```

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3539 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  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:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Aviation 
Reauthorization Act of 1996''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.

                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.
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.

  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.
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.

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

    Except as otherwise specifically provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision of law, the reference shall be 
considered to be made to a section or other provision of title 49, 
United States Code.

                TITLE I--REAUTHORIZATION OF FAA PROGRAMS

SEC. 101. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

    (a) Authorization of Appropriations From General Fund.--Section 
106(k) is amended--
            (1) by striking ``and'' after ``1995,''; and
            (2) by inserting before the period at the end the 
        following: ``, and $5,000,000,000 for fiscal year 1997.''.
    (b) Authorization of Appropriations From Trust Fund.--Section 
48104(b) is amended--
            (1) in the subsection heading by striking ``for Fiscal 
        Years 1993''; and
            (2) by striking the phrase ``for fiscal year 1993''.
    (c) Clerical Amendment.--Section 48108 is amended by striking 
subsection (c).

SEC. 102. AIR NAVIGATION FACILITIES.

    Section 48101(a) is amended by adding at the end the following:
            ``(5) For the fiscal years ending September 30, 1991-1997, 
        $17,929,000,000.''.

SEC. 103. RESEARCH AND DEVELOPMENT.

    Section 48102(a) is amended by striking ``title:'' and all that 
follows through the end of the subsection, and inserting the following: 
``title, $206,000,000 for fiscal year 1997.''.

SEC. 104. AIRPORT IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 48103 is amended--
            (1) by striking ``and $21,958,500,000'' and inserting 
        ``$19,200,500,000''; and
            (2) by inserting before the period at the end the 
        following: ``, $21,480,500,000 for fiscal years ending before 
        October 1, 1997.
    (b) Obligational Authority.--Section 47104(c) is amended by 
striking ``1996'' and inserting ``1997''.

SEC. 105. INTERACCOUNT FLEXIBILITY.

    Section 106 is amended by adding at the end the following new 
subsection:
    ``(l) Interaccount Flexibility.--
            ``(1) Except as provided in paragraph (2), the 
        Administrator may transfer budget authority derived from trust 
        funds among appropriations authorized by subsection (k) and 
        sections 48101 and 48102, if the aggregate estimated outlays in 
        such accounts in the fiscal year in which the transfers are 
        made will not be increased as a result of such transfer.
            ``(2) The transfer of budget authority under paragraph (1) 
        may be made only to the extent that outlays do not exceed the 
        aggregate estimated outlays.
            ``(3) A transfer of budget authority under paragraph (1) 
        may not result in a net decrease of more than 5 percent, or a 
        net increase of more than 10 percent, in the budget authority 
        available under any appropriation involved in that transfer.
            ``(4) Any action taken pursuant to this section shall be 
        treated as a reprogramming of funds that is subject to review 
        by the appropriate committees of the Congress.
            ``(5) The Administrator may transfer budget authority 
        pursuant to this section only after--
                    ``(A) submitting a written explanation of the 
                proposed transfer to the Committees on Transportation 
                and Infrastructure and Appropriations of the House of 
                Representatives and the Committees on Commerce, 
                Science, and Transportation and Appropriations of the 
                Senate; and
                    ``(B) 30 days have passed after the explanation is 
                submitted and none of the committees notifies the 
                Administrator in writing that it objects to the 
                proposed transfer within the 30 day period.''.

          TITLE II--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

SEC. 201. PAVEMENT MAINTENANCE PROGRAM.

    (a) Pavement Maintenance.--Chapter 471 is amended by adding the 
following section at the end of subchapter I:
``Sec. 47132. Pavement maintenance
    ``(a) In General.--The Administrator of the Federal Aviation 
Administration shall issue guidelines to carry out a pavement 
maintenance pilot project to preserve and extend the useful life of 
runways, taxiways, and aprons at airports for which apportionments are 
made under section 47114(d). The regulations shall provide that the 
Administrator may designate not more than 10 projects. The regulations 
shall provide criteria for the Administrator to use in choosing the 
projects. At least 2 such projects must be in States without a primary 
airport that had 0.25 percent or more of the total boardings in the 
United States in the preceding calendar year. In designating a project, 
the Administrator shall take into consideration geographical, 
climatological, and soil diversity.
    ``(b) Effective Date.--This section shall be effective beginning on 
the date of enactment of the Federal Aviation Reauthorization Act of 
1996 and ending on September 30, 1999.''.
    (b) Compliance With Federal Mandates.--
            (1) Use of aip grants.--Section 47102(3) is amended--
                    (A) in subparagraph (E) by inserting ``or under 
                section 40117'' before the period at the end; and
                    (B) in subparagraph (F) by striking ``paid for by a 
                grant under this subchapter and''.
            (2) Use of passenger facility charges.--Section 40117(a)(3) 
        is amended--
                    (A) by inserting ``and'' at the end of subparagraph 
                (D);
                    (B) by striking ``; and'' at the end of 
                subparagraph (E) and inserting a period; and
                    (C) by striking subparagraph (F).
    (c) Conforming Amendment.--The chapter analysis for subchapter I of 
chapter 471 is amended by inserting after the item relating to section 
47131 the following new item:

``47132. Pavement maintenance.''.

SEC. 202. MAXIMUM PERCENTAGES OF AMOUNT MADE AVAILABLE FOR GRANTS TO 
              CERTAIN PRIMARY AIRPORTS.

    Section 47114 is amended by adding at the end thereof the 
following:
    ``(g) Sliding Scale.--
            ``(1) Notwithstanding any other provision of this title, of 
        the amount newly made available under section 48103 of this 
        title for fiscal year 1997 to make grants, not more than the 
        percentage of such amount newly made available that is 
        specified in paragraph (2) shall be distributed in total in 
        such fiscal year for grants described in paragraph (3).
            ``(2) If the amount newly made available is--
                    ``(A) not more than $1,150,000,000, then the 
                percentage is 47.0;
                    ``(B) more than $1,150,000,000 but not more than 
                $1,250,000,000, then the percentage is 46.0;
                    ``(C) more than $1,250,000,000 but not more than 
                $1,350,000,000, then the percentage is 45.4;
                    ``(D) more than $1,350,000,000 but not more than 
                $1,450,000,000, then the percentage is 44.8; or
                    ``(E) more than $1,450,000,000 but not more than 
                $1,550,000,000, then the percentage is 44.3.
            ``(3) This subsection applies to the aggregate amount of 
        grants in a fiscal year for projects at those primary airports 
        that each have not less than 0.25 per centum of the total 
        passenger boardings in the United States in the preceding 
        calendar year.''.

SEC. 203. DISCRETIONARY FUND.

    Section 47115 is amended--
            (1) by striking ``and'' at the end of subsection (d)(2) and 
        inserting a comma and the following: ``, including, in the case 
        of a project at a reliever airport, the number of operations 
        projected to be diverted from a primary airport to that 
        reliever airport as a result of the project, as well as the 
        cost savings projected to be realized by users of the local 
        airport system;'';
            (2) by redesignating paragraph (3) of subsection (d) as 
        paragraph (5), and by inserting after paragraph (2) of that 
        subsection the following:
            ``(3) the airport improvement priorities of the States, and 
        regional offices of the Administration, to the extent such 
        priorities are not in conflict with paragraphs (1) and (2) of 
        this subsection;
            ``(4) any increase in the number of passenger boardings in 
        the preceding 12-month period at the airport at which the 
        project will be carried out, with priority consideration to be 
        given to projects at airports at which, during that period, the 
        number of passenger boardings was 20 percent or greater than 
        the number of such boardings during the 12-month period 
        preceding that period; and'';
            (3) by redesignating the second subsection (f) as 
        subsection (g); and
            (4) by adding at the end the following:
    ``(h) Priority for Letters of Intent.--In making grants in a fiscal 
year with funds made available under this section, the Secretary shall 
fulfill intentions to obligate under section 47110(e).''.

SEC. 204. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

    (a) General Requirements.--Section 47118(a) is amended to read as 
follows:
    ``(a) General Requirements.--The Secretary of Transportation shall 
designate current or former military airports for which grants may be 
made under section 47117(e)(1)(E) of this title. The maximum number of 
airports bearing such designation at any time is 12. The Secretary may 
only so designate an airport (other than an airport so designated 
before August 24, 1994) if--
            ``(1) the airport is a former military installation closed 
        or realigned under--
                    ``(A) section 2687 of title 10;
                    ``(B) section 201 of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (10 
                U.S.C. 2687 note); or
                    ``(C) section 2905 of the Defense Base Closure and 
                Realignment Act of 1990 (10 U.S.C. 2687 note); or
            ``(2) the Secretary finds that such grants would--
                    ``(A) reduce delays at an airport with more than 
                20,000 hours of annual delays in commercial passenger 
                aircraft takeoffs and landings; or
                    ``(B) enhance airport and air traffic control 
                system capacity in a metropolitan area or reduce 
                current and projected flight delays.''.
    (b) Additional Designation Periods.--Section 47118(d) is amended by 
striking ``designation.'' and inserting ``designation, and for 
subsequent 5-fiscal-year periods if the Secretary determines that the 
airport satisfies the designation criteria under subsection (a) at the 
beginning of each such subsequent 5-fiscal-year period.''.
    (c) Parking Lots, Fuel Farms, and Utilities.--Subsection (f) of 
section 47118 is amended by striking ``the fiscal years ending 
September 30, 1993-1996,'' and inserting ``for fiscal years beginning 
after September 30, 1992,''.
    (d) One-Year Extension.--Section 47117(e)(1)(E) is amended by 
striking ``and 1996,'' and inserting ``1996, and 1997,''.

SEC. 205. STATE BLOCK GRANT PROGRAM.

    (a) Participating States.--Section 47128(b) is amended--
            (1) by striking paragraph (2);
            (2) by redesignating subparagraphs (A) through (E) of 
        paragraph (1) as paragraphs (1) through (5), respectively; and
            (3) by striking ``(1) A State'' and inserting ``A State''.
    (b) Use of State Priority System.--Section 47128(c) is amended by 
adding at the end the following: ``In carrying out this subsection, the 
Secretary shall permit a State to use the priority system of the State 
if such system is not inconsistent with the national priority 
system.''.
    (c) Change of Expiration Date.--Section 47128(d) is amended by 
striking ``1996'' and inserting ``1997''.

SEC. 206. ACCESS TO AIRPORTS BY INTERCITY BUSES.

    Section 47107 (a) is amended--
            (1) by striking ``and'' at the end of paragraph (18);
            (2) by striking the period at the end of paragraph (19) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(20) the airport owner or operator will permit, to the 
        maximum extent practicable, intercity buses or other modes of 
        transportation to have access to the airport, but the sponsor 
        does not have any obligation under this paragraph, or because 
        of it, to fund special facilities for intercity bus service or 
        for other modes of transportation.''.

                TITLE III--AVIATION SAFETY AND SECURITY

SEC. 301. REPORT INCLUDING PROPOSED LEGISLATION ON FUNDING FOR AIRPORT 
              SECURITY.

    (a) In General.--Not later than 30 days after the date of enactment 
of this Act, the Administrator shall conduct a study and submit to the 
Congress a report on whether, and if so, how to transfer certain 
responsibilities of air carriers under Federal law for security 
activities conducted onsite at airports to airport operators who are 
subject to section 44903 of title 49, United States Code, or to the 
Federal Government or providing for shared responsibilities between air 
carriers and airport operators or the Federal Government.
    (b) Contents of Report.--The report submitted under this section 
shall--
            (1) examine potential sources of Federal and non-Federal 
        revenue that may be used to fund security activities including 
        but not limited to providing grants from funds received as fees 
        collected under a fee system established under subpart C of 
        this title and the amendments made by that subpart; and
            (2) provide legislative proposals, if necessary, for 
        accomplishing the transfer of responsibilities referred to in 
        subsection (a).
    (c) Certification of Screening Companies.--The Federal Aviation 
Administrator is directed to certify companies providing security 
screening and to improve the training and testing of security screeners 
through development of uniform performance standards for providing 
security screening services.

SEC. 302. FAMILY ADVOCACY.

    (a) In General.--Subchapter III of chapter 11 of title 49, United 
States Code, is amended by adding at the end the following new section:
``Sec. 1136. Family advocacy
    ``(a) In General.--The National Transportation Safety Board shall 
establish a program consistent with its existing authority to provide 
family advocacy services for aircraft accidents described in subsection 
(b)(1) and serve as the lead agency in coordinating the provision of 
the services described in subsection (b). The National Transportation 
Safety Board shall, as necessary, in carrying out the program, 
cooperate with the Secretary of Transportation, the Administrator of 
the Federal Aviation Administration, and such other public and private 
organizations as may be appropriate.
    ``(b) Family Advocacy Services.--
            ``(1) In general.--The National Transportation Safety Board 
        shall work with an air carrier involved in an accident in air 
        commerce and facilitate the procurement by that air carrier of 
        the services of family advocates who are not otherwise employed 
        by an air carrier and who are not employed by the Federal 
        Aviation Administration to, in the event of an accident in air 
        commerce--
                    ``(A) apply standards of conduct specified by the 
                National Transportation Safety Board;
                    ``(B) to the extent practicable, direct and 
                facilitate all communication among air carriers, 
                surviving passengers, families of passengers, news 
                reporters, the Federal Government, and the governments 
                of States and political subdivisions thereof;
                    ``(C) coordinate with a representative of the air 
                carrier to jointly direct the notification of the next 
                of kin of victims of the accident; and
                    ``(D) carry out such other related duties as the 
                National Transportation Safety Board determines to be 
                appropriate.
            ``(2) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Air carrier.--The term `air carrier' has the 
                meaning provided that term in section 40102(a)(2).
                    ``(B) Family advocate.--The term `family advocate' 
                shall have the meaning provided that term by the 
                National Transportation Safety Board by regulation.''.
    (b) Guidelines.--Not later than 90 days after the date of enactment 
of this Act, the National Transportation Safety Board shall issue 
guidelines for the implementation of the program established by the 
Board under section 1136 of title 49, United States Code, as added by 
subsection (a).
    (c) Conforming Amendment.--The chapter analysis for subchapter III 
of chapter 11 of title 49, United States Code, is amended by adding at 
the end the following:

``1136. Family advocacy.''.

SEC. 303. ACCIDENT AND SAFETY DATA CLASSIFICATION; REPORT ON EFFECTS OF 
              PUBLICATION AND AUTOMATED SURVEILLANCE TARGETING SYSTEMS.

    (a) Accident and Safety Data Classification.--
            (1) In general.--Subchapter II of chapter 11 of title 49, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 1119. Accident and safety data classification and publication
    ``(a) In General.--Not later than 90 days after the date of 
enactment of this section, the National Transportation Safety Board 
(hereafter in this section referred to as the `Board') shall, in 
consultation and coordination with the Administrator of the Federal 
Aviation Administration (hereafter in this section referred to as the 
`Administrator'), develop a system for classifying air carrier accident 
and pertinent safety data maintained by the Board.
    ``(b) Requirements for Classification System.--
            ``(1) In general.--The system developed under this section 
        shall provide for the classification of accident and safety 
        data in a manner that, in comparison to the system in effect on 
        the date of enactment of this section, provides for--
                    ``(A) safety-related categories that provide 
                clearer descriptions of the passenger safety effects 
                associated with air transportation;
                    ``(B) clearer descriptions of passenger safety 
                concerns associated with air transportation accidents; 
                and
                    ``(C) a report to the Congress by the Board that 
                describes methods for accurately informing the public 
                of the concerns referred to in subparagraph (B) through 
                regular reporting of accident and safety data obtained 
                through the system developed under this section.
            ``(2) Public comment.--Upon developing a system of 
        classification under paragraph (1), the Board shall provide 
        adequate opportunity for public review and comment.
            ``(3) Final classification.--After providing for public 
        review and comment, and after consulting with the 
        Administrator, the Board shall issue final classifications. The 
        Board shall ensure that air travel accident and safety data 
        covered under this section is classified in accordance with the 
        final classifications issued under this section for data for 
        calendar year 1997, and for each subsequent calendar year.
            ``(4) Report on the effects associated with publication of 
        air transportation accident and safety information.--
                    ``(A) In general.--Not later than the date 
                specified in subsection (a), the Board shall prepare 
                and submit to the Congress a report on the effects and 
                potential of the publication of air transportation 
                accident safety information.
                    ``(B) Content and form of report.--The report 
                prepared under this paragraph shall include 
                recommendations concerning the adoption or revision of 
                requirements for reporting accident and safety data.
            ``(5) Recommendations of the administrator.--The 
        Administrator may, from time to time, request the Board to 
        consider revisions (including additions to the classification 
        system developed under this section). The Board shall respond 
        to any request made by the Administrator under this section not 
        later than 90 days after receiving that request.
    ``(c) Presentation of Final Classifications to the International 
Civil Aviation Organization.--Not later than 90 days after final 
classifications are issued under subsection (b)(3), the Administrator 
shall--
            ``(1) present to the International Civil Aviation 
        Organization the final classification system developed under 
        this section; and
            ``(2) seek the adoption of that system by the International 
        Civil Aviation Organization.''.
            (2) Conforming amendment.--The chapter analysis for 
        subchapter II of chapter 11 of title 49, United States Code, is 
        amended by adding at the end the following new item:

``1119. Accident and safety data classification and publication.''.
    (b) Automated Surveillance Targeting Systems.--Section 44713 is 
amended by adding at the end the following new subsection:
    ``(e) Automated Surveillance Targeting Systems.--
            ``(1) In general.--The Administrator shall give high 
        priority to developing and deploying a fully enhanced safety 
        performance analysis system that includes automated 
        surveillance to assist the Administrator in prioritizing and 
        targeting surveillance and inspection activities of the Federal 
        Aviation Administration.
            ``(2) Deadlines for deployment.--
                    ``(A) Initial phase.--The initial phase of the 
                operational deployment of the system developed under 
                this subsection shall begin not later than December 31, 
                1997.
                    ``(B) Final phase.--The final phase of field 
                deployment of the system developed under this 
                subsection shall begin not later than December 31, 
                1999. By that date, all principal operations and 
                maintenance inspectors of the Administration, and 
                appropriate supervisors and analysts of the 
                Administration shall have been provided access to the 
                necessary information and resources to carry out the 
                system.
            ``(3) Integration of information.--In developing the system 
        under this section, the Administration shall consider the near-
        term integration of accident and incident data into the safety 
        performance analysis system under this subsection.''.

SEC. 304. WEAPONS AND EXPLOSIVE DETECTION STUDY.

    (a) In General.--The Administrator of the Federal Aviation 
Administration (hereafter in this section referred to as the 
``Administrator'') shall enter into an arrangement with the Director of 
the National Academy of Sciences (or if the National Academy of 
Sciences is not available, the head of another equivalent entity) to 
conduct a study in accordance to this section.
