I
104TH CONGRESS
1ST SESSION
H. R. 2276
To establish the Federal Aviation Administration as an independent
establishment in the executive branch, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 7, 1995
Mr. DUNCAN (for himself, Mr. SHUSTER, Mr. OBERSTAR, Mr. LIGHTFOOT,
Mr. CLINGER, Mr. WELLER, Mr. COBLE, Mr. RAHALL, Mr. LIPINSKI,
Mr. EWING, Mr. COSTELLO, Mr. WISE, Mr. HUTCHINSON, Mr. EHLERS,
Mr. BACHUS, Mrs. SEASTRAND, Mr. TATE, Ms. DANNER, Mrs. KELLY,
Mr. CLYBURN, and Mr. LATHAM) introduced the following bill; which was
referred to the Committee on Transportation and Infrastructure, and in
addition to the Committees on Government Reform and Oversight, and
the Budget, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
A BILL
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,
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 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.
‘‘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-
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-
nel management and acquisition management
programs under sections 1314 and 1334.
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)).
‘‘(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.
‘‘(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,
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.
‘‘(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.).
‘‘§ 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
expiration of the 180-period described in subsection
(d)(2).
‘‘(b) DEVELOPMENT OF PERSONNEL MANAGEMENT
SYSTEM.—
‘‘(1) IN GENERAL.—Not later than 1 year after
the date of the enactment of the Federal Aviation
Administration Revitalization Act of 1995, the
Board shall develop a personnel management system
for the Administration.
‘‘(2) CONSULTATION.—In developing the per-
sonnel management system, the Board shall consult
employees of the Administration, the designated rep-
resentatives of such employees, and nongovern-
mental experts in personnel management systems.
‘‘(3) 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;
‘‘(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.
‘‘(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 1-year period referred
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
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 7311(3) and 7311(4) (relating to
limitations on the right to strike).
‘‘(3) 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).
‘‘(4) Chapter 73 (relating to suitability, secu-
rity, and conduct).
‘‘(5) Chapter 81 (relating to compensation for
work injuries).
‘‘(6) Chapter 83 (relating to retirement).
‘‘(7) Chapter 84 (relating to the Federal Em-
ployees’ Retirement System).
‘‘(8) Chapter 85 (relating to unemployment
compensation).
‘‘(9) 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.
‘‘(2) PERCENTAGE
OF
EMPLOYEES
ABOVE
LEVEL ES–1 OF SENIOR EXECUTIVE SERVICE.—Not
more than 0.30 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 10 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
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.
‘‘§ 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;
‘‘(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 and personnel of the Adminis-
tration. The Management Advisory Committee shall func-
tion 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 (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-
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
duties and powers
‘‘Except as otherwise provided in this chapter, in car-
rying out a duty or power transferred under the Federal
Aviation Administration Revitalization Act of 1995 (in-
cluding the amendments made by such Act), the Adminis-
tration has the same authority that was vested in the de-
partment, agency, or instrumentality of the United States
Government carrying out the duty or power immediately
before the transfer. An action of the Administration in
carrying out the duty or power has the same effect as
when carried out by the department, agency, or instru-
mentality.
‘‘SUBCHAPTER III—AUTHORITY
‘‘§ 1331. Functions
‘‘(a) IN GENERAL.—The functions of the Federal
Aviation Administration shall be all functions vested in the
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.
‘‘(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.
‘‘(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 are incidental to, helpful to, or nec-
essary for the performance of the functions referred to in
subsection (a) or which relate 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
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,
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.
‘‘(B) Regulations pertaining solely to navi-
gational aids.
‘‘(C) Regulations pertaining solely to air-
space designations and configurations.
‘‘(D) Regulations pertaining solely to
standard instrument approach procedures.
‘‘(4) 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.
‘‘(d) AUTOMATIC TERMINATION DATE.—Any regula-
tion issued by the Administration after the effective date
of this section which is likely to result in the annual ex-
penditure by State, local, and tribal governments in the
aggregate, or by the private sector, of $25,000,000 or
more (adjusted annually for inflation) in any 1 year must
contain an automatic termination date.
‘‘(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).
