II

104TH CONGRESS

1ST SESSION S. 928

To enhance the safety of air travel through a more effective Federal Aviation

Administration, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 15 (legislative day, JUNE 5), 1995

Mr. INHOFE (for himself, Mr. BURNS, and Mrs. KASSEBAUM) introduced the

following bill; which was read twice and referred to the Committee on

Commerce, Science, and Transportation

A BILL

To enhance the safety of air travel through a more effective

Federal Aviation Administration, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Federal Aviation

5 Administration Reform Act of 1995’’.

6 SEC. 2. FINDINGS.

7 Congress finds that—

8 (1) there is widespread agreement within gov9 ernment and the aviation industry that reform of the

10 Federal Aviation Administration is necessary to
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1 safely and efficiently accommodate the projected

2 growth of aviation within the next decade;

3 (2) reestablishing the Federal Aviation Admin4 istration as an independent agency will ensure that

5 the agency is able to manage and regulate the safety

6 of the air traffic control system without second7 guessing or interference by politically appointed De8 partment of Transportation officials;

9 (3) the Federal procurement system interferes

10 with the ability of the Federal Aviation Administra11 tion to keep pace with new technology;

12 (4) the Federal personnel system is inflexible

13 and unable to match resources with the real person14 nel needs of the Federal Aviation Administration;

15 (5) the existing budget system does not allow

16 for long-term planning or timely acquisition of tech17 nology by the Federal Aviation Administration;

18 (6) without reforms in the areas of procure19 ment, personnel, and financing, the Federal Aviation

20 Administration will continue to experience delays

21 and cost overruns in its major airspace moderniza22 tion programs; and

23 (7) other internal management reforms will

24 help the Federal Aviation Administration become
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1 more responsive to the needs of its customers, who

2 are the users of the air traffic control system.

3 SEC. 3. PURPOSES.

4 The purposes of this Act are to—

5 (1) establish the Federal Aviation Administra6 tion as an independent agency;

7 (2) provide for the appointment by the Presi8 dent of an Administrator of the Federal Aviation

9 Administration with a fixed term in office of 7 years;

10 (3) appoint a select panel to review and report

11 to the Congress regarding innovative financing

12 mechanisms for ensuring adequate funding for exist13 ing and future aviation infrastructure needs;

14 (4) establish a management advisory committee

15 in the Federal Aviation Administration to advise the

16 Administrator on management, policy, spending, and

17 regulatory matters under the jurisdiction of the

18 agency;

19 (5) mandate that final action shall be taken on

20 all rulemakings of the Federal Aviation Administra21 tion within 18 months after the date of their initi22 ation;

23 (6) establish a pilot program for procurement

24 reform under which the Federal Aviation Adminis-
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1 tration is exempt from certain laws governing Fed2 eral acquisition practices; and

3 (7) establish a pilot program for personnel re4 form under which the Federal Aviation Administra5 tion is exempt from the civil service provisions of

6 title 5, United States Code, except for provisions re7 lating to employee benefits.

8 SEC. 4. DEFINITIONS.

9 For the purposes of this Act the following definitions

10 shall apply:

11 (1) ADMINISTRATION.—The term ‘‘Administra12 tion’’ means the Federal Aviation Administration es13 tablished under section 5.

14 (2) ADMINISTRATOR.—The term ‘‘Adminis15 trator’’ means the Administrator of the Federal

16 Aviation Administration appointed under section

17 6(a).

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

19 agency’’ has the meaning provided the term ‘‘agen20 cy’’ in section 551(1) of title 5, United States Code.

21 SEC. 5. ESTABLISHMENT.

22 There is established as an independent establishment

23 in the executive branch (as defined under section 104 of

24 title 5, United States Code), the Federal Aviation Admin25 istration. The Administration shall succeed the Federal
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1 Aviation Administration of the Department of Transpor2 tation in existence on the effective date of this Act.

3 SEC. 6. OFFICERS.

4 (a) ADMINISTRATOR.—The Administration shall be

5 administered by an Administrator, who shall be appointed

6 by the President to serve for a 7-year term of office, by

7 and with the advice and consent of the Senate. The Ad8 ministrator shall carry out all functions transferred to the

9 Administrator by this Act and shall have authority and

10 control over all personnel, programs, and activities of the

11 Administration. The Administrator may be removed by the

12 President for neglect of duty or malfeasance in office.

13 (b) DEPUTY ADMINISTRATOR.—There shall be in the

14 Administration a Deputy Administrator, who shall be ap15 pointed by the President, by and with the advice and con16 sent of the Senate. The Deputy Administrator shall per17 form such functions, duties, and powers as the Adminis18 trator shall prescribe. The Deputy Administrator shall act

19 for and perform the functions of the Administrator when

20 the Administrator is absent or unable to serve, or when

21 the office of the Administrator is vacant.

