8 therein acquired pursuant to this subsection shall be

9 held by the Government of the United States.’’.

10 SEC. 629. TRANSFERS OF FUNDS FROM OTHER FEDERAL

11 AGENCIES.

12 Section 106, as amended by section 628 of this title,

13 is further amended by adding at the end the following new

14 subsection:

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

16 authorized to accept transfers of unobligated balances and

17 unexpended balances of funds appropriated to other Federal

18 agencies (as such term is defined in section 551(1) of title

19 5) to carry out functions transferred by law to the Adminis20 trator or functions transferred pursuant to law to the Ad21 ministrator on or after the date of the enactment of the Air

22 Traffic Management System Performance Improvement Act

23 of 1996.’’.
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1 SEC. 630. MANAGEMENT ADVISORY COUNCIL.

2 Section 106, as amended by section 629 of this title,

3 is further amended by adding at the end the following new

4 subsection:

5 ‘‘(p) MANAGEMENT ADVISORY COUNCIL.—

6 ‘‘(1) ESTABLISHMENT.—Within 3 months after

7 the date of enactment of the Air Traffic Management

8 System Performance Improvement Act of 1996, the

9 Administrator shall establish an advisory council

10 which shall be known as the Federal Aviation Man11 agement Advisory Council (in this subsection referred

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

13 management, policy, spending, funding, and regu14 latory matters affecting the aviation industry, the

15 Council may submit comments, recommended modi16 fications, and dissenting views to the Administrator.

17 The Administrator shall include in any submission to

18 Congress, the Secretary, or the general public, and in

19 any submission for publication in the Federal Reg20 ister, a description of the comments, recommended

21 modifications, and dissenting views received from the

22 Council, together with the reasons for any differences

23 between the views of the Council and the views or ac24 tions of the Administrator.

25 ‘‘(2) MEMBERSHIP.—The Council shall consist of

26 15 members, who shall consist of—
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1 ‘‘(A) a designee of the Secretary of Trans2 portation;

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

4 and

5 ‘‘(C) 13 members representing aviation in6 terests, appointed by the President by and with

7 the advice and consent of the Senate.

8 ‘‘(3) QUALIFICATIONS.—No member appointed

9 under paragraph (2)(C) may serve as an officer or

10 employee of the United States Government while serv11 ing as a member of the Council.

12 ‘‘(4) FUNCTIONS.—

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

14 provide advice and counsel to the Administrator

15 on issues which affect or are affected by the oper16 ations of the Administrator. The Council shall

17 function as an oversight resource for manage18 ment, policy, spending, and regulatory matters

19 under the jurisdiction of the Administration.

20 ‘‘(ii) The Council shall review the rule21 making cost-benefit analysis process and develop

22 recommendations to improve the analysis and

23 ensure that the public interest is fully protected.
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1 ‘‘(iii) The Council shall review the process

2 through which the Administration determines to

3 use advisory circulars and service bulletins.

4 ‘‘(B) MEETINGS.—The Council shall meet

5 on a regular and periodic basis or at the call of

6 the chairman or of the Administrator.

7 ‘‘(C) ACCESS TO DOCUMENTS AND STAFF.—

8 The Administration may give the Council appro9 priate access to relevant documents and person10 nel of the Administration, and the Administrator

11 shall make available, consistent with the author12 ity to withhold commercial and other propri13 etary information under section 552 of title 5

14 (commonly known as the ‘Freedom of Informa15 tion Act’), cost data associated with the acquisi16 tion and operation of air traffic service systems.

17 Any member of the Council who receives com18 mercial or other proprietary data from the Ad19 ministrator shall be subject to the provisions of

20 section 1905 of title 18, pertaining to unauthor21 ized disclosure of such information.

22 ‘‘(5) FEDERAL ADVISORY COMMITTEE ACT NOT

23 TO APPLY.—The Federal Advisory Committee Act (5

24 U.S.C. App.) does not apply to the Council or such
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1 aviation rulemaking committees as the Administrator

2 shall designate.

3 ‘‘(6) ADMINISTRATIVE MATTERS.—

4 ‘‘(A) TERMS OF MEMBERS.—(i) Except as

5 provided in subparagraph (B), members of the

6 Council appointed by the President under para7 graph (2)(C) shall be appointed for a term of 3

8 years.

9 ‘‘(ii) Of the members first appointed by the

10 President—

11 ‘‘(I) 4 shall be appointed for terms of

12 1 year;

13 ‘‘(II) 5 shall be appointed for terms of

14 2 years; and

15 ‘‘(III) 4 shall be appointed for terms of

16 3 years.

17 ‘‘(iii) An individual chosen to fill a va18 cancy shall be appointed for the unexpired term

19 of the member replaced.

20 ‘‘(iv) A member whose term expires shall

21 continue to serve until the date on which the

22 member’s successor takes office.

23 ‘‘(B) CHAIRMAN; VICE CHAIRMAN.—The

24 Council shall elect a chair and a vice chair from

25 among the members appointed under paragraph
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1 (2)(C), each of whom shall serve for a term of 1

2 year. The vice chair shall perform the duties of

3 the chairman in the absence of the chairman.

4 ‘‘(C) TRAVEL AND PER DIEM.—Each mem5 ber of the Council shall be paid actual travel ex6 penses, and per diem in lieu of subsistence ex7 penses when away from his or her usual place of

8 residence, in accordance with section 5703 of

9 title 5.

10 ‘‘(D) DETAIL OF PERSONNEL FROM THE AD11 MINISTRATION.—The Administrator shall make

12 available to the Council such staff, information,

13 and administrative services and assistance as

14 may reasonably be required to enable the Council

15 to carry out its responsibilities under this sub16 section.

17 ‘‘(7) REPORT TO CONGRESS.—The Council, in

18 conjunction with the Administration, shall undertake

19 a review of the overall condition of aviation safety in

20 the United States and emerging trends in the safety

21 of particular sections of the aviation industry. This

22 shall include an examination of—

23 ‘‘(A) the extent to which the dual mission of

24 the Administration to promote and regulate civil

25 aviation may affect aviation safety and provide
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1 recommendations to Congress for any necessary

2 changes the Council, in conjunction with Admin3 istration, deems appropriate; and

4 ‘‘(B) the adequacy of staffing and training

5 resources for safety personnel of the Administra6 tion, including safety inspectors.

7 The Council shall report to Congress within 180 days

8 after the date of enactment of this Act on its findings

9 and recommendations under this paragraph.

10 SEC. 631. AIRCRAFT ENGINE STANDARDS.

11 Subsection (a)(1) of section 44715 is amended to read

12 as follows:

13 ‘‘(a) STANDARDS AND REGULATIONS.—(1) To relieve

14 and protect the public health and welfare from aircraft

15 noise, sonic boom, the Administrator of the Federal Avia16 tion Administration, as he deems necessary, shall pre17 scribe—

18 ‘‘(A) standards to measure aircraft noise and

19 sonic boom;

20 ‘‘(B) regulations to control and abate aircraft

21 noise and sonic boom; and

22 ‘‘(C)(i) the Environmental Protection Agency

23 shall consult with the Federal Aviation Administra24 tion on aircraft engine emission standards;
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1 ‘‘(ii) the Environmental Protection Agency shall

2 not change the aircraft engine emission standards if

3 such change would significantly increase noise and

4 adversely affect safety;

5 ‘‘(iii) the Administrator, as the Administrator

6 deems appropriate, shall provide for the participation

7 of a representative of the Environmental Protection

8 Agency on such advisory committees or associated

9 working groups that advise the Administrator on

10 matters related to the environmental effects of aircraft

11 and aircraft engines.’’.

12 SEC. 632. RURAL AIR FARE STUDY.

13 (a) IN GENERAL.—The Secretary shall conduct a

14 study to—

15 (1) compare air fares paid (calculated as both

16 actual and adjusted air fares) for air transportation

17 on flights conducted by commercial air carriers—

18 (A) between—

19 (i) nonhub airports located in small

20 communities; and

21 (ii) large hub airports; and

22 (B) between large hub airports;

23 (2) analyze—
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1 (A) the extent to which passenger service

2 that is provided from nonhub airports is pro3 vided on—

4 (i) regional commuter commercial air

5 carriers; or

6 (ii) major air carriers;

7 (B) the type of aircraft employed in provid8 ing passenger service at nonhub airports; and

9 (C) whether there is competition among

10 commercial air carriers with respect to the pro11 vision of air service to passengers from nonhub

12 airports.

13 (b) FINDINGS.—The Secretary shall include in the re14 port of the study conducted under subsection (a) findings

15 concerning—

16 (1) whether passengers who use commercial air

17 carriers to and from rural areas (as defined by the

18 Secretary) pay a disproportionately greater price for

19 that transportation than passengers who use commer20 cial air carriers between urban areas (as defined by

21 the Secretary);

22 (2) the nature of competition, if any, in rural

23 markets (as defined by the Secretary) for commercial

24 air carriers;
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1 (3) whether a relationship exists between higher

2 air fares and competition among commercial air car3 riers for passengers traveling on jet aircraft from

4 small communities (as defined by the Secretary) and,

5 if such a relation exists, the nature of that relation6 ship;

7 (4) the number of small communities that have

8 lost air service as a result of the deregulation of com9 mercial air carriers with respect to air fares;

10 (5) the number of small communities served by

11 airports with respect to which, after commercial air

12 carrier fares were deregulated, jet aircraft service was

13 replaced by turboprop aircraft service; and

14 (6) where such replacement occurred, any cor15 responding decreases in available seat capacity for

16 consumers at the airports referred to in that subpara17 graph.

18 (c) REPORT.—Not later than 60 days after the date

19 of enactment of this Act, the Secretary shall submit a final

20 report on the study carried out under subsection (a) to the

21 Committee on Commerce, Science, and Transportation of

22 the Senate.

23 (d) DEFINITIONS.—For purposes of this section, the

24 following definitions shall apply:
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1 (1) ADJUSTED AIR FARE.—The term ‘‘adjusted

2 air fare’’ means an actual air fare that is adjusted

3 for distance traveled by a passenger.

4 (2) AIR CARRIER.—The term ‘‘air carrier’’ is de5 fined in section 40102(a)(2) of title 49, United States

6 Code.

7 (3) AIRPORT.—The term ‘‘airport’’ is defined in

8 section 40102(9) of such title.

9 (4) COMMERCIAL AIR CARRIER.—The term ‘‘com10 mercial air carrier’’ means an air carrier that pro11 vides air transportation for commercial purposes (as

12 determined by the Secretary).

13 (5) HUB AIRPORT.—The term ‘‘hub airport’’ is

14 defined in section 41731(a)(2) of such title.

