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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3539 Reported in House (RH)]

                                                 Union Calendar No. 385

104th CONGRESS

  2d Session

                               H. R. 3539

                      [Report No. 104-714, Part I]

_______________________________________________________________________

                                 A BILL

 To amend title 49, United States Code, to reauthorize programs of the 
        Federal Aviation Administration, and for other purposes.

_______________________________________________________________________

                             July 30, 1996

The Committee on Ways and Means discharged; committed to the Committee 
 of the Whole House on the State of the Union and ordered to be printed

                                                 Union Calendar No. 385
104th CONGRESS
  2d Session
                                H. R. 3539

                      [Report No. 104-714, Part I]

 To amend title 49, United States Code, to reauthorize programs of the 
        Federal Aviation Administration, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 29, 1996

 Mr. Shuster (for himself, Mr. Duncan, Mr. Oberstar, and Mr. Lipinski) 
 introduced the following bill; which was referred to the Committee on 
Transportation and Infrastructure, and in addition to the Committees on 
 Ways and Means, and Rules, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

                             July 26, 1996

                     Committee on Rules discharged

                             July 26, 1996

 Reported from the Committee on Transportation and Infrastructure with 
                              an amendment
 [Strike out all after the enacting clause and insert the part printed 
                          in italic and roman]

                             July 26, 1996

Referral to Ways and Means extended for a period no later than July 29, 
                                  1996

                             July 29, 1996

Referral to Ways and Means extended for a period no later than July 30, 
                                  1996

                             July 30, 1996

The Committee on Ways and Means discharged; committed to the Committee 
 of the Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on May 29, 
                                 1996]

_______________________________________________________________________

                                 A BILL

 
 To amend title 49, United States Code, to reauthorize programs of the 
        Federal Aviation Administration, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Applicability.

                TITLE I--REAUTHORIZATION OF FAA PROGRAMS

Sec. 101. Airport improvement program.
Sec. 102. Airway facilities improvement program.
Sec. 103. Operations of FAA.

                TITLE II--AIRPORT DEVELOPMENT FINANCING

Sec. 201. Apportionments.
Sec. 202. Discretionary fund.
Sec. 203. Use of apportioned amounts.
Sec. 204. Designating current and former military airports.
Sec. 205. Select panel on airport and agency financing.

          TITLE III--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

Sec. 301. Intermodal planning.
Sec. 302. Compliance with Federal mandates.
Sec. 303. Runway maintenance program.
Sec. 304. Access to airports by intercity buses.
Sec. 305. Cost reimbursement for projects commenced prior to grant 
                            award.
Sec. 306. Issuance of letters of intent.
Sec. 307. Selection of projects for grants from discretionary fund.
Sec. 308. Small airport fund.
Sec. 309. State block grant program.
Sec. 310. Private ownership of airports.
Sec. 311. Use of noise set-aside funds by non-airport sponsors.

                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Purchase of housing units.
Sec. 402. Technical correction relating to State taxation.
Sec. 403. Use of passenger facility fees for debt financing project.
Sec. 404. Protection of voluntarily submitted information.
Sec. 405. Supplemental type certificates.
Sec. 406. Restriction on use of revenues.
Sec. 407. Certification of small airports.
Sec. 408. Discretionary authority for criminal history records checks.
Sec. 409. Imposition of fees.
Sec. 410. Authority to close airport located near closed or realigned 
                            military base.
Sec. 411. Construction of runways.
Sec. 412. Gadsden Air Depot, Alabama.
Sec. 413. Regulations affecting intrastate aviation in Alaska.
Sec. 414. Westchester County Airport, New York.
Sec. 415. Bedford Airport, Pennsylvania.
Sec. 416. Location of Doppler radar stations, New York.
Sec. 417. Worcester Municipal Airport, Massachusetts.
Sec. 418. Aircraft Noise Ombudsman.

               TITLE V--METROPOLITAN WASHINGTON AIRPORTS

Sec. 501. Short title.
Sec. 502. Amendment of Metropolitan Washington Airports Act of 1986.
Sec. 503. Use of leased property.
Sec. 504. Board of directors.
Sec. 505. Federal Advisory Commission.
Sec. 506. Review procedure.
Sec. 507. Congressional disapproval procedures.
Sec. 508. Other matters relating to Federal Advisory Commission.
Sec. 509. Effect of judicial orders.
Sec. 510. Federal Advisory Committee Act.
Sec. 511. Use of Dulles Access Highway.
Sec. 512. Amendment of lease.
Sec. 513. Availability of slots.

TITLE VI--RECOMMENDATION TO COMMITTEE ON WAYS AND MEANS ON EXTENSION OF 
     AIRPORT AND AIRWAY TRUST FUND TAXES AND EXPENDITURE AUTHORITY

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

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

SEC. 3. APPLICABILITY.

    (a) In General.--Except as otherwise specifically provided, titles 
I, II, III, and IV of this Act and the amendments made by such titles 
shall apply only to fiscal years beginning after September 30, 1996.
    (b) Limitation on Statutory Construction.--Nothing in this Act or 
any amendment made by this Act shall be construed as affecting funds 
made available for a fiscal year ending before October 1, 1996.

                TITLE I--REAUTHORIZATION OF FAA PROGRAMS

SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 48103 is amended--
            (1) by striking ``September 30, 1981'' and inserting 
        ``September 30, 1996''; and
            (2) by striking ``$17,583,500,000'' and all that follows 
        through the period at the end and inserting the following: 
        ``$2,280,000,000 for fiscal years ending before October 1, 
        1997, $4,627,000,000 for fiscal years ending before October 1, 
        1998, and $7,039,000,000 for fiscal years ending before October 
        1, 1999.''.
    (b) Obligational Authority.--Section 47104(c) is amended by 
striking ``1996'' and inserting ``1999''.

SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 48101(a) is amended 
by striking paragraphs (1) through (4) and inserting the following:
            ``(1) $2,068,000,000 for fiscal year 1997.
            ``(2) $2,129,000,000 for fiscal year 1998.
            ``(3) $2,191,000,000 for fiscal year 1999.''.
    (b) Clerical Amendments.--Chapter 481 is amended--
            (1) by striking the heading for section 48101 and inserting 
        the following:
``Sec. 48101. Air navigation facilities and equipment'';
        and
            (2) in the table of sections by striking the item relating 
        to section 48101 and inserting the following:

``48101. Air navigation facilities and equipment.''.

SEC. 103. OPERATIONS OF FAA.

    (a) Authorization of Appropriations From General Fund.--Section 
106(k) is amended by striking ``$4,088,000,000'' and all that follows 
through the period at the end and inserting the following: 
``$5,158,000,000 for fiscal year 1997, $5,344,000,000 for fiscal year 
1998, and $5,538,000,000 for fiscal year 1999.''.
    (b) Authorization of Appropriations From Trust Fund.--Section 
48104(c) is amended--
            (1) in the subsection heading by striking ``1996'' and 
        inserting ``1999''; and
            (2) by striking ``1994, 1995, and 1996'' and inserting 
        ``1994 through 1999''.
    (c) Limitation on Obligating or Expending Amounts.--Section 
48108(c) is amended by striking ``1996'' and inserting ``1999''.
    (d) Clerical Amendments.--Chapter 481 is amended--
            (1) by striking the heading for section 48104 and inserting 
        the following:
``Sec. 48104. Operations and maintenance'';
        and
            (2) in the table of sections for such chapter by striking 
        the item relating to section 48104 and inserting the following:

``48104. Operations and maintenance.''.

                TITLE II--AIRPORT DEVELOPMENT FINANCING

SEC. 201. APPORTIONMENTS.

    (a) Amounts Apportioned to Sponsors.--
            (1) Primary airports.--Section 47114(c)(1)(A) is amended--
                    (A) by striking ``and'' at the end of clause (iii);
                    (B) in clause (iv) by striking ``additional'' and 
                inserting ``of the next 500,000'';
                    (C) by striking the period at the end of clause 
                (iv) and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(v) $.50 for each additional passenger boarding at the 
        airport during the prior calendar year.''.
            (2) Cargo only airports.--Section 47114(c)(2) of such title 
        is amended to read as follows:
            ``(2) Cargo only airports.--
                    ``(A) Apportionment.--Subject to subparagraph (D), 
                the Secretary shall apportion an amount equal to 2.5 
                percent of the amount subject to apportionment each 
                fiscal year to the sponsors of airports served by 
                aircraft providing air transportation of only cargo 
                with a total annual landed weight of more than 
                100,000,000 pounds.
                    ``(B) Suballocation formula.--Any funds apportioned 
                under subparagraph (A) to sponsors of airports 
                described in subparagraph (A) shall be allocated among 
                those airports in the proportion that the total annual 
                landed weight of aircraft described in subparagraph (A) 
                landing at each of those airports bears to the total 
                annual landed weight of those aircraft landing at all 
                those airports.
                    ``(C) Limitation.--Not more than 8 percent of the 
                amount apportioned under subparagraph (A) may be 
                apportioned for any one airport.
                    ``(D) Distribution to other airports.--Before 
                apportioning amounts to the sponsors of airports under 
                subparagraph (A) for a fiscal year, the Secretary may 
                set-aside a portion of such amounts for distribution to 
the sponsors of other airports, selected by the Secretary, that the 
Secretary finds will be served primarily by aircraft providing air 
transportation of only cargo.
                    ``(E) Determination of landed weight.--Landed 
                weight under this paragraph is the landed weight of 
                aircraft landing at each airport described in 
                subparagraph (A) during the prior calendar year.''.
            (3) Repeal of limitation.--Section 47114(c)(3) is repealed.
    (b) Amounts Apportioned to States.--Section 47114(d)(2) of such 
title is amended--
            (1) by striking ``12'' and inserting ``18.5'';
            (2) in subparagraph (A) by striking ``one'' and inserting 
        ``0.66'';
            (3) in each of subparagraphs (B) and (C) by striking 
        ``49.5'' and inserting ``49.67''; and
            (4) in each of subparagraphs (B) and (C) by striking 
        ``except'' the second place it appears and all that follows 
        through ``title,'' and inserting ``excluding primary airports 
        but including reliever and nonprimary commercial service 
        airports,''.

