Union Calendar No. 385
104TH CONGRESS
2D SESSION
H. R. 3539
[Report No. 104–714, Part I]
A BILL
To amend title 49, United States Code, to reau-
thorize programs of the Federal Aviation Admin-
istration, and for other purposes.
JULY 30, 1996
The Committee on Ways and Means discharged; commit-
ted to the Committee of the Whole House on the State
of the Union and ordered to be printed
IB
#
Union Calendar No. 385
104TH CONGRESS
2D SESSION
H. R. 3539
[Report No. 104–714, Part I]
To amend title 49, United States Code, to reauthorize programs of the
Federal Aviation Administration, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 29, 1996
Mr. SHUSTER (for himself, Mr. DUNCAN, Mr. OBERSTAR, and Mr. LIPINSKI)
introduced the following bill; which was referred to the Committee on
Transportation and Infrastructure, and in addition to the Committees on
Ways and Means, and 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
JULY 26, 1996
Committee on Rules discharged
JULY 26, 1996
Reported from the Committee on Transportation and Infrastructure with an
amendment
[Strike out all after the enacting clause and insert the part printed in italic and roman]
JULY 26, 1996
Referral to Ways and Means extended for a period no later than July 29,
1996
JULY 29, 1996
Referral to Ways and Means extended for a period no later than July 30,
1996
JULY 30, 1996
The Committee on Ways and Means discharged; committed to the Committee
of the Whole House on the State of the Union and ordered to be printed
HR 3539 RH1S
[For text of introduced bill, see copy of bill as introduced on May 29, 1996]
A BILL
To amend title 49, United States Code, to reauthorize pro-
grams of the Federal Aviation Administration, 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; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Federal Aviation Authorization Act of 1996’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Applicability.
TITLE I—REAUTHORIZATION OF FAA PROGRAMS
Sec. 101. Airport improvement program.
Sec. 102. Airway facilities improvement program.
Sec. 103. Operations of FAA.
TITLE II—AIRPORT DEVELOPMENT FINANCING
Sec. 201. Apportionments.
Sec. 202. Discretionary fund.
Sec. 203. Use of apportioned amounts.
Sec. 204. Designating current and former military airports.
Sec. 205. Select panel on airport and agency financing.
TITLE III—AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS
Sec. 301. Intermodal planning.
Sec. 302. Compliance with Federal mandates.
Sec. 303. Runway maintenance program.
Sec. 304. Access to airports by intercity buses.
Sec. 305. Cost reimbursement for projects commenced prior to grant award.
Sec. 306. Issuance of letters of intent.
Sec. 307. Selection of projects for grants from discretionary fund.
Sec. 308. Small airport fund.
Sec. 309. State block grant program.
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Sec. 310. Private ownership of airports.
Sec. 311. Use of noise set-aside funds by non-airport sponsors.
TITLE IV—MISCELLANEOUS PROVISIONS
Sec. 401. Purchase of housing units.
Sec. 402. Technical correction relating to State taxation.
Sec. 403. Use of passenger facility fees for debt financing project.
Sec. 404. Protection of voluntarily submitted information.
Sec. 405. Supplemental type certificates.
Sec. 406. Restriction on use of revenues.
Sec. 407. Certification of small airports.
Sec. 408. Discretionary authority for criminal history records checks.
Sec. 409. Imposition of fees.
Sec. 410. Authority to close airport located near closed or realigned military base.
Sec. 411. Construction of runways.
Sec. 412. Gadsden Air Depot, Alabama.
Sec. 413. Regulations affecting intrastate aviation in Alaska.
Sec. 414. Westchester County Airport, New York.
Sec. 415. Bedford Airport, Pennsylvania.
Sec. 416. Location of Doppler radar stations, New York.
Sec. 417. Worcester Municipal Airport, Massachusetts.
Sec. 418. Aircraft Noise Ombudsman.
TITLE V—METROPOLITAN WASHINGTON AIRPORTS
Sec. 501. Short title.
Sec. 502. Amendment of Metropolitan Washington Airports Act of 1986.
Sec. 503. Use of leased property.
Sec. 504. Board of directors.
Sec. 505. Federal Advisory Commission.
Sec. 506. Review procedure.
Sec. 507. Congressional disapproval procedures.
Sec. 508. Other matters relating to Federal Advisory Commission.
Sec. 509. Effect of judicial orders.
Sec. 510. Federal Advisory Committee Act.
Sec. 511. Use of Dulles Access Highway.
Sec. 512. Amendment of lease.
Sec. 513. Availability of slots.
TITLE 
VI—RECOMMENDATION 
TO 
COMMITTEE 
ON 
WAYS 
AND
MEANS ON EXTENSION OF AIRPORT AND AIRWAY TRUST FUND
TAXES AND EXPENDITURE AUTHORITY
SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.
Except as otherwise specifically provided, whenever in
titles I, II, III, and IV of this Act an amendment or repeal
is expressed in terms of an amendment to, or repeal of, a
section or other provision of law, the reference shall be con-
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sidered to be made to a section or other provision of title
49, United States Code.
SEC. 3. APPLICABILITY.
(a) IN GENERAL.—Except as otherwise specifically
provided, titles I, II, III, and IV of this Act and the amend-
ments made by such titles shall apply only to fiscal years
beginning after September 30, 1996.
(b) LIMITATION
ON STATUTORY CONSTRUCTION.—
Nothing in this Act or any amendment made by this Act
shall be construed as affecting funds made available for a
fiscal year ending before October 1, 1996.
TITLE I—REAUTHORIZATION OF
FAA PROGRAMS
SEC. 101. AIRPORT IMPROVEMENT PROGRAM.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
48103 is amended—
(1) by striking ‘‘September 30, 1981’’ and insert-
ing ‘‘September 30, 1996’’; and
(2) by striking ‘‘$17,583,500,000’’ and all that
follows through the period at the end and inserting
the following: ‘‘$2,280,000,000 for fiscal years ending
before October 1, 1997, $4,627,000,000 for fiscal years
ending before October 1, 1998, and $7,039,000,000 for
fiscal years ending before October 1, 1999.’’.
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(b) OBLIGATIONAL AUTHORITY.—Section 47104(c) is
amended by striking ‘‘1996’’ and inserting ‘‘1999’’.
SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
48101(a) is amended by striking paragraphs (1) through
(4) and inserting the following:
‘‘(1) $2,068,000,000 for fiscal year 1997.
‘‘(2) $2,129,000,000 for fiscal year 1998.
‘‘(3) $2,191,000,000 for fiscal year 1999.’’.
(b) CLERICAL AMENDMENTS.—Chapter 481 is amend-
ed—
(1) by striking the heading for section 48101 and
inserting the following:
‘‘§ 48101. Air navigation facilities and equipment’’;
and
(2) in the table of sections by striking the item
relating to section 48101 and inserting the following:
‘‘48101. Air navigation facilities and equipment.’’.
SEC. 103. OPERATIONS OF FAA.
(a) AUTHORIZATION OF APPROPRIATIONS FROM GEN-
ERAL FUND.—Section 106(k) is amended by striking
‘‘$4,088,000,000’’ and all that follows through the period
at the end and inserting the following: ‘‘$5,158,000,000 for
fiscal year 1997, $5,344,000,000 for fiscal year 1998, and
$5,538,000,000 for fiscal year 1999.’’.
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(b) AUTHORIZATION
OF
APPROPRIATIONS
FROM
TRUST FUND.—Section 48104(c) is amended—
(1) in the subsection heading by striking ‘‘1996’’
and inserting ‘‘1999’’; and
(2) by striking ‘‘1994, 1995, and 1996’’ and in-
serting ‘‘1994 through 1999’’.
(c) LIMITATION
ON
OBLIGATING
OR
EXPENDING
AMOUNTS.—Section 48108(c) is amended by striking
‘‘1996’’ and inserting ‘‘1999’’.
(d) CLERICAL AMENDMENTS.—Chapter 481 is amend-
ed—
(1) by striking the heading for section 48104 and
inserting the following:
‘‘§ 48104. Operations and maintenance’’;
and
(2) in the table of sections for such chapter by
striking the item relating to section 48104 and insert-
ing the following:
‘‘48104. Operations and maintenance.’’.
TITLE II—AIRPORT
DEVELOPMENT FINANCING
SEC. 201. APPORTIONMENTS.
(a) AMOUNTS APPORTIONED TO SPONSORS.—
(1) PRIMARY AIRPORTS.—Section 47114(c)(1)(A)
is amended—
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(A) by striking ‘‘and’’ at the end of clause
(iii);
(B) in clause (iv) by striking ‘‘additional’’
and inserting ‘‘of the next 500,000’’;
(C) by striking the period at the end of
clause (iv) and inserting ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(v) $.50 for each additional passenger boarding
at the airport during the prior calendar year.’’.
(2) 
CARGO
ONLY
AIRPORTS.—Section
47114(c)(2) of such title is amended to read as fol-
lows:
‘‘(2) CARGO ONLY AIRPORTS.—
‘‘(A) APPORTIONMENT.—Subject to subpara-
graph (D), the Secretary shall apportion an
amount equal to 2.5 percent of the amount sub-
ject to apportionment each fiscal year to the
sponsors of airports served by aircraft providing
air transportation of only cargo with a total an-
nual landed weight of more than 100,000,000
pounds.
‘‘(B) 
SUBALLOCATION
FORMULA.—Any
funds apportioned under subparagraph (A) to
sponsors of airports described in subparagraph
(A) shall be allocated among those airports in
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the proportion that the total annual landed
weight of aircraft described in subparagraph (A)
landing at each of those airports bears to the
total annual landed weight of those aircraft
landing at all those airports.
‘‘(C) LIMITATION.—Not more than 8 per-
cent of the amount apportioned under subpara-
graph (A) may be apportioned for any one air-
port.
‘‘(D) DISTRIBUTION TO OTHER AIRPORTS.—
Before apportioning amounts to the sponsors of
airports under subparagraph (A) for a fiscal
year, the Secretary may set-aside a portion of
such amounts for distribution to the sponsors of
other airports, selected by the Secretary, that the
Secretary finds will be served primarily by air-
craft providing air transportation of only cargo.
