I

104TH CONGRESS

1ST SESSION H. R. 2403

To amend title 49, United States Code, with respect to the regulation of

interstate transportation by common carriers engaged in civil aviation,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 27, 1995

Mr. CLEMENT introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Small Business, Government Reform and Oversight, National

Security, and Rules, for a period to be subsequently determined by the

Speaker, in each case for consideration of such provisions as fall within

the jurisdiction of the committee concerned

A BILL

To amend title 49, United States Code, with respect to

the regulation of interstate transportation by common

carriers engaged in civil aviation, and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF SECTIONS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Air Traffic Management System Performance Improve6 ment Act of 1995’’.
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1 (b) TABLE OF SECTIONS.—The table of sections for

2 this bill is as follows:

Sec. 1. Short title; table of sections.

Sec. 2. Definitions.

Sec. 3. Effective date.

TITLE I—GENERAL PROVISIONS

Sec. 101. Findings.

Sec. 102. Purposes.

Sec. 103. Regulation of civilian air transportation and related services by the

Federal Aviation Administration and the Department of Transportation.

Sec. 104. Regulations.

Sec. 105. Personnel and services.

Sec. 106. Contracts.

Sec. 107. Budget.

Sec. 108. Facilities.

Sec. 109. Property.

Sec. 110. Select panel to review innovative funding mechanisms.

Sec. 111. Transfers of funds from other Federal agencies.

Sec. 112. Management Advisory Council.

Sec. 113. Aircraft engine standards.

TITLE II—FEDERAL AVIATION ADMINISTRATION STREAMLINING

PROGRAMS

Sec. 201. Innovative program for air traffic control modernization.

Sec. 202. Air traffic control modernization reviews.

Sec. 203. Innovative program for Federal Aviation Administration services.

TITLE III—SYSTEM TO FUND CERTAIN FEDERAL AVIATION

ADMINISTRATION FUNCTIONS

Sec. 301. Findings.

Sec. 302. Purposes.

Sec. 303. User fees for various Federal Aviation Administration services.

Sec. 304. User fees for air traffic control services.

Sec. 305. Administrative provisions.

Sec. 306. Increase in spending caps under trust fund.

Sec. 307. Advance appropriations for Airport and Airway Trust Fund Activities.

3 SEC. 2. DEFINITIONS.

4 For the purposes of this Act the following definitions

5 shall apply:

6 (1) ADMINISTRATION.—The term ‘‘Administra7 tion’’ means the Federal Aviation Administration.
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1 (2) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of the Federal

3 Aviation Administration.

4 (3) FEDERAL AGENCY.—The term ‘‘Federal

5 agency’’ means ‘‘agency’’ as defined in section

6 551(1) of title 5, United States Code.

7 (4) SECRETARY.—The term ‘‘Secretary’’ means

8 the Secretary of Transportation.

9 SEC. 3. EFFECTIVE DATE.

10 The provisions of this Act and the amendments made

11 by this Act shall take effect on the date that is 30 days

12 after the date of the enactment of this Act.

13 TITLE I—GENERAL PROVISIONS

14 SEC. 101. FINDINGS.

15 Congress finds that:

16 (1) In many respects the Federal Aviation Ad17 ministration is a unique agency, being one of the few

18 non-defense government agencies that operates 24

19 hours a day, 365 days of the year, while continuing

20 to rely on outdated technology to carry out its re21 sponsibilities for a state-of-the-art industry.

22 (2) The users of the air transportation system

23 now pay 70 percent of the budget of the Federal

24 Aviation Administration, with the remaining 30 per25 cent coming from the General Fund. The General
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1 Fund contribution over the years is one measure of

2 the benefit received by the general public, military,

3 and other users of Federal Aviation Administration’s

4 services.

5 (3) The Federal Aviation Administration must

6 become a more efficient, effective, and different or7 ganization to meet future challenges.

8 (4) The need to balance the Federal budget

9 means that the General Fund contribution cannot be

10 relied upon in the future to meet the Federal Avia11 tion Administration’s overall budget.

12 (5) Congress must keep its commitment to the

13 users of the national air transportation system by

14 seeking to spend all monies collected from them each

15 year and deposited into the Airport and Airways

16 Trust Fund.

17 (6) The aviation community and the employees

18 of the Federal Aviation Administration must come

19 together to improve the system. The Federal Avia20 tion Administration must continue to recognize who

21 its customers are and what their needs are, and to

22 design and redesign the system to make safety im23 provements and increase productivity.

24 (7) The Federal Aviation Administration

25 projects that commercial operations will increase by
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1 18 percent and passenger traffic by 35 percent by

2 the year 2002. Without effective airport expansion

3 and system modernization, these needs cannot be

4 met.

5 (8) By the year 2003, the Federal Aviation Ad6 ministration, to the extent possible, must be user

7 supported, and have the ability to make rational

8 short term and long term decisions.

9 (9) Absent significant and meaningful reform,

10 future challenges and needs cannot be met.

11 (10) The Federal Aviation Administration must

12 have a new way of doing business.

13 (11) There is widespread agreement within gov14 ernment and the aviation industry that reform of the

15 Federal Aviation Administration is essential to safe16 ly and efficiently accommodate the projected growth

17 of aviation within the next decade.

18 (12) Because the Federal Aviation Administra19 tion is a unique Federal entity in that it is a partici20 pant in the daily operations of an industry, and be21 cause the national air transportation system faces

22 significant problems without significant changes, the

23 Federal Aviation Administration must be enabled to

24 change the Federal procurement and personnel sys25 tems to ensure that the Federal Aviation Adminis-
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1 tration has the ability to keep pace with new tech2 nology and is able to match resources with the real

3 personnel needs of the Federal Aviation Administra4 tion.

5 (13) The existing budget system does not allow

6 for long-term planning or timely acquisition of tech7 nology by the Federal Aviation Administration.

8 (14) Without reforms in the areas of procure9 ment, personnel, funding, and governance, the Fed10 eral Aviation Administration will continue to experi11 ence delays and cost overruns in its major mod12 ernization programs and needed improvements in

13 the performance of the air traffic management sys14 tem will not occur.

15 (15) All reforms should be designed to help the

16 Federal Aviation Administration become more re17 sponsive to the needs of its customers.

18 SEC. 102. PURPOSES.

19 The purposes of this Act are—

20 (1) to ensure that final action shall be taken on

21 all notices of proposed rulemaking of the Federal

22 Aviation Administration within 18 months after the

23 date of their initiation;
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1 (2) to permit the Federal Aviation Administra2 tion, with Congressional review, to establish an inno3 vative program for procurement reform;

4 (3) to permit the Federal Aviation Administra5 tion, with Congressional review, to establish an inno6 vative program for personnel reform;

7 (4) to permit the Federal Aviation Administra8 tion, with Congressional review, to establish a pro9 gram of incentive-based fees for services to improve

10 air traffic management system performance and to

11 establish appropriate levels of cost accountability for

12 air traffic management services provided by the Fed13 eral Aviation Administration;

14 (5) to establish a more autonomous and ac15 countable Federal Aviation Administration within

16 the Department of Transportation; and

17 (6) to make the Federal Aviation Administra18 tion a more efficient and effective organization, able

19 to meet the needs of a dynamic, growing industry,

20 and to ensure the safety of the travelling public.
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1 SEC. 103. REGULATION OF CIVILIAN AIR TRANSPORTATION

2 AND RELATED SERVICES BY THE FEDERAL

3 AVIATION ADMINISTRATION AND DEPART4 MENT OF TRANSPORTATION.

5 (a) IN GENERAL.—Section 106 of title 49, United

6 States Code, is amended—

7 (1) by striking ‘‘The Administrator’’ in the fifth

8 sentence of subsection (b) and inserting ‘‘Except as

9 provided in subsection (f) of this section or in other

10 provisions of law, the Administrator’’; and

11 (2) by amending subsection (f) to read as

12 follows:

13 ‘‘(f) AUTHORITY OF THE SECRETARY AND THE AD14 MINISTRATOR.—

15 ‘‘(1) AUTHORITY OF THE SECRETARY.—Except

16 as provided in paragraph (2), the Secretary of

17 Transportation shall carry out the duties and powers

18 of the Administration.