SEC. 202. DISCRETIONARY FUND.

    Section 47115 is amended by striking the second subsection (f), 
relating to minimum amounts to be credited, and inserting the 
following:
    ``(g) Minimum Amount To Be Credited.--
            ``(1) General rule.--In a fiscal year, there shall be 
        credited to the fund, out of amounts made available under 
        section 48103 of this title, an amount that is at least equal 
        to the sum of--
                    ``(A) $50,000,000; plus
                    ``(B) the total amount required from the fund to 
                carry out in the fiscal year letters of intent issued 
                before January 1, 1996, under section 47110(e) of this 
                title or the Airport and Airway Improvement Act of 
                1982.
        The amount credited is exclusive of amounts that have been 
        apportioned in a prior fiscal year under section 47114 of this 
        title and that remain available for obligation.
            ``(2) Reduction of apportionments.--In a fiscal year in 
        which the amount credited under subsection (a) is less than the 
        minimum amount to be credited under paragraph (1), the total 
        amount calculated under paragraph (3) shall be reduced by an 
        amount that, when credited to the fund, together with the 
        amount credited under subsection (a), equals such minimum 
        amount.
            ``(3) Amount of reduction.--For a fiscal year, the total 
        amount available to make a reduction to carry out paragraph (2) 
        is the total of the amounts determined under sections 
        47114(c)(1)(A), 47114(c)(2), 47114(d), and 47117(e) of this 
        title. Each amount shall be reduced by an equal percentage to 
        achieve the reduction.
    ``(h) Allocation of Amounts Exceeding Letter of Intent 
Requirements.--Of the amount credited to the fund for a fiscal year 
which exceeds the total amount required from the fund to carry out in 
the fiscal year letters of intent issued before January 1, 1996, under 
section 47110(e) of this title or the Airport and Airway Improvement 
Act of 1982--
            ``(1) not less than 15 percent shall be used for system 
        planning and for making grants to airports that are not 
        commercial service airports; and
            ``(2) not less than 30 percent shall be used for making 
        grants to commercial service airports that each year have less 
        than .25 percent of the total passenger boardings in the United 
        States.''.

SEC. 203. USE OF APPORTIONED AMOUNTS.

    (a) Period of Availability.--Section 47117(b) is amended by 
inserting before the period at the end of the first sentence the 
following: ``or the 3 fiscal years immediately following that year in 
the case of a primary airport that had less than .05 percent of the 
total boardings in the United States in the preceding calendar year''.
    (b) Special Apportionment Categories.--Section 47117(e)(1) is 
amended--
            (1) by striking ``made available under section 48103'' and 
        inserting ``available to the discretionary fund under section 
        47115'';
            (2) by striking subparagraphs (A), (C), and (D);
            (3) by redesignating subparagraphs (B) and (E) as 
        subparagraphs (A) and (B), respectively;
            (4) in subparagraph (A), as so redesignated, by striking 
        ``at least 12.5'' and inserting ``At least 31'';
            (5) by adding at the end of subparagraph (A), as so 
        redesignated, the following: ``The Secretary may count the 
        amount of grants made for such planning and programs with funds 
        apportioned under section 47114 in that fiscal year in 
        determining whether or not such 31 percent requirement is being 
        met in that fiscal year.'';
            (6) in subparagraph (B), as so redesignated, by striking 
        ``at least 2.25'' and all that follows through ``1996,'' and 
inserting ``At least 4 percent for each fiscal year thereafter''; and
            (7) by inserting before the period at the end of 
        subparagraph (B), as so redesignated, the following: ``and to 
        sponsors of noncommercial service airports for grants for 
        operational and maintenance expenses at any such airport if the 
        amount of such grants to the sponsor of the airport does not 
        exceed $30,000 in that fiscal year, if the Secretary determines 
        that the airport is adversely affected by the closure or 
        realignment of a military base, and if the sponsor of the 
        airport certifies that the airport would otherwise close if the 
        airport does not receive the grant''.

SEC. 204. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

    (a) General Requirements.--Section 47118(a) is amended--
            (1) by striking ``not more than 15'';
            (2) by inserting after the first sentence the following: 
        ``The maximum number of airports which may be designated by the 
        Secretary under this section at any time is 10.''; and
            (3) by striking ``reduce delays'' and all that follows 
        through ``landings'' and inserting the following: ``enhance 
        airport and air traffic control system capacity in major 
        metropolitan areas and reduce current or projected flight 
        delays''.
    (b) Survey and Considerations.--Section 47118 is amended--
            (1) in subsections (a) and (d) by striking ``section 
        47117(e)(1)(E)'' and inserting ``section 47117(e)(1)(B)''; and
            (2) by striking subsections (b) and (c) and redesignating 
        subsections (d), (e), and (f) as subsections (b), (c), and (d), 
        respectively.
    (c) Parking Lots, Fuel Farms, and Utilities.--Subsection (d) of 
section 47118, as redesignated by subsection (b) of this section, is 
amended by striking ``for the fiscal years ending September 30, 1993-
1996,'' and inserting ``for fiscal years beginning after September 30, 
1992,''.

SEC. 205. SELECT PANEL ON AIRPORT AND AGENCY FINANCING.

    (a) Establishment.--There is established an advisory committee 
which shall be known as the Select Panel on Airport and Agency 
Financing (hereinafter in this section referred to as the ``panel'').
    (b) Functions.--The panel shall evaluate and recommend innovative 
financing mechanisms for ensuring adequate funding for airport capital 
needs and Federal Aviation Administration capital and operating needs.
    (c) Membership.--The panel shall consist of 15 members as follows:
            (1) 7 members appointed by the Secretary of Transportation, 
        in consultation with the Secretary of the Treasury, of whom--
                    (A) 3 shall have expertise in aviation; and
                    (B) 3 shall have expertise in financing, including 
                at least 1 with expertise in airport financing.
            (2) 8 members appointed by Congress as follows:
                    (A) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives.
                    (B) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on 
                Appropriations of the House of Representatives.
                    (C) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on Commerce, 
                Science, and Transportation of the Senate.
                    (D) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on 
                Appropriations of the Senate.
    (d) Restriction on Appointment of Current Aviation Employees.--A 
member appointed under subsection (c)(1) may not be an employee of an 
airline, airport, or aviation trade association at the time of 
appointment or while serving on the panel.
    (e) Chairman.--The Secretary of Transportation, in consultation 
with the Secretary of the Treasury, shall designate a chairman of the 
panel from among the members appointed under subsection (c)(1).
    (f) Charter.--The Secretary of Transportation, in consultation with 
the Secretary of the Treasury, shall provide the panel with a charter 
of the matters to be evaluated and addressed by the panel. The charter, 
at a minimum, shall direct the panel to undertake the following:
            (1) Evaluate and identify current and expected airport 
        capital needs and Federal Aviation Administration capital and 
        operating needs.
            (2) Assess the ability of various financing mechanisms to 
        meet airport capital requirements by type and size of airport. 
        The financing mechanisms to be assessed under this paragraph 
        include the airport improvement program, passenger facility 
        charges, tax-exempt bonds, State and local assistance, airport 
        privatization, infrastructure banks, government-sponsored 
        enterprises, and leveraging of Federal airport funding. In 
conducting the assessment under this paragraph, the panel shall 
consider the special problems of non-hub airports and general aviation 
airports.
            (3) Based on alternative funding scenarios for the airport 
        improvement program ranging from elimination of funding to full 
        funding to current amounts made available, assess and recommend 
        alternative financing approaches that will address airport 
        capital requirements.
            (4) Assess the ability of various financing mechanisms to 
        fund the operations and capital requirements of the Federal 
        Aviation Administration in a manner that will provide for 
        future growth in the Nation's air traffic system, improve the 
        management and performance of the air traffic control system, 
        provide for continued safety improvements, and make the 
        Administration more efficient and effective. The financing 
        mechanisms to be assessed under this paragraph include loan 
        guarantees, financial partnerships with for-profit private 
        sector entities, multi-year appropriations, revolving loan 
        funds, mandatory spending authority, authority to borrow, 
        restructured grant programs, and user fees.
    (g) Independent Audit.--
            (1) Contracts.--Immediately following the appointment of 
        the panel, the panel shall contract with an entity independent 
        of the Federal Aviation Administration and the Department of 
        Transportation to conduct a complete audit of the financial 
        requirements of the Administration, including anticipated air 
        traffic forecasts, other workload measures, and estimated 
        productivity gains which lead to budgetary requirements.
            (2) Deadline.--The independent audit shall be completed no 
        later than 180 days after the date of the contract award and 
        shall be submitted to the panel.
            (3) Funding.--The Administrator of the Federal Aviation 
        Administration shall make available to the panel from funds 
        appropriated to the Administration such sums as may be 
        necessary to enter into a contract under this subsection.
    (h) Travel and Per Diem.--Each member of the panel 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) Utilization of Personnel From FAA.--The Administrator shall 
make available to the panel such staff, information, and administrative 
services and assistance as may reasonably be required to enable the 
panel to carry out its responsibilities under this section.
    (j) Report.--Not later than 1 year after the date of the 
appointment of the last member to the panel under subsection (c), the 
panel shall submit to Congress and the Administrator a report on the 
results of the review conducted under this section.
    (k) GAO Assessment.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall transmit to the 
panel and Congress an independent assessment of airport needs.