‘‘(E) 
DETERMINATION
OF
LANDED
WEIGHT.—Landed weight under this paragraph
is the landed weight of aircraft landing at each
airport described in subparagraph (A) during
the prior calendar year.’’.
(3) 
REPEAL
OF
LIMITATION.—Section
47114(c)(3) is repealed.
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(b) AMOUNTS APPORTIONED
TO STATES.—Section
47114(d)(2) of such title is amended—
(1) by striking ‘‘12’’ and inserting ‘‘18.5’’;
(2) in subparagraph (A) by striking ‘‘one’’ and
inserting ‘‘0.66’’;
(3) in each of subparagraphs (B) and (C) by
striking ‘‘49.5’’ and inserting ‘‘49.67’’; and
(4) in each of subparagraphs (B) and (C) by
striking ‘‘except’’ the second place it appears and all
that follows through ‘‘title,’’ and inserting ‘‘excluding
primary airports but including reliever and nonpri-
mary commercial service airports,’’.
SEC. 202. DISCRETIONARY FUND.
Section 47115 is amended by striking the second sub-
section (f), relating to minimum amounts to be credited,
and inserting the following:
‘‘(g) MINIMUM AMOUNT TO BE CREDITED.—
‘‘(1) GENERAL RULE.—In a fiscal year, there
shall be credited to the fund, out of amounts made
available under section 48103 of this title, an amount
that is at least equal to the sum of—
‘‘(A) $50,000,000; plus
‘‘(B) the total amount required from the
fund to carry out in the fiscal year letters of in-
tent issued before January 1, 1996, under section
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47110(e) of this title or the Airport and Airway
Improvement Act of 1982.
The amount credited is exclusive of amounts that have
been apportioned in a prior fiscal year under section
47114 of this title and that remain available for obli-
gation.
‘‘(2) REDUCTION
OF
APPORTIONMENTS.—In a
fiscal year in which the amount credited under sub-
section (a) is less than the minimum amount to be
credited under paragraph (1), the total amount cal-
culated under paragraph (3) shall be reduced by an
amount that, when credited to the fund, together with
the amount credited under subsection (a), equals such
minimum amount.
‘‘(3) AMOUNT OF REDUCTION.—For a fiscal year,
the total amount available to make a reduction to
carry out paragraph (2) is the total of the amounts
determined 
under 
sections 
47114(c)(1)(A),
47114(c)(2), 47114(d), and 47117(e) of this title.
Each amount shall be reduced by an equal percentage
to achieve the reduction.
‘‘(h) ALLOCATION OF AMOUNTS EXCEEDING LETTER
OF INTENT REQUIREMENTS.—Of the amount credited to the
fund for a fiscal year which exceeds the total amount re-
quired from the fund to carry out in the fiscal year letters
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of intent issued before January 1, 1996, under section
47110(e) of this title or the Airport and Airway Improve-
ment Act of 1982—
‘‘(1) not less than 15 percent shall be used for
system planning and for making grants to airports
that are not commercial service airports; and
‘‘(2) not less than 30 percent shall be used for
making grants to commercial service airports that
each year have less than .25 percent of the total pas-
senger boardings in the United States.’’.
SEC. 203. USE OF APPORTIONED AMOUNTS.
(a) PERIOD OF AVAILABILITY.—Section 47117(b) is
amended by inserting before the period at the end of the
first sentence the following: ‘‘or the 3 fiscal years imme-
diately following that year in the case of a primary airport
that had less than .05 percent of the total boardings in the
United States in the preceding calendar year’’.
(b) SPECIAL APPORTIONMENT CATEGORIES.—Section
47117(e)(1) is amended—
(1) by striking ‘‘made available under section
48103’’ and inserting ‘‘available to the discretionary
fund under section 47115’’;
(2) by striking subparagraphs (A), (C), and (D);
(3) by redesignating subparagraphs (B) and (E)
as subparagraphs (A) and (B), respectively;
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(4) in subparagraph (A), as so redesignated, by
striking ‘‘at least 12.5’’ and inserting ‘‘At least 31’’;
(5) by adding at the end of subparagraph (A),
as so redesignated, the following: ‘‘The Secretary may
count the amount of grants made for such planning
and programs with funds apportioned under section
47114 in that fiscal year in determining whether or
not such 31 percent requirement is being met in that
fiscal year.’’;
(6) in subparagraph (B), as so redesignated, by
striking ‘‘at least 2.25’’ and all that follows through
‘‘1996,’’ and inserting ‘‘At least 4 percent for each
fiscal year thereafter’’; and
(7) by inserting before the period at the end of
subparagraph (B), as so redesignated, the following:
‘‘and to sponsors of noncommercial service airports
for grants for operational and maintenance expenses
at any such airport if the amount of such grants to
the sponsor of the airport does not exceed $30,000 in
that fiscal year, if the Secretary determines that the
airport is adversely affected by the closure or realign-
ment of a military base, and if the sponsor of the air-
port certifies that the airport would otherwise close if
the airport does not receive the grant’’.
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SEC. 204. DESIGNATING CURRENT AND FORMER MILITARY
AIRPORTS.
(a) GENERAL REQUIREMENTS.—Section 47118(a) is
amended—
(1) by striking ‘‘not more than 15’’;
(2) by inserting after the first sentence the fol-
lowing: ‘‘The maximum number of airports which
may be designated by the Secretary under this section
at any time is 10.’’; and
(3) by striking ‘‘reduce delays’’ and all that fol-
lows through ‘‘landings’’ and inserting the following:
‘‘enhance airport and air traffic control system ca-
pacity in major metropolitan areas and reduce cur-
rent or projected flight delays’’.
(b) SURVEY AND CONSIDERATIONS.—Section 47118 is
amended—
(1) in subsections (a) and (d) by striking ‘‘sec-
tion 
47117(e)(1)(E)’’ 
and 
inserting 
‘‘section
47117(e)(1)(B)’’; and
(2) by striking subsections (b) and (c) and redes-
ignating subsections (d), (e), and (f) as subsections
(b), (c), and (d), respectively.
(c) PARKING LOTS, FUEL FARMS, AND UTILITIES.—
Subsection (d) of section 47118, as redesignated by sub-
section (b) of this section, is amended by striking ‘‘for the
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fiscal years ending September 30, 1993–1996,’’ and insert-
ing ‘‘for fiscal years beginning after September 30, 1992,’’.
SEC. 205. SELECT PANEL ON AIRPORT AND AGENCY FI-
NANCING.
(a) ESTABLISHMENT.—There is established an advi-
sory committee which shall be known as the Select Panel
on Airport and Agency Financing (hereinafter in this sec-
tion referred to as the ‘‘panel’’).
(b) FUNCTIONS.—The panel shall evaluate and rec-
ommend innovative financing mechanisms for ensuring
adequate funding for airport capital needs and Federal
Aviation Administration capital and operating needs.
(c) MEMBERSHIP.—The panel shall consist of 15 mem-
bers as follows:
(1) 7 members appointed by the Secretary of
Transportation, in consultation with the Secretary of
the Treasury, of whom—
(A) 3 shall have expertise in aviation; and
(B) 3 shall have expertise in financing, in-
cluding at least 1 with expertise in airport fi-
nancing.
(2) 8 members appointed by Congress as follows:
(A) 1 member appointed by each of the
chairman and ranking minority member of the
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Committee on Transportation and Infrastructure
of the House of Representatives.
(B) 1 member appointed by each of the
chairman and ranking minority member of the
Committee on Appropriations of the House of
Representatives.
(C) 1 member appointed by each of the
chairman and ranking minority member of the
Committee on Commerce, Science, and Transpor-
tation of the Senate.
(D) 1 member appointed by each of the
chairman and ranking minority member of the
Committee on Appropriations of the Senate.
(d) RESTRICTION
ON APPOINTMENT
OF CURRENT
AVIATION EMPLOYEES.—A member appointed under sub-
section (c)(1) may not be an employee of an airline, airport,
or aviation trade association at the time of appointment
or while serving on the panel.
(e) CHAIRMAN.—The Secretary of Transportation, in
consultation with the Secretary of the Treasury, shall des-
ignate a chairman of the panel from among the members
appointed under subsection (c)(1).
(f) CHARTER.—The Secretary of Transportation, in
consultation with the Secretary of the Treasury, shall pro-
vide the panel with a charter of the matters to be evaluated
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and addressed by the panel. The charter, at a minimum,
shall direct the panel to undertake the following:
(1) Evaluate and identify current and expected
airport capital needs and Federal Aviation Adminis-
tration capital and operating needs.
(2) Assess the ability of various financing mech-
anisms to meet airport capital requirements by type
and size of airport. The financing mechanisms to be
assessed under this paragraph include the airport im-
provement program, passenger facility charges, tax-
exempt bonds, State and local assistance, airport pri-
vatization, infrastructure banks, government-spon-
sored enterprises, and leveraging of Federal airport
funding. In conducting the assessment under this
paragraph, the panel shall consider the special prob-
lems of non-hub airports and general aviation air-
ports.
(3) Based on alternative funding scenarios for
the airport improvement program ranging from
elimination of funding to full funding to current
amounts made available, assess and recommend alter-
native financing approaches that will address airport
capital requirements.
(4) Assess the ability of various financing mech-
anisms to fund the operations and capital require-
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ments of the Federal Aviation Administration in a
manner that will provide for future growth in the Na-
tion’s air traffic system, improve the management
and performance of the air traffic control system, pro-
vide for continued safety improvements, and make the
Administration more efficient and effective. The fi-
nancing mechanisms to be assessed under this para-
graph include loan guarantees, financial partnerships
with for-profit private sector entities, multi-year ap-
propriations, revolving loan funds, mandatory spend-
ing authority, authority to borrow, restructured grant
programs, and user fees.
(g) INDEPENDENT AUDIT.—
(1) CONTRACTS.—Immediately following the ap-
pointment of the panel, the panel shall contract with
an entity independent of the Federal Aviation Ad-
ministration and the Department of Transportation
to conduct a complete audit of the financial require-
ments of the Administration, including anticipated
air traffic forecasts, other workload measures, and es-
timated productivity gains which lead to budgetary
requirements.
(2) DEADLINE.—The independent audit shall be
completed no later than 180 days after the date of the
contract award and shall be submitted to the panel.