19 ‘‘(2) AUTHORITY OF THE ADMINISTRATOR.—

20 The Administrator—

21 ‘‘(A) is the final authority for carrying out

22 all functions, powers, and duties of the Admin23 istration relating to—

24 ‘‘(i) the appointment and employment

25 of all officers and employees of the Admin-
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1 istration (other than Presidential and po2 litical appointees);

3 ‘‘(ii) the acquisition and maintenance

4 of property and equipment of the Adminis5 tration;

6 ‘‘(iii) except as otherwise provided in

7 section 104 of the Air Traffic Management

8 System Performance Improvement Act of

9 1995, the promulgation of regulations,

10 rules, orders, circulars, bulletins, and other

11 official publications of the Administration;

12 and

13 ‘‘(iv) any obligation imposed on the

14 Administrator, or power conferred on the

15 Administrator, by the Air Traffic Manage16 ment System Performance Improvement

17 Act of 1995 (or any amendment made by

18 that Act);

19 ‘‘(B) shall offer advice and counsel to the

20 President with respect to the appointment and

21 qualifications of any officer or employee of the

22 Administration to be appointed by the Presi23 dent or as a political appointee;

24 ‘‘(C) may delegate, and authorize succes25 sive redelegations of, to an officer or employee
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1 of the Administration any function, power, or

2 duty conferred upon the Administrator, unless

3 such delegation is prohibited by law; and

4 ‘‘(D) except as otherwise provided for in

5 this title, and notwithstanding any other provi6 sion of law to the contrary, shall not be re7 quired to coordinate, submit for approval or

8 concurrence, or seek the advice or views of the

9 Secretary or any other officer or employee of

10 the Department of Transportation on any mat11 ter with respect to which the Administrator is

12 the final authority.

13 ‘‘(3) DEFINITION OF POLITICAL APPOINTEE.—

14 For purposes of this subsection, the term ‘political

15 appointee’ means any individual who—

16 ‘‘(A) is employed in a position on the Ex17 ecutive Schedule under sections 5312 through

18 5316 of title 5, United States Code;

19 ‘‘(B) is a limited term appointee, limited

20 emergency appointee, or noncareer appointee in

21 the Senior Executive Service as defined under

22 section 3132(a) (5), (6), and (7) of title 5,

23 United States Code, respectively; or

24 ‘‘(C) is employed in a position in the exec25 utive branch of the Government of a confiden-
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1 tial or policy-determining character under

2 Schedule C of subpart C of part 213 of title 5

3 of the Code of Federal Regulations.’’.

4 (b) PRESERVATION OF EXISTING AUTHORITY.—

5 Nothing in this Act limits any authority granted to the

6 Administrator by statute or by delegation that was in ef7 fect on the day before the date of enactment of this Act.

8 SEC. 104. REGULATIONS.

9 (a) IN GENERAL.—In the performance of the func10 tions of the Administrator and the Administration, the

11 Administrator is authorized to issue, rescind, and revise

12 such regulations as are necessary to carry out those func13 tions. The issuance of such regulations shall be governed

14 by the provisions of chapter 5 of title 5, United States

15 Code. The Administrator shall act upon all petitions for

16 rulemaking no later than 6 months after the date such

17 petitions are filed by dismissing such petitions, by inform18 ing the petitioner of an intention to dismiss, or by issuing

19 a notice of proposed rulemaking or advanced notice of pro20 posed rulemaking. The Administrator shall issue a final

21 regulation, or take other final action, not later than 18

22 months after the date of publication in the Federal Reg23 ister of a notice of proposed rulemaking or, in the case

24 of an advanced notice of proposed rulemaking, if issued,

25 not later than 24 months after that date.
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1 (b) APPROVAL OF SECRETARY OF TRANSPOR2 TATION.—

3 (1) GENERAL RULE.—The Administrator may

4 not issue a proposed regulation or final regulation

5 that is likely to result in the expenditure by State,

6 local, and tribal governments in the aggregate, or by

7 the private sector, of $50,000,000 or more (adjusted

8 annually for inflation beginning with the year follow9 ing the date of enactment of this Act) in any 1 year,

10 or any regulation which is significant, unless the

11 Secretary of Transportation approves the issuance of

12 the regulation in advance. For purposes of this para13 graph, a regulation is significant if it is likely to—

14 (A) have an annual effect on the economy

15 of $100 million or more or adversely affect in

16 a material way the economy, a sector of the

17 economy, productivity, competition, jobs, the

18 environment, public health or safety, or State,

19 local, or tribal governments or communities;

20 (B) create a serious inconsistency or other21 wise interfere with an action taken or planned

22 by another agency;

23 (C) materially alter the budgetary impact

24 of entitlements, grants, user fees, or loan pro-
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1 grams or the rights and obligations of recipi2 ents thereof; or

3 (D) raise novel legal or policy issues aris4 ing out of legal mandates.

5 (2) EMERGENCY ACTION.—In an emergency,

6 the Administrator may issue a regulation described

7 in paragraph (1) without prior approval by the Sec8 retary, but any such emergency regulation is subject

9 to ratification by the Secretary after it is issued and

10 shall be rescinded by the Administrator within 5

11 days (excluding Saturdays, Sundays and legal public

12 holidays) after issuance if the Secretary fails to

13 ratify its issuance.

14 (3) Any regulation that does not meet the cri15 teria of paragraph (1), and any regulation or other

16 action that is a routine or frequent action or a pro17 cedural action, may be issued by the Administrator

18 without review or approval by the Secretary.

19 (4) The Administrator shall submit a copy of

20 any regulation requiring approval by the Secretary

21 under paragraph (1) to the Secretary, who shall ei22 ther approve it or return it to the Administrator

23 with comments within 45 days after receiving it.

24 (c) PERIODIC REVIEW.—
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1 (1) NEW REGULATIONS.—Beginning 3 years

2 after the date of enactment of this Act, the Adminis3 trator shall review any unusually burdensome regu4 lation issued by the Administrator after the date of

5 enactment of this Act not later than 3 years after

6 the effective date of the regulation to determine if

7 the cost assumptions were accurate, the benefit of

8 the regulations, and the need to continue such regu9 lations in force in their present form.

10 (2) EXISTING REGULATIONS.—The Adminis11 trator may identify unusually burdensome regula12 tions in force that were issued before the date of en13 actment of this Act for review, more than 3 years

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

15 criteria set forth in paragraph (1).

16 (3) UNUSUALLY BURDENSOME REGULATION.—

17 For purposes of this subsection, the term ‘‘unusually

18 burdensome regulation’’ means any regulation that

19 results in the annual expenditure by State, local, and

20 tribal governments in the aggregate, or by the pri21 vate sector, of $25,000,000 or more (adjusted annu22 ally for inflation beginning with the year following

23 the date of enactment of this Act) in any year.
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1 (4) USE OF ADVISORY COMMITTEE.—The Ad2 ministrator may, in the Administrator’s discretion,

3 use an advisory committee to perform the review.

4 SEC. 105. PERSONNEL AND SERVICES.

5 (a) OFFICERS AND EMPLOYEES.—In the perform6 ance of the functions of the Administrator, the Adminis7 trator is authorized to appoint, transfer, and fix the com8 pensation of such officers and employees, including attor9 neys, as may be necessary to carry out the functions of

10 the Administrator and the Administration. Except as oth11 erwise provided by law, such officers and employees shall

12 be appointed in accordance with the civil service laws and

13 compensated in accordance with title 5, United States

14 Code. In fixing compensation and benefits of officers and

15 employees, the Administrator shall not engage in any type

16 of bargaining nor shall he be bound by any requirement

17 to establish such compensation or benefits at particular

18 levels.

19 (b) EXPERTS AND CONSULTANTS.—The Adminis20 trator is authorized to obtain the services of experts and

21 consultants in accordance with section 3109 of title 5,

22 United States Code.

23 (c) TRANSPORTATION AND PER DIEM EXPENSES.—

24 The Administrator is authorized to pay transportation ex-
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1 penses, and per diem in lieu of subsistence expenses, in

2 accordance with chapter 57 of title 5, United States Code.