15 (6) LARGE HUB AIRPORT.—The term ‘‘large hub

16 airport’’ shall be defined by the Secretary but the def17 inition may not include a small hub airport, as that

18 term is defined in section 41731(a)(5) of such title.

19 (7) MAJOR AIR CARRIER.—The term ‘‘major air

20 carrier’’ shall be defined by the Secretary.

21 (8) NONHUB AIRPORT.—The term ‘‘nonhub air22 port’’ is defined in section 41731(a)(4) of such title.

23 (9) REGIONAL COMMUTER AIR CARRIER.—The

24 term ‘‘regional commuter air carrier’’ shall be defined

25 by the Secretary.
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1 Subtitle B—Federal Aviation Ad2 ministration Streamlining Pro3 grams

4 SEC. 651. REVIEW OF ACQUISITION MANAGEMENT SYSTEM.

5 Not later than April 1, 1999, the Administration shall

6 employ outside experts to provide an independent evalua7 tion of the effectiveness of its acquisition management sys8 tem within 3 months after such date. The Administrator

9 shall transmit a copy of the evaluation to the Committee

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

11 and the Committee on Transportation and Infrastructure

12 of the House of Representatives.

13 SEC. 652. AIR TRAFFIC CONTROL MODERNIZATION RE14 VIEWS.

15 Chapter 401, as amended by section 402 of this Act,

16 is amended by redesignating section 40121 as 40123, and

17 by inserting after section 40120 the following new section:

18 ‘‘§ 40121. Air traffic control modernization reviews

19 ‘‘(a) REQUIRED TERMINATIONS OF ACQUISITIONS.—

20 The Administrator of the Federal Aviation Administration

21 (hereafter referred to in this section as the ‘Administrator’)

22 shall terminate any program initiated after the date of en23 actment of the Air Traffic Management System Perform24 ance Improvement Act of 1996 and funded under the Facili25 ties and Equipment account that—
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1 ‘‘(1) is more than 50 percent over the cost goal

2 established for the program;

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

4 performance goals established for the program; or

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

6 determined in accordance with the schedule goal es7 tablished for the program.

8 ‘‘(b) AUTHORIZED TERMINATIONS OF ACQUISI9 TIONS.—The Administrator shall consider terminating,

10 under the authority of subsection (a), any substantial ac11 quisition that—

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

13 established for the program;

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

15 performance goals established for the program; or

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

17 determined in accordance with the schedule goal es18 tablished for the program.

19 ‘‘(c) EXCEPTIONS AND REPORT.—

20 ‘‘(1) CONTINUANCE OF PROGRAM, ETC.—Not21 withstanding subsection (a), the Administrator may

22 continue an acquisitions program required to be ter23 minated under subsection (a) if the Administrator de24 termines that termination would be inconsistent with
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1 the development or operation of the national air

2 transportation system in a safe and efficient manner.

3 ‘‘(2) DEPARTMENT OF DEFENSE.—The Depart4 ment of Defense shall have the same exemptions from

5 acquisition laws as are waived by the Administrator

6 under section 348(b) of Public Law 104–50 when en7 gaged in joint actions to improve or replenish the na8 tional air traffic control system. The Administration

9 may acquire real property, goods, and services

10 through the Department of Defense, or other appro11 priate agencies, but is bound by the acquisition laws

12 and regulations governing those cases.

13 ‘‘(3) REPORT.—If the Administrator makes a de14 termination under paragraph (1), the Administrator

15 shall transmit a copy of the determination, together

16 with a statement of the basis for the determination,

17 to the Committees on Appropriations of the Senate

18 and the House of Representatives, the Committee on

19 Commerce, Science, and Transportation of the Senate,

20 and the Committee on Transportation and Infrastruc21 ture of the House of Representatives.’’.
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1 SEC. 653. FEDERAL AVIATION ADMINISTRATION PERSON2 NEL MANAGEMENT SYSTEM.

3 Chapter 401, as amended by section 652, is further

4 amended by inserting after section 40121 the following new

5 section:

6 ‘‘§ 40122. Federal Aviation Administration personnel

7 management system

8 ‘‘(a) IN GENERAL.—

9 ‘‘(1) CONSULTATION AND NEGOTIATION.—In de10 veloping and making changes to the personnel man11 agement system initially implemented by the Admin12 istrator on April 1, 1996, the Administrator shall ne13 gotiate with the exclusive bargaining representatives

14 of employees of the Administration certified under

15 section 7111 of title 5 and consult with other employ16 ees of the Administration.

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

18 reach an agreement under paragraph (1) with the ex19 clusive bargaining representatives, the services of the

20 Federal Mediation and Conciliation Service shall be

21 used to attempt to reach such agreement. If the serv22 ices of the Federal Mediation and Conciliation Serv23 ice do not lead to an agreement, the Administrator’s

24 proposed change to the personnel management system

25 shall not take effect until 60 days have elapsed after

26 the Administrator has transmitted the proposed
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1 change, along with the objections of the exclusive bar2 gaining representatives to the change, and the reasons

3 for such objections, to the Congress.

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

5 The Administration and the exclusive bargaining rep6 resentatives of the employees shall use every reason7 able effort to find cost savings and to increase produc8 tivity within each of the affected bargaining units.

9 ‘‘(4) ANNUAL BUDGET DISCUSSIONS.—The Ad10 ministration and the exclusive bargaining representa11 tives of the employees shall meet annually for the pur12 pose of finding additional cost savings within the Ad13 ministration’s annual budget as it applies to each of

14 the affected bargaining units and throughout the

15 agency.

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

17 years after the personnel management system is imple18 mented, the Administration shall employ outside experts to

19 provide an independent evaluation of the effectiveness of the

20 system within 3 months after such date. For this purpose,

21 the Administrator may utilize the services of experts and

22 consultants under section 3109 of title 5 without regard to

23 the limitation imposed by the last sentence of section

24 3109(b) of such title, and may contract on a sole source
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1 basis, notwithstanding any other provision of law to the

2 contrary.

3 ‘‘(c) PAY RESTRICTION.—No officer or employee of the

4 Administration may receive an annual rate of basic pay

5 in excess of the annual rate of basic pay payable to the

6 Administrator.

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

8 Executive Order No. 12674 and regulations and opinions

9 promulgated by the Office of Government Ethics, including

10 those set forth in section 2635 of title 5 of the Code of Fed11 eral Regulations.

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

13 basic wages (including locality pay) and operational dif14 ferential pay provided employees of the Administration

15 shall not be involuntarily adversely affected by reason of

16 the enactment of this section, except for unacceptable per17 formance or by reason of a reduction in force or reorganiza18 tion or by agreement between the Administration and the

19 affected employees’ exclusive bargaining representative.

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

21 otherwise provided by this title, all labor-management

22 agreements covering employees of the Administration that

23 are in effect on the effective date of the Air Traffic Manage24 ment System Performance Improvement Act of 1996 shall

25 remain in effect until their normal expiration date, unless
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1 the Administrator and the exclusive bargaining representa2 tive agree to the contrary.’’.

3 SEC. 654. CONFORMING AMENDMENT.

4 The chapter analysis for chapter 401, as amended by

5 section 403(b) of this Act, is amended by striking the item

6 relating to section 40120 and inserting the following new

7 items:

‘‘40121. Air traffic control modernization reviews.

‘‘40122. Federal Aviation Administration personnel management system.

‘‘40123. Relationship to other laws.’’.

8 Subtitle C—System To Fund Cer9 tain Federal Aviation Adminis10 tration Functions

11 SEC. 671. FINDINGS.

12 The Congress finds the following:

13 (1) The Administration is recognized throughout

14 the world as a leader in aviation safety.

15 (2) The Administration certifies aircraft, en16 gines, propellers, and other manufactured parts.

17 (3) The Administration certifies more than 650

18 training schools for pilots and nonpilots, more than

19 4,858 repair stations, and more than 193 mainte20 nance schools.

21 (4) The Administration certifies pilot examiners,

22 who are then qualified to determine if a person has

23 the skills necessary to become a pilot.
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1 (5) The Administration certifies more than 6,000

2 medical examiners, each of whom is then qualified to

3 medically certify the qualifications of pilots and non4 pilots.

5 (6) The Administration certifies more than 470

6 airports, and provides a limited certification for an7 other 205 airports. Other airports in the United

8 States are also reviewed by the Administration.

9 (7) The Administration each year performs more

10 than 355,000 inspections.

11 (8) The Administration issues more than

12 655,000 pilot’s licenses and more than 560,000 non13 pilot’s licenses (including mechanics).

14 (9) The Administration’s certification means

15 that the product meets worldwide recognized stand16 ards of safety and reliability.

17 (10) The Administration’s certification means

18 aviation-related equipment and services meet world19 wide recognized standards.

20 (11) The Administration’s certification is recog21 nized by governments and businesses throughout the

22 world and as such may be a valuable element for any

23 company desiring to sell aviation-related products

24 throughout the world.
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1 (12) The Administration’s certification may con2 stitute a valuable license, franchise, privilege or bene3 fits for the holders.

4 (13) The Administration also is a major pur5 chaser of computers, radars, and other systems needed

6 to run the air traffic control system. The Administra7 tion’s design, acceptance, commissioning, or certifi8 cation of such equipment enables the private sector to

9 market those products around the world, and as such

10 confers a benefit on the manufacturer.

11 (14) The Administration provides extensive serv12 ices to public use aircraft.

13 SEC. 672. PURPOSES.

14 The purposes of this title are—

15 (1) to provide a financial structure for the Ad16 ministration so that it will be able to support the fu17 ture growth in the national aviation and airport sys18 tem;

19 (2) to review existing and alternative funding

20 options, including incentive-based fees for services,

21 and establish a program to improve air traffic man22 agement system performance and to establish appro23 priate levels of cost accountability for air traffic man24 agement services provided by the Administration;
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1 (3) to ensure that any funding will be dedicated

2 solely for the use of the Administration;

3 (4) to authorize the Administration to recover

4 the costs of its services from those who benefit from,

5 but do not contribute to, the national aviation system

6 and the services provided by the Administration;

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

8 value of the services provided and other funding alter9 natives;

10 (6) to develop funding options for the Congress

11 in order to provide for the long-term efficient and

12 cost-effective support of the Administration and the

13 aviation system; and

14 (7) to achieve a more efficient and effective Ad15 ministration for the benefit of the aviation transpor16 tation industry.