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(3) FUNDING.—The Administrator of the Federal
Aviation Administration shall make available to the
panel from funds appropriated to the Administration
such sums as may be necessary to enter into a con-
tract under this subsection.
(h) TRAVEL AND PER DIEM.—Each member of the
panel shall be paid actual travel expenses, and per diem
in lieu of subsistence expenses, when away from his or her
usual place of residence, in accordance with section 5703
of title 5, United States Code.
(i) UTILIZATION OF PERSONNEL FROM FAA.—The
Administrator shall make available to the panel such staff,
information, and administrative services and assistance as
may reasonably be required to enable the panel to carry
out its responsibilities under this section.
(j) REPORT.—Not later than 1 year after the date of
the appointment of the last member to the panel under sub-
section (c), the panel shall submit to Congress and the Ad-
ministrator a report on the results of the review conducted
under this section.
(k) GAO ASSESSMENT.—Not later than 180 days after
the date of the enactment of this Act, the Comptroller Gen-
eral shall transmit to the panel and Congress an independ-
ent assessment of airport needs.
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TITLE 
III—AIRPORT 
IMPROVE-
MENT PROGRAM MODIFICA-
TIONS
SEC. 301. INTERMODAL PLANNING.
(a) POLICIES.—Section 47101(g) is amended to read
as follows:
‘‘(g) INTERMODAL PLANNING.—To carry out the policy
of subsection (a)(5) of this section, the Secretary of Trans-
portation shall take each of the following actions:
‘‘(1) COORDINATION IN DEVELOPMENT OF AIR-
PORT PLANS AND PROGRAMS.—Cooperate with State
and local officials in developing airport plans and
programs that are based on overall transportation
needs. The airport plans and programs shall be devel-
oped in coordination with other transportation plan-
ning and considering comprehensive long-range land-
use plans and overall social, economic, environmental,
system performance, and energy conservation objec-
tives. The process of developing airport plans and
programs shall be continuing, cooperative, and com-
prehensive to the degree appropriate to the complexity
of the transportation problems.
‘‘(2) GOALS FOR AIRPORT MASTER AND SYSTEM
PLANS.—Encourage airport sponsors and State and
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local officials to develop airport master plans and
airport system plans that—
‘‘(A) foster effective coordination between
aviation planning and metropolitan planning;
‘‘(B) include an evaluation of aviation
needs within the context of multimodal planning;
and
‘‘(C) are integrated with metropolitan plans
to ensure that airport development proposals in-
clude adequate consideration of land use and
ground transportation access.
‘‘(3) REPRESENTATION OF AIRPORT OPERATORS
ON MPO’S.—Encourage metropolitan planning orga-
nizations, particularly in areas with populations
greater than 200,000, to establish membership posi-
tions for airport operators.’’.
(b) REQUIREMENTS FOR PROJECT GRANT APPLICA-
TIONS.—Section 47106(a) is amended—
(1) by inserting ‘‘, including transportation and
land use plans’’ before the semicolon at the end of
paragraph (1);
(2) by striking ‘‘and’’ at the end of paragraph
(4);
(3) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and
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(4) by adding at the end the following:
‘‘(6) with respect to a project for the location of
an airport, the sponsor has—
‘‘(A) provided the metropolitan planning
organization authorized to conduct metropolitan
planning for the area in which the airport is to
be located with not less than 30 days (i) to re-
view the airport master plan or the airport lay-
out plan in which the project is described and
depicted, and (ii) to submit comments on such
plans to the sponsor; and
‘‘(B) included in the sponsor’s application
to the Secretary the sponsor’s written responses
to any comments made by the metropolitan
planning organization.’’.
SEC. 302. COMPLIANCE WITH FEDERAL MANDATES.
(a) USE
OF AIP GRANTS.—Section 47102(3) is
amended—
(1) in subparagraph (E) by inserting ‘‘or under
section 40117’’ before the period at the end; and
(2) in subparagraph (F) by striking ‘‘paid for by
a grant under this subchapter and’’.
(b) USE OF PASSENGER FACILITY CHARGES.—Section
40117(a)(3) is amended by striking subparagraph (F).
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SEC. 303. RUNWAY MAINTENANCE PROGRAM.
(a) AUTHORITY.—Section 47105 is amended by add-
ing at the end the following:
‘‘(g) RUNWAY MAINTENANCE PROGRAM.—The Sec-
retary may carry out a pilot program in each of fiscal years
1997, 1998, and 1999 under which the Secretary may ap-
prove applications under this subchapter for not more than
10 projects in each of such fiscal years to preserve and ex-
tend the useful life of runways and taxiways at any airport
for which an amount is apportioned under section
47114(d).’’.
(b) INCLUSION IN AIRPORT DEVELOPMENT ACTIVI-
TIES.—Section 47102(3) is amended by adding at the end
the following:
‘‘(H) preserving and extending the useful
life of runways and taxiways at a public-use
airport under the pilot program authorized by
section 47105(g) of this title.’’.
SEC. 304. ACCESS TO AIRPORTS BY INTERCITY BUSES.
Section 47107(a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(18);
(2) by striking the period at the end of para-
graph (19) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
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‘‘(20) the airport owner or operator will permit,
to the maximum extent practicable, intercity buses to
have access to the airport.’’.
SEC. 305. COST REIMBURSEMENT FOR PROJECTS COM-
MENCED PRIOR TO GRANT AWARD.
(a) COST REIMBURSEMENT.—Section 47110(b)(2)(C)
is amended to read as follows:
‘‘(C) if the Government’s share is paid only with
amounts apportioned under paragraphs (1) and (2)
of section 47114(c) of this title and if the cost is in-
curred—
‘‘(i) after September 30, 1996;
‘‘(ii) before a grant agreement is executed
for the project; and
‘‘(iii) in accordance with an airport layout
plan approved by the Secretary and with all
statutory and administrative requirements that
would have been applicable to the project if the
project had been carried out after the grant
agreement had been executed;’’.
(b) USE OF DISCRETIONARY FUNDS.—Section 47110
is amended by adding at the end the following:
‘‘(g) USE OF DISCRETIONARY FUNDS.—A project for
which cost reimbursement is provided under subsection
(b)(2)(C) shall not receive priority consideration with re-
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spect to the use of discretionary funds made available under
section 47115 of this title even if the amounts made avail-
able under paragraphs (1) and (2) of section 47114(c) are
not sufficient to cover the Government’s share of the cost
of project.’’.
SEC. 306. ISSUANCE OF LETTERS OF INTENT.
Section 47110(e) is amended—
(1) by redesignating paragraph (6) as para-
graph (9); and
(2) by inserting after paragraph (5) the follow-
ing:
‘‘(6) COST-BENEFIT
REGULATIONS.—The Sec-
retary shall issue regulations to require a cost-benefit
analysis for any letter of intent to be issued under
paragraph (1) for a project at an airport that each
year has more than .25 percent of the total passenger
boardings in the United States. Until the date on
which such regulations take effect, the Secretary may
not issue a letter of intent under paragraph (1) for
any project that is not yet under construction and
that is to be carried out at an airport described in
the preceding sentence.
‘‘(7) FINANCING PLANS.—The Secretary shall re-
quire airport sponsors to provide, as part of any re-
quest for a letter of intent for a project under para-
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graph (1), specific details on the proposed financing
plan for the project.
‘‘(8) CONSIDERATION.—The Secretary shall con-
sider the effect of a project on overall national air
transportation policy when reviewing requests for let-
ters of intent under paragraph (1).’’.
SEC. 307. SELECTION OF PROJECTS FOR GRANTS FROM DIS-
CRETIONARY FUND.
Section 47115(d) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(2);
(2) by striking the period at the end of para-
graph (3) and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(4) the priority that the State gives to the
project;
‘‘(5) the projected growth in the number of pas-
sengers that will be using the airport at which the
project will be carried out; and
‘‘(6) any increase in the number of passenger
boardings in the preceding 12-month period at the
airport at which the project will be carried out, with
priority consideration to be given to projects at air-
ports at which the number of passenger boardings in-
creased by at least 20 percent as compared to the
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number of passenger boardings in the 12-month pe-
riod preceding such period.’’.
SEC. 308. SMALL AIRPORT FUND.
Section 47116 is amended by adding at the end the
following:
‘‘(d) 
PRIORITY
CONSIDERATION
FOR
CERTAIN
PROJECTS.—In making grants to sponsors described in sub-
section (b)(2), the Secretary shall give priority consider-
ation to multi-year projects for construction of new run-
ways that the Secretary finds are cost beneficial and would
increase capacity in a region of the United States.’’.
SEC. 309. STATE BLOCK GRANT PROGRAM.
(a) 
PARTICIPATING
STATES.—Section 
47128 
is
amended—
(1) in subsection (a) by striking ‘‘7’’ and insert-
ing ‘‘10’’;
(2) in subsection (b)(1)—
(A) by striking ‘‘(1)’’; and
(B) by redesignating subparagraphs (A)
through (E) as paragraphs (1) through (5), re-
spectively; and
(3) by striking subsection (b)(2).
(b) USE
OF
STATE
PRIORITY
SYSTEM.—Section
47128(c) is amended—
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(1) by striking ‘‘(b)(1)(B) or (C)’’ and inserting
‘‘(b)(2) or (b)(3)’’; and
(2) by adding at the end the following: ‘‘In car-
rying out this subsection, the Secretary shall permit
a State to use the priority system of the State if such
system is not inconsistent with the national priority
system.’’.
(c) REPEAL OF EXPIRATION DATE.—
(1) IN GENERAL.—Section 47128 is amended—
(A) by striking ‘‘pilot’’ in the section head-
ing;
(B) by striking ‘‘pilot’’ in subsection (a);
and
(C) by striking subsection (d).
(2) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 471 is amended by striking the item
relating to section 47128 and inserting the following:
‘‘47128. State block grant program.’’.
SEC. 310. PRIVATE OWNERSHIP OF AIRPORTS.