3 (d) USE OF PERSONNEL FROM OTHER AGENCIES.—

4 The Administrator is authorized to utilize the services of

5 personnel of any other Federal agency.

6 (e) VOLUNTARY SERVICES.—

7 (1) IN GENERAL.—In exercising the authority

8 to accept gifts and voluntary services under section

9 326 of title 49, United States Code, and without re10 gard to section 1342 of title 31 of such Code, the

11 Administrator may not accept voluntary and uncom12 pensated services if such services are used to dis13 place Federal employees employed on a full-time,

14 part-time, or seasonal basis.

15 (2) EXPENSES.—The Administrator is author16 ized to provide for incidental expenses, including

17 transportation, lodging, and subsistence for volun18 teers who provide voluntary services under this sub19 section.

20 (3) ADMINISTRATIVE CONCERNS.—An individ21 ual who provides voluntary services under this sub22 section shall not be considered a Federal employee

23 for any purpose other than for purposes of chapter

24 81 of title 5, United States Code, relating to com-
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1 pensation for work injuries, and chapter 171 of title

2 28, United States Code, relating to tort claims.

3 SEC. 106. CONTRACTS.

4 The Administrator is authorized to enter into and

5 perform such contracts, leases, cooperative agreements, or

6 other transactions as may be necessary to carry out the

7 functions of the Administrator and the Administration.

8 The Administrator may enter into such contracts, leases,

9 cooperative agreements, and other transactions with any

10 Federal agency or any instrumentality of the United

11 States, any State, territory, or possession, or political sub12 division thereof, any other governmental entity, or any

13 person, firm, association, corporation, or educational insti14 tution, on such terms and conditions as the Administrator

15 may consider appropriate.

16 SEC. 107. BUDGET.

17 (a) IN GENERAL.—Section 48109 of title 49, United

18 States Code, is amended to read as follows:

19 ‘‘§ 48109. Budget information and legislative rec20 ommendations and comments

21 ‘‘(a) PREPARATION.—Beginning with the budget for

22 first fiscal year beginning after the first fiscal year in

23 which the Federal Aviation Administration is funded en24 tirely by user fees, the Administrator shall prepare a budg25 et for the Administration for each fiscal year.
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1 ‘‘(b) SUBMISSION OF BUDGET TO DOT.—At the

2 same time that agencies of the Department of Transpor3 tation having jurisdiction over other modes of transpor4 tation are required to submit their budgets to the Sec5 retary of Transportation, the Administrator shall submit

6 to the Secretary the budget prepared by the Adminis7 trator. The budget submission shall include a statement

8 of income and expenses and analysis of the surplus or defi9 cit in the Airport and Airway Trust Fund established

10 under section 9502 of the Internal Revenue Code of 1986,

11 and any other such supplementary information as is nec12 essary or desirable to make known about the financial con13 dition and operations of the Administrator. The annual

14 budget shall be included in the budget submitted by the

15 President pursuant to chapter 11 of title 31, United

16 States Code. The Secretary shall review the budget and

17 may recommend to the Administrator modifications in the

18 budget necessary to ensure that the budget is consistent

19 with the need of the national transportation system. The

20 Administrator, at its discretion, may modify the budget

21 to adopt any recommendation made by the Secretary.

22 ‘‘(c) SUBMISSION OF BUDGET TO CONGRESS.—

23 ‘‘(1) IN GENERAL.—When the Administrator

24 submits to the President or the Director of the Of25 fice of Management and Budget any budget infor-
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1 mation, legislative recommendation, or comment on

2 legislation about amounts authorized in section

3 48101 or 48102, the Administrator concurrently

4 shall submit a copy of the information, recommenda5 tion, or comment to the Speaker of the House of

6 Representatives, the Committees on Transportation

7 and Infrastructure and Appropriations of the House

8 of Representatives, the President of the Senate, and

9 the Committees on Commerce, Science, and Trans10 portation and Appropriations of the Senate.

11 ‘‘(2) SPECIAL RULE WITH RESPECT TO ANNUAL

12 BUDGETS.—The annual budget of the Administra13 tion submitted to Congress shall include—

14 ‘‘(A) any modifications made by the Ad15 ministrator under subsection (b) with respect to

16 the budget; and

17 ‘‘(B) if the Administrator does not adopt a

18 recommendation made by the Secretary under

19 subsection (b), a description of the rec20 ommendation and the reasons for not adopting

21 the recommendation.

22 ‘‘(d) COST REDUCTION AND EFFICIENCY REPORT

23 REQUIRED.—Whenever the Administrator submits a re24 port, request, or proposal that contains an increase in ei25 ther the budget of the Administration or any of the fees
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1 imposed by the Administration, the Administrator shall

2 submit, as a part of that report, request, or proposal—

3 ‘‘(1) an explanation that states specifically the

4 need for the increase; and

5 ‘‘(2) a statement of any steps taken by the Ad6 ministration to reduce costs and improve efficiency

7 in order to avoid or limit the increase.’’.

8 (b) CONFORMING AMENDMENT.—The analysis for

9 chapter 481 of such title is amended by striking the item

10 relating to section 48109 and inserting the following:

‘‘48109. Budget information and legislative recommendations and comments.’’.

11 SEC. 108. FACILITIES.

12 With the consent of appropriate officials, the Admin13 istrator may, with or without reimbursement, use or ac14 cept the services, equipment, personnel, and facilities of

15 any other Federal agency and any other public or private

16 agency. The Administrator may also cooperate with appro17 priate officials of other public and private agencies and

18 instrumentalities concerning the use of services, equip19 ment, personnel, and facilities. The head of each Federal

20 agency shall cooperate with the Administrator in making

21 the services, equipment, personnel, and facilities of the

22 Federal agency available to the Administrator. The head

23 of a Federal agency is authorized, notwithstanding any

24 other provision of law, to transfer to or to receive from

25 the Administration, without reimbursement, supplies and
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1 equipment other than administrative supplies or equip2 ment.

3 SEC. 109. PROPERTY.

4 (a) ACQUISITION.—The Administrator is author5 ized—

6 (1) to acquire (by purchase, lease, condemna7 tion, or otherwise), construct, improve, repair, oper8 ate, and maintain—

9 (A) air traffic control facilities and equip10 ment;

11 (B) research and testing sites and facili12 ties; and

13 (C) such other real and personal property

14 (including office space and patents), or any in15 terest therein, within and outside the continen16 tal United States as the Administrator consid17 ers necessary;

18 (2) to lease to others such real and personal

19 property; and

20 (3) to provide by contract or otherwise for eat21 ing facilities and other necessary facilities for the

22 welfare of employees of the Administration at the in23 stallations of the Administrator, and to purchase

24 and maintain equipment for these facilities.
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1 (b) TITLE.—Title to any property or interest therein

2 acquired pursuant to this section shall be held by the Gov3 ernment of the United States.

4 SEC. 110. SELECT PANEL TO REVIEW INNOVATIVE FUNDING

5 MECHANISMS.

6 (a) ESTABLISHMENT.—The Administrator shall es7 tablish a select panel to review and report to Congress re8 garding a limited innovative program to fund specific fa9 cilities and equipment projects, and to provide limited ad10 ditional funding alternatives for airport capacity develop11 ment. The mechanisms to be reviewed shall include loan

12 guarantees, financial partnerships with for-profit private

13 sector entities, government sponsored enterprises, and re14 volving loan funds.

15 (b) APPOINTMENT OF MEMBERS.—The members of

16 any panel established under this section shall consist of

17 appropriate Federal Government officials and representa18 tives of the aviation industry, Administration employees,

19 the financial community, and State and local governments.

20 (c) TRAVEL AND PER DIEM.—Each member of the

21 panel established under this section shall be paid actual

22 travel expenses, and per diem in lieu of subsistence ex23 penses when away from his or her usual place of residence.

24 (d) REPORT.—Not later than 6 months after the date

25 of the appointment of the last member to the panel under
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1 subsection (b), the panel shall submit to the Congress and

2 the Administration a report on the results of the review

3 conducted under this section.