17 SEC. 673. USER FEES FOR VARIOUS FEDERAL AVIATION AD18 MINISTRATION SERVICES.

19 (a) IN GENERAL.—Chapter 453 is amended by strik20 ing section 45301 and inserting the following new section:

21 ‘‘§ 45301. General provisions

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

23 establish a schedule of new fees, and a collection process for

24 such fees, for the following services provided by the Admin25 istration:
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1 ‘‘(1) Air traffic control and related services pro2 vided to aircraft other than military and civilian air3 craft of the United States government or of a foreign

4 government that neither take off from, nor land in,

5 the United States.

6 ‘‘(2) Services (other than air traffic control serv7 ices) provided to a foreign government.

8 ‘‘(b) LIMITATIONS.—

9 ‘‘(1) AUTHORIZATION AND IMPACT CONSIDER10 ATIONS.—In establishing fees under subsection (a), the

11 Administrator—

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

13 1997 $100,000,000; and

14 ‘‘(B) shall ensure that each of the fees re15 quired by subsection (a) is directly related to the

16 Administration’s costs of providing the service

17 rendered. Services for which costs may be recov18 ered include the costs of air traffic control, navi19 gation, weather services, training and emergency

20 services which are available to facilitate safe

21 transportation over the United States, and other

22 services provided by the Administrator or by

23 programs financed by the Administrator to

24 flights that neither take off nor land in the Unit25 ed States.
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1 ‘‘(2) PUBLICATION; COMMENT.—The Adminis2 trator shall publish in the Federal Register an initial

3 fee schedule and associated collection process as an in4 terim final rule, pursuant to which public comment

5 will be sought and a final rule issued.

6 ‘‘(c) USE OF EXPERTS AND CONSULTANTS.—In devel7 oping the system, the Administrator may consult with such

8 nongovernmental experts as the Administrator may employ

9 and the Administrator may utilize the services of experts

10 and consultants under section 3109 of title 5 without regard

11 to the limitation imposed by the last sentence of section

12 3109(b) of such title, and may contract on a sole source

13 basis, notwithstanding any other provision of law to the

14 contrary. Notwithstanding any other provision of law to the

15 contrary, the Administrator may retain such experts under

16 a contract awarded on a basis other than a competitive

17 basis and without regard to any such provisions requiring

18 competitive bidding or precluding sole source contract au19 thority.’’.

20 (b) CONFORMING AMENDMENT.—The chapter analysis

21 for chapter 453 is amended by striking the item relating

22 to section 45301 and inserting the following new item:

‘‘45301. General provisions.’’.

23 (c) REPEAL.—

24 (1) IN GENERAL.—Section 70118 is repealed.
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1 (2) CONFORMING AMENDMENT.—The chapter

2 analysis for chapter 701 is amended by striking the

3 item relating to section 70118.

4 SEC. 674. INDEPENDENT ASSESSMENT AND TASK FORCE TO

5 REVIEW EXISTING AND INNOVATIVE FUND6 ING MECHANISMS.

7 (a) INDEPENDENT ASSESSMENT.—

8 (1) INITIATION.—As soon as all members of the

9 task force are appointed under subsection (b) of this

10 section, the Administrator shall contract with an en11 tity independent of the Administration and the De12 partment of Transportation to conduct a complete

13 independent assessment of the financial requirements

14 of the Administration through the year 2002.

15 (2) ASSESSMENT CRITERIA.—The Administrator

16 shall provide to the independent entity estimates of

17 the financial requirements of the Administration for

18 the period described in paragraph (1), using as a base

19 the fiscal year 1997 authorization levels established by

20 the Congress. The independent assessment shall be

21 based on an objective analysis of agency funding

22 needs.

23 (3) CERTAIN FACTORS TO BE TAKEN INTO AC24 COUNT.—The independent assessment shall take into

25 account all relevant factors, including—
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1 (A) anticipated air traffic forecasts;

2 (B) other workload measures;

3 (C) estimated productivity gains, if any,

4 which contribute to budgetary requirements;

5 (D) the need for programs; and

6 (E) the need to provide for continued im7 provements in all facets of aviation safety, along

8 with operational improvements in air traffic

9 control.

10 (4) COST ALLOCATION.—The independent assess11 ment shall also assess the costs to the Administration

12 occasioned by the provision of services to each segment

13 of the aviation system.

14 (5) DEADLINE.—The independent assessment

15 shall be completed no later than 90 days after the

16 contract is awarded, and shall be submitted to the

17 task force, the Secretary, the Secretary of the Treas18 ury, the Committee on Commerce, Science, and

19 Transportation and the Committee on Finance of the

20 Senate, and the Committee on Transportation and

21 Infrastructure and the Committee on Ways and

22 Means of the House of Representatives.

23 (b) TASK FORCE.—

24 (1) ESTABLISHMENT.—Not later than 30 days

25 after the date of enactment of this Act, the Secretary,
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1 in consultation with the Secretary of the Treasury,

2 shall establish an 11-member task force, independent

3 of the Administration and the Department of Trans4 portation.

5 (2) MEMBERSHIP.—The members of the task

6 force shall be selected from among individuals who

7 have expertise in the aviation industry and who are

8 able, collectively, to represent a balanced view of the

9 issues important to general aviation, major air car10 riers, air cargo carriers, regional air carriers, busi11 ness aviation, airports, aircraft manufacturers, the fi12 nancial community, aviation industry workers, and

13 airline passengers. At least one member of the task

14 force shall have detailed knowledge of the congres15 sional budgetary process.

16 (3) HEARINGS AND CONSULTATION.—

17 (A) HEARINGS.—The task force shall take

18 such testimony and solicit and receive such com19 ments from the public and other interested par20 ties as it considers appropriate, shall conduct 2

21 public hearings after affording adequate notice to

22 the public thereof, and is authorized to conduct

23 such additional hearings as may be necessary.

24 (B) CONSULTATION.—The task force shall

25 consult on a regular and frequent basis with the
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1 Secretary of Transportation, the Secretary of the

2 Treasury, the Committee on Commerce, Science,

3 and Transportation and the Committee on Fi4 nance of the Senate, and the Committee on

5 Transportation and Infrastructure and the Com6 mittee on Ways and Means of the House of Rep7 resentatives.

8 (C) FACA NOT TO APPLY.—The task force

9 shall not be considered an advisory committee for

10 purposes of the Federal Advisory Committee Act

11 (5 U.S.C. App.).

12 (4) DUTIES.—

13 (A) REPORT TO SECRETARY.—

14 (i) IN GENERAL.—The task force shall

15 submit a report setting forth a comprehen16 sive analysis of the Administration’s budg17 etary requirements through fiscal year 2002,

18 based upon the independent assessment

19 under subsection (a), that analyzes alter20 native financing and funding means for

21 meeting the needs of the aviation system

22 through the year 2002. The task force shall

23 submit a preliminary report of that analy24 sis to the Secretary not later than 6 months

25 after the independent assessment is com-
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1 pleted under subsection (a). The Secretary

2 shall provide comments on the preliminary

3 report to the task force within 30 days after

4 receiving it. The task force shall issue a

5 final report of such comprehensive analysis

6 within 30 days after receiving the Sec7 retary’s comments on its preliminary re8 port.

9 (ii) CONTENTS.—The report submitted

10 by the task force under clause (i)—

11 (I) shall consider the independent

12 assessment under subsection (a);

13 (II) shall consider estimated cost

14 savings, if any, resulting from the pro15 curement and personnel reforms in16 cluded in this Act or in sections 347

17 and 348 of Public Law 104–50, and

18 additional financial initiatives;

19 (III) shall include specific rec20 ommendations to the Congress on how

21 the Administration can reduce costs,

22 raise additional revenue for the sup23 port of agency operations, and acceler24 ate modernization efforts; and
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1 (IV) shall include a draft bill con2 taining the changes in law necessary to

3 implement its recommendations.

4 (B) RECOMMENDATIONS.—The task force

5 shall make such recommendations under sub6 paragraph (A)(III) as the task force deems ap7 propriate. Those recommendations may in8 clude—

9 (i) alternative financing and funding

10 proposals, including linked financing pro11 posals;

12 (ii) modifications to existing levels of

13 Airport and Airways Trust Fund receipts

14 and taxes for each type of tax;

15 (iii) establishment of a cost-based user

16 fee system based on, but not limited to, cri17 teria under subparagraph (F) and methods

18 to ensure that costs are borne by users on a

19 fair and equitable basis;

20 (iv) methods to ensure that funds col21 lected from the aviation community are able

22 to meet the needs of the agency;

23 (v) methods to ensure that funds col24 lected from the aviation community and
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1 passengers are used to support the aviation

2 system;

3 (vi) means of meeting the airport in4 frastructure needs for large, medium, and

5 small airports; and

6 (vii) any other matter the task force

7 deems appropriate to address the funding

8 and needs of the Administration and the

9 aviation system.

10 (C) ADDITIONAL RECOMMENDATIONS.—The

11 task force report may also make recommenda12 tions concerning—

13 (i) means of improving productivity by

14 expanding and accelerating the use of auto15 mation and other technology;

16 (ii) means of contracting out services

17 consistent with this Act, other applicable

18 law, and safety and national defense needs;

19 (iii) methods to accelerate air traffic

20 control modernization and improvements in

21 aviation safety and safety services;

22 (iv) the elimination of unneeded pro23 grams; and

24 (v) a limited innovative program based

25 on funding mechanisms such as loan guar-
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1 antees, financial partnerships with for-prof2 it private sector entities, government-spon3 sored enterprises, and revolving loan funds,

4 as a means of funding specific facilities and

5 equipment projects, and to provide limited

6 additional funding alternatives for airport

7 capacity development.

8 (D) IMPACT ASSESSMENT FOR REC9 OMMENDATIONS.—For each recommendation con10 tained in the task force’s report, the report shall

11 include a full analysis and assessment of the im12 pact implementation of the recommendation

13 would have on—

14 (i) safety;

15 (ii) administrative costs;

16 (iii) the congressional budget process;

17 (iv) the economics of the industry (in18 cluding the proportionate share of all users);

19 (v) the ability of the Administration to

20 utilize the sums collected; and

21 (vi) the funding needs of the Adminis22 tration.

23 (E) TRUST FUND TAX RECOMMENDA24 TIONS.—If the task force’s report includes a rec25 ommendation that the existing Airport and Air-
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1 ways Trust Fund tax structure be modified, the

2 report shall—

3 (i) state the specific rates for each

4 group affected by the proposed modifica5 tions;

6 (ii) consider the impact such modifica7 tions shall have on specific users and the

8 public (including passengers); and

9 (iii) state the basis for the rec10 ommendations.