22 (c) ASSISTANT ADMINISTRATORS.—The Adminis23 trator shall appoint not more than 8 Assistant Adminis24 trators who shall perform such functions as the Adminis25 trator shall prescribe. The Administrator shall designate
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1 the order in which the Assistant Administrators shall act

2 for and perform the functions of the Administrator when

3 the Administrator, or in the Administrator’s place the

4 Deputy Administrator, is absent or unable to serve, or

5 when the offices of the Administrator and the Deputy Ad6 ministrator are vacant.

7 (d) CHIEF COUNSEL.—There shall be in the Adminis8 tration a Chief Counsel, who shall be appointed by the

9 Administrator. The Chief Counsel shall be the chief legal

10 officer for all legal matters arising from the conduct of

11 the functions of the Administration.

12 (e) INSPECTOR GENERAL.—There shall be in the Ad13 ministration an Inspector General appointed in accordance

14 with the Inspector General Act of 1978 (5 U.S.C. App.).

15 The Inspector General shall be compensated at the rate

16 prescribed for level IV of the Executive Schedule under

17 section 5315 of title 5, United States Code.

18 (f) CHIEF FINANCIAL OFFICER.—

19 (1) IN GENERAL.—There shall be in the Admin20 istration a Chief Financial Officer who shall be ap21 pointed in accordance with section 901 of title 31,

22 United States Code. The Chief Financial Officer

23 shall perform all functions prescribed by the Admin24 istrator.
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1 (2) CONFORMING AMENDMENT.—Section

2 901(b)(1) of title 31, United States Code, is amend3 ed by adding at the end the following:

4 ‘‘(Q) The Federal Aviation Administra5 tion.’’.

6 (g) LIMITATIONS.—Each of the officers referred to

7 in this section shall be a citizen of the United States. The

8 Administrator shall be a civilian.

9 SEC. 7. FUNCTIONS OF ADMINISTRATOR.

10 (a) IN GENERAL.—The Administrator shall be re11 sponsible for the exercise of all powers and the discharge

12 of all duties of the Administration.

13 (b) GOVERNANCE OF STATUTES.—In carrying out

14 the functions of the Administration under this Act, the

15 Administrator shall be governed by all applicable statutes,

16 including the policy standards set forth in subtitle VII of

17 title 49, United States Code.

18 (c) LIMITATION ON STATUTORY CONSTRUCTION.—

19 Nothing in this Act shall be construed to limit in any man20 ner the authority of the Administrator to promote safety

21 by establishing and administering accident prevention pro22 grams, encouraging airport development, educating the

23 public on the importance of aeronautics, and encouraging

24 the adoption of worldwide safety standards.
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1 (d) FINALITY OF DECISIONS; APPEALS.—Decisions

2 of the Administrator made pursuant to the exercise of the

3 functions enumerated in subtitle VII of title 49, United

4 States Code, shall be final administrative decisions. Any

5 appeal as authorized by law on the date of enactment of

6 this Act shall be taken directly to the National Transpor7 tation Safety Board or to any court of competent jurisdic8 tion, as appropriate.

9 (e) CONFORMING AMENDMENTS.—Chapter 1 of title

10 49, United States Code, is amended by striking section

11 106 and inserting the following new section:

12 ‘‘§ 106. Federal Aviation Administration

13 ‘‘(a) IN GENERAL.—The Federal Aviation Adminis14 tration established under the Federal Aviation Adminis15 tration Reform Act of 1995 shall be administered in ac16 cordance with such Act. The Administrator shall have the

17 duties and powers specified in subsection (b) and any ad18 ditional duties and powers prescribed in the Federal Avia19 tion Administration Reform Act of 1995.

20 ‘‘(b) DUTIES AND POWERS OF ADMINISTRATOR.—(1)

21 Except as provided in paragraph (2), the Administrator

22 shall carry out—

23 ‘‘(A) duties and powers of the Secretary of

24 Transportation transferred to the Administrator

25 under the Federal Aviation Administration Reform
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1 Act of 1995 related to aviation safety (except those

2 related to transportation, packaging, marking, or de3 scription of hazardous material) and stated in sec4 tions 308(b), 1132 (c) and (d), 40101(c), 40103(b),

5 40106(a), 40108, 40109(b), 40113 (a), (c), and (d),

6 40114(a), 40119, 44501 (a) and (c), 44502 (a)(1),

7 (b), and (c), 44504, 44505, 44507, 44508, 44511

8 through 44513, 44701 through 44716, 44718(c),

9 44721(a), 44901, 44902, 44903 (a) through (c) and

10 (e), 44906, 44912, 44935 through 44937, and

11 44938 (a) and (b), chapter 451, sections 45302,

12 45303, 46104, 46301 (d) and (h)(2), 46303(c),

13 46304 through 46308, 46310, 46311, and 46313

14 through 46316, chapter 465, and sections 47504(b)

15 (related to flight procedures), 47508(a), and 48107;

16 and

17 ‘‘(B) additional duties and powers prescribed by

18 the Secretary of Transportation before the date of

19 enactment of the Federal Aviation Administration

20 Reform Act of 1995.

21 ‘‘(2) In carrying out sections 40119, 44901, 44903

22 (a) through (c) and (e), 44906, 44912, and sections 44935

23 through 44937, 44938 (a) and (b), and 48107 of this title,

24 paragraph (1)(A) does not apply to duties and powers
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1 vested in the Director of Intelligence and Security by sec2 tion 44931.