4 (e) FEDERAL ADVISORY COMMITTEE ACT NOT TO

5 APPLY.—The Federal Advisory Committee Act (5 U.S.C.

6 App.) does not apply to the panel established under this

7 section.

8 (f) TERMINATION.—The panel established under this

9 section shall terminate on the date that is 30 days after

10 the date of submission of the report under subsection (d).

11 SEC. 111. TRANSFERS OF FUNDS FROM OTHER FEDERAL

12 AGENCIES.

13 The Administrator is authorized to accept transfers

14 of unobligated balances and unexpended balances of funds

15 appropriated to other Federal agencies to carry out func16 tions transferred by this Act to the Administrator or func17 tions pursuant to law to the Administrator on or after the

18 date of the enactment of this Act.

19 SEC. 112. MANAGEMENT ADVISORY COUNCIL.

20 (a) ESTABLISHMENT.—Within 3 months of the date

21 of enactment of this Act, the Administrator shall estab22 lished an advisory council which shall be known as the

23 Federal Aviation Management Advisory Council (in this

24 section referred to as the ‘‘Council’’). With respect to Fed25 eral Aviation Administration management, policy, spend-
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1 ing, and regulatory matters affecting the aviation indus2 try, the Council may submit comments, recommended

3 modifications, and dissenting views to the Administrator.

4 The Administrator shall include in any submission to Con5 gress, the Secretary, or the general public, and in any sub6 mission for publication in the Federal Register, a descrip7 tion of the comments, recommended modifications, and

8 dissenting views received from the Council, together with

9 the reasons for any differences between the views of the

10 Council and the views or actions of the Administrator.

11 (b) MEMBERSHIP.—The Council shall consist of 15

12 members, who shall consist of—

13 (1) a designee of the Secretary of Transpor14 tation;

15 (2) a designee of the Secretary of Defense; and

16 (3) 13 members appointed by the Adminis17 trator.

18 (c) QUALIFICATIONS.—Members appointed to the

19 Council under this section shall be selected from among

20 individuals who are experts in disciplines relevant to the

21 aviation industry and who are able collectively to represent

22 a balanced view of the issues important to air carriers,

23 general aviation, business aviation, airports, commercial

24 space transportation, industry and Administration em25 ployees, aircraft manufacturers, and public users.
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1 (d) FUNCTIONS.—

2 (1) IN GENERAL.—The Council shall provide

3 advice and counsel to the Administrator on issues

4 which affect or are affected by the operations of the

5 Administrator. The Council shall function as an

6 oversight resource for management, policy, spending,

7 and regulatory matters under the jurisdiction of the

8 Administration.

9 (2) PANELS AND WORKING GROUPS.—The

10 chairman of the Council shall establish a panel or

11 working group, from among the members of the

12 Council, on the development of fees for various Fed13 eral Aviation Administration services under section

14 303 and for air traffic control services under section

15 304, and may establish such additional panels and

16 working groups, consisting of members of the Coun17 cil, as may be necessary to carry out the functions

18 of the Council.

19 (3) MEETINGS.—The Council shall meet on a

20 regular and periodic basis or at the call of the chair21 man or of the Administrator.

22 (4) ACCESS TO DOCUMENTS AND STAFF.—The

23 Administration may give the Council appropriate ac24 cess to relevant documents and personnel of the Ad25 ministration.
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1 (e) FEDERAL ADVISORY COMMITTEE ACT NOT TO

2 APPLY.—The Federal Advisory Committee Act (5 U.S.C.

3 App.) does not apply to the Council.

4 (f) ADMINISTRATIVE MATTERS.—

5 (1) TERMS OF MEMBERS.—

6 (A) 3-YEAR TERMS.—Except as provided

7 in subparagraph (B), members of the Council

8 appointed by the Administrator under sub9 section (b)(3) shall be appointed for a term of

10 3 years.

11 (B) INITIAL APPOINTEES.—Of the mem12 bers first appointed by the Administrator—

13 (i) 4 shall be appointed for terms of

14 1 year;

15 (ii) 5 shall be appointed for terms of

16 2 years; and

17 (iii) 4 shall be appointed for terms of

18 3 years.

19 (C) FILLING UNEXPIRED TERM.—An indi20 vidual chosen to fill a vacancy shall be ap21 pointed for the unexpired term of the member

22 replaced.

23 (D) EXPIRATION OF TERMS.—A member

24 whose term expires shall continue to serve until
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1 the date on which the member’s successor takes

2 office.

3 (2) CHAIRMAN; VICE CHAIRMAN.—The Council

4 shall elect a chair and a vice chair from among its

5 members, each of whom shall serve for a term of 1

6 year. The vice chair shall perform the duties of the

7 chairman in the absence of the chairman.

8 (3) TRAVEL AND PER DIEM.—Each member of

9 the Council shall be paid actual travel expenses, and

10 per diem in lieu of subsistence expenses when away

11 from his or her usual place of residence, in accord12 ance with section 5703 of title 5, United States

13 Code.

14 (4) DETAIL OF PERSONNEL FROM THE ADMIN15 ISTRATION.—The Administrator shall make available

16 to the Council such staff, information, and adminis17 trative services and assistance as may reasonably be

18 required to enable the Council to carry out its re19 sponsibilities under this section.

20 SEC. 113. AIRCRAFT ENGINE STANDARDS.

21 Subsection (a)(1) of section 44715 of title 49, United

22 States Code, is amended to read as follows:

23 ‘‘(a) STANDARDS AND REGULATIONS.—(1) To relieve

24 and protect the public health and welfare from aircraft

25 noise, sonic boom, and aircraft engine emissions, the Ad-
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1 ministrator of the Federal Aviation Administration, as he

2 deems necessary, shall prescribe—

3 ‘‘(A) standards to measure aircraft noise and

4 sonic boom;

5 ‘‘(B) regulations to control and abate aircraft

6 noise and sonic boom; and

7 ‘‘(C) emission standards applicable to the emis8 sion of any air pollutant from any class or classes

9 of aircraft engines which, in the judgment of the Ad10 ministrator, causes, or contributes to, air pollution

11 which may reasonably be anticipated to endanger

12 public health or welfare.’’.

13 TITLE II—FEDERAL AVIATION ADMINIS14 TRATION STREAMLINING PROGRAMS

15 SEC. 201. INNOVATIVE PROGRAM FOR AIR TRAFFIC CON16 TROL MODERNIZATION.

17 (a) INNOVATIVE PROGRAM.—The Administrator shall

18 develop and implement an innovative program under

19 which an acquisition management system is used to pro20 cure goods and services by the Administration.

21 (b) EXEMPTION FROM PROCUREMENT LAWS.—

22 (1) IN GENERAL.—Subject to paragraph (2), in

23 carrying out the acquisition management system

24 used under the innovative program, the Adminis25 trator may waive all or any part of—
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1 (A) title III of the Federal Property and

2 Administrative Services Act of 1949 (41 U.S.C.

3 5, and 251 through 266);

4 (B) the Office of Federal Procurement

5 Policy Act (41 U.S.C. 401 et seq.);

6 (C) sections 8, 9, and 15 of the Small

7 Business Act (15 U.S.C. 637, 638, and 644),

8 but the Administrator shall provide resources

9 for the development and implementation of a

10 program that presents the maximum opportuni11 ties, to the extent possible, for small business

12 concerns and small business concerns owned

13 and controlled by socially and economically dis14 advantaged individuals to participate in the per15 formance of contracts awarded by the Federal

16 Aviation Administration; and

17 (D) any provision of law that, pursuant to

18 section 34 of the Office of Federal Procurement

19 Policy Act (41 U.S.C. 430), is listed in the Fed20 eral Acquisition Regulation as being inapplica21 ble—

22 (i) to contracts for the procurement of

23 commercial items; or
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1 (ii) in the case of a subcontract under

2 the innovative program, to subcontracts for

3 the procurement of commercial items;

4 (E) the Federal Acquisition Streamlining

5 Act of 1994 (Public Law 103–355);

6 (F) the Service Contract Act;

7 (G) subchapter V of chapter 35 of title 31,

8 United States Code, relating to the procure9 ment protest system;

10 (H) the Brooks Automatic Data Process11 ing Act (section 111 of the Federal Property

12 and Administrative Services Act of 1949; 40

13 U.S.C. 759);

14 (I) the Brooks Architect-Engineer Act (40

15 U.S.C. 541–544); and

16 (J) the Federal Acquisition Regulation and

17 any law that is not listed in subparagraphs (A)

18 through (I) providing authority to promulgate

19 regulations in the Federal Acquisition Regula20 tion.

