(5) ‘‘Secretary’’ means the Secretary of Trans-
portation.
(b) A term used in this Act that is not defined, but
which is defined in subtitle VII of title 49, United States
Code, has the meaning set forth in that subtitle.
TITLE II—TRANSFER OF AIR TRAFFIC
SERVICE FROM THE FEDERAL AVIA-
TION ADMINISTRATION
SEC. 201. ESTABLISHMENT OF THE CORPORATION.
There is hereby created a body corporate to be known
as the United States Air Traffic Service Corporation
(hereinafter referred to in this Act as the Corporation).
SEC. 202. STATUS AND APPLICABLE LAWS.
(a) STATUS.—The Corporation—
(1) is a wholly owned Government corporation
of the United States subject to Chapter 91 of title
31, United States Code (Government Corporations),
as provided in this Act, and may not sell equity in-
terests in the Corporation to the public;
(2) is subject to the regulatory authority of the
Federal Aviation Administration and the safety in-
vestigatory authority of the National Transportation
Safety Board (NTSB);
(3) shall operate the Federal air traffic control
system as a business enterprise on a safe and effi-
cient, self-supporting, and not-for-profit basis with-
out Federal Government appropriations or other
sources of Federal financing other than transfers
specified in this Act;
(4) shall not be subject to apportionment pursu-
ant to section 1513(b) of title 31, United States
Code; and
(5) may establish offices in places necessary or
appropriate in the conduct of its business.
(b) LIMITED APPLICATION OF TITLE 5 U.S.C. AND
PERSONNEL REQUIREMENTS.—Title 5, United States
Code, applies to the Corporation and its employees and
activities only to the extent set forth in sections 501 and
601 of this Act. For purposes of section 5 of Public Law
103–226 (March 30, 1994) (the Federal Workforce Re-
structuring Act of 1994), the Corporation does not qualify
as an Executive agency (as defined by section 105 of title
5, United States Code.) The Corporation shall fulfill the
requirements of title VI of this Act, and shall establish
appropriate personnel policies to manage its employees
efficiently.
(c) NONAPPLICATION OF CERTAIN FEDERAL ACQUI-
SITION AND RELATED REQUIREMENTS.—The Corporation
does not qualify as a department, agency, establishment,
or instrumentality of the United States Government for
purposes of Federal laws, regulations, or other require-
ments concerning acquisition of supplies and services, and
the acquisition, use, and disposal of real and personal
property, including the Federal Property and Administra-
tive Services Act (40 U.S.C. 471, et seq.), except that the
Corporation does qualify as a department, agency, estab-
lishment, or instrumentality of the United States Govern-
ment for the purposes of the Davis-Bacon Act (40 U.S.C.
276a–276–7), the McNamara-O’Hara Service Contract
Act (41 U.S.C. 351, et seq.), and the Contract Work
Hours and Safety Standards Act (40 U.S.C. 327, et seq.),
and civil rights laws and regulations that are applicable
to Federal contractors and subcontractors.
(d) FEDERAL ENVIRONMENTAL REQUIREMENTS.—
(1) The Corporation is subject to the requirements of the
National Environmental Policy Act, as amended (42
U.S.C. 4321, et seq.), and the actions of the Corporation
shall be Federal actions under the Act.
(2) The Corporation shall be an agency of the United
States Government for purposes of compliance with Fed-
eral law relating to the environment, including laws relat-
ing to clean air, clean water hazardous waste, park lands,
wilderness areas, wildlife, and historic properties.
(3) The Corporation shall be subject to a State law
or order relating to the environment only to the extent
that a Federal agency should be subject to that law or
order as a result of an express waiver of sovereign immu-
nity by statute or executive order.
(e) TRANSFER OF AIR TRAFFIC SYSTEM.—The Fed-
eral Aviation Administration shall transfer its control over
the air traffic system in the United States to the Corpora-
tion on the date of transfer, in a systematic and orderly
manner that assures complete continuity in air traffic con-
trol operations.
(f) CONTINUED APPLICABILITY OF THE ACT.—The
requirements of this Act shall continue to apply to the
Corporation throughout its existence. No entity other than
the United States Air Traffic Service Corporation, De-
partment of Defense units providing air traffic services,
or entities to which the Corporation has delegated air traf-
fic service responsibilities or contracted with for the provi-
sion of air traffic control services, is authorized or per-
mitted to perform air traffic control services on behalf of
the United States.
SEC. 203. BOARD OF DIRECTORS.
(a) COMPOSITION AND TERMS.—(1) The powers of
the Corporation are vested in a Board of Directors that
governs the Corporation and is composed of the following
11 Directors, each of whom shall be a citizen of the United
States, and shall not be an employee of the Corporation
(the Corporation’s employee bargaining unit representa-
tive excepted):
(A) The Secretary of Transportation, or the
Deputy Secretary of Transportation as designee of
the Secretary;
(B) The Secretary of Defense, or the Sec-
retary’s designee.
(C) Nine individuals appointed by the President
of the United States, by and with the advice and
consent of the Senate, who have knowledge of sound
corporate business practice and who, by virtue of
background and expertise, are equipped to represent
the interests of—
(i) air traffic system commercial users sub-
ject to the imposition of user fees in the case
of four appointments, but who are not employed
by an airline;
(ii) non-commercial aviation;
(iii) employee bargaining units, as signified
by being a Corporation employee bargaining
unit representative;
(iv) airports subject to air traffic service
requirements; and
(v) sound corporate business practice in
the case of two appointments.