IIA
104TH CONGRESS
2D SESSION
H. R. 2276
IN THE SENATE OF THE UNITED STATES
MARCH 13, 1996
Received; read twice and referred to the Committee on Commerce, Science,
and Transportation
AN ACT
To establish the Federal Aviation Administration as an inde-
pendent establishment in the executive branch, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Federal Aviation Ad-
ministration Revitalization Act of 1995’’.
SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of title 49, United States Code.
SEC. 3. ESTABLISHMENT OF FEDERAL AVIATION ADMINIS-
TRATION.
Subtitle II is amended by adding at the end the fol-
lowing:
‘‘CHAPTER 13—FEDERAL AVIATION
ADMINISTRATION
‘‘SUBCHAPTER I—GENERAL PROVISIONS
‘‘1301. Definitions.
‘‘SUBCHAPTER II—ORGANIZATION AND ADMINISTRATIVE
‘‘1311. Establishment.
‘‘1312. Federal Aviation Board.
‘‘1313. Officers.
‘‘1314. Personnel management program.
‘‘1315. Management Advisory Committee.
‘‘1316. Authority to carry out certain transferred functions, duties, and powers.
‘‘SUBCHAPTER III—AUTHORITY
‘‘1331. Functions.
‘‘1332. Regulations.
‘‘1333. Finality of decisions; appeals.
‘‘1334. Procurement program.
‘‘1335. Judicial review of actions in carrying out certain transferred duties and
powers.
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‘‘SUBCHAPTER I—GENERAL PROVISIONS
‘‘§ 1301. Definitions
‘‘In this chapter, the following definitions apply:
‘‘(1) ADMINISTRATION.—The term ‘Administra-
tion’ means the Federal Aviation Administration es-
tablished by section 1311.
‘‘(2) AERONAUTICS, AIR COMMERCE, AND AIR
NAVIGATION
FACILITY.—The terms ‘aeronautics’,
‘air commerce’, and ‘air navigation facility’ have the
same meanings given those terms in section
40102(a) of this title.
‘‘(3) AIRPORT AND AIRWAY TRUST FUND.—The
term ‘Airport and Airway Trust Fund’ means the
Airport and Airway Trust Fund established by sec-
tion 9502 of the Internal Revenue Code of 1986.
‘‘(4) BOARD.—The term ‘Board’ means the
Federal Aviation Board established by section 1312.
‘‘(5) CHIEF
EXECUTIVE
OFFICER.—The term
‘Chief Executive Officer’ means the Chief Executive
Officer of the Federal Aviation Administration.
‘‘SUBCHAPTER II—ORGANIZATION AND
ADMINISTRATIVE
‘‘§ 1311. Establishment
‘‘There is established in the executive branch as an
independent establishment the Federal Aviation Adminis-
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tration. The Administration shall succeed the Federal
Aviation Administration of the Department of Transpor-
tation in existence on the day before the effective date of
this section.
‘‘§ 1312. Federal Aviation Board
‘‘(a) IN GENERAL.—There is established a Federal
Aviation Board which shall serve as the head of the Ad-
ministration.
‘‘(b) FUNCTIONS.—
‘‘(1) IN GENERAL.—The Board shall be respon-
sible for the major policy functions of the Adminis-
tration, including the following:
‘‘(A) The appointment and removal of the
Chief Executive Officer and the approval of
other senior officers of the Administration
under section 1313.
‘‘(B) The approval and submission to Con-
gress of major contracts under section 1334(d).
‘‘(C) The approval of major regulatory ac-
tions under section 1332(b).
‘‘(D) The issuance of letters of intent
under section 47110(e).
‘‘(E) The approval and submission to Con-
gress of the Administration’s plans for person-
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nel management and acquisition management
programs under sections 1314 and 1334.
‘‘(F) The approval of the agency’s annual
budget submission.
‘‘(G) Long-range and strategic planning
for the Administration.
‘‘(H) The representation of the Adminis-
tration at public events to the extent prac-
ticable.
‘‘(I) Such other significant actions as the
Board considers appropriate.
‘‘(2) NONDELEGABLE FUNCTIONS.—The Board
may not delegate the functions described in subpara-
graphs (A) through (F) of paragraph (1).
‘‘(3) NOT SUBJECT TO ENTITIES CREATED BY
EXECUTIVE ORDER.—The Administration shall not
submit decisions for the approval of, and shall not
be bound by the decisions or recommendations of,
any committee, board, or other organization estab-
lished by Executive order.
‘‘(c) MEMBERSHIP.—
‘‘(1) VOTING MEMBERS.—The Board shall be
composed of 3 voting members to be appointed by
the President, by and with the advice and consent
of the Senate. The initial members of the Board
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shall be appointed as soon as practicable after the
date of the enactment of the Federal Aviation Ad-
ministration Revitalization Act of 1995.
‘‘(2) NON-VOTING MEMBERS.—The Secretary of
Transportation (or the Secretary’s designee) and the
Secretary of Defense (or the Secretary’s designee)
shall serve as non-voting members of the Board.
