I

104TH CONGRESS

1ST SESSION H. R. 1441

To provide for the transfer of operating responsibility for air traffic services

currently provided by the Federal Aviation Administration on behalf

of the United States to a separate corporate entity, in order to provide

for more efficient operation and development of these transportation

services and related assets, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 6, 1995

Mr. MINETA (by request) 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 the Budget, 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

A BILL

To provide for the transfer of operating responsibility for

air traffic services currently provided by the Federal

Aviation Administration on behalf of the United States

to a separate corporate entity, in order to provide for

more efficient operation and development of these transportation services and related assets, 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,
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1 SECTION 1. TITLE; TABLE OF CONTENTS.

2 (a) This Act may be cited as the ‘‘United States Air

3 Traffic Service Corporation Act’’.

4 (b) TABLE OF CONTENTS.—

TITLE I—GENERAL

Sec.

101. Findings and purpose.

102. Definitions.

TITLE II—TRANSFER OF AIR TRAFFIC SERVICE FROM THE

FEDERAL AVIATION ADMINISTRATION

201. Establishment of the Corporation.

202. Status and applicable laws.

203. Board of directors.

204. Committees of the board; independent auditor.

205. Officers and their responsibilities.

206. General authority.

207. Authority over aircraft movement for the United States; related authority.

208. Authority to incur indebtedness.

209. Fees and other charges for services.

210. Limitation on State and local taxation.

211. Preemption of authority over air traffic services.

212. Suits by and against the Corporation.

213. Acquiring interest in property by eminent domain.

214. Relationships with Federal agencies.

TITLE III—PERMANENT FEDERAL REQUIREMENTS

301. Corporation subject to direct Federal control in time of war or national

emergency.

302. Collective bargaining.

303. International agreements and activities.

TITLE IV—AMENDMENTS TO FEDERAL AVIATION LAWS

401. Access to the air traffic system.

402. Definitions.

403. Airspace control and air traffic rules.

404. Emergency powers.

405. Presidential transfers in time of war.

406. Preemption of prices, routes, and service regulations.

407. Airway capital investment plan; research and development planning.

408. Aviation facilities.

409. Regulation of the United States Air Traffic Service Corporation.

TITLE V—OTHER APPLICABLE STATUTES

501. Employee management and exemptions from title 5, United States Code.

502. Applicability of Government Corporation Control Act.
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503. Extension and amendment of aviation-related taxes and Trust Fund

spending authority.

504. Transfers from the Airport and Airway Trust Fund.

505. Exclusion of Corporation from budget and budget enforcement.

506. Discretionary spending limits.

TITLE VI—TRANSITION PROVISIONS

601. Transfer of federal personnel to the Corporation.

602. Payments to the United States, and reimbursements.

603. Transfer of facilities to the Corporation.

604. Savings provisions.

605. Administrative and budgetary transition; ethics standards.

606. Reference.

607. Separability.

608. Effective date.

1 TITLE I—GENERAL

2 SEC. 101. FINDINGS AND PURPOSE.

3 (a) FINDINGS.—(1) The United States air traffic

4 control system, spanning civil and military sectors and the

5 busiest in the world, has set the standard since its incep6 tion for the utmost in aviation safety and efficiency of

7 traffic movements.

8 (2) This Federal air traffic control system is integral

9 to the United States aviation industry, a leading exporter

10 and employer in the national economy, and contributes di11 rectly to this vital national resource and its links to an

12 increasingly global economy.

13 (3) It is the continuing role of Congress and the Ex14 ecutive Branch to evaluate each Federal Government ac15 tivity to determine whether its services continue to be

16 needed and, if so, whether these services can be best pro17 vided by a Federal agency.
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1 (4) The provision of more than 500,000 air traffic

2 operations and the use of over 28,000 air navigation facili3 ties in the National Airspace System daily by the Federal

4 Aviation Administration (FAA), operating 24 hours a day,

5 365 days a year, and the reliance of the United States

6 aviation industry on these services, constitutes a unique

7 Federal operational role, one that is increasingly burdened

8 by traditional governmental management processes.

9 (5) Air traffic control is increasingly reliant on high10 quality, well motivated staff and automated, electronic

11 tracking and communication systems that require state12 of-the-art computer equipment and applications, tech13 nology that advances extremely rapidly and has left cur14 rent air traffic control operations behind.

15 (6) Current government-wide requirements for pro16 curement, personnel, financial, and other fundamental ele17 ments of management are being updated but, despite the

18 general changes achieved to date as a result of the Na19 tional Performance Review, are not suited to the type of

20 operating enterprise needed to bring the United States air

21 traffic control system into the 21st century.

22 (7) Effective financing of air traffic modernization

23 can be improved by a transition from the current Federal,

24 excise-based user fees to a system of fees that more closely

25 reflect the costs of providing air traffic control services,
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1 but changes of this nature are complicated by the ongoing,

2 successful effort to reduce Federal budget deficits, an ob3 jective which should not be undercut.

4 (8) The FAA and the Department of Defense share

5 a unique relationship as users and suppliers of air traffic

6 services, and it is vital to safe and efficient air traffic con7 trol and defense readiness that this relationship continue

8 to evolve under any new operational arrangement for civil9 ian air traffic service.

10 (9) More user input, simpler procurement methods,

11 more flexible personnel policies and incentives with im12 proved labor-management partnerships, greater manage13 ment longevity, and access to capital markets are nec14 essary and achievable to maintain the FAA’s enviable

15 record of efficiency in air traffic management, but not

16 within the confines of a traditional Federal Government

17 agency.

18 (10) The clear success of a much smaller, but similar,

19 transfer of a long-time FAA activity (operation of Na20 tional and Dulles Airports) to a non-Federal operator in

21 1987 demonstrates the efficacy of creating a self-govern22 ing, self-financing entity to manage inherently operational

23 activities.

24 (11) Transfer legislation can relieve the Federal Gov25 ernment of operating roles and include the kind of safety,
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1 security, national defense, international, personnel and

2 other mandates needed to guarantee that the successor en3 tity will not compromise any of the benefits that have been

4 produced by the FAA throughout its long and successful

5 history of air traffic control operations.

6 (b) PURPOSE.—It is declared to be the purpose of

7 Congress in this Act, pursuant to its authority under the

8 Constitution to regulate commerce among the several

9 states, to transfer operating responsibility for air traffic

10 services currently provided by the Federal Aviation Ad11 ministration on behalf of the United States to a separate

12 corporate entity, to provide for more efficient operation

13 and development of these services and related assets, with14 out any reduction in accountability for aviation safety, se15 curity, national defense, airport development, or other nec16 essary aviation functions currently entrusted to the Fed17 eral Aviation Administration.

18 SEC. 102. DEFINITIONS.

19 (a) In this Act:

20 (1) ‘‘Administrator’’ means the Administrator

21 of the Federal Aviation Administration.

22 (2) ‘‘Air traffic control system’’ means the com23 bination of elements used to safely and efficiently

24 monitor, direct, control, and guide aircraft in the
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1 United States and United States-assigned airspace,

2 including—

3 (A) frequency licenses and physical, real,

4 personal, and intellectual property assets mak5 ing up facilities and systems employed to de6 tect, track, and guide aircraft movement;

7 (B) laws, regulations, agreements, and li8 censes;

9 (C) publishes procedures that explain re10 quired actions, activities, and techniques used

11 to assure adequate aircraft separation; and

12 (D) trained personnel with specific tech13 nical capabilities to satisfy the operational, en14 gineering, management, and planning require15 ments for air traffic control.

16 (3) ‘‘Corporation’’ means the United States Air

17 Traffic Service Corporation created under the au18 thority of this Act, unless otherwise specified.

19 (4) ‘‘Date of transfer’’ means the date the

20 United States Air Traffic Service Corporation suc21 ceeds to functions of the Federal Aviation Adminis22 tration pursuant to this Act, which shall be October

23 1, 1996, or a later date established by the Adminis24 trator as the date that air traffic control responsibil25 ities may be safely transferred to the Corporation.
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1 (5) ‘‘Secretary’’ means the Secretary of Trans2 portation.

3 (b) A term used in this Act that is not defined, but

4 which is defined in subtitle VII of title 49, United States

5 Code, has the meaning set forth in that subtitle.

6 TITLE II—TRANSFER OF AIR TRAFFIC

7 SERVICE FROM THE FEDERAL AVIA8 TION ADMINISTRATION

9 SEC. 201. ESTABLISHMENT OF THE CORPORATION.

10 There is hereby created a body corporate to be known

11 as the United States Air Traffic Service Corporation

12 (hereinafter referred to in this Act as the Corporation).

13 SEC. 202. STATUS AND APPLICABLE LAWS.

14 (a) STATUS.—The Corporation—

15 (1) is a wholly owned Government corporation

16 of the United States subject to Chapter 91 of title

17 31, United States Code (Government Corporations),

18 as provided in this Act, and may not sell equity in19 terests in the Corporation to the public;

20 (2) is subject to the regulatory authority of the

21 Federal Aviation Administration and the safety in22 vestigatory authority of the National Transportation

23 Safety Board (NTSB);

24 (3) shall operate the Federal air traffic control

25 system as a business enterprise on a safe and effi-
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1 cient, self-supporting, and not-for-profit basis with2 out Federal Government appropriations or other

3 sources of Federal financing other than transfers

4 specified in this Act;

5 (4) shall not be subject to apportionment pursu6 ant to section 1513(b) of title 31, United States

7 Code; and

8 (5) may establish offices in places necessary or

9 appropriate in the conduct of its business.

10 (b) LIMITED APPLICATION OF TITLE 5 U.S.C. AND

11 PERSONNEL REQUIREMENTS.—Title 5, United States

12 Code, applies to the Corporation and its employees and

13 activities only to the extent set forth in sections 501 and

14 601 of this Act. For purposes of section 5 of Public Law

15 103–226 (March 30, 1994) (the Federal Workforce Re16 structuring Act of 1994), the Corporation does not qualify

17 as an Executive agency (as defined by section 105 of title

18 5, United States Code.) The Corporation shall fulfill the

19 requirements of title VI of this Act, and shall establish

20 appropriate personnel policies to manage its employees

21 efficiently.

22 (c) NONAPPLICATION OF CERTAIN FEDERAL ACQUI23 SITION AND RELATED REQUIREMENTS.—The Corporation

24 does not qualify as a department, agency, establishment,

25 or instrumentality of the United States Government for
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1 purposes of Federal laws, regulations, or other require2 ments concerning acquisition of supplies and services, and

3 the acquisition, use, and disposal of real and personal

4 property, including the Federal Property and Administra5 tive Services Act (40 U.S.C. 471, et seq.), except that the

6 Corporation does qualify as a department, agency, estab7 lishment, or instrumentality of the United States Govern8 ment for the purposes of the Davis-Bacon Act (40 U.S.C.

9 276a–276–7), the McNamara-O’Hara Service Contract

10 Act (41 U.S.C. 351, et seq.), and the Contract Work

11 Hours and Safety Standards Act (40 U.S.C. 327, et seq.),

12 and civil rights laws and regulations that are applicable

13 to Federal contractors and subcontractors.

14 (d) FEDERAL ENVIRONMENTAL REQUIREMENTS.—

15 (1) The Corporation is subject to the requirements of the

16 National Environmental Policy Act, as amended (42

17 U.S.C. 4321, et seq.), and the actions of the Corporation

18 shall be Federal actions under the Act.

19 (2) The Corporation shall be an agency of the United

20 States Government for purposes of compliance with Fed21 eral law relating to the environment, including laws relat22 ing to clean air, clean water hazardous waste, park lands,

23 wilderness areas, wildlife, and historic properties.