          TITLE III--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

SEC. 301. INTERMODAL PLANNING.

    (a) Policies.--Section 47101(g) is amended to read as follows:
    ``(g) Intermodal Planning.--To carry out the policy of subsection 
(a)(5) of this section, the Secretary of Transportation shall take each 
of the following actions:
            ``(1) Coordination in development of airport plans and 
        programs.--Cooperate with State and local officials in 
        developing airport plans and programs that are based on overall 
        transportation needs. The airport plans and programs shall be 
        developed in coordination with other transportation planning 
        and considering comprehensive long-range land-use plans and 
        overall social, economic, environmental, system performance, 
        and energy conservation objectives. The process of developing 
        airport plans and programs shall be continuing, cooperative, 
        and comprehensive to the degree appropriate to the complexity 
        of the transportation problems.
            ``(2) Goals for airport master and system plans.--Encourage 
        airport sponsors and State and local officials to develop 
        airport master plans and airport system plans that--
                    ``(A) foster effective coordination between 
                aviation planning and metropolitan planning;
                    ``(B) include an evaluation of aviation needs 
                within the context of multimodal planning; and
                    ``(C) are integrated with metropolitan plans to 
                ensure that airport development proposals include 
                adequate consideration of land use and ground 
                transportation access.
            ``(3) Representation of airport operators on mpo's.--
        Encourage metropolitan planning organizations, particularly in 
        areas with populations greater than 200,000, to establish 
membership positions for airport operators.''.
    (b) Requirements for Project Grant Applications.--Section 47106(a) 
is amended--
            (1) by inserting ``, including transportation and land use 
        plans'' before the semicolon at the end of paragraph (1);
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(6) with respect to a project for the location of an 
        airport, the sponsor has--
                    ``(A) provided the metropolitan planning 
                organization authorized to conduct metropolitan 
                planning for the area in which the airport is to be 
                located with not less than 30 days (i) to review the 
                airport master plan or the airport layout plan in which 
                the project is described and depicted, and (ii) to 
                submit comments on such plans to the sponsor; and
                    ``(B) included in the sponsor's application to the 
                Secretary the sponsor's written responses to any 
                comments made by the metropolitan planning 
                organization.''.

SEC. 302. COMPLIANCE WITH FEDERAL MANDATES.

    (a) Use of AIP Grants.--Section 47102(3) is amended--
            (1) in subparagraph (E) by inserting ``or under section 
        40117'' before the period at the end; and
            (2) in subparagraph (F) by striking ``paid for by a grant 
        under this subchapter and''.
    (b) Use of Passenger Facility Charges.--Section 40117(a)(3) is 
amended by striking subparagraph (F).

SEC. 303. RUNWAY MAINTENANCE PROGRAM.

    (a) Authority.--Section 47105 is amended by adding at the end the 
following:
    ``(g) Runway Maintenance Program.--The Secretary may carry out a 
pilot program in each of fiscal years 1997, 1998, and 1999 under which 
the Secretary may approve applications under this subchapter for not 
more than 10 projects in each of such fiscal years to preserve and 
extend the useful life of runways and taxiways at any airport for which 
an amount is apportioned under section 47114(d).''.
    (b) Inclusion in Airport Development Activities.--Section 47102(3) 
is amended by adding at the end the following:
                    ``(H) preserving and extending the useful life of 
                runways and taxiways at a public-use airport under the 
                pilot program authorized by section 47105(g) of this 
                title.''.

SEC. 304. 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 to have access to 
        the airport.''.

SEC. 305. COST REIMBURSEMENT FOR PROJECTS COMMENCED PRIOR TO GRANT 
              AWARD.

    (a) Cost Reimbursement.--Section 47110(b)(2)(C) is amended to read 
as follows:
            ``(C) if the Government's share is paid only with amounts 
        apportioned under paragraphs (1) and (2) of section 47114(c) of 
        this title and if the cost is incurred--
                    ``(i) after September 30, 1996;
                    ``(ii) before a grant agreement is executed for the 
                project; and
                    ``(iii) in accordance with an airport layout plan 
                approved by the Secretary and with all statutory and 
                administrative requirements that would have been 
                applicable to the project if the project had been 
                carried out after the grant agreement had been 
                executed;''.
    (b) Use of Discretionary Funds.--Section 47110 is amended by adding 
at the end the following:
    ``(g) Use of Discretionary Funds.--A project for which cost 
reimbursement is provided under subsection (b)(2)(C) shall not receive 
priority consideration with respect to the use of discretionary funds 
made available under section 47115 of this title even if the amounts 
made available under paragraphs (1) and (2) of section 47114(c) are not 
sufficient to cover the Government's share of the cost of project.''.

SEC. 306. ISSUANCE OF LETTERS OF INTENT.

    Section 47110(e) is amended--
            (1) by redesignating paragraph (6) as paragraph (9); and
            (2) by inserting after paragraph (5) the following:
            ``(6) Cost-benefit regulations.--The Secretary shall issue 
        regulations to require a cost-benefit analysis for any letter 
        of intent to be issued under paragraph (1) for a project at an 
airport that each year has more than .25 percent of the total passenger 
boardings in the United States. Until the date on which such 
regulations take effect, the Secretary may not issue a letter of intent 
under paragraph (1) for any project that is not yet under construction 
and that is to be carried out at an airport described in the preceding 
sentence.
            ``(7) Financing plans.--The Secretary shall require airport 
        sponsors to provide, as part of any request for a letter of 
        intent for a project under paragraph (1), specific details on 
        the proposed financing plan for the project.
            ``(8) Consideration.--The Secretary shall consider the 
        effect of a project on overall national air transportation 
        policy when reviewing requests for letters of intent under 
        paragraph (1).''.

SEC. 307. SELECTION OF PROJECTS FOR GRANTS FROM DISCRETIONARY FUND.

    Section 47115(d) is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(4) the priority that the State gives to the project;
            ``(5) the projected growth in the number of passengers that 
        will be using the airport at which the project will be carried 
        out; and
            ``(6) any increase in the number of passenger boardings in 
        the preceding 12-month period at the airport at which the 
        project will be carried out, with priority consideration to be 
        given to projects at airports at which the number of passenger 
        boardings increased by at least 20 percent as compared to the 
        number of passenger boardings in the 12-month period preceding 
        such period.''.

SEC. 308. SMALL AIRPORT FUND.

    Section 47116 is amended by adding at the end the following:
    ``(d) Priority Consideration for Certain Projects.--In making 
grants to sponsors described in subsection (b)(2), the Secretary shall 
give priority consideration to multi-year projects for construction of 
new runways that the Secretary finds are cost beneficial and would 
increase capacity in a region of the United States.''.

SEC. 309. STATE BLOCK GRANT PROGRAM.

    (a) Participating States.--Section 47128 is amended--
            (1) in subsection (a) by striking ``7'' and inserting 
        ``10'';
            (2) in subsection (b)(1)--
                    (A) by striking ``(1)''; and
                    (B) by redesignating subparagraphs (A) through (E) 
                as paragraphs (1) through (5), respectively; and
            (3) by striking subsection (b)(2).
    (b) Use of State Priority System.--Section 47128(c) is amended--
            (1) by striking ``(b)(1)(B) or (C)'' and inserting ``(b)(2) 
        or (b)(3)''; and
            (2) by adding at the end the following: ``In carrying out 
        this subsection, the Secretary shall permit a State to use the 
        priority system of the State if such system is not inconsistent 
        with the national priority system.''.
    (c) Repeal of Expiration Date.--
            (1) In general.--Section 47128 is amended--
                    (A) by striking ``pilot'' in the section heading;
                    (B) by striking ``pilot'' in subsection (a); and
                    (C) by striking subsection (d).
            (2) Conforming amendment.--The table of sections for 
        chapter 471 is amended by striking the item relating to section 
        47128 and inserting the following:

``47128. State block grant program.''.

SEC. 310. PRIVATE OWNERSHIP OF AIRPORTS.