(a) ESTABLISHMENT OF PROGRAM.—
(1) IN GENERAL.—Subchapter I of chapter 471
is amended by adding at the end the following:
‘‘§ 47132. Private ownership of airports
‘‘(a) SUBMISSION OF APPLICATIONS.—If a sponsor in-
tends to sell an airport or lease an airport for a long term
to a person (other than a public agency), the sponsor and
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purchaser or lessee may apply to the Secretary of Transpor-
tation for exemptions under this section.
‘‘(b) APPROVAL
OF APPLICATIONS.—The Secretary
may approve, with respect to not more than 6 airports, ap-
plications submitted under subsection (a) granting exemp-
tions from the following provisions:
‘‘(1) USE OF REVENUES.—
‘‘(A) IN
GENERAL.—The Secretary may
grant an exemption to a sponsor from the provi-
sions of sections 44706(d) and 47107(b) of this
title (and any other law, regulation, or grant as-
surance) to the extent necessary to permit the
sponsor to recover from the sale or lease of the
airport such amount as may be approved—
‘‘(i) by at least 60 percent of the air
carriers serving the airport; and
‘‘(ii) by the air carrier or air carriers
whose aircraft landing at the airport dur-
ing the preceding calendar year had a total
landed weight during the preceding cal-
endar year of at least 60 percent of the total
landed weight of all aircraft landing at the
airport during such year.
‘‘(B) LANDED WEIGHT DEFINED.—In this
paragraph, the term ‘landed weight’ means the
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weight of aircraft transporting passengers or
cargo, or both, in intrastate, interstate, and for-
eign air transportation, as the Secretary deter-
mines under regulations the Secretary prescribes.
‘‘(2) REPAYMENT
REQUIREMENTS.—The Sec-
retary may grant an exemption to a sponsor from the
provisions of sections 47107 and 47152 of this title
(and any other law, regulation, or grant assurance)
to the extent necessary to waive any obligation of the
sponsor to repay to the Federal Government any
grants, or to return to the Federal Government any
property, received by the airport under this title, the
Airport and Airway Improvement Act of 1982, or
any other law.
‘‘(3) COMPENSATION
FROM
AIRPORT
OPER-
ATIONS.—The Secretary may grant an exemption to
a purchaser or lessee from the provisions of sections
44706(d) and 47107(b) of this title (and any other
law, regulation, or grant assurance) to the extent nec-
essary to permit the purchaser or lessee to earn com-
pensation from the operations of the airport.
‘‘(c) TERMS AND CONDITIONS.—The Secretary may
approve an application under subsection (b) only if the Sec-
retary finds that the sale or lease agreement includes provi-
sions satisfactory to the Secretary to ensure the following:
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‘‘(1) The airport will continue to be available for
public use on reasonable terms and conditions and
without unjust discrimination.
‘‘(2) The operation of the airport will not be in-
terrupted in the event that the purchaser or lessee be-
comes insolvent or seeks or becomes subject to any
State or Federal bankruptcy, reorganization, insol-
vency, liquidation, or dissolution proceeding or any
petition or similar law seeking the dissolution or re-
organization of the purchaser or lessee or the appoint-
ment of a receiver, trustee, custodian, or liquidator
for the purchaser or lessee or a substantial part of the
purchaser or lessee’s property, assets, or business.
‘‘(3) The purchaser or lessee will maintain and
improve the facilities of the airport and will submit
to the Secretary a plan for carrying out such mainte-
nance and improvements.
‘‘(4) Every fee of the airport imposed on an air
carrier on the day before the date of the sale or lease
of the airport will not increase faster than the rate
of inflation unless a higher amount is approved—
‘‘(A) by at least 60 percent of the air car-
riers serving the airport; and
‘‘(B) by the air carrier or air carriers whose
aircraft landing at the airport during the pre-
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ceding calendar year had a total landed weight
during the preceding calendar year of at least 60
percent of the total landed weight of all aircraft
landing at the airport during such year.
‘‘(5) Safety and security at the airport will be
maintained at the highest possible levels.
‘‘(6) The adverse effects of noise from operations
at the airport will be mitigated to the same extent as
at a public airport.
‘‘(7) Any adverse effects on the environment from
airport operations will be mitigated to the same ex-
tent as at a public airport.
‘‘(8) Any collective bargaining agreement that
covers employees of the airport and is in effect on the
date of the sale or lease of the airport will not be ab-
rogated by the sale or lease.
‘‘(d) PARTICIPATION OF CERTAIN AIRPORTS.—If the
Secretary approves under subsection (b) applications with
respect to 6 airports, at least one of the airports must be
an airport that is not a commercial service airport.
‘‘(e) PASSENGER FACILITY FEES; APPORTIONMENTS;
SERVICE CHARGES.—Notwithstanding that the sponsor of
an airport receiving an exemption under subsection (b) is
not a public agency, the sponsor shall not be prohibited
from—
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‘‘(1) imposing a passenger facility fee under sec-
tion 40117 of this title;
‘‘(2) receiving apportionments under section
47114 of this title; or
‘‘(3) collecting reasonable rental charges, landing
fees, and other service charges from aircraft operators
under section 40116(e)(2) of this title.
‘‘(f) EFFECTIVENESS OF EXEMPTIONS.—An exemption
granted under subsection (b) shall continue in effect only
so long as the facilities sold or leased continue to be used
for airport purposes.
‘‘(g) REVOCATION
OF EXEMPTIONS.—The Secretary
may revoke an exemption issued to a purchaser or lessee
of an airport under subsection (b)(3) if, after providing the
purchaser or lessee with notice and an opportunity to be
heard, the Secretary determines that the purchaser or lessee
has knowingly violated any of the terms specified in sub-
section (c) for the sale or lease of the airport.
‘‘(h) NONAPPLICATION OF PROVISIONS TO AIRPORTS
OWNED BY PUBLIC AGENCIES.—The provisions of this sec-
tion requiring the approval of air carriers in determina-
tions concerning the use of revenues, and imposition of fees,
at an airport shall not be extended so as to apply to any
airport owned by a public agency.’’.
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(2) CONFORMING AMENDMENT.—The table of sec-
tions for such chapter is further amended by adding
at the end the following:
‘‘47132. Private ownership of airports.’’.
(b) TAXATION.—Section 40116(b) is amended—
(1) by striking ‘‘a State or’’ and inserting ‘‘a
State, a’’; and
(2) by inserting after ‘‘of a State’’ the following:
‘‘, and any person that has purchased or leased an
airport under section 47132 of this title’’.
(c) RESOLUTION OF AIRPORT-AIR CARRIER DISPUTES
CONCERNING AIRPORT FEES.—Section 47129(a) is amend-
ed by adding at the end the following:
‘‘(4) FEES IMPOSED BY PRIVATELY-OWNED AIR-
PORTS.—In evaluating the reasonableness of a fee im-
posed by an airport receiving an exemption under
section 47132 of this title, the Secretary shall consider
whether the airport has complied with section
47132(c)(4).’’.
SEC. 311. USE OF NOISE SET-ASIDE FUNDS BY NON-AIR-
PORT SPONSORS.
Section 47505 is amended—
(1) by redesignating subsection (b) as subsection
(c);
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(2) in subsection (c), as so redesignated, by strik-
ing ‘‘subsection (a) of’’ and inserting ‘‘subsection (a)
or (b) of’’; and
(3) by inserting after subsection (a) the follow-
ing:
‘‘(b) GRANTS TO NON-AIRPORT SPONSORS.—
‘‘(1) AUTHORITY.—The Secretary may make a
grant under this subsection to a State or unit of local
government that is not the owner or operator of the
airport for preparation of an airport land use com-
patibility plan or implementation of an airport land
use compatibility project.
‘‘(2) PLANNING AUTHORITY.—In order to be eli-
gible to receive a grant under this subsection for prep-
aration of an airport land use compatibility plan, the
State or unit of local government must have authority
to plan and adopt land use control measures, includ-
ing zoning, in the planning area.
‘‘(3) COORDINATION OF PLANNING ACTIVITIES.—
‘‘(A) CONSISTENCY
WITH
OTHER
PLAN-
NING.—An airport land use compatibility plan
prepared by a State or unit of local government
under this subsection may not duplicate or be in-
consistent with an airport noise compatibility
program prepared by an airport operator under
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this chapter or with other planning carried out
by the airport operator.
‘‘(B) CONSULTATION WITH AIRPORT OWN-
ERS AND OPERATORS.—A State or unit of local
government receiving a grant under this sub-
section for preparation of an airport land use
compatibility plan shall consult with the owner
or operator of the airport for which the plan is
being prepared regarding any recommended air-
port land use compatibility measure identified
in the plan and any aviation data on which
such recommendation is made.
‘‘(4) APPROVAL OF AIRPORT OWNER OR OPERA-
TOR REQUIRED.—The Secretary may make a grant to
a State or unit of local government under this sub-
section for preparation of an airport land use com-
patibility plan or implementation of an airport land
use compatibility project only after receiving the ap-
proval of the owner or operator of the airport for
which the plan or project is being prepared or imple-
mented. Such approval shall be based on whether the
plan or program, including the use of any noise expo-
sure contours on which the plan or project is based,
has been coordinated with the airport and is consist-
ent with the airport’s operations and planning.
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‘‘(5) WRITTEN
ASSURANCES.—The Secretary
may make a grant to a State or unit of local govern-
ment under this subsection only after receiving from
the State or unit of local government such written as-
surances as the Secretary determines necessary to
achieve the purposes of this subsection.
‘‘(6) GUIDELINES.—The Secretary may establish
guidelines in carrying out this subsection.
‘‘(7) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply:
‘‘(A) AIRPORT
COMPATIBLE
LAND
USE.—
The term ‘airport compatible land use’ means
any land use that is usually compatible with—
‘‘(i) the noise levels associated with an
airport, as established under this chapter;
‘‘(ii) airport design standards issued
by the Administrator; and
‘‘(iii) regulations issued to carry out
section 44718 of this title.
‘‘(B) AIRPORT
LAND
USE
COMPATIBILITY
PLAN.—The term ‘airport land use compatibility
plan’ means the product of a process to deter-
mine the extent, type, nature, location, and tim-
ing of measures to improve the compatibility of
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land use with the existing forecast level of avia-
tion activity at an airport.