‘‘(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) The Federal Acquisition Regulation
and any laws not listed in subparagraphs (A)
through (F) 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
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 1 year after
the date of the enactment of the Federal Aviation
Administration Revitalization Act of 1995, the Fed-
eral Aviation Board, in consultation with such non-
governmental 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
‘‘(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 1-year 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.
‘‘(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
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.—At the
same time that agencies of the Department of Transpor-
tation having jurisdiction over other modes of transpor-
tation are required to submit their budgets to the Sec-
retary of Transportation, the Administration shall submit
to the Secretary the budget prepared by the Administra-
tion and approved by the Board. The Secretary shall re-
view the budget and may recommend to the Administra-
tion modifications in the budget necessary to ensure that
the budget is consistent with the needs of the national
transportation system and the Secretary’s aviation respon-
sibilities. The Administration may modify the budget to
adopt any recommendation made by the Secretary.
‘‘(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-
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
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 legislation 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.—
‘‘(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.
‘‘(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. BUDGETARY TREATMENT OF TRUST FUND.
(a) IN GENERAL.—Chapter 481 is amended by add-
ing at the end the following:
‘‘§ 48111. Budgetary treatment of airport and airway
trust fund
‘‘The receipts and disbursements of the Airport and
Airway Trust Fund established by section 9502 of the In-
ternal Revenue Code of 1986 (26 U.S.C. 9502)—
‘‘(1) shall not be included in the totals of—
‘‘(A) the budget of the United States Gov-
ernment as submitted by the President, or
‘‘(B) the congressional budget (including
allocations of budget authority and outlays pro-
vided therein),
‘‘(2) shall be exempt from any general budget
limitation imposed by statute on expenditures and
net lending (budget outlays) of the United States
Government, and
‘‘(3) shall be exempt from any order issued
under part C of the Balanced Budget and Emer-
gency Deficit Control Act of 1985.
‘‘§ 48112. Safeguards against deficit spending
‘‘(a) ESTIMATES OF UNFUNDED AVIATION AUTHOR-
IZATIONS AND NET AVIATION RECEIPTS.—Not later than
March 31 of each year, the Federal Aviation Administra-
tion, in consultation with the Secretary of the Treasury,
shall estimate—
‘‘(1) the amount which would (but for this sec-
tion) be the unfunded aviation authorizations at the
close of the first fiscal year that begins after that
March 31, and
‘‘(2) the net aviation receipts at the close of
such fiscal year.
‘‘(b) PROCEDURE OF EXCESS UNFUNDED AVIATION
AUTHORIZATIONS.—If the Administration determines for
any fiscal year that the amount described in subsection
(a)(1) exceeds the amount described in subsection (a)(2),
the Board shall determine the amount of such excess.
‘‘(c) ADJUSTMENT
OF AUTHORIZATIONS
IF UN-
FUNDED AUTHORIZATIONS EXCEED RECEIPTS.—
‘‘(1) DETERMINATION OF PERCENTAGE.—If the
Administration determines that there is an excess
referred to in subsection (b) for a fiscal year, the
Administration shall determine the percentage
which—
‘‘(A) such excess, is of
‘‘(B) the total of the amounts authorized
to be appropriated from the Airport and Airway
Trust Fund established by section 9502 of the
Internal Revenue Code of 1986 (26 U.S.C.
9502) for the next fiscal year.
‘‘(2) ADJUSTMENT
OF
AUTHORIZATIONS.—If
the Administration determines a percentage under
paragraph (1), each amount authorized to be appro-
priated from the Airport and Airway Trust Fund for
the next fiscal year shall be reduced by such percent-
age.
‘‘(d) AVAILABILITY OF AMOUNTS PREVIOUSLY WITH-
HELD.—
‘‘(1) ADJUSTMENT
OF
AUTHORIZATIONS.—If,
after a reduction has been made under subsection
‘‘(1) NET AVIATION RECEIPTS.—The term ‘net
aviation receipts’ means, with respect to any period,
the excess of—
‘‘(A) the receipts (including interest) of the
Airport and Airway Trust Fund during such
period, over
‘‘(B) the amounts to be transferred during
such period from the Airport and Airway Trust
Fund under section 9502(d) of the Internal
Revenue Code of 1986 (other than paragraph
(1) thereof).