21 (2) The Department of Defense shall have the

22 same exemptions from acquisition laws as are waived

23 by the Administrator under paragraph (1) when en24 gaged in joint actions to improve or replenish the

25 national air traffic control system. The Administra-
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1 tion may acquire real property, goods, and services

2 through the Department of Defense, or other appro3 priate agencies, but is bound by the acquisition laws

4 and regulations governing those cases.

5 (3) EFFECTIVE DATE.—The Administrator may

6 not waive the laws referred to in paragraph (1) until

7 the expiration of the 30-day period referred to in

8 subsection (d)(2).

9 (c) DEVELOPMENT OF ACQUISITION MANAGEMENT

10 SYSTEM.—

11 (1) IN GENERAL.—Not later than 180 days

12 after the effective date of this Act, the Adminis13 trator, in consultation with such governmental and

14 nongovernmental experts in acquisition management

15 systems as the Administration may employ, shall de16 velop an acquisition management system for the Ad17 ministration. Notwithstanding any other provision of

18 law to the contrary, the Administrator may, for pur19 poses of this section, retain such experts under a

20 contract awarded on a basis other than a competi21 tive basis and without regard to any such provisions

22 requiring competitive bidding or precluding sole

23 source contract authority. In developing the system,

24 the Administrator may utilize the services of experts

25 and consultants under section 3109 of title 5,
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1 United States Code, without regard to the limitation

2 imposed by the last sentence of section 3109(b) of

3 such title, and may contract on a sole source basis,

4 notwithstanding any other provision of law to the

5 contrary.

6 (2) REQUIREMENTS.—The acquisition manage7 ment system to be developed by the Administrator

8 under paragraph (1) shall be—

9 (A) designed to ensure that new equipment

10 is installed and certified as quickly as possible

11 without sacrificing safety, principles of fairness,

12 and protection against waste, fraud, and abuse;

13 and

14 (B) designed to ensure the best practicable

15 acquisitions in terms of best value.

16 (d) NOTICE TO CONGRESS.—

17 (1) IN GENERAL.—Upon completion of the de18 velopment of the acquisition management system,

19 the Administrator shall submit a comprehensive plan

20 describing the acquisition management system to the

21 Congress. The Administrator shall also transmit

22 with the plan a copy of all suggestions and com23 ments provided to the Administration by the Depart24 ment of Transportation, and by outside experts (if

25 any), on the acquisition management system.
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1 (2) DATE OF IMPLEMENTATION.—The Admin2 istrator may begin to implement the acquisition

3 management system only after the expiration of the

4 30-day period that begins on the date on which the

5 plan is submitted to the Congress under paragraph

6 (1).

7 (e) EXPERT EVALUATION.—Three years after the ac8 quisition management system is implemented, the Admin9 istration shall employ outside experts to provide an inde10 pendent evaluation of the effectiveness of the system with11 in 3 months. The Administrator shall transmit a copy of

12 the evaluation to the Committee on Commerce, Science,

13 and Transportation of the Senate, and the Committee on

14 Transportation and Infrastructure of the House of Rep15 resentatives.

16 (f) MODIFICATIONS TO SYSTEM.—The Administrator

17 may periodically make modifications to the acquisition

18 management system. Any such modifications shall be sub19 mitted to the Congress under subsection (d) in the same

20 manner as the acquisition management system plan and

21 may not be implemented until after the expiration of the

22 30-day period beginning on the date of submission.
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1 SEC. 202. AIR TRAFFIC CONTROL MODERNIZATION RE2 VIEWS.

3 (a) REQUIRED TERMINATIONS OF ACQUISITIONS.—

4 The Administrator shall terminate any program initiated

5 after the date of enactment of this Act and funded under

6 the Facilities and Equipment account that—

7 (1) is more than 50 percent over the cost goal

8 established for the program;

9 (2) fails to achieve at least 50 percent of the

10 performance goals established for the program; or

11 (3) is more than 50 percent behind schedule as

12 determined in accordance with the schedule goal es13 tablished for the program.

14 (b) AUTHORIZED TERMINATIONS OF ACQUISI15 TIONS.—The Administrator shall consider terminating,

16 under the authority of subsection (a), any substantial ac17 quisition that—

18 (1) is more than 10 percent over the cost goal

19 established for the program;

20 (2) fails to achieve at least 90 percent of the

21 performance goals established for the program; or

22 (3) is more than 10 percent behind schedule as

23 determined in accordance with the schedule goal es24 tablished for the program.

25 (c) EXCEPTION AND REPORT.—
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1 (1) CONTINUANCE OF PROGRAM, ETC.—Not2 withstanding subsection (a), the Administrator may

3 continue an acquisitions program required to be ter4 minated under subsection (a) if the Administrator

5 determines that termination would be inconsistent

6 with the development or operation of the national air

7 transportation system in a safe and efficient man8 ner.

9 (2) REPORT.—If the Administrator makes a de10 termination under paragraph (1), the Administrator

11 shall transmit a copy of the determination, together

12 with a statement of the basis for the determination,

13 to the Committees on Appropriations of the Senate

14 and the House of Representatives, the Committee on

15 Commerce, Science, and Transportation of the Sen16 ate, and the Committee on Transportation and In17 frastructure of the House of Representatives.

18 SEC. 203. INNOVATIVE PROGRAM FOR FEDERAL AVIATION

19 ADMINISTRATION SERVICES.

20 (a) INNOVATIVE PROGRAM.—The Administrator shall

21 develop and implement an innovative program under

22 which a personnel management system is used for the

23 management, compensation, and advancement of Adminis24 tration employees.
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1 (b) EXEMPTION FROM CERTAIN PROVISIONS OF

2 TITLE 5, UNITED STATES CODE.—

3 (1) IN GENERAL.—Except as otherwise pro4 vided in this section, under the innovative program,

5 the Administration shall be exempt from parts II

6 and III of title 5, United States Code.

7 (2) EFFECTIVE DATE.—The exemption pro8 vided by paragraph (1) shall not take effect until the

9 expiration of the 30-day period specified in sub10 section (d)(2).

11 (c) DEVELOPMENT OF PERSONNEL MANAGEMENT

12 SYSTEM.—

13 (1) IN GENERAL.—Not later than 180 days

14 after the date of enactment of this Act, the Adminis15 trator, in consultation with Administration employ16 ees, including designated bargaining representatives,

17 and such governmental and nongovernmental experts

18 in personnel management systems as the Adminis19 trator may employ, shall develop a personnel man20 agement system for the Administration. Notwith21 standing any other provision of law to the contrary,

22 the Administrator may, for purposes of this section,

23 retain such experts under a contract awarded on a

24 basis other than a competitive basis and without re25 gard to any such provisions requiring competitive
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1 bidding or precluding sole source contract authority.

2 In developing the system, the Administrator may

3 utilize the services of experts and consultants under

4 section 3109 of title 5, United States Code, without

5 regard to the limitation imposed by the last sentence

6 of section 3109(b) of such title.

7 (2) GOAL.—The goal of the personnel manage8 ment system to be developed by the Administrator

9 under paragraph (1) is to provide, consistent with

10 the requirements of this section, the Administration

11 with the ability—

12 (A) to hire, promote, and fire employees as

13 in the private sector;

14 (B) to establish a pay structure as needed

15 to conduct the business of the Administration

16 in an efficient and effective manner within

17 available resources;

18 (C) to provide salaries designed to attract

19 the best qualified employees within available re20 sources;

21 (D) to staff facilities that are difficult to

22 staff;

23 (E) to move personnel to those facilities

24 where they are most needed; and
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1 (F) to continue to provide an appropriate

2 framework for labor-management relations con3 cerning terms and conditions of employment.