11 (F) FEE SYSTEM RECOMMENDATIONS.—If

12 the task force’s report includes a recommendation

13 that a fee system be established, including an air

14 traffic control performance-based user fee system,

15 the report shall consider—

16 (i) the impact such a recommendation

17 would have on passengers, air fares (includ18 ing low-fare, high frequency service), serv19 ice, and competition;

20 (ii) existing contributions provided by

21 individual air carriers toward funding the

22 Administration and the air traffic control

23 system through contributions to the Airport

24 and Airways Trust Fund;
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1 (iii) continuing the promotion of fair

2 and competitive practices;

3 (iv) the unique circumstances associ4 ated with interisland air carrier service in

5 Hawaii and rural air service in Alaska;

6 (v) the impact such a recommendation

7 would have on service to small communities;

8 (vi) the impact such a recommendation

9 would have on services provided by regional

10 air carriers;

11 (vii) alternative methodologies for cal12 culating fees so as to achieve a fair and rea13 sonable distribution of costs of service

14 among users;

15 (viii) the usefulness of phased-in ap16 proaches to implementing such a financing

17 system;

18 (ix) means of assuring the provision of

19 general fund contributions, as appropriate,

20 toward the support of the Administration;

21 and

22 (x) the provision of incentives to en23 courage greater efficiency in the provision

24 of air traffic services by the Administration
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1 and greater efficiency in the use of air traf2 fic services by aircraft operators.

3 (G) ACCESS TO DOCUMENTS AND STAFF.—

4 The Administration may give the task force ap5 propriate access to relevant documents and per6 sonnel of the Administration, and the Adminis7 trator shall make available, consistent with the

8 authority to withhold commercial and other pro9 prietary information under section 552 of title 5,

10 United States Code (commonly known as the

11 ‘Freedom of Information Act’) cost data associ12 ated with the acquisition and operation of air

13 traffic service systems. Any member of the task

14 force who receives commercial or other propri15 etary data from the Administrator shall be sub16 ject to the provisions of section 1905 of title 18,

17 United States Code, pertaining to unauthorized

18 disclosure of such information.

19 (H) TRAVEL AND PER DIEM.—Each member

20 of the task force shall be paid actual travel ex21 penses, and per diem in lieu of subsistence ex22 penses when away from his or her usual place of

23 residence, in accordance with section 5703 of

24 title 5, United States Code.
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1 (I) DETAIL OF PERSONNEL FROM THE AD2 MINISTRATION.—The Administrator shall make

3 available to the task force such staff, informa4 tion, and administrative services and assistance

5 as may reasonably be required to enable the task

6 force to carry out its responsibilities under this

7 subsection.

8 (5) AUTHORIZATION OF APPROPRIATIONS.—

9 There are hereby authorized to be appropriated such

10 sums as may be necessary to carry out the provisions

11 of this subsection.

12 (c) REPORT BY SECRETARY TO CONGRESS.—

13 (1) CONSIDERATION OF TASK FORCE’S PRELIMI14 NARY REPORT.—Within 30 days after receiving the

15 preliminary report of the task force under subsection

16 (b), the Secretary, in consultation with the Secretary

17 of the Treasury, shall furnish comments on that re18 port to the task force.

19 (2) SECRETARY’S REPORT TO CONGRESS.—With20 in 30 days after receiving the final report of the task

21 force and in no event more than 1 year after the date

22 of enactment of this Act, the Secretary, after consult23 ing the Secretary of the Treasury, shall submit a re24 port, based upon the final report of the task force,

25 containing the Secretary’s recommendations for fund-
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1 ing the needs of the aviation system through the year

2 2002 to the Committee on Commerce, Science, and

3 Transportation and the Committee on Finance of the

4 Senate and the Committee on Transportation and In5 frastructure and the Committee on Ways and means

6 of the House of Representatives.

7 (3) CONTENTS.—The Secretary shall include in

8 his report to the Congress under paragraph (2)—

9 (A) a copy of the final report of the task

10 force; and

11 (B) a draft bill containing the changes in

12 law necessary to implement the Secretary’s rec13 ommendations.

14 (4) PUBLICATION.—The Secretary shall cause a

15 copy of the reports to be printed in the Federal Reg16 ister upon their submission to Congress.

17 (d) GAO AUDIT OF COST ALLOCATION.—The Comp18 troller General shall conduct an assessment of the manner

19 in which costs for air traffic control services are allocated

20 between the Administration and the Department of Defense.

21 The Comptroller General shall report the results of the as22 sessment, together with any recommendations the Comptrol23 ler General may have for reallocation of costs and for oppor24 tunities to increase the efficiency of air traffic control serv25 ices provided by the Administration and by the Department
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1 of Defense, to the task force, the Administrator, the Sec2 retary of Defense, the Committee on Transportation and

3 Infrastructuree of the House of Representatives, and the

4 Committee on Commerce, Science, and Transportation of

5 the Senate not later than 120 days after the date of enact6 ment of this Act.

7 SEC. 675. PROCEDURE FOR CONSIDERATION OF CERTAIN

8 FUNDING PROPOSALS.

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

10 at the end thereof the following:

11 ‘‘§ 48111. Funding proposals

12 ‘‘(a) INTRODUCTION AND REFERRAL.—Within 15 days

13 (not counting any day on which either House is not in ses14 sion) after a funding proposal is submitted to the House

15 of Representatives and the Senate by the Secretary of

16 Transportation under section 674(c) of the Air Traffic

17 Management System Performance Improvement Act of

18 1996, an implementing bill with respect to such funding

19 proposal shall be introduced in the House by the Majority

20 Leader of the House, for himself and the Minority Leader

21 of the House, or by Members of the House designated by

22 the Majority Leader and Minority Leader of the House; and

23 shall be introduced in the Senate by the Majority Leader

24 of the Senate, for himself and the Minority Leader of the

25 Senate, or by Members of the Senate designated by the Ma-
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1 jority Leader and Minority Leader of the Senate. The im2 plementing bill shall be referred by the Presiding Officers

3 of the respective Houses to the appropriate committee, or,

4 in the case of a bill containing provisions within the juris5 diction of two or more committees, jointly to such commit6 tees for consideration of those provisions within their re7 spective jurisdictions.

8 ‘‘(b) CONSIDERATION IN THE HOUSE OF REPRESENTA9 TIVES.—

10 ‘‘(1) REFERRAL AND REPORTING.—Any commit11 tee of the House of Representatives to which an imple12 menting bill is referred shall report it, with or with13 out recommendation, not later than the 45th calendar

14 day of session after the date of its introduction. If

15 any committee fails to report the bill within that pe16 riod, it is in order to move that the House discharge

17 the committee from further consideration of the bill.

18 A motion to discharge may be made only by a Mem19 ber favoring the bill (but only at a time or place des20 ignated by the Speaker in the legislative schedule of

21 the day after the calendar day on which the Member

22 offering the motion announces to the House his inten23 tion to do so and the form of the motion). The motion

24 is highly privileged. Debate thereon shall be limited to

25 not more than one hour, the time to be divided in the
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1 House equally between a proponent and an opponent.

2 The previous question shall be considered as ordered

3 on the motion to its adoption without intervening mo4 tion. A motion to reconsider the vote by which the

5 motion is agreed to or disagreed to shall not be in

6 order.

7 ‘‘(2) CONSIDERATION OF IMPLEMENTING BILL.—

8 After an implementing bill is reported or a committee

9 has been discharged from further consideration, it is

10 in order to move that the House resolve into the Com11 mittee of the Whole House on the State of the Union

12 for consideration of the bill. If reported and the report

13 has been available for at least one calendar day, all

14 points of order against the bill and against consider15 ation of the bill are waived. If discharged, all points

16 of order against the bill and against consideration of

17 the bill are waived. The motion is highly privileged.

18 A motion to reconsider the vote by which the motion

19 is agreed to or disagreed to shall not be in order. Dur20 ing consideration of the bill in the Committee of the

21 Whole, the first reading of the bill shall be dispensed

22 with. General debate shall proceed, shall be confined

23 to the bill, and shall not exceed one hour equally di24 vided and controlled by a proponent and an opponent

25 of the bill. The bill shall be considered as read for
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1 amendment under the five-minute rule. Only one mo2 tion to rise shall be in order, except if offered by the

3 manager. No amendment to the bill is in order except

4 an amendment that is relevant to aviation funding

5 and the Federal Aviation Administration. Consider6 ation of the bill for amendment shall not exceed one

7 hour excluding time for recorded votes and quorum

8 calls. No amendment shall be subject to further

9 amendment, except pro forma amendments for the

10 purposes of debate only. At the conclusion of the con11 sideration of the bill for amendment, the Committee

12 shall rise and report the bill to the House with such

13 amendments as may have been adopted. The previous

14 question shall be considered as ordered on the bill and

15 amendments thereto to final passage without interven16 ing motion. A motion to reconsider the vote on pas17 sage of the bill shall not be in order.

18 ‘‘(3) APPEALS OF RULINGS.—Appeals from deci19 sion of the Chair regarding application of the rules

20 of the House of Representatives to the procedure relat21 ing to an implementing bill shall be decided without

22 debate.

23 ‘‘(4) CONSIDERATION OF MORE THAN ONE IM24 PLEMENTING BILL.—It shall not be in order to con25 sider under this subsection more than one implement-
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1 ing bill under this section, except for consideration of

2 a similar Senate bill (unless the House has already

3 rejected an implementing bill) or more than one mo4 tion to discharge described in paragraph (1) with re5 spect to an implementing bill.

6 ‘‘(c) CONSIDERATION IN THE SENATE.—An imple7 menting bill introduced in the Senate shall be referred to

8 the Committee on Commerce, Science, and Transportation.

9 The Committee on Commerce, Science, and Transportation

10 shall report the bill with its recommendations within 60

11 days following the date of introduction of that bill. Upon

12 the reporting of the bill by the Committee on Commerce,

13 Science, and Transportation, the reported bill shall be re14 ferred sequentially to the Committee on Finance for a pe15 riod of 60 legislative days.

16 ‘‘(d) CONSIDERATION IN CONFERENCE.—

17 ‘‘(1) CONVENING OF CONFERENCE.—In the case

18 of disagreement between the two Houses of Congress

19 with respect to an implementing bill passed by both

20 Houses, conferees should be promptly appointed and

21 a conference promptly convened, if necessary.

