I
103D CONGRESS
2D SESSION
H. R. 5209
To establish a wholly owned Government corporation for the operation of
the air traffic control system, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 6, 1994
Mr. BARTON of Texas introduced the following bill; which was referred to the
Committee on Public Works and Transportation
A BILL
To establish a wholly owned Government corporation for
the operation of the air traffic control system, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Air Traffic Control
Service Improvement Act of 1994’’.
TITLE I—UNITED STATES AIR
TRAFFIC SERVICE CORPORA-
TION
SEC. 101. ESTABLISHMENT OF CORPORATION.
(a) IN GENERAL.—There is established a wholly
owned Government corporation, to be known as the ‘‘Unit-
ed States Air Traffic Service Corporation’’, to operate the
air traffic control system of the United States after the
completion of transfers of air traffic control facilities and
equipment under section 201.
(b) LIMITATIONS.—The Corporation—
(1) except as provided in subsection (c), shall
not be an agency or establishment of the United
States Government;
(2) shall have its principal office in the District
of Columbia and is deemed to be a resident thereof;
(3) to the extent consistent with this Act, shall
be subject to the District of Columbia Business Cor-
poration Act (D.C. Code, Sec. 29–301 et seq.);
(4) shall be subject to safety regulatory over-
sight of the Federal Aviation Administration; and
(5) shall be self-sufficient through revenues
earned by charging fees to users of the air traffic
control system.
(c) WAR OR NATIONAL EMERGENCY.—
(1) TRANSFER OF FUNCTIONS.—In the event of
a declared war or national emergency, the President
may by Executive order transfer any functions, per-
sonnel, property, records, funds, and other matters
relating to the Corporation to the Department of
Defense.
(2) DEVELOPMENT OF PLANS.—The Board, in
consultation with the Secretary of Defense, shall de-
velop plans for the effective discharge of the func-
tions of the Corporation in the event of a declared
war or national emergency.
SEC. 102. CORPORATION.
(a) CHIEF EXECUTIVE OFFICER.—Within 30 days
after the date of the enactment of this Act, the President
shall appoint an interim chief executive officer of the Cor-
poration to handle the preliminary development of the
Corporation before the appointment of the board of direc-
tors. The interim chief executive officer shall serve as a
member of the board until the board elects a permanent
chief executive officer. The chief executive officer (other
than the interim chief executive officer) shall be selected
by the board. The first executive officer to be selected shall
be selected not later than the 180th day following the date
of the first meeting of the board.
(b) APPOINTMENT OF TRANSITION TEAM.—The in-
terim chief executive officer shall appoint a 6-member
transition team which shall be responsible for getting the
Corporation operational and shall serve until the Corpora-
tion is operational.
(c) FUNCTIONS OF TRANSITION TEAM.—The transi-
tion team appointed under this section shall—
(1) subject to approval by the President, draft
and file articles of incorporation for the Corporation,
draft the initial bylaws of the Corporation, and take
any other actions necessary for the establishment
and initial operation of the corporation; and
(2) after appointment of the board, the transi-
tion team shall work under the board until the Cor-
poration is operational.
(d) ARTICLES OF INCORPORATION.—The articles of
incorporation filed by the transition team in accordance
with subsection (c)—
(1) shall provide for cumulative voting under
section 27(d) of the District of Columbia Business
Corporation Act (D.C. Code, Sec. 29–327(d)); and
(2) may be amended, altered, changed, or re-
pealed by a vote of not less than 2⁄3 of the members
of the board.
(C) 1 member from among persons who
represent the views of employees of the Federal
Aviation Administration and the Corporation
who belong to a union.
(D) 1 member from among persons who
represent the views of general business inter-
ests.
(E) 2 members from among persons who
represent the views of noncommercial aviation
interests.
(3) CHAIRPERSON.—The board shall elect one
of its members annually to serve as Chairperson.
(4) COMPENSATION AND EXPENSES.—Members
of the board may receive compensation in accordance
with rules established by the board.
(5) FUNCTIONS
OF
THE
BOARD.—The board
shall meet at least quarterly and shall be responsible
for strategic planning and approving major financial
decisions of the Corporation, the annual budget, and
the level of user fees. The board shall provide for
public notice and comment on its fee proposals. The
board shall have authority over decisions about con-
tracting for air traffic control facilities, including
Level I towers and navigational facilities and equip-
ment.