‘‘(d) QUALIFICATIONS.—
‘‘(1) IN GENERAL.—Members appointed to the
Board under subsection (c)(1) shall represent the
public interest and shall be selected from individuals
who are knowledgeable in aviation. Members of the
Board may not—
‘‘(A) have a pecuniary interest in, or own
stock in or bonds of, an aeronautical enterprise;
‘‘(B) engage in another business, vocation,
or employment; and
‘‘(C) be a member of any organization a
substantial part of whose activities are for the
purpose of influencing aviation-related legisla-
tion.
‘‘(2) DEFINITION.—In this subsection, the term
‘influencing legislation’ has the meaning such term
has under section 4911(d) of the Internal Revenue
Code of 1986 (26 U.S.C. 4911(d)).
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‘‘(e) TERMS.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
and (3), each member of the Board appointed under
subsection (c)(1) shall be appointed for a term of 7
years.
‘‘(2) TERMS OF INITIAL APPOINTEES.—As des-
ignated by the President at the time of appointment,
of the members first appointed under subsection
(c)(1)—
‘‘(A) 1 shall be appointed for a term of 3
years;
‘‘(B) 1 shall be appointed for a term of 5
years; and
‘‘(C) 1 shall be appointed for a term of 7
years.
‘‘(3) 
VACANCIES.—Any 
member 
appointed
under subsection (c)(1) to fill a vacancy occurring
before the expiration of the term for which the mem-
ber’s predecessor was appointed shall be appointed
only for the remainder of that term. A member may
serve after the expiration of that member’s term
until a successor has taken office.
‘‘(f) REMOVAL.—Members of the Board appointed
under subsection (c)(1) may be removed by the President
for inefficiency, neglect of duty, or malfeasance in office.
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‘‘(g) CHAIRPERSON.—The Chairperson of the Board
shall be appointed by the President, by and with the advice
and consent of the Senate. At the time of such appoint-
ment, the President shall establish the term of the Chair-
person. Such term may not exceed the term of the Chair-
person’s appointment to the Board.
‘‘(h) QUORUM.—Two members of the Board ap-
pointed under subsection (c)(1) shall constitute a quorum
for carrying out the duties and powers of the Board.
‘‘(i) BASIC PAY.—
‘‘(1) CHAIRPERSON.—The Chairperson of the
Board shall be paid at a rate equal to the rate of
basic pay payable for level II of the Executive
Schedule.
‘‘(2) OTHER
MEMBERS.—The other voting
members of the Board shall be paid at a rate equal
to the rate of basic pay payable for level III of the
Executive Schedule.
‘‘§ 1313. Officers
‘‘(a) CHIEF EXECUTIVE OFFICERS.—
‘‘(1) APPOINTMENT.—The Board shall appoint
a Chief Executive Officer.
‘‘(2) DUTIES.—The Board shall delegate to the
Chief Executive Officer the responsibility for manag-
ing the day-to-day operation of the Administration,
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including (except as provided in section 1312(b)) the
hiring and firing of employees, acquisition of facili-
ties and equipment, issuance of rules, airworthiness
directives, and advisory circulars, preparation of the
annual budget submission, the awarding of grants,
and such other functions as the Board considers ap-
propriate.
‘‘(3) REMOVAL.—The Chief Executive Officer
shall serve at the pleasure of the Board; except that
the Board shall make every effort to ensure stability
and continuity in the leadership of the Administra-
tion.
‘‘(4) BASIC PAY.—Subject to section 1314(f),
the Chief Executive Officer shall be paid at a rate
to be determined by the Board.
‘‘(b) OTHER OFFICERS.—Subject to the approval of
the Board, the Chief Executive Officer shall appoint other
senior officers who shall each have such duties as the Chief
Executive Officer may prescribe.
‘‘(c) CHIEF COUNSEL.—Subject to the approval of
the Board, the Chief Executive Officer shall appoint a
Chief Counsel who shall be the chief legal officer for all
legal matters arising from the activities of the Administra-
tion.
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‘‘(d) INSPECTOR GENERAL.—There shall be in the
Administration an Inspector General who shall be ap-
pointed in accordance with the Inspector General Act of
1978 (5 U.S.C. App.).
‘‘(e) AIRCRAFT NOISE OMBUDSMAN.—
‘‘(1) ESTABLISHMENT.—There shall be in the
Administration an Aircraft Noise Ombudsman who
shall be appointed by the Board.
‘‘(2) DUTIES
AND
RESPONSIBILITIES.—The
Ombudsman shall—
‘‘(A) serve as a liaison with the public on
issues regarding aircraft noise; and
‘‘(B) be consulted when the Administration
proposes changes in aircraft routes so as to
minimize any increases in aircraft noise over
populated areas.
‘‘§ 1314. Personnel management program
‘‘(a) EXEMPTION FROM CERTAIN PROVISIONS OF
TITLE 5, UNITED STATES CODE.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this Act, the Administration shall be exempt
from parts II and III of title 5.
‘‘(2) EFFECTIVE
DATE.—The exemption pro-
vided by paragraph (1) shall not take effect until the
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expiration of the 180-period described in subsection
(d)(2).