3 ‘‘(c) EFFECT OF DUTIES AND POWERS.—Section

4 40101(d) applies to duties and powers specified in sub5 section (a)(1). A decision of the Administrator in carrying

6 out those duties or powers is administratively final.

7 ‘‘(d) ESTABLISHMENT OF INSTITUTE.—There is es8 tablished within the Federal Aviation Administration an

9 institute to conduct civil aeromedical research under sec10 tion 44507 of this title. Such institute shall be known as

11 the ‘Civil Aeromedical Institute’. Research conducted by

12 the institute should take appropriate advantage of capa13 bilities of other government agencies, universities, or the

14 private sector.

15 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS FOR OP16 ERATIONS.—There are authorized to be appropriated to

17 the Administration $4,810,000,000 for fiscal year 1996.’’.

18 SEC. 8. TRANSFERS AND INCIDENTAL PROVISIONS.

19 (a) TRANSFER OF FUNCTIONS, PERSONNEL

20 RECORDS, AND ACCOUNTS.—There are transferred to the

21 Administration—

22 (1) all functions vested by law in the Federal

23 Aviation Administration of the Department of

24 Transportation or the Administrator of the Federal

25 Aviation Administration, and all functions vested by
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1 law in the Secretary of Transportation or the De2 partment of Transportation that are administered

3 through the Federal Aviation Administration;

4 (2) the functions of the Department of Trans5 portation or the Federal Aviation Administration of

6 the Department of Transportation that are nec7 essary and appropriate for the performance of the

8 functions transferred by paragraph (1); and

9 (3) so much of the personnel, property, records,

10 funds, accounts, and unexpended balances of appro11 priations, allocations, and other moneys of the De12 partment of Transportation as are employed, used,

13 held, available, or to be made available in connection

14 with the functions transferred by paragraphs (1)

15 and (2).

16 (b) DELEGATION AND EXERCISE OF FUNCTIONS.—

17 The Administrator shall exercise all functions transferred

18 by subsection (a) and any other function vested in the

19 Federal Aviation Administration or the Administrator of

20 the Federal Aviation Administration by any law enacted

21 on or after the date of the enactment of this Act. The

22 Administrator may from time to time make such provi23 sions as the Administrator considers appropriate authoriz24 ing the performance by any other officer, employee, or of25 fice of the Administration of such functions.
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1 SEC. 9. REGULATIONS.

2 In the performance of the functions of the Adminis3 trator and the Administration, the Administrator is au4 thorized to issue, rescind, and revise such regulations as

5 are necessary to carry out those functions. The issuance

6 of such regulations shall be governed by the provisions of

7 chapter 5 of title 5, United States Code. The Adminis8 trator shall issue a final regulation not later than 18

9 months after the date of initiation of any rulemaking pro10 ceeding by the Administration or notify the Congress in

11 writing of the reasons for not issuing such regulation.

12 SEC. 10. DELEGATION.

13 Except as otherwise provided in this Act, the Admin14 istrator may delegate any function to such officers and

15 employees of the Administration as the Administrator may

16 designate and may authorize such successive redelegations

17 of such functions in the Administration as may be nec18 essary or appropriate. No delegation of functions by the

19 Administrator under this section or under any other provi20 sion of this Act shall relieve the Administrator of respon21 sibility for the administration of those functions.

22 SEC. 11. PERSONNEL AND SERVICES.

23 (a) OFFICERS AND EMPLOYEES.—In the perform24 ance of the functions of the Administrator and in addition

25 to the officers provided for by section 6, the Administrator

26 is authorized to appoint, transfer, and fix the compensa-
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1 tion of such officers and employees, including attorneys,

2 as may be necessary to carry out the functions of the Ad3 ministrator and the Administration. Except as otherwise

4 provided by law, such officers and employees shall be ap5 pointed in accordance with the civil service laws and com6 pensated in accordance with title 5, United States Code.

7 (b) EXPERTS AND CONSULTANTS.—The Adminis8 trator is authorized to obtain the services of experts and

9 consultants in accordance with section 3109 of title 5,

10 United States Code.

11 (c) TRANSPORTATION AND PER DIEM EXPENSES.—

12 The Administrator is authorized to pay transportation ex13 penses, and per diem in lieu of subsistence expenses, in

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

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

16 The Administrator is authorized to utilize, on a reimburs17 able basis, the services of personnel of any other Federal

18 agency.