22 ‘‘(2) HOUSE CONSIDERATION.—Notwithstanding

23 any other rule of the House of Representatives, it

24 shall be in order to consider the report of a committee

25 of conference relating to an implementing bill if such
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1 report has been available for one calendar day (ex2 cluding Saturdays, Sundays, and legal holidays, un3 less the House is in session on such a day) and the

4 accompanying statement shall have been filed in the

5 House.

6 ‘‘(e) DEFINITIONS.—For purposes of this section—

7 ‘‘(1) IMPLEMENTING BILL.—The term ‘imple8 menting bill’ means only a bill of either House of

9 Congress which is introduced as provided in sub10 section (a) with respect to one or more Federal Avia11 tion Administration funding proposals which contain

12 changes in existing laws or new statutory authority

13 required to implement such funding proposal or pro14 posals.

15 ‘‘(2) FUNDING PROPOSAL.—The term ‘funding

16 proposal’ means a proposal to provide interim or per17 manent funding for operations of the Federal Avia18 tion Administration.

19 ‘‘(f) RULES OF HOUSE OF REPRESENTATIVES AND

20 SENATE.—This section is enacted by the Congress—

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

22 the House of Representatives and the Senate, respec23 tively, and as such they are deemed a part of the rules

24 of each House, respectively, but applicable only with

25 respect to the procedure to be followed in that House
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1 in the case of implementing bills described in sub2 section (d); and they supersede other rules only to the

3 extent that they are inconsistent therewith; and

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

5 right of either House to change the rules (so far as re6 lating to the procedure of that House) at any time,

7 in the same manner and to the same extent as in the

8 case of any other rule of that House.’’.

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

10 chapter 481 is amended by adding at the end thereof the

11 following:

‘‘48111. Funding proposals.’’.

12 SEC. 676. ADMINISTRATIVE PROVISIONS.

13 (a) IN GENERAL.—Chapter 453, as amended by sec14 tion 654 of this title, is further amended by—

15 (1) redesignating section 45303 as section 45304;

16 and

17 (2) by inserting after section 45302 the follow18 ing:

19 ‘‘§ 45303. Administrative provisions

20 ‘‘(a) IN GENERAL.—

21 ‘‘(1) FEES PAYABLE TO ADMINISTRATOR.—All

22 fees imposed and amounts collected under this chapter

23 for services performed, or materials furnished, by the

24 Federal Aviation Administration (hereafter in this
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1 section referred to as the ‘Administration’) are pay2 able to the Administrator.

3 ‘‘(2) REFUNDS.—The Administrator may refund

4 any fee paid by mistake or any amount paid in ex5 cess of that required.

6 ‘‘(3) RECEIPTS CREDITED TO ACCOUNT.—Not7 withstanding section 3302 of title 31 all fees and

8 amounts collected by the Administration, except in9 surance premiums and other fees charged for the pro10 vision of insurance and deposited in the Aviation In11 surance Revolving Fund and interest earned on in12 vestments of such Fund, and except amounts which on

13 the date of enactment of the Air Traffic Management

14 System Performance Improvement Act of 1996 are re15 quired to be credited to the general fund of the Treas16 ury (whether imposed under this section or not)—

17 ‘‘(A) shall be credited to a separate account

18 established in the Treasury and made available

19 for Administration activities;

20 ‘‘(B) shall be available immediately for ex21 penditure but only for congressionally authorized

22 and intended purposes; and

23 ‘‘(C) shall remain available until expended.

24 ‘‘(4) ANNUAL BUDGET REPORT BY ADMINIS25 TRATOR.—The Administrator shall, on the same day
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1 each year as the President submits the annual budget

2 to the Congress, provide to the Committee on Com3 merce, Science, and Transportation of the Senate and

4 the Committee on Transportation and Infrastructure

5 of the House of Representatives—

6 ‘‘(A) a list of fee collections by the Adminis7 tration during the preceding fiscal year;

8 ‘‘(B) a list of activities by the Administra9 tion during the preceding fiscal year that were

10 supported by fee expenditures and appropria11 tions;

12 ‘‘(C) budget plans for significant programs,

13 projects, and activities of the Administration, in14 cluding out-year funding estimates;

15 ‘‘(D) any proposed disposition of surplus

16 fees by the Administration; and

17 ‘‘(E) such other information as those com18 mittees consider necessary.

19 ‘‘(5) DEVELOPMENT OF COST ACCOUNTING SYS20 TEM.—The Administration shall develop a cost ac21 counting system that adequately and accurately re22 flects the investments, operating and overhead costs,

23 revenues, and other financial measurement and re24 porting aspects of its operations.
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1 ‘‘(6) COMPENSATION TO CARRIERS FOR ACTING

2 AS COLLECTION AGENTS.—The Administration shall

3 prescribe regulations to ensure that any air carrier

4 required, pursuant to the Air Traffic Management

5 System Performance Improvement Act of 1996 or any

6 amendments made by that Act, to collect a fee im7 posed on another party by the Administrator may

8 collect from such other party an additional uniform

9 amount that the Administrator determines reflects the

10 necessary and reasonable expenses (net of interest ac11 cruing to the carrier after collection and before remit12 tance) incurred in collecting and handling the fee.

13 ‘‘(7) COST REDUCTION AND EFFICIENCY RE14 PORT.—Prior to the submission of any proposal for

15 establishment, implementation, or expansion of any

16 fees or taxes imposed on the aviation industry, the

17 Administrator shall prepare a report for submission

18 to the Congress which includes—

19 ‘‘(A) a justification of the need for the pro20 posed fees or taxes;

21 ‘‘(B) a statement of steps taken by the Ad22 ministrator to reduce costs and improve effi23 ciency within the Administration;
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1 ‘‘(C) an analysis of the impact of any fee

2 or tax increase on each sector of the aviation

3 transportation industry; and

4 ‘‘(D) a comparative analysis of any de5 crease in tax amounts equal to the receipts from

6 which are credited to the Airport and Airway

7 Trust Fund established under section 9502 of the

8 Internal Revenue Code of 1986.’’.

9 (b) CONFORMING AMENDMENT.—The chapter analysis

10 for chapter 453 is amended by striking the item relating

11 to section 45303 and inserting the following:

‘‘45303. Administrative provisions.

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

12 SEC. 677. ADVANCE APPROPRIATIONS FOR AIRPORT AND

13 AIRWAY TRUST FUND ACTIVITIES.

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

15 by adding at the end the following new chapter:

16 ‘‘CHAPTER 482—ADVANCE APPROPRIA17 TIONS FOR AIRPORT AND AIRWAY

18 TRUST FACILITIES

‘‘Sec.

‘‘48201. Advance appropriations.

19 ‘‘§ 48201. Advance appropriations

20 ‘‘(a) MULTIYEAR AUTHORIZATIONS.—Beginning with

21 fiscal year 1998, any authorization of appropriations for

22 an activity for which amounts are to be appropriated from

23 the Airport and Airway Trust Fund established under sec-
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1 tion 9502 of the Internal Revenue Code of 1986 shall pro2 vide funds for a period of not less than 3 fiscal years unless

3 the activity for which appropriations are authorized is to

4 be concluded before the end of that period.

5 ‘‘(b) MULTIYEAR APPROPRIATIONS.—Beginning with

6 fiscal year 1998, amounts appropriated from the Airport

7 and Airway Trust Fund shall be appropriated for periods

8 of 3 fiscal years rather than annually.’’.

9 (b) CONFORMING AMENDMENT.—The analysis for sub10 title VIII is amended by adding at the end the following

11 new item:

‘‘482. Advance appropriations for airport and airway

trust facilities ..............................................................48201.’’.

12 SEC. 678. RURAL AIR SERVICE SURVIVAL ACT.

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

14 ‘‘Rural Air Service Survival Act’’.

15 (b) FINDINGS.—The Congress finds that—

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

17 national transportation network;

18 (2) the rural air service infrastructure supports

19 the safe operation of all air travel;

20 (3) rural air service creates economic benefits for

21 all air carriers by making the national aviation sys22 tem available to passengers from rural areas;

23 (4) rural air service has suffered since deregula24 tion;
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1 (5) the essential air service program under the

2 Department of Transportation—

3 (A) provides essential airline access to rural

4 and isolated rural communities throughout the

5 Nation;

6 (B) is necessary for the economic growth

7 and development of rural communities;

8 (C) is a critical component of the national

9 transportation system of the United States; and

10 (D) has endured serious funding cuts in re11 cent years; and

12 (6) a reliable source of funding must be estab13 lished to maintain air service in rural areas and the

14 essential air service program.

15 (c) ESSENTIAL AIR SERVICE AUTHORIZATION.—Sec16 tion 41742 is amended to read as follows:

17 ‘‘§ 41742. Essential air service authorization

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

19 the Administration credited to the account established

20 under section 45303(a)(3) or otherwise provided to the Ad21 ministration, the sum of $50,000,000 is authorized and

22 shall be made available immediately for obligation and ex23 penditure to carry out the essential air service program

24 under this subchapter for each fiscal year.
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1 ‘‘(b) FUNDING FOR SMALL COMMUNITY AIR SERV2 ICE.—Notwithstanding any other provision of law, moneys

3 credited to the account established under section 45303(a),

4 including the funds derived from fees imposed under the au5 thority contained in section 45301(a), shall be used to carry

6 out the essential air service program under this subchapter.

7 Notwithstanding section 47114(g) of this title, any amounts

8 from those fees that are not obligated or expended at the

9 end of the fiscal year for the purpose of funding the essential

10 air service program under this subchapter shall be made

11 available to the Administration for use in improving rural

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

13 and shall be used exclusively for projects at rural airports

14 under this subchapter.’’.

15 (d) CONFORMING AMENDMENT.—The chapter analysis

16 for chapter 417 is amended by striking the item relating

17 to section 41742 and inserting the following:

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

18 (e) SECRETARY MAY REQUIRE MATCHING LOCAL

19 FUNDS.—Section 41737 is amended by adding at the end

20 thereof the following:

21 ‘‘(e) MATCHING FUNDS.—No earlier than 2 years after

22 the effective date of section 679 of the Air Traffic Manage23 ment System Performance Improvement Act of 1996, the

24 Secretary may require an eligible agency, as defined in sec25 tion 40117(a)(2) of this title, to provide matching funds of
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1 up to 10 percent for any payments it receives under this

2 subchapter.’’.

3 (f) TRANSFER OF ESSENTIAL AIR SERVICE PROGRAM

4 TO FAA.—The responsibility for administration of sub5 chapter II of chapter 417 is transferred from the Secretary

6 of Transportation to the Administrator.