‘‘(b) DEVELOPMENT OF PERSONNEL MANAGEMENT
SYSTEM.—
‘‘(1) IN GENERAL.—Not later than 180 days
after the date of the enactment of the Federal Avia-
tion Administration Revitalization Act of 1995, the
Board shall develop a personnel management system
for the Administration.
‘‘(2) CONSULTATION
AND
NEGOTIATION.—In
developing the personnel management system, the
Board shall negotiate with the exclusive bargaining
representatives of employees of the Administration
certified under section 7111 of title 5 and other em-
ployees of the Administration and shall consult with
nongovernmental experts in personnel management
systems. The negotiation with the exclusive bargain-
ing representatives shall be completed on or before
the 90th day after the date of enactment referred to
in paragraph (1).
‘‘(3) MEDIATION.—If the Board does not reach
an agreement under paragraph (2) with the exclu-
sive bargaining representatives on any provision of
the personnel management system, the services of
the Federal Mediation and Conciliation Service shall
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be used to attempt to reach such agreement. If the
services of the Federal Mediation and Conciliation
Service do not lead to an agreement, the Board shall
include in the plan to be submitted to Congress
under subsection (d) the objections of the exclusive
bargaining representatives and the reasons for the
objections.
‘‘(4) CONTINUATION OF AGREEMENTS.—Collec-
tive bargaining agreements and labor management
relations under chapter 71 of title 5 shall remain in
effect for the Administration until amended or modi-
fied under the personnel management system.
‘‘(5) GOALS.—The goal of the personnel man-
agement system to be developed by the Board under
paragraph (1) shall be to provide, consistent with
the requirements of this section, the Administration
with the ability—
‘‘(A) to hire and fire employees as in the
private sector;
‘‘(B) to promote and pay employees based
on merit;
‘‘(C) to provide market-based salaries (de-
signed to attract the best qualified employees)
within available resources;
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‘‘(D) to provide pay increases and other in-
centives to staff facilities that are difficult to
staff;
‘‘(E) to move personnel to those facilities
where they are most needed; and
‘‘(F) to provide an opportunity for collec-
tive bargaining and other consultation with em-
ployees concerning terms and conditions of em-
ployment.
‘‘(6) SAFEGUARDS.—The personnel manage-
ment system shall include safeguards to ensure that
travel expenses of employees of the Administration
(including meal and lodging expenses) are not exces-
sive.
‘‘(c) EXPERTS EVALUATION.—The arrangements en-
tered into by the Board with the experts consulted by the
Board under subsection (b) shall provide for those experts
to evaluate the personnel management system developed
by the Board and submit to Congress the results of such
evaluation before the last day of the 180-day period re-
ferred to in subsection (b)(1).
‘‘(d) NOTICE TO CONGRESS.—
‘‘(1) IN GENERAL.—Upon development of the
personnel management system under subsection (b),
the Board shall submit to Congress a comprehensive
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plan describing the personnel management system,
along with all existing or proposed rules or regula-
tions relevant to the system.
‘‘(2) IMPLEMENTATION.—The Board may begin
to implement the personnel management system only
after the expiration of the 180-day period that be-
gins on the date of submission of the plan to Con-
gress under paragraph (1).
‘‘(e) EMPLOYEE RIGHTS AND BENEFITS.—Nothing
in this section shall be construed as exempting the Admin-
istration and employees of the Administration from any
of the following provisions of title 5:
‘‘(1) Section 2302(b)(8) (relating to whistle-
blower protection) and related enforcement provi-
sions.
‘‘(2) Sections 3308 through 3320 (relating to
veterans preference).
‘‘(3) Sections 7311(3) and 7311(4) (relating to
limitations on the right to strike).
‘‘(4) Sections 2302(b)(1) and 7204 (relating to
antidiscrimination) and related enforcement provi-
sions and provisions of law referred to in section
2302(b)(1).
‘‘(5) Chapter 71 (relating to labor-management
relations).
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‘‘(6) Chapter 73 (relating to suitability, secu-
rity, and conduct).
‘‘(7) Chapter 81 (relating to compensation for
work injuries).
‘‘(8) Chapter 83 (relating to retirement).
‘‘(9) Chapter 84 (relating to the Federal Em-
ployees’ Retirement System).
‘‘(10) Chapter 85 (relating to unemployment
compensation).
‘‘(11) Chapter 87 (relating to life insurance).
‘‘(12) Chapter 89 (relating to health insurance).
‘‘(f) PAY RESTRICTIONS.—
‘‘(1) MAXIMUM RATE OF PAY.—No officer (in-
cluding the Chief Executive Officer) or employee of
the Administration may receive annual pay in excess
of the annual rate of basic pay payable for level II
of the Executive Schedule unless the Board provides
written notification to Congress of such higher rate
of pay and 30 days (excluding Saturdays, Sundays,
and holidays, and any day on which neither House
of Congress is in session because of an adjournment
sine die, a recess of more than 3 days, or an ad-
journment of more than 3 days) have elapsed since
the date of such notification.
