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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 471 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 471

To amend the Federal Aviation Act of 1958 to enhance competition among 
  air carriers by prohibiting an air carrier who operates a computer 
   reservation system from discriminating against other air carriers 
participating in the system and among travel agents which subscribe to 
                  the system, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 1993

 Mr. Oberstar introduced the following bill; which was referred to the 
              Committee on Public Works and Transportation

_______________________________________________________________________

                                 A BILL

 
To amend the Federal Aviation Act of 1958 to enhance competition among 
  air carriers by prohibiting an air carrier who operates a computer 
   reservation system from discriminating against other air carriers 
participating in the system and among travel agents which subscribe to 
                  the system, 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.

    This Act may be cited as the ``Airline Competition Enhancement Act 
of 1993''.

SEC. 2. COMPUTER RESERVATION SYSTEMS.

    (a) In General.--Title IV of the Federal Aviation Act of 1958 (49 
U.S.C. App. 1371-1389) is amended by adding at the end the following 
new section:

``SEC. 420. COMPUTER RESERVATIONS SYSTEMS.

    ``(a) Prohibitions Against Vendor Discrimination.--
            ``(1) In general.--No vendor, in the operation of its 
        computer reservation system, may unjustly discriminate among 
        participants in such system. For purposes of this subsection, 
        unjust discrimination shall include, but not be limited to, 
        practices prohibited by this subsection. A prohibition of a 
        practice for which an effective date is specified in paragraph 
        (2) shall take effect on such date.
            ``(2) Specified prohibited crs operational practices.--No 
        vendor, in the operation of its computer reservation system, 
        may--
                    ``(A)(i) make available to subscribers an 
                integrated display in which information is ordered or 
                emphasized based upon factors relating to air carrier 
                identity; or
                    ``(ii) supply information from its computer 
                reservations system to any person creating or 
                attempting to create such an integrated display if the 
                vendor knows or has reason to know that such person 
                intends to create or attempt to create such an 
                integrated display; except that the prohibition 
                contained in this clause shall not apply to the extent 
                that the vendor is supplying the information to a 
                subscriber creating, in accordance with the conditions 
                of the exception contained in subsection (c)(1), an 
                integrated display using information from the system;
                    ``(B) make available, after September 30, 1994, to 
                a subscriber any subscriber transaction capability 
                which is more functional, timely, complete, accurate, 
                reliable, secure, or efficient, is easier for the 
                subscriber to use or access, or provides to the 
                subscriber a different level of confirmation of 
                transactions, with respect to one participant than with 
                respect to any other participant; except to the extent 
                that the vendor is offering the other participant the 
                opportunity to participate in such capability at the 
                same price and terms as other participants and the 
                participant has not accepted such offer;
                    ``(C) make available, after September 30, 1994, to 
                a participant any participant transaction capability 
                which is more functional, timely, complete, accurate, 
                reliable, secure, or efficient with respect to one 
                participant than with respect to any other participant; 
                except to the extent that the vendor is offering the 
                other participant the opportunity to participate in 
                such capability at the same price and terms as other 
                participants and the participant has not accepted such 
                offer;
                    ``(D) charge any separate participant fee for, or 
                require compliance with any terms or conditions 
                relating to, the provision of any computer reservation 
                system feature, function, or service which the vendor 
                offers as a separate option to the participant for the 
                purpose of complying with the requirements of this 
                subsection, unless such fee, terms, or conditions are 
                reasonable; or
                    ``(E) directly or indirectly prohibit a subscriber 
                from obtaining or using any other computer reservation 
                system.
            ``(3) Prohibition against inducing discrimination.--No 
        vendor or air carrier shall require, or provide any incentives 
        to induce, any subscriber to use information from a computer 
        reservation system to create an integrated display in which 
        information is ordered or emphasized based upon factors 
        relating to air carrier identity.
            ``(4) Use of third-party hardware, software, and data 
        bases.--
                    ``(A) In general.--Except on grounds of 
                demonstrated technological incompatibility, no vendor 
                may prohibit or unreasonably restrict, directly or 
                indirectly--
                            ``(i) the interconnection to its computer 
                        reservation system equipment of computer 
                        hardware or software supplied by a person other 
                        than such vendor; or
                            ``(ii) the use by a subscriber, to access 
                        directly any other computer reservation system 
                        or data base, of hardware and communications 
                        lines supplied by any other vendor.
                    ``(B) Specified prohibitions.--The practices 
                prohibited by subparagraph (A) include, but are not 
                limited to, the following:
                            ``(i) The imposition of fees in excess of 
                        reasonable levels to certify or interconnect 
                        third-party equipment or to use equipment 
                        supplied by any other vendor to access any 
                        other computer reservation system or data base.
                            ``(ii) Undue delays or redundant or 
                        unnecessary testing before certifying or 
                        interconnecting such equipment or access.
                            ``(iii) The imposition of requirements that 