7 TITLE VII—PILOT RECORDS

8 SEC. 701. SHORT TITLE.

9 This title may be cited as the ‘‘Pilot Records Improve10 ment Act of 1996’’.

11 SEC. 702. EMPLOYMENT INVESTIGATIONS OF PILOT APPLI12 CANTS.

13 (a) IN GENERAL.—Section 44936 is amended by add14 ing at the end the following new subsection:

15 ‘‘(f) RECORDS OF EMPLOYMENT OF PILOT APPLI16 CANTS.—

17 ‘‘(1) IN GENERAL.—Before hiring an individual

18 as a pilot, an air carrier shall request and receive the

19 following information:

20 ‘‘(A) FAA RECORDS.—From the Adminis21 trator of the Federal Aviation Administration

22 (hereafter in this subsection referred to as the

23 ‘Administrator’), records pertaining to the indi24 vidual that are maintained by the Administrator

25 concerning—
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1 ‘‘(i) current airman certificates (in2 cluding airman medical certificates) and

3 associated type ratings, including any limi4 tations to those certificates and ratings; and

5 ‘‘(ii) summaries of legal enforcement

6 actions resulting in a finding by the Ad7 ministrator of a violation of this title or a

8 regulation prescribed or order issued under

9 this title that was not subsequently over10 turned.

11 ‘‘(B) AIR CARRIER AND OTHER RECORDS.—

12 From any air carrier or other person that has

13 employed the individual at any time during the

14 5-year period preceding the date of the employ15 ment application of the individual, or from the

16 trustee in bankruptcy for such air carrier or per17 son—

18 ‘‘(i) records pertaining to the individ19 ual that are maintained by an air carrier

20 under regulations set forth in—

21 ‘‘(I) section 121.683 of title 14,

22 Code of Federal Regulations;

23 ‘‘(II) paragraph (A) of section VI,

24 appendix I, part 121 of such title;
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1 ‘‘(III) paragraph (A) of section

2 IV, appendix J, part 121 of such title;

3 ‘‘(IV) section 125.401 of such title;

4 and

5 ‘‘(V) section 135.63(a)(4) of such

6 title; and

7 ‘‘(ii) other records pertaining to the in8 dividual that are maintained by the air

9 carrier or person concerning—

10 ‘‘(I) the training, qualifications,

11 proficiency, or professional competence

12 of the individual, including comments

13 and evaluations made by a check air14 man designated in accordance with

15 section 121.411, 125.295, or 135.337 of

16 such title;

17 ‘‘(II) any disciplinary action

18 taken with respect to the individual

19 that was not subsequently overturned;

20 and

21 ‘‘(III) any release from employ22 ment or resignation, termination, or

23 disqualification with respect to em24 ployment.
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1 ‘‘(C) NATIONAL DRIVER REGISTER

2 RECORDS.—In accordance with section

3 30305(b)(7), from the chief driver licensing offi4 cial of a State, information concerning the motor

5 vehicle driving record of the individual.

6 ‘‘(2) WRITTEN CONSENT; RELEASE FROM LIABIL7 ITY.—An air carrier making a request for records

8 under paragraph (1)—

9 ‘‘(A) shall be required to obtain written con10 sent to the release of those records from the indi11 vidual that is the subject of the records requested;

12 and

13 ‘‘(B) may, notwithstanding any other pro14 vision of law or agreement to the contrary, re15 quire the individual who is the subject of the

16 records to request to execute a release from liabil17 ity for any claim arising from the furnishing of

18 such records to or the use of such records by such

19 air carrier (other than a claim arising from fur20 nishing information known to be false and

21 maintained in violation of a criminal statute).

22 ‘‘(3) 5-YEAR REPORTING PERIOD.—A person

23 shall not furnish a record in response to a request

24 made under paragraph (1) if the record was entered

25 more than 5 years before the date of the request, un-
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1 less the information concerns a revocation or suspen2 sion of an airman certificate or motor vehicle license

3 that is in effect on the date of the request.

4 ‘‘(4) REQUIREMENT TO MAINTAIN RECORDS.—

5 The Administrator shall maintain pilot records de6 scribed in paragraph (1)(A) for a period of at least

7 5 years.

8 ‘‘(5) RECEIPT OF CONSENT; PROVISION OF IN9 FORMATION.—A person shall not furnish a record in

10 response to a request made under paragraph (1) with11 out first obtaining a copy of the written consent of the

12 individual who is the subject of the records requested.

13 A person who receives a request for records under this

14 paragraph shall furnish a copy of all of such re15 quested records maintained by the person not later

16 than 30 days after receiving the request.

17 ‘‘(6) RIGHT TO RECEIVE NOTICE AND COPY OF

18 ANY RECORD FURNISHED.—A person who receives a

19 request for records under paragraph (1) shall provide

20 to the individual who is the subject of the records—

21 ‘‘(A) written notice of the request and of the

22 right of that individual to receive a copy of such

23 records; and

24 ‘‘(B) a copy of such records, if requested by

25 the individual.
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1 ‘‘(7) REASONABLE CHARGES FOR PROCESSING

2 REQUESTS AND FURNISHING COPIES.—A person who

3 receives a request under paragraph (1) or (6) may es4 tablish a reasonable charge for the cost of processing

5 the request and furnishing copies of the requested

6 records.

7 ‘‘(8) STANDARD FORMS.—The Administrator

8 shall promulgate—

9 ‘‘(A) standard forms that may be used by

10 an air carrier to request records under para11 graph (1); and

12 ‘‘(B) standard forms that may be used by

13 an air carrier to—

14 ‘‘(i) obtain the written consent of the

15 individual who is the subject of a request

16 under paragraph (1); and

17 ‘‘(ii) inform the individual of—

18 ‘‘(I) the request; and

19 ‘‘(II) the individual right of that

20 individual to receive a copy of any

21 records furnished in response to the re22 quest.

23 ‘‘(9) RIGHT TO CORRECT INACCURACIES.—An

24 air carrier that maintains or requests and receives

25 the records of an individual under paragraph (1)
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1 shall provide the individual with a reasonable oppor2 tunity to submit written comments to correct any in3 accuracies contained in the records before making a

4 final hiring decision with respect to the individual.

5 ‘‘(10) RIGHT OF PILOT TO REVIEW CERTAIN

6 RECORDS.—Notwithstanding any other provision of

7 law or agreement, an air carrier shall, upon written

8 request from a pilot employed by such carrier, make

9 available, within a reasonable time of the request, to

10 the pilot for review, any and all employment records

11 referred to in paragraph (1)(B) (i) or (ii) pertaining

12 to the employment of the pilot.

13 ‘‘(11) PRIVACY PROTECTIONS.—An air carrier

14 that receives the records of an individual under para15 graph (1) may use such records only to assess the

16 qualifications of the individual in deciding whether

17 or not to hire the individual as a pilot. The air car18 rier shall take such actions as may be necessary to

19 protect the privacy of the pilot and the confidentiality

20 of the records, including ensuring that information

21 contained in the records is not divulged to any indi22 vidual that is not directly involved in the hiring deci23 sion.

24 ‘‘(12) PERIODIC REVIEW.—Not later than 18

25 months after the date of enactment of the Pilot
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1 Records Improvement Act of 1996, and at least once

2 every 3 years thereafter, the Administrator shall

3 transmit to the Congress a statement that contains,

4 taking into account recent developments in the avia5 tion industry—

6 ‘‘(A) recommendations by the Administrator

7 concerning proposed changes to Federal Aviation

8 Administration records, air carrier records, and

9 other records required to be furnished under sub10 paragraphs (A) and (B) of paragraph (1); or

11 ‘‘(B) reasons why the Administrator does

12 not recommend any proposed changes to the

13 records referred to in subparagraph (A).

14 ‘‘(13) REGULATIONS.—The Administrator may

15 prescribe such regulations as may be necessary—

16 ‘‘(A) to protect—

17 ‘‘(i) the personal privacy of any indi18 vidual whose records are requested under

19 paragraph (1); and

20 ‘‘(ii) the confidentiality of those

21 records;

22 ‘‘(B) to preclude the further dissemination

23 of records received under paragraph (1) by the

24 person who requested those records; and
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1 ‘‘(C) to ensure prompt compliance with any

2 request made under paragraph (1).

3 ‘‘(g) LIMITATION ON LIABILITY; PREEMPTION OF

4 STATE LAW.—

5 ‘‘(1) LIMITATION ON LIABILITY.—No action or

6 proceeding may be brought by or on behalf of an indi7 vidual who has applied for or is seeking a position

8 with an air carrier as a pilot and who has signed a

9 release from liability, as provided for under para10 graph (2), against—

11 ‘‘(A) the air carrier requesting the records

12 of that individual under subsection (a)(1);

13 ‘‘(B) a person who has complied with such

14 request; or

15 ‘‘(C) an agent or employee of a person de16 scribed in subparagraph (A) or (B);

17 in the nature of an action for defamation, invasion

18 of privacy, negligence, interference with contract, or

19 otherwise, or under any Federal or State law with re20 spect to the furnishing or use of such records in ac21 cordance with subsection (a).

22 ‘‘(2) PREEMPTION.—No State or political sub23 division thereof may enact, prescribe, issue, continue

24 in effect, or enforce any law (including any regula25 tion, standard, or other provision having the force
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1 and effect of law) that prohibits, penalizes, or imposes

2 liability for furnishing or using records in accordance

3 with subsection (a).

4 ‘‘(3) PROVISION OF KNOWINGLY FALSE INFORMA5 TION.—Paragraphs (1) and (2) shall not apply with

6 respect to a person who furnishes information in re7 sponse to a request made under subsection (f)(1),

8 that—

9 ‘‘(A) the person knows is false; and

10 ‘‘(B) was maintained in violation of a

11 criminal statute of the United States.’’.

12 (b) CONFORMING AMENDMENT.—Section 30305(b) is

13 amended—

14 (1) by redesignating paragraph (7) as para15 graph (8); and

16 (2) by inserting after paragraph (6) the follow17 ing:

18 ‘‘(7) An individual who is seeking employment

19 by an air carrier as a pilot may request the chief

20 driver licensing official of a State to provide informa21 tion about the individual under paragraph (2) to the

22 prospective employer of the individual or to the Sec23 retary of Transportation. Information may not be ob24 tained from the National Driver Register under this

25 subsection if the information was entered in the Reg-
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1 ister more than 5 years before the request unless the

2 information is about a revocation or suspension still

3 in effect on the date of the request.’’.

4 (c) APPLICABILITY.—The amendments made by this

5 section shall apply to any air carrier hiring an individual

6 as a pilot whose application was first received by the car7 rier on or after the 120th day after the date of enactment

8 of this Act.