24 (3) The Corporation shall be subject to a State law

25 or order relating to the environment only to the extent
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1 that a Federal agency should be subject to that law or

2 order as a result of an express waiver of sovereign immu3 nity by statute or executive order.

4 (e) TRANSFER OF AIR TRAFFIC SYSTEM.—The Fed5 eral Aviation Administration shall transfer its control over

6 the air traffic system in the United States to the Corpora7 tion on the date of transfer, in a systematic and orderly

8 manner that assures complete continuity in air traffic con9 trol operations.

10 (f) CONTINUED APPLICABILITY OF THE ACT.—The

11 requirements of this Act shall continue to apply to the

12 Corporation throughout its existence. No entity other than

13 the United States Air Traffic Service Corporation, De14 partment of Defense units providing air traffic services,

15 or entities to which the Corporation has delegated air traf16 fic service responsibilities or contracted with for the provi17 sion of air traffic control services, is authorized or per18 mitted to perform air traffic control services on behalf of

19 the United States.

20 SEC. 203. BOARD OF DIRECTORS.

21 (a) COMPOSITION AND TERMS.—(1) The powers of

22 the Corporation are vested in a Board of Directors that

23 governs the Corporation and is composed of the following

24 11 Directors, each of whom shall be a citizen of the United

25 States, and shall not be an employee of the Corporation
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1 (the Corporation’s employee bargaining unit representa2 tive excepted):

3 (A) The Secretary of Transportation, or the

4 Deputy Secretary of Transportation as designee of

5 the Secretary;

6 (B) The Secretary of Defense, or the Sec7 retary’s designee.

8 (C) Nine individuals appointed by the President

9 of the United States, by and with the advice and

10 consent of the Senate, who have knowledge of sound

11 corporate business practice and who, by virtue of

12 background and expertise, are equipped to represent

13 the interests of—

14 (i) air traffic system commercial users sub15 ject to the imposition of user fees in the case

16 of four appointments, but who are not employed

17 by an airline;

18 (ii) non-commercial aviation;

19 (iii) employee bargaining units, as signified

20 by being a Corporation employee bargaining

21 unit representative;

22 (iv) airports subject to air traffic service

23 requirements; and

24 (v) sound corporate business practice in

25 the case of two appointments.
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1 (2) The Chairman of the Board is chosen from

2 among the nine members specified under subparagraph

3 (a)(1)(C) of this section, by majority vote of the members

4 and shall serve until replaced by majority vote of the mem5 bers.

6 (3) Members other than the Secretaries shall be ap7 pointed to the Board for a term of 5 years except that,

8 of the members first appointed, two shall be appointed by

9 the President for 2-year terms, two shall be appointed by

10 the President for 3-year terms, and two shall be appointed

11 by the President for 4-year terms. A member may serve

12 after the expiration of that member’s term until a succes13 sor has taken office. The Secretaries shall serve terms co14 incident with their appointments to their positions.

15 (b) PAY AND EXPENSES.—Each Director not em16 ployed by the United States Government is entitled to

17 compensation, which may be comparable to other cor18 porate boards when performing Board duties and powers.

19 Each Director is entitled to reimbursement for necessary

20 travel, reasonable secretarial support, and subsistence ex21 penses incurred in attending board meetings.

22 (c) VACANCIES.—A vacancy on the Board is filled in

23 the same way as the original selection. A member of the

24 Board may be reappointed to a position, subject to the
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1 advice and consent of the Senate, but may serve no more

2 than two consecutive terms.

3 (d) REMOVAL OF BOARD MEMBERS.—A member of

4 the Board serves at the pleasure of the President.

5 (e) BOARD ACTION REQUIRED.—The Board shall

6 meet at the call of the Chairman and should meet, at a

7 minimum, on a quarterly basis. The Board shall be re8 sponsible for actions of the Corporation, including the fol9 lowing matters:

10 (1) Adoption of an annual budget and approval

11 of the Corporation’s strategic plan.

12 (2) Authorization for issuance of indebtedness.

13 (3) Establishment and modification of user fees

14 and other charges to the public.

15 (4) Appointment of the Chief Executive Officer.

16 (f) BYLAWS.—The Board may adopt and amend by17 laws governing the operation of the Corporation. The by18 laws shall be consistent with this Act.

19 (g) REVIEW OF BORROWING.—The issuance of in20 debtedness by the Corporation may be disapproved by the

21 Secretary of Transportation if the Secretary determines

22 that the total revenues of the Corporation are insufficient

23 to satisfy obligations incurred by the Corporation, includ24 ing those that are held by the United States. Within 30

25 days of the receipt of a proposal for the issuance of indebt-
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1 edness, the Secretary shall notify the Chairman of the

2 Board of any disapproval, with justification for a dis3 approval.

4 SEC. 204. COMMITTEES OF THE BOARD; INDEPENDENT

5 AUDITOR.

6 (a) CREATION OF COMMITTEES OF THE BOARD.—

7 The Board of Directors of the Corporation shall create

8 and maintain a Safety Committee and any other commit9 tees of the Board that are needed or desirable to carry

10 out Board responsibilities effectively.

11 (b) SAFETY COMMITTEE OF THE BOARD.—(1) The

12 Safety Committee shall include the Secretaries of Trans13 portation and Defense, or designees.

14 (2) It shall be the continuing duty of the Safety Com15 mittee to supervise the aviation safety activities of the

16 Corporation, and in particular actions taken in response

17 to safety agencies, including the Federal Aviation Admin18 istration and the National Transportation Safety Board.

19 (c) INDEPENDENT AUDIT AND INVESTIGATION

20 FUNCTION.—To fulfill the responsibilities of the Corpora21 tion as a Federal entity, as set forth in section 8G(h)(2)

22 of the Inspector General Act (Appendix 3 of title 5, United

23 States Code), the Chairman of the Board shall appoint

24 a qualified individual to establish and administer an inde25 pendent audit and investigatory organization that reports
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1 directly to the Board of Directors of the Corporation. The

2 organization shall conduct and supervise audits and inves3 tigations of the economy, efficiency, and effectiveness of

4 the Corporation’s programs and operations, act to detect

5 and prevent fraud, waste, and abuse in such programs and

6 operations, and make any necessary and desirable rec7 ommendations for corrective actions to the Board.

8 SEC. 205. OFFICERS AND THEIR RESPONSIBILITIES.

9 (a) APPOINTMENT AND TERMS.—(1) The Corpora10 tion has a Chief Executive Officer, who is selected and

11 appointed by the Board of Directors to manage the Cor12 poration. However, until the Board appointed pursuant to

13 section 203 of this Act makes an appointment, an individ14 ual with the qualifications specified by this subsection may

15 be appointed, by the President, within 30 days of the en16 actment of this Act, to exercise all of the authority of the

17 Corporation set forth in this Act in order to prepare the

18 Corporation to accept the transfer of air traffic control

19 responsibilities by the date of transfer. The Chief Execu20 tive Officer is subject to the policy guidance of the Board,

21 reports to the Board, and serves at the pleasure of the

22 Board. The Board may revoke actions of the Chief Execu23 tive Officer.
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1 (2) The Chief Executive Officer shall be a persons

2 who, by reason of professional background and experience,

3 is especially qualified to manage the Corporation.

4 (3) The Chief Executive Officer shall—

5 (A) be responsible for the management and di6 rection of the Corporation, and for the exercise of all

7 powers and responsibilities of the Corporation;

8 (B) establish Corporation offices and define

9 their responsibilities and duties, with full authority

10 to reorganize the Corporation as required;

11 (C) before taking office, take an oath to bear

12 full faith and allegiance to the United States and

13 faithfully discharge the duties of the office; and

14 (D) designate an officer of the Corporation who

15 is vested with the authority to act in the capacity of

16 the Chief Executive Officer if the Chief Executive

17 Officer is absent or incapacitated.

18 (4) The Chief Executive Officer shall appoint the

19 other officers and employees of the Corporation. The Chief

20 Executive Officer may delegate to other officers or employ21 ees any of the functions of the Corporation. An officer,

22 employee, or agency of the Corporation is subject only to

23 the supervision of the Chief Executive Officer or des24 ignated subordinates of the Chief Executive Officer.
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1 (b) PAY.—The Chief Executive Officer has exclusive

2 authority, subject to sections 302 and 501 of this Act, to

3 fix the pay of the officers and other employees of the Cor4 poration, except that the Board of Directors shall fix the

5 pay of the Chief Executive Officer. However, the President

6 shall fix the pay, at a rate not to exceed level III of the

7 Executive Schedule, of the Chief Executive Officer until

8 the Board is appointed.

9 SEC. 206. GENERAL AUTHORITY.

10 Except as otherwise specifically provided in this Act,

11 the Corporation—

12 (1) shall have perpetual succession in its cor13 porate name unless dissolved by law;

14 (2) may adopt and use a corporate seal, which

15 shall be judicially noticed;

16 (3) may acquire, purchase, lease, and hold, pos17 sess, use, and improve real and personal property,

18 including housing units, patents, trademarks, copy19 rights, and proprietary data, it considers necessary

20 in the transaction of its business, and sell, lease,

21 grant, transfer, and dispose of the real and personal

22 property it considers necessary to effectuate the pur23 pose of the Corporation;

24 (4) may indemnify members of the board of di25 rectors, the Chief Executive Officer, other officers,
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1 attorneys, agents, and employees of the Corporation

2 for liabilities and expenses incurred in connection

3 with their corporate activities;

4 (5) may adopt, amend, and repeal Corporation

5 bylaws, orders and regulations governing the manner

6 in which its business may be conducted and the

7 power granted to it by law may be exercised;

8 (6) may enter into the contracts, agreements,

9 or other arrangements, including financial assist10 ance, it considers appropriate to conduct its business

11 with any entity, on the terms it considers appro12 priate, and may sue and be sued in its corporate

13 name for purposes of this paragraph;

14 (7) notwithstanding any other law, without

15 need for appropriation and without fiscal year limi16 tation, may retain and use its revenues and receipts

17 from whatever source, including obligations issued

18 and disposition of real and personal property, and

19 its other assets to carry out its purposes, including

20 research and development and capital investment;

21 (8) shall have the priority of the United States

22 with respect to the payment of debts out of bank23 rupt, insolvent, an decedents’ estates;

24 (9) may accept gifts or donations of services

25 and property, including real, personal, mixed, tan-
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1 gible, or intangible property, except that no gift may

2 be accepted that attaches conditions inconsistent

3 with applicable laws and regulations or is condi4 tioned upon or will require the expenditure of appro5 priated funds that are not available to the Corpora6 tion; provided, that the Corporation shall establish

7 written guidelines setting forth the criteria to be

8 used in determining whether the acceptance of gifts

9 or donations authorized in this subsection would re10 flect unfavorably upon the ability of the Corporation

11 or any employee to carry out its responsibilities or

12 official duties in a fair and objective manner, or

13 would compromise the integrity or the appearance of

14 the integrity of its programs or any official involved

15 in those programs;

16 (10) may perform such investigations, including

17 aircraft accident investigations, as it shall deem nec18 essary to carry out the provisions of and exercise

19 and perform its powers and duties under this Act,

20 and shall be included as a party in all NTSB acci21 dent investigations that involve activities of the Cor22 poration;

23 (11) may establish training facilities and con24 duct such training as it deems necessary;
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1 (12) may use frequency assignments or licenses

2 (obtained from the National Telecommunications

3 and Information Administration by the Federal

4 Aviation Administration) it considers necessary to

5 effectuate the purpose of the Corporation; and

6 (13) shall have such other powers as may be in7 cidental, necessary or appropriate to carry out the

8 purposes this Act and of the Corporation.