                        subscribers use the vendor's computer 
                        reservation system for any minimum number or 
                        percentage of the subscriber's bookings.
                            ``(iv) Refusals to provide any services, 
                        compensation, or other benefits normally 
                        provided subscribers on account of the 
                        subscriber's using third-party equipment or the 
                        subscriber's using the same equipment for 
                        access to both the vendor's computer 
                        reservations system and other computer 
                        reservation systems and data bases.
                            ``(v) The termination of a subscriber 
                        contract because of the subscriber's use of 
                        third-party equipment or the use of the same 
                        equipment for access to the vendor's computer 
                        reservations system and any other computer 
                        reservation systems or data bases.
            ``(5) Extension of contract as condition to providing 
        additional system components.--No vendor may require, as a 
        condition for providing to a subscriber additional computer 
        reservation system components (including software and 
        enhancements), that the term of the subscriber contract for 
        previously provided system components be extended.
            ``(6) Use of system in sale of air transportation 
        services.--No vendor may require use of its computer 
        reservation system by the subscriber in any sale by the 
        subscriber of air transportation services of the vendor.
            ``(7) Use of system as condition to compensation for sale 
        of services.--No vendor may require that a subscriber use or 
        subscribe to its computer reservation system as a condition to 
        the receipt of any compensation for the sale of air 
        transportation services by the subscriber.
            ``(8) Conditional prices.--No vendor may charge prices to 
        subscribers conditioned in whole or in part on the identity of 
        air carriers whose air transportation services are sold by the 
        subscriber.
    ``(b) Subscriber Contract Restraints.--
            ``(1) Term of contract.--
                    ``(A) General rule.--Except as provided in 
                subparagraph (B), no subscriber contract provision 
                shall be enforceable in law or equity after the 180th 
                day following the date of the enactment of this section 
                to the extent that such provision provides for the term 
                of the contract to be more than 3 years.
                    ``(B) Grandfather of certain existing contracts.--
                This paragraph shall not apply to a contract--
                            ``(i) which is in effect on the date of the 
                        enactment of this section,
                            ``(ii) which is for a term of not more than 
                        5 years, and
                            ``(iii) with respect to which all parties 
                        to the contract have agreed, in writing, after 
                        such date of enactment and before the 180th day 
                        following such date of enactment, that the 
                        contract will be enforceable, subject to other 
                        paragraphs of this subsection, until the last 
                        day of its term.
            ``(2) Other provisions.--No subscriber contract provision 
        shall be enforceable in law or equity to the extent that such 
        provision--
                    ``(A) forms a basis for a claim of actual or 
                liquidated damages by the vendor in the event of 
                cancellation of the contract, except as follows:
                            ``(i) damages related to the vendor's 
                        actual cost of removing its equipment from the 
                        subscriber's premises;
                            ``(ii) the unamortized share of the 
                        vendor's actual cost of installing such 
                        equipment in the subscriber's premises 
                        exclusive of any element of capital investment 
                        in such equipment; and
                            ``(iii) other amounts owed to the vendor by 
                        the subscriber during the unexpired term of the 
                        contract, but in no event including amounts 
                        which are in the nature of a penalty for 
                        cancellation or which otherwise become due upon 
                        cancellation;
                    ``(B) extends, or provides for the extension of, 
                the contract beyond its stated date of termination, 
                whether because of the addition or deletion of 
                equipment or because of some other event;
                    ``(C) provides an expiration date later than the 
                earliest expiration date of any other contract for 
                computer reservations services or equipment between the 
                same subscriber and vendor;
                    ``(D) directly or indirectly requires that the 
                subscriber use the vendor's computer reservations 
                system for a minimum volume of transactions, whether 
                measured as an absolute number, a percentage of total 
                transactions of any kind, or otherwise (including 
                making failure to comply with such a requirement a 
                breach or violation of the contract or a ground for 
                termination of the contract); and
                    ``(E) directly or indirectly requires the 
                subscriber to use a minimum number or ratio of system 
                components based upon or related to the number of 
                system components leased from another vendor (including 
                making failure to comply with such a requirement a 
                breach or violation of the contract or a ground for 
                termination of the contract).
    ``(c) Prohibition of Subscriber Modification of Information.--No 
subscriber may use computer software or hardware to modify information 
in a computer reservation system or derived from a computer reservation 
system in such a way as to produce--
            ``(1) integrated displays of such information in which 
        information is ordered or emphasized based on factors relating 
        to air carrier identity, except that the subscriber may use the 
        software or hardware to create such displays of air 
        transportation services--
                    ``(A) if, before such use, the displays have been 
                requested by a customer of the subscriber in writing;
                    ``(B) if the request is kept on file by the 
                subscriber until there has been a period of at least 2 
