H. R. 1758—365
posed contract period in terms of production rate, procurement
rate, and total quantities;
(3) there is a reasonable expectation that throughout the
proposed contract period the Administrator will request appro-
priations for the contract at the level required to avoid cancella-
tion;
(4) there is a stable design for the property to be acquired
and the technical risks associated with the property are not
excessive; and
(5) the estimates of the contract costs and the anticipated
savings from the contract are realistic.
(c) REGULATIONS.—The Administrator shall prescribe regula-
tions for acquiring property under this section to promote the use
of contracts under this section in a way that will allow the most
efficient use of those contracts. The regulations may provide for
a cancellation provision in the contract to the extent the provision
is necessary and in the best interest of the United States. The
provision may include consideration of recurring and nonrecurring
costs of the contractor associated with producing the item to be
delivered under the contract. The regulations shall provide that,
to the extent practicable—
(1) to broaden the aviation industrial base—
(A) a contract under this section shall be used to seek,
retain, and promote the use under that contract of sub-
contractors, vendors, or suppliers; and
(B) on accrual of a payment or other benefit accruing
on a contract under this section to a subcontractor, vendor,
or supplier participating in the contract, the payment or
benefit shall be delivered in the most expeditious way
practicable; and
(2) this section and regulations prescribed under this sec-
tion may not be carried out in a way that precludes or curtails
the existing ability of the Administrator to provide for—
(A) competition in producing items to be delivered
under a contract under this section; or
(B) ending a prime contract when performance is defi-
cient with respect to cost, quality, or schedule.
(d) CONTRACT PROVISIONS.—(1) A contract under this section
may—
(A) be used for the advance procurement of components,
parts, and material necessary to manufacture equipment to
be used in the national airspace system;
(B) provide that performance under the contract after the
first year is subject to amounts being appropriated; and
(C) contain a negotiated priced option for varying the num-
ber of end items to be procured over the period of the contract.
(2) If feasible and practicable, an advance procurement contract
may be made to achieve economic-lot purchases and more efficient
production rates.
(e) CANCELLATION PAYMENT
AND NOTICE
OF CANCELLATION
CEILING.—(1) If a contract under this section provides that perform-
ance is subject to an appropriation being made, it also may provide
for a cancellation payment to be made to the contractor if the
appropriation is not made.
(2) Before awarding a contract under this section containing
a cancellation ceiling of more than $100,000,000, the Administrator
shall give written notice of the proposed contract and cancellation
H. R. 1758—366
ceiling to the Committee on Commerce, Science, and Transportation
of the Senate and the Committee on Public Works and Transpor-
tation of the House of Representatives. The contract may not be
awarded until the end of the 30-day period beginning on the date
of the notice.
(f) ENDING CONTRACTS.—A contract made under this section
shall be ended if amounts are not made available to continue
the contract into a subsequent fiscal year. The cost of ending
the contract may be paid from—
(1) an appropriation originally available for carrying out
the contract;
(2) an appropriation currently available for procuring the
type of property concerned and not otherwise obligated; or
(3) amounts appropriated for payments to end the contract.
§ 40113. Administrative
(a) GENERAL AUTHORITY.—The Secretary of Transportation (or
the Administrator of the Federal Aviation Administration with
respect to aviation safety duties and powers designated to be carried
out by the Administrator) may take action the Secretary or Adminis-
trator, as appropriate, considers necessary to carry out this part,
including conducting investigations, prescribing regulations, stand-
ards, and procedures, and issuing orders.
(b) HAZARDOUS MATERIAL.—In carrying out this part, the Sec-
retary has the same authority to regulate the transportation of
hazardous material by air that the Secretary has under section
5103 of this title. However, this subsection does not prohibit or
regulate the transportation of a firearm (as defined in section
232 of title 18) or ammunition for a firearm, when transported
by an individual for personal use.
(c) 
GOVERNMENTAL
ASSISTANCE.—The 
Secretary 
(or 
the
Administrator of the Federal Aviation Administration with respect
to aviation safety duties and powers designated to be carried out
by the Administrator) may use the assistance of the Administrator
of the National Aeronautics and Space Administration and any
research or technical department, agency, or instrumentality of
the United States Government on matters related to aircraft fuel
and oil, and to the design, material, workmanship, construction,
performance, maintenance, and operation of aircraft, aircraft
engines, propellers, appliances, and air navigation facilities. Each
department, agency, and instrumentality may conduct scientific
and technical research, investigations, and tests necessary to assist
the Secretary or Administrator of the Federal Aviation Administra-
tion in carrying out this part. This part does not authorize duplicat-
ing laboratory research activities of a department, agency, or
instrumentality.
(d) INDEMNIFICATION.—The Administrator of the Federal Avia-
tion Administration may indemnify an officer or employee of the
Administration against a claim or judgment arising out of an act
that the Administrator decides was committed within the scope
of the official duties of the officer or employee.
§ 40114. Reports and records
(a) WRITTEN REPORTS.—(1) Except as provided in this part,
the Secretary of Transportation (or the Administrator of the Federal
Aviation Administration with respect to aviation safety duties and
powers designated to be carried out by the Administrator) shall
H. R. 1758—367
make a written report of each proceeding and investigation under
this part in which a formal hearing was held and shall provide
a copy to each party to the proceeding or investigation. The report
shall include the decision, conclusions, order, and requirements
of the Secretary or Administrator as appropriate.