19 (e) VOLUNTARY SERVICES.—

20 (1) IN GENERAL.—

21 (A) CONDITIONS FOR ACCEPTANCE OF

22 CERTAIN VOLUNTARY SERVICES.—The Adminis23 trator may accept voluntary and uncompensated

24 services without regard to the provisions of sec25 tion 1342 of title 31, United States Code, if
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1 such services are not be used to displace Fed2 eral employees employed on a full-time, part3 time, or seasonal basis.

4 (B) OTHER VOLUNTEER SERVICE.—The

5 Administrator is authorized to accept volunteer

6 service in accordance with the provisions of sec7 tion 3111 of title 5, United States Code.

8 (2) EXPENSES.—The Administrator is author9 ized to provide for incidental expenses, including

10 transportation, lodging, and subsistence for volun11 teers who provide voluntary services under this sub12 section.

13 (3) ADMINISTRATIVE CONCERNS.—An individ14 ual who provides voluntary services under this sub15 section shall not be considered a Federal employee

16 for any purpose other than for purposes of chapter

17 81 of title 5, United States Code, relating to com18 pensation for work injuries, and chapter 171 of title

19 28, United States Code, relating to tort claims.

20 SEC. 12. CONTRACTS.

21 The Administrator is authorized to enter into and

22 perform such contracts, leases, cooperative agreements, or

23 other transactions as may be necessary to carry out the

24 functions of the Administrator and the Administration.

25 The Administrator may enter into such contracts, leases,
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1 agreements, and transactions with any Federal agency or

2 any instrumentality of the United States, any State, terri3 tory, or possession, or political subdivision thereof, or any

4 person, firm, association, corporation, or educational insti5 tution, on such terms and conditions as the Administrator

6 may consider appropriate. The authority of the Adminis7 trator to enter into contracts and leases under this section

8 shall be to such extent or in such amounts as are provided

9 in appropriation Acts.

10 SEC. 13. BUDGET.

11 Each year the Administrator shall prepare a budget

12 for the Administration, which shall contain estimates of

13 the financial condition and operations of the Administra14 tion for the then current and ensuing 4 fiscal years, and

15 the actual condition and results of operations for the last

16 completed fiscal year. That budget shall be submitted to

17 the Office of Management and Budget, under such rules

18 and regulations as the President may establish concerning

19 the date of submission, the form and content, the classi20 fication of data, and the manner in which the reports in21 cluded in the budget shall be prepared and presented. The

22 budget submission shall include a statement of income and

23 expenses and analysis of the surplus or deficit in the Air24 port and Airway Trust Fund established under section

25 9502 of the Internal Revenue Code of 1986, and any other
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1 such supplementary information as is necessary or desir2 able to make known about the financial condition and op3 erations of the Administration. The annual budget shall

4 be included in the budget submitted by the President pur5 suant to chapter 11 of title 31, United States Code.

6 SEC. 14. USE OF FACILITIES.

7 With the consent of appropriate officials, the Admin8 istrator may, with or without reimbursement, use the serv9 ices, equipment, personnel, and facilities of any other Fed10 eral agency and any other public or private agency. The

11 Administrator may also cooperate with appropriate offi12 cials of other public and private agencies and instrumen13 talities concerning the use of services, equipment, person14 nel, and facilities. The head of each Federal agency shall

15 cooperate with the Administrator in making the services,

16 equipment, personnel, and facilities of the Federal agency

17 available to the Administrator. The head of a Federal

18 agency is authorized, notwithstanding any other provision

19 of law, to transfer to or to receive from the Administra20 tion, without reimbursement, supplies and equipment

21 other than administrative supplies or equipment.

22 SEC. 15. ACQUISITION AND MAINTENANCE OF PROPERTY.

23 (a) ACQUISITION.—The Administrator is author24 ized—
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1 (1) to acquire (by purchase, lease, condemna2 tion, or otherwise), construct, improve, repair, oper3 ate, and maintain—

4 (A) air traffic control facilities and equip5 ment;

6 (B) research and testing sites and facili7 ties; and

8 (C) such other real and personal property

9 (including office space and patents), or any in10 terest therein, within and outside the continen11 tal United States as the Administrator consid12 ers necessary;

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

14 property; and

15 (3) to provide by contract or otherwise for eat16 ing facilities and other necessary facilities for the

17 welfare of employees of the Administration at the in18 stallations of the Administrator, and to purchase

19 and maintain equipment for these facilities.

20 (b) TITLE.—Title to any property or interest therein

21 acquired pursuant to this section shall be held by the Gov22 ernment of the United States.

