I
104TH CONGRESS
1ST SESSION
H. R. 2403
To amend title 49, United States Code, with respect to the regulation of
interstate transportation by common carriers engaged in civil aviation,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 27, 1995
Mr. CLEMENT introduced the following bill; which was referred to the Com-
mittee on Transportation and Infrastructure, and in addition to the Com-
mittees on Small Business, Government Reform and Oversight, National
Security, and Rules, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To amend title 49, United States Code, with respect to
the regulation of interstate transportation by common
carriers engaged in civil aviation, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF SECTIONS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Air Traffic Management System Performance Improve-
ment Act of 1995’’.
(b) TABLE OF SECTIONS.—The table of sections for
this bill is as follows:
Sec. 1. Short title; table of sections.
Sec. 2. Definitions.
Sec. 3. Effective date.
TITLE I—GENERAL PROVISIONS
Sec. 101. Findings.
Sec. 102. Purposes.
Sec. 103. Regulation of civilian air transportation and related services by the
Federal Aviation Administration and the Department of Trans-
portation.
Sec. 104. Regulations.
Sec. 105. Personnel and services.
Sec. 106. Contracts.
Sec. 107. Budget.
Sec. 108. Facilities.
Sec. 109. Property.
Sec. 110. Select panel to review innovative funding mechanisms.
Sec. 111. Transfers of funds from other Federal agencies.
Sec. 112. Management Advisory Council.
Sec. 113. Aircraft engine standards.
TITLE II—FEDERAL AVIATION ADMINISTRATION STREAMLINING
PROGRAMS
Sec. 201. Innovative program for air traffic control modernization.
Sec. 202. Air traffic control modernization reviews.
Sec. 203. Innovative program for Federal Aviation Administration services.
TITLE III—SYSTEM TO FUND CERTAIN FEDERAL AVIATION
ADMINISTRATION FUNCTIONS
Sec. 301. Findings.
Sec. 302. Purposes.
Sec. 303. User fees for various Federal Aviation Administration services.
Sec. 304. User fees for air traffic control services.
Sec. 305. Administrative provisions.
Sec. 306. Increase in spending caps under trust fund.
Sec. 307. Advance appropriations for Airport and Airway Trust Fund Activi-
ties.
SEC. 2. DEFINITIONS.
For the purposes of this Act the following definitions
shall apply:
(1) ADMINISTRATION.—The term ‘‘Administra-
tion’’ means the Federal Aviation Administration.
(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Federal
Aviation Administration.
(3) FEDERAL
AGENCY.—The term ‘‘Federal
agency’’ means ‘‘agency’’ as defined in section
551(1) of title 5, United States Code.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Transportation.
SEC. 3. EFFECTIVE DATE.
The provisions of this Act and the amendments made
by this Act shall take effect on the date that is 30 days
after the date of the enactment of this Act.
TITLE I—GENERAL PROVISIONS
SEC. 101. FINDINGS.
Congress finds that:
(1) In many respects the Federal Aviation Ad-
ministration is a unique agency, being one of the few
non-defense government agencies that operates 24
hours a day, 365 days of the year, while continuing
to rely on outdated technology to carry out its re-
sponsibilities for a state-of-the-art industry.
(2) The users of the air transportation system
now pay 70 percent of the budget of the Federal
Aviation Administration, with the remaining 30 per-
cent coming from the General Fund. The General
Fund contribution over the years is one measure of
the benefit received by the general public, military,
and other users of Federal Aviation Administration’s
services.
(3) The Federal Aviation Administration must
become a more efficient, effective, and different or-
ganization to meet future challenges.
(4) The need to balance the Federal budget
means that the General Fund contribution cannot be
relied upon in the future to meet the Federal Avia-
tion Administration’s overall budget.
(5) Congress must keep its commitment to the
users of the national air transportation system by
seeking to spend all monies collected from them each
year and deposited into the Airport and Airways
Trust Fund.
(6) The aviation community and the employees
of the Federal Aviation Administration must come
together to improve the system. The Federal Avia-
tion Administration must continue to recognize who
its customers are and what their needs are, and to
design and redesign the system to make safety im-
provements and increase productivity.
(7) 
The 
Federal 
Aviation 
Administration
projects that commercial operations will increase by
18 percent and passenger traffic by 35 percent by
the year 2002. Without effective airport expansion
and system modernization, these needs cannot be
met.
(8) By the year 2003, the Federal Aviation Ad-
ministration, to the extent possible, must be user
supported, and have the ability to make rational
short term and long term decisions.
(9) Absent significant and meaningful reform,
future challenges and needs cannot be met.