‘‘(C) AIRPORT
LAND
USE
COMPATIBILITY
PROJECT.—The term ‘airport land use compat-
ibility project’ means a project that is contained
in an airport land use compatibility plan and
determined by the Administrator to enhance air-
port compatible land use.’’.
TITLE IV—MISCELLANEOUS
PROVISIONS
SEC. 401. PURCHASE OF HOUSING UNITS.
Section 40110 is amended—
(1) by redesignating subsection (b) as subsection
(c); and
(2) by inserting after subsection (a) the follow-
ing:
‘‘(b) PURCHASE OF HOUSING UNITS.—
‘‘(1) AUTHORITY.—In carrying out this part, the
Administrator may purchase a housing unit (includ-
ing a condominium or a housing unit in a building
owned by a cooperative) that is located outside the
contiguous United States if the cost of the unit is
$200,000 or less.
‘‘(2) CONTINUING OBLIGATIONS.—Notwithstand-
ing section 1341 of title 31, the Administrator may
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purchase a housing unit under paragraph (1) even if
there is an obligation thereafter to pay necessary and
reasonable fees duly assessed upon such unit, includ-
ing fees related to operation, maintenance, taxes, and
insurance.
‘‘(3) CERTIFICATION
TO
CONGRESS.—The Ad-
ministrator may purchase a housing unit under
paragraph (1) only if, at least 30 days before com-
pleting the purchase, the Administrator transmits to
the Committee on Transportation and Infrastructure
of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate
a report containing—
‘‘(A) a description of the housing unit and
its price;
‘‘(B) a certification that the price does not
exceed the median price of housing units in the
area; and
‘‘(C) a certification that purchasing the
housing unit is the most cost-beneficial means of
providing necessary accommodations in carrying
out this part.
‘‘(4) PAYMENT
OF
FEES.—The Administrator
may pay, when due, fees resulting from the purchase
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of a housing unit under this subsection from any
amounts made available to the Administrator.’’.
SEC. 402. TECHNICAL CORRECTION RELATING TO STATE
TAXATION.
Section 40116(b) is amended by striking ‘‘subsection
(c) of this section and’’.
SEC. 403. USE OF PASSENGER FACILITY FEES FOR DEBT FI-
NANCING PROJECT.
Section 40117(a)(3) is amended by adding at the end
the following:
‘‘(G) for debt financing of a terminal devel-
opment project at a commercial service airport
that each year has .05 percent or less of the total
passenger boardings in the United States if con-
struction began on the project after November 5,
1988, and before November 5, 1990, and the eli-
gible agency certifies that no other eligible air-
port-related projects affecting safety, security, or
capacity will be deferred by the debt financing
project.’’.
SEC. 404. PROTECTION OF VOLUNTARILY SUBMITTED IN-
FORMATION.
(a) IN GENERAL.—Chapter 401 is amended by redesig-
nating section 40120 as section 40121 and by inserting
after section 40119 the following:
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‘‘§ 40120. Protection of voluntarily submitted informa-
tion
‘‘(a) GENERAL RULE.—Notwithstanding any other
provision of law, neither the Administrator of the Federal
Aviation Administration, nor any agency receiving infor-
mation from the Administrator, may disclose voluntarily
provided safety or security related information if the Ad-
ministrator finds that—
‘‘(1) the disclosure of the information would in-
hibit the voluntary provision of that type of informa-
tion;
‘‘(2) the receipt of that type of information
would aid in fulfilling the Administrator’s safety and
security responsibilities; and
‘‘(3) the withholding of the information would
not be inconsistent with the Administrator’s safety
and security responsibilities.
‘‘(b) REGULATIONS.—The Administrator shall issue
regulations to carry out this section.’’.
(b) CONFORMING AMENDMENT.—The table of sections
for chapter 401 is amended by striking the item relating
to section 40120 and inserting the following:
‘‘40120. Protection of voluntarily submitted information.
‘‘40121. Relationship to other laws.’’.
SEC. 405. SUPPLEMENTAL TYPE CERTIFICATES.
Section 44704 is amended—
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(1) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(2) by inserting after subsection (a) the follow-
ing:
‘‘(b) SUPPLEMENTAL TYPE CERTIFICATES.—
‘‘(1) ISSUANCE.—The Administrator may issue a
type certificate designated as a supplemental type cer-
tificate for a change to an aircraft, aircraft engine,
propeller, or appliance.
‘‘(2) CONTENTS.—A supplemental type certifi-
cate issued under paragraph (1) shall consist of the
change to the aircraft, aircraft engine, propeller, or
appliance with respect to the previously issued type
certificate for the aircraft, aircraft engine, propeller,
or appliance.
‘‘(3) REQUIREMENT.—If the holder of a supple-
mental type certificate agrees to permit another per-
son to use the certificate to modify an aircraft, air-
craft engine, propeller, or appliance, the holder shall
provide the other person with written evidence, in a
form acceptable to the Administrator, of that agree-
ment. A person may change an aircraft, aircraft en-
gine, propeller, or appliance based on a supplemental
type certificate only if the person requesting the
change is the holder of the supplemental type certifi-
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cate or has permission from the holder to make the
change.’’.
SEC. 406. RESTRICTION ON USE OF REVENUES.
(a) IN GENERAL.—Section 44706 is amended by add-
ing at the end the following:
‘‘(d) USE OF REVENUES.—
‘‘(1) PROHIBITION.—A person holding an air-
port operating certificate under this section may not
expend local taxes on aviation fuel (except taxes in ef-
fect on December 30, 1987) or the revenues generated
by the airport for any purpose other than the capital
or operating costs of—
‘‘(A) the airport;
‘‘(B) the local airport system; or
‘‘(C) other local facilities owned or operated
by the person and directly and substantially re-
lated to the air transportation of passengers or
property.
‘‘(2) EXCEPTIONS.—Paragraph (1) does not
apply if a provision enacted not later than September
2, 1982, in a law controlling financing by the owner
or operator, or a covenant or assurance in a debt obli-
gation issued not later than September 2, 1982, by
the owner or operator, provides that the revenues, in-
cluding local taxes on aviation fuel at public airports,
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from any of the facilities of the owner or operator, in-
cluding the airport, be used to support not only the
airport but also the general debt obligations or other
facilities of the owner or operator.
‘‘(3) AUTHORITY
TO
ISSUE
WAIVERS
TO
AIR-
PORTS NOT RECEIVING GRANT ASSISTANCE.—The Ad-
ministrator may waive the application of paragraph
(1) with respect to any airport that has not received
grant assistance under chapter 471 of this title or the
Airport and Airway Improvement Act of 1982 in the
10-year period ending on the date of the enactment of
this subsection.
‘‘(4) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—This subsection does not prevent the use of a
State tax on aviation fuel to support a State aviation
program or the use of airport revenue on or off the
airport for a noise mitigation purpose.’’.
(b) PENALTIES.—Section 46301(a)(5) is amended to
read as follows:
‘‘(5) PENALTY FOR DIVERSION OF AVIATION REV-
ENUES.—The amount of a civil penalty assessed
under this section for a violation of section 47107(b)
of this title (or any assurance made under such sec-
tion) or section 44706(d) of this title may be in-
creased above the otherwise applicable maximum
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amount under this section to an amount not to exceed
3 times the amount of revenues that are used in viola-
tion of such section.’’.
SEC. 407. CERTIFICATION OF SMALL AIRPORTS.
(a) IN GENERAL.—Section 44706(a) is amended—
(1) by redesignating paragraph (2) as para-
graph (3);
(2) by inserting after paragraph (1) the follow-
ing:
‘‘(2) that is not located in the State of Alaska
and serves any scheduled passenger operation of an
air carrier operating aircraft designed for more than
9 passenger seats but less than 31 passenger seats;
and’’;
(3) by striking ‘‘and’’ at the end of paragraph
(3), as redesignated by paragraph (1) of this sub-
section;
(4) by striking ‘‘(3) when’’ and inserting ‘‘if’’;
and
(5) by moving the matter following paragraph
(3), as redesignated by paragraph (1) of this sub-
section, to the left flush full measure.
(b) COMMUTER AIRPORTS.—Section 44706 is amended
by adding at the end the following:
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‘‘(e) COMMUTER AIRPORTS.—In developing the terms
required by subsection (b) for airports covered by subsection
(a)(2), the Administrator shall identify and consider a rea-
sonable number of regulatory alternatives and select from
such alternatives the least costly, most cost-effective or the
least burdensome alternative that will provide comparable
safety at airports described in subsections (a)(1) and
(a)(2).’’.
(c) EFFECTIVE
DATE.—Section 44706 is further
amended by adding at the end the following:
‘‘(f) EFFECTIVE DATE.—Any regulation establishing
the terms required by subsection (b) for airports covered by
subsection (a)(2) shall not take effect until such regulation,
and a report on the economic impact of the regulation on
air service to the airports covered by the rule, has been sub-
mitted to Congress and 120 days have elapsed following the
date of such submission.’’.
SEC. 408. DISCRETIONARY AUTHORITY FOR CRIMINAL HIS-
TORY RECORDS CHECKS.
(a) IN GENERAL.—Section 44936(a)(1) is amended—
(1) by redesignating subparagraphs (A) and (B)
as clauses (i) and (ii), respectively;
(2) by striking ‘‘(1) The Administrator’’ and in-
serting the following:
‘‘(1) EMPLOYEES.—
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‘‘(A) PERSONS WITH ACCESS TO AIRCRAFT
AND
OTHER
SECURED
AREAS.—The Adminis-
trator’’;
(3) by moving the remainder of the text of sub-
paragraph (A) (as designated by paragraph (2) of
this subsection), including clauses (i) and (ii) (as des-
ignated by paragraph (1) of this subsection), 2 ems
to the right; and
(4) by adding at the end the following:
‘‘(B) PERSONS RESPONSIBLE FOR SCREEN-
ING PASSENGERS AND PROPERTY.—
‘‘(i) IN GENERAL.—The Administrator
may require by regulation that an employ-
ment investigation (including a criminal
history record check in cases in which the
employment investigation reveals a gap in
employment of 12 months or more that the
individual does not satisfactorily account
for) be conducted for individuals who will
be responsible for screening passengers and
property under section 44901 of this title
and their supervisors.