    (b) Panel of Experts.--
            (1) In general.--In carrying out a study under this 
        section, the Director of the National Academy of Sciences (or 
        the head of another equivalent entity) shall establish a panel 
        (hereinafter in this section as the ``panel'').
            (2) Expertise.--Each member of the panel established under 
        this subsection shall have expertise in weapons and explosive 
        detection technology, security, air carrier and airport 
        operations, or another appropriate area. The Director of the 
        National Academy of Sciences (or the head of another equivalent 
        entity) shall ensure that the panel has an appropriate number 
        of representatives of the areas specified in the preceding 
        sentence.
    (c) Study.--The panel established under subsection (b), in 
consultation with the National Science and Technology Council, 
representatives of appropriate Federal agencies, and appropriate 
members of the private sector, shall--
            (1) assess the weapons and explosive detection technologies 
        that are available at the time of the study that are capable of 
        being effectively deployed in commercial aviation;
            (2) determine how the technologies referred to in paragraph 
        (1) may more effectively be used for promotion and improvement 
        of security at airport and aviation facilities and other 
        secured areas; and
            (3) on the basis of the assessments and determinations made 
        under paragraphs (1) and (2), identify the most promising 
        technologies for the improvement of the efficiency and cost-
        effectiveness of weapons and explosive detection.
    (d) Cooperation.--The National Science and Technology Council shall 
take such action as may be necessary to facilitate, to the maximum 
extent practicable and upon request of the Director of the National 
Academy of Sciences (or the head of another equivalent entity), the 
cooperation of representatives of appropriate Federal agencies, as 
provided for in subsection (c), in providing the panel, for the study 
under this section--
            (1) expertise; and
            (2) to the extent allowable by law, resources and 
        facilities.
    (e) Reports.--The Director of the National Academy of Sciences (or 
the head of another equivalent entity) shall, pursuant to an 
arrangement entered into under subsection (a), submit to the 
Administrator such reports as the Administrator considers to be 
appropriate. Upon receipt of a report under this subsection, the 
Administrator shall submit a copy of the report to the appropriate 
committees of the Congress.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated, for each of fiscal years 1997 through 2001, such sums as 
may be necessary to carry out this section.

SEC. 305. REQUIREMENT FOR CRIMINAL HISTORY RECORDS CHECKS.

    (a) In General.--Section 44936(a)(1) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively;
            (2) by striking ``(1)'' and inserting ``(1)(A)''; and
            (3) by adding at the end the following:
    ``(B) The Administrator shall require by regulation that an 
employment investigation (including a criminal history record check in 
any case described in subparagraph (C)) be conducted for--
            ``(i) individuals who will be responsible for screening 
        passengers or property under section 44901 of this title;
            ``(ii) supervisors of the individuals described in clause 
        (i); and
            ``(iii) such other individuals who exercise security 
        functions associated with baggage or cargo, as the 
        Administrator determines is necessary to ensure air 
        transportation security.
    ``(C) Under the regulations issued under subparagraph (B), a 
criminal history record check shall, as a minimum, be conducted in any 
case in which--
            ``(i) an employment investigation reveals a gap in 
        employment of 12 months or more that the individual who is the 
        subject of the investigation does not satisfactorily account 
        for;
            ``(ii) that individual is unable to support statements made 
        on the application of that individual;
            ``(iii) there are significant inconsistencies in the 
        information provided on the application of that individual; or
            ``(iv) information becomes available during the employment 
        investigation indicating a possible conviction for one of the 
        crimes listed in subsection (b)(1)(B).''.
    (b) Applicability.--The amendment made by subsection (a)(3) shall 
apply to individuals hired to perform functions described in section 
44936(a)(1)(B) of title 49, United States Code, after the date of the 
enactment of this Act, except that the Administrator may, as the 
Administrator determines to be appropriate, require such employment 
investigations or criminal history records checks for individuals 
performing those functions on the date of enactment of this Act. 
Nothing in section 44936 of title 49, United States Code, as amended by 
subsection (a) precludes the Administration from permitting the 
employment of an individual on an interim basis while employment or 
criminal history record checks required by that section are being 
conducted.

SEC. 306. INTERIM DEPLOYMENT OF COMMERCIALLY AVAILABLE EXPLOSIVE 
              DETECTION EQUIPMENT.

    Section 44913(a) is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Until such time as the Administrator determines that 
        equipment certified under paragraph (1) is commercially 
        available and has successfully completed operational testing as 
        provided in paragraph (1), the Administrator shall facilitate 
        the deployment of such approved commercially available 
        explosive detection devices as the Administrator determines 
        will enhance aviation security significantly. The Administrator 
        shall require that equipment deployed under this paragraph be 
        replaced by equipment certified under paragraph (1) when 
        equipment certified under paragraph (1) becomes commercially 
        available. The Administrator is authorized, based on 
        operational considerations at individual airports, to waive the 
        required installation of commercially available equipment under 
        paragraph (1) in the interests of aviation security.''.

SEC. 307. AUDIT OF PERFORMANCE OF BACKGROUND CHECKS FOR CERTAIN 
              PERSONNEL.

    Section 44936(a) is amended by adding at the end the following:
            ``(3) The Administrator shall provide for the periodic 
        audit of the effectiveness of criminal history record checks 
        conducted under paragraph (1) of this subsection.''.

SEC. 308. SENSE OF THE SENATE ON PASSENGER PROFILING.

    It is the sense of the Senate that the Administrator of the Federal 
Aviation Administration, in consultation with the intelligence and law 
enforcement communities, should continue to assist air carriers in 
developing computer-assisted and other appropriate passenger profiling 
programs which should be used in conjunction with other security 
measures and technologies.

SEC. 309. AUTHORITY TO USE CERTAIN FUNDS FOR AIRPORT SECURITY PROGRAMS 
              AND ACTIVITIES.

    (a) In General.--Notwithstanding any other provision of law, funds 
referred to in subsection (b) may be used to expand and enhance air 
transportation security programs and other activities (including the 
improvement of facilities and the purchase and deployment of equipment) 
to ensure the safety and security of passengers and other persons 
involved in air travel.
    (b) Covered Funds.--The following funds may be used under 
subsection (a):
            (1) Project grants made under subchapter 1 of chapter 471 
        of title 49, United States Code.
            (2) Passenger facility fees collected under section 40117 
        of title 49, United States Code.

SEC. 310. DEVELOPMENT OF AVIATION SECURITY LIAISON AGREEMENT.

    The Secretary of Transportation and the Attorney General, acting 
through the Administrator of the Federal Aviation Administration and 
the Director of the Federal Bureau of Investigation, shall enter into 
an interagency agreement providing for the establishment of an aviation 
security liaison at existing appropriate Federal agencies' field 
offices in or near cities served by a designated high-risk airport.

SEC. 311. REGULAR JOINT THREAT ASSESSMENTS.

    The Administrator of the Federal Aviation Administration and the 
Director of the Federal Bureau of Investigation shall carry out joint 
threat and vulnerability assessments on security every 3 years, or more 
frequently, as necessary, at airports determined to be high risk.

SEC. 312. BAGGAGE MATCH REPORT.

    Within 30 days after the completion of the passenger bag match 
pilot program recommended by the Vice President's Commission on 
Aviation Security, the Administrator shall submit a report to Congress 
on the safety effectiveness and operational effectiveness of the pilot 
program. The report shall also assess the extent to which 
implementation of baggage match requirements, coupled with the best 
available technologies and methodologies, such as passenger profiling, 
enhance domestic aviation security.

SEC. 313. ENHANCED SECURITY PROGRAMS.

    (a) In General.--Chapter 449 is amended by adding at the end of 
subchapter I the following:
``Sec. 44916. Assessments and evaluations
    ``(a) In General.--
            ``(1) Periodic assessments.--The Administrator shall 
        require each air carrier and airport (including the airport 
        owner or operator in cooperation with the air carriers and 
        vendors serving each airport) that provides for intrastate, 
        interstate, or foreign air transportation to conduct periodic 
        vulnerability assessments of the security systems of that air 
        carrier or airport, respectively. The Administration shall 
        perform periodic audits of the assessments referred to in 
        paragraph (1).
            ``(2) Investigations.--The Administrator shall conduct 
        periodic and unannounced inspections of security systems of 
        airports and air carriers to determine the effectiveness and 
        vulnerabilities of such systems. To the extent allowable by 
        law, the Administrator may provide for anonymous tests of those 
        security systems.''.
    (b) Clerical Amendment.--The table of sections for such chapter is 
amended by inserting after the item relating to section 44915 the 
following:

``44916. Assessments and evaluations.''.

SEC. 314. REPORT ON AIR CARGO.

    Within ---- days after the date of enactment of this Act, the 
Secretary of Transportation shall prepare a report for the Congress on 
any changes recommended and implemented as a result of the Vice 
President's Commission on Aviation Security to enhance and supplement 
screening and inspection of cargo, mail, and company-shipped materials 
transported in air commerce. The report shall include an assessment of 
the effectiveness of such changes, any additional recommendations, and, 
if necessary, any legislative proposals necessary to carry out 
additional changes.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. ACQUISITION OF HOUSING UNITS.

    Section 40110 is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Acquisition of Housing Units.--
            ``(1) Authority.--In carrying out this part, the 
        Administrator may acquire interests in housing units outside 
        the contiguous United States.
            ``(2) Continuing obligations.--Notwithstanding section 1341 
        of title 31, United States Code, the Administrator may acquire 
        an interest in a housing unit under paragraph (1) even if there 
        is an obligation thereafter to pay necessary and reasonable 
        fees duly assessed upon such unit, including fees related to 
        operation, maintenance, taxes, and insurance.
            ``(3) Certification to congress.--The Administrator may 
        acquire an interest in a housing unit under paragraph (1) only 
        if the Administrator transmits to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate at least 30 days before completing 
        the acquisition a report containing--
                    ``(A) a description of the housing unit and its 
                price; and
                    ``(B) a certification that acquiring the housing 
                unit is the most cost-beneficial means of providing 
                necessary accommodations in carrying out this part.
            ``(4) Payment of fees.--The Administrator may pay, when 
        due, fees resulting from the acquisition of an interest in a 
        housing unit under this subsection from any amounts made 
        available to the Administrator.''.

SEC. 402. PROTECTION OF VOLUNTARILY SUBMITTED INFORMATION.

    (a) In General.--Chapter 401 is amended by redesignating section 
40120 as section 40121 and by inserting after section 40119 the 
following:
``Sec. 40120. Protection of voluntarily submitted information
    ``(a) In General.--Notwithstanding any other provision of law, 
neither the Administrator of the Federal Aviation Administration, nor 
any agency receiving information from the Administrator, shall disclose 
voluntarily-provided safety or security related information if the 
Administrator finds that--
            ``(1) the disclosure of the information would inhibit the 
        voluntary provision of that type of information and that the 
        receipt of that type of information aids in fulfilling the 
        Administrator's safety and security responsibilities; and
            ``(2) withholding such information from disclosure would be 
        consistent with the Administrator's safety and security 
        responsibilities.
    ``(b) Regulations.--The Administrator shall issue regulations to 
carry out this section.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of chapter 401 is amended by striking the item relating to section 
40120 and inserting the following:

``40120. Protection of voluntarily submitted information.
``40121. Relationship to other laws.''.

SEC. 403. APPLICATION OF FAA REGULATIONS.

    In revising title 14, Code of Federal Regulations, in a manner 
affecting intrastate aviation in Alaska, the Administrator of the 
Federal Aviation Administration shall consider the extent to which 
Alaska is not served by transportation modes other than aviation, and 
shall establish such regulatory distinctions as the Administrator deems 
appropriate.

SEC. 404. SENSE OF THE SENATE REGARDING THE FUNDING OF THE FEDERAL 
              AVIATION ADMINISTRATION.

    (a) Findings.--The Senate finds that--
            (1) the Congress is responsible for ensuring that the 
        financial needs of the Federal Aviation Administration, the 
        agency that performs the critical function of overseeing the 
        Nation's air traffic control system and ensuring the safety of 
        air travelers in the United States, are met;
            (2) the number of air traffic control equipment and power 
        failures is increasing, which could place at risk the 
        reliability of our Nation's air traffic control system;
            (3) aviation excise taxes that constitute the Airport and 
        Airway Trust Fund, which provides most of the funding for the 
        Federal Aviation Administration, have expired;
            (4) the surplus in the Airport and Airway Trust Fund will 
        be spent by the Federal Aviation Administration by December 
        1996;
            (5) the existing system of funding the Federal Aviation 
        Administration will not provide the agency with sufficient 
        short-term or long-term funding;
            (6) this Act creates a sound process to review Federal 
        Aviation Administration funding and develop a funding system to 
        meet the Federal Aviation Administration's long-term funding 
        needs; and
            (7) without immediate action by the Congress to ensure that 
        the Federal Aviation Administration's financial needs are met, 
        air travelers' confidence in the system could be undermined.
    (b) Sense of the Senate.--It is the sense of the Senate that there 
should be an immediate enactment of an 18-month reinstatement of the 
aviation excise taxes to provide short-term funding for the Federal 
Aviation Administration.

SEC. 405. AUTHORIZATION FOR STATE-SPECIFIC SAFETY MEASURES.

    There are authorized to be appropriated to the Federal Aviation 
Administration not more than $10,000,000 for fiscal year 1997 for the 
purpose of addressing State-specific aviation safety problems 
identified by the National Transportation Safety Board.

SEC. 406. SENSE OF THE SENATE REGARDING THE AIR AMBULANCE EXEMPTION 
              FROM CERTAIN FEDERAL EXCISE TAXES.

    It is the sense of the Senate that, if the excise taxes imposed by 
section 4261 or 4271 of the Internal Revenue Code of 1986 are 
reinstated, the exemption from those taxes provided by section 4261(f) 
of such Code for air transportation by helicopter for the purpose of 
providing emergency medical services should be broadened to include air 
transportation by fixed-wing aircraft for that purpose.

SEC. 407. FAA SAFETY MISSION.

    (a) In General.--Section 40104 is amended--
            (1) by inserting ``safety of'' before ``air commerce'' in 
        the section caption;
            (2) by inserting ``Safety of'' before ``Air Commerce'' in 
        the caption of subsection (a); and
            (3) by and inserting ``safety of'' before ``air commerce'' 
        in subsection (a).
    (b) Clerical Amendment.--The table of sections for chapter 401 is 
amended by striking the item relating to section 40104 and inserting:

``40104. Promotion of civil aeronautics and air commerce safety.''.

SEC. 408. CARRIAGE OF CANDIDATES IN STATE AND LOCAL ELECTIONS.

    The Administrator of the Federal Aviation Administration shall 
revise section 91.321 of the Administration's regulations (14 C.F.R. 
91.321), relating to the carriage of candidates in Federal elections, 
to make the same or similar rules applicable to the carriage of 
candidates for election to public office in State and local government 
elections.

SEC. 409. TRAIN WHISTLE REQUIREMENTS.

    The Secretary of Transportation may not implement regulations 
issued under section 20153(b) of title 49, United States Code, 
requiring audible warnings to be sounded by a locomotive horn at 
highway-rail grade crossings, unless--
            (1) in implementing the regulations or providing an 
        exception to the regulations under section 20158(c) of such 
        title, the Secretary of Transportation takes into account, 
        among other criteria--
                    (A) the interest of the communities that, as of 
                July 30, 1996--
                            (i) have in effect restrictions on sounding 
                        of a locomotive horn at highway-rail grade 
                        crossings; or
                            (ii) have not been subject to the routine 
                        (as the term is defined by the Secretary) 
                        sounding of a locomotive horn at highway-rail 
                        grade crossings; and
                    (B) the past safety record at each grade crossing 
                involved; and
            (2) whenever the Secretary determines that supplementary 
        safety measures (as that term is defined in section 20153(a) of 
        title 49, United States Code) are necessary to provide an 
        exception referred to in paragraph (1), the Secretary--
                    (A) having considered the extent to which local 
                communities have established public awareness 
                initiatives and highway-rail crossing traffic law 
                enforcement programs allows for a period of not to 
                exceed 3 years, beginning on the date of that 
                determination, for the installation of those measures; 
                and
                    (B) works in partnership with affected communities 
                to provide technical assistance and to develop a 
                reasonable schedule for the installation of those 
                measures.

SEC. 410. LIMITATION ON AUTHORITY OF STATES TO REGULATE GAMBLING 
              DEVICES ON VESSELS.

    Subsection (b)(2) of section 5 of the Act of January 2, 1951 
(commonly referred to as the ``Johnson Act'') (64 Stat. 1135, chapter 
1194; 15 U.S.C. 1175), is amended by adding at the end the following:
                    ``(C) Exclusion of certain voyages and segments.--
                Except for a voyage or segment of a voyage that occurs 
                within the boundaries of the State of Hawaii, a voyage 
                or segment of a voyage is not described in subparagraph 
                (B) if such voyage or segment includes or consists of a 
                segment--
                            ``(i) that begins that ends in the same 
                        State;
                            ``(ii) that is part of a voyage to another 
                        State or to a foreign country; and
                            ``(iii) in which the vessel reaches the 
                        other State or foreign country within 3 days 
                        after leaving the State in which such segment 
                        begins.''.

SEC. 411. SPECIAL FLIGHT RULES IN THE VICINITY OF GRAND CANYON NATIONAL 
              PARK.

    The Secretary of Transportation, acting through the Administrator 
of the Federal Aviation Administration, shall take such action as may 
be necessary to provide 30 additional days for comment by interested 
persons on the special flight rules in the vicinity of Grand Canyon 
National Park described in the notice of proposed rulemaking issued on 
July 31, 1996, at 61 Fed. Reg. 40120 et seq.

SEC. 412. INCREASED FEES.

    Notwithstanding any other provision of law, the Surface 
Transportation Board shall not increase fees for services in connection 
with rail maximum rate complaints pursuant to 49 CFR part 1002, STB Ex 
Parte No. 542.

SEC. 413. TRANSFER OF AIR TRAFFIC CONTROL TOWER; CLOSING OF FLIGHT 
              SERVICE STATIONS.

    (a) Hickory, North Carolina Tower.--
            (1) Transfer.--The Administrator of the Federal Aviation 
        Administration may transfer any title, right, or interest the 
        United States has in the air traffic control tower located at 
        the Hickory Regional Airport to the City of Hickory, North 
        Carolina, for the purpose of enabling the city to provide air 
        traffic control services to operators of aircraft.
            (2) Study.--The Administrator shall conduct a study to 
        determine whether the number of operations at Hickory Regional 
        Airport meet the criteria for contract towers and shall certify 
        in writing to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on Commerce and 
        Infrastructure of the House of Representatives whether that 
        airport meets those criteria.
