I

103D CONGRESS

2D SESSION H. R. 5209

To establish a wholly owned Government corporation for the operation of

the air traffic control system, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 6, 1994

Mr. BARTON of Texas introduced the following bill; which was referred to the

Committee on Public Works and Transportation

A BILL

To establish a wholly owned Government corporation for

the operation of the air traffic control system, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Air Traffic Control

5 Service Improvement Act of 1994’’.
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1 TITLE I—UNITED STATES AIR

2 TRAFFIC SERVICE CORPORA3 TION

4 SEC. 101. ESTABLISHMENT OF CORPORATION.

5 (a) IN GENERAL.—There is established a wholly

6 owned Government corporation, to be known as the ‘‘Unit7 ed States Air Traffic Service Corporation’’, to operate the

8 air traffic control system of the United States after the

9 completion of transfers of air traffic control facilities and

10 equipment under section 201.

11 (b) LIMITATIONS.—The Corporation—

12 (1) except as provided in subsection (c), shall

13 not be an agency or establishment of the United

14 States Government;

15 (2) shall have its principal office in the District

16 of Columbia and is deemed to be a resident thereof;

17 (3) to the extent consistent with this Act, shall

18 be subject to the District of Columbia Business Cor19 poration Act (D.C. Code, Sec. 29–301 et seq.);

20 (4) shall be subject to safety regulatory over21 sight of the Federal Aviation Administration; and

22 (5) shall be self-sufficient through revenues

23 earned by charging fees to users of the air traffic

24 control system.

25 (c) WAR OR NATIONAL EMERGENCY.—
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1 (1) TRANSFER OF FUNCTIONS.—In the event of

2 a declared war or national emergency, the President

3 may by Executive order transfer any functions, per4 sonnel, property, records, funds, and other matters

5 relating to the Corporation to the Department of

6 Defense.

7 (2) DEVELOPMENT OF PLANS.—The Board, in

8 consultation with the Secretary of Defense, shall de9 velop plans for the effective discharge of the func10 tions of the Corporation in the event of a declared

11 war or national emergency.

12 SEC. 102. CORPORATION.

13 (a) CHIEF EXECUTIVE OFFICER.—Within 30 days

14 after the date of the enactment of this Act, the President

15 shall appoint an interim chief executive officer of the Cor16 poration to handle the preliminary development of the

17 Corporation before the appointment of the board of direc18 tors. The interim chief executive officer shall serve as a

19 member of the board until the board elects a permanent

20 chief executive officer. The chief executive officer (other

21 than the interim chief executive officer) shall be selected

22 by the board. The first executive officer to be selected shall

23 be selected not later than the 180th day following the date

24 of the first meeting of the board.
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1 (b) APPOINTMENT OF TRANSITION TEAM.—The in2 terim chief executive officer shall appoint a 6-member

3 transition team which shall be responsible for getting the

4 Corporation operational and shall serve until the Corpora5 tion is operational.

6 (c) FUNCTIONS OF TRANSITION TEAM.—The transi7 tion team appointed under this section shall—

8 (1) subject to approval by the President, draft

9 and file articles of incorporation for the Corporation,

10 draft the initial bylaws of the Corporation, and take

11 any other actions necessary for the establishment

12 and initial operation of the corporation; and

13 (2) after appointment of the board, the transi14 tion team shall work under the board until the Cor15 poration is operational.

16 (d) ARTICLES OF INCORPORATION.—The articles of

17 incorporation filed by the transition team in accordance

18 with subsection (c)—

19 (1) shall provide for cumulative voting under

20 section 27(d) of the District of Columbia Business

21 Corporation Act (D.C. Code, Sec. 29–327(d)); and

22 (2) may be amended, altered, changed, or repealed by a vote of not less than 2 23 ⁄3 of the members

24 of the board.
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1 (e) BUDGET.—The Corporation shall be subject to

2 provisions of the Government Corporation Control Act,

3 shall submit an annual business-type budget to Congress,

4 and shall have an annual financial audit performed by an

5 independent public accountant.

6 SEC. 103. BOARD OF DIRECTORS AND OFFICERS.

7 (a) BOARD OF DIRECTORS.—

8 (1) MEMBERSHIP.—The Corporation shall be

9 governed by a board of directors with 11 members.