                years in which the customer has not purchased any 
                services from the subscriber; and
                    ``(C) if the software or hardware is used only with 
                respect to such customer; or
            ``(2) displays of such information which provide subscriber 
        transaction capability which violates subsection (a)(2)(B) or 
        participant transaction capability which violates subsection 
        (a)(2)(C).
    ``(d) Reporting.--
            ``(1) Quarterly reports.--Not later than the last day of 
        the 1st calendar quarter following the date of the enactment of 
        this section and of each calendar quarter following such 1st 
        calendar quarter and ending on or before December 31, 1994, 
        each vendor shall submit to the Secretary a report describing 
        the manner in which the vendor proposes to achieve and is 
        achieving compliance with subsections (a)(2)(A), (a)(2)(B), 
        (a)(2)(C), and (a)(2)(D).
            ``(2) Report of secretary.--On or before September 30, 
        1993, the Secretary shall transmit to the Committee on Public 
        Works and Transportation of the House of Representatives and 
        the Committee on Commerce, Science, and Transportation of the 
        Senate a report, based on the reports filed by vendors pursuant 
        to paragraph (1) of this subsection--
                    ``(A) which describes the progress which each 
                vendor has made in achieving compliance with 
                subsections (a)(2)(A), (a)(2)(B), (a)(2)(C), and 
                (a)(2)(D);
                    ``(B) which compares and contrasts the participant 
                transaction capabilities and subscriber transaction 
                capabilities, including the protocols of each vendor 
                with each participant; and
                    ``(C) which includes a tentative finding by the 
                Secretary as to whether each vendor is making 
                satisfactory progress toward, and is likely to achieve, 
                compliance with each of such subsections in accordance 
                with any time limit contained in such subsection.
        The Secretary shall provide each vendor a copy of the report 
        transmitted under this paragraph within 30 days after the date 
        of such transmittal.
            ``(3) Supplemental vendor report.--If the report 
        transmitted under paragraph (2) includes a finding of the 
        Secretary that a vendor is not making satisfactory progress 
        toward, or is not likely to achieve, compliance with subsection 
        (a)(2)(A), (a)(2)(B), (a)(2)(C), or (a)(2)(D) in accordance 
        with any time limit contained in such subsection, the Secretary 
        shall require the vendor to submit to the Secretary a 
        supplemental report describing the manner in which the vendor 
        proposes to achieve compliance with such subsection.
            ``(4) Maintenance of records.--Not later than 90 days after 
        the date of the enactment of this section, the Secretary shall 
        issue regulations requiring each vendor to maintain such 
        information concerning its computer reservation system as the 
        Secretary determines is necessary to enable the Secretary to 
        determine whether or not the vendor is making progress toward 
        achieving compliance, or is in compliance, with this section. 
        Such regulations shall establish the form and substance of the 
        information to be maintained.
    ``(e) Monitoring of Participant Fees.--Not later than June 30, 
1993, and each March 31 thereafter, the Secretary shall transmit, to 
the Committee on Public Works and Transportation of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate, a report on the participant fees charged 
by vendors during the preceding calendar year, including whether such 
fees represent an increase or decrease over the fees charged previously 
and whether, in the opinion of the Secretary, such fees are reasonable.
    ``(f) Special Rules for Certain Violations.--
            ``(1) Applicability.--The procedures and time limits set 
        forth in this subsection shall apply to any complaint filed 
        with the Secretary alleging a violation of this section 
        (including any regulation issued to carry out this section or 
        otherwise relating to computer reservation systems).
            ``(2) Deadline for decision with respect to a complaint.--
        Not later than the 90th day following the date of the filing of 
        a complaint to which this subsection applies, the Secretary 
        shall issue--
                    ``(A) on the basis of the information filed with 
                respect to the complaint and any other information 
                available to the Secretary, an order which determines 
                that there is not a material issue of fact with respect 
                to the complaint and--
                            ``(i) which finds that the violation has 
                        not occurred and dismisses the complaint; or
                            ``(ii) which finds, after compliance with 
                        the procedures of section 1002(c) of this Act, 
                        that the violation has occurred and sets out 
                        the remedies and penalties that the Secretary 
                        determines are appropriate for the violation 
                        and the information forming the basis for such 
                        finding;
                    ``(B) a consent order which sets out the remedies 
                and penalties which the Secretary determines are 
                appropriate and to which the alleged violator has 
                agreed; or
                    ``(C) for a determination of whether or not the 
                violation has occurred and appropriate remedies and 
                penalties for the violation if the violation has 
                occurred, an order instituting a proceeding which 
                includes an oral hearing on the record before an 
                administrative law judge in accordance with section 554 
                of title 5, United States Code.
            ``(3) Parties to an alj proceeding.--If the Secretary 
        issues an order instituting a proceeding before an 
        administrative law judge under this subsection, both the 
        Department of Transportation and the person filing the 
        complaint shall be parties to the proceeding if they so elect, 
        and the administrative law judge may designate additional 
        parties to the proceeding.
            ``(4) Power of alj to compel production of documents.--An 
        administrative law judge to whom a complaint under this 
        subsection is assigned may compel the production of documents 
        and other information necessary to determine whether the 
        violation has or has not occurred.
            ``(5) Deadline for alj decision.--Not later than the 270th 
        day following the date on which the Secretary issues an order 
        instituting a proceeding before an administrative law judge 