    (b) New Bern-Craven County Station.--The Administrator shall not 
close the New Bern-Craven County flight services station or the Hickory 
Regional Airport flight service station unless the Administrator 
certifies in writing to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives that such closure will 
not result in a derogation of air safety and that it will reduce costs 
to taxpayers.

SEC. 414. SENSE OF THE SENATE REGARDING ACTS OF INTERNATIONAL 
              TERRORISM.

    (a) Findings.--The Senate finds that--
            (1) there has been an intensification in the oppression and 
        disregard for human life among nations that are willing to 
        export terrorism;
            (2) there has been an increase in attempts by criminal 
        terrorists to murder airline passengers through the destruction 
        of civilian airliners and the deliberate fear and death 
        inflicted through bombings of buildings and the kidnapping of 
        tourists and Americans residing abroad; and
            (3) information widely available demonstrates that a 
        significant portion of international terrorist activity is 
        state-sponsored, -organized, -condoned, or -directed.
    (b) Sense of the Senate.--It is the sense of the Senate that if 
evidence establishes beyond a clear and reasonable doubt that any act 
of hostility towards any United States citizen was an act of 
international terrorism sponsored, organized, condoned, or directed by 
any nation, a state of war should be considered to exist or to have 
existed between the United States of America and that nation, beginning 
as of the moment that the act of aggression occurs.

SEC. 415. REPORTING FOR PROCUREMENT CONTRACTS.

    Section 47112 is amended by adding at the end the following new 
subsection:
    ``(d) Reporting for Procurement Contracts.--(1) The Secretary of 
Transportation shall promulgate regulations to require that each grant 
agreement that includes the awarding of any contract that includes 
Federal funds in an amount greater than or equal to $5,000,000 under 
this subchapter provides for a report to the Secretary that states--
            ``(A) the number of bids from qualified, responsive and 
        reasonable bidders that were in amounts lower than the amount 
        specified in the bid submitted by the bidder awarded the 
        contract;
            ``(B) for each bid referred to in subparagraph A (other 
        than the bid submitted by the bidder awarded the contract) the 
        amount by which the bid submitted by the bidder awarded the 
        contract exceeded the lower bid.
    ``(2) Applicability.--This subsection shall apply to grants 
referred to in this paragraph that are awarded on or after the date of 
enactment of this Act.''.

SEC. 416. PROVISIONS RELATING TO LIMITED SCOPE AUDIT.

    (a) In General.--Subparagraph (C) of section 103(a)(3) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1023(a)(3)(C)) is amended by adding at the end the following new 
clause:
                    ``(ii) If an accountant is offering his opinion 
                under this section in the case of an employee pension 
                benefit plan, the accountant shall, to the extent 
                consistent with generally accepted auditing standards, 
                rely on the work of any independent public accountant 
                of any bank or similar institution or insurance carrier 
                regulated and supervised and subject to periodic 
                investigation by a State or Federal agency that holds 
                assets or processes transactions of the employee 
                pension benefit plan.''.
    (b) Conforming Amendments.--
            (1) Section 103(a)(3)(A) of such Act (29 U.S.C. 
        1023(a)(3)(A)) is amended by striking ``subparagraph (C)'' and 
        inserting ``subparagraph (C)(i)''.
            (2) Section 103(a)(3)(C) of such Act (29 U.S.C. 
        1023(a)(3)(C)) is amended by striking ``(C) The'' and inserting 
        ``(C)(i) In the case of an employee benefit plan other than an 
        employee pension benefit plan, the''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to opinions required under section 103(a)(3)(A) of 
the Employee Retirement Income Security Act of 1974 for plan years 
beginning on or after January 1 of the calendar year following the date 
of the enactment of this Act.

SEC. 417. ADVANCE ELECTRONIC TRANSMISSION OF CARGO AND PASSENGER 
              INFORMATION.

    (a) Cargo Information.--
            (1) In general.--Section 431(b) of the Tariff Act of 1930 
        (19 U.S.C. 1431(b)) is amended--
                    (A) by striking ``Any manifest'' and inserting 
                ``(1) Any manifest'', and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2)(A) Every passenger air carrier required to make entry or to 
obtain clearance under the customs laws of the United States (or the 
authorized agent of such carrier) shall provide by electronic 
transmission cargo manifest information described in subparagraph (B) 
in advance of such entry or clearance in such manner as the Secretary 
shall prescribe.
    ``(B) The information described in this subparagraph is as follows:
            ``(i) The airport of arrival or departure, whichever is 
        appropriate.
            ``(ii) The airline prefix code.
            ``(iii) The carrier code.
            ``(iv) The flight number.
            ``(v) The date of scheduled arrival or date of departure, 
        whichever is appropriate.
            ``(vi) The permit to proceed to the destination, if 
        applicable.
            ``(vii) The master and house air waybill numbers and 
        quantities.
            ``(viii) The first airport of lading of the cargo.
            ``(ix) A description and weight of the cargo.
            ``(x) The shipper's name and address from all air waybills.
            ``(xi) The consignee name and address from all air 
        waybills.
            ``(xii) Notice that actual boarded quantities are not equal 
        to air waybill quantities.
            ``(xiii) Transfer or transit information.
            ``(xiv) Warehouse or other location of the cargo.
            ``(xv) Any other data that the Secretary may by regulation 
        prescribe.''.
            (2) Conforming amendment.--Subsection (d)(1)(A) of section 
        431 of such Act is amended by inserting before the semicolon 
        ``or subsection (b)(2)''.
    (b) Passenger Information.--The Part II of title IV of the Tariff 
Act of 1930 is amended by inserting after section 431 the following new 
section:

``SEC. 432. PASSENGER MANIFEST INFORMATION REQUIRED FOR AIR CARRIERS.

    ``(a) In General.--Every passenger air carrier required to make 
entry or obtain clearance under the customs laws of the United States 
(or the authorized agent of such carrier) shall provide by electronic 
transmission passenger manifest information described in subsection (b) 
in advance of such entry or clearance in such manner and form as the 
Secretary shall prescribe.
    ``(b) Information Described.--The information described in this 
subsection is as follows:
            ``(1) Full name of each passenger.
            ``(2) Date of birth and citizenship of each passenger.
            ``(3) Passport number and country of issuance of each 
        passenger.
            ``(4) Passenger name record.
            ``(5) Any additional data that the Secretary, by 
        regulation, determines is reasonably necessary to ensure 
        aviation safety pursuant to the Customs laws of the United 
        States.''.
    (c) Definition.--Section 401 of the Tariff Act of 1930 is amended 
by adding at the end the following new subsection:
    ``(t) Passenger Air Carrier.--The term `passenger air carrier' 
means an air carrier (as defined in section 40102(a)(2) of title 49, 
United States Code) or foreign air carrier (as defined in section 
40102(a)(21) of such title 49) that provides transportation of 
passengers to or from any place in the United States.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect 45 days after the date of the enactment of this Act.

            TITLE V--COMMERCIAL SPACE LAUNCH ACT AMENDMENTS

SEC. 501. COMMERCIAL SPACE LAUNCH AMENDMENTS.

    (a) Amendments.--Chapter 701 of title 49, United States Code, is 
amended--
            (1) in the table of sections--
                    (A) by amending the item relating to section 70104 
                to read as follows:

``70104. Restrictions on launches, operations, and reentries.'';
                    (B) by amending the item relating to section 70108 
                to read as follows:

``70108. Prohibition, suspension, and end of launches, operation of 
                            launch sites and reentry sites, and 
                            reentries.'';
                and
                    (C) by amending the item relating to section 70109 
                to read as follows:

``70109. Preemption of scheduled launches or reentries.'';
            (2) in section 70101--
                    (A) by inserting ``microgravity research,'' after 
                ``information services,'' in subsection (a)(3);
                    (B) by inserting ``, reentry,'' after ``launching'' 
                both places it appears in subsection (a)(4);
                    (C) by inserting ``, reentry vehicles,'' after 
                ``launch vehicles'' in subsection (a)(5);
                    (D) by inserting ``and reentry services`' after 
                ``launch services'' in subsection (a)(6);
                    (E) by inserting ``, reentries,'' after 
                ``launches'' both places it appears in subsection 
                (a)(7);
                    (F) by inserting ``, reentry sites,'' after 
                ``launch sites'' in subsection (a)(8);
                    (G) by inserting ``and reentry services'' after 
                ``launch services'' in subsection (a)(8);
                    (H) by inserting ``reentry sites,'' after ``launch 
                sites,'' in subsection (a)(9);
                    (I) by inserting ``and reentry site'' after 
                ``launch site'' in subsection (a)(9);
                    (J) by inserting ``reentry vehicles,'' after 
                ``launch vehicles'' in subsection (b)(2);
                    (K) by striking ``launch'' in subsection (b)(2)(A);
                    (L) by inserting ``and reentry'' after ``commercial 
                launch'' in subsection (b)(3);
                    (M) by striking ``launch'' after ``and transfer 
                commercial'' in subsection (b)(3); and
                    (N) by inserting ``and development of reentry 
                sites,'' after ``launch-site support facilities,'' in 
                subsection (b)(4);
            (3) in section 70102--
                    (A) by striking ``and any payload'' and inserting 
                in lieu thereof ``or reentry vehicle and any payload 
                from Earth'' in paragraph (3);
                    (B) by inserting ``or reentry vehicle'' after 
                ``means of a launch vehicle'' in paragraph (8);
                    (C) by redesignating paragraphs (10) through (12) 
                as paragraphs (14) through (16), respectively;
                    (D) by inserting after paragraph (9) the following 
                new paragraphs:
            ``(10) `reenter' and `reentry' mean to return or attempt to 
        return, purposefully, a reentry vehicle and its payload, if 
        any, from Earth orbit or from outer space to Earth.
            ``(11) `reentry services' means--
                    ``(A) activities involved in the preparation of a 
                reentry vehicle and its payload, if any, for reentry; 
                and
                    ``(B) the conduct of a reentry.
            ``(12) `reentry site' means the location on Earth to which 
        a reentry vehicle is intended to return (as defined in a 
        license the Secretary issues or transfers under this chapter).
            ``(13) `reentry vehicle' means a vehicle designed to return 
        from Earth orbit or outer space to Earth, or a reusable launch 
        vehicle designed to return from outer space substantially 
        intact.''; and
                    (E) by inserting ``or reentry services'' after 
                ``launch services'' each place it appears in paragraph 
                (15), as so redesignated by subparagraph (C) of this 
                paragraph;
            (4) in section 70103(b)--
                    (A) by inserting ``and Reentries'' after 
                ``Launches'' in the subsection heading;
                    (B) by inserting ``and reentries'' after ``space 
                launches'' in paragraph (1); and
                    (C) by inserting ``and reentry'' after ``space 
                launch'' in paragraph (2);
            (5) in section 70104--
                    (A) by amending the section designation and heading 
                to read as follows:
``Sec. 70104. Restrictions on launches, operations, and reentries'';
                    (B) by inserting ``or reentry site, or to reenter a 
                reentry vehicle,'' after ``operate a launch site'' each 
                place it appears in subsection (a);
                    (C) by inserting ``or reentry'' after ``launch or 
                operation'' in subsection (a)(3) and (4);
                    (D) in subsection (b)--
                            (i) by striking ``launch license'' and 
                        inserting in lieu thereof ``license'';
                            (ii) by inserting ``or reenter'' after 
                        ``may launch''; and
                            (iii) by inserting ``or reentering'' after 
                        ``related to launching''; and
                    (E) in subsection (c)--
                            (i) by amending the subsection heading to 
                        read as follows: ``Preventing Launches and 
                        Reentries.--'';
                            (ii) by inserting ``or reentry'' after 
                        ``prevent the launch''; and
                            (iii) by inserting ``or reentry'' after 
                        ``decides the launch'';
            (6) in section 70105--
                    (A) by inserting ``or a reentry site, or the 
                reentry of a reentry vehicle,'' after ``operation of a 
                launch site'' in subsection (b)(1); and
                    (B) by striking ``or operation'' and inserting in 
                lieu thereof ``, operation, or reentry'' in subsection 
                (b)(2)(A);
            (7) in section 70106(a)--
                    (A) by inserting ``or reentry site'' after 
                ``observer at a launch site'';
                    (B) by inserting ``or reentry vehicle'' after 
                ``assemble a launch vehicle''; and
                    (C) by inserting ``or reentry vehicle'' after 
                ``with a launch vehicle'';
            (8) in section 70108--
                    (A) by amending the section designation and heading 
                to read as follows:
``Sec. 70108. Prohibition, suspension, and end of launches, operation 
              of launch sites and reentry sites, and reentries'';
                and
                    (B) in subsection (a)--
                            (i) by inserting ``or reentry site, or 
                        reentry of a reentry vehicle,'' after 
                        ``operation of a launch site''; and
                            (ii) by inserting ``or reentry'' after 
                        ``launch or operation'';
            (9) in section 70109--
                    (A) by amending the section designation and heading 
                to read as follows:
``Sec. 70109. Preemption of scheduled launches or reentries'';
                    (B) in subsection (a)--
                            (i) by inserting ``or reentry'' after 
                        ``ensure that a launch'';
                            (ii) by inserting ``, reentry site,'' after 
                        ``United States Government launch site'';
                            (iii) by inserting ``or reentry date 
                        commitment'' after ``launch date commitment'';
                            (iv) by inserting ``or reentry'' after 
                        ``obtained for a launch'';
                            (v) by inserting ``, reentry site,'' after 
                        ``access to a launch site'';
                            (vi) by inserting ``, or services related 
                        to a reentry,'' after ``amount for launch 
                        services''; and
                            (vii) by inserting ``or reentry'' after 
                        ``the scheduled launch''; and
                    (C) in subsection (c), by inserting ``or reentry'' 
                after ``prompt launching'';
            (10) in section 70110--
                    (A) by inserting ``or reentry'' after ``prevent the 
                launch'' in subsection (a)(2); and
                    (B) by inserting ``or reentry site, or reentry of a 
                reentry vehicle,'' after ``operation of a launch site'' 
                in subsection (a)(3)(B);
            (11) in section 70111--
                    (A) by inserting ``or reentry'' after ``launch'' in 
                subsection (a)(1)(A);
                    (B) by inserting ``and reentry services'' after 
                ``launch services'' in subsection (a)(1)(B);
                    (C) by inserting ``or reentry services'' after ``or 
                launch services'' in subsection (a)(2);
                    (D) by inserting ``or reentry'' after ``commercial 
                launch'' both places it appears in subsection (b)(1);
                    (E) by inserting ``or reentry services'' after 
                ``launch services'' in subsection (b)(2)(C);
                    (F) by striking ``or its payload for launch'' in 
                subsection (d) and inserting in lieu thereof ``or 
                reentry vehicle, or the payload of either, for launch 
                or reentry''; and
                    (G) by inserting ``, reentry vehicle,'' after 
                ``manufacturer of the launch vehicle'' in subsection 
                (d);
            (12) in section 70112--
                    (A) by inserting ``or reentry'' after ``one 
                launch'' in subsection (a)(3);
                    (B) by inserting ``or reentry services'' after 
                ``launch services'' in subsection (a)(4);
                    (C) by inserting ``or reentry services'' after 
                ``launch services'' each place it appears in subsection 
                (b);
                    (D) by inserting ``applicable'' after ``carried out 
                under the'' in paragraphs (1) and (2) of subsection 
                (b);
                    (E) by striking ``, Space, and Technology'' in 
                subsection (d)(1);
                    (F) by inserting ``or Reentries'' after 
                ``Launches'' in the heading for subsection (e); and
                    (G) by inserting ``or reentry site or a reentry'' 
                after ``launch site'' in subsection (e);
            (13) in section 70113(a)(1) and (d)(1) and (2), by 
        inserting ``or reentry'' after ``one launch'' each place it 
        appears;
            (14) in section 70115(b)(1)(D)(i)--
                    (A) by inserting ``reentry site,'' after ``launch 
                site,''; and
                    (B) by inserting ``or reentry vehicle'' after 
                ``launch vehicle'' both places it appears; and
            (15) in section 70117--
                    (A) by inserting ``or reentry site, or to reenter a 
                reentry vehicle'' after ``operate a launch site'' in 
                subsection (a);
                    (B) by inserting ``or reentry'' after ``approval of 
                a space launch'' in subsection (d);
                    (C) by amending subsection (f) to read as follows:
    ``(f) Launch Not an Export; Reentry Not an Import.--A launch 
vehicle, reentry vehicle, or payload that is launched or reentered is 
not, because of the launch or reentry, an export or import, 
respectively, for purposes of a law controlling exports or imports.''; 
and
                    (D) in subsection (g)--
                            (i) by striking ``operation of a launch 
                        vehicle or launch site,'' in paragraph (1) and 
                        inserting in lieu thereof ``reentry, operation 
                        of a launch vehicle or reentry vehicle, or 
                        operation of a launch site or reentry site,''; 
                        and
                            (ii) by inserting ``reentry,'' after 
                        ``launch,'' in paragraph (2).
    (b) Additional Amendments.--(1) Section 70105 of title 49, United 
States Code, is amended--
            (A) by inserting ``(1)'' before ``A person may apply'' in 
        subsection (a);
            (B) by striking ``receiving an application'' both places it 
        appears in subsection (a) and inserting in lieu thereof 
        ``accepting an application in accordance with criteria 
        established pursuant to subsection (b)(2)(D)'';
            (C) by adding at the end of subsection (a) the following 
        new paragraph:
    ``(2) In carrying out paragraph (1), the Secretary may establish 
procedures for certification of the safety of a launch vehicle, reentry 
vehicle, or safety system, procedure, service, or personnel that may be 
used in conducting licensed commercial space launch or reentry 
activities.'';
            (D) by striking ``and'' at the end of subsection (b)(2)(B);
            (E) by striking the period at the end of subsection 
        (b)(2)(C) and inserting in lieu thereof ``; and'';
            (F) by adding at the end of subsection (b)(2) the following 
        new subparagraph:
            ``(D) regulations establishing criteria for accepting or 
        rejecting an application for a license under this chapter 
        within 60 days after receipt of such application.''; and
            (G) by inserting ``, or the requirement to obtain a 
        license,'' after ``waive a requirement'' in subsection (b)(3).
    (2) The amendment made by paragraph (1)(B) shall take effect upon 
the effective date of final regulations issued pursuant to section 
70105(b)(2)(D) of title 49, United States Code, as added by paragraph 
(1)(F) of this subsection.
    (3) Section 70102(5) of title 49, United States Code, is amended--
            (A) by redesignating subparagraphs (A) and (B) as 
        subparagraphs (B) and (C), respectively; and
            (B) by inserting before subparagraph (B), as so 
        redesignated by subparagraph (A) of this paragraph, the 
        following new subparagraph:
                    ``(A) activities directly related to the 
                preparation of a launch site or payload facility for 
                one or more launches;''.