(6) FUNCTION OF THE SECRETARY OF TRANS-
PORTATION.—
(A) USER FEES.—In consultation with the
Attorney General, the Secretary of Transpor-
tation shall have the authority to disapprove the
kind and level of user fees established by the
board if such fees are not reasonable as deter-
mined by the Secretary under criteria estab-
lished by the Secretary. Not later than 180
days after the date of the enactment of this
Act, the Secretary shall issue regulations estab-
lishing such criteria. In determining if fees are
reasonable under this paragraph, the Secretary
shall consider if the fees will harm new entrant
air carriers, diminish competition among users
of the air traffic control system, or lead to ex-
cessive charges for air service.
(B) 
BORROWING.—The 
Secretary 
of
Transportation shall have the authority to dis-
approve borrowing by the Corporation under
the following circumstances:
(i) If the Corporation seeks to borrow
funds at levels which exceed a reasonable
prospect for repayment as determined by
the Secretary.
(ii) If the Corporation seeks to borrow
funds for inappropriate, wasteful, or un-
reasonably speculative activities as deter-
mined by the Secretary.
(C) INTERMODAL ISSUES.—The Secretary
of Transportation shall have the authority to
address intermodal issues affecting the Cor-
poration.
(7) FUNCTION
OF
THE
SECRETARY
OF
DE-
FENSE.—The Secretary of Defense shall address na-
tional security concerns as they relate to the Cor-
poration.
(b) SAFETY COMMITTEE.—
(1) APPOINTMENT.—The board shall establish
a 3-member permanent safety committee from
among persons who are citizens of the United States
to review the operations of the Corporation to ensure
the highest level of aviation safety. Persons ap-
pointed under this paragraph shall serve at the
pleasure of the board.
(2) 
COMPENSATION.—Individuals 
appointed
under paragraph (1) shall be compensated at rates
fixed by the board.
(c) CEO.—The Corporation shall have a chief execu-
tive officer who is elected by the board and who shall serve
at the discretion of the board. The board shall fix the term
of employment and compensation of the chief executive
officer.
(d) RESTRICTION ON RECEIPT OF OTHER SALARY.—
An officer of the Corporation shall not receive any salary
from any source other than the Corporation during the
period of the officer’s employment by the Corporation.
SEC. 104. POWERS OF CORPORATION.
The Corporation may—
(1) plan, initiate, construct, own, manage, and
operate, by itself or in cooperation with other enti-
ties, an air traffic control system;
(2) furnish, for hire, air traffic control services
to air transportation common carriers, and other op-
erators of civil aircraft;
(3) establish reasonable nondiscriminatory fees
for the provision of air traffic control services;
(4) enter into contracts under which other enti-
ties may operate individual air traffic control facili-
ties on behalf of the Corporation;
(5) acquire, by construction, purchase, or gift,
physical facilities, equipment, and devices necessary
to the operations of the Corporation, including air
traffic control and associated equipment and facili-
ties; and
(6) conduct or contract for the conduct of re-
search and development related to the operations of
the Corporation and establish technical specifications
of all elements of the air traffic control system.
SEC. 105. FOREIGN BUSINESS NEGOTIATIONS OF CORPORA-
TION.
(a) NEGOTIATIONS
OF CORPORATION.—Whenever
the Corporation enters into negotiations with any foreign
entity with respect to facilities, operations, and services
authorized by this Act to be conducted by the Corpora-
tion—
(1) the Corporation shall notify the Secretary of
State regarding the initiation, conduct, and foreign
policy implications of such negotiations; and
(2) the Secretary of State shall advise the Cor-
poration of relevant foreign policy considerations
and, upon request of the Corporation, shall render
such assistance as may be appropriate.
(b) NEGOTIATIONS OF SECRETARY OF STATE.—The
Secretary of State shall consult with the Corporation with
respect to all negotiations conducted by the Secretary re-
garding matters which relate to air traffic control.
SEC. 106. SANCTIONS.
(a) PETITION
FOR RELIEF.—Except as otherwise
prohibited by law—
(1) if the Corporation engages in any activity,
or takes any action in furtherance of any policy,
which is inconsistent with the policy and purposes of
this Act; or
(2) if any other person—
(A) violates any provision of this Act;
(B) obstructs or interferes with any activ-
ity authorized by this Act;
(C) refuses, fails, or neglects to discharge
any duty or responsibility under this Act; or
(D) threatens any such violation, obstruc-
tion, interference, refusal, failure, or neglect;
the district court of the United States for any dis-
trict in which such Corporation or other person re-
sides or may be found shall have jurisdiction, upon
petition of the Attorney General of the United
States, to grant such equitable relief as may be nec-
essary or appropriate to prevent or terminate such
activity.