9 SEC. 207. AUTHORITY OVER MOVEMENT OF AIRCRAFT FOR

10 THE UNITED STATES; RELATED AUTHORITY.

11 (a) RESPONSIBILITY FOR MOVEMENT OF AIRCRAFT

12 IN UNITED STATES AIRSPACE.—(1) As successor to the

13 Federal Aviation Administration pursuant to this Act, and

14 subject to the requirements of section 44724 of title 49,

15 United States Code (as enacted by section 409 of this Act

16 (Regulation of the United States Air Traffic Control Serv17 ice Corporation)), and retention by the United States of

18 exclusive sovereignty over airspace of the United States,

19 the Corporation shall exercise day-to-day operational su20 pervision and control over the movement of aircraft on be21 half of the United States that was provided by the Federal

22 Aviation Administration prior to the date of transfer.

23 (2) The Corporation shall develop and implement air24 space orders, procedures, and other directives with respect

25 to the use of navigable airspace. This authority includes
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1 the ability to issue routine airspace actions and airspace

2 assignments and designations in accordance with rules

3 prescribed for the Corporation by the Administrator. Not4 withstanding the Corporation’s safety functions with re5 gard to any orders or directives it may prescribe, respon6 sibility for prescribing safety standards and the policies

7 encompassing the safety structure of the National Air8 space system remains with the Administrator.

9 (3) The Corporation shall develop and implement air

10 traffic orders, procedures, and other directives governing

11 the flight of aircraft, for the navigation, protection, and

12 identification of aircraft, for the protection of persons and

13 property on the ground, and for the efficient utilization

14 of the navigable airspace, including procedures as to safe

15 altitudes of flight and the prevention of collision, between

16 aircraft and land or water vehicles, and between aircraft

17 and airborne objects.

18 (4) The Corporation is authorized to—

19 (A) acquire, establish, improve, dispose of, and

20 eliminate air navigation facilities wherever necessary;

21 (B) operate and maintain such air-navigation

22 facilities; and

23 (C) provide necessary facilities and personnel

24 for the management and protection of air traffic.

25 The Corporation shall update and arrange for publi-
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1 cation of clearly defined routes for navigation

2 through airspace where the Corporation determines

3 that publication of such routes would promote safety

4 in air navigation.

5 (5) To encourage and allow maximum use of the navi6 gable airspace by civil aircraft consistent with national se7 curity, and subject to appropriate military authority exer8 cised pursuant to section 40106 of title 49, United States

9 Code, the Corporation shall recommend for issuance by

10 the Administrator, in consultation with the Secretary of

11 Defense, regulations that establish areas in the airspace

12 the Administrator decides are necessary in the interest of

13 national defense, and to restrict or prohibit flight of civil

14 aircraft that the Corporation cannot identify, locate, and

15 control with available facilities in those areas.

16 (6) The Corporation shall recommend to the Adminis17 trator long-range plans and policy for the orderly develop18 ment and use of the navigable airspace that will best meet

19 the needs of, and serve the interests of, civil aeronautics

20 and the national defense, except for needs of the armed

21 forces that are peculiar to warfare and primarily of mili22 tary concern. In making recommendations, the Corpora23 tion shall emphasize—

24 (A) providing the highest degree of safety and

25 efficiency in air commerce;
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1 (B) meeting the forecasted needs of civil aero2 nautics; and

3 (C) meeting the requirements that the Sec4 retary of Defense establishes for the support of the

5 national defense.

6 (7) To implement the authority in this section, the

7 Corporation may undertake reasonable actions, including

8 action to—

9 (A) develop, alter, test, and evaluate systems,

10 procedures, facilities, and devices, and define their

11 performance characteristics, to meet the needs for

12 safe and efficient navigation and traffic control of

13 civil and military aviation, except for needs of the

14 armed forces that are peculiar to warfare and pri15 marily of military concern; and

16 (B) select systems, procedures, facilities, and

17 devices that will best serve those needs and promote

18 maximum coordination of air traffic control, air de19 fense, and range surveillance systems except for

20 needs of the armed forces that are peculiar to war21 fare and primarily of military concern.

22 (8) The Corporation shall establish procedures, be23 fore transition, to notify the Administrator and the public

24 when major changes in serve are contemplated.
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1 (9) In any case where negotiations with other coun2 tries over airspace control and air navigation may be nec3 essary or desirable, the Corporation shall be subject to the

4 requirements of section 303 of this Act and shall act

5 through the Federal Aviation Administration, the Depart6 ment of Transportation, and the Department of State and,

7 to the degree possible, provide the Administrator with as

8 much notice as possible of requirements in this area.

9 (10) The Corporation shall refer for action by the

10 Federal Aviation Administration, pursuant to chapter 447

11 and chapters 461 through 465 of title 49, United States

12 Code, complaints against any person for violations of

13 rules, regulations, orders, and other directives issued by

14 the Corporation or by the Administrator. The Adminis15 trator shall take appropriate action promptly on com16 plaints forwarded by the Corporation, consistent with pro17 cedural requirements of the Administration for enforce18 ment of its rules, regulations, orders, and other directives.

19 The Corporation shall provide necessary assistance in any

20 enforcement action taken under this subsection. Nothing

21 in this paragraph limits or changes the current power of

22 the Administrator to take action under his or her own au23 thority.

24 (b) AVIATION RESEARCH AND DEVELOPMENT.—The

25 Corporation is authorized to undertake research and devel-
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1 opment projects as it deems necessary to carry out the

2 purposes of this Act.

3 (c) METEOROLOGICAL SERVICES; AERONAUTICAL

4 CHARTS.—The Corporation shall be responsible for the

5 dissemination of available aviation-related meteorological

6 information to its air traffic services users in accordance

7 with published air traffic procedures.

8 (d) NON-FEDERAL FACILITIES.—The Corporation is

9 authorized to operate, contract for, maintain, and certify

10 non-federal systems and equipment used to support air

11 traffic control and air navigation.

12 SEC. 208. AUTHORITY TO INCUR INDEBTEDNESS.

13 (a) GENERAL AUTHORITY.—Subject to the authority

14 of the Secretary of Transportation pursuant to section

15 203(g) of this Act to disapprove the issuance of indebted16 ness by the Corporation, the Corporation may issue such

17 notes or other obligations as the Corporation determines

18 necessary to carry out the purposes of this subtitle, either

19 to the Secretary of the Treasury pursuant to subsection

20 (b) of this section or to private entities pursuant to sub21 section (c) of this section. The aggregate amount of any

22 such obligations outstanding at any one time shall not ex23 ceed $15,000,000,000.

24 (b) TREASURY BORROWING.—The Corporation may

25 issue to the Secretary of the Treasury notes or other obli-
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1 gations in such forms and denominations, bearing such

2 maturities, and subject to such terms and conditions, as

3 may be prescribed by the Secretary of the Treasury. Such

4 notes shall bear interest at a rate determined by the Sec5 retary of the Treasury, taking into consideration current

6 market yields on outstanding marketable obligations of the

7 United States of comparable maturities. The Secretary of

8 the Treasury shall purchase any notes or other obligations

9 issued hereunder, and for that purpose the Secretary is

10 authorized to use as a public debt transaction the proceeds

11 from the sale of any securities issued under chapter 31

12 of title 31, United States Code, and the purposes for which

13 securities may be issued under that Act are extended to

14 include any purchase of such notes or obligations acquired

15 by him or her under this subsection. The Secretary of the

16 Treasury may at any time sell any notes or other obliga17 tions acquired by him or her under this subsection.

18 (c) MARKET BORROWING.—(1) If the Corporation

19 demonstrates to the satisfaction of the Secretary of Treas20 ury that borrowing from the private markets would be

21 cost-effective, the Corporation is authorized to issue notes

22 and other obligations to private entities consistent with

23 this subsection.

24 (2) The Corporation may pledge its assets and pledge

25 and use its revenues and receipts for the payment of the
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1 principal or interest on its obligations, for the purchase

2 or redemption thereof, and for other purposes incidental

3 thereto, including creation of reserve, sinking, and other

4 funds which may be similarly pledged and used, to such

5 extent and in such manner as the board deems necessary

6 or desirable. The Corporation is authorized to enter into

7 binding covenants with the holders of such obligations,

8 and with the trustee, if any, under any agreement entered

9 into in accordance with the issuance thereof with respect

10 to the establishment of reserve, sinking, and other funds,

11 application and use of revenues and receipts of the Cor12 poration, stipulations concerning the subsequent issuance

13 of obligations or the execution of leases or lease/purchases

14 relating to properties of the Corporation and such other

15 matters as the board deems necessary or desirable to en16 hance the marketability of such obligations. However, the

17 Corporation may not enter into covenants that have the

18 effect of conflicting with any requirement of this Act, as

19 determined by the Secretary of Transportation in approv20 ing the issuance of indebtedness pursuant to subsection

21 203(g) of this Act.

22 (3) Obligations issued by the Corporation under this

23 subsection shall be subject to such terms and conditions

24 as the board determines.
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1 (4) Obligations issued by the Corporation under this

2 subsection shall—

3 (A) be negotiable or nonnegotiable and bearer

4 or registered instruments, as specified therein and in

5 any indenture or convenant relating thereto;

6 (B) contain a recital that they are issued under

7 this section, and such recital shall be conclusive evi8 dence of the regularity of the issuance of sale of

9 such obligations and of their validity; and

10 (C) be treated as an obligation or security of

11 the United States for purposes of the counterfeiting

12 and forgery provisions of title 18, United States

13 Code.

14 (b) TAXATION OF CORPORATION INDEBTEDNESS.—

15 The indebtedness of the Corporation, in whatever form,

16 shall be exempt both as to principal and interest from all

17 taxation now or hereafter imposed by a State or local tax18 ing authority except estate, inheritance, and gift taxes.

19 SEC. 209. FEES AND OTHER CHARGES FOR SERVICES.

20 (a) FEES AND OTHER CHARGES FOR SERVICES.—

21 The Corporation is authorized to and shall impose fees

22 or other charges for service that are consistent with the

23 requirements of this section. The imposition and subse24 quent modification of fees or other charges shall be carried

25 out by means that provide the opportunity for public com-
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1 ment in writing, and for access by the public to all com2 ments filed in a particular action on fees or other charges.

3 Fees and charges by the Corporation may not become ef4 fective prior to January 1, 1997.

5 (b) POLICY FOR IMPOSITION OF FEES, CHARGES AND

6 PRACTICES.—The fees, charges and related practices of

7 the Corporation shall conform to the following policies:

8 (1) Fees, charges and practices shall not unrea9 sonably restrain competition by, for example, being

10 unfair, unreasonable, unjustly discriminatory among

11 current or potential users of the air traffic system,

12 or unreasonably disadvantaging new entrants.

13 (2) Fees and charges shall be consistent with

14 all obligations of the United States Government

15 under an international agreement.

16 (3) Fees and charges shall be maintained at a

17 level sufficient to assure the satisfaction of all obli18 gations incurred by the Corporation, including those

19 that are held by the United States.

20 (c) PAYMENT TO CORPORATION.—Fees and other

21 charges for services under this Act shall be paid directly

22 to the Corporation or its agent. The Corporation is au23 thorized to levy fines, interest, and penalties for late pay24 ment or nonpayment of fees and other charges imposed

25 under this Act.
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1 (d) COST ALLOCATION STUDY.—(1) The Corporation

2 shall, as soon as practical after the date of transfer, under3 take a study of the allocation of all Corporation costs to

4 identifiable, discrete—

5 (A) air-traffic-service categories, distinguishing

6 at a minimum among domestic operations, foreign

7 air transportation operations to and from the United

8 States, and overflights of the United States; and

9 (B) user categories, including commercial avia10 tion, general aviation, and public-use aviation.

11 (2) The Corporation shall complete the cost allocation

12 study not later than 18 months after the date of transfer.