    (4) Section 70103(b) of title 49, United States Code, is amended--
            (A) in the subsection heading, as amended by subsection 
        (a)(4)(A) of this section, by inserting ``and State Sponsored 
        Spaceports'' after ``and Reentries''; and
            (B) in paragraph (1), by inserting `'and State sponsored 
        spaceports'' after ``private sector''.
    (5) Section 70105(a)(1) of title 49, United States Code, as amended 
by subsection (b)(1) of this section, is amended by inserting at the 
end the following: ``The Secretary shall submit to the Committee on 
Science of the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a written notice not later 
than 7 days after any occurrence when a license is not issued within 
the deadline established by this subsection.''.
    (6) Section 70111 of title 49, United States Code, is amended--
            (A) in subsection (a)(1), by inserting after subparagraph 
        (B) the following:
``The Secretary shall establish criteria and procedures for determining 
the priority of competing requests from the private sector and State 
governments for property and services under this section.'';
            (B) by striking ``actual costs'' in subsection (b)(1) and 
        inserting in lieu thereof ``additive costs only''; and
            (C) by inserting after subsection (b)(2) the following new 
        paragraph:
    ``(3) The Secretary shall ensure the establishment of uniform 
guidelines for, and consistent implementation of, this section by all 
Federal agencies.''.
    (7) Section 70112 of title 49, United States Code, is amended--
            (A) in subsection (a)(1), by inserting ``launch, reentry, 
        or site operator'' after ``(1) When a'';
            (B) in subsection (b)(1), by inserting ``launch, reentry, 
        or site operator'' after ``(1)A''; and
            (C) in subsection (f), by inserting ``launch, reentry, or 
        site operator'' after ``carried out under a''.
    (c) Regulations.--(1) Chapter 701 of title 49, United States Code, 
is amended by adding at the end the following new section:
``Sec. 70120. Regulations
    ``The Secretary of Transportation, within 6 months after the date 
of the enactment of this section, shall issue regulations to carry out 
this chapter that include--
            ``(1) guidelines for industry to obtain sufficient 
        insurance coverage for potential damages to third parties;
            ``(2) procedures for requesting and obtaining licenses to 
        operate a commercial launch vehicle and reentry vehicle;
            ``(3) procedures for requesting and obtaining operator 
        licenses for launch and reentry; and
            ``(4) procedures for the application of government 
        indemnification.''.
    (2) The table of sections for such chapter 701 is amended by adding 
after the item relating to section 70119 the following new item:

``70120. Regulations.''.

  TITLE VI--AIR TRAFFIC MANAGEMENT SYSTEM PERFORMANCE IMPROVEMENT ACT

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Air Traffic Management System 
Performance Improvement Act of 1996''.

SEC. 602. DEFINITIONS.

    For the purposes of this title, the following definitions shall 
apply:
            (1) Administration.--The term ``Administration'' means the 
        Federal Aviation Administration.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Aviation Administration.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.

SEC. 603. EFFECTIVE DATE.

    The provisions of this title and the amendments made by this title 
shall take effect on the date that is 30 days after the date of the 
enactment of this Act.

                     Subtitle A--General Provisions

SEC. 621. FINDINGS.

    The Congress finds the following:
            (1) In many respects the Administration is a unique agency, 
        being one of the few non-defense government agencies that 
        operates 24 hours a day, 365 days of the year, while continuing 
        to rely on outdated technology to carry out its 
        responsibilities for a state-of-the-art industry.
            (2) Until January 1, 1996, users of the air transportation 
        system paid 70 percent of the budget of the Administration, 
        with the remaining 30 percent coming from the General Fund. The 
        General Fund contribution over the years is one measure of the 
        benefit received by the general public, military, and other 
        users of Administration's services.
            (3) The Administration must become a more efficient, 
        effective, and different organization to meet future 
        challenges.
            (4) The need to balance the Federal budget means that it 
        may become more and more difficult to obtain sufficient General 
        Fund contributions to meet the Administration's future budget 
        needs.
            (5) Congress must keep its commitment to the users of the 
        national air transportation system by seeking to spend all 
        moneys collected from them each year and deposited into the 
        Airport and Airway Trust Fund. Existing surpluses representing 
        past receipts must also be spent for the purposes for which 
        such funds were collected.
            (6) The aviation community and the employees of the 
        Administration must come together to improve the system. The 
        Administration must continue to recognize who its customers are 
        and what their needs are, and to design and redesign the system 
        to make safety improvements and increase productivity.
            (7) The Administration projects that commercial operations 
        will increase by 18 percent and passenger traffic by 35 percent 
        by the year 2002. Without effective airport expansion and 
        system modernization, these needs cannot be met.
            (8) Absent significant and meaningful reform, future 
        challenges and needs cannot be met.
            (9) The Administration must have a new way of doing 
        business.
            (10) There is widespread agreement within government and 
        the aviation industry that reform of the Administration is 
        essential to safely and efficiently accommodate the projected 
        growth of aviation within the next decade.
            (11) To the extent that the Congress determines that 
        certain segments of the aviation community are not required to 
        pay all of the costs of the government services which they 
        require and benefits which they receive, the Congress should 
        appropriate the difference between such costs and any receipts 
        received from such segment.
            (12) Prior to the imposition of any new charges or user 
        fees on segments of the industry, an independent review must be 
        performed to assess the funding needs and assumptions for 
        operations, capital spending, and airport infrastructure.
            (13) An independent, thorough, and complete study and 
        assessment must be performed of the costs to the Administration 
        and the costs driven by each segment of the aviation system for 
        safety and operational services, including the use of the air 
        traffic control system and the Nation's airports.
            (14) Because the Administration is a unique Federal entity 
        in that it is a participant in the daily operations of an 
        industry, and because the national air transportation system 
        faces significant problems without significant changes, the 
        Administration has been authorized to change the Federal 
        procurement and personnel systems to ensure that the 
        Administration has the ability to keep pace with new technology 
        and is able to match resources with the real personnel needs of 
        the Administration.
            (15) The existing budget system does not allow for long-
        term planning or timely acquisition of technology by the 
        Administration.
            (16) Without reforms in the areas of procurement, 
        personnel, funding, and governance, the Administration will 
        continue to experience delays and cost overruns in its major 
        modernization programs and needed improvements in the 
        performance of the air traffic management system will not 
        occur.
            (17) All reforms should be designed to help the 
        Administration become more responsive to the needs of its 
        customers and maintain the highest standards of safety.

SEC. 622. PURPOSES.

    The purposes of this title are--
            (1) to ensure that final action shall be taken on all 
        notices of proposed rulemaking of the Administration within 18 
        months after the date of their publication;
            (2) to permit the Administration, with Congressional 
        review, to establish a program to improve air traffic 
        management system performance and to establish appropriate 
        levels of cost accountability for air traffic management 
        services provided by the Administration;
            (3) to establish a more autonomous and accountable 
        Administration within the Department of Transportation; and
            (4) to make the Administration a more efficient and 
        effective organization, able to meet the needs of a dynamic, 
        growing industry, and to ensure the safety of the traveling 
        public.

SEC. 623. REGULATION OF CIVILIAN AIR TRANSPORTATION AND RELATED 
              SERVICES BY THE FEDERAL AVIATION ADMINISTRATION AND 
              DEPARTMENT OF TRANSPORTATION.

    (a) In General.--Section 106 is amended--
            (1) by striking ``The Administrator'' in the fifth sentence 
        of subsection (b) and inserting ``Except as provided in 
        subsection (f) of this section or in other provisions of law, 
        the Administrator''; and
            (2) by striking subsection (f) and inserting the following:
    ``(f) Authority of the Secretary and the Administrator.--
            ``(1) Authority of the secretary.--Except as provided in 
        paragraph (2), the Secretary of Transportation shall carry out 
        the duties and powers of the Administration.
            ``(2) Authority of the administrator.--The Administrator--
                    ``(A) is the final authority for carrying out all 
                functions, powers, and duties of the Administration 
                relating to--
                            ``(i) except as otherwise provided in 
                        paragraph (3), the promulgation of regulations, 
                        rules, orders, circulars, bulletins, and other 
                        official publications of the Administration; 
                        and
                            ``(ii) any obligation imposed on the 
                        Administrator, or power conferred on the 
                        Administrator, by the Air Traffic Management 
                        System Performance Improvement Act of 1996 (or 
                        any amendment made by that Act);
                    ``(B) shall offer advice and counsel to the 
                President with respect to the appointment and 
                qualifications of any officer or employee of the 
                Administration to be appointed by the President or as a 
                political appointee;
                    ``(C) may delegate, and authorize successive 
                redelegations of, to an officer or employee of the 
                Administration any function, power, or duty conferred 
                upon the Administrator, unless such delegation is 
                prohibited by law; and
                    ``(D) except as otherwise provided for in this 
                title, and notwithstanding any other provision of law 
                to the contrary, shall not be required to coordinate, 
                submit for approval or concurrence, or seek the advice 
                or views of the Secretary or any other officer or 
                employee of the Department of Transportation on any 
                matter with respect to which the Administrator is the 
                final authority.
            ``(3) Definition of political appointee.--For purposes of 
        this subsection, the term `political appointee' means any 
        individual who--
                    ``(A) is employed in a position on the Executive 
                Schedule under sections 5312 through 5316 of title 5;
                    ``(B) is a limited term appointee, limited 
                emergency appointee, or noncareer appointee in the 
                Senior Executive Service as defined under section 
                3132(a) (5), (6), and (7) of title 5, respectively; or
                    ``(C) is employed in a position in the executive 
                branch of the Government of a confidential or policy-
                determining character under Schedule C of subpart C of 
                part 213 of title 5 of the Code of Federal 
                Regulations.''.
    (b) Preservation of Existing Authority.--Nothing in this title or 
the amendments made by this title limits any authority granted to the 
Administrator by statute or by delegation that was in effect on the day 
before the date of enactment of this Act.

SEC. 624. REGULATIONS.

    Section 106(f), as amended by section 623, is further amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Regulations.--
                    ``(A) In general.--In the performance of the 
                functions of the Administrator and the Administration, 
                the Administrator is authorized to issue, rescind, and 
                revise such regulations as are necessary to carry out 
                those functions. The issuance of such regulations shall 
                be governed by the provisions of chapter 5 of title 5. 
                The Administrator shall act upon all petitions for 
                rulemaking no later than 6 months after the date such 
                petitions are filed by dismissing such petitions, by 
                informing the petitioner of an intention to dismiss, or 
                by issuing a notice of proposed rulemaking or advanced 
                notice of proposed rulemaking. The Administrator shall 
                issue a final regulation, or take other final action, 
                not later than 18 months after the date of publication 
                in the Federal Register of a notice of proposed 
                rulemaking or, in the case of an advanced notice of 
                proposed rulemaking, if issued, not later than 24 
                months after that date.
                    ``(B) Approval of secretary of transportation.--
                            ``(i) The Administrator may not issue a 
                        proposed regulation or final regulation that is 
                        likely to result in the expenditure by State, 
                        local, and tribal governments in the aggregate, 
                        or by the private sector, of $50,000,000 or 
                        more (adjusted annually for inflation beginning 
                        with the year following the date of enactment 
                        of the Air Traffic Management System 
                        Performance Improvement Act of 1996) in any 1 
                        year, or any regulation which is significant, 
                        unless the Secretary of Transportation approves 
                        the issuance of the regulation in advance. For 
                        purposes of this paragraph, a regulation is 
                        significant if it is likely to--
                                    ``(I) have an annual effect on the 
                                economy of $100,000,000 or more or 
                                adversely affect in a material way the 
                                economy, a sector of the economy, 
                                productivity, competition, jobs, the 
                                environment, public health or safety, 
                                or State, local, or tribal governments 
                                or communities;
                                    ``(II) create a serious 
                                inconsistency or otherwise interfere 
                                with an action taken or planned by 
                                another agency;
                                    ``(III) materially alter the 
                                budgetary impact of entitlements, 
                                grants, user fees, or loan programs or 
                                the rights and obligations of 
                                recipients thereof; or
                                    ``(IV) raise novel legal or policy 
                                issues arising out of legal mandates.
                            ``(ii) In an emergency, the Administrator 
                        may issue a regulation described in clause (i) 
                        without prior approval by the Secretary, but 
                        any such emergency regulation is subject to 
                        ratification by the Secretary after it is 
                        issued and shall be rescinded by the 
                        Administrator within 5 days (excluding 
                        Saturdays, Sundays, and legal public holidays) 
                        after issuance if the Secretary fails to ratify 
                        its issuance.
                            ``(iii) Any regulation that does not meet 
                        the criteria of clause (i), and any regulation 
                        or other action that is a routine or frequent 
                        action or a procedural action, may be issued by 
                        the Administrator without review or approval by 
                        the Secretary.
                            ``(iv) The Administrator shall submit a 
                        copy of any regulation requiring approval by 
                        the Secretary under clause (i) to the 
                        Secretary, who shall either approve it or 
                        return it to the Administrator with comments 
                        within 45 days after receiving it.
                    ``(C) Periodic review.--(i) Beginning on the date 
                which is 3 years after the date of enactment of the Air 
                Traffic Management System Performance Improvement Act 
                of 1996, the Administrator shall review any unusually 
                burdensome regulation issued by the Administrator after 
                the date of enactment of the Air Traffic Management 
                System Performance Improvement Act of 1996 beginning 
                not later than 3 years after the effective date of the 
                regulation to determine if the cost assumptions were 
                accurate, the benefit of the regulations, and the need 
                to continue such regulations in force in their present 
                form.
                    ``(ii) The Administrator may identify for review 
                under the criteria set forth in clause (i) unusually 
                burdensome regulations that were issued before the date 
                of enactment of the Air Traffic Management System 
                Performance Improvement Act of 1996 and that have been 
                in force for more than 3 years.
                    ``(iii) For purposes of this subparagraph, the term 
                `unusually burdensome regulation' means any regulation 
                that results in the annual expenditure by State, local, 
                and tribal governments in the aggregate, or by the 
                private sector, of $25,000,000 or more (adjusted 
                annually for inflation beginning with the year 
                following the date of enactment of the Air Traffic 
                Management System Performance Act of 1996) in any year.
                    ``(iv) The periodic review of regulations may be 
                performed by advisory committees and the Management 
                Advisory Council established under subsection (p).''.

SEC. 625. PERSONNEL AND SERVICES.

    Section 106 is amended by adding at the end the following new 
subsection:
    ``(l) Personnel and Services.--
            ``(1) Officers and employees.--Except as provided in 
        section 40121(a) of this title and section 347 of Public Law 
        104-50, the Administrator is authorized, in the performance of 
        the functions of the Administrator, to appoint, transfer, and 
        fix the compensation of such officers and employees, including 
        attorneys, as may be necessary to carry out the functions of 
        the Administrator and the Administration. In fixing 
        compensation and benefits of officers and employees, the 
        Administrator shall not engage in any type of bargaining, 
        except to the extent provided for in section 40121(a), nor 
        shall the Administrator be bound by any requirement to 
        establish such compensation or benefits at particular levels.
            ``(2) Experts and consultants.--The Administrator is 
        authorized to obtain the services of experts and consultants in 
        accordance with section 3109 of title 5.
            ``(3) Transportation and per diem expenses.--The 
        Administrator is authorized to pay transportation expenses, and 
        per diem in lieu of subsistence expenses, in accordance with 
        chapter 57 of title 5.
            ``(4) Use of personnel from other agencies.--The 
        Administrator is authorized to utilize the services of 
        personnel of any other Federal agency (as such term is defined 
        under section 551(1) of title 5).
            ``(5) Voluntary services.--
                    ``(A) In general.--(i) In exercising the authority 
                to accept gifts and voluntary services under section 
                326 of this title, and without regard to section 1342 
                of title 31, the Administrator may not accept voluntary 
                and uncompensated services if such services are used to 
                displace Federal employees employed on a full-time, 
                part-time, or seasonal basis.
                    ``(ii) The Administrator is authorized to provide 
                for incidental expenses, including transportation, 
                lodging, and subsistence for volunteers who provide 
                voluntary services under this subsection.
                    ``(iii) An individual who provides voluntary 
                services under this subsection shall not be considered 
                a Federal employee for any purpose other than for 
                purposes of chapter 81 of title 5, relating to 
                compensation for work injuries, and chapter 171 of 
                title 28, relating to tort claims.''.

SEC. 626. CONTRACTS.

    Section 106(l), as added by section 625 of this title, is amended 
by adding at the end the following new paragraph:
            ``(6) Contracts.--The Administrator is authorized to enter 
        into and perform such contracts, leases, cooperative 
        agreements, or other transactions as may be necessary to carry 
        out the functions of the Administrator and the Administration. 
        The Administrator may enter into such contracts, leases, 
        cooperative agreements, and other transactions with any Federal 
        agency (as such term is defined in section 551(1) of title 5) 
        or any instrumentality of the United States, any State, 
        territory, or possession, or political subdivision thereof, any 
        other governmental entity, or any person, firm, association, 
        corporation, or educational institution, on such terms and 
        conditions as the Administrator may consider appropriate.''.

SEC. 627. FACILITIES.

    Section 106, as amended by section 625 of this title, is further 
amended by adding at the end the following new subsection:
    ``(m) Cooperation by Administrator.--With the consent of 
appropriate officials, the Administrator may, with or without 
reimbursement, use or accept the services, equipment, personnel, and 
facilities of any other Federal agency (as such term is defined in 
section 551(1) of title 5) and any other public or private entity. The 
Administrator may also cooperate with appropriate officials of other 
public and private agencies and instrumentalities concerning the use of 
services, equipment, personnel, and facilities. The head of each 
Federal agency shall cooperate with the Administrator in making the 
services, equipment, personnel, and facilities of the Federal agency 
available to the Administrator. The head of a Federal agency is 
authorized, notwithstanding any other provision of law, to transfer to 
or to receive from the Administration, without reimbursement, supplies 
and equipment other than administrative supplies or equipment.''.

SEC. 628. PROPERTY.

    Section 106, as amended by section 627 of this title, is further 
amended by adding at the end the following new subsection:
    ``(n) Acquisition.--
            ``(1) In general.--The Administrator is authorized--
                    ``(A) to acquire (by purchase, lease, condemnation, 
                or otherwise), construct, improve, repair, operate, and 
                maintain--
                            ``(i) air traffic control facilities and 
                        equipment;
                            ``(ii) research and testing sites and 
                        facilities; and
                            ``(iii) such other real and personal 
                        property (including office space and patents), 
                        or any interest therein, within and outside the 
                        continental United States as the Administrator 
                        considers necessary;
                    ``(B) to lease to others such real and personal 
                property; and
                    ``(C) to provide by contract or otherwise for 
                eating facilities and other necessary facilities for 
                the welfare of employees of the Administration at the 
                installations of the Administration, and to acquire, 
                operate, and maintain equipment for these facilities.