(10) The Federal Aviation Administration must
have a new way of doing business.
(11) There is widespread agreement within gov-
ernment and the aviation industry that reform of the
Federal Aviation Administration is essential to safe-
ly and efficiently accommodate the projected growth
of aviation within the next decade.
(12) Because the Federal Aviation Administra-
tion is a unique Federal entity in that it is a partici-
pant in the daily operations of an industry, and be-
cause the national air transportation system faces
significant problems without significant changes, the
Federal Aviation Administration must be enabled to
change the Federal procurement and personnel sys-
tems to ensure that the Federal Aviation Adminis-
tration has the ability to keep pace with new tech-
nology and is able to match resources with the real
personnel needs of the Federal Aviation Administra-
tion.
(13) The existing budget system does not allow
for long-term planning or timely acquisition of tech-
nology by the Federal Aviation Administration.
(14) Without reforms in the areas of procure-
ment, personnel, funding, and governance, the Fed-
eral Aviation Administration will continue to experi-
ence delays and cost overruns in its major mod-
ernization programs and needed improvements in
the performance of the air traffic management sys-
tem will not occur.
(15) All reforms should be designed to help the
Federal Aviation Administration become more re-
sponsive to the needs of its customers.
SEC. 102. PURPOSES.
The purposes of this Act are—
(1) to ensure that final action shall be taken on
all notices of proposed rulemaking of the Federal
Aviation Administration within 18 months after the
date of their initiation;
(2) to permit the Federal Aviation Administra-
tion, with Congressional review, to establish an inno-
vative program for procurement reform;
(3) to permit the Federal Aviation Administra-
tion, with Congressional review, to establish an inno-
vative program for personnel reform;
(4) to permit the Federal Aviation Administra-
tion, with Congressional review, to establish a pro-
gram of incentive-based fees for services to improve
air traffic management system performance and to
establish appropriate levels of cost accountability for
air traffic management services provided by the Fed-
eral Aviation Administration;
(5) to establish a more autonomous and ac-
countable Federal Aviation Administration within
the Department of Transportation; and
(6) to make the Federal Aviation Administra-
tion a more efficient and effective organization, able
to meet the needs of a dynamic, growing industry,
and to ensure the safety of the travelling public.
SEC. 103. REGULATION OF CIVILIAN AIR TRANSPORTATION
AND RELATED SERVICES BY THE FEDERAL
AVIATION ADMINISTRATION AND DEPART-
MENT OF TRANSPORTATION.
(a) IN GENERAL.—Section 106 of title 49, United
States Code, is amended—
(1) by striking ‘‘The Administrator’’ in the fifth
sentence of subsection (b) and inserting ‘‘Except as
provided in subsection (f) of this section or in other
provisions of law, the Administrator’’; and
(2) by amending subsection (f) to read as
follows:
‘‘(f) AUTHORITY OF THE SECRETARY AND THE AD-
MINISTRATOR.—
‘‘(1) AUTHORITY OF THE SECRETARY.—Except
as provided in paragraph (2), the Secretary of
Transportation shall carry out the duties and powers
of the Administration.
‘‘(2) AUTHORITY
OF
THE
ADMINISTRATOR.—
The Administrator—
‘‘(A) is the final authority for carrying out
all functions, powers, and duties of the Admin-
istration relating to—
‘‘(i) the appointment and employment
of all officers and employees of the Admin-
istration (other than Presidential and po-
litical appointees);
‘‘(ii) the acquisition and maintenance
of property and equipment of the Adminis-
tration;
‘‘(iii) except as otherwise provided in
section 104 of the Air Traffic Management
System Performance Improvement Act of
1995, the promulgation of regulations,
rules, orders, circulars, bulletins, and other
official publications of the Administration;
and
‘‘(iv) any obligation imposed on the
Administrator, or power conferred on the
Administrator, by the Air Traffic Manage-
ment System Performance Improvement
Act of 1995 (or any amendment made by
that Act);
‘‘(B) shall offer advice and counsel to the
President with respect to the appointment and
qualifications of any officer or employee of the
Administration to be appointed by the Presi-
dent or as a political appointee;
‘‘(C) may delegate, and authorize succes-
sive redelegations of, to an officer or employee
of the Administration any function, power, or
duty conferred upon the Administrator, unless
such delegation is prohibited by law; and
‘‘(D) except as otherwise provided for in
this title, and notwithstanding any other provi-
sion of law to the contrary, shall not be re-
quired to coordinate, submit for approval or
concurrence, or seek the advice or views of the
Secretary or any other officer or employee of
the Department of Transportation on any mat-
ter with respect to which the Administrator is
the final authority.