23 SEC. 16. MANAGEMENT ADVISORY COMMITTEE.

24 (a) ESTABLISHMENT.—There is established an advi25 sory committee which shall be known as the Federal Avia-
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1 tion Management Advisory Committee (in this section re2 ferred to as the ‘‘Management Advisory Committee’’).

3 (b) MEMBERSHIP.—The Management Advisory Com4 mittee shall consist of 11 members, who shall consist of—

5 (1) the Secretary of Transportation or the des6 ignee of the Secretary (who shall serve as Chair7 man);

8 (2) the Secretary of Defense or the designee of

9 the Secretary;

10 (3) 5 members appointed by the President;

11 (4) 2 members, 1 appointed by the majority

12 leader of the Senate and the other appointed by the

13 minority leader of the Senate; and

14 (5) 2 members, 1 appointed by the Speaker of

15 the House of Representatives and the other ap16 pointed by the minority leader of the House of Rep17 resentatives.

18 (c) FUNCTIONS.—The Management Advisory Com19 mittee shall provide advice and counsel to the Adminis20 trator on issues which affect or are affected by the oper21 ations of the Administrator. The Management Advisory

22 Committee shall hold quarterly meetings. The Administra23 tion shall give the Management Advisory Committee ac24 cess to internal documents and personnel of the Adminis25 tration. The Management Advisory Committee shall func-
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1 tion as an oversight resource for management, policy,

2 spending, and regulatory matters under the jurisdiction

3 of the Administration.

4 (d) QUALIFICATIONS.—Members appointed to the

5 Management Advisory Committee under this section shall

6 be selected from among individuals who are experts in dis7 ciplines relevant to the aviation industry and who are able

8 collectively to represent a balanced view of the issues im9 portant to airlines, general aviation, business aviation, air10 ports, shippers, industry and Administration employees,

11 aircraft manufacturers, and the traveling public.

12 (e) TERMS OF MEMBERS.—

13 (1) IN GENERAL.—

14 (A) PRESIDENTIAL APPOINTEES.—

15 (i) IN GENERAL.—Except as provided

16 in clause (ii), members of the Management

17 Advisory Committee appointed by the

18 President under subsection (b)(3) shall be

19 appointed for a term of 3 years.

20 (ii) INITIAL PRESIDENTIAL AP21 POINTEES.—The members first appointed

22 by the President under subsection (b)(3)

23 shall be appointed for terms of 1, 2, and

24 3 years (as determined by the President)
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1 so that their terms as members are stag2 gered.

3 (B) OTHER APPOINTEES.—Members of the

4 Management Advisory Committee appointed

5 under subsections (b)(4) and (b)(5) shall be ap6 pointed for a term of 2 years.

7 (2) VACANCIES.—A vacancy on the Manage8 ment Advisory Committee shall be filled in the man9 ner in which the original appointment was made and

10 shall be subject to any conditions that applied with

11 respect to the original appointment.

12 (3) FILLING UNEXPIRED TERM.—An individual

13 chosen to fill a vacancy shall be appointed for the

14 unexpired term of the member replaced.

15 (4) EXPIRATION OF TERMS.—The term of a

16 member shall not expire before the date on which

17 the member’s successor takes office.

18 (f) TRAVEL AND PER DIEM.—Each member of the

19 Management Advisory Committee shall be paid actual

20 travel expenses, and per diem in lieu of subsistence ex21 penses when away from his or her usual place of residence,

22 in accordance with section 5703 of title 5, United States

23 Code.

24 (g) DETAIL OF PERSONNEL FROM THE ADMINISTRA25 TION.—The Administrator shall make available to the
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1 Management Advisory Committee such staff, information,

2 and administrative services and assistance as may reason3 ably be required to enable the Management Advisory Com4 mittee to carry out its responsibilities under this section.

5 SEC. 17. SELECT PANEL TO REVIEW INNOVATIVE FUNDING

6 MECHANISMS.

7 (a) ESTABLISHMENT.—The Administrator shall es8 tablish a select panel to review and report to Congress re9 garding innovative financing mechanisms for ensuring

10 adequate funding for then existing and future aviation in11 frastructure needs. The financing mechanisms to be re12 viewed shall include loan guarantees, financial partner13 ships with for-profit private sector entities, multiyear ap14 propriations, revolving loan funds, mandatory spending

15 authority, authority to borrow, and restructured grant

16 programs.

17 (b) APPOINTMENT OF MEMBERS.—Not later than 90

18 days after the date of the appointment of the Adminis19 trator, the Administrator shall appoint members to the

20 panel established under this section. Those members shall

21 consist of appropriate Federal Government officials and

22 representatives of the aviation industry, Administration

23 employees, the financial community, and State and local

24 governments.
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1 (c) TRAVEL AND PER DIEM.—Each member of the

2 panel established under this section shall be paid actual

3 travel expenses, and per diem in lieu of subsistence ex4 penses when away from his or her usual place of residence,

5 in accordance with section 5703 of title 5, United States

6 Code.

7 (d) REPORT.—Not later than 1 year after the date

8 of the appointment of the last member to the panel under

9 subsection (b), the panel shall submit to the Congress and

10 the Administration a report on the results of the review

11 conducted under this section.