13 The study shall consider all costs incurred by the Corpora14 tion, and all costs incurred by the Department of Defense

15 to produce air traffic control services for civil aviation.

16 The study shall be consistent with generally accepted ac17 counting principles for commercial, not-for-profit entities.

18 (e) PUBLIC AIRCRAFT.—The Corporation shall not

19 impose fees or other charges for air traffic services pro20 vided to public aircraft, as defined in subtitle VII of title

21 49, United States Code.

22 (f) MILITARY AIRCRAFT.—The Corporation shall not

23 impose fees or other charges for air traffic services pro24 vided to United States military aircraft (Department of
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•HR 1441 IH

1 Defense, Air National Guard and reserve components,

2 Coast Guard).

3 (g) GENERAL AVIATION AIRCRAFT.—The Corpora4 tion shall not impose fees or other charges for air traffic

5 services provided to aircraft that are not used in the busi6 ness of providing transportation of persons or property for

7 compensation or hire by air.

8 (h) FOREIGN AIR TRANSPORTATION.—The Corpora9 tion’s authority to impose fees or other charges under this

10 section includes the authority to impose fees or other

11 charges for transportation of persons or property in for12 eign air transportation, as well as for services in the case

13 of overflights of United States airspace.

14 (i) REVIEW OF USER FEES.—(1) The actions of the

15 Corporation in exercising the authority of this section are

16 subject to review solely pursuant to the provisions of this

17 subsection.

18 (2) A user may file a complaint alleging that a fee,

19 charge or practice violates paragraph 209(b)(1) of this

20 section with the Department of Justice and seeking review

21 of any such fee, charge or practice. The Department of

22 Justice shall review each complaint and, if the Attorney

23 General concludes that as a result of such fee, charge or

24 practice, competition is likely to be unreasonably re25 strained, the Attorney General shall forward the complaint
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1 to the Secretary of Transportation for review and action.

2 Upon review of the complaint and in consultation with the

3 Attorney General, the Secretary of Transportation may

4 disapprove a fee, charge, or practice that violates the pro5 visions of paragraph 209(b)(1) of this section or issue

6 such other order as will remedy that violation.

7 (3) Complaints alleging that a new fee or charge vio8 lates paragraph 209(b)(2) of this section may be filed with

9 the Department of Transportation, seeking review of any

10 such new fee or charge within 60 days after the user re11 ceives written notice of a change to the fee or charge.

12 Upon review of the complaint, the Secretary of Transpor13 tation may disapprove any fee or charge that violates the

14 provisions of paragraph 209(b)(2) of this section or issue

15 such other order as will remedy that violation.

16 (4) Not later than 180 days after the date of enact17 ment of this section, the Department of Transportation

18 shall establish such procedures, guidelines or other meas19 ures as may be necessary to carry out its responsibilities

20 under this section.

21 (j) TRANSITIONAL USER FEES.—(1) During the 2-

22 year period following the date of transfer, and subject to

23 the separate limitation specified in paragraph (3) of this

24 subsection, the total amount of fees or other charges im25 posed in any period of time on an entity in the business
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1 of providing transportation to persons for compensation

2 or hire by air shall not exceed an amount that is 8.5 per3 cent of the total amount paid for such transportation dur4 ing that period of time.

5 (2) During the 2-year period following the date of

6 transfer, and subject to the separate limitation specified

7 in paragraph (3) of this subsection, the total amount of

8 fees or other charges imposed in any period of time on

9 an entity in the business of providing transportation of

10 property for compensation or hire by air shall not exceed

11 an amount that is 5.3 percent of the total amount paid

12 for such transportation during that period of time.

13 (3) During the 2-year period following the date of

14 transfer, the Corporation shall not impose fees or other

15 charges for air traffic services provided to a person travel16 ing in foreign air transportation that exceed the amount

17 of $5.10 per enplaned passenger departing the United

18 States. The Corporation may impose fees or charges dur19 ing the 2-year period for services in the case of overflights

20 of United States airspace, consistent with the require21 ments of this section.

22 SEC. 210. LIMITATION ON STATE AND LOCAL TAXATION.

23 (a) IN GENERAL.—The Corporation, its activities,

24 and facilities shall be exempt from all taxation now or

25 hereafter imposed by a State or local taxing authority, ex-
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1 cept the Corporation is not exempt from taxation that sup2 ports direct coverage or services provided to the Corpora3 tion, including unemployment compensation coverage and

4 sewer and water services.

5 (b) DEBT OF THE CORPORATION.—The status, for

6 purposes of taxation, of debt issued by the Corporation

7 is set forth in section 208 of this Act.

8 (c) TAX LAWS APPLICABLE TO EMPLOYEES.—Noth9 ing in this Act relieves the employees of the Corporation

10 from the tax laws of the United States, the several States,

11 and political subdivisions of the several States.

12 SEC. 211. PREEMPTION OF AUTHORITY OVER AIR TRAFFIC

13 SERVICES.

14 (a) DEFINITION.—In this section, ‘‘State’’ means a

15 State, the District of Columbia, and a territory or posses16 sion of the United States.

17 (b) PREEMPTION.—(1) Except as provided in this

18 subsection, a State, political subdivision of a State, or po19 litical authority of at last 2 States may not enact or en20 force a law, regulation, or other provision having the force

21 and effect of law related to air traffic services authorized

22 to be provided by the Corporation pursuant to the author23 ity of this Act.

24 (2) This subsection does not limit a State, political

25 subdivision of a State, or political authority of at least 2
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1 States that owns or operates an airport served by an air

2 carrier holding a certificate issued by the Secretary of

3 Transportation from carrying out its proprietary powers

4 and rights.

5 SEC. 212. SUITS BY AND AGAINST THE CORPORATION.

6 (a) JURISDICTION FOR LEGAL ACTIONS GEN7 ERALLY.—The United States district courts shall have

8 original jurisdiction over all actions brought by or against

9 the Corporation, except as otherwise provided in this Act.

10 Any action brought in a State court to which the Corpora11 tion is a party shall be removed to the appropriate United

12 States district court under the provisions of chapter 89

13 of title 28, United States Code.

14 (b) JURISDICTION FOR REVIEW OF CORPORATION

15 ORDERS AND PROCEDURES.—Notwithstanding the re16 quirements of subsection (a) of this section, the United

17 States Court of Appeals for the District of Columbia Cir18 cuit, and alternatively the Court of Appeals of the United

19 States for the circuit in which the person seeking judicial

20 review resides or has its principal place of business, have

21 exclusive jurisdiction over petitions challenging final or22 ders or procedures issued by the Corporation with respect

23 to its air traffic control duties and powers designated to

24 be carried out under this Act. The petition must be filed

25 not later than 60 days after the order is issued. When
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1 such a petition is filed, the clerk of the Court shall imme2 diately send a copy of the petition to the Chief Executive

3 Officer of the Corporation. A decision by a court under

4 this section may be reviewed only by the Supreme Court

5 of the United States.

6 (c) JURISDICTION FOR REVIEW OF TAKING AND IN7 FRINGEMENT CLAIMS.—(1) Any action for a taking of real

8 property founded upon the Constitution or any Act of

9 Congress or any regulation of an executive department

10 shall be brought against the United States in the Court

11 of Federal Claims pursuant to section 1491(a)(1) of title

12 28, United States Code.

13 (2) Any action founded upon the infringement of any

14 patent, copyright, certificate of plant variety protection,

15 or exclusive right in a mask work shall be brought against

16 the United States in the Court of Federal Claims pursuant

17 to section 1498 of title 28, United States Code.

18 (d) FEDERAL TORT CLAIMS ACT; APPLICABILITY OF

19 TITLE 28 U.S.C.—(1) The provisions of chapter 171 and

20 all other provisions of title 28, United States Code, relat21 ing to tort claims shall apply to tort claims arising out

22 of activities of the Corporation.

23 (2) Unless otherwise provided in this Act, the provi24 sions of title 28 relating to service of process, venue, and

25 limitations of time for bringing action in suits in which
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1 the United States, its officers, or employees are parties,

2 and the rules of procedure adopted under title 28 for suits

3 in which the United States, its officers, or employees are

4 parties, shall apply in like manner to suits in which the

5 Corporation, its officers, or employees are parties.

6 (e) CONDUCT OF LITIGATION.—The Department of

7 Justice shall furnish the Corporation legal representation

8 but, with the prior consent of the Attorney General, the

9 Corporation may employ attorneys by contract or other10 wise to conduct litigation brought by or against the Cor11 poration or its officers or employees in matters affecting

12 the Corporation.

13 (f) THE JUDGMENT FUND.—The Judgment Fund of

14 the United States shall not be available for the satisfaction

15 of any claims against the Corporation.

16 (g) TESTIMONY OF CORPORATION EMPLOYEES.—Ex17 cept with the consent of the chief legal officer of the Cor18 poration, employees of the Corporation may not be called

19 to or provide expert testimony in civil litigation, regardless

20 of whether the Corporation, the United States, or any of

21 its agencies is a party to such litigation. The Corporation

22 is authorized to prescribe the circumstances, if any, under

23 which employees may provide opinion or expert testimony.
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1 SEC. 213. ACQUIRING INTEREST IN PROPERTY BY EMINENT

2 DOMAIN.

3 (a) GENERAL AUTHORITY.—(1) To the extent finan4 cial resources are available, the Corporation may acquire

5 by eminent domain under subsection (b) of this section

6 interests in property necessary for operational control of

7 the airspace, including airways, air traffic services, and

8 navigation aids.

9 (2) The Corporation may exercise the power of emi10 nent domain only if it cannot—

11 (A) acquire the interest in the property by con12 tract; or

13 (B) agree with the owner on the purchase price

14 for the interest.

15 (b) CIVIL ACTIONS.—(1) A civil action to acquire an

16 interest in property by eminent domain under subsection

17 (a) of this section must be brought in the district court

18 of the United States for the judicial district in which the

19 property is located or, if a single piece of property is lo20 cated in more than one judicial district, in any judicial

21 district in which any piece of the property is located. An

22 interest is condemned and taken by the Corporation for

23 its use when a declaration of taking is filed under this

24 subsection and an amount of money estimated in the dec25 laration to be just compensation for the interest is depos26 ited in the court. The declaration may be filed with the
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1 complaint in the action or at any time before judgment.

2 The declaration must contain or be accompanied by—

3 (A) a statement of the public use for which the

4 interest is taken;

5 (B) a description of the property sufficient to

6 identify it;

7 (C) a statement of the interest in the property

8 taken;

9 (D) a plan showing the interest taken; and

10 (E) a statement of the amount of money the

11 Corporation estimates is just compensation for the

12 interest.

13 (2) When the declaration is filed and the deposit is

14 made under paragraph (1) of this subsection, title to the

15 property vests in the United States; on behalf of the Cor16 poration, in fee simple absolute or in the lesser interest

17 shown in the declaration, and the right to the money vests

18 in the person entitled to the money. When the declaration

19 is filed, the court may decide—

20 (A) the time by which, and the terms under

21 which, possession of the property is given to the Cor22 poration; and

23 (B) the disposition of outstanding charges relat24 ed to the property.
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1 (3) After a hearing, the court shall make a finding

2 on the amount that is just compensation for the interest

3 in the property and enter judgment awarding that amount

4 and interest on it. The rate of interest shall be equivalent

5 to current market yields on one-year obligations of the

6 United States and is computed on the amount of award

7 less the amount deposited in the court from the date of

8 taking to the date of payment.

9 (4) On application of a party, the court may order

10 immediate payment of any part of the amount deposited

11 in the court for the compensation to be awarded. If the

12 award is more than the amount received, the court shall

13 enter judgment against the Corporation for the deficiency.