‘‘(3) DEFINITION OF POLITICAL APPOINTEE.—
For purposes of this subsection, the term ‘political
appointee’ means any individual who—
‘‘(A) is employed in a position on the Ex-
ecutive Schedule under sections 5312 through
5316 of title 5, United States Code;
‘‘(B) is a limited term appointee, limited
emergency appointee, or noncareer appointee in
the Senior Executive Service as defined under
section 3132(a) (5), (6), and (7) of title 5,
United States Code, respectively; or
‘‘(C) is employed in a position in the exec-
utive branch of the Government of a confiden-
(b) APPROVAL
OF
SECRETARY
OF
TRANSPOR-
TATION.—
(1) GENERAL RULE.—The Administrator may
not issue a proposed regulation or final regulation
that is likely to result in the expenditure by State,
local, and tribal governments in the aggregate, or by
the private sector, of $50,000,000 or more (adjusted
annually for inflation beginning with the year follow-
ing the date of enactment of this Act) in any 1 year,
or any regulation which is significant, unless the
Secretary of Transportation approves the issuance of
the regulation in advance. For purposes of this para-
graph, a regulation is significant if it is likely to—
(A) have an annual effect on the economy
of $100 million or more or adversely affect in
a material way the economy, a sector of the
economy, productivity, competition, jobs, the
environment, public health or safety, or State,
local, or tribal governments or communities;
(B) create a serious inconsistency or other-
wise interfere with an action taken or planned
by another agency;
(C) materially alter the budgetary impact
of entitlements, grants, user fees, or loan pro-
grams or the rights and obligations of recipi-
ents thereof; or
(D) raise novel legal or policy issues aris-
ing out of legal mandates.
(2) EMERGENCY
ACTION.—In an emergency,
the Administrator may issue a regulation described
in paragraph (1) without prior approval by the Sec-
retary, but any such emergency regulation is subject
to ratification by the Secretary after it is issued and
shall be rescinded by the Administrator within 5
days (excluding Saturdays, Sundays and legal public
holidays) after issuance if the Secretary fails to
ratify its issuance.
(3) Any regulation that does not meet the cri-
teria of paragraph (1), and any regulation or other
action that is a routine or frequent action or a pro-
cedural action, may be issued by the Administrator
without review or approval by the Secretary.
(4) The Administrator shall submit a copy of
any regulation requiring approval by the Secretary
under paragraph (1) to the Secretary, who shall ei-
ther approve it or return it to the Administrator
with comments within 45 days after receiving it.
(c) PERIODIC REVIEW.—
(4) USE OF ADVISORY COMMITTEE.—The Ad-
ministrator may, in the Administrator’s discretion,
use an advisory committee to perform the review.
SEC. 105. PERSONNEL AND SERVICES.
(a) OFFICERS AND EMPLOYEES.—In the perform-
ance of the functions of the Administrator, the Adminis-
trator is authorized to appoint, transfer, and fix the com-
pensation of such officers and employees, including attor-
neys, as may be necessary to carry out the functions of
the Administrator and the Administration. Except as oth-
erwise provided by law, such officers and employees shall
be appointed in accordance with the civil service laws and
compensated in accordance with title 5, United States
Code. In fixing compensation and benefits of officers and
employees, the Administrator shall not engage in any type
of bargaining nor shall he be bound by any requirement
to establish such compensation or benefits at particular
levels.
(b) EXPERTS
AND CONSULTANTS.—The Adminis-
trator is authorized to obtain the services of experts and
consultants in accordance with section 3109 of title 5,
United States Code.
(c) TRANSPORTATION AND PER DIEM EXPENSES.—
The Administrator is authorized to pay transportation ex-
penses, and per diem in lieu of subsistence expenses, in
accordance with chapter 57 of title 5, United States Code.
(d) USE OF PERSONNEL FROM OTHER AGENCIES.—
The Administrator is authorized to utilize the services of
personnel of any other Federal agency.
(e) VOLUNTARY SERVICES.—
(1) IN GENERAL.—In exercising the authority
to accept gifts and voluntary services under section
326 of title 49, United States Code, and without re-
gard to section 1342 of title 31 of such Code, the
Administrator may not accept voluntary and uncom-
pensated services if such services are used to dis-
place Federal employees employed on a full-time,
part-time, or seasonal basis.
(2) EXPENSES.—The Administrator is author-
ized to provide for incidental expenses, including
transportation, lodging, and subsistence for volun-
teers who provide voluntary services under this sub-
section.