‘‘(ii) SPECIAL RULE.—If an individual
requires a criminal history record check
under clause (i), the individual may be em-
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ployed as a screener until the check is com-
pleted if the individual is subject to super-
vision.’’.
(b) CONFORMING AMENDMENTS.—Section 44936(a)(2)
is amended—
(1) by striking ‘‘(2) An air carrier’’ and insert-
ing the following:
‘‘(2) RESPONSIBILITY
OF
AIR
CARRIERS, FOR-
EIGN AIR CARRIERS, AND AIRPORT OPERATORS.—An
air carrier’’; and
(2) by moving the remainder of the text of the
paragraph 2 ems to the right.
(c) APPLICABILITY.—The amendment made by sub-
section (a)(4) shall not apply to an individual employed
as a screener, or a supervisor of screeners, on the day before
the date of the enactment of this Act.
SEC. 409. IMPOSITION OF FEES.
(a) IN GENERAL.—Chapter 453 is amended by adding
at the end the following:
‘‘§ 45304. Prohibition on imposition of unauthorized
fees; fees for services provided to certain
aircraft
‘‘(a) PROHIBITION.—Notwithstanding any other pro-
vision of law, the Administrator of the Federal Aviation
Administration shall not impose any fee that is not in effect
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on the date of the enactment of this section and that is not
authorized by law.
‘‘(b) AUTHORITY TO IMPOSE FEES.—The Adminis-
trator is authorized to establish a schedule of fees (and a
collection process for such fees), to be effective not later than
October 1, 1996, for services provided by the Administration
to aircraft that neither take off from nor land in the United
States. The schedule shall establish the fees at levels that
will recover $30,000,000 in the first year in which the fees
are implemented.’’.
(b) CONFORMING AMENDMENT.—The table of sections
for such chapter is amended by adding at the end the follow-
ing new item:
‘‘45304. Prohibition on imposition of unauthorized fees; fees for services provided
to certain aircraft.’’.
SEC. 410. AUTHORITY TO CLOSE AIRPORT LOCATED NEAR
CLOSED OR REALIGNED MILITARY BASE.
Notwithstanding any other provision of a law, rule,
or grant assurance, an airport that is not a commercial
service airport may be closed by its sponsor without any
obligation to repay grants made under chapter 471 of title
49, United States Code, the Airport and Airway Improve-
ment Act of 1982, or any other law if the airport is located
within 3 miles of a military base which has been closed
or realigned.
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SEC. 411. CONSTRUCTION OF RUNWAYS.
Notwithstanding section 332 of the Department of
Transportation and Related Agencies Appropriations Act,
1996 (109 Stat. 457) or any other provision of law that
specifically restricts the number of runways at a single
international airport, the Secretary of Transportation may
obligate funds under chapters 471 and 481 of title 49, Unit-
ed States Code, for any project to construct a new runway
at such airport, unless this section is expressly repealed.
SEC. 412. GADSDEN AIR DEPOT, ALABAMA.
(a) AUTHORITY TO GRANT WAIVERS.—Notwithstand-
ing section 16 of the Federal Airport Act (as in effect on
May 4, 1949), the Secretary is authorized, subject to the
provisions of section 47153 of title 49, United States Code,
and the provisions of subsection (b) of this section, to waive
any of the terms contained in the deed of conveyance dated
May 4, 1949, under which the United States conveyed cer-
tain property to the city of Gadsden, Alabama, for airport
purposes.
(b) CONDITIONS.—Any waiver granted under sub-
section (a) shall be subject to the following conditions:
(1) The city of Gadsden, Alabama, shall agree
that, in conveying any interest in the property which
the United States conveyed to the city by a deed de-
scribed in subsection (a), the city will receive an
amount for such interest which is equal to the fair
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market value of such interest (as determined pursuant
to regulations issued by the Secretary).
(2) Any such amount so received by the city
shall be used by the city for the development, improve-
ment, operation, or maintenance of a public airport,
lands (including any improvements thereto) which
produce revenues that are used for airport develop-
ment purposes, or both.
SEC. 413. REGULATIONS AFFECTING INTRASTATE AVIATION
IN ALASKA.
In modifying regulations contained in title 14, Code
of Federal Regulations, in a manner affecting intrastate
aviation in Alaska, the Administrator of the Federal Avia-
tion Administration shall consider the extent to which Alas-
ka is not served by transportation modes other than avia-
tion, and shall establish such regulatory distinctions as the
Administrator considers appropriate.
SEC. 414. WESTCHESTER COUNTY AIRPORT, NEW YORK.
Notwithstanding sections 47107(b) and 44706(d) of
title 49, United States Code, and any other law, regulation,
or grant assurance, all fees received by Westchester County
Airport in the State of New York may be paid into the
treasury of Westchester County pursuant to section 119.31
of the Westchester County Charter if the Secretary finds
that the expenditures from such treasury for the capital and
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operating costs of the Airport after December 31, 1990, have
been and will be equal to or greater than the fees that such
treasury receives from the Airport.
SEC. 415. BEDFORD AIRPORT, PENNSYLVANIA.
If the Administrator of the Federal Aviation Adminis-
tration decommissions an instrument landing system in
Pennsylvania, the Administrator shall, if feasible, transfer
and install the system at Bedford Airport, Pennsylvania.
SEC. 416. LOCATION OF DOPPLER RADAR STATIONS, NEW
YORK.
(a) PROHIBITION.—No Federal funds may be used for
the construction of a Doppler radar station at the Coast
Guard station in Brooklyn, New York.
(b) CONSTRUCTION OF OFFSHORE PLATFORMS.—
(1) STUDY.—The Administrator of the Federal
Aviation Administration shall conduct a study of the
feasibility of constructing 2 offshore platforms to serve
as sites for the location of Doppler radar stations for
John 
F. 
Kennedy 
International 
Airport 
and
LaGuardia Airport in New York City, New York.
(2) REPORT.—Not later than 1 year after the
date of the enactment of this Act, the Administrator
shall transmit to Congress a report on the results of
the study conducted under paragraph (1), including
proposed locations for the offshore platforms. Such lo-
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cations shall be as far as possible from populated
areas while providing appropriate safety measures for
John 
F. 
Kennedy 
International 
Airport 
and
LaGuardia Airport.
(c) LIMITATION.—The Administrator shall not begin
construction of a Doppler radar station for John F. Ken-
nedy International Airport or LaGuardia Airport at any
location before submitting a report under subsection (b).
SEC. 417. WORCESTER MUNICIPAL AIRPORT, MASSACHU-
SETTS.
The Secretary of Transportation shall take such ac-
tions as may be necessary to improve the safety of aircraft
landing at Worcester Municipal Airport, Massachusetts, in-
cluding, if appropriate, providing air traffic radar service
to such airport from the Providence Approach Radar Con-
trol in Coventry, Rhode Island.
SEC. 418. AIRCRAFT NOISE OMBUDSMAN.
Section 106 is amended by redesignating subsection
(k), as amended by section 103 of this Act, as subsection
(l) and by inserting after subsection (j) the following:
‘‘(k) AIRCRAFT NOISE OMBUDSMAN.—
‘‘(1) ESTABLISHMENT.—There shall be in the
Administration an Aircraft Noise Ombudsman.
‘‘(2) 
GENERAL
DUTIES
AND
RESPONSIBIL-
ITIES.—The Ombudsman shall—
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‘‘(A) be appointed by the Administrator;
‘‘(B) serve as a liaison with the public on
issues regarding aircraft noise; and
‘‘(C) be consulted when the Administration
proposes changes in aircraft routes so as to min-
imize any increases in aircraft noise over popu-
lated areas.’’.
TITLE V—METROPOLITAN
WASHINGTON AIRPORTS
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Metropolitan Washing-
ton Airports Amendments Act of 1996’’.
SEC. 502. AMENDMENT OF METROPOLITAN WASHINGTON
AIRPORTS ACT OF 1986.
Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or
other provision of the Metropolitan Washington Airports
Act of 1986 (100 Stat. 3341–376 et seq.).
SEC. 503. USE OF LEASED PROPERTY.
Section 6005(c)(2) is amended by inserting before the
period at the end of the second sentence the following:
‘‘which are not inconsistent with the needs of aviation’’.
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SEC. 504. BOARD OF DIRECTORS.
(a) APPOINTMENT OF ADDITIONAL MEMBERS.—Sec-
tion 6007(e)(1) is amended—
(1) in the matter preceding subparagraph (A) by
striking ‘‘11’’ and inserting ‘‘15’’;
(2) in subparagraph (D) by striking ‘‘one mem-
ber’’ and inserting ‘‘five members’’.
(b) RESTRICTIONS.—Section 6007(e)(2) is amended by
striking ‘‘except that’’ and all that follows through the pe-
riod and inserting ‘‘except that the members appointed by
the President shall be registered voters of States other than
Maryland, Virginia, or the District of Columbia.’’.
(c) TERMS.—Section 6007(e)(3) is amended—
(1) in subparagraph (B) by striking ‘‘and’’ at
the end;
(2) in subparagraph (C) by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) by the President after the date of the
enactment of this subparagraph, 2 shall be ap-
pointed for 4 years.
A member may serve after the expiration of that
member’s term until a successor has taken office.’’.
(d) VACANCIES.—Section 6007(e) is further amended
by redesignating paragraphs (4) and (5) as paragraphs (7)
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and (8), respectively, and by inserting after paragraph (3)
the following:
‘‘(4) VACANCIES.—A vacancy in the board of di-
rectors shall be filled in the manner in which the
original appointment was made. Any member ap-
pointed to fill a vacancy occurring before the expira-
tion of the term for which the member’s predecessor
was appointed shall be appointed only for the re-
mainder of such term.’’.
(e) POLITICAL
PARTIES
OF
PRESIDENTIAL
AP-
POINTEES.—Section 6007(e) is further amended by insert-
ing after paragraph (4), as inserted by subsection (d) of
this section, the following:
‘‘(5) POLITICAL PARTIES OF PRESIDENTIAL AP-
POINTEES.—Not more than 3 of the members of the
board appointed by the President may be of the same
political party.’’.