14 SEC. 214. RELATIONSHIPS WITH FEDERAL AGENCIES.

15 (a) DEPARTMENT OF DEFENSE.—(1) In exercising

16 and performing its powers and duties under this Act, the

17 Corporation shall maintain national defense responsibil18 ities exercised by the Federal Aviation Administration as

19 of the date of transfer, including air defense and defense

20 readiness support.

21 (2) The Department of Defense (DOD) and the Cor22 poration shall continue to share current logistics and com23 mand and control systems and shall agree jointly on

24 changes to existing agreements or systems, including

25 changes to current agreements on flight inspections and
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1 similar services. The DOD, the Administration, and the

2 Corporation shall establish processes at the local, regional

3 and national levels to establish policy and implementing

4 procedures and to approve jointly exemptions for unique

5 military missions.

6 (3) The Corporation and DOD shall develop proc7 esses for the assignment of military personnel within the

8 Corporation to ensure national defense interests are safe9 guarded and to improve understanding and cooperation

10 between the organizations.

11 (4) The DOD shall have the same exemptions from

12 acquisition laws as the Corporation when engaged in joint

13 actions to improve or replenish the national air traffic con14 trol system. The Corporation retains the ability to acquire

15 real property, goods and services through DOD, or other

16 appropriate agencies, but will be bound by the acquisition

17 laws and regulations governing those cases.

18 (b) NATIONAL TELECOMMUNICATIONS AND INFOR19 MATION ADMINISTRATION.—The Corporation shall obtain

20 needed frequency assignments or licenses for its oper21 ations from the Federal Aviation Administration, which

22 retains its role as the responsible agency for representing

23 the interests of the aeronautical services before national

24 and international spectrum authorities on all national and

25 international spectrum policy and management issues in-
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1 volving the United States. Each assignment or license

2 made available to the Corporation shall remain in effect

3 for the life of the facility unless the National Tele4 communications and Information Administration with5 draws the spectrum from Federal Aviation Administra6 tion. In such cases, the Corporation shall be given ade7 quate notification.

8 (c) RELATIONSHIP WITH FEDERAL LAW ENFORCE9 MENT AGENCIES CONCERNING CONTROLLED SUBSTANCE

10 TRACKING.—In order to assist in controlling the illegal

11 transportation of controlled substances by aircraft in

12 United States airspace, the Corporation shall offer to Fed13 eral law enforcement agencies, without cost and in a time14 ly manner, all appropriate flightplan and tracking data re15 lated to such transportation. In this subsection, ‘‘con16 trolled substance’’ has the meaning provided under section

17 102 of the Comprehensive Drug Abuse Prevention and

18 Control Act of 1970 (21 U.S.C. 802).

19 (d) NATIONAL WEATHER SERVICE.—As successor to

20 the Federal Aviation Administration pursuant to this Act,

21 the Corporation shall exercise all functions performed by

22 the Federal Aviation Administration under agreements

23 with the National Weather Service concerning the collec24 tion or dissemination of weather conditions, forecasts,
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1 warnings, and reports to persons engaged in civil aero2 nautics.

3 TITLE III—PERMANENT FEDERAL

4 REQUIREMENTS

5 SEC. 301. CORPORATION SUBJECT TO DIRECT FEDERAL

6 CONTROL IN TIME OF WAR OR NATIONAL

7 EMERGENCY.

8 In the event of war or a national emergency declared

9 by the President or Congress, the President may by Exec10 utive order transfer to the Department of Defense any

11 functions (including powers, duties, activities, facilities,

12 and parts of functions) of the Corporation and, in connec13 tion with the transfer, the President may provide for ap14 propriate transfers of records, property, and personnel.

15 The Chief Executive Officer, in consultation with the Ad16 ministrator and the Department of Defense, shall develop

17 plans for the effective discharge of the responsibilities of

18 the Corporation in the event of war or national emergency.

19 The Corporation shall also comply with those provisions

20 of Executive Order 11161, or a successor authority, that

21 governed the activities of the Federal Aviation Administra22 tion to which the Corporation succeeded pursuant to this

23 Act.
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1 SEC. 302. COLLECTIVE BARGAINING.

2 (a) IN GENERAL.—Employees of the Corporation

3 shall have the right to form, join, or assist labor organiza4 tions, and to bargain collectively through representatives

5 of their own choosing. The Corporation, within three years

6 of the date of transfer, shall establish bargaining agree7 ments with recognized exclusive bargaining representa8 tives of the Corporation’s employees, consistent with the

9 provisions of this section. In the event agreements have

10 not been reached within that period, the Corporation or

11 the exclusive bargaining representatives may refer the un12 resolved matters to the Federal Mediation and Concilia13 tion Service under subsection (c) of this section.

14 (b) LIMITED APPLICABILITY OF THE NATIONAL

15 LABOR RELATIONS ACT.—The provisions of subchapter II

16 of chapter 7 (title 29, United States Code) of the National

17 Labor Relations Act shall govern—

18 (1) the rights of Corporation employees to orga19 nize and to be represented by labor organizations;

20 (2) the recognition of labor organizations, in21 cluding representational elections; and

22 (3) representation rights and duties.

23 (c) MEDIATION.—Upon the request of either party or

24 on its own motion, the Federal Mediation and Conciliation

25 Service may offer mediation assistance to labor organiza26 tions representing Corporation employees and the Cor-
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1 poration prior to their submission of a negotiation impasse

2 before the Labor Resolution Board under subsection (d).

3 (d) LABOR RESOLUTION BOARD.—A Labor Resolu4 tion Board shall be established for the binding resolution

5 of bargaining impasses, in the event mediation is unsuc6 cessful. The Labor Resolution Board shall consist of three

7 neutral members who are not employees of the Corpora8 tion. One member shall be designated by the Corporation

9 and one member shall be designated by the recognized ex10 clusive bargaining representatives of the Corporation’s

11 employees. The third member, chosen from recommenda12 tions made by both the Corporation and the recognized

13 exclusive bargaining representatives of the Corporation’s

14 employees, shall be designated by the Director of the Fed15 eral Mediation and Conciliation Service. Each member of

16 the Board shall receive such compensation from the Cor17 poration as the Corporation may fix, together with nec18 essary traveling and subsistence expenses while serving as

19 a member.

20 (e) PROHIBITION ON STRIKES, WORK STOPPAGES,

21 AND SLOWDOWNS.—An individual may not accept or hold

22 a position with the Corporation if such person participates

23 in a strike, work stoppage, or slowdown against the Cor24 poration. Any labor organization representing Corporation

25 employees is prohibited from calling or participating in a
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1 strike, work stoppage, or slowdown, or condoning any such

2 actions by failing to take immediate action to prevent or

3 stop such activity.

4 (f) LABOR MANAGEMENT REPORTING AND DISCLO5 SURE ACT.—The provisions of chapter 11 of title 29,

6 United States Code, apply to labor organizations that have

7 or are seeking to attain recognition under the authority

8 of this section, and to the organizations’ officers, agents,

9 shop stewards, other representatives, and members to the

10 extent to which the provisions would be applicable if the

11 Corporation were an employer under section 402 of title

12 29.

13 SEC. 303. INTERNATIONAL AGREEMENTS AND ACTIVITIES.

14 (a) CONSISTENCY WITH INTERNATIONAL OBLIGA15 TIONS AND LAWS OF OTHER COUNTRIES.—In exercising

16 and performing its powers and duties under this Act, the

17 Corporation shall do so consistently with any obligation

18 assumed by the United States in any treaty, convention,

19 or agreement that may be in force between the United

20 States and any foreign country or foreign countries or be21 tween the United States and an international organiza22 tion, and shall take into consideration any applicable laws

23 and requirements of foreign countries.

24 (b) INTERNATIONAL ACTIVITIES.—Subject to the

25 concurrence of the Secretaries of State and Transpor-
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1 tation, and provided that the Corporation first determines

2 that activities under this section promote aviation safety

3 or United States aviation interests, the Corporation shall,

4 to the extent possible—

5 (1) enter into cooperative relationships with for6 eign entities to conduct, encourage, and promote the

7 development, modification, testing, evaluation, and

8 provision of systems, procedures, facilities, and de9 vices necessary to meet the needs for safe and effi10 cient air navigation and air traffic control of civil

11 aviation;

12 (2) train foreign nationals directly, or in con13 junction with any other United States Government

14 agency, or through any United States public or pri15 vate agency (including any State or municipal edu16 cational institution), or through any international

17 organization, in aeronautical and related subjects es18 sential to the orderly and safe operation of civil air19 craft; and

20 (3) provide operational and technical services to

21 foreign aviation authorities.

22 (c) REIMBURSEMENT FOR ACTIVITIES.—The Cor23 poration may accept reimbursement for the full cost of

24 providing any training, operational, or technical services

25 performed under this section from the foreign entity re-
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1 ceiving such services or from an international organization

2 on behalf of the foreign entity.

3 TITLE IV—AMENDMENTS TO FEDERAL

4 AVIATION LAWS

5 SEC. 401. ACCESS TO THE AIR TRAFFIC SYSTEM.

6 Section 40101(c) of title 49, United States Code, is

7 amended—

8 (1) by inserting ‘‘, including regulation of the

9 Corporation,’’ after ‘‘of this part’’; and

10 (2) by striking all after ‘‘shall consider’’ and in11 serting the following: ‘‘the requirements of national

12 defense and commercial and general aviation, and

13 the public right of freedom of transit through the

14 navigable airspace. For purposes of this subsection,

15 the public right of freedom of transit through the

16 navigable airspace includes reasonable access to air17 ports, airways, and airway facilities without regard

18 to category and class of aircraft.’’.

19 SEC. 402. DEFINITIONS.

20 Section 40102(a) of title 49, United States Code, is

21 amended as follows:

22 (1) In paragraph (4), by inserting ‘‘, including

23 any facility that is owned, leased, operated or main24 tained by the Corporation,’’ before ‘‘used’’;
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1 (2) by redesignating paragraphs (12) through

2 (37) as paragraphs (13) through (38), respectively,

3 and by inserting after paragraph (11) the following:

4 ‘‘(12) ‘Corporation’ means the United States

5 Air Traffic Service Corporation created by the

6 ‘United States Air Traffic Service Corporation

7 Act’.’’; and

8 (3) by redesignating paragraphs (38) through

9 (41) as paragraphs (40) through (43), respectively,

10 and by adding after newly redesignated paragraph

11 (38) the following:

12 ‘‘(39) ‘routine airspace action’ means any regu13 latory or non-regulatory action that assigns the use

14 of class D, E, or G airspace or involves Federal air15 ways and reporting points, as these terms are de16 fined in the Federal Aviation Regulations.’’.

17 SEC. 403. AIRSPACE CONTROL AND AIR TRAFFIC RULES.

18 Section 40103(b) of title 49, United States Code, is

19 amended by striking the subsection heading and para20 graphs (1) and (2) and inserting the following:

21 ‘‘(b) USE OF AIRSPACE.—(1) The Administrator of

22 the Federal Aviation Administration shall develop safety

23 standards and policy for the use of the navigable airspace

24 and assign by regulation or order the safety structure for

25 use of airspace necessary to ensure the safety of aircraft.
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1 Prior to the date of transfer established pursuant to the

2 United States Air Traffic Service Corporation Act, the Ad3 ministrator shall assign by regulation or order the use of

4 the airspace necessary to ensure the safety of aircraft and

5 the efficient use of airspace. Effective on the date of trans6 fer established pursuant to the United States Air Traffic

7 Service Corporation Act and thereafter, the Administrator

8 shall oversee the assignment by the Corporation of the use

9 of the airspace, within the parameters set by Administra10 tion regulations, orders, and directives, necessary to en11 sure the efficient use of airspace with no derogation in

12 safety. The Administrator may modify or revoke an as13 signment of the Corporation when required in the public

14 interest.