    (a) Establishment of Program.--
            (1) In general.--Subchapter I of chapter 471 is amended by 
        adding at the end the following:
``Sec. 47132. Private ownership of airports
    ``(a) Submission of Applications.--If a sponsor intends to sell an 
airport or lease an airport for a long term to a person (other than a 
public agency), the sponsor and purchaser or lessee may apply to the 
Secretary of Transportation for exemptions under this section.
    ``(b) Approval of Applications.--The Secretary may approve, with 
respect to not more than 6 airports, applications submitted under 
subsection (a) granting exemptions from the following provisions:
            ``(1) Use of revenues.--
                    ``(A) In general.--The Secretary may grant an 
                exemption to a sponsor from the provisions of sections 
                44706(d) and 47107(b) of this title (and any other law, 
                regulation, or grant assurance) to the extent necessary 
                to permit the sponsor to recover from the sale or lease 
                of the airport such amount as may be approved--
                            ``(i) by at least 60 percent of the air 
                        carriers serving the airport; and
                            ``(ii) by the air carrier or air carriers 
                        whose aircraft landing at the airport during 
                        the preceding calendar year had a total landed 
                        weight during the preceding calendar year of at 
                        least 60 percent of the total landed weight of 
                        all aircraft landing at the airport during such 
                        year.
                    ``(B) Landed weight defined.--In this paragraph, 
                the term `landed weight' means the weight of aircraft 
                transporting passengers or cargo, or both, in 
                intrastate, interstate, and foreign air transportation, 
                as the Secretary determines under regulations the 
                Secretary prescribes.
            ``(2) Repayment requirements.--The Secretary may grant an 
        exemption to a sponsor from the provisions of sections 47107 
        and 47152 of this title (and any other law, regulation, or 
        grant assurance) to the extent necessary to waive any 
        obligation of the sponsor to repay to the Federal Government 
        any grants, or to return to the Federal Government any 
        property, received by the airport under this title, the Airport 
        and Airway Improvement Act of 1982, or any other law.
            ``(3) Compensation from airport operations.--The Secretary 
        may grant an exemption to a purchaser or lessee from the 
        provisions of sections 44706(d) and 47107(b) of this title (and 
        any other law, regulation, or grant assurance) to the extent 
        necessary to permit the purchaser or lessee to earn 
        compensation from the operations of the airport.
    ``(c) Terms and Conditions.--The Secretary may approve an 
application under subsection (b) only if the Secretary finds that the 
sale or lease agreement includes provisions satisfactory to the 
Secretary to ensure the following:
            ``(1) The airport will continue to be available for public 
        use on reasonable terms and conditions and without unjust 
        discrimination.
            ``(2) The operation of the airport will not be interrupted 
        in the event that the purchaser or lessee becomes insolvent or 
        seeks or becomes subject to any State or Federal bankruptcy, 
        reorganization, insolvency, liquidation, or dissolution 
        proceeding or any petition or similar law seeking the 
        dissolution or reorganization of the purchaser or lessee or the 
        appointment of a receiver, trustee, custodian, or liquidator 
        for the purchaser or lessee or a substantial part of the 
        purchaser or lessee's property, assets, or business.
            ``(3) The purchaser or lessee will maintain and improve the 
        facilities of the airport and will submit to the Secretary a 
        plan for carrying out such maintenance and improvements.
            ``(4) Every fee of the airport imposed on an air carrier on 
        the day before the date of the sale or lease of the airport 
        will not increase faster than the rate of inflation unless a 
        higher amount is approved--
                    ``(A) by at least 60 percent of the air carriers 
                serving the airport; and
                    ``(B) by the air carrier or air carriers whose 
                aircraft landing at the airport during the preceding 
                calendar year had a total landed weight during the 
                preceding calendar year of at least 60 percent of the 
                total landed weight of all aircraft landing at the 
                airport during such year.
            ``(5) Safety and security at the airport will be maintained 
        at the highest possible levels.
            ``(6) The adverse effects of noise from operations at the 
        airport will be mitigated to the same extent as at a public 
        airport.
            ``(7) Any adverse effects on the environment from airport 
        operations will be mitigated to the same extent as at a public 
        airport.
            ``(8) Any collective bargaining agreement that covers 
        employees of the airport and is in effect on the date of the 
        sale or lease of the airport will not be abrogated by the sale 
        or lease.
    ``(d) Participation of Certain Airports.--If the Secretary approves 
under subsection (b) applications with respect to 6 airports, at least 
one of the airports must be an airport that is not a commercial service 
airport.
    ``(e) Passenger Facility Fees; Apportionments; Service Charges.--
Notwithstanding that the sponsor of an airport receiving an exemption 
under subsection (b) is not a public agency, the sponsor shall not be 
prohibited from--
            ``(1) imposing a passenger facility fee under section 40117 
        of this title;
            ``(2) receiving apportionments under section 47114 of this 
        title; or
            ``(3) collecting reasonable rental charges, landing fees, 
        and other service charges from aircraft operators under section 
        40116(e)(2) of this title.
    ``(f) Effectiveness of Exemptions.--An exemption granted under 
subsection (b) shall continue in effect only so long as the facilities 
sold or leased continue to be used for airport purposes.
    ``(g) Revocation of Exemptions.--The Secretary may revoke an 
exemption issued to a purchaser or lessee of an airport under 
subsection (b)(3) if, after providing the purchaser or lessee with 
notice and an opportunity to be heard, the Secretary determines that 
the purchaser or lessee has knowingly violated any of the terms 
specified in subsection (c) for the sale or lease of the airport.
    ``(h) Nonapplication of Provisions to Airports Owned by Public 
Agencies.--The provisions of this section requiring the approval of air 
carriers in determinations concerning the use of revenues, and 
imposition of fees, at an airport shall not be extended so as to apply 
to any airport owned by a public agency.''.
            (2) Conforming amendment.--The table of sections for such 
        chapter is further amended by adding at the end the following:

``47132. Private ownership of airports.''.
    (b) Taxation.--Section 40116(b) is amended--
            (1) by striking ``a State or'' and inserting ``a State, 
        a''; and
            (2) by inserting after ``of a State'' the following: ``, 
        and any person that has purchased or leased an airport under 
        section 47132 of this title''.
    (c) Resolution of Airport-Air Carrier Disputes Concerning Airport 
Fees.--Section 47129(a) is amended by adding at the end the following:
            ``(4) Fees imposed by privately-owned airports.--In 
        evaluating the reasonableness of a fee imposed by an airport 
        receiving an exemption under section 47132 of this title, the 
        Secretary shall consider whether the airport has complied with 
        section 47132(c)(4).''.

SEC. 311. USE OF NOISE SET-ASIDE FUNDS BY NON-AIRPORT SPONSORS.

    Section 47505 is amended--
            (1) by redesignating subsection (b) as subsection (c);
            (2) in subsection (c), as so redesignated, by striking 
        ``subsection (a) of'' and inserting ``subsection (a) or (b) 
        of''; and
            (3) by inserting after subsection (a) the following:
    ``(b) Grants to Non-Airport Sponsors.--
            ``(1) Authority.--The Secretary may make a grant under this 
        subsection to a State or unit of local government that is not 
        the owner or operator of the airport for preparation of an 
        airport land use compatibility plan or implementation of an 
        airport land use compatibility project.
            ``(2) Planning authority.--In order to be eligible to 
        receive a grant under this subsection for preparation of an 
        airport land use compatibility plan, the State or unit of local 
        government must have authority to plan and adopt land use 
        control measures, including zoning, in the planning area.
            ``(3) Coordination of planning activities.--
                    ``(A) Consistency with other planning.--An airport 
                land use compatibility plan prepared by a State or unit 
                of local government under this subsection may not 
                duplicate or be inconsistent with an airport noise 
                compatibility program prepared by an airport operator 
                under this chapter or with other planning carried out 
                by the airport operator.
                    ``(B) Consultation with airport owners and 
                operators.--A State or unit of local government 
                receiving a grant under this subsection for preparation 
                of an airport land use compatibility plan shall consult 
                with the owner or operator of the airport for which the 
                plan is being prepared regarding any recommended 
                airport land use compatibility measure identified in 
                the plan and any aviation data on which such 
                recommendation is made.
            ``(4) Approval of airport owner or operator required.--The 
        Secretary may make a grant to a State or unit of local 
        government under this subsection for preparation of an airport 
        land use compatibility plan or implementation of an airport 
        land use compatibility project only after receiving the 
        approval of the owner or operator of the airport for which the 
        plan or project is being prepared or implemented. Such approval 
        shall be based on whether the plan or program, including the 
        use of any noise exposure contours on which the plan or project 
        is based, has been coordinated with the airport and is 
        consistent with the airport's operations and planning.
            ``(5) Written assurances.--The Secretary may make a grant 
        to a State or unit of local government under this subsection 
        only after receiving from the State or unit of local government 
        such written assurances as the Secretary determines necessary 
        to achieve the purposes of this subsection.
            ``(6) Guidelines.--The Secretary may establish guidelines 
        in carrying out this subsection.
            ``(7) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Airport compatible land use.--The term 
                `airport compatible land use' means any land use that 
                is usually compatible with--
                            ``(i) the noise levels associated with an 
                        airport, as established under this chapter;
                            ``(ii) airport design standards issued by 
                        the Administrator; and
                            ``(iii) regulations issued to carry out 
                        section 44718 of this title.
                    ``(B) Airport land use compatibility plan.--The 
                term `airport land use compatibility plan' means the 
                product of a process to determine the extent, type, 
                nature, location, and timing of measures to improve the 
                compatibility of land use with the existing forecast 
                level of aviation activity at an airport.
                    ``(C) Airport land use compatibility project.--The 
                term `airport land use compatibility project' means a 
                project that is contained in an airport land use 
                compatibility plan and determined by the Administrator 
                to enhance airport compatible land use.''.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. PURCHASE OF HOUSING UNITS.

    Section 40110 is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Purchase of Housing Units.--
            ``(1) Authority.--In carrying out this part, the 
        Administrator may purchase a housing unit (including a 
        condominium or a housing unit in a building owned by a 
        cooperative) that is located outside the contiguous United 
        States if the cost of the unit is $200,000 or less.
            ``(2) Continuing obligations.--Notwithstanding section 1341 
        of title 31, the Administrator may purchase a housing unit 
        under paragraph (1) even if there is an obligation thereafter 
        to pay necessary and reasonable fees duly assessed upon such 
        unit, including fees related to operation, maintenance, taxes, 
        and insurance.
            ``(3) Certification to congress.--The Administrator may 
        purchase a housing unit under paragraph (1) only if, at least 
        30 days before completing the purchase, the Administrator 
        transmits to the Committee on Transportation and Infrastructure 
        of the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report containing--
                    ``(A) a description of the housing unit and its 
                price;
                    ``(B) a certification that the price does not 
                exceed the median price of housing units in the area; 
                and
                    ``(C) a certification that purchasing the housing 
                unit is the most cost-beneficial means of providing 
                necessary accommodations in carrying out this part.
            ``(4) Payment of fees.--The Administrator may pay, when 
        due, fees resulting from the purchase of a housing unit under 
        this subsection from any amounts made available to the 
        Administrator.''.