(f) DUTIES OF PRESIDENTIAL APPOINTEES.—Section
6007(e) is further amended by inserting after paragraph
(5), as inserted by subsection (e) of this section, the follow-
ing:
‘‘(6) DUTIES OF PRESIDENTIAL APPOINTEES.—
In carrying out their duties on the board, members of
the board appointed by the President shall ensure that
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adequate consideration is given to the national inter-
est.’’.
(g) 
REQUIRED
NUMBER
OF
VOTES.—Section
6007(e)(8), as redesignated by subsection (d) of this section,
is amended by striking ‘‘Seven’’ and inserting ‘‘Nine’’.
SEC. 505. FEDERAL ADVISORY COMMISSION.
(a) IN GENERAL.—Section 6007(f) is amended by
striking the subsection designation, heading, and paragraph
(1) and inserting the following:
‘‘(f) FEDERAL ADVISORY COMMISSION.—
‘‘(1) COMPOSITION.—There is established a Fed-
eral Advisory Commission of the Airports Authority
which shall represent the interests of users of the Met-
ropolitan Washington Airports and shall be composed
of 9 members appointed by the Secretary of Transpor-
tation.’’.
(b) REFERENCES TO BOARD OF REVIEW.—The Act is
amended—
(1) in section 6007(f) by striking ‘‘Board of Re-
view’’ each place it appears and inserting ‘‘Federal
Advisory Commission’’;
(2) in section 6007(f)(3)—
(A) in the third sentence by striking
‘‘Board’’ each place it appears and inserting
‘‘Commission’’; and
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(B) in the fourth sentence by striking
‘‘Board’’ the second place it appears and insert-
ing ‘‘Commission’’;
(3) in the second sentence of section 6007(f)(6),
as redesignated by section 508(a) of this Act, by strik-
ing ‘‘Board’’ and inserting ‘‘Commission’’;
(4) in section 6007(f)(7), as redesignated by sec-
tion 508(a) of this Act, by striking ‘‘Board’’ the sec-
ond place it appears and inserting ‘‘Commission’’;
and
(5) in section 6009(b) by striking ‘‘Board of Re-
view’’ and inserting ‘‘Federal Advisory Commission’’.
(c) OTHER
CONFORMING
AMENDMENTS.—Section
6007(f)(2) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘paragraphs (1)(A) and
(1)(B)’’ and inserting ‘‘paragraph (1)’’; and
(B) by striking the second sentence; and
(2) in subparagraph (D) by striking ‘‘and lists
have been provided for appointments to fill such va-
cancies’’.
SEC. 506. REVIEW PROCEDURE.
(a) SUBMISSION OF ACTIONS.—Section 6007(f)(4)(A)
is amended to read as follows:
‘‘(A) SUBMISSION REQUIRED.—
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‘‘(i) IN GENERAL.—An action of the
Airports Authority described in subpara-
graph (B) shall be submitted to the Federal
Advisory Commission, the Speaker of the
House of Representatives, and the President
Pro Tempore of the Senate at least 60 days
before the action is to become effective.
‘‘(ii) URGENT AND COMPELLING CIR-
CUMSTANCES.—An action submitted to the
Federal Advisory Commission and Congress
in accordance with clause (i) may become
effective before the expiration of the 60-day
period referred to in clause (i) if the board
of directors certifies, in writing, to the Sec-
retary and Congress that urgent and com-
pelling circumstances exist that signifi-
cantly affect the interests of the traveling
public and will not permit waiting for the
expiration of such 60-day period.’’.
(b) RECOMMENDATIONS.—Section 6007(f)(4)(C) is
amended to read as follows:
‘‘(C) RECOMMENDATIONS.—The Federal Ad-
visory Commission may make to the board of di-
rectors and Congress recommendations regarding
an action within 30 calendar days of its submis-
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sion under this paragraph. Such recommenda-
tions may include a recommendation that the ac-
tion not take effect.’’.
(c) EFFECT OF RECOMMENDATIONS.—
(1) REPEAL.—Section 6007(f)(4) is amended by
striking subparagraph (D) and by redesignating sub-
paragraph (E) as subparagraph (D).
(2) 
CONFORMING
AMENDMENT.—Section
6007(f)(5)(B) is amended by striking ‘‘paragraph
(4)(D)(ii)’’ and inserting ‘‘paragraph (4)’’.
(d) EXPIRATION OF AUTHORITY.—Section 6007(f)(4)
is amended by adding at the end the following:
‘‘(E) EXPIRATION OF AUTHORITY.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), the authority of the Airports
Authority to take any of the actions de-
scribed in subparagraph (B) shall expire on
April 30, 1997.
‘‘(ii) SPECIAL RULE.—If on any day
after April 29, 1997, all of the members to
be appointed to the board of directors by the
President under subsection (e)(1)(D) are
serving on the board, the authority of the
board referred to in clause (i) shall be effec-
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tive beginning on such day and shall expire
on September 30, 1998.’’.
(e) PROTECTION OF CERTAIN ACTIONS.—Actions taken
by the Metropolitan Washington Airports Authority and
submitted to the Board of Review pursuant to section
6007(f)(4) of the Metropolitan Washington Airports Act of
1986 before the date of the enactment of this Act shall re-
main in effect and shall not be set aside solely by reason
of a judicial order invalidating certain functions of the
Board of Review.
SEC. 507. CONGRESSIONAL DISAPPROVAL PROCEDURES.
(a) COMMITTEE REFERRAL.—Section 6007(f)(5)(C) is
amended—
(1) by striking ‘‘Public Works and Transpor-
tation’’ and inserting ‘‘Transportation and Infra-
structure’’; and
(2) by striking ‘‘Commerce, Science and Tech-
nology’’ and inserting ‘‘Commerce, Science, and
Transportation’’.
(b) HOUSE
PROCEDURE.—Section 6007(f)(5) is
amended—
(1) by striking subparagraphs (D), (E), and (F);
(2) by redesignating subparagraphs (G) and (H)
as subparagraphs (E) and (F), respectively; and
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(3) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) HOUSE PROCEDURE.—When the Com-
mittee of the House has reported a resolution, it
is in order at any time on or after the third day
on which the report on the resolution has been
available to Members pursuant to clause 2(l)(6)
of House Rule XI, for the chairman of the com-
mittee or a designee to move to proceed to the
consideration in the House of the resolution. The
motion is highly privileged, and is not subject to
debate or to intervening motion or otherwise sub-
ject to points of order, nor shall it be in order
to move to reconsider the vote by which the mo-
tion is agreed to or not agreed to. If the motion
is agreed to, the resolution shall be considered in
the House and debatable for not to exceed 2
hours to be equally divided and controlled by the
chairman and the ranking minority member of
the committee. The previous question shall be
considered as ordered on the resolution to final
passage without intervening motion. A motion to
reconsider the vote on passage of the resolution
shall not be in order.’’.
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SEC. 508. OTHER MATTERS RELATING TO FEDERAL ADVI-
SORY COMMISSION.
(a) REQUEST FOR CONSIDERATION OF OTHER MAT-
TERS; PARTICIPATION IN MEETINGS.—Section 6007(f) is
amended by striking paragraphs (6) and (7) and by redes-
ignating paragraphs (8), (9), (10), and (11) as paragraphs
(6), (7), (8), and (9), respectively.
(b) REMOVAL OF FEDERAL ADVISORY COMMISSION
MEMBERS.—Section 6007(f)(9), as redesignated by sub-
section (a) of this section, is amended by striking ‘‘by a
two-thirds vote of the board of directors’’ and inserting ‘‘by
the Secretary of Transportation’’.
SEC. 509. EFFECT OF JUDICIAL ORDERS.
(a) IN GENERAL.—Section 6007 is amended by strik-
ing subsection (h) and by redesignating subsection (i) as
subsection (h).
(b) CONFORMING
AMENDMENT.—Section 6011 is
amended by striking ‘‘Except as provided in section
6007(h), if’’ and inserting ‘‘If’’.
SEC. 510. FEDERAL ADVISORY COMMITTEE ACT.
Section 6007 is further amended by inserting after
subsection (h), as redesignated by section 509(a) of this Act,
the following:
‘‘(i) FEDERAL ADVISORY COMMITTEE ACT.—The Fed-
eral Advisory Committee Act (5 U.S.C. App.) shall not
apply to the Federal Advisory Commission.’’.
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SEC. 511. USE OF DULLES ACCESS HIGHWAY.
The Act is further amended by adding at the end the
following:
‘‘SEC. 6013. USE OF DULLES ACCESS HIGHWAY.
‘‘(a) RESTRICTIONS.—The Airports Authority shall
continue in effect and enforce paragraphs (1) and (2) of
section 4.2 of the Metropolitan Washington Airports Regu-
lations, as in effect on February 1, 1995.
‘‘(b) ENFORCEMENT.—The district courts of the United
States shall have jurisdiction to compel the Airports Au-
thority and its officers and employees to comply with the
requirements of this section. An action may be brought on
behalf of the United States by the Attorney General, or by
any aggrieved party.’’.
SEC. 512. AMENDMENT OF LEASE.
The Secretary of Transportation shall amend the lease
entered into with the Metropolitan Washington Airports
Authority under section 6005(a) of the Metropolitan Wash-
ington Airports Act of 1986 to secure the Airports
Authority’s consent to the amendments made to such Act
by this Act.
SEC. 513. AVAILABILITY OF SLOTS.
(a) IN GENERAL.—Section 41714 of title 49, United
States Code, is amended—
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(1) in subsections (a)(1), (b)(1), and (c)(1) by
striking ‘‘(other than Washington National Airport)’’;
and
(2) by redesignating subsection (h) as subsection
(i) and by inserting after subsection (g) the following:
‘‘(h) LIMITATION ON AUTHORITY TO GRANT EXEMP-
TIONS.—The Secretary shall not issue an exemption under
this section to the requirements of subparts K and S of part
93 of title 14 of the Code of Federal Regulations (pertaining
to slots at high density airports) if the grant of such exemp-
tion would adversely affect safety.’’.
(b) CONFORMING AMENDMENT.—Section 6009(e)(1) is
amended by striking ‘‘The Administrator’’ and inserting
‘‘Except as provided by section 41714 of title 49, United
States Code, the Administrator’’.