9 SEC. 703. STUDY OF MINIMUM STANDARDS FOR PILOT

10 QUALIFICATIONS.

11 The Administrator shall appoint a task force consist12 ing of appropriate representatives of the aviation industry

13 to conduct a study directed toward the development of—

14 (1) standards and criteria for preemployment

15 screening tests measuring the psychomotor coordina16 tion, general intellectual capacity, instrument and

17 mechanical comprehension, and physical and mental

18 fitness of an applicant for employment as a pilot by

19 an air carrier; and

20 (2) standards and criteria for pilot training fa21 cilities to be licensed by the Administrator and which

22 will assure that pilots trained at such facilities meet

23 the preemployment screening standards and criteria

24 described in paragraph (1).
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1 TITLE VIII—ABOLITION OF

2 BOARD OF REVIEW

3 SEC. 801. ABOLITION OF BOARD OF REVIEW AND RELATED

4 AUTHORITY.

5 (a) ABOLITION OF BOARD OF REVIEW.—Section 6007

6 of the Metropolitan Washington Airports Act of 1986 (for7 merly 49 U.S.C. App. 2456) is amended—

8 (1) by striking subsections (f) and (h);

9 (2) by redesignating subsection (g) as subsection

10 (f); and

11 (3) by redesignating subsection (i) as subsection

12 (g).

13 (b) CONFORMING AMENDMENTS.—

14 (1) RELATIONSHIP TO AND EFFECT OF OTHER

15 LAWS.—Section 6009(b) of the Metropolitan Washing16 ton Airports Act of 1986 (formerly 49 U.S.C. App.

17 2458(b)) is amended by striking ‘‘or by reason of the

18 authority’’ and all that follows through the end of the

19 subsection and inserting a period.

20 (2) SEPARABILITY.—Section 6011 of the Metro21 politan Washington Airports Act of 1986 (formerly 49

22 U.S.C. App. 2460) is amended by striking ‘‘Except as

23 provided in section 6007(h), if’’ and inserting ‘‘If’’.

24 (c) PROTECTION OF CERTAIN ACTIONS.—Any action

25 taken by the Airports Authority and submitted to the Board
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1 of Review pursuant to section 6007(f)(4) of the Metropolitan

2 Washington Airports Act of 1986 before April 1, 1995, shall

3 remain in effect and shall not be set aside solely by reason

4 of a judicial order invalidating certain functions of the

5 Board.

6 SEC. 802. SENSE OF THE SENATE.

7 It is the sense of the Senate that the Airports Author8 ity—

9 (1) should not provide any reserved parking

10 areas free of charge to Members of Congress, other

11 Government officials, or diplomats at Washington Na12 tional Airport or Washington Dulles International

13 Airport; and

14 (2) should establish a parking policy for such

15 airports that provides equal access to the public, and

16 does not provide preferential parking privileges to

17 Members of Congress, other Government officials, or

18 diplomats.

19 SEC. 803. CONFORMING AMENDMENTS IN OTHER LAW.

20 Any reference in any Federal law, Executive order,

21 rule, regulation, or delegation of authority to the Board of

22 Review or the provisions of law repealed under this title

23 is hereby repealed.

24 SEC. 804. DEFINITIONS.

25 For purposes of this title—
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1 (1) the terms ‘‘Airports Authority’’, ‘‘Washington

2 National Airport’’, and ‘‘Washington Dulles Inter3 national Airport’’ have the same meanings as in sec4 tion 6004 of the Metropolitan Washington Airports

5 Act of 1986; and

6 (2) the term ‘‘Board of Review’’ means the Board

7 of Review of the Airports Authority.

8 SEC. 805. INCREASE IN NUMBER OF PRESIDENTIALLY AP9 POINTED MEMBERS OF BOARD.

10 (a) IN GENERAL.—Section 6007(e) of the Metropolitan

11 Washington Airports Act of 1986 (formerly 49 U.S.C.

12 2456(e)) is amended—

13 (1) by striking ‘‘11 members,’’ in paragraph (1)

14 and inserting ‘‘13 members,’’;

15 (2) by striking ‘‘one member’’ in paragraph

16 (1)(D) and inserting ‘‘3 members’’; and

17 (3) by striking ‘‘Seven’’ in paragraph (5) and

18 inserting ‘‘Eight’’.

19 (b) STAGGERING TERMS FOR PRESIDENTIAL AP20 POINTEES.—Of the members first appointed by the Presi21 dent after the date of enactment of this Act—

22 (1) one shall be appointed for a term that expires

23 simultaneously with the term of the member of the

24 Metropolitan Washington Airports Authority board of

25 directors serving on that date (or, if there is a va-
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1 cancy in that office, the member appointed to fill the

2 existing vacancy and the member to whom this para3 graph applies shall be appointed for 2 years);

4 (2) one shall be appointed for a term ending 2

5 years after the term of the member (or members) to

6 whom paragraph (1) applies expires; and

7 (3) one shall be appointed for a term ending 4

8 years after the term of the member (or members) to

9 whom paragraph (1) applies expires.

10 SEC. 806. RECONSTITUTED BOARD TO FUNCTION WITHOUT

11 INTERRUPTION.

12 Notwithstanding any provision of State law, including

13 those provisions establishing, providing for the establish14 ment of, or recognizing the Metropolitan Washington Air15 ports Authority, and based upon the Federal interest in the

16 continued functions of the Metropolitan Washington Air17 ports (as defined in section 6004(4) of the Metropolitan

18 Washington Airports Authority Act of 1986 (formerly 49

19 U.S.C. 2451(4)), the board of directors of such Authority,

20 including any members appointed under the amendments

21 made by section 805, shall continue to meet and act after

22 the date of enactment of this Act until such time as nec23 essary conforming changes in State law are made in the

24 same manner as if those conforming changes had been en25 acted on the date of enactment of this Act.
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1 SEC. 807. OPERATIONAL SLOTS AT NATIONAL AIRPORT.

2 Nothing in this title shall affect the number or dis3 tribution of operational slots at National Airport.

4 SEC. 808. AIRPORTS AUTHORITY SUPPORT OF BOARD.

5 Section 6005 of the Metropolitan Washington Airports

6 Authority Act of 1986 (formerly 49 U.S.C. 2454) is amend7 ed by adding at the end thereof the following:

8 ‘‘(f) FEDERAL AGENCY OVERSIGHT.—The Airports

9 Authority shall not be required—

10 ‘‘(1) to pay any person;

11 ‘‘(2) to provide office space or administrative

12 support; or

13 ‘‘(3) to reimburse the Secretary of Transpor14 tation for expenses incurred,

15 for carrying out any Federal agency oversight responsibil16 ities under this Act. Nothing in this subsection precludes

17 the Airport Authority from providing services or expenses

18 to any member of the Board of Directors.’’.

19 TITLE IX—AIRPORT REVENUE

20 PROTECTION

21 SEC. 901. SHORT TITLE.

22 This title may be cited as the ‘‘Airport Revenue Protec23 tion Act of 1996’’.

24 SEC. 902. FINDINGS; PURPOSE.

25 (a) IN GENERAL.—The Congress finds that—
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1 (1) section 47107 of title 49, United States Code,

2 prohibits the diversion of certain revenue generated by

3 a public airport as a condition of receiving a project

4 grant;

5 (2) a grant recipient that uses airport revenue

6 for purposes that are not airport related in a manner

7 inconsistent with chapter 471 of title 49, United

8 States Code, illegally diverts airport revenues;

9 (3) any diversion of airport revenues in viola10 tion of the condition referred to in paragraph (1) un11 dermines the interest of the United States in promot12 ing a strong national air transportation system that

13 is responsive to the needs of airport users;

14 (4) the Secretary and the Administrator have

15 not enforced airport revenue diversion rules ade16 quately and must have additional regulatory tools to

17 increase enforcement efforts; and

18 (5) sponsors who have been found to have ille19 gally diverted airport revenues—

20 (A) have not reimbursed or made restitution

21 to airports in a timely manner; and

22 (B) must be encouraged to do so.

23 (b) PURPOSE.—The purpose of this title is to ensure

24 that airport users are not burdened with hidden taxation

25 for unrelated municipal services and activities by—
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1 (1) eliminating the ability of any State or politi2 cal subdivision thereof that is a recipient of a project

3 grant to divert airport revenues for purposes that are

4 not related to an airport, in violation of section

5 47107 of title 49, United States Code;

6 (2) imposing financial reporting requirements

7 that are designed to identify instances of illegal diver8 sions referred to in paragraph (1);

9 (3) establishing a statute of limitations for air10 port revenue diversion actions;

11 (4) clarifying limitations on revenue diversion

12 that are permitted under chapter 471 of title 49,

13 United States Code; and

14 (5) establishing clear penalties and enforcement

15 mechanisms for identifying and prosecuting airport

16 revenue diversion.

17 SEC. 903. DEFINITIONS.

18 For purposes of this title, the following definitions

19 shall apply:

20 (1) ADMINISTRATOR.—The term ‘‘Adminis21 trator’’ means the Administrator of the Federal Avia22 tion Administration.

23 (2) AIRPORT.—The term ‘‘airport’’ has the

24 meaning provided that term in section 47102(2) of

25 title 49, United States Code.
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1 (3) PROJECT GRANT.—The term ‘‘project grant’’

2 has the meaning provided that term in section

3 47102(14) of title 49, United States Code.

4 (4) SECRETARY.—The term ‘‘Secretary’’ means

5 the Secretary of Transportation.

6 (5) SPONSOR.—The term ‘‘sponsor’’ has the

7 meaning provided that term in section 47102(19) of

8 title 49, United States Code.

9 SEC. 904. RESTRICTION ON USE OF AIRPORT REVENUES.

10 (a) IN GENERAL.—Subchapter I of chapter 471, as

11 amended by section 201(a) of this Act, is further amended

12 by adding at the end of subchapter I the following new sec13 tion:

14 ‘‘§ 47133. Restriction on use of revenues

15 ‘‘(a) PROHIBITION.—Local taxes on aviation fuel (ex16 cept taxes in effect on December 30, 1987) or the revenues

17 generated by an airport that is the subject of Federal assist18 ance may not be expended for any purpose other than the

19 capital or operating costs of—

20 ‘‘(1) the airport;

21 ‘‘(2) the local airport system; or

22 ‘‘(3) any other local facility that is owned or op23 erated by the person or entity that owns or operates

24 the airport that is directly and substantially related

25 to the air transportation of passengers or property.
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1 ‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply if

2 a provision enacted not later than September 2, 1982, in

3 a law controlling financing by the airport owner or opera4 tor, or a covenant or assurance in a debt obligation issued

5 not later than September 2, 1982, by the owner or operator,

6 provides that the revenues, including local taxes on aviation

7 fuel at public airports, from any of the facilities of the

8 owner or operator, including the airport, be used to support

9 not only the airport but also the general debt obligations

10 or other facilities of the owner or operator.