‘‘(2) UNFUNDED AVIATION AUTHORIZATIONS.—
The term ‘unfunded aviation authorization’ means,
at any time, the excess (if any) of—
‘‘(A) the total amount authorized to be ap-
propriated from the Airport and Airway Trust
Fund which has not been appropriated, over
‘‘(B) the amount available in the Airport
and Airway Trust Fund at such time to make
such appropriation (after all other unliquidated
obligations at such time which are payable from
the Airport and Airway Trust Fund have been
liquidated).’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 481 of title 49, United States Code, is amended
by adding at the end the following:
‘‘48111. Budgetary treatment of Airport and Airway Trust Fund.
‘‘48112. Safeguards against deficit spending.’’.
(c) APPLICABILITY.—This section (including the
amendments made by this section) shall apply to fiscal
years beginning after September 30, 1995.
SEC. 7. 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 striking ‘‘or Small
Business,’’ and inserting ‘‘Small Business, Federal
Aviation Administration,’’; and
(2) in paragraph (2) by inserting ‘‘the Federal
Aviation Administration,’’ after ‘‘United States In-
formation Agency,’’.
SEC. 8. 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. 9. SELECT PANEL TO REVIEW INNOVATIVE FUNDING
MECHANISMS.
(a) ESTABLISHMENT.—The Federal Aviation Board
shall establish a select panel to review and report to Con-
gress regarding innovative financing mechanisms for en-
suring adequate funding for existing and future aviation
infrastructure needs. 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) TRAVEL AND PER DIEM.—Each member of the
panel established under this section 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, United States
Code.
(d) APPLICABILITY OF FEDERAL ADVISORY COMMIT-
TEES ACT.—The select panel established under this sec-
tion shall be subject to the Federal Advisory Committee
Act (5 U.S.C. App.).
(e) REPORT.—Not later than 1 year after the date
of the appointment of the last member to the panel under
subsection (b), the panel shall submit to Congress and the
Federal Aviation Administration a report on the results
of the review conducted under this section.
SEC. 10. TRANSFER OF PERSONNEL, PROPERTY, RECORDS,
AND FUNDS.
So much of the personnel, property, records, funds,
accounts, and unexpended balances of appropriations, allo-
cations, and other funds of the Department of Transpor-
tation and the Federal Aviation Administration as are em-
ployed, used, held, available, or to be made available, in
connection with the functions which under this Act (in-
cluding the amendments made by this Act) are made func-
tions of the Federal Aviation Administration established
by section 1311 of title 49, United States Code, are trans-
ferred to the Federal Aviation Administration.
SEC. 11. SAVINGS PROVISIONS.
(a) ORDERS, REGULATIONS, CONTRACTS, AND CER-
TIFICATES.—All orders, determinations, rules, regula-
tions, permits, contracts, certificates, licenses, and privi-
leges—
(1) which have been issued, made, granted, or
allowed to become effective by the President or any
Federal department or agency or official thereof or
by a court of competent jurisdiction, on or after the
effective date of this section in regard to functions
which under this Act (including the amendments
made by this Act) are made functions of the Federal
Aviation Administration established by section 1311
of title 49, United States Code; and
(2) which are in effect on the effective date of
this section,
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, the Federal Avia-
tion Board, or other authorized officials, by a court of
competent jurisdiction, or by operation of law.
(b) PROCEEDINGS AND APPLICATIONS.—The provi-
sions of this Act (including the amendments made by this
Act) shall not affect any proceedings or any application
for any license, permit, certificate, or financial assistance
pending on the effective date of this section, and such pro-
ceedings and applications, to the extent that they relate
to functions under this Act that are made functions of
the Administration, shall be continued. Orders shall be is-
sued in such proceedings, appeals shall be taken there-
from, and payments shall be made pursuant to such or-
ders, as if this Act had not been enacted; and orders is-
sued in any such proceedings shall continue in effect until
modified, terminated, superseded, or revoked by a duly au-
thorized official, by a court of competent jurisdiction, or
by operation of law. Nothing in this subsection shall be
deemed to prohibit the discontinuance or modification of
any such proceeding under the same terms and conditions
Administration and the Department of Defense in effect
on the day before the date of the enactment of this Act
shall remain in effect until terminated in accordance with
the terms of such agreement.