4 (d) NOTICE TO CONGRESS.—

5 (1) IN GENERAL.—Upon development of the

6 personnel management system under this section,

7 the Administrator shall submit a comprehensive plan

8 describing the personnel management system to the

9 Congress. The Administrator shall also transmit

10 with the plan a copy of all suggestions and com11 ments provided to the Administration by the Depart12 ment of Transportation, and by outside experts (if

13 any), on the personnel management system.

14 (2) IMPLEMENTATION.—The Administration

15 may begin to implement the personnel management

16 system only after the expiration of the 30-day period

17 that begins on the date the plan is submitted to the

18 Congress.

19 (e) EXPERT EVALUATION.—Three years after the

20 personnel management system is implemented, the Admin21 istration shall employ outside experts to provide an inde22 pendent evaluation of the effectiveness of the system with23 in 3 months. For this purpose, the Administrator may uti24 lize the services of experts and consultants under section

25 3109 of title 5, United States Code, without regard to the
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1 limitation imposed by the last sentence of section 3109(b)

2 of such title, and may contract on a sole source basis, not3 withstanding any other provision of law to the contrary.

4 (f) EMPLOYEE RIGHTS AND BENEFITS.—The enact5 ment of this section shall not result in the exemption of

6 employees of the Administration from any of the following

7 provisions of title 5, United States Code:

8 (1) Section 2302(b) (relating to whistleblower

9 protection).

10 (2) Sections 3308–3320 (relating to veterans’

11 preference)

12 (3) Section 7116(b)(7) (relating to prohibition

13 of the right to strike).

14 (4) Section 7204 (relating to antidiscrimina15 tion).

16 (5) Chapter 63 (relating to leave).

17 (6) Chapter 71 (relating to labor-management

18 relations).

19 (7) Chapter 73 (relating to suitability, security,

20 and conduct).

21 (8) Chapter 81 (relating to compensation for

22 work injuries).

23 (9) Chapter 83 (relating to retirement).

24 (10) Chapter 84 (relating to the Federal Em25 ployees’ Retirement System).
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1 (11) Chapter 85 (relating to unemployment

2 compensation).

3 (12) Chapter 87 (relating to life insurance).

4 (13) Chapter 89 (relating to health insurance).

5 (14) Subchapter II of chapter 53 (with respect

6 to the pay of the Administrator).

7 (g) PAY RESTRICTION.—No officer or employee of

8 the Administration may receive an annual rate of basic

9 pay in excess of the annual rate of basic pay payable to

10 the Administrator.

11 (h) ETHICS.—The Administration shall be subject to

12 Executive Order 12674 and regulations and opinions pro13 mulgated by the Office of Government Ethics, including

14 those set forth in section 2635 of title 5 of the Code of

15 Federal Regulations.

16 (i) EMPLOYEE PROTECTIONS.—Employment rights,

17 wages, and benefits of employees of the Administration

18 shall not be adversely affected by reason of the enactment

19 of this section, except for unacceptable performance or by

20 reason of a reduction in force or reorganization, during

21 the period commencing on the effective date of this Act

22 and ending on the date determined under subsection

23 (b)(2).

24 (j) LABOR-MANAGEMENT AGREEMENTS.—Except as

25 otherwise provided by this Act, all labor-management
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1 agreements covering employees of the Administration that

2 are in effect on the effective date of this Act shall remain

3 in effect until their normal expiration date, unless the Ad4 ministrator and the exclusive bargaining representative

5 agree to the contrary.

6 (k) MODIFICATIONS TO SYSTEM.—The Administrator

7 may periodically make modifications to the personnel man8 agement system. Any such modifications shall be submit9 ted to the Congress under subsection (d) in the same man10 ner as the personnel management system plan and may

11 not be implemented until after the expiration of the 30-

12 day period beginning on the date of submission.

13 TITLE III—SYSTEM TO FUND CERTAIN

14 FEDERAL AVIATION ADMINISTRATION

15 FUNCTIONS

16 SEC. 301. FINDINGS.

17 The Congress finds the following:

18 (1) The Federal Aviation Administration is rec19 ognized throughout the world as a leader in aviation

20 safety.

21 (2) The Administration certifies aircraft, en22 gines, propellers and other manufactured parts.

23 (3) The Administration certifies more than 650

24 training schools for pilots and non-pilots, more than
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1 4,858 repair stations, and more than 193 mainte2 nance schools.

3 (4) The Administration certifies pilot examin4 ers, who are then qualified to determine if a person

5 has the skills necessary to become a pilot.

6 (5) The Administration fully certifies more than

7 6,000 medical examiners, each of whom is then fully

8 qualified to medically certify the qualifications of pi9 lots and non-pilots.

10 (6) The Administration fully certifies more than

11 470 airports, and provides a limited certification for

12 another 205 airports. Other airports in the United

13 States are also reviewed by the Administration.

14 (7) The Administration each year performs

15 more than 355,000 inspections.

16 (8) The Administration issues more than

17 655,000 pilots licenses and more than 560,000 non18 pilot licenses (e.g., mechanics).

19 (9) The Administration’s certification means

20 that the product meets the highest standards of

21 safety and reliability.

22 (10) The Administration’s certification means

23 aviation-related equipment and services meet the

24 highest standards throughout the world.
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1 (11) The Administration’s certification is a val2 uable element for any company to sell aviation-relat3 ed products throughout the world.

4 (12) The Administration certification con5 stitutes a valuable license, franchise or privilege, and

6 confers many benefits on the holders.

7 (13) The Administration also is a major pur8 chaser of computers, radars and other systems need9 ed to run the air traffic control system. The Admin10 istration’s design, acceptance, commissioning, or cer11 tification of such equipment enables the private sec12 tor to market those products around the world, and

13 as such confers a benefit on the manufacturer.

14 (14) The Administration provides extensive

15 services to public use aircraft, including the military.

16 Federal Aviation Administration cost allocation

17 studies attribute about 15 percent of the cost of the

18 airway system to public use aircraft. The estimated

19 cost of these air traffic services in 1993 was $1.1

20 billion. Most of these services were provided to the

21 military. The annual appropriations from the Gen22 eral Fund to the Administration have been consid23 ered, in part, payment for the cost of such services,

24 but are expected to decline in future years.
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1 (15) The Administration must be able to de2 sign, to the maximum extent possible, a perform3 ance-based system to recover its interest and cost in

4 its certification and purchasing systems.

5 SEC. 302. PURPOSES.

6 The purposes of this title are—

7 (1) to provide a financial structure for the Fed8 eral Aviation Administration so that it will be able

9 to support the future growth in the national aviation

10 and airport system;

11 (2) to establish a program of incentive-based

12 fees for services to improve air traffic management

13 system performance and to establish appropriate lev14 els of cost accountability for air traffic management

15 services provided by the Federal Aviation Adminis16 tration;

17 (3) to ensure that the funding obtained by user

18 fees set by this title will be dedicated solely for the

19 use of the Federal Aviation Administration;

20 (4) to authorize the Federal Aviation Adminis21 tration to recover the costs of its services from those

22 who benefit from the national aviation system and

23 the services provided by the Federal Aviation Ad24 ministration;
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1 (5) to allow the Federal Aviation Administra2 tion to develop a fee system based on the cost or

3 value of the services provided;

4 (6) to demonstrate to each segment of the avia5 tion industry the benefits of a cost-based or value6 based user fee system;

7 (7) to replace the existing user charges with a

8 new fee system as a means of achieving a more effi9 cient and effective Federal Aviation Administration

10 for the aviation transportation industry; and

11 (8) to have the Federal Aviation Administration

12 develop fee systems that do not directly impinge

13 upon the non-business jet and non-commercial as14 pects of the general aviation community.