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‘‘(2) PERCENTAGE
OF
EMPLOYEES
ABOVE
LEVEL ES–1 OF SENIOR EXECUTIVE SERVICE.—Not
more than 0.35 percent of the officers (including
members of the Board and the Chief Executive Offi-
cer) and employees of the Administration may be
paid at a rate which equals or exceeds the rate pay-
able for level ES–1 of the Senior Executive Service.
‘‘(3) RAISES
AND
BONUSES.—No officer (in-
cluding the Chief Executive Officer) or employee of
the Administration who is paid at a rate which ex-
ceeds the rate payable for level ES–1 of the Senior
Executive Service may receive in a calendar year
raises or bonuses (excluding cost-of-living increases
and increases that are the results of a promotion)
that total more than 15 percent of the annual rate
of pay of the officer or employee on the day before
the first day of such calendar year.
‘‘(g) CONTRACTS BETWEEN FAA AND FORMER FAA
EMPLOYEES.—Before the Administration may enter into
a contract with an individual who has been employed by
the Administration at any time during the 2-year period
preceding the expected date of entry into the contract or
with a corporation, partnership, or other entity in which
such a former employee is a partner, principal officer, or
majority stockholder or which is otherwise controlled or
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predominantly staffed by 1 or more of such former em-
ployees, the Board must first approve of the entry into
the contract as being essential to the mission of the Ad-
ministration.
‘‘(h) USE OF UNOBLIGATED AMOUNTS FOR BONUSES
AND DEFICIT REDUCTION.—
‘‘(1) IN GENERAL.—Of amounts available to the
Administration specifically for administrative ex-
penses for a fiscal year beginning after September
30, 1996, that the Administration estimates on Sep-
tember 1 of that fiscal year will not be obligated by
an office of the Administration before the end of the
fiscal year—
‘‘(A) the Board may use up to 50 percent
to pay bonuses to personnel of such office of
the Administration; and
‘‘(B) the remainder shall be divided be-
tween and deposited in—
‘‘(i) the general fund of the Treasury
and used exclusively for deficit reduction;
and
‘‘(ii) the Airport and Airway Trust
Fund;
in the same ratio that amounts appropriated for
operations of the Administration for that fiscal
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year from the General Fund of the Treasury
bears to amounts appropriated from the Airport
and Airway Trust Fund for that fiscal year.
‘‘(2) REPORTS.—The Director of the Office of
Management and Budget shall submit a report to
Congress by not later than December 31 of each
year on the implementation of this subsection in the
preceding fiscal year, describing the effectiveness of
this subsection in reducing the deficit.
‘‘§ 1315. Management Advisory Committee
‘‘(a) ESTABLISHMENT.—There is established an advi-
sory committee which shall be known as the Federal Avia-
tion Management Advisory Committee (hereinafter in this
section referred to as the ‘Management Advisory Commit-
tee’).
‘‘(b) MEMBERSHIP.—The Management Advisory
Committee shall consist of 17 members, who shall be ap-
pointed as follows:
‘‘(1) 1 member appointed by the Speaker of the
House of Representatives;
‘‘(2) 1 member appointed by the minority lead-
er of the House of Representatives;
‘‘(3) 1 member appointed by the majority lead-
er of the Senate;
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‘‘(4) 1 member appointed by the minority lead-
er of the Senate;
‘‘(5) 13 members appointed by the Board 12 of
whom shall represent 1 of the following interests:
‘‘(A) Airline passengers.
‘‘(B) General aviation and sport aviation.
‘‘(C) Business aviation.
‘‘(D) Hub airports.
‘‘(E) Non-hub and general aviation air-
ports.
‘‘(F) Major airlines and national airlines.
‘‘(G) Regional airlines and air taxis.
‘‘(H) Cargo airlines and charter airlines.
‘‘(I) Aircraft manufacturers.
‘‘(J) Airline employees.
‘‘(K) Federal Aviation Administration em-
ployees.
‘‘(L) State aviation officials.
‘‘(c) FUNCTIONS.—The Management Advisory Com-
mittee shall provide advice and counsel to the Administra-
tion on issues which affect or are affected by the oper-
ations of the Administration. The Management Advisory
Committee shall hold quarterly meetings. The Administra-
tion shall give the Management Advisory Committee ac-
cess to internal documents (other than proprietary infor-
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mation and documents relating to on-going litigation) and
personnel of the Administration. The Management Advi-
sory Committee shall function as an oversight resource for
management, policy, spending, and regulatory matters
under the jurisdiction of the Administration.
‘‘(d) CHAIRMAN.—The Management Advisory Com-
mittee shall elect a chairman of the Management Advisory
Committee from among its members.
‘‘(e) TERMS OF MEMBERS.—
‘‘(1) MEMBERS
APPOINTED
BY
CONGRESS.—
Members 
appointed 
under 
subsections 
(b)(1)
through (b)(4) shall be appointed for a term of 2
years.
‘‘(2) MEMBERS APPOINTED BY THE BOARD.—
Members appointed under subsection (b)(5) shall be
appointed for a term of 3 years.