(b) PUNISHMENT, LIABILITY, OR SANCTION UNDER
OTHER PROVISIONS.—Nothing contained in this section
shall be considered to relieve any person of any liability,
punishment, or sanction under any other law.
SEC. 107. REPORT.
(a) CORPORATION.—The Corporation shall transmit
to the President and Congress, annually and at such other
times as it considers appropriate, a comprehensive and de-
tailed report of its operations, activities, and accomplish-
ments under this Act.
(b) 
ADMINISTRATOR.—The 
Administrator 
shall
transmit to the Congress, annually and at such other
times as the Administrator considers appropriate, an eval-
uation of the capital structure of the Corporation so as
to assure the Congress that such structure is consistent
with the most efficient and economical operation of the
Corporation.
TITLE II—MISCELLANEOUS
SEC. 201. TRANSFER OF FACILITIES AND EQUIPMENT TO
CORPORATION.
(a) IN GENERAL.—Not later than 1 year after the
date the Senate approves the appointments of the Presi-
dent under section 102(a), the Secretary of Transpor-
tation shall take such steps as may be necessary—
(1) to transfer to the Corporation all right,
title, and interest of the United States in, and all
control of the United States over, all facilities and
equipment under the jurisdiction of the Administra-
tion by the operational date of the Corporation,
which are part of the air traffic control system in-
(1) fees which air carriers must pay for landing
aircraft at or taking aircraft off from such facilities;
and
(2) fees which passengers must pay for depart-
ing from such facilities.
(b) CRITERIA.—Fees established under subsection
(a)—
(1) shall be in an amount equal to the cost to
the airport of providing the particular use or service
for which the fee is charged, plus a reasonable prof-
it; and
(2) may vary according to time of day and de-
mand for the facility or service.
SEC. 203. AIRPORT ACCESS.
(a) PROHIBITION.—An owner, operator, or other per-
son in charge of a public-use airport shall not deny access
to and use of the facilities of such airport by any person
operating an aircraft which is in compliance with all laws
relating to aviation safety if the person offers to pay all
fees which are usually charged for such use.
(b) PENALTY.—Any person who violates subsection
(a) shall be subject to a civil penalty under section 46301
of title 49, United States Code.
SEC. 204. LIABILITY OF CORPORATION.
The Corporation shall be treated as a Federal agency
for purposes of chapter 171 of title 28, United States
Code; except that judgments, awards, settlements, inter-
est, and costs of claims resulting from air traffic control
system liability, shall not be paid from amounts available
under section 1304 of title 31, United States Code, but
shall be paid from amounts otherwise available to the Cor-
poration. The Corporation may secure its own insurance
for claims resulting from air traffic control system liabil-
ity. The Corporation shall be responsible for any legal or
administrative costs for air traffic control-related litiga-
tion. The Corporation may secure liability insurance for
the board of directors. The Corporation may sue or be
sued in its corporate name. The Secretary of Transpor-
tation shall identify potential environmental liabilities of
facilities before their transfer to the Corporation.
SEC. 205. DEFINITIONS.
As used in this Act—
(1) the terms ‘‘airport’’ and ‘‘public-use air-
port’’, respectively, have the meaning given such
terms by section 47102 of title 49, United States
Code;
(2) the terms ‘‘air carrier’’, ‘‘aircraft’’, ‘‘air
transportation’’, ‘‘civil aircraft’’, ‘‘citizen of the
United States’’, ‘‘person’’ and ‘‘United States’’, re-
spectively, have the meaning given such terms by
section 40102 of title 49, United States Code;
(3) the term ‘‘board’’ means the board of direc-
tors of the Corporation appointed under section 103;
(4) the term ‘‘Corporation’’ means the corpora-
tion established by section 101 of this Act;
(5) the term ‘‘Administration’’ means the Fed-
eral Aviation Administration; and
(6) the term ‘‘Administrator’’ means the Ad-
ministrator of the Federal Aviation Administration.
SEC. 206. CONFORMING AMENDMENTS.
The Secretary of Transportation shall submit to Con-
gress not later than 1 year after the date of the enactment
of this Act such conforming amendments as the Secretary
of Transportation determines are necessary to fully imple-
ment this Act.
Æ
HR 5209 IH——2