10 The board shall be comprised of the chief executive

11 officer of the Corporation, the Secretary of Trans12 portation, and the Secretary of Defense (or their

13 designees), and 8 members appointed by the Presi14 dent with the advice and consent of the Senate.

15 (2) APPOINTED MEMBERS.—The President

16 shall appoint the initial 8 appointed members of the

17 board so that thereafter the appointed members will

18 serve on the board for 5-year staggered terms. The

19 8 members of the board appointed by the President

20 shall be as follows:

21 (A) 3 members from among persons who

22 represent the views of commercial aviation

23 interests.

24 (B) 1 member from among persons who

25 represent the views of airports.
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1 (C) 1 member from among persons who

2 represent the views of employees of the Federal

3 Aviation Administration and the Corporation

4 who belong to a union.

5 (D) 1 member from among persons who

6 represent the views of general business inter7 ests.

8 (E) 2 members from among persons who

9 represent the views of noncommercial aviation

10 interests.

11 (3) CHAIRPERSON.—The board shall elect one

12 of its members annually to serve as Chairperson.

13 (4) COMPENSATION AND EXPENSES.—Members

14 of the board may receive compensation in accordance

15 with rules established by the board.

16 (5) FUNCTIONS OF THE BOARD.—The board

17 shall meet at least quarterly and shall be responsible

18 for strategic planning and approving major financial

19 decisions of the Corporation, the annual budget, and

20 the level of user fees. The board shall provide for

21 public notice and comment on its fee proposals. The

22 board shall have authority over decisions about con23 tracting for air traffic control facilities, including

24 Level I towers and navigational facilities and equip25 ment.
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1 (6) FUNCTION OF THE SECRETARY OF TRANS2 PORTATION.—

3 (A) USER FEES.—In consultation with the

4 Attorney General, the Secretary of Transpor5 tation shall have the authority to disapprove the

6 kind and level of user fees established by the

7 board if such fees are not reasonable as deter8 mined by the Secretary under criteria estab9 lished by the Secretary. Not later than 180

10 days after the date of the enactment of this

11 Act, the Secretary shall issue regulations estab12 lishing such criteria. In determining if fees are

13 reasonable under this paragraph, the Secretary

14 shall consider if the fees will harm new entrant

15 air carriers, diminish competition among users

16 of the air traffic control system, or lead to ex17 cessive charges for air service.

18 (B) BORROWING.—The Secretary of

19 Transportation shall have the authority to dis20 approve borrowing by the Corporation under

21 the following circumstances:

22 (i) If the Corporation seeks to borrow

23 funds at levels which exceed a reasonable

24 prospect for repayment as determined by

25 the Secretary.
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1 (ii) If the Corporation seeks to borrow

2 funds for inappropriate, wasteful, or un3 reasonably speculative activities as deter4 mined by the Secretary.

5 (C) INTERMODAL ISSUES.—The Secretary

6 of Transportation shall have the authority to

7 address intermodal issues affecting the Cor8 poration.

9 (7) FUNCTION OF THE SECRETARY OF DE10 FENSE.—The Secretary of Defense shall address na11 tional security concerns as they relate to the Cor12 poration.

13 (b) SAFETY COMMITTEE.—

14 (1) APPOINTMENT.—The board shall establish

15 a 3-member permanent safety committee from

16 among persons who are citizens of the United States

17 to review the operations of the Corporation to ensure

18 the highest level of aviation safety. Persons ap19 pointed under this paragraph shall serve at the

20 pleasure of the board.

21 (2) COMPENSATION.—Individuals appointed

22 under paragraph (1) shall be compensated at rates

23 fixed by the board.

24 (c) CEO.—The Corporation shall have a chief execu25 tive officer who is elected by the board and who shall serve
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1 at the discretion of the board. The board shall fix the term

2 of employment and compensation of the chief executive

3 officer.

4 (d) RESTRICTION ON RECEIPT OF OTHER SALARY.—

5 An officer of the Corporation shall not receive any salary

6 from any source other than the Corporation during the

7 period of the officer’s employment by the Corporation.