SEC. 402. TECHNICAL CORRECTION RELATING TO STATE TAXATION.

    Section 40116(b) is amended by striking ``subsection (c) of this 
section and''.

SEC. 403. USE OF PASSENGER FACILITY FEES FOR DEBT FINANCING PROJECT.

    Section 40117(a)(3) is amended by adding at the end the following:
                    ``(G) for debt financing of a terminal development 
                project at a commercial service airport that each year 
                has .05 percent or less of the total passenger 
                boardings in the United States if construction began on 
                the project after November 5, 1988, and before November 
                5, 1990, and the eligible agency certifies that no 
                other eligible airport-related projects affecting 
                safety, security, or capacity will be deferred by the 
                debt financing project.''.

SEC. 404. 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) General Rule.--Notwithstanding any other provision of law, 
neither the Administrator of the Federal Aviation Administration, nor 
any agency receiving information from the Administrator, may 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;
            ``(2) the receipt of that type of information would aid in 
        fulfilling the Administrator's safety and security 
        responsibilities; and
            ``(3) the withholding of the information would not be 
        inconsistent with the Administrator's safety and security 
        responsibilities.
    ``(b) Regulations.--The Administrator shall issue regulations to 
carry out this section.''.
    (b) Conforming Amendment.--The table of sections for 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. 405. SUPPLEMENTAL TYPE CERTIFICATES.

    Section 44704 is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following:
    ``(b) Supplemental Type Certificates.--
            ``(1) Issuance.--The Administrator may issue a type 
        certificate designated as a supplemental type certificate for a 
        change to an aircraft, aircraft engine, propeller, or 
        appliance.
            ``(2) Contents.--A supplemental type certificate issued 
        under paragraph (1) shall consist of the change to the 
        aircraft, aircraft engine, propeller, or appliance with respect 
        to the previously issued type certificate for the aircraft, 
        aircraft engine, propeller, or appliance.
            ``(3) Requirement.--If the holder of a supplemental type 
        certificate agrees to permit another person to use the 
        certificate to modify an aircraft, aircraft engine, propeller, 
        or appliance, the holder shall provide the other person with 
        written evidence, in a form acceptable to the Administrator, of 
        that agreement. A person may change an aircraft, aircraft 
        engine, propeller, or appliance based on a supplemental type 
        certificate only if the person requesting the change is the 
        holder of the supplemental type certificate or has permission 
        from the holder to make the change.''.

SEC. 406. RESTRICTION ON USE OF REVENUES.

    (a) In General.--Section 44706 is amended by adding at the end the 
following:
    ``(d) Use of Revenues.--
            ``(1) Prohibition.--A person holding an airport operating 
        certificate under this section may not expend local taxes on 
        aviation fuel (except taxes in effect on December 30, 1987) or 
        the revenues generated by the airport for any purpose other 
        than the capital or operating costs of--
                    ``(A) the airport;
                    ``(B) the local airport system; or
                    ``(C) other local facilities owned or operated by 
                the person and directly and substantially related to 
                the air transportation of passengers or property.
            ``(2) Exceptions.--Paragraph (1) does not apply if a 
        provision enacted not later than September 2, 1982, in a law 
        controlling financing by the 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.
            ``(3) Authority to issue waivers to airports not receiving 
        grant assistance.--The Administrator may waive the application 
        of paragraph (1) with respect to any airport that has not 
        received grant assistance under chapter 471 of this title or 
        the Airport and Airway Improvement Act of 1982 in the 10-year 
        period ending on the date of the enactment of this subsection.
            ``(4) Limitation on statutory construction.--This 
        subsection does not prevent the use of a State tax on aviation 
        fuel to support a State aviation program or the use of airport 
        revenue on or off the airport for a noise mitigation 
        purpose.''.
    (b) Penalties.--Section 46301(a)(5) is amended to read as follows:
            ``(5) Penalty for diversion of aviation revenues.--The 
        amount of a civil penalty assessed under this section for a 
        violation of section 47107(b) of this title (or any assurance 
        made under such section) or section 44706(d) of this title may 
        be increased above the otherwise applicable maximum amount 
        under this section to an amount not to exceed 3 times the 
        amount of revenues that are used in violation of such 
        section.''.

SEC. 407. CERTIFICATION OF SMALL AIRPORTS.

    (a) In General.--Section 44706(a) is amended--
            (1) by redesignating paragraph (2) as paragraph (3);
            (2) by inserting after paragraph (1) the following:
            ``(2) that is not located in the State of Alaska and serves 
        any scheduled passenger operation of an air carrier operating 
        aircraft designed for more than 9 passenger seats but less than 
31 passenger seats; and'';
            (3) by striking ``and'' at the end of paragraph (3), as 
        redesignated by paragraph (1) of this subsection;
            (4) by striking ``(3) when'' and inserting ``if''; and
            (5) by moving the matter following paragraph (3), as 
        redesignated by paragraph (1) of this subsection, to the left 
        flush full measure.
    (b) Commuter Airports.--Section 44706 is amended by adding at the 
end the following:
    ``(e) Commuter Airports.--In developing the terms required by 
subsection (b) for airports covered by subsection (a)(2), the 
Administrator shall identify and consider a reasonable number of 
regulatory alternatives and select from such alternatives the least 
costly, most cost-effective or the least burdensome alternative that 
will provide comparable safety at airports described in subsections 
(a)(1) and (a)(2).''.
    (c) Effective Date.--Section 44706 is further amended by adding at 
the end the following:
    ``(f) Effective Date.--Any regulation establishing the terms 
required by subsection (b) for airports covered by subsection (a)(2) 
shall not take effect until such regulation, and a report on the 
economic impact of the regulation on air service to the airports 
covered by the rule, has been submitted to Congress and 120 days have 
elapsed following the date of such submission.''.

SEC. 408. DISCRETIONARY AUTHORITY 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) The Administrator'' and inserting the 
        following:
            ``(1) Employees.--
                    ``(A) Persons with access to aircraft and other 
                secured areas.--The Administrator'';
            (3) by moving the remainder of the text of subparagraph (A) 
        (as designated by paragraph (2) of this subsection), including 
        clauses (i) and (ii) (as designated by paragraph (1) of this 
        subsection), 2 ems to the right; and
            (4) by adding at the end the following:
                    ``(B) Persons responsible for screening passengers 
                and property.--
                            ``(i) In general.--The Administrator may 
                        require by regulation that an employment 
                        investigation (including a criminal history 
                        record check in cases in which the employment 
                        investigation reveals a gap in employment of 12 
                        months or more that the individual does not 
                        satisfactorily account for) be conducted for 
                        individuals who will be responsible for 
                        screening passengers and property under section 
                        44901 of this title and their supervisors.
                            ``(ii) Special rule.--If an individual 
                        requires a criminal history record check under 
                        clause (i), the individual may be employed as a 
                        screener until the check is completed if the 
                        individual is subject to supervision.''.
    (b) Conforming Amendments.--Section 44936(a)(2) is amended--
            (1) by striking ``(2) An air carrier'' and inserting the 
        following:
            ``(2) Responsibility of air carriers, foreign air carriers, 
        and airport operators.--An air carrier''; and
            (2) by moving the remainder of the text of the paragraph 2 
        ems to the right.
    (c) Applicability.--The amendment made by subsection (a)(4) shall 
not apply to an individual employed as a screener, or a supervisor of 
screeners, on the day before the date of the enactment of this Act.

SEC. 409. IMPOSITION OF FEES.

    (a) In General.--Chapter 453 is amended by adding at the end the 
following:
``Sec. 45304. Prohibition on imposition of unauthorized fees; fees for 
              services provided to certain aircraft
    ``(a) Prohibition.--Notwithstanding any other provision of law, the 
Administrator of the Federal Aviation Administration shall not impose 
any fee that is not in effect on the date of the enactment of this 
section and that is not authorized by law.
    ``(b) Authority To Impose Fees.--The Administrator is authorized to 
establish a schedule of fees (and a collection process for such fees), 
to be effective not later than October 1, 1996, for services provided 
by the Administration to aircraft that neither take off from nor land 
in the United States. The schedule shall establish the fees at levels 
that will recover $30,000,000 in the first year in which the fees are 
implemented.''.
    (b) Conforming Amendment.--The table of sections for such chapter 
is amended by adding at the end the following new item:

``45304. Prohibition on imposition of unauthorized fees; fees for 
                            services provided to certain aircraft.''.

SEC. 410. AUTHORITY TO CLOSE AIRPORT LOCATED NEAR CLOSED OR REALIGNED 
              MILITARY BASE.

    Notwithstanding any other provision of a law, rule, or grant 
assurance, an airport that is not a commercial service airport may be 
closed by its sponsor without any obligation to repay grants made under 
chapter 471 of title 49, United States Code, the Airport and Airway 
Improvement Act of 1982, or any other law if the airport is located 
within 3 miles of a military base which has been closed or realigned.

SEC. 411. CONSTRUCTION OF RUNWAYS.