12 (e) TERMINATION.—The panel established under this

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

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

15 SEC. 18. TRANSFERS OF FUNDS FROM OTHER FEDERAL

16 AGENCIES.

17 The Administrator is authorized to accept transfers

18 of available funds from other Federal agencies to carry

19 out functions transferred by this Act to the Administrator

20 or functions assigned by law to the Administrator on or

21 after the date of the enactment of this Act.

22 SEC. 19. SEAL OF ADMINISTRATION.

23 The Administrator shall cause a seal of office to be

24 made for the Administration of such design as the Admin-
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1 istrator shall approve. Judicial notice shall be taken of

2 such seal.

3 SEC. 20. STATUS OF ADMINISTRATION UNDER CERTAIN

4 LAWS.

5 For purposes of section 551(1) of title 5, United

6 States Code, the Administration shall be considered an

7 agency.

8 SEC. 21. SAVINGS PROVISIONS.

9 (a) ORDERS, REGULATIONS, CONTRACTS, AND CER10 TIFICATES.—All orders, determinations, rules, regula11 tions, permits, contracts, certificates, licenses, and privi12 leges that—

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

14 to become effective by the President or any Federal

15 agency or official thereof or by a court of competent

16 jurisdiction, on or after the date of the enactment of

17 this Act, in regard to functions which are trans18 ferred under this Act to the Administration; and

19 (2) are in effect at the time of the effective date

20 of this Act;

21 shall continue in effect according to their terms until

22 modified, terminated, superseded, set aside, or revoked in

23 accordance with law by the President, the Administrator,

24 or other authorized officials, by a court of competent juris25 diction, or by operation of law.
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1 (b) PROCEEDINGS AND APPLICATIONS.—The provi2 sions of this Act shall not affect any proceedings or any

3 application for any license, permit, certificate, or financial

4 assistance pending at the time of the effective date of this

5 Act. To the extent that they relate to functions so trans6 ferred, those proceedings and applications shall be contin7 ued. Orders shall be issued in such proceedings, appeals

8 shall be taken therefrom, and payments shall be made pur9 suant to such orders, as if this Act had not been enacted.

10 Orders issued in any such proceedings shall continue in

11 effect until modified, terminated, superseded, or revoked

12 by a duly authorized official, by a court of competent juris13 diction, or by operation of law. Nothing in this subsection

14 shall be deemed to prohibit the discontinuance or modi15 fication of any such proceeding under the same terms and

16 conditions and to the extent that such proceeding could

17 have been discontinued or modified if this Act had not

18 been enacted.

19 (c) SUITS.—

20 (1) IN GENERAL.—The provisions of this Act

21 shall not affect suits commenced prior to the effec22 tive date of this Act.

23 (2) CONTINUATION OF PROCEEDINGS.—In all

24 suits referred to in paragraph (1), proceedings shall

25 be had, appeals taken, and judgments rendered in
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1 the same manner and effect as if this Act had not

2 been enacted.

3 (d) ADMINISTRATIVE ACTIONS RELATING TO PRO4 MULGATION OF REGULATIONS.—Any administrative ac5 tion relating to the preparation or promulgation of a regu6 lation by the Federal Aviation Administration of the De7 partment of Transportation relating to a function trans8 ferred under this Act may be continued by the Administra9 tion with the same effect as if this Act had not been en10 acted.

11 (e) OFFICERS.—In any case involving 1 or more offi12 cers required by this Act to be appointed by and with the

13 advice and consent of the Senate who have not entered

14 upon office on the effective date of this Act, the President

15 may designate any officer whose appointment was re16 quired to be made by and with the advice and consent

17 of the Senate and who was such an officer immediately

18 prior to the effective date of this Act, to act in such office

19 until the office is filled as provided in this Act. While so

20 acting, any such individual shall receive compensation at

21 the rates provided by this Act for the office in which that

22 individual acts.

23 SEC. 22. LAWS AND REGULATIONS.

24 Except to the extent otherwise provided in this Act,

25 all laws (including rules and regulations) in effect and ap-
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1 plicable to the Federal Aviation Administration of the De2 partment of Transportation and to the Administrator of

3 that Administration on the date immediately preceding the

4 effective date of this Act shall, on and after such effective

5 date, be applicable to the Federal Aviation Administration

6 and the Administrator established by this Act, until that

7 law is repealed or otherwise modified or amended.