            ``(2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by the 
        Government of the United States.''.

SEC. 629. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

    Section 106, as amended by section 628 of this title, is further 
amended by adding at the end the following new subsection:
    ``(o) Transfers of Funds.--The Administrator is authorized to 
accept transfers of unobligated balances and unexpended balances of 
funds appropriated to other Federal agencies (as such term is defined 
in section 551(1) of title 5) to carry out functions transferred by law 
to the Administrator or functions transferred pursuant to law to the 
Administrator on or after the date of the enactment of the Air Traffic 
Management System Performance Improvement Act of 1996.''.

SEC. 630. MANAGEMENT ADVISORY COUNCIL.

    Section 106, as amended by section 629 of this title, is further 
amended by adding at the end the following new subsection:
    ``(p) Management Advisory Council.--
            ``(1) Establishment.--Within 3 months after the date of 
        enactment of the Air Traffic Management System Performance 
        Improvement Act of 1996, the Administrator shall establish an 
        advisory council which shall be known as the Federal Aviation 
        Management Advisory Council (in this subsection referred to as 
        the `Council'). With respect to Administration management, 
        policy, spending, funding, and regulatory matters affecting the 
        aviation industry, the Council may submit comments, recommended 
        modifications, and dissenting views to the Administrator. The 
        Administrator shall include in any submission to Congress, the 
        Secretary, or the general public, and in any submission for 
        publication in the Federal Register, a description of the 
        comments, recommended modifications, and dissenting views 
        received from the Council, together with the reasons for any 
        differences between the views of the Council and the views or 
        actions of the Administrator.
            ``(2) Membership.--The Council shall consist of 15 members, 
        who shall consist of--
                    ``(A) a designee of the Secretary of 
                Transportation;
                    ``(B) a designee of the Secretary of Defense; and
                    ``(C) 13 members representing aviation interests, 
                appointed by the President by and with the advice and 
                consent of the Senate.
            ``(3) Qualifications.--No member appointed under paragraph 
        (2)(C) may serve as an officer or employee of the United States 
        Government while serving as a member of the Council.
            ``(4) Functions.--
                    ``(A) In general.--(i) The Council shall provide 
                advice and counsel to the Administrator on issues which 
                affect or are affected by the operations of the 
                Administrator. The Council shall function as an 
                oversight resource for management, policy, spending, 
                and regulatory matters under the jurisdiction of the 
                Administration.
                    ``(ii) The Council shall review the rulemaking 
                cost-benefit analysis process and develop 
                recommendations to improve the analysis and ensure that 
                the public interest is fully protected.
                    ``(iii) The Council shall review the process 
                through which the Administration determines to use 
                advisory circulars and service bulletins.
                    ``(B) Meetings.--The Council shall meet on a 
                regular and periodic basis or at the call of the 
                chairman or of the Administrator.
                    ``(C) Access to documents and staff.--The 
                Administration may give the Council appropriate access 
                to relevant documents and personnel of the 
                Administration, and the Administrator shall make 
                available, consistent with the authority to withhold 
                commercial and other proprietary information under 
                section 552 of title 5 (commonly known as the `Freedom 
                of Information Act'), cost data associated with the 
                acquisition and operation of air traffic service 
                systems. Any member of the Council who receives 
                commercial or other proprietary data from the 
                Administrator shall be subject to the provisions of 
                section 1905 of title 18, pertaining to unauthorized 
                disclosure of such information.
            ``(5) Federal advisory committee act not to apply.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) does not apply 
        to the Council or such aviation rulemaking committees as the 
        Administrator shall designate.
            ``(6) Administrative matters.--
                    ``(A) Terms of members.--(i) Except as provided in 
                subparagraph (B), members of the Council appointed by 
                the President under paragraph (2)(C) shall be appointed 
                for a term of 3 years.
                    ``(ii) Of the members first appointed by the 
                President--
                            ``(I) 4 shall be appointed for terms of 1 
                        year;
                            ``(II) 5 shall be appointed for terms of 2 
                        years; and
                            ``(III) 4 shall be appointed for terms of 3 
                        years.
                    ``(iii) An individual chosen to fill a vacancy 
                shall be appointed for the unexpired term of the member 
                replaced.
                    ``(iv) A member whose term expires shall continue 
                to serve until the date on which the member's successor 
                takes office.
                    ``(B) Chairman; vice chairman.--The Council shall 
                elect a chair and a vice chair from among the members 
                appointed under paragraph (2)(C), each of whom shall 
                serve for a term of 1 year. The vice chair shall 
                perform the duties of the chairman in the absence of 
                the chairman.
                    ``(C) Travel and per diem.--Each member of the 
                Council shall be paid actual travel expenses, and per 
                diem in lieu of subsistence expenses when away from his 
                or her usual place of residence, in accordance with 
                section 5703 of title 5.
                    ``(D) Detail of personnel from the 
                administration.--The Administrator shall make available 
                to the Council such staff, information, and 
                administrative services and assistance as may 
                reasonably be required to enable the Council to carry 
                out its responsibilities under this subsection.
            ``(7) Report to Congress.--The Council, in conjunction with 
        the Administration, shall undertake a review of the overall 
        condition of aviation safety in the United States and emerging 
        trends in the safety of particular sections of the aviation 
        industry. This shall include an examination of--
                    ``(A) the extent to which the dual mission of the 
                Administration to promote and regulate civil aviation 
                may affect aviation safety and provide recommendations 
                to Congress for any necessary changes the Council, in 
                conjunction with Administration, deems appropriate; and
                    ``(B) the adequacy of staffing and training 
                resources for safety personnel of the Administration, 
                including safety inspectors.
        The Council shall report to Congress within 180 days after the 
        date of enactment of this Act on its findings and 
        recommendations under this paragraph.

SEC. 631. AIRCRAFT ENGINE STANDARDS.

    Subsection (a)(1) of section 44715 is amended to read as follows:
    ``(a) Standards and Regulations.--(1) To relieve and protect the 
public health and welfare from aircraft noise, sonic boom, the 
Administrator of the Federal Aviation Administration, as he deems 
necessary, shall prescribe--
            ``(A) standards to measure aircraft noise and sonic boom;
            ``(B) regulations to control and abate aircraft noise and 
        sonic boom; and
            ``(C)(i) the Environmental Protection Agency shall consult 
        with the Federal Aviation Administration on aircraft engine 
        emission standards;
            ``(ii) the Environmental Protection Agency shall not change 
        the aircraft engine emission standards if such change would 
        significantly increase noise and adversely affect safety;
            ``(iii) the Administrator, as the Administrator deems 
        appropriate, shall provide for the participation of a 
        representative of the Environmental Protection Agency on such 
        advisory committees or associated working groups that advise 
        the Administrator on matters related to the environmental 
        effects of aircraft and aircraft engines.''.

SEC. 632. RURAL AIR FARE STUDY.

    (a) In General.--The Secretary shall conduct a study to--
            (1) compare air fares paid (calculated as both actual and 
        adjusted air fares) for air transportation on flights conducted 
        by commercial air carriers--
                    (A) between--
                            (i) nonhub airports located in small 
                        communities; and
                            (ii) large hub airports; and
                    (B) between large hub airports;
            (2) analyze--
                    (A) the extent to which passenger service that is 
                provided from nonhub airports is provided on--
                            (i) regional commuter commercial air 
                        carriers; or
                            (ii) major air carriers;
                    (B) the type of aircraft employed in providing 
                passenger service at nonhub airports; and
                    (C) whether there is competition among commercial 
                air carriers with respect to the provision of air 
                service to passengers from nonhub airports.
    (b) Findings.--The Secretary shall include in the report of the 
study conducted under subsection (a) findings concerning--
            (1) whether passengers who use commercial air carriers to 
        and from rural areas (as defined by the Secretary) pay a 
        disproportionately greater price for that transportation than 
        passengers who use commercial air carriers between urban areas 
        (as defined by the Secretary);
            (2) the nature of competition, if any, in rural markets (as 
        defined by the Secretary) for commercial air carriers;
            (3) whether a relationship exists between higher air fares 
        and competition among commercial air carriers for passengers 
        traveling on jet aircraft from small communities (as defined by 
        the Secretary) and, if such a relation exists, the nature of 
        that relationship;
            (4) the number of small communities that have lost air 
        service as a result of the deregulation of commercial air 
        carriers with respect to air fares;
            (5) the number of small communities served by airports with 
        respect to which, after commercial air carrier fares were 
        deregulated, jet aircraft service was replaced by turboprop 
        aircraft service; and
            (6) where such replacement occurred, any corresponding 
        decreases in available seat capacity for consumers at the 
        airports referred to in that subparagraph.
    (c) Report.--Not later than 60 days after the date of enactment of 
this Act, the Secretary shall submit a final report on the study 
carried out under subsection (a) to the Committee on Commerce, Science, 
and Transportation of the Senate.
    (d) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Adjusted air fare.--The term ``adjusted air fare'' 
        means an actual air fare that is adjusted for distance traveled 
        by a passenger.
            (2) Air carrier.--The term ``air carrier'' is defined in 
        section 40102(a)(2) of title 49, United States Code.
            (3) Airport.--The term ``airport'' is defined in section 
        40102(9) of such title.
            (4) Commercial air carrier.--The term ``commercial air 
        carrier'' means an air carrier that provides air transportation 
        for commercial purposes (as determined by the Secretary).
            (5) Hub airport.--The term ``hub airport'' is defined in 
        section 41731(a)(2) of such title.
            (6) Large hub airport.--The term ``large hub airport'' 
        shall be defined by the Secretary but the definition may not 
        include a small hub airport, as that term is defined in section 
        41731(a)(5) of such title.
            (7) Major air carrier.--The term ``major air carrier'' 
        shall be defined by the Secretary.
            (8) Nonhub airport.--The term ``nonhub airport'' is defined 
        in section 41731(a)(4) of such title.
            (9) Regional commuter air carrier.--The term ``regional 
        commuter air carrier'' shall be defined by the Secretary.

   Subtitle B--Federal Aviation Administration Streamlining Programs

SEC. 651. REVIEW OF ACQUISITION MANAGEMENT SYSTEM.

    Not later than April 1, 1999, the Administration shall employ 
outside experts to provide an independent evaluation of the 
effectiveness of its acquisition management system within 3 months 
after such date. The Administrator shall transmit a copy of the 
evaluation to the Committee on Commerce, Science, and Transportation of 
the Senate, and the Committee on Transportation and Infrastructure of 
the House of Representatives.

SEC. 652. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

    Chapter 401, as amended by section 402 of this Act, is amended by 
redesignating section 40121 as 40123, and by inserting after section 
40120 the following new section:
``Sec. 40121. Air traffic control modernization reviews
    ``(a) Required Terminations of Acquisitions.--The Administrator of 
the Federal Aviation Administration (hereafter referred to in this 
section as the `Administrator') shall terminate any program initiated 
after the date of enactment of the Air Traffic Management System 
Performance Improvement Act of 1996 and funded under the Facilities and 
Equipment account that--
            ``(1) is more than 50 percent over the cost goal 
        established for the program;
            ``(2) fails to achieve at least 50 percent of the 
        performance goals established for the program; or
            ``(3) is more than 50 percent behind schedule as determined 
        in accordance with the schedule goal established for the 
        program.
    ``(b) Authorized Terminations of Acquisitions.--The Administrator 
shall consider terminating, under the authority of subsection (a), any 
substantial acquisition that--
            ``(1) is more than 10 percent over the cost goal 
        established for the program;
            ``(2) fails to achieve at least 90 percent of the 
        performance goals established for the program; or
            ``(3) is more than 10 percent behind schedule as determined 
        in accordance with the schedule goal established for the 
        program.
    ``(c) Exceptions and Report.--
            ``(1) Continuance of program, etc.--Notwithstanding 
        subsection (a), the Administrator may continue an acquisitions 
        program required to be terminated under subsection (a) if the 
        Administrator determines that termination would be inconsistent 
        with the development or operation of the national air 
        transportation system in a safe and efficient manner.
            ``(2) Department of defense.--The Department of Defense 
        shall have the same exemptions from acquisition laws as are 
        waived by the Administrator under section 348(b) of Public Law 
        104-50 when engaged in joint actions to improve or replenish 
        the national air traffic control system. The Administration may 
        acquire real property, goods, and services through the 
        Department of Defense, or other appropriate agencies, but is 
        bound by the acquisition laws and regulations governing those 
        cases.
            ``(3) Report.--If the Administrator makes a determination 
        under paragraph (1), the Administrator shall transmit a copy of 
        the determination, together with a statement of the basis for 
        the determination, to the Committees on Appropriations of the 
        Senate and the House of Representatives, the Committee on 
        Commerce, Science, and Transportation of the Senate, and the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives.''.

SEC. 653. FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM.

    Chapter 401, as amended by section 652, is further amended by 
inserting after section 40121 the following new section:
``Sec. 40122. Federal Aviation Administration personnel management 
              system
    ``(a) In General.--
            ``(1) Consultation and negotiation.--In developing and 
        making changes to the personnel management system initially 
        implemented by the Administrator on April 1, 1996, the 
        Administrator shall negotiate with the exclusive bargaining 
        representatives of employees of the Administration certified 
        under section 7111 of title 5 and consult with other employees 
        of the Administration.
            ``(2) Mediation.--If the Administrator does not reach an 
        agreement under paragraph (1) with the exclusive bargaining 
        representatives, the services of the Federal Mediation and 
        Conciliation Service shall be used to attempt to reach such 
        agreement. If the services of the Federal Mediation and 
        Conciliation Service do not lead to an agreement, the 
        Administrator's proposed change to the personnel management 
        system shall not take effect until 60 days have elapsed after 
        the Administrator has transmitted the proposed change, along 
        with the objections of the exclusive bargaining representatives 
        to the change, and the reasons for such objections, to the 
        Congress.
            ``(3) Cost savings and productivity goals.--The 
        Administration and the exclusive bargaining representatives of 
        the employees shall use every reasonable effort to find cost 
        savings and to increase productivity within each of the 
        affected bargaining units.
            ``(4) Annual budget discussions.--The Administration and 
        the exclusive bargaining representatives of the employees shall 
        meet annually for the purpose of finding additional cost 
        savings within the Administration's annual budget as it applies 
        to each of the affected bargaining units and throughout the 
        agency.
    ``(b) Expert Evaluation.--On the date that is 3 years after the 
personnel management system is implemented, the Administration shall 
employ outside experts to provide an independent evaluation of the 
effectiveness of the system within 3 months after such date. For this 
purpose, the Administrator may utilize the services of experts and 
consultants under section 3109 of title 5 without regard to the 
limitation imposed by the last sentence of section 3109(b) of such 
title, and may contract on a sole source basis, notwithstanding any 
other provision of law to the contrary.
    ``(c) Pay Restriction.--No officer or employee of the 
Administration may receive an annual rate of basic pay in excess of the 
annual rate of basic pay payable to the Administrator.
    ``(d) Ethics.--The Administration shall be subject to Executive 
Order No. 12674 and regulations and opinions promulgated by the Office 
of Government Ethics, including those set forth in section 2635 of 
title 5 of the Code of Federal Regulations.
    ``(e) Employee Protections.--Until July 1, 1999, basic wages 
(including locality pay) and operational differential pay provided 
employees of the Administration shall not be involuntarily adversely 
affected by reason of the enactment of this section, except for 
unacceptable performance or by reason of a reduction in force or 
reorganization or by agreement between the Administration and the 
affected employees' exclusive bargaining representative.
    ``(f) Labor-Management Agreements.--Except as otherwise provided by 
this title, all labor-management agreements covering employees of the 
Administration that are in effect on the effective date of the Air 
Traffic Management System Performance Improvement Act of 1996 shall 
remain in effect until their normal expiration date, unless the 
Administrator and the exclusive bargaining representative agree to the 
contrary.''.

SEC. 654. CONFORMING AMENDMENT.

    The chapter analysis for chapter 401, as amended by section 403(b) 
of this Act, is amended by striking the item relating to section 40120 
and inserting the following new items:

``40121. Air traffic control modernization reviews.
``40122. Federal Aviation Administration personnel management system.
``40123. Relationship to other laws.''.

  Subtitle C--System To Fund Certain Federal Aviation Administration 
                               Functions

SEC. 671. FINDINGS.

    The Congress finds the following:
            (1) The Administration is recognized throughout the world 
        as a leader in aviation safety.
            (2) The Administration certifies aircraft, engines, 
        propellers, and other manufactured parts.
            (3) The Administration certifies more than 650 training 
        schools for pilots and nonpilots, more than 4,858 repair 
        stations, and more than 193 maintenance schools.
            (4) The Administration certifies pilot examiners, who are 
        then qualified to determine if a person has the skills 
        necessary to become a pilot.
            (5) The Administration certifies more than 6,000 medical 
        examiners, each of whom is then qualified to medically certify 
        the qualifications of pilots and nonpilots.
            (6) The Administration certifies more than 470 airports, 
        and provides a limited certification for another 205 airports. 
        Other airports in the United States are also reviewed by the 
        Administration.
            (7) The Administration each year performs more than 355,000 
        inspections.
            (8) The Administration issues more than 655,000 pilot's 
        licenses and more than 560,000 nonpilot's licenses (including 
        mechanics).
            (9) The Administration's certification means that the 
        product meets worldwide recognized standards of safety and 
        reliability.
            (10) The Administration's certification means aviation-
        related equipment and services meet world-wide recognized 
        standards.
            (11) The Administration's certification is recognized by 
        governments and businesses throughout the world and as such may 
        be a valuable element for any company desiring to sell 
        aviation-related products throughout the world.
            (12) The Administration's certification may constitute a 
        valuable license, franchise, privilege or benefits for the 
        holders.
            (13) The Administration also is a major purchaser of 
        computers, radars, and other systems needed to run the air 
        traffic control system. The Administration's design, 
        acceptance, commissioning, or certification of such equipment 
        enables the private sector to market those products around the 
        world, and as such confers a benefit on the manufacturer.
            (14) The Administration provides extensive services to 
        public use aircraft.

SEC. 672. PURPOSES.

    The purposes of this title are--
            (1) to provide a financial structure for the Administration 
        so that it will be able to support the future growth in the 
        national aviation and airport system;
            (2) to review existing and alternative funding options, 
        including incentive-based fees for services, and establish a 
        program to improve air traffic management system performance 
        and to establish appropriate levels of cost accountability for 
        air traffic management services provided by the Administration;
            (3) to ensure that any funding will be dedicated solely for 
        the use of the Administration;
            (4) to authorize the Administration to recover the costs of 
        its services from those who benefit from, but do not contribute 
        to, the national aviation system and the services provided by 
        the Administration;
            (5) to consider a fee system based on the cost or value of 
        the services provided and other funding alternatives;
            (6) to develop funding options for the Congress in order to 
        provide for the long-term efficient and cost-effective support 
        of the Administration and the aviation system; and
            (7) to achieve a more efficient and effective 
        Administration for the benefit of the aviation transportation 
        industry.