    Notwithstanding section 332 of the Department of Transportation and 
Related Agencies Appropriations Act, 1996 (109 Stat. 457) or any other 
provision of law that specifically restricts the number of runways at a 
single international airport, the Secretary of Transportation may 
obligate funds under chapters 471 and 481 of title 49, United States 
Code, for any project to construct a new runway at such airport, unless 
this section is expressly repealed.

SEC. 412. GADSDEN AIR DEPOT, ALABAMA.

    (a) Authority To Grant Waivers.--Notwithstanding section 16 of the 
Federal Airport Act (as in effect on May 4, 1949), the Secretary is 
authorized, subject to the provisions of section 47153 of title 49, 
United States Code, and the provisions of subsection (b) of this 
section, to waive any of the terms contained in the deed of conveyance 
dated May 4, 1949, under which the United States conveyed certain 
property to the city of Gadsden, Alabama, for airport purposes.
    (b) Conditions.--Any waiver granted under subsection (a) shall be 
subject to the following conditions:
            (1) The city of Gadsden, Alabama, shall agree that, in 
        conveying any interest in the property which the United States 
        conveyed to the city by a deed described in subsection (a), the 
        city will receive an amount for such interest which is equal to 
        the fair market value of such interest (as determined pursuant 
        to regulations issued by the Secretary).
            (2) Any such amount so received by the city shall be used 
        by the city for the development, improvement, operation, or 
        maintenance of a public airport, lands (including any 
        improvements thereto) which produce revenues that are used for 
        airport development purposes, or both.

SEC. 413. REGULATIONS AFFECTING INTRASTATE AVIATION IN ALASKA.

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

SEC. 414. WESTCHESTER COUNTY AIRPORT, NEW YORK.

    Notwithstanding sections 47107(b) and 44706(d) of title 49, United 
States Code, and any other law, regulation, or grant assurance, all 
fees received by Westchester County Airport in the State of New York 
may be paid into the treasury of Westchester County pursuant to section 
119.31 of the Westchester County Charter if the Secretary finds that 
the expenditures from such treasury for the capital and operating costs 
of the Airport after December 31, 1990, have been and will be equal to 
or greater than the fees that such treasury receives from the Airport.

SEC. 415. BEDFORD AIRPORT, PENNSYLVANIA.

    If the Administrator of the Federal Aviation Administration 
decommissions an instrument landing system in Pennsylvania, the 
Administrator shall, if feasible, transfer and install the system at 
Bedford Airport, Pennsylvania.

SEC. 416. LOCATION OF DOPPLER RADAR STATIONS, NEW YORK.

    (a) Prohibition.--No Federal funds may be used for the construction 
of a Doppler radar station at the Coast Guard station in Brooklyn, New 
York.
    (b) Construction of Offshore Platforms.--
            (1) Study.--The Administrator of the Federal Aviation 
        Administration shall conduct a study of the feasibility of 
        constructing 2 offshore platforms to serve as sites for the 
        location of Doppler radar stations for John F. Kennedy 
        International Airport and LaGuardia Airport in New York City, 
        New York.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Administrator shall transmit to 
        Congress a report on the results of the study conducted under 
        paragraph (1), including proposed locations for the offshore 
        platforms. Such locations shall be as far as possible from 
        populated areas while providing appropriate safety measures for 
        John F. Kennedy International Airport and LaGuardia Airport.
    (c) Limitation.--The Administrator shall not begin construction of 
a Doppler radar station for John F. Kennedy International Airport or 
LaGuardia Airport at any location before submitting a report under 
subsection (b).

SEC. 417. WORCESTER MUNICIPAL AIRPORT, MASSACHUSETTS.

    The Secretary of Transportation shall take such actions as may be 
necessary to improve the safety of aircraft landing at Worcester 
Municipal Airport, Massachusetts, including, if appropriate, providing 
air traffic radar service to such airport from the Providence Approach 
Radar Control in Coventry, Rhode Island.

SEC. 418. AIRCRAFT NOISE OMBUDSMAN.

    Section 106 is amended by redesignating subsection (k), as amended 
by section 103 of this Act, as subsection (l) and by inserting after 
subsection (j) the following:
    ``(k) Aircraft Noise Ombudsman.--
            ``(1) Establishment.--There shall be in the Administration 
        an Aircraft Noise Ombudsman.
            ``(2) General duties and responsibilities.--The Ombudsman 
        shall--
                    ``(A) be appointed by the Administrator;
                    ``(B) serve as a liaison with the public on issues 
                regarding aircraft noise; and
                    ``(C) be consulted when the Administration proposes 
                changes in aircraft routes so as to minimize any 
                increases in aircraft noise over populated areas.''.

               TITLE V--METROPOLITAN WASHINGTON AIRPORTS

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Metropolitan Washington Airports 
Amendments Act of 1996''.

SEC. 502. AMENDMENT OF METROPOLITAN WASHINGTON AIRPORTS ACT OF 1986.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Metropolitan Washington 
Airports Act of 1986 (100 Stat. 3341-376 et seq.).

SEC. 503. USE OF LEASED PROPERTY.

    Section 6005(c)(2) is amended by inserting before the period at the 
end of the second sentence the following: ``which are not inconsistent 
with the needs of aviation''.

SEC. 504. BOARD OF DIRECTORS.

    (a) Appointment of Additional Members.--Section 6007(e)(1) is 
amended--
            (1) in the matter preceding subparagraph (A) by striking 
        ``11'' and inserting ``15'';
            (2) in subparagraph (D) by striking ``one member'' and 
        inserting ``five members''.
    (b) Restrictions.--Section 6007(e)(2) is amended by striking 
``except that'' and all that follows through the period and inserting 
``except that the members appointed by the President shall be 
registered voters of States other than Maryland, Virginia, or the 
District of Columbia.''.
    (c) Terms.--Section 6007(e)(3) is amended--
            (1) in subparagraph (B) by striking ``and'' at the end;
            (2) in subparagraph (C) by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) by the President after the date of the 
                enactment of this subparagraph, 2 shall be appointed 
                for 4 years.
        A member may serve after the expiration of that member's term 
        until a successor has taken office.''.
    (d) Vacancies.--Section 6007(e) is further amended by redesignating 
paragraphs (4) and (5) as paragraphs (7) and (8), respectively, and by 
inserting after paragraph (3) the following:
            ``(4) Vacancies.--A vacancy in the board of directors shall 
        be filled in the manner in which the original appointment was 
        made. Any member appointed to fill a vacancy occurring before 
        the expiration of the term for which the member's predecessor 
        was appointed shall be appointed only for the remainder of such 
        term.''.
    (e) Political Parties of Presidential Appointees.--Section 6007(e) 
is further amended by inserting after paragraph (4), as inserted by 
subsection (d) of this section, the following:
            ``(5) Political parties of presidential appointees.--Not 
        more than 3 of the members of the board appointed by the 
        President may be of the same political party.''.
    (f) Duties of Presidential Appointees.--Section 6007(e) is further 
amended by inserting after paragraph (5), as inserted by subsection (e) 
of this section, the following:
            ``(6) Duties of presidential appointees.--In carrying out 
        their duties on the board, members of the board appointed by 
        the President shall ensure that adequate consideration is given 
        to the national interest.''.
    (g) Required Number of Votes.--Section 6007(e)(8), as redesignated 
by subsection (d) of this section, is amended by striking ``Seven'' and 
inserting ``Nine''.

SEC. 505. FEDERAL ADVISORY COMMISSION.

    (a) In General.--Section 6007(f) is amended by striking the 
subsection designation, heading, and paragraph (1) and inserting the 
following:
    ``(f) Federal Advisory Commission.--
            ``(1) Composition.--There is established a Federal Advisory 
        Commission of the Airports Authority which shall represent the 
        interests of users of the Metropolitan Washington Airports and 
        shall be composed of 9 members appointed by the Secretary of 
        Transportation.''.
    (b) References to Board of Review.--The Act is amended--
            (1) in section 6007(f) by striking ``Board of Review'' each 
        place it appears and inserting ``Federal Advisory Commission'';
            (2) in section 6007(f)(3)--
                    (A) in the third sentence by striking ``Board'' 
                each place it appears and inserting ``Commission''; and
                    (B) in the fourth sentence by striking ``Board'' 
                the second place it appears and inserting 
                ``Commission'';
            (3) in the second sentence of section 6007(f)(6), as 
        redesignated by section 508(a) of this Act, by striking 
        ``Board'' and inserting ``Commission'';
            (4) in section 6007(f)(7), as redesignated by section 
        508(a) of this Act, by striking ``Board'' the second place it 
        appears and inserting ``Commission''; and
            (5) in section 6009(b) by striking ``Board of Review'' and 
        inserting ``Federal Advisory Commission''.
    (c) Other Conforming Amendments.--Section 6007(f)(2) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``paragraphs (1)(A) and (1)(B)'' 
                and inserting ``paragraph (1)''; and
                    (B) by striking the second sentence; and
            (2) in subparagraph (D) by striking ``and lists have been 
        provided for appointments to fill such vacancies''.

SEC. 506. REVIEW PROCEDURE.