15 ‘‘(2)(A) Prior to the date of transfer established pur16 suant to the United States Air Traffic Service Corporation

17 Act, the Administrator shall prescribe air traffic regula18 tions on the flight of aircraft (including regulations on

19 safe altitudes) for navigating, protecting, and identifying

20 aircraft; protecting individuals and property on the

21 ground; using the navigable airspace efficiently; and pre22 venting collision between aircraft, between aircraft and

23 land or water vehicles, and between aircraft and airborne

24 objects.
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1 ‘‘(B) Effective on the date of transfer established

2 pursuant to the United States Air Traffic Service Cor3 poration Act and thereafter, the Administrator shall set

4 safety parameters for and regulate the Corporation, and

5 have safety oversight of the Corporation’s prescription of

6 air traffic orders, procedures or other directives on the

7 flight of aircraft (including procedures on safe altitudes)

8 for navigating, protecting, and identifying aircraft; pro9 tecting individuals and property on the ground; using the

10 navigable airspace efficiently, preventing collision between

11 aircraft and land or water vehicles, and between aircraft

12 and airborne objects.

13 SEC. 404. EMERGENCY POWERS.

14 Section 40106 of title 49, United States Code, is

15 amended—

16 (1) In subsection (a), by inserting ‘‘or by the

17 Corporation’’ following ‘‘section 40103(b) (1) and

18 (2) of this title’’;

19 (2) In subsection (a)(1), by inserting ‘‘and the

20 Corporation’’ after ‘‘Administration’’; and

21 (3) In subsection (a)(2), by inserting ‘‘and the

22 Corporation’’ after ‘‘Administrator’’.

23 SEC. 405. PRESIDENTIAL TRANSFERS IN TIME OF WAR.

24 Section 40107(b) of title 49, United States Code, is

25 amended to read as follows:
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1 ‘‘(b) DURING WAR.—If war occurs, the President by

2 Executive order may transfer to the Secretary of Defense

3 a duty, power, activity, or facility of the Administrator or

4 the Corporation. In making the transfer, the President

5 may transfer records, property, officers, and employees of

6 the Administration or the Corporation to the Department

7 of Defense. The Corporation shall develop, in consultation

8 with the Administrator and the Department of Defense

9 and other affected Government agencies, plans for the ef10 fective discharge of the responsibilities of the Administra11 tion and the Corporation in the event of war.’’.

12 SEC. 406. PREEMPTION OF PRICES, ROUTES AND SERVICE

13 REGULATION.

14 Section 41713(b)(1) of title 49, United States Code,

15 is amended by adding the following new sentence at the

16 end thereof: ‘‘The Corporation is also prohibited from un17 dertaking actions that would have the same effects as the

18 actions specified in this paragraph.’’.

19 SEC. 407. AIRWAY CAPITAL INVESTMENT PLAN; RESEARCH

20 AND DEVELOPMENT PLANNING.

21 Section 44501 of title 49, United States Code, is

22 amended as follows:

23 (1) In subsection (b), insert at the end of the

24 first sentence ‘‘that does not follow the date of
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1 transfer established under the United States Air

2 Traffic Service Corporation Act’’.

3 (2) In subsection (c)(1), insert at the end the

4 following sentence: ‘‘In carrying out their respective

5 duties and responsibilities under this chapter and

6 under subtitle XI of this title, the Administrator and

7 the Corporation shall consult and cooperate concern8 ing research and development activities related to

9 the use of navigable airspace, air traffic control, and

10 air navigation, in order to avoid unnecessary dupli11 cation of their research and development efforts.’’.

12 SEC. 408. AVIATION FACILITIES.

13 Sections 44502(a)(1) and 44502(f) of title 49, United

14 States Code, are amended by inserting ‘‘Prior to the date

15 of transfer established under the United States Air Traffic

16 Service Corporation Act,’’ at the beginning of each para17 graph.

18 SEC. 409. REGULATION OF THE UNITED STATES AIR TRAF19 FIC SERVICE CORPORATION.

20 Title 49, United States Code, is amended by inserting

21 after section 44723 the following:

22 ‘‘§ 44724. Oversight of the United States Air Traffic

23 Service Corporation

24 ‘‘(a) OVERSIGHT OF THE UNITED STATES AIR TRAF25 FIC SERVICE CORPORATION.—The Administrator of the
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1 Federal Aviation Administration is authorized and di2 rected to prescribe by regulation or otherwise, minimum

3 standards and necessary requirements to assure the high4 est level of aviation safety in the public interest, and to

5 insure that national defense needs are met, in actions

6 taken by the Corporation. The Administration shall con7 tinue to prescribe long-range policy and planning and set

8 safety standards that regulate the Corporation. The Cor9 poration shall act within the parameters of the regulations

10 prescribed by the Federal Aviation Administration and the

11 authority of this Act to meet its mission to control air

12 traffic in a safe and efficient manner.

13 ‘‘(b) COORDINATION.—To the greatest extent pos14 sible, the Administrator shall encourage cooperation and

15 coordination between the Administration and the Corpora16 tion. The Administrator shall take appropriate action

17 promptly on recommendations made by the Corporation.

18 ‘‘(c) ADMINISTRATOR ACTION.—The Administrator,

19 pursuant to authorities under this subtitle, may direct the

20 Corporation to cease any action that the Administrator de21 termines may compromise aviation safety or security or

22 the national defense, or to undertake any action to assure

23 aviation safety or security or the national defense. Where

24 the Corporation has authority to prescribe orders, direc25 tives, actions, or assignments, the Administrator may di-
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1 rect the Corporation to withdraw or revise an order, proce2 dure, directive, action, or assignment for reasons of safety,

3 security or the national defense. The Administrator may

4 only modify or revoke an action of the Corporation when

5 required by the safety, security, or national defense inter6 est or interest of the public. The Administrator’s authority

7 under this subsection shall not be delegated.

8 ‘‘(d) ENFORCEMENT OF CORPORATION RULES, REG9 ULATIONS, ORDERS AND OTHER DIRECTIVES.—The Cor10 poration shall refer for action by the Administration, pur11 suant to subpart IV of this part, complaints against any

12 person for violations of orders, procedures, and other di13 rectives issued by the Corporation or by the Administra14 tion pursuant to the authority of this chapter. The Admin15 istrator shall take appropriate action promptly on com16 plaints referred by the Corporation. The Corporation shall

17 provide necessary assistance in any enforcement action

18 taken under this subsection. This subsection shall not be

19 construed to limit the authority of the Administrator to

20 undertake enforcement actions under this part upon the

21 Administrator’s initiative.’’.
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1 TITLE V—OTHER APPLICABLE STATUTES

2 SEC. 501. EMPLOYEE MANAGEMENT AND EXEMPTIONS

3 FROM TITLE 5, UNITED STATES CODE.

4 (a) ESTABLISHMENT OF EMPLOYEE MANAGEMENT

5 SYSTEM.—The Corporation shall establish a comprehen6 sive system for the management, compensation, and ad7 vancement of Corporation employees that best serves the

8 needs of airspace management in the United States.

9 (b) EXCLUSIVE AUTHORITY TO SET EMPLOYMENT

10 LEVELS AND PAY.—The Chief Executive Officer has the

11 exclusive authority, subject to the provisions of this section

12 and section 302, to fix total compensation, including in13 centives and benefits, for all employees of the Corporation

14 other than the Chief Executive Officer. The Chief Execu15 tive Officer shall determine the appropriate level of staff16 ing and appoint such numbers of officers and employees

17 as needed to conduct the business of the corporation with18 out regard to limits imposed by Federal bodies. The Chief

19 Executive Officer has the exclusive authority to take all

20 personnel actions, including but not limited to, appoint21 ments, assignments, reassignments, promotions, demo22 tions, and terminations. Personnel actions shall be consist23 ent with the principles of fairness and due process. The

24 Corporation shall fulfill the obligations of statutes govern25 ing use of military personnel to ensure the corporation is
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1 properly advised on requirements of the armed forces and

2 that national defense interests are safeguarded properly.

3 The Corporation is authorized to conduct background in4 vestigations, including accessing records of the Federal

5 Bureau of Investigation and other law enforcement agen6 cies, to determine suitability for employment. Executive

7 Order 10450 shall govern the granting of access to Na8 tional Security information.

9 (c) LIMITED APPLICABILITY OF TITLE 5, UNITED

10 STATES CODE.—(1) Title 5, United States Code, applies

11 to the Corporation and its employees and activities only

12 to the extent set forth in this section and section 601. Ex13 cept as otherwise provided in this Act, employees of the

14 Corporation qualify as officers and employees of the

15 United States.

16 (2)(A) During the three-year period that follows the

17 date of transfer, chapters 87 and 89 (Health and Life In18 surance) of title 5, United States Code, apply to the Cor19 poration. An employee of the Corporation, including any

20 employee hired during the three-year period, shall be cov21 ered under the provisions of chapters 87 and 89 of title

22 5, but only during this period. The Corporation shall make

23 such payments as are required under these chapters dur24 ing this period.
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1 (B) During the three-year period that follows the

2 date of transfer, the Corporation shall negotiate replace3 ment health and life insurance systems that apply to its

4 employees subsequently and that, as a minimum, provide

5 not less than one life insurance and three health insurance

6 programs that are comparable with respect to employee

7 premium cost and coverage to the Federal health and life

8 insurance programs available to employees during the

9 three-year period.

10 (3) Any Federal employee who transfers to the Cor11 poration under section 601 and who on the day before the

12 date of transfer is subject to subchapter III of chapter

13 83 of title 5 (Retirement), United States Code, or chapter

14 84 (Federal Employees’ Retirement System) of such title

15 shall, so long as continually employed by the Corporation

16 without a break in service, continue to be subject to such

17 subchapter or chapter, as the case may be. Employment

18 by the Corporation without a break in continuity of service

19 shall be considered to be employment by the United States

20 Government for purposes of such subchapter and chapter.

21 The Corporation shall be the employing agency for pur22 poses of section 602 and shall contribute to the Civil Serv23 ice Retirement and Disability Fund such sums as are re24 quired by section 602.
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1 (4) As rapidly as practical following the date of trans2 fer, the Corporation shall negotiate a retirement benefits

3 system that applies to employees hired following the date

4 of transfer. Employees employed by the Corporation as of

5 that date may elect, within six months of the establish6 ment of such new systems, to retain coverage under title

7 5 or transfer to the new systems.

8 (5) Chapter 81 of title 5 (Compensation for Work In9 jury) applies to the Corporation. An employee of the Cor10 poration, including any employee hired after the date of

11 transfer, shall be covered under the provisions of chapter

12 81.

13 (6) An employee, as defined in section 2105 of title

14 5, United States Code, who transfers to the Corporation

15 other than under section 601 of this Act and without a

16 break in service is entitled to retain coverage, rights, and

17 benefits under chapters 81, 83, 84, 87, and 89 of title

18 5, United States Code (to the extent otherwise provided

19 by this subsection), if necessary deductions and Corpora20 tion contributions are deposited in the systems’ funds in

21 accordance with section 602, as applicable, and if such em22 ployee so elects within six months of transfer to the Cor23 poration.

24 (7) Sections 7342, 7353, and 7351 of title 5, United

25 States Code, and Appendices 4 (Executive Personnel Fi-
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1 nancial Disclosure Requirements) and 6 (Financial Disclo2 sure Requirements of Federal Personnel) of title 5, United

3 States Code, apply to officers and employees of the Cor4 poration.

5 (8) The Veterans Preference Act of 1944, as amend6 ed (5 U.S.C. 3308–3320), applies to the Corporation.

7 (d) CIVIL RIGHTS PROTECTIONS IN EMPLOYMENT.—

8 The provisions of section 2000e–16 of title 42, United

9 States Code (Employment by Federal Government) apply

10 to the employees of the Corporation.