15 SEC. 303. USER FEES FOR VARIOUS FEDERAL AVIATION AD16 MINISTRATION SERVICES.

17 (a) IN GENERAL.—Within 6 months of the date of

18 enactment of this Act, the Administration shall submit to

19 the Congress a performance-based fee system, to the maxi20 mum extent possible, for—

21 (1) services other than air traffic control serv22 ices, including safety, certification, security, training,

23 inspection, and other activities;

24 (2) services (other than air traffic control serv25 ices) provided to a foreign government; and
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1 (3) air traffic control services for—

2 (A) flights over the United States or its

3 territories by air carriers that neither arrive at

4 nor depart from a United States airport (other

5 than such flights by foreign government aircraft

6 engaged on official business); and

7 (B) business jets.

8 (b) CONSIDERATIONS.—To the extent possible, the

9 Administrator, in developing a fee system, shall consider—

10 (1) the impact on segments of the aviation in11 dustry; and

12 (2) the fair value, or cost, of the service pro13 vided by the Federal Aviation Administration.

14 (c) CONSULTATION WITH AFFECTED PARTIES.—In

15 developing proposals under this section, the Administrator

16 shall consult with representatives of the commercial avia17 tion industry, the general aviation sector, airports, and

18 other affected parties.

19 (d) USE OF EXPERTS AND CONSULTANTS.—In devel20 oping the system, the Administrator may consult with

21 such nongovernmental experts as the Administrator may

22 employ and the Administrator may utilize the services of

23 experts and consultants under section 3109 of title 5,

24 United States Code, without regard to the limitation im25 posed by the last sentence of section 3109(b) of such title,
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1 and may contract on a sole source basis, notwithstanding

2 any other provision of law to the contrary. Notwithstand3 ing any other provision of law to the contrary, the Admin4 istrator may retain such experts under a contract awarded

5 on a basis other than a competitive basis and without re6 gard to any such provisions requiring competitive bidding

7 or precluding sole source contract authority. The Adminis8 trator shall cause a copy of the proposed fee system to

9 be printed in the Federal Register upon its submission to

10 the Congress.

11 (e) FEES EFFECTIVE 45 DAYS AFTER SUBMIS12 SION.—

13 (1) IN GENERAL.—Unless disapproved by the

14 Congress under section 305(b), any fees proposed by

15 the Administrator under this section shall take effect

16 45 days after the date on which the proposal is sub17 mitted to the Congress, or on such later date as the

18 Administrator may propose. If a fee proposal is sub19 mitted to the Congress less than 45 days before the

20 date on which the Congress adjourns sine die, or less

21 than 45 days before any 30-day period in which nei22 ther House of the Congress is in session, then the

23 fees so proposed shall not take effect unless resub24 mitted under this section. Any proposal resubmitted

25 shall be considered a new submission for applying
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1 the first sentence of this paragraph to the resubmit2 ted proposal.

3 (2) IMPLEMENTATION DELAYED IF TRUST

4 FUND AMOUNTS ADEQUATE.—Beginning with fiscal

5 year 1998, no fee proposed by the Administrator

6 may be imposed under this section unless the sum

7 of the outlays from the Airport and Airway Trust

8 Fund exceeds the receipts of the Fund for the pre9 ceding fiscal year.

10 (f) AGREEMENT WITH DEPARTMENT OF DE11 FENSE.—Within 6 months after the date of enactment of

12 this Act, the Administration shall enter into an agreement

13 with the Department of Defense under which the Adminis14 tration will be reimbursed for the net cost of air traffic

15 control services provided to the Department of Defense.

16 (g) TERMINATION.—Fees imposed under this section

17 shall terminate 3 years after going into effect, but any

18 amounts collected before the fees terminate shall remain

19 available until expended.

20 (h) ADDITIONAL SYSTEM PROPOSALS.—Not less

21 than 6 months before the date on which any fee system

22 imposed under this section terminates, the Administrator

23 shall submit to the Congress a proposal for a fee system

24 to replace the terminating system. Any replacement fee

25 system proposed under this subsection shall be developed
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1 in consultation with the representatives described in sub2 section (c). The Administrator shall submit to the Con3 gress at the same time as the proposal is submitted, a

4 review of the effectiveness of the standards established for

5 the fee system the proposed fee system is intended to re6 place, conducted by independent experts. The proposed re7 placement fee system shall take effect upon the termi8 nation of the fee system it replaces unless disapproved by

9 the Congress under subsection (d), and shall terminate 3

10 years after going into effect.

11 (i) REPEAL.—Sections 45301, 45302, and 70118 of

12 title 49, United States Code, are repealed.

13 SEC. 304. USER FEES FOR AIR TRAFFIC CONTROL SERV14 ICES.

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

16 date of enactment of this Act, the Administrator shall sub17 mit to the Congress a proposed fee system for air traffic

18 control services. In developing the proposal, the Adminis19 trator may utilize the services of experts and consultants

20 under section 3109 of title 5, United States Code, without

21 regard to the limitation imposed by the last sentence of

22 section 3109(b) of such title, and may contract on a sole

23 source basis, notwithstanding any other provision of law

24 to the contrary, to develop air traffic control user fees

25 based on improved system performance.
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1 (b) LIMITATIONS.—

2 (1) TRUST FUND PAYORS.—Fees may not be

3 imposed under this section on any segment of the

4 aviation industry subject to trust fund taxes until

5 the rate of trust fund taxes paid by that segment is

6 reduced below the rate at which such taxes were as7 sessed during fiscal year 1995.

8 (2) OTHER USERS.—Notwithstanding para9 graph (1), fees imposed under this section may be

10 imposed on any user of air traffic control services

11 not subject to trust fund taxes, so long as any such

12 fees are consistent with international agreements.

13 (3) LIMITATION ON AMOUNT.—The aggregate

14 amount of fees imposed under this section in any

15 year on any segment of the aviation industry may

16 not exceed 110 percent of the projected difference

17 between (1) the estimated aggregate amount that

18 would have been collected in such year from that

19 segment at the rates of Trust Fund taxes in effect

20 in 1995 and (2) the estimated aggregate amount

21 that would be collected in such year from that seg22 ment at the Trust Fund tax rates reduced below the

23 levels in effect in 1995.

24 (c) FEES EFFECTIVE 45 DAYS AFTER APPROVAL.—

25 Unless disapproved by the Congress under section 305(b),
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1 fees proposed by the Administrator under this section take

2 effect 45 days after the date on which the proposal is sub3 mitted to the Congress, or on such later date as the Ad4 ministrator may propose.

5 (d) DEFINITIONS.—WHEN USED IN THIS SECTION:

6 (1) SEGMENT.—The term ‘segment’ refers to—

7 (A) commercial airlines;

8 (B) commercial cargo air carriers;

9 (C) business jets;

10 (D) general aviation; and

11 (E) public use.

12 (2) TRUST FUND TAXES.—The term ‘trust fund

13 taxes’ means Federal taxes the receipts from which

14 are credited in whole or in part to the Airport and

15 Airway Trust Fund.

16 (e) TERMINATION.—Fees imposed under this section

17 shall terminate 3 years after going into effect, but any

18 amounts collected before the fees terminate shall remain

19 available until expended.

20 (f) ADDITIONAL SYSTEM PROPOSALS.—Not less than

21 6 months before the date on which any fee system imposed

22 under this section terminates, the Administrator shall sub23 mit to the Congress a proposal for a fee system to replace

24 the terminating system. Any replacement fee system pro25 posed under this subsection shall be developed in consulta-
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1 tion with the Management Advisory Council established

2 under section 112. The Administrator shall submit to the

3 Congress at the same time as the proposal is submitted,

4 a review of the effectiveness of the standards established

5 for the fee system the proposed fee system is intended to

6 replace, conducted by independent experts. Unless dis7 approved by the Congress under section 305(b), the pro8 posed replacement fee system shall take effect upon the

9 termination of the fee system it replaces, and shall termi10 nate 3 years after going into effect.

11 SEC. 305. ADMINISTRATIVE PROVISIONS.

12 (a) IN GENERAL.—

13 (1) FEES PAYABLE TO ADMINISTRATOR.—All

14 fees imposed under this title for services performed,

15 or materials furnished, by the Administration are

16 payable to the Administrator.

17 (2) REFUNDS.—The Administrator may refund

18 any fee paid by mistake or any amount paid in ex19 cess of that required.