    (a) Submission of Actions.--Section 6007(f)(4)(A) is amended to 
read as follows:
                    ``(A) Submission required.--
                            ``(i) In general.--An action of the 
                        Airports Authority described in subparagraph 
                        (B) shall be submitted to the Federal Advisory 
                        Commission, the Speaker of the House of 
                        Representatives, and the President Pro Tempore 
                        of the Senate at least 60 days before the 
                        action is to become effective.
                            ``(ii) Urgent and compelling 
                        circumstances.--An action submitted to the 
                        Federal Advisory Commission and Congress in 
                        accordance with clause (i) may become effective 
                        before the expiration of the 60-day period 
                        referred to in clause (i) if the board of 
                        directors certifies, in writing, to the 
                        Secretary and Congress that urgent and 
                        compelling circumstances exist that 
                        significantly affect the interests of the 
                        traveling public and will not permit waiting 
                        for the expiration of such 60-day period.''.
    (b) Recommendations.--Section 6007(f)(4)(C) is amended to read as 
follows:
                    ``(C) Recommendations.--The Federal Advisory 
                Commission may make to the board of directors and 
                Congress recommendations regarding an action within 30 
                calendar days of its submission under this paragraph. 
                Such recommendations may include a recommendation that 
                the action not take effect.''.
    (c) Effect of Recommendations.--
            (1) Repeal.--Section 6007(f)(4) is amended by striking 
        subparagraph (D) and by redesignating subparagraph (E) as 
        subparagraph (D).
            (2) Conforming amendment.--Section 6007(f)(5)(B) is amended 
        by striking ``paragraph (4)(D)(ii)'' and inserting ``paragraph 
        (4)''.
    (d) Expiration of Authority.--Section 6007(f)(4) is amended by 
adding at the end the following:
                    ``(E) Expiration of authority.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the authority of the Airports 
                        Authority to take any of the actions described 
                        in subparagraph (B) shall expire on April 30, 
                        1997.
                            ``(ii) Special rule.--If on any day after 
                        April 29, 1997, all of the members to be 
                        appointed to the board of directors by the 
                        President under subsection (e)(1)(D) are 
                        serving on the board, the authority of the 
                        board referred to in clause (i) shall be 
                        effective beginning on such day and shall 
                        expire on September 30, 1998.''.
    (e) Protection of Certain Actions.--Actions taken by the 
Metropolitan Washington Airports Authority and submitted to the Board 
of Review pursuant to section 6007(f)(4) of the Metropolitan Washington 
Airports Act of 1986 before the date of the enactment of this Act shall 
remain in effect and shall not be set aside solely by reason of a 
judicial order invalidating certain functions of the Board of Review.

SEC. 507. CONGRESSIONAL DISAPPROVAL PROCEDURES.

    (a) Committee Referral.--Section 6007(f)(5)(C) is amended--
            (1) by striking ``Public Works and Transportation'' and 
        inserting ``Transportation and Infrastructure''; and
            (2) by striking ``Commerce, Science and Technology'' and 
        inserting ``Commerce, Science, and Transportation''.
    (b) House Procedure.--Section 6007(f)(5) is amended--
            (1) by striking subparagraphs (D), (E), and (F);
            (2) by redesignating subparagraphs (G) and (H) as 
        subparagraphs (E) and (F), respectively; and
            (3) by inserting after subparagraph (C) the following:
                    ``(D) House procedure.--When the Committee of the 
                House has reported a resolution, it is in order at any 
                time on or after the third day on which the report on 
                the resolution has been available to Members pursuant 
                to clause 2(l)(6) of House Rule XI, for the chairman of 
                the committee or a designee to move to proceed to the 
                consideration in the House of the resolution. The 
                motion is highly privileged, and is not subject to 
                debate or to intervening motion or otherwise subject to 
                points of order, nor shall it be in order to move to 
                reconsider the vote by which the motion is agreed to or 
                not agreed to. If the motion is agreed to, the 
                resolution shall be considered in the House and 
                debatable for not to exceed 2 hours to be equally 
                divided and controlled by the chairman and the ranking 
                minority member of the committee. The previous question 
                shall be considered as ordered on the resolution to 
                final passage without intervening motion. A motion to 
                reconsider the vote on passage of the resolution shall 
                not be in order.''.

SEC. 508. OTHER MATTERS RELATING TO FEDERAL ADVISORY COMMISSION.

    (a) Request for Consideration of Other Matters; Participation in 
Meetings.--Section 6007(f) is amended by striking paragraphs (6) and 
(7) and by redesignating paragraphs (8), (9), (10), and (11) as 
paragraphs (6), (7), (8), and (9), respectively.
    (b) Removal of Federal Advisory Commission Members.--Section 
6007(f)(9), as redesignated by subsection (a) of this section, is 
amended by striking ``by a two-thirds vote of the board of directors'' 
and inserting ``by the Secretary of Transportation''.

SEC. 509. EFFECT OF JUDICIAL ORDERS.

    (a) In General.--Section 6007 is amended by striking subsection (h) 
and by redesignating subsection (i) as subsection (h).
    (b) Conforming Amendment.--Section 6011 is amended by striking 
``Except as provided in section 6007(h), if'' and inserting ``If''.

SEC. 510. FEDERAL ADVISORY COMMITTEE ACT.

    Section 6007 is further amended by inserting after subsection (h), 
as redesignated by section 509(a) of this Act, the following:
    ``(i) Federal Advisory Committee Act.--The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the Federal Advisory 
Commission.''.

SEC. 511. USE OF DULLES ACCESS HIGHWAY.

    The Act is further amended by adding at the end the following:

``SEC. 6013. USE OF DULLES ACCESS HIGHWAY.

    ``(a) Restrictions.--The Airports Authority shall continue in 
effect and enforce paragraphs (1) and (2) of section 4.2 of the 
Metropolitan Washington Airports Regulations, as in effect on February 
1, 1995.
    ``(b) Enforcement.--The district courts of the United States shall 
have jurisdiction to compel the Airports Authority and its officers and 
employees to comply with the requirements of this section. An action 
may be brought on behalf of the United States by the Attorney General, 
or by any aggrieved party.''.

SEC. 512. AMENDMENT OF LEASE.

    The Secretary of Transportation shall amend the lease entered into 
with the Metropolitan Washington Airports Authority under section 
6005(a) of the Metropolitan Washington Airports Act of 1986 to secure 
the Airports Authority's consent to the amendments made to such Act by 
this Act.

SEC. 513. AVAILABILITY OF SLOTS.

    (a) In General.--Section 41714 of title 49, United States Code, is 
amended--
            (1) in subsections (a)(1), (b)(1), and (c)(1) by striking 
        ``(other than Washington National Airport)''; and
            (2) by redesignating subsection (h) as subsection (i) and 
        by inserting after subsection (g) the following:
    ``(h) Limitation on Authority To Grant Exemptions.--The Secretary 
shall not issue an exemption under this section to the requirements of 
subparts K and S of part 93 of title 14 of the Code of Federal 
Regulations (pertaining to slots at high density airports) if the grant 
of such exemption would adversely affect safety.''.
    (b) Conforming Amendment.--Section 6009(e)(1) is amended by 
striking ``The Administrator'' and inserting ``Except as provided by 
section 41714 of title 49, United States Code, the Administrator''.

TITLE VI--RECOMMENDATION TO COMMITTEE ON WAYS AND MEANS ON EXTENSION OF 
     AIRPORT AND AIRWAY TRUST FUND TAXES AND EXPENDITURE AUTHORITY

    The Committee on Transportation and Infrastructure of the House of 
Representatives recommends the following provisions, which are printed 
in roman and shall have no legal effect, to the Committee on Ways and 
Means of the House of Representatives for its consideration:

SEC. ____. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXCISE TAXES.

    (a) Fuel Tax.--
            (1) Subparagraph (A) of section 4091(b)(3) of the Internal 
        Revenue Code of 1986 is amended to read as follows:
                    ``(A) The rate of tax specified in paragraph (1) 
                shall be 4.3 cents per gallon--
                            ``(i) after December 31, 1995, and before 
                        the date which is 30 days after the date of the 
                        enactment of the Federal Aviation Authorization 
                        Act of 1996, and
                            ``(ii) after December 31, 1999.''
            (2) Section 4081(d) of such Code is amended--
                    (A) by adding at the end the following new 
                paragraph:
            ``(3) Aviation gasoline.--After December 31, 1999, the rate 
        of tax specified in subsection (a)(2)(A)(i) on aviation 
        gasoline shall be 4.3 cents per gallon.'', and
                    (B) by inserting in paragraph (1) ``(other than the 
                tax on aviation gasoline)'' after ``subsection 
                (a)(2)(A)''.
            (3) Section 4041(c)(5) of such Code is amended by inserting 
        ``, and during the period beginning on the date which is 30 
        days after the date of the enactment of the Federal Aviation 
        Authorization Act of 1996 and ending on December 31, 1999'' 
        after ``December 31, 1995''.
    (b) Ticket Taxes.--Sections 4261(g) and 4271(d) of such Code are 
each amended by striking ``January 1, 1996'' and inserting ``January 1, 
1996, and to transportation beginning on or after the date which is 30 
days after the date of the enactment of the Federal Aviation 
Authorization Act of 1996 and before January 1, 2000''.
    (c) Transfers to Airport and Airway Trust Fund.--
            (1) Subsection (b) of section 9502 of such Code is amended 
        by striking ``January 1, 1996'' each place it appears and 
        inserting ``January 1, 2000''.
            (2) Paragraph (3) of section 9502(f) of such Code is 
        amended to read as follows:
            ``(3) Termination.--Notwithstanding the preceding 
        provisions of this subsection, the Airport and Airway Trust 
        Fund financing rate shall be zero with respect to--
                    ``(A) taxes imposed after December 31, 1995, and 
                before the date which is 30 days after the date of the 
                enactment of the Federal Aviation Authorization Act of 
                1996, and
                    ``(B) taxes received after December 31, 1999.''
            (3) Subsection (d) of section 9502 of such Code is amended 
        by adding at the end the following new paragraph:
            ``(5) Transfers from airport and airway trust fund on 
        account of refunds of taxes on transportation by air.--The 
        Secretary of the Treasury shall pay from time to time from the 
        Airport and Airway Trust Fund into the general fund of the 
        Treasury amounts equivalent to the amounts paid after December 
        31, 1995, under section 6402 (relating to authority to make 
        credits or refunds) or section 6415 (relating to credits or 
        refunds to persons who collected certain taxes) in respect of 
        taxes under sections 4261 and 4271.''
    (d) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act, except 
        that the amendment made by subsection (b) shall not apply to 
        any amount paid on or before such date.
            (2) Transfers.--The amendments made by subsection (c) shall 
        take effect on January 1, 1996.