8 SEC. 23. PILOT PROGRAM FOR PROCUREMENT REFORM.

9 (a) PILOT PROGRAM.—The Administrator shall con10 duct a pilot program under which a trial acquisition man11 agement system is used to procure goods and services by

12 the Administration.

13 (b) EXEMPTION FROM PROCUREMENT LAWS.—

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

15 carrying out the trial acquisition management sys16 tem used under the pilot program, the Administrator

17 may waive—

18 (A) title III of the Federal Property and

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

20 251 through 266);

21 (B) the Office of Federal Procurement

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

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

24 Business Act (15 U.S.C. 637, 638, and 644);
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1 (D) any provision of law that, pursuant to

2 section 34 of the Office of Federal Procurement

3 Policy Act (41 U.S.C. 430), is listed in the Fed4 eral Acquisition Regulation as being inapplica5 ble—

6 (i) to contracts for the procurement of

7 commercial items; or

8 (ii) in the case of a subcontract under

9 the pilot program, to subcontracts for the

10 procurement of commercial items;

11 (E) the Federal Acquisition Streamlining

12 Act of 1994 (Public Law 103–355);

13 (F) the Brooks Automatic Data Processing

14 Act (section 111 of the Federal Property and

15 Administrative Services Act of 1949; 40 U.S.C.

16 759); and

17 (G) the Federal Acquisition Regulation

18 and any law that is not listed in subparagraphs

19 (A) through (F) providing authority to promul20 gate regulations in the Federal Acquisition Reg21 ulation.

22 (2) EFFECTIVE DATE.—The Administrator may

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

24 the expiration of the 90-day period referred to in

25 subsection (d)(2).
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1 (c) DEVELOPMENT OF TRIAL ACQUISITION MANAGE2 MENT SYSTEM.—Not later than 2 years after the effective

3 date of this Act, the Administrator shall develop a trial

4 acquisition management system for use in the pilot pro5 gram under subsection (a). In developing the trial system,

6 the Administrator shall ensure that the benefits of com7 petition, efficient management, and oversight of the acqui8 sition process are attained.

9 (d) NOTICE TO CONGRESS.—

10 (1) IN GENERAL.—Upon completion of the de11 velopment of the trial acquisition management sys12 tem, the Administrator shall submit a comprehensive

13 plan describing the trial acquisition management

14 system to the Congress, together with all then exist15 ing or proposed rules or regulations relevant to the

16 system.

17 (2) DATE OF IMPLEMENTATION.—The Admin18 istrator may begin to implement the trial acquisition

19 management system only after the expiration of the

20 90-day period that begins on the date on which the

21 plan is submitted to the Congress under paragraph

22 (1).

23 (e) TERMINATION.—On October 1, 2002, authority

24 for the trial acquisition management system under this

25 section shall terminate, and acquisitions of the Adminis-
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1 tration shall become subject to all otherwise applicable ac2 quisition laws (including regulations).

3 SEC. 24. PILOT PROGRAM FOR PERSONNEL MANAGEMENT

4 REFORM.

5 (a) PILOT PROGRAM.—The Administrator shall con6 duct a pilot program under which a trial personnel man7 agement system is used for the management, compensa8 tion, and advancement of Administration employees.

9 (b) EXEMPTION FROM CERTAIN PROVISIONS OF

10 TITLE 5, UNITED STATES CODE.—

11 (1) IN GENERAL.—Except as otherwise pro12 vided in this section, under the pilot program, the

13 Administrator may waive the applicability of parts II

14 and III of title 5, United States Code.

15 (2) EFFECTIVE DATE.—The waiver under para16 graph (1) shall not take effect until the expiration

17 of the applicable period specified in subsection

18 (d)(2).

19 (c) DEVELOPMENT OF TRIAL PERSONNEL MANAGE20 MENT SYSTEM.—Not later than 2 years after the effective

21 date of this Act, the Administrator shall develop a trial

22 personnel management system for use in the pilot program

23 under subsection (a). In developing the trial system, the

24 Administrator shall—
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1 (1) consult with appropriate representatives of

2 labor organizations who are authorized to engage in

3 collective bargaining under chapter 71 of title 5,

4 United States Code, with respect to the employees of

5 the Administration;

6 (2) consider the suggestions or concerns of the

7 representatives referred to in paragraph (1);

8 (3) emphasize a system design that will relieve

9 staffing difficulties at those facilities of the Adminis10 tration that the Administrator considers to be—

11 (A) critical to the National Airspace Sys12 tem;

13 (B) chronically understaffed; or

14 (C) located in a remote or high-cost loca15 tion; and

16 (4) ensure that—

17 (A) the benefits of a merit-based system

18 are preserved; and

19 (B) the trial system provides for training

20 of employees, as well as an adverse action pro21 cedure in cases in which performance is unac22 ceptable.