(3) ADMINISTRATIVE CONCERNS.—An individ-
ual who provides voluntary services under this sub-
section shall not be considered a Federal employee
for any purpose other than for purposes of chapter
81 of title 5, United States Code, relating to com-
pensation for work injuries, and chapter 171 of title
28, United States Code, relating to tort claims.
SEC. 106. CONTRACTS.
The Administrator is authorized to enter into and
perform such contracts, leases, cooperative agreements, or
other transactions as may be necessary to carry out the
functions of the Administrator and the Administration.
The Administrator may enter into such contracts, leases,
cooperative agreements, and other transactions with any
Federal agency or any instrumentality of the United
States, any State, territory, or possession, or political sub-
division thereof, any other governmental entity, or any
person, firm, association, corporation, or educational insti-
tution, on such terms and conditions as the Administrator
may consider appropriate.
SEC. 107. BUDGET.
(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.—Beginning with the budget for
first fiscal year beginning after the first fiscal year in
which the Federal Aviation Administration is funded en-
tirely by user fees, the Administrator shall prepare a budg-
et for the Administration for each fiscal year.
‘‘(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 Administrator shall submit
to the Secretary the budget prepared by the Adminis-
trator. The budget submission shall include a statement
of income and expenses and analysis of the surplus or defi-
cit in the Airport and Airway Trust Fund established
under section 9502 of the Internal Revenue Code of 1986,
and any other such supplementary information as is nec-
essary or desirable to make known about the financial con-
dition and operations of the Administrator. The annual
budget shall be included in the budget submitted by the
President pursuant to chapter 11 of title 31, United
States Code. The Secretary shall review the budget and
may recommend to the Administrator modifications in the
budget necessary to ensure that the budget is consistent
with the need of the national transportation system. The
Administrator, at its discretion, may modify the budget
to adopt any recommendation made by the Secretary.
‘‘(c) SUBMISSION OF BUDGET TO CONGRESS.—
‘‘(1) IN
GENERAL.—When the Administrator
submits to the President or the Director of the Of-
fice of Management and Budget any budget infor-
mation, legislative recommendation, or comment on
legislation about amounts authorized in section
48101 or 48102, the Administrator concurrently
shall submit a copy of the information, recommenda-
tion, or comment to the Speaker of the House of
Representatives, the Committees on Transportation
and Infrastructure and Appropriations of the House
of Representatives, the President of the Senate, and
the Committees on Commerce, Science, and Trans-
portation 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) any modifications made by the Ad-
ministrator under subsection (b) with respect to
the budget; and
‘‘(B) if the Administrator 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.
‘‘(d) COST REDUCTION AND EFFICIENCY REPORT
REQUIRED.—Whenever the Administrator submits a re-
port, request, or proposal that contains an increase in ei-
ther the budget of the Administration or any of the fees
imposed by the Administration, the Administrator shall
submit, as a part of that report, request, or proposal—
‘‘(1) an explanation that states specifically the
need for the increase; and
‘‘(2) a statement of any steps taken by the Ad-
ministration to reduce costs and improve efficiency
in order to avoid or limit the increase.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 481 of such title is amended by striking the item
relating to section 48109 and inserting the following:
‘‘48109. Budget information and legislative recommendations and comments.’’.
SEC. 108. FACILITIES.
With the consent of appropriate officials, the Admin-
istrator may, with or without reimbursement, use or ac-
cept the services, equipment, personnel, and facilities of
any other Federal agency and any other public or private
agency. The Administrator may also cooperate with appro-
priate officials of other public and private agencies and
instrumentalities concerning the use of services, equip-
ment, personnel, and facilities. The head of each Federal
agency shall cooperate with the Administrator in making
the services, equipment, personnel, and facilities of the
Federal agency available to the Administrator. The head
of a Federal agency is authorized, notwithstanding any
other provision of law, to transfer to or to receive from
the Administration, without reimbursement, supplies and
equipment other than administrative supplies or equip-
ment.
SEC. 109. PROPERTY.
(a) ACQUISITION.—The Administrator is author-
ized—
(1) to acquire (by purchase, lease, condemna-
tion, or otherwise), construct, improve, repair, oper-
ate, and maintain—
(A) air traffic control facilities and equip-
ment;
(B) research and testing sites and facili-
ties; and
(C) such other real and personal property
(including office space and patents), or any in-
terest therein, within and outside the continen-
tal United States as the Administrator consid-
ers necessary;
(2) to lease to others such real and personal
property; and
(3) to provide by contract or otherwise for eat-
ing facilities and other necessary facilities for the
welfare of employees of the Administration at the in-
stallations of the Administrator, and to purchase
and maintain equipment for these facilities.