‘‘(f) TRAVEL AND PER DIEM.—Each member of the
Management Advisory Committee shall be paid actual
travel expenses, and per diem in lieu of subsistence ex-
penses when away from his or her usual place of residence,
in accordance with section 5703 of title 5.
‘‘(g) UTILIZATION OF PERSONNEL FROM FAA.—The
Administration shall make available to the Management
Advisory Committee such staff, information, and adminis-
trative services and assistance as may reasonably be re-
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quired to enable the Management Advisory Committee to
carry out its responsibilities under this section.
‘‘(h) APPLICABILITY OF FEDERAL ADVISORY COM-
MITTEE ACT.—The Management Advisory Committee
shall be subject to the Federal Advisory Committee Act
(5 U.S.C. App.); except that section 14(a)(2)(B) of such
Act (relating to the termination of advisory committees)
shall not apply to the Committee.
‘‘§ 1316. Authority to carry out certain transferred
functions, duties, and powers
‘‘Except as otherwise provided in this chapter, in car-
rying out a function, duty, or power transferred under the
Federal Aviation Administration Revitalization Act of
1995 (including the amendments made by such Act), the
Administration has the same authority that was vested in
the department, agency, or instrumentality of the United
States Government carrying out the function, duty, or
power immediately before the transfer. An action of the
Administration in carrying out the function, duty, or
power has the same effect as when carried out by the de-
partment, agency, or instrumentality.
‘‘SUBCHAPTER III—AUTHORITY
‘‘§ 1331. Functions
‘‘(a) IN GENERAL.—The functions of the Federal
Aviation Administration shall be all functions vested in the
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Board, the Chief Executive Officer, or the Federal Avia-
tion Administration by this title or by law enacted after
the date of the enactment of this chapter. Such functions
include functions of the Administration, the Board, and
the Chief Executive Officer under the following provisions
of this title:
‘‘(1) Section 308(b).
‘‘(2) Section 353.
‘‘(3) Section 1114(d).
‘‘(4) Section 1131(c).
‘‘(5) Subsections (c) and (d) of section 1132.
‘‘(6) Section 1135.
‘‘(7) Section 1153(c).
‘‘(8) Subsections (a), (c), and (d) of section
40101.
‘‘(9) Section 40102(a)(8).
‘‘(10) Section 40103(b).
‘‘(11) Section 40104.
‘‘(12) Section 40105.
‘‘(13) Section 40106(a).
‘‘(14) Section 40107.
‘‘(15) Section 40108.
‘‘(16) Section 40109(b).
‘‘(17) Subsections (a) and (b) of section 40110.
‘‘(18) Section 40111.
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‘‘(19) Section 40112.
‘‘(20) Section 40113.
‘‘(21) Section 40114.
‘‘(22) Section 40115.
‘‘(23) Section 40117.
‘‘(24) Section 40119.
‘‘(25) Section 41714.
‘‘(26) Chapter 441.
‘‘(27) Chapter 443.
‘‘(28) Chapter 445.
‘‘(29) Chapter 447.
‘‘(30) Chapter 449.
‘‘(31) Chapter 451.
‘‘(32) Chapter 453.
‘‘(33) Chapter 461.
‘‘(34) Section 46301.
‘‘(35) Section 46302.
‘‘(36) Section 46303.
‘‘(37) Section 46304.
‘‘(38) Section 46306.
‘‘(39) Section 46308.
‘‘(40) Section 46311.
‘‘(41) Section 46313.
‘‘(42) Section 46315.
‘‘(43) Section 46316.
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‘‘(44) Chapter 465.
‘‘(45) Chapter 471.
‘‘(46) Chapter 473.
‘‘(47) Chapter 475.
‘‘(48) Chapter 481.
‘‘(49) Chapter 491.
‘‘(b) INCIDENTAL
FUNCTIONS.—In addition, the
functions of the Administration shall include all functions
of the Department of Transportation on the effective date
of this section which the Administration determines are
incidental to, helpful to, or necessary for the performance
of the functions referred to in subsection (a) or which re-
late primarily to those functions.
‘‘§ 1332. Regulations
‘‘(a) GENERAL AUTHORITY.—The Administration
may issue, rescind, and amend such regulations as are
necessary to carry out its functions.
‘‘(b) APPROVAL OF BOARD.—
‘‘(1) GENERAL
RULE.—The Administration
may only issue a proposed regulation, final regula-
tion, airworthiness directive, or advisory circular
that may result in the expenditure by State, local,
and tribal governments in the aggregate, or by the
private sector, of $10,000,000 or more (adjusted an-
nually for inflation) in any 1 year if the Board first
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approves of the issuance of such regulation, direc-
tive, or circular.
‘‘(2) EMERGENCY ACTION.—In an emergency,
the Chief Executive Officer may issue a regulation,
directive, or circular described in paragraph (1)
without prior Board approval but subject to Board
ratification following issuance.