        under this subsection, the judge shall issue an order--
                    ``(A) which finds that no violation has occurred 
                and dismisses the complaint; or
                    ``(B) which finds that a violation has occurred and 
                sets out the remedies and penalties that the 
                administrative law judge determines are appropriate for 
                such violation.
            ``(6) Deadline for final order.--Not later than the 90th 
        day following the date of issuance an order by an 
        administrative law judge under this subsection, the Secretary 
        shall issue a final order with respect to the complaint. If the 
        Secretary does not issue the final order by the last day of 
        such 90-day period, the order of the administrative law judge 
        shall be deemed to be a final order of the Secretary.
    ``(g) Treatment of Certain Reduced CRS Services.--If any computer 
reservation system service being provided to a participant in such 
system for a participant fee is reduced without a corresponding 
reduction in the participant fee, the participant fee shall be treated, 
for purposes of this section, as being increased by the vendor.
    ``(h) Regulations.--
            ``(1) General authority.--The Secretary may issue 
        regulations to carry out the objectives of this section and 
        such other regulations relating to computer reservation systems 
        as the Secretary determines appropriate. Such regulations shall 
        not be inconsistent with the provisions of this section.
            ``(2) Enforceability.--The enforceability of this section 
        shall not be affected by any delay or failure of the Secretary 
        to issue regulations to carry out the objectives of this 
        section.
    ``(i) Definitions.--For purposes of this section, the following 
definitions apply:
            ``(1) Computer reservations system.--The term `computer 
        reservations system' means--
                    ``(A) a computer system which is offered to 
                subscribers for use in the United States and contains 
                information on the schedules, fares, rules, or seat 
                availability of 2 or more separately identified air 
                carriers and provides subscribers with the ability to 
                make reservations and to issue tickets; and
                    ``(B) a computer system which was subject to the 
                provisions of part 255 of title 14 of the Code of 
                Federal Regulations (relating to computer reservation 
                systems) on June 1, 1991.
            ``(2) Computer system.--The term `computer system' means a 
        unit of one or more computers, and associated software, 
        peripherals, terminals, and means of information transfer, 
        capable of performing information processing and transfer 
        functions.
            ``(3) Internal reservation system.--The term `internal 
        reservation system' means a computer system which contains 
        information on airline schedules, fares, rules, or seat 
        availability and is used by an air carrier to respond to 
        inquiries made directly to the carrier by members of the public 
        concerning such information and to make reservations arising 
        from such inquiries.
            ``(4) Integrated display.--The term `integrated display' 
        means a computerized display of information which relates to 
        air carrier schedules, fares, rules, or availability and is 
        designed to include information pertaining to more than 1 
        separately identified air carrier. Such term excludes the 
        display of data from the internal reservations system of an 
        individual air carrier when provided in response to a request 
        by a ticket agent relating to a specific transaction.
            ``(5) Participant.--The term `participant', as used with 
        respect to a computer reservations system, means an air carrier 
        which has its flight schedules, fares, or seat availability 
        displayed through such system.
            ``(6) Participant fee.--The term `participant fee' means 
        any fee, charge, penalty, or thing of value contractually 
        required to be furnished to a vendor by a participant for 
        display of the flight schedules, fares, or seat availability of 
        the participant through the computer reservation system of the 
        vendor or for other computer reservation system services 
        provided to the participant.
            ``(7) Participant transaction capability.--The term 
        `participant transaction capability' means a service, product, 
        function, or facility with respect to any computer reservation 
        system which is provided by a vendor to any participant and 
        which is capable of benefiting the air transportation business 
        of such participant, including the quality, reliability, and 
        security of communications provided by the vendor linking such 
        vendor's computer reservation system to the computer system or 
        data bases of any participant, the loading into the system of 
        information on schedules, fares, rules, or seat availability, 
        the booking or assignment of seats, the issuance of tickets or 
        boarding passes, the retrieval of data from the system, or a 
        means of determining the timeliness with which a participant 
        will receive payment for air transportation sold through the 
        system.
            ``(8) Protocol.--The term `protocol' means a set of rules 
        or formats which govern the information transfer between and 
        among computer reservation systems, participants, and 
        subscribers.
            ``(9) Subscriber.--The term `subscriber' means a ticket 
        agent which uses a computer reservation system in the sale and 
        issuance of tickets for air transportation.
            ``(10) Subscriber contract.--The term `subscriber contract' 
        means an agreement, and any amendment thereto, between a ticket 
        agent and a vendor for the furnishing of computer reservations 
        services to such subscriber.
            ``(11) Subscriber transaction capability.--The term 
        `subscriber transaction capability' means any capability 
        offered through a computer reservation system to a subscriber 
        with respect to air transportation, including the capability of 
        a ticket agent through a computer reservations system to view 
        information on airline schedules, fares, rules, and seat 
        availability or to book space, assign seats, or issue tickets 
        or boarding passes for air transportation to be provided by air 
        carriers.
            ``(12) Vendor.--The term `vendor' means any person who 
        owns, controls, or operates a computer reservations system.''.
    (b) Conforming Amendment to Table of Contents.--The table of 
contents contained in the first section of the Federal Aviation Act of 
1958 is amended by adding at the end of the matter relating to title IV 
of such Act the following:

``Sec. 420. Computer reservations systems.
                              ``(a) Prohibitions against vendor 
                                        discrimination.
                              ``(b) Subscriber contract restraints.
                              ``(c) Prohibition of subscriber 
                                        modification of information.
                              ``(d) Reporting.
                              ``(e) Monitoring of participant fees.
                              ``(f) Special rules for certain nonfee 
                                        violations.
                              ``(g) Treatment of certain reduced CRS 
                                        services.
                              ``(h) Definitions.''.

SEC. 3. RULEMAKING ON RANDOM TESTING FOR PROHIBITED DRUGS.

    Not later than 1 year after the date of the enactment of this Act, 
the Secretary of Transportation shall complete a rulemaking proceeding 
and issue a final decision on whether there should be a reduction in 
the annualized rate of random testing for prohibited drugs now required 
by the Secretary for personnel engaged in aviation activities.

SEC. 4. CLARIFICATION OF PFC APPLICABILITY.

    Section 1113(e)(1) of the Federal Aviation Act of 1958 (49 U.S.C. 
App. 1513(e)(1)) is amended by adding at the end thereof the following 
new sentence: ``After the date of the enactment of this sentence, no 
public agency authority shall collect a fee authorized to be imposed 
under this subsection from a passenger enplaning at an airport if the 
passenger did not pay for the air transportation which resulted in such 
enplanement, including any case in which the passenger obtained the 
ticket for the air transportation with a frequent flier award coupon 
without monetary payment.''.

                                 <all>

HR 471 IH----2
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