SEC. 673. USER FEES FOR VARIOUS FEDERAL AVIATION ADMINISTRATION 
              SERVICES.

    (a) In General.--Chapter 453 is amended by striking section 45301 
and inserting the following new section:
``Sec. 45301. General provisions
    ``(a) Schedule of Fees.--The Administrator shall establish a 
schedule of new fees, and a collection process for such fees, for the 
following services provided by the Administration:
            ``(1) Air traffic control and related services provided to 
        aircraft other than military and civilian aircraft of the 
        United States government or of a foreign government that 
        neither take off from, nor land in, the United States.
            ``(2) Services (other than air traffic control services) 
        provided to a foreign government.
    ``(b) Limitations.--
            ``(1) Authorization and impact considerations.--In 
        establishing fees under subsection (a), the Administrator--
                    ``(A) is authorized to recover in fiscal year 1997 
                $100,000,000; and
                    ``(B) shall ensure that each of the fees required 
                by subsection (a) is directly related to the 
                Administration's costs of providing the service 
                rendered. Services for which costs may be recovered 
                include the costs of air traffic control, navigation, 
                weather services, training and emergency services which 
                are available to facilitate safe transportation over 
                the United States, and other services provided by the 
                Administrator or by programs financed by the 
                Administrator to flights that neither take off nor land 
                in the United States.
            ``(2) Publication; comment.--The Administrator shall 
        publish in the Federal Register an initial fee schedule and 
        associated collection process as an interim final rule, 
        pursuant to which public comment will be sought and a final 
        rule issued.
    ``(c) Use of Experts and Consultants.--In developing the system, 
the Administrator may consult with such nongovernmental experts as the 
Administrator may employ and the Administrator may utilize the services 
of experts and consultants under section 3109 of title 5 without regard 
to the limitation imposed by the last sentence of section 3109(b) of 
such title, and may contract on a sole source basis, notwithstanding 
any other provision of law to the contrary. Notwithstanding any other 
provision of law to the contrary, the Administrator may retain such 
experts under a contract awarded on a basis other than a competitive 
basis and without regard to any such provisions requiring competitive 
bidding or precluding sole source contract authority.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 453 is 
amended by striking the item relating to section 45301 and inserting 
the following new item:

``45301. General provisions.''.
    (c) Repeal.--
            (1) In general.--Section 70118 is repealed.
            (2) Conforming amendment.--The chapter analysis for chapter 
        701 is amended by striking the item relating to section 70118.

SEC. 674. INDEPENDENT ASSESSMENT AND TASK FORCE TO REVIEW EXISTING AND 
              INNOVATIVE FUNDING MECHANISMS.

    (a) Independent Assessment.--
            (1) Initiation.--As soon as all members of the task force 
        are appointed under subsection (b) of this section, the 
        Administrator shall contract with an entity independent of the 
        Administration and the Department of Transportation to conduct 
        a complete independent assessment of the financial requirements 
        of the Administration through the year 2002.
            (2) Assessment criteria.--The Administrator shall provide 
        to the independent entity estimates of the financial 
        requirements of the Administration for the period described in 
        paragraph (1), using as a base the fiscal year 1997 
        authorization levels established by the Congress. The 
        independent assessment shall be based on an objective analysis 
        of agency funding needs.
            (3) Certain factors to be taken into account.--The 
        independent assessment shall take into account all relevant 
        factors, including--
                    (A) anticipated air traffic forecasts;
                    (B) other workload measures;
                    (C) estimated productivity gains, if any, which 
                contribute to budgetary requirements;
                    (D) the need for programs; and
                    (E) the need to provide for continued improvements 
                in all facets of aviation safety, along with 
                operational improvements in air traffic control.
            (4) Cost allocation.--The independent assessment shall also 
        assess the costs to the Administration occasioned by the 
        provision of services to each segment of the aviation system.
            (5) Deadline.--The independent assessment shall be 
        completed no later than 90 days after the contract is awarded, 
        and shall be submitted to the task force, the Secretary, the 
        Secretary of the Treasury, the Committee on Commerce, Science, 
        and Transportation and the Committee on Finance of the Senate, 
        and the Committee on Transportation and Infrastructure and the 
        Committee on Ways and Means of the House of Representatives.
    (b) Task Force.--
            (1) Establishment.--Not later than 30 days after the date 
        of enactment of this Act, the Secretary, in consultation with 
        the Secretary of the Treasury, shall establish an 11-member 
        task force, independent of the Administration and the 
        Department of Transportation.
            (2) Membership.--The members of the task force shall be 
        selected from among individuals who have expertise in the 
        aviation industry and who are able, collectively, to represent 
        a balanced view of the issues important to general aviation, 
        major air carriers, air cargo carriers, regional air carriers, 
        business aviation, airports, aircraft manufacturers, the 
        financial community, aviation industry workers, and airline 
        passengers. At least one member of the task force shall have 
        detailed knowledge of the congressional budgetary process.
            (3) Hearings and consultation.--
                    (A) Hearings.--The task force shall take such 
                testimony and solicit and receive such comments from 
                the public and other interested parties as it considers 
                appropriate, shall conduct 2 public hearings after 
                affording adequate notice to the public thereof, and is 
                authorized to conduct such additional hearings as may 
                be necessary.
                    (B) Consultation.--The task force shall consult on 
                a regular and frequent basis with the Secretary of 
                Transportation, the Secretary of the Treasury, the 
                Committee on Commerce, Science, and Transportation and 
                the Committee on Finance of the Senate, and the 
                Committee on Transportation and Infrastructure and the 
                Committee on Ways and Means of the House of 
                Representatives.
                    (C) FACA not to apply.--The task force shall not be 
                considered an advisory committee for purposes of the 
                Federal Advisory Committee Act (5 U.S.C. App.).
            (4) Duties.--
                    (A) Report to secretary.--
                            (i) In general.--The task force shall 
                        submit a report setting forth a comprehensive 
                        analysis of the Administration's budgetary 
                        requirements through fiscal year 2002, based 
                        upon the independent assessment under 
                        subsection (a), that analyzes alternative 
                        financing and funding means for meeting the 
                        needs of the aviation system through the year 
                        2002. The task force shall submit a preliminary 
                        report of that analysis to the Secretary not 
                        later than 6 months after the independent 
                        assessment is completed under subsection (a). 
                        The Secretary shall provide comments on the 
                        preliminary report to the task force within 30 
                        days after receiving it. The task force shall 
                        issue a final report of such comprehensive 
                        analysis within 30 days after receiving the 
                        Secretary's comments on its preliminary report.
                            (ii) Contents.--The report submitted by the 
                        task force under clause (i)--
                                    (I) shall consider the independent 
                                assessment under subsection (a);
                                    (II) shall consider estimated cost 
                                savings, if any, resulting from the 
                                procurement and personnel reforms 
                                included in this Act or in sections 347 
                                and 348 of Public Law 104-50, and 
                                additional financial initiatives;
                                    (III) shall include specific 
                                recommendations to the Congress on how 
                                the Administration can reduce costs, 
                                raise additional revenue for the 
                                support of agency operations, and 
                                accelerate modernization efforts; and
                                    (IV) shall include a draft bill 
                                containing the changes in law necessary 
                                to implement its recommendations.
                    (B) Recommendations.--The task force shall make 
                such recommendations under subparagraph (A)(III) as the 
                task force deems appropriate. Those recommendations may 
                include--
                            (i) alternative financing and funding 
                        proposals, including linked financing 
                        proposals;
                            (ii) modifications to existing levels of 
                        Airport and Airways Trust Fund receipts and 
                        taxes for each type of tax;
                            (iii) establishment of a cost-based user 
                        fee system based on, but not limited to, 
                        criteria under subparagraph (F) and methods to 
                        ensure that costs are borne by users on a fair 
                        and equitable basis;
                            (iv) methods to ensure that funds collected 
                        from the aviation community are able to meet 
                        the needs of the agency;
                            (v) methods to ensure that funds collected 
                        from the aviation community and passengers are 
                        used to support the aviation system;
                            (vi) means of meeting the airport 
                        infrastructure needs for large, medium, and 
                        small airports; and
                            (vii) any other matter the task force deems 
                        appropriate to address the funding and needs of 
                        the Administration and the aviation system.
                    (C) Additional recommendations.--The task force 
                report may also make recommendations concerning--
                            (i) means of improving productivity by 
                        expanding and accelerating the use of 
                        automation and other technology;
                            (ii) means of contracting out services 
                        consistent with this Act, other applicable law, 
                        and safety and national defense needs;
                            (iii) methods to accelerate air traffic 
                        control modernization and improvements in 
                        aviation safety and safety services;
                            (iv) the elimination of unneeded programs; 
                        and
                            (v) a limited innovative program based on 
                        funding mechanisms such as loan guarantees, 
                        financial partnerships with for-profit private 
                        sector entities, government-sponsored 
                        enterprises, and revolving loan funds, as a 
                        means of funding specific facilities and 
                        equipment projects, and to provide limited 
                        additional funding alternatives for airport 
                        capacity development.
                    (D) Impact assessment for recommendations.--For 
                each recommendation contained in the task force's 
                report, the report shall include a full analysis and 
                assessment of the impact implementation of the 
                recommendation would have on--
                            (i) safety;
                            (ii) administrative costs;
                            (iii) the congressional budget process;
                            (iv) the economics of the industry 
                        (including the proportionate share of all 
                        users);
                            (v) the ability of the Administration to 
                        utilize the sums collected; and
                            (vi) the funding needs of the 
                        Administration.
                    (E) Trust fund tax recommendations.--If the task 
                force's report includes a recommendation that the 
                existing Airport and Airways Trust Fund tax structure 
                be modified, the report shall--
                            (i) state the specific rates for each group 
                        affected by the proposed modifications;
                            (ii) consider the impact such modifications 
                        shall have on specific users and the public 
                        (including passengers); and
                            (iii) state the basis for the 
                        recommendations.
                    (F) Fee system recommendations.--If the task 
                force's report includes a recommendation that a fee 
                system be established, including an air traffic control 
                performance-based user fee system, the report shall 
                consider--
                            (i) the impact such a recommendation would 
                        have on passengers, air fares (including low-
                        fare, high frequency service), service, and 
                        competition;
                            (ii) existing contributions provided by 
                        individual air carriers toward funding the 
                        Administration and the air traffic control 
                        system through contributions to the Airport and 
                        Airways Trust Fund;
                            (iii) continuing the promotion of fair and 
                        competitive practices;
                            (iv) the unique circumstances associated 
                        with interisland air carrier service in Hawaii 
                        and rural air service in Alaska;
                            (v) the impact such a recommendation would 
                        have on service to small communities;
                            (vi) the impact such a recommendation would 
                        have on services provided by regional air 
                        carriers;
                            (vii) alternative methodologies for 
                        calculating fees so as to achieve a fair and 
                        reasonable distribution of costs of service 
                        among users;
                            (viii) the usefulness of phased-in 
                        approaches to implementing such a financing 
                        system;
                            (ix) means of assuring the provision of 
                        general fund contributions, as appropriate, 
                        toward the support of the Administration; and
                            (x) the provision of incentives to 
                        encourage greater efficiency in the provision 
                        of air traffic services by the Administration 
                        and greater efficiency in the use of air 
                        traffic services by aircraft operators.
                    (G) Access to documents and staff.--The 
                Administration may give the task force appropriate 
                access to relevant documents and personnel of the 
                Administration, and the Administrator shall make 
                available, consistent with the authority to withhold 
                commercial and other proprietary information under 
                section 552 of title 5, United States Code (commonly 
                known as the `Freedom of Information Act') cost data 
                associated with the acquisition and operation of air 
                traffic service systems. Any member of the task force 
                who receives commercial or other proprietary data from 
                the Administrator shall be subject to the provisions of 
                section 1905 of title 18, United States Code, 
                pertaining to unauthorized disclosure of such 
                information.
                    (H) Travel and per diem.--Each member of the task 
                force shall be paid actual travel expenses, and per 
                diem in lieu of subsistence expenses when away from his 
                or her usual place of residence, in accordance with 
                section 5703 of title 5, United States Code.
                    (I) Detail of personnel from the administration.--
                The Administrator shall make available to the task 
                force such staff, information, and administrative 
                services and assistance as may reasonably be required 
                to enable the task force to carry out its 
                responsibilities under this subsection.
            (5) Authorization of appropriations.--There are hereby 
        authorized to be appropriated such sums as may be necessary to 
        carry out the provisions of this subsection.
    (c) Report by Secretary to Congress.--
            (1) Consideration of task force's preliminary report.--
        Within 30 days after receiving the preliminary report of the 
        task force under subsection (b), the Secretary, in consultation 
        with the Secretary of the Treasury, shall furnish comments on 
        that report to the task force.
            (2) Secretary's report to congress.--Within 30 days after 
        receiving the final report of the task force and in no event 
        more than 1 year after the date of enactment of this Act, the 
        Secretary, after consulting the Secretary of the Treasury, 
        shall submit a report, based upon the final report of the task 
        force, containing the Secretary's recommendations for funding 
        the needs of the aviation system through the year 2002 to the 
        Committee on Commerce, Science, and Transportation and the 
        Committee on Finance of the Senate and the Committee on 
        Transportation and Infrastructure and the Committee on Ways and 
        means of the House of Representatives.
            (3) Contents.--The Secretary shall include in his report to 
        the Congress under paragraph (2)--
                    (A) a copy of the final report of the task force; 
                and
                    (B) a draft bill containing the changes in law 
                necessary to implement the Secretary's recommendations.
            (4) Publication.--The Secretary shall cause a copy of the 
        reports to be printed in the Federal Register upon their 
        submission to Congress.
    (d) GAO Audit of Cost Allocation.--The Comptroller General shall 
conduct an assessment of the manner in which costs for air traffic 
control services are allocated between the Administration and the 
Department of Defense. The Comptroller General shall report the results 
of the assessment, together with any recommendations the Comptroller 
General may have for reallocation of costs and for opportunities to 
increase the efficiency of air traffic control services provided by the 
Administration and by the Department of Defense, to the task force, the 
Administrator, the Secretary of Defense, the Committee on 
Transportation and Infrastructuree of the House of Representatives, and 
the Committee on Commerce, Science, and Transportation of the Senate 
not later than 120 days after the date of enactment of this Act.

SEC. 675. PROCEDURE FOR CONSIDERATION OF CERTAIN FUNDING PROPOSALS.

    (a) In General.--Chapter 481 is amended by adding at the end 
thereof the following:
``Sec. 48111. Funding proposals
    ``(a) Introduction and Referral.--Within 15 days (not counting any 
day on which either House is not in session) after a funding proposal 
is submitted to the House of Representatives and the Senate by the 
Secretary of Transportation under section 674(c) of the Air Traffic 
Management System Performance Improvement Act of 1996, an implementing 
bill with respect to such funding proposal shall be introduced in the 
House by the Majority Leader of the House, for himself and the Minority 
Leader of the House, or by Members of the House designated by the 
Majority Leader and Minority Leader of the House; and shall be 
introduced in the Senate by the Majority Leader of the Senate, for 
himself and the Minority Leader of the Senate, or by Members of the 
Senate designated by the Majority Leader and Minority Leader of the 
Senate. The implementing bill shall be referred by the Presiding 
Officers of the respective Houses to the appropriate committee, or, in 
the case of a bill containing provisions within the jurisdiction of two 
or more committees, jointly to such committees for consideration of 
those provisions within their respective jurisdictions.
    ``(b) Consideration in the House of Representatives.--
            ``(1) Referral and reporting.--Any committee of the House 
        of Representatives to which an implementing bill is referred 
        shall report it, with or without recommendation, not later than 
        the 45th calendar day of session after the date of its 
        introduction. If any committee fails to report the bill within 
        that period, it is in order to move that the House discharge 
        the committee from further consideration of the bill. A motion 
        to discharge may be made only by a Member favoring the bill 
        (but only at a time or place designated by the Speaker in the 
        legislative schedule of the day after the calendar day on which 
        the Member offering the motion announces to the House his 
        intention to do so and the form of the motion). The motion is 
        highly privileged. Debate thereon shall be limited to not more 
        than one hour, the time to be divided in the House equally 
        between a proponent and an opponent. The previous question 
        shall be considered as ordered on the motion to its adoption 
        without intervening motion. A motion to reconsider the vote by 
        which the motion is agreed to or disagreed to shall not be in 
        order.
            ``(2) Consideration of implementing bill.--After an 
        implementing bill is reported or a committee has been 
        discharged from further consideration, it is in order to move 
        that the House resolve into the Committee of the Whole House on 
        the State of the Union for consideration of the bill. If 
        reported and the report has been available for at least one 
        calendar day, all points of order against the bill and against 
        consideration of the bill are waived. If discharged, all points 
        of order against the bill and against consideration of the bill 
        are waived. The motion is highly privileged. A motion to 
        reconsider the vote by which the motion is agreed to or 
        disagreed to shall not be in order. During consideration of the 
        bill in the Committee of the Whole, the first reading of the 
        bill shall be dispensed with. General debate shall proceed, 
        shall be confined to the bill, and shall not exceed one hour 
        equally divided and controlled by a proponent and an opponent 
        of the bill. The bill shall be considered as read for amendment 
        under the five-minute rule. Only one motion to rise shall be in 
        order, except if offered by the manager. No amendment to the 
        bill is in order except an amendment that is relevant to 
        aviation funding and the Federal Aviation Administration. 
        Consideration of the bill for amendment shall not exceed one 
        hour excluding time for recorded votes and quorum calls. No 
        amendment shall be subject to further amendment, except pro 
        forma amendments for the purposes of debate only. At the 
        conclusion of the consideration of the bill for amendment, the 
        Committee shall rise and report the bill to the House with such 
        amendments as may have been adopted. The previous question 
        shall be considered as ordered on the bill and amendments 
        thereto to final passage without intervening motion. A motion 
        to reconsider the vote on passage of the bill shall not be in 
        order.
            ``(3) Appeals of rulings.--Appeals from decision of the 
        Chair regarding application of the rules of the House of 
        Representatives to the procedure relating to an implementing 
        bill shall be decided without debate.
            ``(4) Consideration of more than one implementing bill.--It 
        shall not be in order to consider under this subsection more 
        than one implementing bill under this section, except for 
        consideration of a similar Senate bill (unless the House has 
        already rejected an implementing bill) or more than one motion 
        to discharge described in paragraph (1) with respect to an 
        implementing bill.
    ``(c) Consideration in the Senate.--An implementing bill introduced 
in the Senate shall be referred to the Committee on Commerce, Science, 
and Transportation. The Committee on Commerce, Science, and 
Transportation shall report the bill with its recommendations within 60 
days following the date of introduction of that bill. Upon the 
reporting of the bill by the Committee on Commerce, Science, and 
Transportation, the reported bill shall be referred sequentially to the 
Committee on Finance for a period of 60 legislative days.