‘‘(c) REVIEW BY DOT.—
‘‘(1) SUBMISSION.—Before the Administration
issues any proposed or final regulation—
‘‘(A) the Administration shall submit a
copy of the regulation to the Secretary of
Transportation;
‘‘(B) the Administration shall provide the
Secretary with a period of 5 days (excluding
Saturdays, Sundays, and holidays) beginning on
the date of such submission to determine
whether or not the regulation is likely to have
a significant effect on other modes of transpor-
tation in the national transportation system or
the Secretary’s aviation responsibilities, includ-
ing national defense responsibilities; and
‘‘(C) if the Secretary determines, before
the last day of such 5-day period, that the regu-
lation is likely to have such a significant effect,
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the Administration shall provide the Secretary
with an additional period of 45 days to assess
the effect of the regulation on other modes of
transportation in the national transportation
system and the Secretary’s aviation responsibil-
ities, including national defense responsibilities.
‘‘(2) RECOMMENDATIONS.—The Secretary may
recommend to the Administration modifications of a
proposed or final regulation necessary to minimize
the adverse effect of such regulation on other modes
of transportation in the national transportation sys-
tem or the Secretary’s aviation responsibilities, in-
cluding national defense responsibilities. The Admin-
istration may make any modifications recommended
by the Secretary. If the Administration does not
make a modification recommended by the Secretary,
the Administration shall include in the publication of
the proposed or final regulation a description of the
recommended modification and the reasons for not
making the modification.
‘‘(3) EXCEPTIONS.—This subsection shall not
apply to the following types of regulations:
‘‘(A) Regulations pertaining to agency or-
ganization, procedure, or practice.
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more (adjusted annually for inflation) in any 1 year must
contain an automatic termination date. The termination
date shall also apply to any advisory circular issued by
the Administration and pertaining solely to such regula-
tion.
‘‘(e) EMERGENCY DEFINED.—In this section, the
term ‘emergency’ means a situation where there is good
cause for finding that consideration by the Board or by
the Department of Transportation is impracticable or con-
trary to the public interest.
‘‘§ 1333. Finality of decisions; appeals
‘‘Decisions of the Administration made pursuant to
the exercise of the functions enumerated in subtitle VII
of this title shall be administratively final, and appeals as
currently authorized by law shall be taken directly to the
National Transportation Safety Board or to any court of
competent jurisdiction, as appropriate.
‘‘§ 1334. Procurement program
‘‘(a) EXEMPTION FROM PROCUREMENT LAWS.—
‘‘(1) IN GENERAL.—The following laws and reg-
ulations shall not apply to the Federal Aviation Ad-
ministration:
‘‘(A) Title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C.
251–266).
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‘‘(B) The Office of Federal Procurement
Policy Act (41 U.S.C. 401 et seq.).
‘‘(C) The Federal Acquisition Streamlining
Act of 1994 (Public Law 103–355).
‘‘(D) The Small Business Act (15 U.S.C.
631 et seq.); except that the Administration
shall provide reasonable opportunities to small
business concerns and small business concerns
owned and controlled by socially and economi-
cally disadvantaged individuals to be awarded
contracts.
‘‘(E) Subchapter V of chapter 35 of title
31 (relating to the procurement protest sys-
tem).
‘‘(F) The Brooks Automatic Data Process-
ing Act (40 U.S.C. 759).
‘‘(G) Section 3709 of the Revised Statutes
of the United States (41 U.S.C. 5).
‘‘(H) The Federal Acquisition Regulation
and any laws not listed in subparagraphs (A)
through (G) providing authority to promulgate
regulations in the Federal Acquisition Regula-
tion.
‘‘(2) EFFECTIVE
DATE.—The exemption pro-
vided by paragraph (1) shall not take effect until the
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expiration of the 180-day period referred to in sub-
section (c)(2).
‘‘(b) DEVELOPMENT OF ACQUISITION MANAGEMENT
SYSTEM.—
‘‘(1) IN GENERAL.—Not later than 180 days
after the date of the enactment of the Federal Avia-
tion Administration Revitalization Act of 1995, the
Federal Aviation Board, in consultation with such
nongovernmental experts in acquisition management
systems as the Board may employ, shall develop an
acquisition management system for the Administra-
tion.
‘‘(2) CONSULTATION.—In developing the acqui-
sition management system, the Board shall consult
nongovernmental experts in acquisition management
systems.
‘‘(3) GOALS.—The acquisition management sys-
tem to be developed by the Board under paragraph
(1) shall be designed—
‘‘(A) to ensure that services are procured
and new equipment is installed and certified as
quickly as possible without sacrificing principles
of fairness and protection against waste, fraud,
and abuse; and
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‘‘(B) to ensure a common interoperable air
traffic control system with the military.
‘‘(4) EXPERTS
EVALUATION.—The arrange-
ments entered into by the Board with the experts
consulted by the Board under paragraph (2) shall
provide for those experts to evaluate the acquisition
management system developed by the Board and
submit to Congress the results of such evaluation be-
fore the last day of the 180-day period referred to
in paragraph (1).
‘‘(c) NOTICE TO CONGRESS.—
‘‘(1) IN GENERAL.—Upon the development of
the acquisition management system, the Board shall
submit a comprehensive plan describing the acquisi-
tion management system to Congress, along with all
existing or proposed rules or regulations relevant to
the system.