8 SEC. 104. POWERS OF CORPORATION.

9 The Corporation may—

10 (1) plan, initiate, construct, own, manage, and

11 operate, by itself or in cooperation with other enti12 ties, an air traffic control system;

13 (2) furnish, for hire, air traffic control services

14 to air transportation common carriers, and other op15 erators of civil aircraft;

16 (3) establish reasonable nondiscriminatory fees

17 for the provision of air traffic control services;

18 (4) enter into contracts under which other enti19 ties may operate individual air traffic control facili20 ties on behalf of the Corporation;

21 (5) acquire, by construction, purchase, or gift,

22 physical facilities, equipment, and devices necessary

23 to the operations of the Corporation, including air

24 traffic control and associated equipment and facili25 ties; and
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1 (6) conduct or contract for the conduct of re2 search and development related to the operations of

3 the Corporation and establish technical specifications

4 of all elements of the air traffic control system.

5 SEC. 105. FOREIGN BUSINESS NEGOTIATIONS OF CORPORA6 TION.

7 (a) NEGOTIATIONS OF CORPORATION.—Whenever

8 the Corporation enters into negotiations with any foreign

9 entity with respect to facilities, operations, and services

10 authorized by this Act to be conducted by the Corpora11 tion—

12 (1) the Corporation shall notify the Secretary of

13 State regarding the initiation, conduct, and foreign

14 policy implications of such negotiations; and

15 (2) the Secretary of State shall advise the Cor16 poration of relevant foreign policy considerations

17 and, upon request of the Corporation, shall render

18 such assistance as may be appropriate.

19 (b) NEGOTIATIONS OF SECRETARY OF STATE.—The

20 Secretary of State shall consult with the Corporation with

21 respect to all negotiations conducted by the Secretary re22 garding matters which relate to air traffic control.

23 SEC. 106. SANCTIONS.

24 (a) PETITION FOR RELIEF.—Except as otherwise

25 prohibited by law—
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1 (1) if the Corporation engages in any activity,

2 or takes any action in furtherance of any policy,

3 which is inconsistent with the policy and purposes of

4 this Act; or

5 (2) if any other person—

6 (A) violates any provision of this Act;

7 (B) obstructs or interferes with any activ8 ity authorized by this Act;

9 (C) refuses, fails, or neglects to discharge

10 any duty or responsibility under this Act; or

11 (D) threatens any such violation, obstruc12 tion, interference, refusal, failure, or neglect;

13 the district court of the United States for any dis14 trict in which such Corporation or other person re15 sides or may be found shall have jurisdiction, upon

16 petition of the Attorney General of the United

17 States, to grant such equitable relief as may be nec18 essary or appropriate to prevent or terminate such

19 activity.

20 (b) PUNISHMENT, LIABILITY, OR SANCTION UNDER

21 OTHER PROVISIONS.—Nothing contained in this section

22 shall be considered to relieve any person of any liability,

23 punishment, or sanction under any other law.
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1 SEC. 107. REPORT.

2 (a) CORPORATION.—The Corporation shall transmit

3 to the President and Congress, annually and at such other

4 times as it considers appropriate, a comprehensive and de5 tailed report of its operations, activities, and accomplish6 ments under this Act.

7 (b) ADMINISTRATOR.—The Administrator shall

8 transmit to the Congress, annually and at such other

9 times as the Administrator considers appropriate, an eval10 uation of the capital structure of the Corporation so as

11 to assure the Congress that such structure is consistent

12 with the most efficient and economical operation of the

13 Corporation.

14 TITLE II—MISCELLANEOUS

15 SEC. 201. TRANSFER OF FACILITIES AND EQUIPMENT TO

16 CORPORATION.

17 (a) IN GENERAL.—Not later than 1 year after the

18 date the Senate approves the appointments of the Presi19 dent under section 102(a), the Secretary of Transpor20 tation shall take such steps as may be necessary—

21 (1) to transfer to the Corporation all right,

22 title, and interest of the United States in, and all

23 control of the United States over, all facilities and

24 equipment under the jurisdiction of the Administra25 tion by the operational date of the Corporation,

26 which are part of the air traffic control system in-
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1 cluding the air route traffic centers, terminal radar

2 control centers, VHF omnidirectional radio stations,

3 long-range and terminal radar systems, flight service

4 stations, and related facilities and equipment; and

5 (2) to transfer all right of the United States in

6 airport control towers, landing aids, and landing

7 slots to owners of the airport where such towers and

8 aids are located and to which such landing slots

9 relate.

