(11) Chapter 85 (relating to unemployment
compensation).
(12) Chapter 87 (relating to life insurance).
(13) Chapter 89 (relating to health insurance).
(14) Subchapter II of chapter 53 (with respect
to the pay of the Administrator).
(g) PAY RESTRICTION.—No officer or employee of
the Administration may receive an annual rate of basic
pay in excess of the annual rate of basic pay payable to
the Administrator.
(h) ETHICS.—The Administration shall be subject to
Executive Order 12674 and regulations and opinions pro-
mulgated by the Office of Government Ethics, including
those set forth in section 2635 of title 5 of the Code of
Federal Regulations.
(i) EMPLOYEE PROTECTIONS.—Employment rights,
wages, and benefits of employees of the Administration
shall not be adversely affected by reason of the enactment
of this section, except for unacceptable performance or by
reason of a reduction in force or reorganization, during
the period commencing on the effective date of this Act
and ending on the date determined under subsection
(b)(2).
(j) LABOR-MANAGEMENT AGREEMENTS.—Except as
otherwise provided by this Act, all labor-management
agreements covering employees of the Administration that
are in effect on the effective date of this Act shall remain
in effect until their normal expiration date, unless the Ad-
ministrator and the exclusive bargaining representative
agree to the contrary.
(k) MODIFICATIONS TO SYSTEM.—The Administrator
may periodically make modifications to the personnel man-
agement system. Any such modifications shall be submit-
ted to the Congress under subsection (d) in the same man-
ner as the personnel management system plan and may
not be implemented until after the expiration of the 30-
day period beginning on the date of submission.
TITLE III—SYSTEM TO FUND CERTAIN
FEDERAL AVIATION ADMINISTRATION
FUNCTIONS
SEC. 301. FINDINGS.
The Congress finds the following:
(1) The Federal Aviation Administration is rec-
ognized throughout the world as a leader in aviation
safety.
(2) The Administration certifies aircraft, en-
gines, propellers and other manufactured parts.
(3) The Administration certifies more than 650
training schools for pilots and non-pilots, more than
4,858 repair stations, and more than 193 mainte-
nance schools.
(4) The Administration certifies pilot examin-
ers, who are then qualified to determine if a person
has the skills necessary to become a pilot.
(5) The Administration fully certifies more than
6,000 medical examiners, each of whom is then fully
qualified to medically certify the qualifications of pi-
lots and non-pilots.
(6) The Administration fully certifies more than
470 airports, and provides a limited certification for
another 205 airports. Other airports in the United
States are also reviewed by the Administration.
(7) The Administration each year performs
more than 355,000 inspections.
(8) The Administration issues more than
655,000 pilots licenses and more than 560,000 non-
pilot licenses (e.g., mechanics).
(9) The Administration’s certification means
that the product meets the highest standards of
safety and reliability.
(10) The Administration’s certification means
aviation-related equipment and services meet the
highest standards throughout the world.
(11) The Administration’s certification is a val-
uable element for any company to sell aviation-relat-
ed products throughout the world.
(12) The Administration certification con-
stitutes a valuable license, franchise or privilege, and
confers many benefits on the holders.
(13) The Administration also is a major pur-
chaser of computers, radars and other systems need-
ed to run the air traffic control system. The Admin-
istration’s design, acceptance, commissioning, or cer-
tification of such equipment enables the private sec-
tor to market those products around the world, and
as such confers a benefit on the manufacturer.
(14) The Administration provides extensive
services to public use aircraft, including the military.
Federal Aviation Administration cost allocation
studies attribute about 15 percent of the cost of the
airway system to public use aircraft. The estimated
cost of these air traffic services in 1993 was $1.1
billion. Most of these services were provided to the
military. The annual appropriations from the Gen-
eral Fund to the Administration have been consid-
ered, in part, payment for the cost of such services,
but are expected to decline in future years.
(15) The Administration must be able to de-
sign, to the maximum extent possible, a perform-
ance-based system to recover its interest and cost in
its certification and purchasing systems.
SEC. 302. PURPOSES.
The purposes of this title are—
(1) to provide a financial structure for the Fed-
eral Aviation Administration so that it will be able
to support the future growth in the national aviation
and airport system;
(2) to establish a program of incentive-based
fees for services to improve air traffic management
system performance and to establish appropriate lev-
els of cost accountability for air traffic management
services provided by the Federal Aviation Adminis-
tration;
(3) to ensure that the funding obtained by user
fees set by this title will be dedicated solely for the
use of the Federal Aviation Administration;
(4) to authorize the Federal Aviation Adminis-
tration to recover the costs of its services from those
who benefit from the national aviation system and
the services provided by the Federal Aviation Ad-
ministration;
(5) to allow the Federal Aviation Administra-
tion to develop a fee system based on the cost or
value of the services provided;
(6) to demonstrate to each segment of the avia-
tion industry the benefits of a cost-based or value-
based user fee system;
(7) to replace the existing user charges with a
new fee system as a means of achieving a more effi-
cient and effective Federal Aviation Administration
for the aviation transportation industry; and
(8) to have the Federal Aviation Administration
develop fee systems that do not directly impinge
upon the non-business jet and non-commercial as-
pects of the general aviation community.
SEC. 303. USER FEES FOR VARIOUS FEDERAL AVIATION AD-
MINISTRATION SERVICES.
(a) IN GENERAL.—Within 6 months of the date of
enactment of this Act, the Administration shall submit to
the Congress a performance-based fee system, to the maxi-
mum extent possible, for—
(1) services other than air traffic control serv-
ices, including safety, certification, security, training,
inspection, and other activities;
(2) services (other than air traffic control serv-
ices) provided to a foreign government; and