11 (e) COLLECTIVE BARGAINING.—The provisions of the

12 Federal Service Labor-Management Relations Statute,

13 chapter 71 of title 5, United States Code, shall not apply

14 except as provided in section 601 of this Act.

15 SEC. 502. APPLICABILITY OF GOVERNMENT CORPORATION

16 CONTROL ACT.

17 (a) Section 9101(3) of title 31, United States Code,

18 is amended by adding after subparagraph (N) the follow19 ing new subparagraph:

20 ‘‘(O) the United States Air Traffic Service

21 Corporation.’’.

22 (b) Notwithstanding subsection (a), the following pro23 visions of chapter 91 of title 31, United States Code, shall

24 not apply to the Corporation:
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1 (1) Section 9102 (relating to establishing and

2 acquiring corporations), except that any subsidiaries

3 or affiliates of the Corporation shall be subject to

4 the debt limitation contained in section 208 of this

5 Act.

6 (2) Section 9103(c) (relating to budgets of

7 wholly owned Government corporations), except that

8 the budget submitted by the Corporation in accord9 ance with section 9103(a) shall be submitted by the

10 President without change as part of the budget sub11 mitted to Congress under section 1105 of title 31,

12 United States Code.

13 (3) Sections 9105–9106 (relating to audits), ex14 cept that the Corporation shall prepare an annual fi15 nancial statements audit pursuant to section 9105.

16 (4) Section 9107 (relating to accounts).

17 (5) Section 9108 (relating to obligations); ex18 cept that the Secretary of the Treasury shall pre19 scribe the timing of issuance of obligations to the

20 public.

21 (6) Section 9109 (relating to exclusion of a

22 wholly owned Government Corporation from the

23 Act).
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1 (7) Section 9110 (relating to standards for de2 pository institutions holding securities of a Govern3 ment-sponsored corporation for customers).

4 SEC. 503. EXTENSION AND AMENDMENT OF AVIATION-RE5 LATED TAXES AND TRUST FUND SPENDING

6 AUTHORITY.

7 (a) AVIATION FUEL USED IN NON-COMMERCIAL

8 AVIATION.—Section 4091(b)(3)(A) of the Internal Reve9 nue Code of 1986 (26 U.S.C. 4091(b)(3)(A)) is amended

10 by striking ‘‘January 1, 1996’’ and inserting in lieu there11 of ‘‘January 1, 1999’’.

12 (b) GASOLINE USED IN NON-COMMERCIAL AVIA13 TION.—Section 4041(c)(5) of the Internal Revenue Code

14 of 1986 (26 U.S.C. 4041(c)(5)) is amended by striking

15 ‘‘December 31, 1995’’ and inserting in lieu thereof ‘‘De16 cember 31, 1998’’.

17 (c) TRANSPORTATION OF PASSENGERS BY AIR.—(1)

18 Section 4261 of the Internal Revenue Code of 1986 is

19 amended by striking ‘‘a tax equal to 10 percent of the

20 amount so paid’’ each place it appears and inserting in

21 lieu thereof ‘‘a tax equal to 1.5 percent of the amount so

22 paid, except that the tax imposed for transportation begin23 ning before January 1, 1997, shall be equal to 10 percent

24 of the amount so paid’’.
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1 (2) Section 4261(c) of the Internal Revenue Code of

2 1986 is amended by striking ‘‘a tax of $6’’ and inserting

3 in lieu thereof ‘‘a tax of $.90, except that the tax imposed

4 for transportation beginning before January 1, 1997, shall

5 be a tax of $6,’’.

6 (3) Section 4261(g) of the Internal Revenue Code of

7 1986 is amended by striking ‘‘January 1, 1996’’ and in8 serting in lieu thereof ‘‘January 1, 1999’’.

9 (d) TRANSPORTATION OF PROPERTY BY AIR.—(1)

10 Section 4271 of the Internal Revenue Code of 1986 is

11 amended by striking ‘‘a tax equal to 6.25 percent of the

12 amount so paid’’ and inserting in lieu thereof ‘‘a tax equal

13 to .95 percent of the amount so paid, except that the tax

14 imposed for transportation beginning before January 1,

15 1997, shall be equal to 6.25 percent of the amount so

16 paid’’.

17 (2) Section 4271(d) of the Internal Revenue Code of

18 1986 is amended by striking ‘‘January 1, 1996’’ and in19 serting in lieu thereof ‘‘January 1, 1999’’.

20 (e) Section 9502(b) of the Trust Fund Code of 1981

21 is amended—

22 (1) by striking ‘‘January 1, 1996’’ each place

23 it appears and inserting in lieu thereof ‘‘January 1,

24 1999’’;
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1 (2) by inserting the word ‘‘and’’ after the semi2 colon at the end of paragraph (2);

3 (3) by striking ‘‘; and’’ at the end of paragraph

4 (3) and substituting a period in lieu thereof; and

5 (4) by deleting paragraph (4).

6 (f) Section 9502(d)(1) of the Trust Fund Code of

7 1981 is amended by striking the phrase ‘‘October 1,

8 1995’’ and inserting in lieu thereof ‘‘October 1, 1999’’.

9 (g) Section 9502(d)(1)(A) of the Trust Fund Code

10 of 1981 is amended by striking ‘‘or the Federal Aviation

11 Administration Authorization Act of 1994’’ and inserting

12 ‘‘or the Federal Aviation Administration Authorization

13 Act of 1994 or the United States Air Traffic Service Cor14 poration Act’’.

15 (h) Section 9502(f)(3) of the Trust Fund Code of

16 1981 is amended by striking ‘‘December 31, 1995’’ and

17 inserting in lieu thereof ‘‘December 31, 1998’’.

18 SEC. 504. TRANSFERS FROM THE AIRPORT AND AIRWAY

19 TRUST FUND.

20 Section 9502(d) of the Trust Fund Code of 1981

21 (Expenditures from Airport and Airway Trust Fund) is

22 amended by the addition of new paragraphs (5), (6) and

23 (7) as follows:

24 ‘‘(5) Transfers from the Airport and Airway

25 Trust Fund to cover certain air traffic transition
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1 costs. The Secretary of the Treasury shall pay from

2 the Airport and Airway Trust Fund to the United

3 States Air Traffic Service Corporation amounts

4 equivalent to the obligated but unexpended balance

5 of appropriations available on October 1, 1996, for

6 operation and maintenance of air traffic control, air

7 navigation, communications, or supporting services

8 for the airway system by the Federal Aviation Ad9 ministration. Such amounts shall be transferred on

10 the date of transfer under the United States Air

11 Traffic Service Corporation Act and on the basis of

12 estimates by the Secretary of Transportation. Such

13 balances received by the Corporation will be used

14 only for the purposes and in such amounts as they

15 were obligated, when held in the Trust Fund.

16 ‘‘(6) Transfers from the Airport and Airway

17 Trust Fund to cover certain air traffic facility costs.

18 The Secretary of the Treasury shall pay from the

19 Airport and Airway Trust Fund to the United

20 States Air Traffic Service Corporation amounts

21 equivalent to outlays required to meet obligations for

22 development or construction of air traffic control, air

23 navigation, or communications facilities for the air

24 traffic system entered into by the United States

25 prior to October 1, 1996. Such amounts shall be
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1 transferred in the quarter immediately following the

2 quarter in which the outlays are made by the Cor3 poration, and on the basis of estimates by the Sec4 retary of the Transportation, and proper adjust5 ments shall be made in amounts subsequently trans6 ferred to the extent prior estimates were in excess

7 of or less than the credits allowed. Amounts received

8 by the Corporation will be used only for the pur9 poses and in such amounts as they were obligated,

10 when held in the Trust Fund.

11 ‘‘(7) Transfers from the Airport and Airway

12 Trust Fund to cover the commencement of Corpora13 tion services. Amounts in the Airport and Airway

14 Trust Fund shall be available, as provided by Appro15 priations Acts, for payment by the Secretary of the

16 Treasury to the United States Air Traffic Service

17 Corporation, which amounts are equivalent to the

18 maximum percentages allowed in section 209(j) of

19 this Act, applied to the air transportation covered by

20 that subsection which occurred on or after October

21 1, 1996, and before January 1, 1997. Such amounts

22 shall be transferred on the basis of estimates by the

23 Secretary of the Treasury, and proper adjustments

24 shall be made in amounts subsequently transferred
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1 under this subsection to the extent prior estimates

2 were in excess of or less than the amount allowed.’’.

3 SEC. 505. EXCLUSION OF THE CORPORATION FROM THE

4 BUDGET AND BUDGET ENFORCEMENT.

5 (a) Any increases in direct spending or reduction in

6 receipts authorized by this Act shall be exempt from the

7 requirements of section 252 of the Balanced Budget and

8 Emergency Deficit Control Act of 1985.

9 (b) Any transfer under section 9502(d)(7) of the

10 Trust Fund code of 1981, as amended by section 504 of

11 this Act, shall be exempt from the requirements of section

12 251 of the Balanced Budget and Emergency Deficit Con13 trol Act of 1985.

14 (c) Section 255(g)(1)(A) of the Balanced Budget and

15 Emergency Deficit Control Act of 1985 is amended by in16 serting after ‘‘Tennessee Valley Authority, except non17 power programs and activities (64–4110–0–3–999);’’ the

18 following: ‘‘United States Air Traffic Service Corpora19 tion;’’.

20 (d) Notwithstanding any other provision of law, the

21 receipts and disbursements of the Corporation shall not

22 be counted as new budget authority, outlays, receipts, or

23 deficit or surplus for purposes of—

24 (1) the budget of the United States Govern25 ment as submitted by the President;
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1 (2) the congressional budget; or

2 (3) the Balanced Budget and Emergency Defi3 cit Control Act of 1985.

4 SEC. 506. DISCRETIONARY SPENDING LIMITS.

5 (a) Upon enactment of this Act, the discretionary

6 spending limits set forth in section 601(a)(2) of the Con7 gressional Budget Act of 1974 (2 U.S.C. 665(a)(2)) (as

8 adjusted in conformance with section 251 of the Balanced

9 Budget and Emergency Deficit Control Act of 1985) for

10 fiscal years 1997 through 2000 are reduced by the follow11 ing amounts:

12 (1) For fiscal year 1997, for the discretionary

13 category: $6,405,000,000 in new budget authority

14 and $4,190,000,000 in outlays.

15 (2) For fiscal year 1998; for the discretionary

16 category: $6,870,000,000 in new budget authority

17 and $5,586,000,000 in outlays.

18 (b) For fiscal year 1999, the comparable amount for

19 budgetary purposes shall be deemed to be $7,449,000,000

20 in new budget authority and $6,542,000,000 in outlays.

21 For fiscal year 2000, the comparable amount for budg22 etary purposes shall be deemed to be $7,828,000,000 in

23 new budget authority and $7,148,000,000 in outlays.
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1 VI—TRANSITION PROVISIONS

2 SEC. 601. TRANSFER OF FEDERAL PERSONNEL TO THE

3 CORPORATION.

4 (a) TRANSFER OF EMPLOYEES TO THE CORPORA5 TION.—Jointly, the Administrator and the Chief Execu6 tive Officer shall determine which functions and which em7 ployees are transferred to the Corporation.

8 (b) CONTINUATION OF PERSONNEL SYSTEMS.—

9 Compensation, benefits, and other terms and conditions

10 of employment that exist for employees and officers of the

11 Federal Aviation Administration on the date of transfer

12 shall continue to apply to officers and employees of the

13 Corporation unless and until changed in accordance with

14 section 501 of this Act.