‘‘(2) IMPLEMENTATION.—The Administration
may begin to implement the acquisition management
system only after the expiration of the 180-day pe-
riod that begins on the date on which the plan is
submitted to Congress under paragraph (1). The ac-
quisition management system shall apply to con-
tracts entered into after the expiration of such 180-
day period.
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‘‘(d) CONTRACTS.—
‘‘(1) APPROVAL OF CERTAIN CONTRACTS.—The
Administration may only enter into a contract that
has a total contract value, including all options, of
an amount greater than $100,000,000 if the Board
first approves of the entry into the contract.
‘‘(2) NOTICE TO CONGRESS OF CERTAIN CON-
TRACTS.—In addition to complying with paragraph
(1), the Administration may only enter into a con-
tract that has a total contract value, including all
options, of an amount greater than $250,000,000 if
the Board provides written notice to Congress of the
proposed entry into the contract, together with a de-
scription of the contract and at least 30 calendar
days elapse after the date of such notification.
‘‘§ 1335. Judicial review of actions in carrying out
certain transferred duties and powers
‘‘(a) JUDICIAL REVIEW.—An action of the Adminis-
tration in carrying out a duty or power transferred under
the Department of Transportation Act (Public Law 89–
670) and under the Federal Aviation Administration Revi-
talization Act of 1995 and an action of the Administrator
of the Federal Aviation Administration in carrying out a
duty or power specifically assigned to the Administrator
by the Department of Transportation Act and transferred
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to the Administration by the Federal Aviation Administra-
tion Revitalization Act of 1995 may be reviewed judicially
to the same extent and in the same way as if the action
had been an action by the department, agency, or instru-
mentality of the United States Government carrying out
the duty or power immediately before the transfer.
‘‘(b) APPLICATION
OF
PROCEDURAL
REQUIRE-
MENTS.—A statutory requirement related to notice, an op-
portunity for a hearing, action on the record, or adminis-
trative review that applied to a duty or power transferred
by the Acts referred to in subsection (a) applies to the
Administration when carrying out the duty or power.’’.
SEC. 4. BUDGET OF ADMINISTRATION.
(a) IN GENERAL.—Section 48109 of title 49, United
States Code, is amended to read as follows:
‘‘§ 48109. Budget information and legislative rec-
ommendations and comments
‘‘(a) PREPARATION.—Subject to approval of the Fed-
eral Aviation Board, the Chief Executive Officer shall pre-
pare an annual budget for the Administration.
‘‘(b) SUBMISSION OF BUDGET TO DOT.—
‘‘(1) IN
GENERAL.—At the same time that
agencies of the Department of Transportation hav-
ing jurisdiction over other modes of transportation
are required to submit their budgets to the Sec-
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retary of Transportation, the Administration shall
submit to the Secretary the budget prepared by the
Administration and approved by the Board. The
Secretary shall review the budget and may rec-
ommend to the Administration modifications in the
budget necessary to ensure that the budget is con-
sistent with the needs of the national transportation
system and the Secretary’s aviation responsibilities.
The Administration may modify the budget to adopt
any recommendation made by the Secretary.
‘‘(2) OPPORTUNITY FOR COMMENT.—At least
30 days before submitting a budget to the Secretary
under paragraph (1), the Administration shall sub-
mit a draft of the budget to the Management Advi-
sory Committee established by section 1315 for com-
ment.
‘‘(c) SUBMISSION OF BUDGET TO CONGRESS.—
‘‘(1) IN GENERAL.—When the Board submits
to the President or the Director of the Office of
Management and Budget any budget information,
legislative recommendation, or comment on legisla-
tion about amounts authorized in section 48101 or
section 48102, the Board concurrently shall submit
a copy of the information, recommendation, or com-
ment to the Speaker of the House of Representa-
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tives, the Committees on Transportation and Infra-
structure and Appropriations of the House of Rep-
resentatives, the President of the Senate, and the
Committees on Commerce, Science, and Transpor-
tation and Appropriations of the Senate.
‘‘(2) SPECIAL RULE WITH RESPECT TO ANNUAL
BUDGETS.—The annual budget of the Administra-
tion submitted to Congress shall include—
‘‘(A) budget requests and Airport and Air-
way Trust Fund estimates for the ensuing 4
fiscal years;
‘‘(B) a numerical ranking, by degree of im-
portance to the national airspace system, of the
Administration’s requests for funding of air
traffic control modernization projects under sec-
tion 48101;
‘‘(C) the total number of man-years of di-
rect effort the Administration estimates it will
use under support service contracts (including
professional, technical, engineering, site prepa-
ration, and installation and other services com-
parable to those performed by Government em-
ployees, but not including maintenance as part
of a supply contract, janitorial, research and
development, or construction services or services
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incidental to supply contracts) during the fiscal
year for which the budget is being submitted;
‘‘(D) any modifications made by the Ad-
ministration under subsection (b) with respect
to the budget; and
‘‘(E) if the Administration does not adopt
a recommendation made by the Secretary under
subsection (b), a description of the rec-
ommendation and the reasons for not adopting
the recommendation.