SEC. 12. LAWS AND REGULATIONS.
Except to the extent otherwise provided in this Act
(including the amendments made by this Act), all laws,
rules, and regulations in effect and applicable to the Fed-
eral Aviation Administration of the Department of Trans-
portation and to the Administrator of such Administration
on the day before the effective date of this Act shall, on
and after such effective date, be applicable to the Federal
Aviation Administration and the Federal Aviation Board
established by this Act (including the amendments made
by this Act), until such law, rule, or regulation is repealed
or otherwise modified or amended.
SEC. 13. TERMINATION OF FAA OF DOT.
The Federal Aviation Administration of the Depart-
ment of Transportation is terminated.
SEC. 14. CORRESPONDING REDUCTIONS IN OFFICE OF SEC-
RETARY.
The Secretary of Transportation shall terminate 200
employee positions in the Office of the Secretary to reflect
reductions in the aviation responsibilities in the Office of
the Secretary by enactment of this Act.
SEC. 15. CONFORMING AMENDMENTS.
(a) 
FEDERAL
AVIATION
ADMINISTRATION
IN
DOT.—
(1) IN GENERAL.—Subject to paragraph (2),
subsections (a) through (j) of section 106 are re-
pealed.
(2) TECHNICAL ADJUSTMENTS.—
(A) IN GENERAL.—Subchapter II of chap-
ter 13 (as inserted by section 3 of this Act) is
amended—
(i) by adding at the end the following
new section heading:
‘‘§ 1317. Civil Aeromedical Institute’’; and
(ii) by inserting the text of section
106(j) as an undesignated paragraph
under such section heading.
(B) CHAPTER
ANALYSIS
AMENDMENT.—
The analysis for such chapter is amended by
adding after the item relating to section 1316
the following:
‘‘1317. Civil Aeromedical Institute.’’.
(3) AUTHORIZATION OF APPROPRIATIONS FOR
FAA OPERATIONS.—
(A) FISCAL YEAR 1996.—Section 106(k) is
amended by—
(i) striking ‘‘(k) AUTHORIZATION OF
APPROPRIATIONS
FOR
OPERATIONS.—’’;
and
(ii) by striking ‘‘Secretary of Trans-
portation’’ and inserting ‘‘Federal Aviation
Administration’’.
(B) CONFORMING AMENDMENT.—Effective
September 30, 1996, section 106, as amended
by this subsection, and the item relating to sec-
tion 106 in the analysis for chapter 1 are re-
pealed.
(b) GENERAL DUTIES AND POWERS OF THE DE-
PARTMENT OF TRANSPORTATION.—
(1) POLICY ON LANDS, WILDLIFE AND WATER-
FOWL REFUGES, AND HISTORIC SITES.—Section 303
is amended—
(A) in subsection (b) by inserting ‘‘and the
Federal Aviation Administration’’ after ‘‘of
Transportation’’; and
(B) in subsection (c) by inserting ‘‘and Ad-
ministration’’ after ‘‘Secretary’’.
(2) REPORTS.—Section 308(b) is amended by
striking ‘‘Secretary’’ each place it appears and in-
serting ‘‘Federal Aviation Board’’.
(3) MEMBERS OF THE ARMED FORCES.—Sec-
tion 324 is amended—
(A) by striking subsection (a) and insert-
ing the following:
‘‘(a) IN GENERAL.—
‘‘(1) FAA.—The Federal Aviation Administra-
tion, to ensure that national defense interests are
safeguarded properly and that the Administration is
advised properly about the needs and special prob-
lems of the armed forces, shall provide for participa-
tion of members of the armed forces in carrying out
the duties and powers of the Administration related
to the regulation and protection of air traffic, includ-
ing providing for, and research and development of,
air navigation facilities, and the allocation of air-
space.
‘‘(2) SECRETARY
OF
TRANSPORTATION.—The
Secretary of Transportation may provide for partici-
pation of members of the armed forces in carrying
out other duties and powers of the Secretary.’’; and
(B) in subsection (d) by inserting after
‘‘Transportation’’ each place it appears the fol-
lowing: ‘‘or Federal Aviation Administration’’.
(4) JUDICIAL
REVIEW.—Section 351(a) is
amended—