15 (c) EMPLOYEE PROTECTIONS.—Employment rights,

16 wages, and benefits of employees transferred to the Cor17 poration shall not be adversely affected, except for cause,

18 during the three-year period commencing on the date of

19 transfer. Thereafter, employee rights, wages and benefits

20 will be governed by the provisions of section 501 of this

21 Act.

22 (d) LABOR AGREEMENTS.—(1) In the interest of ef23 fective labor-management relationships, the Corporation

24 shall adopt all labor agreements that are in effect on the

25 date of transfer and shall accord full recognition to labor
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1 organizations representing Corporation employees to the

2 extent that those labor organizations had been accorded

3 exclusive representative status for those employees under

4 sections 7111 and 7112 of title 5, United States Code,

5 prior to the date of transfer. Such labor agreements shall

6 remain in effect for three years from the date of transfer,

7 unless the agreements provide for a shorter duration or

8 the Corporation and the exclusive representative agree to

9 the contrary before the expiration of that three-year pe10 riod. For the period such labor agreements are in effect,

11 the parties will be governed by the terms and conditions

12 of those agreements and by the applicable provisions of

13 chapter 71 of title 5, United States Code, and will file

14 any unfair labor practice charges, negotiability appeals,

15 exceptions to arbitration awards and requests for assist16 ance to solve impasses that do not arise from the negotia17 tion of a new agreement with the appropriate component

18 of the Federal Labor Relations Authority.

19 (2) Disputes arising from the negotiation of a new

20 agreement will be resolved by the National Labor Rela21 tions Board or the Labor Resolution Board, as appro22 priate under section 302 of this Act.

23 (3) As of the date of transfer, determinations con24 cerning the appropriateness of bargaining units, or the

25 bargaining unit status of Corporation employees, or the
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1 exclusive representation status of labor organizations rep2 resenting Corporation employees will be resolved by the

3 National Labor Relations Board under section 302 of this

4 Act.

5 (4) Any proceedings under section 7117, 7118, or

6 7122 of title 5, United States Code, pending before any

7 component of the Federal Labor Relations Authority when

8 the parties cease to be governed by the applicable provi9 sions of chapter 71 of title 5 will be decided and, if nec10 essary, defended and enforced by the Federal Labor Rela11 tions Authority. Any other matters involving the Corpora12 tion that are pending before any component of the Federal

13 Labor Relations Authority when the parties cease to be

14 governed by the applicable provisions of chapter 71 of title

15 5 will be transferred by the appropriate component of the

16 Authority to the National Labor Relations Board or the

17 Labor Resolution Board, as appropriate under section 302

18 of this Act.

19 SEC. 602. PAYMENTS FOR EMPLOYEE BENEFITS.

20 (a) The Corporation shall make payments as are

21 required by section 8147 of title 5, United States Code.

22 (b) The Corporation shall pay to the Civil Service

23 Retirement and Disability Fund—
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1 (1) such employee deductions and agency con2 tributions as are required by sections 8334, 8422,

3 and 8423 of title 5, United States Code; and

4 (2) such additional agency contributions as are

5 determined necessary by the Office of Personnel

6 Management to pay, in combination with the sums

7 under paragraph (1), the normal cost (determined

8 using dynamic assumptions) of retirement benefits

9 for the employee of the Corporation who are subject

10 to subchapter III of chapter 83 of title 5, United

11 States Code.

12 (c) The Corporation shall pay to the Thrift Savings

13 Fund such employee and agency contributions as are re14 quired by section 8432 of title 5, United States Code.

15 SEC. 603. TRANSFER OF FACILITIES TO THE CORPORATION.

16 (a) IN GENERAL.—(1) The Administrator is author17 ized and directed to transfer, on the date of transfer or

18 as soon as practical thereafter, to the Corporation without

19 charge all right, title, and interest in, and the use, posses20 sion, and control of, real and personal property under Fed21 eral Aviation Administration jurisdiction, including fre22 quency licenses, patents, and software rights, of the

23 United States that are necessary and appropriate for the

24 functions being transferred to the Corporation. However,

25 the Administrator shall not transfer the Atlantic City
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1 Technical Center. The Corporation shall contract for serv2 ices provided at this facility on the date of transfer that

3 are associated with transferring functions, at a minimum

4 for a period of one year following transfer at not less than

5 the level of activity on the date of transfer, unless that

6 level for a particular activity is unjustified.

7 (2) The Secretary of Defense is authorized and di8 rected to transfer to the Corporation without charge all

9 right, title, and interest in, and the use, possession, and

10 control of, real and personal property of the Department

11 of Defense located at a military installation being closed

12 or realigned if that real and personal property is used im13 mediately before the closure or realignment decision as a

14 functional part of the air traffic system being transferred

15 to the Corporation by this Act.

16 (b) AIR TRAFFIC CONTROL OR NAVIGATION FACILI17 TIES PLACED AT AIRPORTS.—The authority of the Ad18 ministrator pursuant to section 47107(12) of title 49,

19 United States Code, to locate existing and future air traf20 fic control or navigation facilities at airports without cost

21 shall continue to be available to be exercised as a condition

22 of federal financial assistance on behalf of the Corpora23 tion.
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1 SEC. 604. SAVINGS PROVISION.

2 (a) CONTINUED EFFECTIVENESS OF DIRECTIVES.—

3 All orders, determinations, rules, regulations, permits,

4 contracts, leases, certificates, licenses, agreements for real

5 and personal property, and privileges that—

6 (1) have been issued, made, granted, or allowed

7 to become effective by the President of the United

8 States, the Secretary, the Administrator, any Fed9 eral agency or official thereof, or by a court of com10 petent jurisdiction, in the performance of functions

11 which are transferred by this Act; and

12 (2) are in effect on the date of transfer, shall

13 continue in effect according to their terms until

14 modified, terminated, superseded, set aside, or re15 voked in accordance with law by the President of the

16 United States, the Administrator, the Corporation, a

17 court of competent jurisdiction, or by operation of

18 law.

19 (b) CONTINUED EFFECTIVENESS OF PENDING AC20 TIONS.—(1) The provisions of this Act shall not affect any

21 proceedings, including notices of proposed rulemaking, or

22 any application for any license, permit, certificate, or fi23 nancial assistance pending on the date of transfer before

24 the Department of Transportation or the Federal Aviation

25 Administration, or any officer thereof with respect to func26 tions transferred by this Act; but such proceedings or ap-
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1 plications, to the extent that they relate to functions trans2 ferred, shall be continued in accord with transition regula3 tions promulgated by the Corporation under the authority

4 of this section. Orders issued in any such proceedings shall

5 continue in effect until modified, terminated, superseded,

6 or revoked by the Corporation, by a court of competent

7 jurisdiction, or by operation of law. Nothing in this sub8 section prohibits the discontinuance or modification of any

9 such proceeding under the same terms and conditions and

10 to the same extent that such proceeding could have been

11 discontinued or modified if this Act had not been enacted.

12 (2) The Secretary, the Administrator, and the Cor13 poration are authorized to issue transition regulations pro14 viding for the orderly transfer of proceedings and other15 wise to accomplish the orderly transfer of functions, per16 sonnel and property under this Act.

17 (c) CONTINUED EFFECTIVENESS OF ADMINISTRA18 TIVE AND JUDICIAL ACTIONS.—No cause of action by or

19 against the Department of Transportation or the Federal

20 Aviation Administration with respect to functions trans21 ferred by this Act, or by or against any officer thereof

22 in the official’s capacity, shall abate by reason of the en23 actment of this Act. Causes of action and actions with re24 spect to a function or office transferred by this Act, or

25 other proceedings may be asserted by or against the
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1 United States or an official of the Corporation, as may

2 be appropriate, and, in an action pending when this Act

3 takes effect, the court may at any time, on its own motion

4 or that of any party, enter an order which will give effect

5 to the provisions of this subsection.

6 (d) SUBSTITUTION OR ADDITION OF PARTIES TO JU7 DICIAL ACTIONS.—If, on the date of transfer, the Depart8 ment of Transportation or the Federal Aviation Adminis9 tration, or any officer thereof in the official’s capacity, is

10 a party to an action and, under this Act, specific func11 tional responsibility for that action of the Department,

12 Administration, or officer is transferred to the Corpora13 tion, then such action shall be continued with the Chief

14 Executive Officer of the Corporation substituted or added

15 as a party.

16 (e) CONTINUED JURISDICTION OVER ACTIONS

17 TRANSFERRED.—Orders and actions of the Corporation

18 in the exercise of functions transferred by this Act shall

19 be subject to judicial review to the same extent and in

20 the same manner as if such orders and actions had been

21 by the Department of Transportation or the Federal Avia22 tion Administration, or any office or officer thereof, in the

23 exercise of such functions immediately preceding their

24 transfer.
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1 (f) AIR TRAFFIC SERVICE LIABILITIES AND OBLIGA2 TIONS.—The Corporation shall assume all obligations

3 (tangible and incorporeal, present and executory) associ4 ated with the functions transferred under this Act on the

5 date of transfer, including leases, permits, licenses, con6 tracts, agreements, claims, tariffs, accounts receivable,

7 and accounts payable. All claims and actions arising in

8 tort pending on the date of transfer and arising out of

9 the alleged acts and omissions of employees who transfer

10 to the Corporation shall remain liabilities of the United

11 States. The Secretary shall assure that, before the date

12 of transfer, the Corporation has agreed to allow represent13 atives of the Secretary and the Attorney General such ac14 cess as they may require to employees and records for all

15 purposes relating to the handling of such claims.

16 (g) DEPARTMENT OF DEFENSE AGREEMENTS.—All

17 national, regional, and facility level agreements, under18 standings, and contracts between the Department of De19 fense and that portion of Federal Aviation Administration

20 transferring to the Corporation will remain in effect after

21 the date of transfer.

22 SEC. 605. ADMINISTRATIVE AND BUDGETARY TRANSITION.

23 (a) USE OF RESOURCES FOR TRANSITION.—For the

24 purpose of facilitating the transfers mandated by this Act,

25 the Secretary of Transportation, the Administrator of the
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1 Federal Aviation Administration and the Chief Executive

2 Officer of Corporation are authorized to utilize funds pre3 viously appropriated to the Department of Transportation

4 or the Federal Aviation Administration for the conduct of

5 the functions being transferred by this Act, subject to ac6 counting.

7 (b) ASSISTANCE OF THE OFFICE OF MANAGEMENT

8 AND BUDGET.—In order to facilitate the transfers made

9 by this Act, the Director of the Office of Management and

10 Budget is authorized and directed to make such deter11 minations as may be necessary to resolve disputes between

12 the Secretary of Transportation, the Administrator of the

13 Federal Aviation Administration, and the Corporation re14 garding the division of personnel, assets, liabilities, con15 tracts, property, records, and unexpended balances of ap16 propriations, authorizations, allocations, and other funds

17 held, used, arising from, available to or to be made avail18 able in connection with the transfer.

19 (c) TERMINATION OF TRANSITION AUTHORITY.—

20 The authorization under this section shall terminate upon

21 completion of the transfer.

22 SEC. 606. REFERENCE.

23 With respect to any functions transferred by this Act

24 and exercised after the date of transfer, reference in any

25 other Federal law or executive order to the Secretary or
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1 the Administrator or to the Department of Transportation

2 or the Federal Aviation Administration or any officer or

3 office thereof, shall be considered to refer to the Corpora4 tion or the Chief Executive Officer of the Corporation, as

5 appropriate.

6 SEC. 607. SEPARABILITY.

7 If a provision of this Act or its application to any

8 person or circumstance is held invalid, neither the remain9 der of this Act nor the application of the provision to other

10 persons or circumstances shall be affected.

11 SEC. 608. EFFECTIVE DATE.

12 Except as otherwise specified, this Act takes effect

13 on the date of enactment.

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