11 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec12 tion may be construed to prevent the use of a State tax

13 on aviation fuel to support a State aviation program or

14 the use of airport revenue on or off the airport for a noise

15 mitigation purpose.’’.

16 (b) CONFORMING AMENDMENT.—The chapter analysis

17 for subchapter I of chapter 471 is amended by adding at

18 the end the following new item:

‘‘47133. Restriction on use of revenues.’’.

19 SEC. 905. REGULATIONS; AUDITS AND ACCOUNTABILITY.

20 (a) IN GENERAL.—Section 47107 is amended by add21 ing at the end the following new subsections:

22 ‘‘(m) AUDIT CERTIFICATION.—

23 ‘‘(1) IN GENERAL.—The Secretary of Transpor24 tation (hereafter in this section referred to as the ‘Sec25 retary’), acting through the Administrator of the Fed-
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1 eral Aviation Administration (hereafter in this sec2 tion referred to as the ‘Administrator’), shall promul3 gate regulations that require a recipient of a project

4 grant (or any other recipient of Federal financial as5 sistance that is provided for an airport) to include as

6 part of an annual audit conducted under sections

7 7501 through 7505 of title 31, a review and opinion

8 of the review concerning the funding activities with

9 respect to an airport that is the subject of the project

10 grant (or other Federal financial assistance) and the

11 sponsors, owners, or operators (or other recipients) in12 volved.

13 ‘‘(2) CONTENT OF REVIEW.—A review conducted

14 under paragraph (1) shall provide reasonable assur15 ances that funds paid or transferred to sponsors are

16 paid or transferred in a manner consistent with the

17 applicable requirements of this chapter and any other

18 applicable provision of law (including regulations

19 promulgated by the Secretary or the Administrator).

20 ‘‘(3) REQUIREMENTS FOR AUDIT REPORT.—The

21 report submitted to the Secretary under this sub22 section shall include a specific determination and

23 opinion regarding the appropriateness of the disposi24 tion of airport funds paid or transferred to a sponsor.

25 ‘‘(n) RECOVERY OF ILLEGALLY DIVERTED FUNDS.—
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1 ‘‘(1) IN GENERAL.—Not later than 180 days

2 after the issuance of an audit or any other report that

3 identifies an illegal diversion of airport revenues (as

4 determined under subsections (b) and (l) and section

5 47133), the Secretary, acting through the Adminis6 trator, shall—

7 ‘‘(A) review the audit or report;

8 ‘‘(B) perform appropriate factfinding; and

9 ‘‘(C) conduct a hearing and render a final

10 determination concerning whether the illegal di11 version of airport revenues asserted in the audit

12 or report occurred.

13 ‘‘(2) NOTIFICATION.—Upon making such a find14 ing, the Secretary, acting through the Administrator,

15 shall provide written notification to the sponsor and

16 the airport of—

17 ‘‘(A) the finding; and

18 ‘‘(B) the obligations of the sponsor to reim19 burse the airport involved under this paragraph.

20 ‘‘(3) ADMINISTRATIVE ACTION.—The Secretary

21 may withhold any amount from funds that would

22 otherwise be made available to the sponsor, including

23 funds that would otherwise be made available to a

24 State, municipality, or political subdivision thereof

25 (including any multimodal transportation agency or
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1 transit authority of which the sponsor is a member

2 entity) as part of an apportionment or grant made

3 available pursuant to this title, if the sponsor—

4 ‘‘(A) receives notification that the sponsor is

5 required to reimburse an airport; and

6 ‘‘(B) has had an opportunity to reimburse

7 the airport, but has failed to do so.

8 ‘‘(4) CIVIL ACTION.—If a sponsor fails to pay an

9 amount specified under paragraph (3) during the

10 180-day period beginning on the date of notification

11 and the Secretary is unable to withhold a sufficient

12 amount under paragraph (3), the Secretary, acting

13 through the Administrator, may initiate a civil ac14 tion under which the sponsor shall be liable for civil

15 penalty in an amount equal to the illegal diversion

16 in question plus interest (as determined under sub17 section (o)).

18 ‘‘(5) DISPOSITION OF PENALTIES.—

19 ‘‘(A) AMOUNTS WITHHELD.—The Secretary

20 or the Administrator shall transfer any amounts

21 withheld under paragraph (3) to the Airport and

22 Airway Trust Fund.

23 ‘‘(B) CIVIL PENALTIES.—With respect to

24 any amount collected by a court in a civil action

25 under paragraph (4), the court shall cause to be
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1 transferred to the Airport and Airway Trust

2 Fund any amount collected as a civil penalty

3 under paragraph (4).

4 ‘‘(6) REIMBURSEMENT.—The Secretary, acting

5 through the Administrator, shall, as soon as prac6 ticable after any amount is collected from a sponsor

7 under paragraph (4), cause to be transferred from the

8 Airport and Airway Trust Fund to an airport af9 fected by a diversion that is the subject of a civil ac10 tion under paragraph (4), reimbursement in an

11 amount equal to the amount that has been collected

12 from the sponsor under paragraph (4) (including any

13 amount of interest calculated under subsection (o)).

14 ‘‘(7) STATUTE OF LIMITATIONS.—No person may

15 bring an action for the recovery of funds illegally di16 verted in violation of this section (as determined

17 under subsections (b) and (l)) or section 47133 after

18 the date that is 6 years after the date on which the

19 diversion occurred.

20 ‘‘(o) INTEREST.—

21 ‘‘(1) IN GENERAL.—Except as provided in para22 graph (2), the Secretary, acting through the Adminis23 trator, shall charge a minimum annual rate of inter24 est on the amount of any illegal diversion of revenues

25 referred to in subsection (n) in an amount equal to
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1 the average investment interest rate for tax and loan

2 accounts of the Department of the Treasury (as deter3 mined by the Secretary of the Treasury) for the appli4 cable calendar year, rounded to the nearest whole per5 centage point.

6 ‘‘(2) ADJUSTMENT OF INTEREST RATES.—If,

7 with respect to a calendar quarter, the average invest8 ment interest rate for tax and loan accounts of the

9 Department of the Treasury exceeds the average in10 vestment interest rate for the immediately preceding

11 calendar quarter, rounded to the nearest whole per12 centage point, the Secretary of the Treasury may ad13 just the interest rate charged under this subsection in

14 a manner that reflects that change.

15 ‘‘(3) ACCRUAL.—Interest assessed under sub16 section (n) shall accrue from the date of the actual il17 legal diversion of revenues referred to in subsection

18 (n).

19 ‘‘(4) DETERMINATION OF APPLICABLE RATE.—

20 The applicable rate of interest charged under para21 graph (1) shall—

22 ‘‘(A) be the rate in effect on the date on

23 which interest begins to accrue under paragraph

24 (3); and
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1 ‘‘(B) remain at a rate fixed under subpara2 graph (A) during the duration of the indebted3 ness.

4 ‘‘(p) PAYMENT BY AIRPORT TO SPONSOR.—If, in the

5 course of an audit or other review conducted under this sec6 tion, the Secretary or the Administrator determines that an

7 airport owes a sponsor funds as a result of activities con8 ducted by the sponsor or expenditures by the sponsor for

9 the benefit of the airport, interest on that amount shall be

10 determined in the same manner as provided in paragraphs

11 (1) through (4) of subsection (o), except that the amount

12 of any interest assessed under this subsection shall be deter13 mined from the date on which the Secretary or the Adminis14 trator makes that determination.’’.

15 (b) REVISION OF POLICIES AND PROCEDURES; DEAD16 LINES.—

17 (1) IN GENERAL.—Not later than 90 days after

18 the date of enactment of this Act, the Secretary, act19 ing through the Administrator, shall revise the poli20 cies and procedures established under section 47107(l)

21 of title 49, United States Code, to take into account

22 the amendments made to that section by this title.

23 (2) STATUTE OF LIMITATIONS.—Section 47107(l)

24 is amended by adding at the end the following new

25 paragraph:
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1 ‘‘(5) STATUTE OF LIMITATIONS.—In addition to

2 the statute of limitations specified in subsection

3 (n)(7), with respect to project grants made under this

4 chapter—

5 ‘‘(A) any request by a sponsor to any air6 port for additional payments for services con7 ducted off of the airport or for reimbursement for

8 capital contributions or operating expenses shall

9 be filed not later than 6 years after the date on

10 which the expense is incurred; and

11 ‘‘(B) any amount of airport funds that are

12 used to make a payment or reimbursement as de13 scribed in subparagraph (A) after the date speci14 fied in that subparagraph shall be considered to

15 be an illegal diversion of airport revenues that is

16 subject to subsection (n).’’.

17 SEC. 906. CONFORMING AMENDMENTS TO THE INTERNAL

18 REVENUE CODE OF 1986.

19 Section 9502 of the Internal Revenue Code of 1986 is

20 amended—

21 (1) by striking ‘‘and’’ at the end of subsection

22 (b)(3);

23 (2) by striking the period at the end of sub24 section (b)(4) and inserting ‘‘, and’’; and
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1 (3) by adding at the end of subsection (b) the fol2 lowing:

3 ‘‘(5) amounts determined by the Secretary of the

4 Treasury to be equivalent to the amounts of civil pen5 alties collected under section 47107(n) of title 49,

6 United States Code.’’; and

7 (4) in subsection (d), by adding at the end of

8 subsection (d) the following:

9 ‘‘(4) TRANSFERS FROM THE AIRPORT AND AIR10 WAY TRUST FUND ON ACCOUNT OF CERTAIN AIR11 PORTS.—The Secretary of the Treasury may transfer

12 from the Airport and Airway Trust Fund to the Sec13 retary of Transportation or the Administrator of the

14 Federal Aviation Administration an amount to make

15 a payment to an airport affected by a diversion that

16 is the subject of an administrative action under para17 graph (3) or a civil action under paragraph (4) of

18 section 47107(n) of title 49, United States Code.’’.
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1 TITLE X—EXTENSION OF AIR2 PORT AND AIRWAY TRUST

3 FUND EXPENDITURE AU4 THORITY

5 SEC. 1001. EXPENDITURES FROM AIRPORT AND AIRWAY

6 TRUST FUND.

7 Section 9502(d)(1) of the Internal Revenue Code of

8 1986 (relating to expenditures from Airport and Airway

9 Trust Fund) is amended by—

10 (1) striking ‘‘1996’’ and inserting ‘‘1997’’; and

11 (2) inserting ‘‘or the Federal Aviation Reauthor12 ization Act of 1996’’ after ‘‘Administration Author13 ization Act of 1994’’.

Attest:

Secretary.
104TH CONGRESS

2D SESSION H. R. 3539

AMENDMENT
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