Subparagraph (C) shall take effect with the budget
submission for fiscal year 1997. The estimate under
subparagraph (C) for such budget submission shall
include for comparison the estimated total number
of man-years of direct effort the Administration
used under such support service contracts in each of
fiscal years 1992 and 1995.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 481 is amended by striking the item relating to
section 48109 and inserting the following:
‘‘48109. Budget information and legislative recommendations and comments.’’.
SEC. 5. COST-BENEFIT ANALYSIS FOR MINIMUM SAFETY
STANDARDS.
Section 44701 is amended by adding at the end the
following:
‘‘(f) COST-BENEFIT ANALYSIS.—
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‘‘(1) IN
GENERAL.—For any regulation or
standard to be issued under subsection (a) or (b)
that is likely to result in annualized compliance costs
in excess of $25,000,000, the Administration shall,
in addition to other requirements in law, identify
and publish together with such regulation or stand-
ard the following:
‘‘(A) The benefits of the regulation or
standard, quantified where appropriate and fea-
sible, and otherwise qualitatively described, in-
cluding in appropriate cases, the nature and
number of deaths or injuries that the regulation
or standard is designed to prevent.
‘‘(B) The approximate number of aircraft,
airports, airmen, or cabin crew affected by the
regulation or standard.
‘‘(C) The probable cost of fulfilling the re-
quirements of the regulation or standard, quan-
tified where appropriate and feasible, and other-
wise qualitatively described, including in appro-
priate cases any adverse effects on competition
or disruption or dislocation of air service or
other commercial practices engaged in by the
entities affected by such requirements.
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‘‘(D) Alternative means of achieving the
objective of the regulation or standard while
minimizing the costs, adverse effects on com-
petition, and the disruption or dislocation of air
service or the commercial practices affected by
the regulation or standard and a statement as
to why the Administration chose the regulation
or standard adopted in preference to the alter-
natives considered.
‘‘(2) EMERGENCY.—In the case of an emer-
gency, the Chief Executive Officer or the Board may
suspend the application of this subsection for the
duration of the emergency.
‘‘(3) NONAPPLICABILITY TO ADVISORY CIRCU-
LARS.—This subsection shall not apply to advisory
circulars.’’.
SEC. 6. AMENDMENT TO INSPECTOR GENERAL ACT OF 1978.
Section 11 of the Inspector General Act of 1978 (5
U.S.C. App.) is amended—
(1) in paragraph (1) by inserting ‘‘or Federal
Aviation Administration’’ after ‘‘Community Serv-
ice’’; and
(2) in paragraph (2) by inserting ‘‘the Federal
Aviation Administration,’’ after ‘‘United States In-
formation Agency,’’.
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SEC. 7. PASSENGER FACILITY CHARGES.
(a) FEE RETAINED BY AIRLINES.—
(1) DEADLINE FOR RESPONSE TO PETITION.—
Not later than 75 days after the date of the enact-
ment of this Act, the Administrator of the Federal
Aviation Administration shall issue a notice of a pro-
posed rulemaking or a denial of the petition in
Docket 27791 of the Federal Aviation Administra-
tion (relating to increasing the fee that airlines re-
tain in collecting passenger facility charges).
(2) EFFECT OF FAILURE TO RESPOND.—If the
Administrator does not respond to the petition in
the docket referred to in paragraph (1) as required
by paragraph (1), the fee increase sought by the pe-
titioner in such docket shall become effective after
the 75th day referred to in paragraph (1) until such
date as the Administrator responds to such petition.
(b) REVIEW OF PROGRAM.—The Secretary of Trans-
portation shall complete the review required by section
121 of the Federal Aviation Administration Reauthoriza-
tion Act of 1994 (108 Stat. 1581) not later than the 75th
day following the date of the enactment of this Act.
SEC. 8. SELECT PANEL TO REVIEW INNOVATIVE FUNDING
MECHANISMS.
(a) ESTABLISHMENT.—The Federal Aviation Board
shall establish a select panel to review and report to Con-
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gress regarding innovative financing mechanisms for en-
suring adequate funding for existing and future aviation
infrastructure needs and for funding the operations of the
Federal Aviation Administration in a manner that would
provide for future growth in the Nation’s air traffic sys-
tem, improve the management and performance of the air
traffic control system, and make the Administration more
efficient and effective. The financing mechanisms to be re-
viewed shall include, but not be limited to, loan guaran-
tees, financial partnerships with for-profit private sector
entities, multi-year appropriations, revolving loan funds,
mandatory spending authority, authority to borrow, and
restructured grant programs.
(b) APPOINTMENT OF MEMBERS.—Not later than 90
days after the date of the appointment of at least 2 mem-
bers of the Board, the Board shall appoint members to
the panel established under this section. Such members
shall consist of appropriate Federal Government officials
and representatives of the aviation industry, Administra-
tion employees, the financial community, and State and
local governments.
(c) INDEPENDENT AUDIT.—Immediately following
appointment of the panel, and utilizing funds appropriated
for Federal Aviation Administration headquarters oper-
ations, the panel shall contract with an entity independent