23 (d) NOTICE TO CONGRESS.—

24 (1) IN GENERAL.—Upon completion of the de25 velopment of the trial personnel management sys-
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1 tem, the Administrator shall submit a comprehensive

2 plan describing the trial personnel management sys3 tem to the Congress, together with all then existing

4 or proposed rules or regulations relevant to the sys5 tem.

6 (2) DATE OF IMPLEMENTATION.—The Admin7 istrator may begin to implement the trial personnel

8 management system only after the later of—

9 (A) the expiration of the 90-day period

10 that begins on the date on which the plan is

11 submitted to the Congress under paragraph (1);

12 or

13 (B) the expiration of the 2-year period be14 ginning on the effective date of this Act.

15 (e) EMPLOYEE RIGHTS AND BENEFITS.—The enact16 ment of this section shall not result in the exemption of

17 employees of the Administration from any of the following

18 provisions of title 5, United States Code:

19 (1) Chapter 63 (relating to leave).

20 (2) Chapter 71 (relating to labor-management

21 relations).

22 (3) Chapter 73 (relating to suitability, security,

23 and conduct).

24 (4) Chapter 81 (relating to compensation for

25 work injuries).
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1 (5) Chapter 83 (relating to retirement).

2 (6) Chapter 84 (relating to the Federal Em3 ployees’ Retirement System).

4 (7) Chapter 87 (relating to life insurance).

5 (8) Chapter 89 (relating to health insurance).

6 (f) EMPLOYEE PROTECTIONS.—Employment rights,

7 wages, and benefits of employees of the Administration

8 shall not be adversely affected by reason of the enactment

9 of this section, except for unacceptable performance or by

10 reason of a reduction in force or reorganization, during

11 the period commencing on the effective date of this Act

12 and ending on the date determined under subsection

13 (b)(2).

14 (g) COLLECTIVE-BARGAINING AGREEMENTS.—All

15 collective-bargaining agreements covering employees of the

16 Administration that are in effect on the effective date of

17 this Act shall remain in effect until their normal expiration

18 date, unless the Administrator and the exclusive bargain19 ing representative agree to the contrary.

20 (h) TERMINATION.—On October 1, 2002, authority

21 for the trial personnel management system under this sec22 tion shall terminate, and employees of the Administration

23 shall become subject to all provisions of parts II and III

24 of title 5, United States Code.
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1 SEC. 25. EVALUATION AND REPORT ON PILOT PROGRAMS.

2 Not later than 120 days before the termination of au3 thority for the trial acquisition and personnel management

4 systems authorized under sections 23 and 24, the Federal

5 Aviation Management Advisory Committee established

6 under section 16 shall prepare and submit to the Adminis7 trator and to the Congress a report evaluating the results

8 of the pilot programs. The report shall fully discuss those

9 elements of the programs that the Management Advisory

10 Committee determines to be effective and those that the

11 Management Advisory Committee determines were not

12 successful. In the report, the Management Advisory Com13 mittee shall make recommendations with respect to ex14 tending, modifying, or terminating the acquisition and

15 personnel management systems established under the pilot

16 programs.

17 SEC. 26. AMENDMENT TO INSPECTOR GENERAL ACT OF

18 1978.

19 Section 11 of the Inspector General Act of 1978 (5

20 U.S.C. App.) is amended—

21 (1) in paragraph (1) by striking ‘‘or Small

22 Business,’’ and inserting ‘‘Small Business, Federal

23 Aviation Administration,’’; and

24 (2) in paragraph (2) by inserting ‘‘the Federal

25 Aviation Administration,’’ after ‘‘United States In26 formation Agency,’’.
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1 SEC. 27. AMENDMENTS TO EXECUTIVE SCHEDULE.

2 (a) DEPUTY ADMINISTRATOR.—Section 5314 of title

3 5, United States Code, is amended by adding at the end

4 the following:

5 ‘‘Deputy Administrator, Federal Aviation Ad6 ministration.’’.

7 (b) ASSISTANT ADMINISTRATORS; CHIEF COUN8 SEL.—Section 5315 of title 5, United States Code, is

9 amended by striking ‘‘Deputy Administrator, Federal

10 Aviation Administration.’’ and inserting the following:

11 ‘‘Assistant Administrators, Federal Aviation

12 Administration (8).

13 ‘‘Chief Counsel, Federal Aviation Administra14 tion.

15 ‘‘Chief Financial Officer, Federal Aviation Ad16 ministration.’’.

17 (c) INSPECTOR GENERAL.—Section 5316 of title 5,

18 United States Code, is amended by adding at the end of

19 the following:

20 ‘‘Inspector General, Federal Aviation Adminis21 tration.’’.

22 SEC. 28. EFFECTIVE DATE.

23 The provisions of this Act and the amendments made

24 by this Act shall take effect on the date that is 180 days

25 after the date of the enactment of this Act.

Æ
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