TITLE 
VI—RECOMMENDATION
TO COMMITTEE ON WAYS AND
MEANS 
ON 
EXTENSION 
OF
AIRPORT AND AIRWAY TRUST
FUND TAXES AND EXPENDI-
TURE AUTHORITY
The Committee on Transportation and Infrastructure
of the House of Representatives recommends the following
provisions, which are printed in roman and shall have no
HR 3539 RH1S
legal effect, to the Committee on Ways and Means of the
House of Representatives for its consideration:
SEC. ll. EXTENSION OF AIRPORT AND AIRWAY TRUST
FUND EXCISE TAXES.
(a) FUEL TAX.—
(1) Subparagraph (A) of section 4091(b)(3) of
the Internal Revenue Code of 1986 is amended to
read as follows:
‘‘(A) The rate of tax specified in para-
graph (1) shall be 4.3 cents per gallon—
‘‘(i) after December 31, 1995, and be-
fore the date which is 30 days after the
date of the enactment of the Federal Avia-
tion Authorization Act of 1996, and
‘‘(ii) after December 31, 1999.’’
(2) Section 4081(d) of such Code is amended—
(A) by adding at the end the following new
paragraph:
‘‘(3) AVIATION GASOLINE.—After December 31,
1999, the rate of tax specified in subsection
(a)(2)(A)(i) on aviation gasoline shall be 4.3 cents
per gallon.’’, and
(B) by inserting in paragraph (1) ‘‘(other
than the tax on aviation gasoline)’’ after ‘‘sub-
section (a)(2)(A)’’.
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(3) Section 4041(c)(5) of such Code is amended
by inserting ‘‘, and during the period beginning on
the date which is 30 days after the date of the en-
actment of the Federal Aviation Authorization Act
of 1996 and ending on December 31, 1999’’ after
‘‘December 31, 1995’’.
(b) TICKET TAXES.—Sections 4261(g) and 4271(d)
of such Code are each amended by striking ‘‘January 1,
1996’’ and inserting ‘‘January 1, 1996, and to transpor-
tation beginning on or after the date which is 30 days
after the date of the enactment of the Federal Aviation
Authorization Act of 1996 and before January 1, 2000’’.
(c) TRANSFERS TO AIRPORT AND AIRWAY TRUST
FUND.—
(1) Subsection (b) of section 9502 of such Code
is amended by striking ‘‘January 1, 1996’’ each
place it appears and inserting ‘‘January 1, 2000’’.
(2) Paragraph (3) of section 9502(f) of such
Code is amended to read as follows:
‘‘(3) TERMINATION.—Notwithstanding the pre-
ceding provisions of this subsection, the Airport and
Airway Trust Fund financing rate shall be zero with
respect to—
‘‘(A) taxes imposed after December 31,
1995, and before the date which is 30 days
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after the date of the enactment of the Federal
Aviation Authorization Act of 1996, and
‘‘(B) taxes received after December 31,
1999.’’
(3) Subsection (d) of section 9502 of such Code
is amended by adding at the end the following new
paragraph:
‘‘(5) TRANSFERS FROM AIRPORT AND AIRWAY
TRUST FUND ON ACCOUNT OF REFUNDS OF TAXES
ON TRANSPORTATION BY AIR.—The Secretary of the
Treasury shall pay from time to time from the Air-
port and Airway Trust Fund into the general fund
of the Treasury amounts equivalent to the amounts
paid after December 31, 1995, under section 6402
(relating to authority to make credits or refunds) or
section 6415 (relating to credits or refunds to per-
sons who collected certain taxes) in respect of taxes
under sections 4261 and 4271.’’
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by
this section shall take effect on the date of the en-
actment of this Act, except that the amendment
made by subsection (b) shall not apply to any
amount paid on or before such date.
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(2) TRANSFERS.—The amendments made by
subsection (c) shall take effect on January 1, 1996.
SEC. ll. EXTENSION OF AIRPORT AND AIRWAY TRUST
FUND EXPENDITURES.
(a) EXTENSION
OF EXPENDITURE AUTHORITY.—
Paragraph (1) of section 9502(d) of the Internal Revenue
Code of 1986 is amended by striking ‘‘October 1, 1996’’
and inserting ‘‘October 1, 1999’’.
(b) EXTENSION OF TRUST FUND PURPOSES.—Sub-
paragraph (A) of section 9502(d)(1) of such Code is
amended by adding before the semicolon at the end ‘‘or
the Federal Aviation Authorization Act of 1996’’.
SEC. ll. RESTORATION AND EXTENSION OF EXEMPTION
FOR COMMERCIAL AVIATION.
(a) IN GENERAL.—Paragraph (2) of section 4092(b)
of the Internal Revenue Code of 1986 (relating to exemp-
tion from certain taxes on fuel used in commercial avia-
tion) is amended to read as follows:
‘‘(2) 4.3 cents per gallon of the rate specified
in section 4091(b)(1) in the case of fuel sold—
‘‘(A) after September 30, 1995, and before
the date which is 30 days after the date of the
enactment of the Federal Aviation Authoriza-
tion Act of 1996, and
‘‘(B) after December 31, 1999.’’
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(b) CONFORMING AMENDMENTS.—
(1) Subparagraph (B) of section 6421(f)(2) of
such Code is amended to read as follows:
‘‘(B) in aviation which is not noncommer-
cial aviation (as so defined) with respect to the
tax imposed by section 4081 at—
‘‘(i) the Leaking Underground Stor-
age Tank Trust Fund financing rate, and
‘‘(ii) so much of the rate specified in
section 4081(a)(2)(A) as does not exceed
4.3 cents per gallon in the case of fuel pur-
chased—
‘‘(I) after September 30, 1995,
and before the date which is 30 days
after the date of the enactment of the
Federal Aviation Authorization Act of
1996, and
‘‘(II) after December 31, 1999.’’
(2) Subparagraph (B) of section 6427(l)(4) of
such Code is amended to read as follows:
‘‘(B) so much of the rate specified in sec-
tion 4091(b)(1) as does not exceed 4.3 cents
per gallon in the case of fuel purchased—
‘‘(i) after September 30, 1995, and
before the date which is 30 days after the
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date of the enactment of the Federal Avia-
tion Authorization Act of 1996, and
‘‘(ii) after December 31, 1999.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
SEC. ll. FLOOR STOCKS TAXES ON AVIATION FUEL.
(a) IMPOSITION OF TAX.—
(1) IN GENERAL.—In the case of aviation fuel
on which tax was imposed under section 4091 of the
Internal Revenue Code of 1986 before the tax-in-
crease date described in subsection (c)(1)(A) and
which is held on such date by any person, there is
hereby imposed a floor stocks tax of 17.5 cents per
gallon.
(2) COMMERCIAL AVIATION FUEL ON JANUARY
1, 2000.—In the case of commercial aviation fuel on
which tax was imposed under section 4091 of such
Code before January 1, 2000, and which is held on
such date by any person, there is hereby imposed a
floor stocks tax of 4.3 cents per gallon.
(b) LIABILITY
FOR TAX
AND METHOD
OF PAY-
MENT.—
(1) LIABILITY
FOR
TAX.—A person holding
aviation fuel on a tax-increase date to which the tax
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imposed by subsection (a) applies shall be liable for
such tax.
(2) METHOD OF PAYMENT.—The tax imposed
by subsection (a) shall be paid in such manner as
the Secretary shall prescribe.
(3) TIME FOR PAYMENT.—The tax imposed by
subsection (a) with respect to any tax-increase date
shall be paid on or before the first day of the 7th
month beginning after such tax-increase date.
(c) DEFINITIONS.—For purposes of this section—
(1) TAX INCREASE DATE.—The term ‘‘tax-in-
crease date’’ means—
(A) the date which is 30 days after the
date of the enactment of this Act, and
(B) January 1, 2000.
(2) AVIATION FUEL.—The term ‘‘aviation fuel’’
has the meaning given such term by section 4093 of
such Code.
(3) COMMERCIAL AVIATION FUEL.—The term
‘‘commercial aviation fuel’’ means aviation fuel
which is held on January 1, 2000, for sale or use
in commercial aviation (as defined in section
4092(b) of such Code).
(4) HELD BY A PERSON.—Aviation fuel shall be
considered as ‘‘held by a person’’ if title thereto has
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passed to such person (whether or not delivery to
the person has been made).
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury or his delegate.
(d) EXCEPTION FOR EXEMPT USES.—The tax im-
posed by subsection (a) shall not apply to aviation fuel
held by any person on any tax-increase date exclusively
for any use for which a credit or refund of the entire tax
imposed by section 4091 of such Code is allowable for
aviation fuel purchased on or after such tax-increase date
for such use.
(e) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL.—
(1) IN GENERAL.—No tax shall be imposed by
subsection (a) on aviation fuel held on any tax-in-
crease date by any person if the aggregate amount
of aviation fuel held by such person on such date
does not exceed 2,000 gallons. The preceding sen-
tence shall apply only if such person submits to the
Secretary (at the time and in the manner required
by the Secretary) such information as the Secretary
shall require for purposes of this paragraph.
(2) EXEMPT
FUEL.—For purposes of para-
graph (1), there shall not be taken into account fuel
held by any person which is exempt from the tax im-
posed by subsection (a) by reason of subsection (d).
HR 3539 RH1S
(3) CONTROLLED
GROUPS.—For purposes of
this subsection—
(A) CORPORATIONS.—
(i) IN GENERAL.—All persons treated
as a controlled group shall be treated as 1
person.
(ii) CONTROLLED GROUP.—The term
‘‘controlled group’’ has the meaning given
to such term by subsection (a) of section
1563 of such Code; except that for such
purposes the phrase ‘‘more than 50 per-
cent’’ shall be substituted for the phrase
‘‘at least 80 percent’’ each place it appears
in such subsection.
(B) NONINCORPORATED PERSONS UNDER
COMMON
CONTROL.—Under regulations pre-
scribed by the Secretary, principles similar to
the principles of subparagraph (A) shall apply
to a group of persons under common control
where 1 or more of such persons is not a cor-
poration.
(f) OTHER LAW APPLICABLE.—All provisions of law,
including penalties, applicable with respect to the taxes
imposed by section 4091 of such Code shall, insofar as
applicable and not inconsistent with the provisions of this