(2) The Secretary (or the Administrator with respect to aviation
safety duties and powers designated to be carried out by the
Administrator) shall have all reports, orders, decisions, and regula-
tions the Secretary or Administrator, as appropriate, issues or
prescribes published in the form and way best adapted for public
use. A publication of the Secretary or Administrator is competent
evidence of its contents.
(b) PUBLIC RECORDS.—Except as provided in subpart II of this
part, copies of tariffs and arrangements filed with the Secretary
under subpart II, and the statistics, tables, and figures contained
in reports made to the Secretary under subpart II, are public
records. The Secretary is the custodian of those records. A public
record, or a copy or extract of it, certified by the Secretary under
the seal of the Department of Transportation is competent evidence
in an investigation by the Secretary and in a judicial proceeding.
§ 40115. Withholding information
(a) OBJECTIONS TO DISCLOSURE.—(1) A person may object to
the public disclosure of information—
(A) in a record filed under this part; or
(B) obtained under this part by the Secretary of Transpor-
tation or State or the United States Postal Service.
(2) An objection must be in writing and must state the reasons
for the objection. The Secretary of Transportation or State or the
Postal Service shall order the information withheld from public
disclosure when the appropriate Secretary or the Postal Service
decides that disclosure of the information would—
(A) prejudice the United States Government in preparing
and presenting its position in international negotiations; or
(B) have an adverse effect on the competitive position of
an air carrier in foreign air transportation.
(b) WITHHOLDING INFORMATION FROM CONGRESS.—This section
does not authorize information to be withheld from a committee
of Congress authorized to have the information.
§ 40116. State taxation
(a) DEFINITION.—In this section, ‘‘State’’ includes the District
of Columbia, a territory or possession of the United States, and
a political authority of at least 2 States.
(b) PROHIBITIONS.—Except as provided in subsection (c) of this
section and section 40117 of this title, a State or political subdivision
of a State may not levy or collect a tax, fee, head charge, or
other charge on—
(1) an individual traveling in air commerce;
(2) the transportation of an individual traveling in air
commerce;
(3) the sale of air transportation; or
(4) the gross receipts from that air commerce or transpor-
tation.
(c) AIRCRAFT TAKING OFF OR LANDING IN STATE.—A State or
political subdivision of a State may levy or collect a tax on or
related to a flight of a commercial aircraft or an activity or service
H. R. 1758—368
on the aircraft only if the aircraft takes off or lands in the State
or political subdivision as part of the flight.
(d) UNREASONABLE BURDENS
AND DISCRIMINATION AGAINST
INTERSTATE COMMERCE.—(1) In this subsection—
(A) ‘‘air carrier transportation property’’ means property
(as defined by the Secretary of Transportation) that an air
carrier providing air transportation owns or uses.
(B) ‘‘assessment’’ means valuation for a property tax levied
by a taxing district.
(C) ‘‘assessment jurisdiction’’ means a geographical area
in a State used in determining the assessed value of property
for ad valorem taxation.
(D) ‘‘commercial and industrial property’’ means property
(except transportation property and land used primarily for
agriculture or timber growing) devoted to a commercial or
industrial use and subject to a property tax levy.
(2)(A) A State, political subdivision of a State, or authority
acting for a State or political subdivision may not do any of the
following acts because those acts unreasonably burden and discrimi-
nate against interstate commerce:
(i) assess air carrier transportation property at a value
that has a higher ratio to the true market value of the property
than the ratio that the assessed value of other commercial
and industrial property of the same type in the same assess-
ment jurisdiction has to the true market value of the other
commercial and industrial property.
(ii) levy or collect a tax on an assessment that may not
be made under clause (i) of this subparagraph.
(iii) levy or collect an ad valorem property tax on air
carrier transportation property at a tax rate greater than the
tax rate applicable to commercial and industrial property in
the same assessment jurisdiction.
(B) Subparagraph (A) of this paragraph does not apply to
an in lieu tax completely used for airport and aeronautical purposes.
(e) OTHER ALLOWABLE TAXES AND CHARGES.—Except as pro-
vided in subsection (d) of this section, a State or political subdivision
of a State may levy or collect—
(1) taxes (except those taxes enumerated in subsection
(b) of this section), including property taxes, net income taxes,
franchise taxes, and sales or use taxes on the sale of goods
or services; and
(2) reasonable rental charges, landing fees, and other serv-
ice charges from aircraft operators for using airport facilities
of an airport owned or operated by that State or subdivision.
(f) PAY OF AIR CARRIER EMPLOYEES.—(1) In this subsection—
(A) ‘‘pay’’ means money received by an employee for serv-
ices.
(B) ‘‘State’’ means a State of the United States, the District
of Columbia, and a territory or possession of the United States.
(C) an employee is deemed to have earned 50 percent
of the employee’s pay in a State or political subdivision of
a State in which the scheduled flight time of the employee
in the State or subdivision is more than 50 percent of the
total scheduled flight time of the employee when employed
during the calendar year.