    ``(d) Consideration in Conference.--
            ``(1) Convening of conference.--In the case of disagreement 
        between the two Houses of Congress with respect to an 
        implementing bill passed by both Houses, conferees should be 
        promptly appointed and a conference promptly convened, if 
        necessary.
            ``(2) House consideration.--Notwithstanding any other rule 
        of the House of Representatives, it shall be in order to 
        consider the report of a committee of conference relating to an 
        implementing bill if such report has been available for one 
        calendar day (excluding Saturdays, Sundays, and legal holidays, 
        unless the House is in session on such a day) and the 
        accompanying statement shall have been filed in the House.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Implementing bill.--The term `implementing bill' 
        means only a bill of either House of Congress which is 
        introduced as provided in subsection (a) with respect to one or 
        more Federal Aviation Administration funding proposals which 
        contain changes in existing laws or new statutory authority 
        required to implement such funding proposal or proposals.
            ``(2) Funding proposal.--The term `funding proposal' means 
        a proposal to provide interim or permanent funding for 
        operations of the Federal Aviation Administration.
    ``(f) Rules of House of Representatives and Senate.--This section 
is enacted by the Congress--
            ``(1) as an exercise of the rulemaking power of the House 
        of Representatives and the Senate, respectively, and as such 
        they are deemed a part of the rules of each House, 
        respectively, but applicable only with respect to the procedure 
        to be followed in that House in the case of implementing bills 
        described in subsection (d); and they supersede other rules 
        only to the extent that they are inconsistent therewith; and
            ``(2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner and to 
        the same extent as in the case of any other rule of that 
        House.''.
    (b) Clerical Amendment.--The table of sections for chapter 481 is 
amended by adding at the end thereof the following:

``48111. Funding proposals.''.

SEC. 676. ADMINISTRATIVE PROVISIONS.

    (a) In General.--Chapter 453, as amended by section 654 of this 
title, is further amended by--
            (1) redesignating section 45303 as section 45304; and
            (2) by inserting after section 45302 the following:
``Sec. 45303. Administrative provisions
    ``(a) In General.--
            ``(1) Fees payable to administrator.--All fees imposed and 
        amounts collected under this chapter for services performed, or 
        materials furnished, by the Federal Aviation Administration 
        (hereafter in this section referred to as the `Administration') 
        are payable to the Administrator.
            ``(2) Refunds.--The Administrator may refund any fee paid 
        by mistake or any amount paid in excess of that required.
            ``(3) Receipts credited to account.--Notwithstanding 
        section 3302 of title 31 all fees and amounts collected by the 
        Administration, except insurance premiums and other fees 
        charged for the provision of insurance and deposited in the 
        Aviation Insurance Revolving Fund and interest earned on 
        investments of such Fund, and except amounts which on the date 
        of enactment of the Air Traffic Management System Performance 
        Improvement Act of 1996 are required to be credited to the 
        general fund of the Treasury (whether imposed under this 
        section or not)--
                    ``(A) shall be credited to a separate account 
                established in the Treasury and made available for 
                Administration activities;
                    ``(B) shall be available immediately for 
                expenditure but only for congressionally authorized and 
                intended purposes; and
                    ``(C) shall remain available until expended.
            ``(4) Annual budget report by administrator.--The 
        Administrator shall, on the same day each year as the President 
        submits the annual budget to the Congress, provide to the 
        Committee on Commerce, Science, and Transportation of the 
        Senate and the Committee on Transportation and Infrastructure 
        of the House of Representatives--
                    ``(A) a list of fee collections by the 
                Administration during the preceding fiscal year;
                    ``(B) a list of activities by the Administration 
                during the preceding fiscal year that were supported by 
                fee expenditures and appropriations;
                    ``(C) budget plans for significant programs, 
                projects, and activities of the Administration, 
                including out-year funding estimates;
                    ``(D) any proposed disposition of surplus fees by 
                the Administration; and
                    ``(E) such other information as those committees 
                consider necessary.
            ``(5) Development of cost accounting system.--The 
        Administration shall develop a cost accounting system that 
        adequately and accurately reflects the investments, operating 
        and overhead costs, revenues, and other financial measurement 
        and reporting aspects of its operations.
            ``(6) Compensation to carriers for acting as collection 
        agents.--The Administration shall prescribe regulations to 
        ensure that any air carrier required, pursuant to the Air 
        Traffic Management System Performance Improvement Act of 1996 
        or any amendments made by that Act, to collect a fee imposed on 
        another party by the Administrator may collect from such other 
        party an additional uniform amount that the Administrator 
        determines reflects the necessary and reasonable expenses (net 
        of interest accruing to the carrier after collection and before 
        remittance) incurred in collecting and handling the fee.
            ``(7) Cost reduction and efficiency report.--Prior to the 
        submission of any proposal for establishment, implementation, 
        or expansion of any fees or taxes imposed on the aviation 
        industry, the Administrator shall prepare a report for 
        submission to the Congress which includes--
                    ``(A) a justification of the need for the proposed 
                fees or taxes;
                    ``(B) a statement of steps taken by the 
                Administrator to reduce costs and improve efficiency 
                within the Administration;
                    ``(C) an analysis of the impact of any fee or tax 
                increase on each sector of the aviation transportation 
                industry; and
                    ``(D) a comparative analysis of any decrease in tax 
                amounts equal to the receipts from which are credited 
                to the Airport and Airway Trust Fund established under 
                section 9502 of the Internal Revenue Code of 1986.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 453 is 
amended by striking the item relating to section 45303 and inserting 
the following:

``45303. Administrative provisions.
``45304. Maximum fees for private person services.''.

SEC. 677. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST FUND 
              ACTIVITIES.

    (a) In General.--Part C of subtitle VII is amended by adding at the 
end the following new chapter:

  ``CHAPTER 482--ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST 
                               FACILITIES

``Sec.
``48201. Advance appropriations.
``Sec. 48201. Advance appropriations
    ``(a) Multiyear Authorizations.--Beginning with fiscal year 1998, 
any authorization of appropriations for an activity for which amounts 
are to be appropriated from the Airport and Airway Trust Fund 
established under section 9502 of the Internal Revenue Code of 1986 
shall provide funds for a period of not less than 3 fiscal years unless 
the activity for which appropriations are authorized is to be concluded 
before the end of that period.
    ``(b) Multiyear Appropriations.--Beginning with fiscal year 1998, 
amounts appropriated from the Airport and Airway Trust Fund shall be 
appropriated for periods of 3 fiscal years rather than annually.''.
    (b) Conforming Amendment.--The analysis for subtitle VIII is 
amended by adding at the end the following new item:

``482. Advance appropriations for airport and airway trust    48201.''.
                            facilities.

SEC. 678. RURAL AIR SERVICE SURVIVAL ACT.

    (a) Short Title.--This section may be cited as the ``Rural Air 
Service Survival Act''.
    (b) Findings.--The Congress finds that--
            (1) air service in rural areas is essential to a national 
        transportation network;
            (2) the rural air service infrastructure supports the safe 
        operation of all air travel;
            (3) rural air service creates economic benefits for all air 
        carriers by making the national aviation system available to 
        passengers from rural areas;
            (4) rural air service has suffered since deregulation;
            (5) the essential air service program under the Department 
        of Transportation--
                    (A) provides essential airline access to rural and 
                isolated rural communities throughout the Nation;
                    (B) is necessary for the economic growth and 
                development of rural communities;
                    (C) is a critical component of the national 
                transportation system of the United States; and
                    (D) has endured serious funding cuts in recent 
                years; and
            (6) a reliable source of funding must be established to 
        maintain air service in rural areas and the essential air 
        service program.
    (c) Essential Air Service Authorization.--Section 41742 is amended 
to read as follows:
``Sec. 41742. Essential air service authorization
    ``(a) In General.--Out of the amounts received by the 
Administration credited to the account established under section 
45303(a)(3) or otherwise provided to the Administration, the sum of 
$50,000,000 is authorized and shall be made available immediately for 
obligation and expenditure to carry out the essential air service 
program under this subchapter for each fiscal year.
    ``(b) Funding for Small Community Air Service.--Notwithstanding any 
other provision of law, moneys credited to the account established 
under section 45303(a), including the funds derived from fees imposed 
under the authority contained in section 45301(a), shall be used to 
carry out the essential air service program under this subchapter. 
Notwithstanding section 47114(g) of this title, any amounts from those 
fees that are not obligated or expended at the end of the fiscal year 
for the purpose of funding the essential air service program under this 
subchapter shall be made available to the Administration for use in 
improving rural air safety under subchapter I of chapter 471 of this 
title and shall be used exclusively for projects at rural airports 
under this subchapter.''.
    (d) Conforming Amendment.--The chapter analysis for chapter 417 is 
amended by striking the item relating to section 41742 and inserting 
the following:

``41742. Essential air service authorization.''.
    (e) Secretary May Require Matching Local Funds.--Section 41737 is 
amended by adding at the end thereof the following:
    ``(e) Matching Funds.--No earlier than 2 years after the effective 
date of section 679 of the Air Traffic Management System Performance 
Improvement Act of 1996, the Secretary may require an eligible agency, 
as defined in section 40117(a)(2) of this title, to provide matching 
funds of up to 10 percent for any payments it receives under this 
subchapter.''.
    (f) Transfer of Essential Air Service Program to FAA.--The 
responsibility for administration of subchapter II of chapter 417 is 
transferred from the Secretary of Transportation to the Administrator.

                        TITLE VII--PILOT RECORDS

SEC. 701. SHORT TITLE.

    This title may be cited as the ``Pilot Records Improvement Act of 
1996''.

SEC. 702. EMPLOYMENT INVESTIGATIONS OF PILOT APPLICANTS.

    (a) In General.--Section 44936 is amended by adding at the end the 
following new subsection:
    ``(f) Records of Employment of Pilot Applicants.--
            ``(1) In general.--Before hiring an individual as a pilot, 
        an air carrier shall request and receive the following 
        information:
                    ``(A) FAA records.--From the Administrator of the 
                Federal Aviation Administration (hereafter in this 
                subsection referred to as the `Administrator'), records 
                pertaining to the individual that are maintained by the 
                Administrator concerning--
                            ``(i) current airman certificates 
                        (including airman medical certificates) and 
                        associated type ratings, including any 
                        limitations to those certificates and ratings; 
                        and
                            ``(ii) summaries of legal enforcement 
                        actions resulting in a finding by the 
                        Administrator of a violation of this title or a 
                        regulation prescribed or order issued under 
                        this title that was not subsequently 
                        overturned.
                    ``(B) Air carrier and other records.--From any air 
                carrier or other person that has employed the 
                individual at any time during the 5-year period 
                preceding the date of the employment application of the 
                individual, or from the trustee in bankruptcy for such 
                air carrier or person--
                            ``(i) records pertaining to the individual 
                        that are maintained by an air carrier under 
                        regulations set forth in--
                                    ``(I) section 121.683 of title 14, 
                                Code of Federal Regulations;
                                    ``(II) paragraph (A) of section VI, 
                                appendix I, part 121 of such title;
                                    ``(III) paragraph (A) of section 
                                IV, appendix J, part 121 of such title;
                                    ``(IV) section 125.401 of such 
                                title; and
                                    ``(V) section 135.63(a)(4) of such 
                                title; and
                            ``(ii) other records pertaining to the 
                        individual that are maintained by the air 
                        carrier or person concerning--
                                    ``(I) the training, qualifications, 
                                proficiency, or professional competence 
                                of the individual, including comments 
                                and evaluations made by a check airman 
                                designated in accordance with section 
                                121.411, 125.295, or 135.337 of such 
                                title;
                                    ``(II) any disciplinary action 
                                taken with respect to the individual 
                                that was not subsequently overturned; 
                                and
                                    ``(III) any release from employment 
                                or resignation, termination, or 
                                disqualification with respect to 
                                employment.
                    ``(C) National driver register records.--In 
                accordance with section 30305(b)(7), from the chief 
                driver licensing official of a State, information 
                concerning the motor vehicle driving record of the 
                individual.
            ``(2) Written consent; release from liability.--An air 
        carrier making a request for records under paragraph (1)--
                    ``(A) shall be required to obtain written consent 
                to the release of those records from the individual 
                that is the subject of the records requested; and
                    ``(B) may, notwithstanding any other provision of 
                law or agreement to the contrary, require the 
                individual who is the subject of the records to request 
                to execute a release from liability for any claim 
                arising from the furnishing of such records to or the 
                use of such records by such air carrier (other than a 
                claim arising from furnishing information known to be 
                false and maintained in violation of a criminal 
                statute).
            ``(3) 5-year reporting period.--A person shall not furnish 
        a record in response to a request made under paragraph (1) if 
        the record was entered more than 5 years before the date of the 
        request, unless the information concerns a revocation or 
        suspension of an airman certificate or motor vehicle license 
        that is in effect on the date of the request.
            ``(4) Requirement to maintain records.--The Administrator 
        shall maintain pilot records described in paragraph (1)(A) for 
        a period of at least 5 years.
            ``(5) Receipt of consent; provision of information.--A 
        person shall not furnish a record in response to a request made 
        under paragraph (1) without first obtaining a copy of the 
        written consent of the individual who is the subject of the 
        records requested. A person who receives a request for records 
        under this paragraph shall furnish a copy of all of such 
        requested records maintained by the person not later than 30 
        days after receiving the request.
            ``(6) Right to receive notice and copy of any record 
        furnished.--A person who receives a request for records under 
        paragraph (1) shall provide to the individual who is the 
        subject of the records--
                    ``(A) written notice of the request and of the 
                right of that individual to receive a copy of such 
                records; and
                    ``(B) a copy of such records, if requested by the 
                individual.
            ``(7) Reasonable charges for processing requests and 
        furnishing copies.--A person who receives a request under 
        paragraph (1) or (6) may establish a reasonable charge for the 
        cost of processing the request and furnishing copies of the 
        requested records.
            ``(8) Standard forms.--The Administrator shall promulgate--
                    ``(A) standard forms that may be used by an air 
                carrier to request records under paragraph (1); and
                    ``(B) standard forms that may be used by an air 
                carrier to--
                            ``(i) obtain the written consent of the 
                        individual who is the subject of a request 
                        under paragraph (1); and
                            ``(ii) inform the individual of--
                                    ``(I) the request; and
                                    ``(II) the individual right of that 
                                individual to receive a copy of any 
                                records furnished in response to the 
                                request.
            ``(9) Right to correct inaccuracies.--An air carrier that 
        maintains or requests and receives the records of an individual 
        under paragraph (1) shall provide the individual with a 
        reasonable opportunity to submit written comments to correct 
        any inaccuracies contained in the records before making a final 
        hiring decision with respect to the individual.
            ``(10)  Right of pilot to review certain records.--
        Notwithstanding any other provision of law or agreement, an air 
        carrier shall, upon written request from a pilot employed by 
        such carrier, make available, within a reasonable time of the 
        request, to the pilot for review, any and all employment 
        records referred to in paragraph (1)(B) (i) or (ii) pertaining 
        to the employment of the pilot.
            ``(11) Privacy protections.--An air carrier that receives 
        the records of an individual under paragraph (1) may use such 
        records only to assess the qualifications of the individual in 
        deciding whether or not to hire the individual as a pilot. The 
        air carrier shall take such actions as may be necessary to 
        protect the privacy of the pilot and the confidentiality of the 
        records, including ensuring that information contained in the 
        records is not divulged to any individual that is not directly 
        involved in the hiring decision.
            ``(12) Periodic review.--Not later than 18 months after the 
        date of enactment of the Pilot Records Improvement Act of 1996, 
        and at least once every 3 years thereafter, the Administrator 
        shall transmit to the Congress a statement that contains, 
        taking into account recent developments in the aviation 
        industry--
                    ``(A) recommendations by the Administrator 
                concerning proposed changes to Federal Aviation 
                Administration records, air carrier records, and other 
                records required to be furnished under subparagraphs 
                (A) and (B) of paragraph (1); or
                    ``(B) reasons why the Administrator does not 
                recommend any proposed changes to the records referred 
                to in subparagraph (A).
            ``(13) Regulations.--The Administrator may prescribe such 
        regulations as may be necessary--
                    ``(A) to protect--
                            ``(i) the personal privacy of any 
                        individual whose records are requested under 
                        paragraph (1); and
                            ``(ii) the confidentiality of those 
                        records;
                    ``(B) to preclude the further dissemination of 
                records received under paragraph (1) by the person who 
                requested those records; and
                    ``(C) to ensure prompt compliance with any request 
                made under paragraph (1).
    ``(g) Limitation on Liability; Preemption of State Law.--
            ``(1) Limitation on liability.--No action or proceeding may 
        be brought by or on behalf of an individual who has applied for 
        or is seeking a position with an air carrier as a pilot and who 
        has signed a release from liability, as provided for under 
        paragraph (2), against--
                    ``(A) the air carrier requesting the records of 
                that individual under subsection (a)(1);
                    ``(B) a person who has complied with such request; 
                or
                    ``(C) an agent or employee of a person described in 
                subparagraph (A) or (B);
        in the nature of an action for defamation, invasion of privacy, 
        negligence, interference with contract, or otherwise, or under 
        any Federal or State law with respect to the furnishing or use 
        of such records in accordance with subsection (a).
            ``(2) Preemption.--No State or political subdivision 
        thereof may enact, prescribe, issue, continue in effect, or 
        enforce any law (including any regulation, standard, or other 
        provision having the force and effect of law) that prohibits, 
        penalizes, or imposes liability for furnishing or using records 
        in accordance with subsection (a).
            ``(3) Provision of knowingly false information.--Paragraphs 
        (1) and (2) shall not apply with respect to a person who 
        furnishes information in response to a request made under 
        subsection (f)(1), that--
                    ``(A) the person knows is false; and
                    ``(B) was maintained in violation of a criminal 
                statute of the United States.''.
    (b) Conforming Amendment.--Section 30305(b) is amended--
            (1) by redesignating paragraph (7) as paragraph (8); and
            (2) by inserting after paragraph (6) the following:
            ``(7) An individual who is seeking employment by an air 
        carrier as a pilot may request the chief driver licensing 
        official of a State to provide information about the individual 
        under paragraph (2) to the prospective employer of the 
        individual or to the Secretary of Transportation. Information 
        may not be obtained from the National Driver Register under 
        this subsection if the information was entered in the Register 
        more than 5 years before the request unless the information is 
        about a revocation or suspension still in effect on the date of 
        the request.''.
    (c) Applicability.--The amendments made by this section shall apply 
to any air carrier hiring an individual as a pilot whose application 
was first received by the carrier on or after the 120th day after the 
date of enactment of this Act.