10 (b) COMPENSATION.—In consideration for property

11 transferred by the United States pursuant to subsection

12 (a), the Corporation shall pay into the General Fund of

13 the Treasury such amount as the Corporation and the Sec14 retary of Transportation agree is reasonable and shall re15 linquish all rights of the Corporation to amounts in the

16 Airport and Airway Trust Fund.

17 SEC. 202. AIRPORT FEES.

18 (a) IN GENERAL.—Notwithstanding any other law,

19 on and after the date of the transfers carried out by the

20 Secretary of Transportation pursuant to section 201(a),

21 an airport may establish and charge fees for use of airport

22 facilities by, and provision of services to, air carriers and

23 air transportation passengers, including—
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1 (1) fees which air carriers must pay for landing

2 aircraft at or taking aircraft off from such facilities;

3 and

4 (2) fees which passengers must pay for depart5 ing from such facilities.

6 (b) CRITERIA.—Fees established under subsection

7 (a)—

8 (1) shall be in an amount equal to the cost to

9 the airport of providing the particular use or service

10 for which the fee is charged, plus a reasonable prof11 it; and

12 (2) may vary according to time of day and de13 mand for the facility or service.

14 SEC. 203. AIRPORT ACCESS.

15 (a) PROHIBITION.—An owner, operator, or other per16 son in charge of a public-use airport shall not deny access

17 to and use of the facilities of such airport by any person

18 operating an aircraft which is in compliance with all laws

19 relating to aviation safety if the person offers to pay all

20 fees which are usually charged for such use.

21 (b) PENALTY.—Any person who violates subsection

22 (a) shall be subject to a civil penalty under section 46301

23 of title 49, United States Code.
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1 SEC. 204. LIABILITY OF CORPORATION.

2 The Corporation shall be treated as a Federal agency

3 for purposes of chapter 171 of title 28, United States

4 Code; except that judgments, awards, settlements, inter5 est, and costs of claims resulting from air traffic control

6 system liability, shall not be paid from amounts available

7 under section 1304 of title 31, United States Code, but

8 shall be paid from amounts otherwise available to the Cor9 poration. The Corporation may secure its own insurance

10 for claims resulting from air traffic control system liabil11 ity. The Corporation shall be responsible for any legal or

12 administrative costs for air traffic control-related litiga13 tion. The Corporation may secure liability insurance for

14 the board of directors. The Corporation may sue or be

15 sued in its corporate name. The Secretary of Transpor16 tation shall identify potential environmental liabilities of

17 facilities before their transfer to the Corporation.

18 SEC. 205. DEFINITIONS.

19 As used in this Act—

20 (1) the terms ‘‘airport’’ and ‘‘public-use air21 port’’, respectively, have the meaning given such

22 terms by section 47102 of title 49, United States

23 Code;

24 (2) the terms ‘‘air carrier’’, ‘‘aircraft’’, ‘‘air

25 transportation’’, ‘‘civil aircraft’’, ‘‘citizen of the

26 United States’’, ‘‘person’’ and ‘‘United States’’, re-
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1 spectively, have the meaning given such terms by

2 section 40102 of title 49, United States Code;

3 (3) the term ‘‘board’’ means the board of direc4 tors of the Corporation appointed under section 103;

5 (4) the term ‘‘Corporation’’ means the corpora6 tion established by section 101 of this Act;

7 (5) the term ‘‘Administration’’ means the Fed8 eral Aviation Administration; and

9 (6) the term ‘‘Administrator’’ means the Ad10 ministrator of the Federal Aviation Administration.

11 SEC. 206. CONFORMING AMENDMENTS.

12 The Secretary of Transportation shall submit to Con13 gress not later than 1 year after the date of the enactment

14 of this Act such conforming amendments as the Secretary

15 of Transportation determines are necessary to fully imple16 ment this Act.

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