SEC. ____. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURES.

    (a) Extension of Expenditure Authority.--Paragraph (1) of section 
9502(d) of the Internal Revenue Code of 1986 is amended by striking 
``October 1, 1996'' and inserting ``October 1, 1999''.
    (b) Extension of Trust Fund Purposes.--Subparagraph (A) of section 
9502(d)(1) of such Code is amended by adding before the semicolon at 
the end ``or the Federal Aviation Authorization Act of 1996''.

SEC. ____. RESTORATION AND EXTENSION OF EXEMPTION FOR COMMERCIAL 
              AVIATION.

    (a) In General.--Paragraph (2) of section 4092(b) of the Internal 
Revenue Code of 1986 (relating to exemption from certain taxes on fuel 
used in commercial aviation) is amended to read as follows:
            ``(2) 4.3 cents per gallon of the rate specified in section 
        4091(b)(1) in the case of fuel sold--
                    ``(A) after September 30, 1995, and before the date 
                which is 30 days after the date of the enactment of the 
                Federal Aviation Authorization Act of 1996, and
                    ``(B) after December 31, 1999.''
    (b) Conforming Amendments.--
            (1) Subparagraph (B) of section 6421(f)(2) of such Code is 
        amended to read as follows:
                    ``(B) in aviation which is not noncommercial 
                aviation (as so defined) with respect to the tax 
                imposed by section 4081 at--
                            ``(i) the Leaking Underground Storage Tank 
                        Trust Fund financing rate, and
                            ``(ii) so much of the rate specified in 
                        section 4081(a)(2)(A) as does not exceed 4.3 
                        cents per gallon in the case of fuel 
                        purchased--
                                    ``(I) after September 30, 1995, and 
                                before the date which is 30 days after 
                                the date of the enactment of the 
                                Federal Aviation Authorization Act of 
                                1996, and
                                    ``(II) after December 31, 1999.''
            (2) Subparagraph (B) of section 6427(l)(4) of such Code is 
        amended to read as follows:
                    ``(B) so much of the rate specified in section 
                4091(b)(1) as does not exceed 4.3 cents per gallon in 
                the case of fuel purchased--
                            ``(i) after September 30, 1995, and before 
                        the date which is 30 days after the date of the 
                        enactment of the Federal Aviation Authorization 
                        Act of 1996, and
                            ``(ii) after December 31, 1999.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. ____. FLOOR STOCKS TAXES ON AVIATION FUEL.

    (a) Imposition of Tax.--
            (1) In general.--In the case of aviation fuel on which tax 
        was imposed under section 4091 of the Internal Revenue Code of 
        1986 before the tax-increase date described in subsection 
        (c)(1)(A) and which is held on such date by any person, there 
        is hereby imposed a floor stocks tax of 17.5 cents per gallon.
            (2) Commercial aviation fuel on january 1, 2000.--In the 
        case of commercial aviation fuel on which tax was imposed under 
        section 4091 of such Code before January 1, 2000, and which is 
        held on such date by any person, there is hereby imposed a 
        floor stocks tax of 4.3 cents per gallon.
    (b) Liability for Tax and Method of Payment.--
            (1) Liability for tax.--A person holding aviation fuel on a 
        tax-increase date to which the tax imposed by subsection (a) 
        applies shall be liable for such tax.
            (2) Method of payment.--The tax imposed by subsection (a) 
        shall be paid in such manner as the Secretary shall prescribe.
            (3) Time for payment.--The tax imposed by subsection (a) 
        with respect to any tax-increase date shall be paid on or 
        before the first day of the 7th month beginning after such tax-
        increase date.
    (c) Definitions.--For purposes of this section--
            (1) Tax increase date.--The term ``tax-increase date'' 
        means--
                    (A) the date which is 30 days after the date of the 
                enactment of this Act, and
                    (B) January 1, 2000.
            (2) Aviation fuel.--The term ``aviation fuel'' has the 
        meaning given such term by section 4093 of such Code.
            (3) Commercial aviation fuel.--The term ``commercial 
        aviation fuel'' means aviation fuel which is held on January 1, 
        2000, for sale or use in commercial aviation (as defined in 
        section 4092(b) of such Code).
            (4) Held by a person.--Aviation fuel shall be considered as 
        ``held by a person'' if title thereto has passed to such person 
        (whether or not delivery to the person has been made).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or his delegate.
    (d) Exception for Exempt Uses.--The tax imposed by subsection (a) 
shall not apply to aviation fuel held by any person on any tax-increase 
date exclusively for any use for which a credit or refund of the entire 
tax imposed by section 4091 of such Code is allowable for aviation fuel 
purchased on or after such tax-increase date for such use.
    (e) Exception for Certain Amounts of Fuel.--
            (1) In general.--No tax shall be imposed by subsection (a) 
        on aviation fuel held on any tax-increase date by any person if 
        the aggregate amount of aviation fuel held by such person on 
        such date does not exceed 2,000 gallons. The preceding sentence 
        shall apply only if such person submits to the Secretary (at 
        the time and in the manner required by the Secretary) such 
        information as the Secretary shall require for purposes of this 
        paragraph.
            (2) Exempt fuel.--For purposes of paragraph (1), there 
        shall not be taken into account fuel held by any person which 
        is exempt from the tax imposed by subsection (a) by reason of 
        subsection (d).
            (3) Controlled groups.--For purposes of this subsection--
                    (A) Corporations.--
                            (i) In general.--All persons treated as a 
                        controlled group shall be treated as 1 person.
                            (ii) Controlled group.--The term 
                        ``controlled group'' has the meaning given to 
                        such term by subsection (a) of section 1563 of 
                        such Code; except that for such purposes the 
                        phrase ``more than 50 percent'' shall be 
                        substituted for the phrase ``at least 80 
                        percent'' each place it appears in such 
                        subsection.
                    (B) Nonincorporated persons under common control.--
                Under regulations prescribed by the Secretary, 
                principles similar to the principles of subparagraph 
                (A) shall apply to a group of persons under common 
                control where 1 or more of such persons is not a 
                corporation.
    (f) Other law applicable.--All provisions of law, including 
penalties, applicable with respect to the taxes imposed by section 4091 
of such Code shall, insofar as applicable and not inconsistent with the 
provisions of this section, apply with respect to the floor stock taxes 
imposed by subsection (a) to the same extent as if such taxes were 
imposed by such section 4091.

SEC. ____. REDUCTION IN AVIATION TICKET TAX IN CERTAIN CASES.

    (a) In General.--Part III of subchapter C of chapter 33 of the 
Internal Revenue Code of 1986 (relating to special provisions 
applicable to taxes on transportation by air) is amended by adding at 
the end the following new section:

``SEC. 4283. REDUCTION IN AVIATION TICKET TAX IN CERTAIN CASES.

    ``(a) General Rule.--For each fiscal year, the Secretary shall--
            ``(1) determine whether such fiscal year was a funding 
        shortfall year, and
            ``(2) in such a case, prescribe a tax rate which shall 
        apply under section 4261(a) to amounts paid during the first 
        calendar year beginning after the close of such fiscal year.
    ``(b) Funding Shortfall Year.--For purposes of this section--
            ``(1) In general.--The term `funding shortfall year' means 
        any fiscal year for which there is a funding shortfall.
            ``(2) Funding shortfall.--The term `funding shortfall' 
        means, with respect to any fiscal year, the amount by which--
                    ``(A) the aggregate amounts authorized to be 
                obligated under such section 48103 for the fiscal year, 
                exceeds
                    ``(B) the aggregate amounts available for 
                obligation under section 48103 of title 49, United 
                States Code for the fiscal year.
            ``(3) Special rules.--
                    ``(A) Treatment of prior year amounts.--For 
                purposes of paragraph (2)(A), an amount shall be 
                treated as authorized only for the first fiscal year 
                for which it is authorized.
                    ``(B) Treatment of sequestered amounts.--The 
                determination under paragraph (2) shall not take into 
                account the sequestration of any amount described 
                therein pursuant to an order under part C of title II 
                of the Balanced Budget and Emergency Deficit Control 
                Act of 1985 (or any successor law).
                    ``(C) Treatment of rescissions.--The determination 
                under paragraph (2)(A) shall not take into account the 
                rescission of any amount authorized to obligated under 
                section 48103 of title 49, United States Code for a 
                fiscal year.
    ``(c) Determination of Tax Rate.--The rate prescribed by the 
Secretary under subsection (a) which shall apply in lieu of the rate 
otherwise applicable under section 4261(a) for any calendar year shall 
be the rate which the Secretary estimates will result in a reduction in 
tax revenues equal to the funding shortfall for the most recent fiscal 
year ending before such calendar year.''
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter C of chapter 33 of such Code is amended by adding at the end 
the following new item:

                              ``Sec. 4283. Reduction in aviation ticket 
                                        tax in certain cases.''
    (c) Effective Date.--The amendments made by this section shall 
apply to fiscal years beginning after the date of the enactment of this 
Act.
```