SEC. 703. STUDY OF MINIMUM STANDARDS FOR PILOT QUALIFICATIONS.

    The Administrator shall appoint a task force consisting of 
appropriate representatives of the aviation industry to conduct a study 
directed toward the development of--
            (1) standards and criteria for preemployment screening 
        tests measuring the psychomotor coordination, general 
        intellectual capacity, instrument and mechanical comprehension, 
        and physical and mental fitness of an applicant for employment 
        as a pilot by an air carrier; and
            (2) standards and criteria for pilot training facilities to 
        be licensed by the Administrator and which will assure that 
        pilots trained at such facilities meet the preemployment 
        screening standards and criteria described in paragraph (1).

                TITLE VIII--ABOLITION OF BOARD OF REVIEW

SEC. 801. ABOLITION OF BOARD OF REVIEW AND RELATED AUTHORITY.

    (a) Abolition of Board of Review.--Section 6007 of the Metropolitan 
Washington Airports Act of 1986 (formerly 49 U.S.C. App. 2456) is 
amended--
            (1) by striking subsections (f) and (h);
            (2) by redesignating subsection (g) as subsection (f); and
            (3) by redesignating subsection (i) as subsection (g).
    (b) Conforming Amendments.--
            (1) Relationship to and effect of other laws.--Section 
        6009(b) of the Metropolitan Washington Airports Act of 1986 
        (formerly 49 U.S.C. App. 2458(b)) is amended by striking ``or 
        by reason of the authority'' and all that follows through the 
        end of the subsection and inserting a period.
            (2) Separability.--Section 6011 of the Metropolitan 
        Washington Airports Act of 1986 (formerly 49 U.S.C. App. 2460) 
        is amended by striking ``Except as provided in section 6007(h), 
        if'' and inserting ``If''.
    (c) Protection of Certain Actions.--Any action taken by the 
Airports Authority and submitted to the Board of Review pursuant to 
section 6007(f)(4) of the Metropolitan Washington Airports Act of 1986 
before April 1, 1995, shall remain in effect and shall not be set aside 
solely by reason of a judicial order invalidating certain functions of 
the Board.

SEC. 802. SENSE OF THE SENATE.

    It is the sense of the Senate that the Airports Authority--
            (1) should not provide any reserved parking areas free of 
        charge to Members of Congress, other Government officials, or 
        diplomats at Washington National Airport or Washington Dulles 
        International Airport; and
            (2) should establish a parking policy for such airports 
        that provides equal access to the public, and does not provide 
        preferential parking privileges to Members of Congress, other 
        Government officials, or diplomats.

SEC. 803. CONFORMING AMENDMENTS IN OTHER LAW.

    Any reference in any Federal law, Executive order, rule, 
regulation, or delegation of authority to the Board of Review or the 
provisions of law repealed under this title is hereby repealed.

SEC. 804. DEFINITIONS.

    For purposes of this title--
            (1) the terms ``Airports Authority'', ``Washington National 
        Airport'', and ``Washington Dulles International Airport'' have 
        the same meanings as in section 6004 of the Metropolitan 
        Washington Airports Act of 1986; and
            (2) the term ``Board of Review'' means the Board of Review 
        of the Airports Authority.

SEC. 805. INCREASE IN NUMBER OF PRESIDENTIALLY APPOINTED MEMBERS OF 
              BOARD.

    (a) In General.--Section 6007(e) of the Metropolitan Washington 
Airports Act of 1986 (formerly 49 U.S.C. 2456(e)) is amended--
            (1) by striking ``11 members,'' in paragraph (1) and 
        inserting ``13 members,'';
            (2) by striking ``one member'' in paragraph (1)(D) and 
        inserting ``3 members''; and
            (3) by striking ``Seven'' in paragraph (5) and inserting 
        ``Eight''.
    (b) Staggering Terms for Presidential Appointees.--Of the members 
first appointed by the President after the date of enactment of this 
Act--
            (1) one shall be appointed for a term that expires 
        simultaneously with the term of the member of the Metropolitan 
        Washington Airports Authority board of directors serving on 
        that date (or, if there is a vacancy in that office, the member 
        appointed to fill the existing vacancy and the member to whom 
        this paragraph applies shall be appointed for 2 years);
            (2) one shall be appointed for a term ending 2 years after 
        the term of the member (or members) to whom paragraph (1) 
        applies expires; and
            (3) one shall be appointed for a term ending 4 years after 
        the term of the member (or members) to whom paragraph (1) 
        applies expires.

SEC. 806. RECONSTITUTED BOARD TO FUNCTION WITHOUT INTERRUPTION.

    Notwithstanding any provision of State law, including those 
provisions establishing, providing for the establishment of, or 
recognizing the Metropolitan Washington Airports Authority, and based 
upon the Federal interest in the continued functions of the 
Metropolitan Washington Airports (as defined in section 6004(4) of the 
Metropolitan Washington Airports Authority Act of 1986 (formerly 49 
U.S.C. 2451(4)), the board of directors of such Authority, including 
any members appointed under the amendments made by section 805, shall 
continue to meet and act after the date of enactment of this Act until 
such time as necessary conforming changes in State law are made in the 
same manner as if those conforming changes had been enacted on the date 
of enactment of this Act.

SEC. 807. OPERATIONAL SLOTS AT NATIONAL AIRPORT.

    Nothing in this title shall affect the number or distribution of 
operational slots at National Airport.

SEC. 808. AIRPORTS AUTHORITY SUPPORT OF BOARD.

    Section 6005 of the Metropolitan Washington Airports Authority Act 
of 1986 (formerly 49 U.S.C. 2454) is amended by adding at the end 
thereof the following:
    ``(f) Federal Agency Oversight.--The Airports Authority shall not 
be required--
            ``(1) to pay any person;
            ``(2) to provide office space or administrative support; or
            ``(3) to reimburse the Secretary of Transportation for 
        expenses incurred,
for carrying out any Federal agency oversight responsibilities under 
this Act. Nothing in this subsection precludes the Airport Authority 
from providing services or expenses to any member of the Board of 
Directors.''.

                  TITLE IX--AIRPORT REVENUE PROTECTION

SEC. 901. SHORT TITLE.

    This title may be cited as the ``Airport Revenue Protection Act of 
1996''.

SEC. 902. FINDINGS; PURPOSE.

    (a) In General.--The Congress finds that--
            (1) section 47107 of title 49, United States Code, 
        prohibits the diversion of certain revenue generated by a 
        public airport as a condition of receiving a project grant;
            (2) a grant recipient that uses airport revenue for 
        purposes that are not airport related in a manner inconsistent 
        with chapter 471 of title 49, United States Code, illegally 
        diverts airport revenues;
            (3) any diversion of airport revenues in violation of the 
        condition referred to in paragraph (1) undermines the interest 
        of the United States in promoting a strong national air 
        transportation system that is responsive to the needs of 
        airport users;
            (4) the Secretary and the Administrator have not enforced 
        airport revenue diversion rules adequately and must have 
        additional regulatory tools to increase enforcement efforts; 
        and
            (5) sponsors who have been found to have illegally diverted 
        airport revenues--
                    (A) have not reimbursed or made restitution to 
                airports in a timely manner; and
                    (B) must be encouraged to do so.
    (b) Purpose.--The purpose of this title is to ensure that airport 
users are not burdened with hidden taxation for unrelated municipal 
services and activities by--
            (1) eliminating the ability of any State or political 
        subdivision thereof that is a recipient of a project grant to 
        divert airport revenues for purposes that are not related to an 
        airport, in violation of section 47107 of title 49, United 
        States Code;
            (2) imposing financial reporting requirements that are 
        designed to identify instances of illegal diversions referred 
        to in paragraph (1);
            (3) establishing a statute of limitations for airport 
        revenue diversion actions;
            (4) clarifying limitations on revenue diversion that are 
        permitted under chapter 471 of title 49, United States Code; 
        and
            (5) establishing clear penalties and enforcement mechanisms 
        for identifying and prosecuting airport revenue diversion.

SEC. 903. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Aviation Administration.
            (2) Airport.--The term ``airport'' has the meaning provided 
        that term in section 47102(2) of title 49, United States Code.
            (3) Project grant.--The term ``project grant'' has the 
        meaning provided that term in section 47102(14) of title 49, 
        United States Code.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (5) Sponsor.--The term ``sponsor'' has the meaning provided 
        that term in section 47102(19) of title 49, United States Code.

SEC. 904. RESTRICTION ON USE OF AIRPORT REVENUES.

    (a) In General.--Subchapter I of chapter 471, as amended by section 
201(a) of this Act, is further amended by adding at the end of 
subchapter I the following new section:
``Sec. 47133. Restriction on use of revenues
    ``(a) Prohibition.--Local taxes on aviation fuel (except taxes in 
effect on December 30, 1987) or the revenues generated by an airport 
that is the subject of Federal assistance may not be expended for any 
purpose other than the capital or operating costs of--
            ``(1) the airport;
            ``(2) the local airport system; or
            ``(3) any other local facility that is owned or operated by 
        the person or entity that owns or operates the airport that is 
        directly and substantially related to the air transportation of 
        passengers or property.
    ``(b) Exceptions.--Subsection (a) shall not apply if a provision 
enacted not later than September 2, 1982, in a law controlling 
financing by the airport owner or operator, or a covenant or assurance 
in a debt obligation issued not later than September 2, 1982, by the 
owner or operator, provides that the revenues, including local taxes on 
aviation fuel at public airports, from any of the facilities of the 
owner or operator, including the airport, be used to support not only 
the airport but also the general debt obligations or other facilities 
of the owner or operator.
    ``(c) Rule of Construction.--Nothing in this section may be 
construed to prevent the use of a State tax on aviation fuel to support 
a State aviation program or the use of airport revenue on or off the 
airport for a noise mitigation purpose.''.
    (b) Conforming Amendment.--The chapter analysis for subchapter I of 
chapter 471 is amended by adding at the end the following new item:

``47133. Restriction on use of revenues.''.

SEC. 905. REGULATIONS; AUDITS AND ACCOUNTABILITY.

    (a) In General.--Section 47107 is amended by adding at the end the 
following new subsections:
    ``(m) Audit Certification.--
            ``(1) In general.--The Secretary of Transportation 
        (hereafter in this section referred to as the `Secretary'), 
        acting through the Administrator of the Federal Aviation 
        Administration (hereafter in this section referred to as the 
        `Administrator'), shall promulgate regulations that require a 
        recipient of a project grant (or any other recipient of Federal 
        financial assistance that is provided for an airport) to 
        include as part of an annual audit conducted under sections 
        7501 through 7505 of title 31, a review and opinion of the 
        review concerning the funding activities with respect to an 
        airport that is the subject of the project grant (or other 
        Federal financial assistance) and the sponsors, owners, or 
        operators (or other recipients) involved.
            ``(2) Content of review.--A review conducted under 
        paragraph (1) shall provide reasonable assurances that funds 
        paid or transferred to sponsors are paid or transferred in a 
        manner consistent with the applicable requirements of this 
        chapter and any other applicable provision of law (including 
        regulations promulgated by the Secretary or the Administrator).
            ``(3) Requirements for audit report.--The report submitted 
        to the Secretary under this subsection shall include a specific 
        determination and opinion regarding the appropriateness of the 
        disposition of airport funds paid or transferred to a sponsor.
    ``(n) Recovery of Illegally Diverted Funds.--
            ``(1) In general.--Not later than 180 days after the 
        issuance of an audit or any other report that identifies an 
        illegal diversion of airport revenues (as determined under 
        subsections (b) and (l) and section 47133), the Secretary, 
        acting through the Administrator, shall--
                    ``(A) review the audit or report;
                    ``(B) perform appropriate factfinding; and
                    ``(C) conduct a hearing and render a final 
                determination concerning whether the illegal diversion 
                of airport revenues asserted in the audit or report 
                occurred.
            ``(2) Notification.--Upon making such a finding, the 
        Secretary, acting through the Administrator, shall provide 
        written notification to the sponsor and the airport of--
                    ``(A) the finding; and
                    ``(B) the obligations of the sponsor to reimburse 
                the airport involved under this paragraph.
            ``(3) Administrative action.--The Secretary may withhold 
        any amount from funds that would otherwise be made available to 
        the sponsor, including funds that would otherwise be made 
        available to a State, municipality, or political subdivision 
        thereof (including any multimodal transportation agency or 
        transit authority of which the sponsor is a member entity) as 
        part of an apportionment or grant made available pursuant to 
        this title, if the sponsor--
                    ``(A) receives notification that the sponsor is 
                required to reimburse an airport; and
                    ``(B) has had an opportunity to reimburse the 
                airport, but has failed to do so.
            ``(4) Civil action.--If a sponsor fails to pay an amount 
        specified under paragraph (3) during the 180-day period 
        beginning on the date of notification and the Secretary is 
        unable to withhold a sufficient amount under paragraph (3), the 
        Secretary, acting through the Administrator, may initiate a 
        civil action under which the sponsor shall be liable for civil 
        penalty in an amount equal to the illegal diversion in question 
        plus interest (as determined under subsection (o)).
            ``(5) Disposition of penalties.--
                    ``(A) Amounts withheld.--The Secretary or the 
                Administrator shall transfer any amounts withheld under 
                paragraph (3) to the Airport and Airway Trust Fund.
                    ``(B) Civil penalties.--With respect to any amount 
                collected by a court in a civil action under paragraph 
                (4), the court shall cause to be transferred to the 
                Airport and Airway Trust Fund any amount collected as a 
                civil penalty under paragraph (4).
            ``(6) Reimbursement.--The Secretary, acting through the 
        Administrator, shall, as soon as practicable after any amount 
        is collected from a sponsor under paragraph (4), cause to be 
        transferred from the Airport and Airway Trust Fund to an 
        airport affected by a diversion that is the subject of a civil 
        action under paragraph (4), reimbursement in an amount equal to 
        the amount that has been collected from the sponsor under 
        paragraph (4) (including any amount of interest calculated 
        under subsection (o)).
            ``(7) Statute of limitations.--No person may bring an 
        action for the recovery of funds illegally diverted in 
        violation of this section (as determined under subsections (b) 
        and (l)) or section 47133 after the date that is 6 years after 
        the date on which the diversion occurred.
    ``(o) Interest.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary, acting through the Administrator, shall charge a 
        minimum annual rate of interest on the amount of any illegal 
        diversion of revenues referred to in subsection (n) in an 
        amount equal to the average investment interest rate for tax 
        and loan accounts of the Department of the Treasury (as 
        determined by the Secretary of the Treasury) for the applicable 
        calendar year, rounded to the nearest whole percentage point.
            ``(2) Adjustment of interest rates.--If, with respect to a 
        calendar quarter, the average investment interest rate for tax 
        and loan accounts of the Department of the Treasury exceeds the 
        average investment interest rate for the immediately preceding 
        calendar quarter, rounded to the nearest whole percentage 
        point, the Secretary of the Treasury may adjust the interest 
        rate charged under this subsection in a manner that reflects 
        that change.
            ``(3) Accrual.--Interest assessed under subsection (n) 
        shall accrue from the date of the actual illegal diversion of 
        revenues referred to in subsection (n).
            ``(4) Determination of applicable rate.--The applicable 
        rate of interest charged under paragraph (1) shall--
                    ``(A) be the rate in effect on the date on which 
                interest begins to accrue under paragraph (3); and
                    ``(B) remain at a rate fixed under subparagraph (A) 
                during the duration of the indebtedness.
    ``(p) Payment by Airport to Sponsor.--If, in the course of an audit 
or other review conducted under this section, the Secretary or the 
Administrator determines that an airport owes a sponsor funds as a 
result of activities conducted by the sponsor or expenditures by the 
sponsor for the benefit of the airport, interest on that amount shall 
be determined in the same manner as provided in paragraphs (1) through 
(4) of subsection (o), except that the amount of any interest assessed 
under this subsection shall be determined from the date on which the 
Secretary or the Administrator makes that determination.''.
    (b) Revision of Policies and Procedures; Deadlines.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary, acting through the 
        Administrator, shall revise the policies and procedures 
        established under section 47107(l) of title 49, United States 
        Code, to take into account the amendments made to that section 
        by this title.
            (2) Statute of limitations.--Section 47107(l) is amended by 
        adding at the end the following new paragraph:
            ``(5) Statute of limitations.--In addition to the statute 
        of limitations specified in subsection (n)(7), with respect to 
        project grants made under this chapter--
                    ``(A) any request by a sponsor to any airport for 
                additional payments for services conducted off of the 
                airport or for reimbursement for capital contributions 
                or operating expenses shall be filed not later than 6 
                years after the date on which the expense is incurred; 
                and
                    ``(B) any amount of airport funds that are used to 
                make a payment or reimbursement as described in 
                subparagraph (A) after the date specified in that 
                subparagraph shall be considered to be an illegal 
                diversion of airport revenues that is subject to 
                subsection (n).''.

SEC. 906. CONFORMING AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

    Section 9502 of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of subsection (b)(3);
            (2) by striking the period at the end of subsection (b)(4) 
        and inserting ``, and''; and
            (3) by adding at the end of subsection (b) the following:
            ``(5) amounts determined by the Secretary of the Treasury 
        to be equivalent to the amounts of civil penalties collected 
        under section 47107(n) of title 49, United States Code.''; and
            (4) in subsection (d), by adding at the end of subsection 
        (d) the following:
            ``(4) Transfers from the airport and airway trust fund on 
        account of certain airports.--The Secretary of the Treasury may 
        transfer from the Airport and Airway Trust Fund to the 
        Secretary of Transportation or the Administrator of the Federal 
        Aviation Administration an amount to make a payment to an 
        airport affected by a diversion that is the subject of an 
        administrative action under paragraph (3) or a civil action 
        under paragraph (4) of section 47107(n) of title 49, United 
        States Code.''.

    TITLE X--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE 
                               AUTHORITY

SEC. 1001. EXPENDITURES FROM AIRPORT AND AIRWAY TRUST FUND.

    Section 9502(d)(1) of the Internal Revenue Code of 1986 (relating 
to expenditures from Airport and Airway Trust Fund) is amended by--
            (1) striking ``1996'' and inserting ``1997''; and
            (2) inserting ``or the Federal Aviation Reauthorization Act 
        of 1996'' after ``Administration Authorization Act of 1994''.

            Attest:

                                                             Secretary.
104th CONGRESS

  2d Session

                               H. R. 3539

_______________________________________________________________________

                               AMENDMENT

HR 3539 EAS1S----2
HR 3539 EAS1S----3
HR 3539 EAS1S----4
HR 3539 EAS1S----5
HR 3539 EAS1S----6
HR 3539 EAS1S----7
HR 3539 EAS1S----8
HR 3539 EAS1S----9
HR 3539 EAS1S----10
```