20 (3) RECEIPTS CREDITED TO ACCOUNT.—Not21 withstanding section 3302 of title 31, United States

22 Code, all fees collected by the Administration, except

23 insurance premiums and other fees charged for the

24 provision of insurance and deposited in the Aviation

25 Insurance Revolving Fund and interest earned on in-
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1 vestments of such Fund, (whether imposed under

2 this section or not)—

3 (A) shall be credited to a separate account

4 established in the Treasury and made available

5 for Federal Aviation Administration activities

6 as offsetting collections;

7 (B) shall be available only to the extent

8 that the expenditures for the Administration ex9 ceed the amounts made available for such ex10 penditures from the Airport and Airways Trust

11 Fund; and

12 (C) shall remain available until expended.

13 (4) INVESTMENT OF ACCOUNT BALANCE.—Any

14 amount in the separate account established under

15 paragraph (3)(A) of this section that is not needed

16 for immediate disbursement shall be invested by the

17 Secretary of the Treasury only in interest-bearing

18 obligations of the United States, by purchasing such

19 obligations (A) if at original issue, as the issue price,

20 or (B) if outstanding, at the market price. The in21 terest on, and proceeds from the sale or redemption

22 of, any such obligation shall be credited to such sep23 arate account.

24 (5) ANNUAL BUDGET REPORT BY ADMINIS25 TRATOR.—The Administrator shall, on the same day
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1 each year as the President submits the annual budg2 et to the Congress, provide to the Committee on

3 Commerce, Science, and Transportation of the Sen4 ate and the Committee on Transportation and Infra5 structure of the House of Representatives—

6 (A) a list of fee collections by the Adminis7 tration during the preceding fiscal year;

8 (B) a list of activities by the Administra9 tion during the preceding fiscal year that were

10 supported by fee expenditures and appropria11 tions;

12 (C) budget plans for significant programs,

13 projects, and activities of the Administration,

14 including out-year funding estimates;

15 (D) any proposed disposition of surplus

16 fees by the Administration; and

17 (E) such other information as those com18 mittees consider necessary.

19 (b) CONGRESSIONAL PROCEDURE.—

20 (1) IN GENERAL.—This subsection is enacted

21 by the Congress as an exercise of the rulemaking

22 power of the Senate and the House of Representa23 tives, respectively, and as such these provisions are

24 deemed to be a part of the rules of each House of

25 the Congress, respectively, applicable only to the
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1 procedure to be followed in that House for resolu2 tions described in this subsection. These provisions

3 supersede other rules of each House of the Congress

4 only to the extent that they are inconsistent with

5 those other rules, and they are enacted with full rec6 ognition of the constitutional right of each House to

7 change them, to the extent that they relate to the

8 procedure of that House, in the same manner and

9 to the same extent as any other rule of that House.

10 (2) RESOLUTION.—For purposes of this sub11 section, the term ‘‘resolution’’ means a joint resolu12 tion relating to the disapproval of a fee proposal

13 submitted by the Administrator under section 303 or

14 section 304, the matter after the resolving clause of

15 which is as follows: ‘‘That the Congress disapproves

16 the fee proposal submitted by the Administrator of

17 the Federal Aviation Administration on —— and

18 identified as ——.’’, the first blank space being

19 filled with the date on which the proposal was sub20 mitted and the second being filled with the title or

21 other description of the proposal. The term does not

22 include a resolution that relates to more than one

23 proposal.

24 (3) REFERRAL.—Upon introduction, a resolu25 tion shall be referred to the Committee on Com-
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1 merce, Science, and Transportation of the Senate or

2 the Committee on Transportation and Infrastructure

3 of the House of Representatives.

4 (4) MOTION TO DISCHARGE.—If the committee

5 to which a resolution has been referred has not re6 ported it at the end of 20 calendar days after its in7 troduction, it is in order to move to discharge the

8 committee from further consideration of that resolu9 tion.

10 (5) RULES FOR MOTION TO DISCHARGE.—A

11 motion to discharge may be made only by an individ12 ual favoring the resolution, is highly privileged (ex13 cept that it may not be made after the committee

14 has reported a resolution with respect to the same

15 proposal), and debate thereon shall be limited to not

16 more than 1 hour, with the time divided equally be17 tween those favoring and those opposing the motion.

18 An amendment to the motion is not in order, and it

19 is not in order to move to reconsider the vote by

20 which the motion is agreed to or disagreed to. Mo21 tions to postpone shall be decided without debate.

22 (6) EFFECT OF MOTION.—If the motion to dis23 charge is agreed to or disagreed to, the motion may

24 not be renewed, nor may another motion to dis-
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1 charge the committee be made with respect to any

2 other resolution with respect to the same proposal.

3 (7) SENATE PROCEDURE.—

4 (A) MOTION TO PROCEED.—When the

5 committee of the Senate has reported, or has

6 been discharged from further consideration of,

7 a resolution, it is at any time thereafter in

8 order (even though a previous motion to the

9 same effect has been disagreed to) to move to

10 proceed to the consideration of the resolution.

11 The motion is highly privileged and is not de12 batable. An amendment to the motion is not in

13 order, and it is not in order to move to recon14 sider the vote by which the motion is agreed to

15 or disagreed to.

16 (B) LIMITATION ON DEBATE.—Debate in

17 the Senate on the resolution shall be limited to

18 not more than 10 hours, which shall be divided

19 equally between those favoring and those oppos20 ing the resolution. A motion further to limit de21 bate is not debatable. An amendment to, or mo22 tion to recommit, the resolution is not in order,

23 and it is not in order to move to reconsider the

24 vote by which the resolution is agreed to or dis25 agreed to.
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1 (C) NO DEBATE ON CERTAIN MOTIONS.—

2 In the Senate, motions to postpone made with

3 respect to the consideration of a resolution and

4 motions to proceed to the consideration of other

5 business shall be decided without debate.

6 (D) APPEALS.—Appeals from the decisions

7 of the Chair relating to the application of the

8 rules of the Senate to the procedure relating to

9 a resolution shall be decided without debate.

10 (8) EFFECT OF ADOPTION OF RESOLUTION BY

11 OTHER HOUSE.—If, before the passage by one

12 House of the Congress of a resolution of that House,

13 it receives from the other House a resolution, then

14 the following procedures apply:

15 (A) The resolution of the other House shall

16 not be referred to a committee and may not be

17 considered in the House receiving it, except in

18 the case of final passage as provided in sub19 paragraph (B)(i).

20 (B) With respect to the resolution de21 scribed in subparagraph (A) of the House re22 ceiving it—

23 (i) the procedure in that House shall

24 be the same as if no joint resolution had

25 been received from the other House; but
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1 (ii) the vote on final passage shall be

2 on the resolution of the other House.

3 SEC. 306. INCREASE IN SPENDING CAPS UNDER TRUST

4 FUND.

5 Section 48104(c) of title 49, United States Code, is

6 amended by adding at the end thereof the following:

7 ‘‘This subsection shall be applied for fiscal years 1998 and

8 1999 by substituting ‘zero percent’ for ‘50 percent’ in

9 paragraph (1), and by substituting ‘100 percent’ for ‘70

10 percent’. The preceding sentence shall not apply for any

11 fiscal year for which fees imposed under section 303 of

12 the Air Traffic Management Performance Improvement

13 Act of 1995 are not in effect.’’.

14 SEC. 307. ADVANCE APPROPRIATIONS FOR AIRPORT AND

15 AIRWAY TRUST FUND ACTIVITIES.

16 (a) MULTIYEAR AUTHORIZATIONS.—Beginning with

17 fiscal year 1997, any authorization of appropriations for

18 an activity for which amounts are to be appropriated from

19 the Airport and Airway Trust Fund shall provide funds

20 for a period of not less than 3 fiscal years unless the activ21 ity for which appropriations are authorized is to be con22 cluded before the end of that period.

23 (b) MULTIYEAR APPROPRIATIONS.—Beginning with

24 fiscal year 1997, amounts appropriated from the Airport
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1 and Airway Trust Fund shall be appropriated for periods

2 of 3 fiscal years rather than annually.

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