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of the Federal Aviation Administration and the Depart-
ment of Transportation to conduct a complete audit of the
financial requirements of the agency, including anticipated
air traffic forecasts, other workload measures, and esti-
mated productivity gains which lead to budgetary require-
ments. The independent audit shall be completed no later
than 180 days after contract award and shall be submitted
to the panel.
(d) 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.
(e) 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.).
(f) 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.
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SEC. 9. 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. 10. 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
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(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
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and to the extent that such proceeding could have been
discontinued or modified if this Act had not been enacted.
(c) SUITS.—
(1) EFFECT ON PENDING SUITS.—The provi-
sions of this Act (including the amendments made
by this Act) shall not affect suits commenced prior
to the effective date of this section.
(2) PROCEDURES.—In all suits commenced
prior to the effective date of this section, proceedings
shall be had, appeals taken, and judgments rendered
in the same manner and effect as if this Act had not
been enacted.
(d) ADMINISTRATOR.—If the Chief Executive Officer
of the Federal Aviation Administration is not appointed
by the Federal Aviation Board on the effective date of this
section, the person serving as the Administrator of the
Federal Aviation Administration on the day before such
effective date shall act as the Chief Executive Officer until
the Chief Executive Officer is appointed as provided in
section 1313 of title 49, United States Code. While so act-
ing, such person shall receive compensation at the rate
such person was receiving on the day before such effective
date.
(e) AGREEMENTS
WITH
DEPARTMENT
OF
DE-
FENSE.—Any agreement between the Federal Aviation
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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. 11. LAWS AND REGULATIONS.
Except to the extent otherwise provided in this Act
(including the amendments made by this Act), all laws,
rules, regulations, and executive orders in effect and appli-
cable to the Federal Aviation Administration of the De-
partment of Transportation 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 appli-
cable to the Federal Aviation Administration and the Fed-
eral Aviation Board established by this Act (including the
amendments made by this Act), until such law, rule, regu-
lation, or executive order is repealed or otherwise modified
or amended.
SEC. 12. TERMINATION OF FAA OF DOT.
The Federal Aviation Administration of the Depart-
ment of Transportation is terminated.
SEC. 13. CORRESPONDING REDUCTIONS IN OFFICE OF SEC-
RETARY.
The Secretary of Transportation shall terminate 200
employee positions in the Office of the Secretary to reflect
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reductions in the aviation responsibilities in the Office of
the Secretary by enactment of this Act.
SEC. 14. 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.—
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(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) LEADERSHIP, CONSULTATION, AND
CO-
OPERATION.—Section 301(6) is amended by striking
‘‘, with particular attention to aircraft noise, and in-
cluding’’ and inserting ‘‘and’’.
(2) 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
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(B) in subsection (c) by inserting ‘‘and Ad-
ministration’’ after ‘‘Secretary’’.
(3) REPORTS.—Section 308(b) is amended—
(A) by striking ‘‘Secretary’’ the 1st place
it appears and inserting ‘‘Federal Aviation
Board’’;
(B) by striking ‘‘Department’’ and insert-
ing ‘‘Federal Aviation Administration’’; and
(C) by striking ‘‘Secretary’’ the 2nd and
3rd places it appears and inserting ‘‘Board’’.
(4) 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,
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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’’.
(5) JUDICIAL
REVIEW.—Section 351(a) is
amended—
(A) by striking ‘‘An’’ and inserting ‘‘Sub-
ject to section 1335, an’’; and
(B) by striking ‘‘, the Federal Highway
Administration, or the Federal Aviation Admin-
istration’’ and inserting ‘‘or the Federal High-
way Administration’’.
(6) AUTHORITY
TO
CARRY
OUT
CERTAIN
TRANSFERRED DUTIES AND POWERS.—Section 352
is amended by striking ‘‘, the Federal Highway Ad-
ministration, and the Federal Aviation Administra-
tion’’ and inserting ‘‘and the Federal Highway Ad-
ministration’’.
(7) TOXICOLOGICAL TESTING.—Section 353(a)
is amended—
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(A) by inserting before ‘‘conducts’’ the fol-
lowing: ‘‘or the Federal Aviation Administra-
tion’’;
(B) by inserting after ‘‘Department’’ the
second place it appears ‘‘or Administration’’;
and
(C) by inserting before ‘‘shall’’ each place
it appears ‘‘or Chief Executive Officer of the
Administration’’.
(c) FUNCTIONS OF FAA.—
(1) 
NATIONAL
TRANSPORTATION
SAFETY
BOARD.—
(A) DISCLOSURE OF DRUG TEST INFORMA-
TION TO NTSB.—Section 1114(d)(1) is amend-
ed—
(i) by inserting before ‘‘shall’’ the fol-
lowing: ‘‘and the Federal Aviation Admin-
istration’’;
(ii) in subparagraph (A) by inserting
before ‘‘under post-accident’’ the following:
‘‘or the Administration’’; and
(iii) in subparagraph (A) by inserting
before ‘‘, when’’ the following: ‘‘or the Ad-
ministration’’.
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(B) INVESTIGATION
OF
CERTAIN
ACCI-
DENTS.—Section 1131(c)(1) is amended by in-
serting ‘‘or the Federal Aviation Administra-
tion, as the case may be,’’ after ‘‘Transpor-
tation’’.
(C) CIVIL AIRCRAFT ACCIDENT INVESTIGA-
TIONS.—Section 1132 is amended—
(i) in the heading to subsection (c) by
striking 
‘‘SECRETARY’’ 
and 
inserting
‘‘FEDERAL AVIATION ADMINISTRATION’’;
(ii) in subsection (c) by striking ‘‘Sec-
retary of Transportation’’ and inserting
‘‘Federal Aviation Administration’’;
(iii) in subsection (c) by striking ‘‘Sec-
retary’’ the 2nd and 3rd places it appears
and inserting ‘‘Administration’’; and
(iv) in subsection (d) by striking ‘‘Sec-
retary’’ each place it appears and inserting
‘‘Administration’’.
(D) REVIEW OF OTHER AGENCY ACTION.—
Section 1133(1) is amended by striking ‘‘Sec-
retary of Transportation’’ and inserting ‘‘Fed-
eral Aviation Administration’’.
(E) RESPONSES TO SAFETY RECOMMENDA-
TIONS.—Section 1135 is amended—
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(i) by striking the section heading and
inserting the following:
‘‘§ 1135. DOT’s and FAA’s responses to safety rec-
ommendations’’;
(ii) in subsection (a) by inserting after
‘‘Secretary of Transportation’’ the follow-
ing: ‘‘or the Federal Aviation Administra-
tion’’;
(iii) in subsection (a) by inserting ‘‘or
the Administration’’ after ‘‘Secretary’’ the
2nd and 3rd places it appears;
(iv) in subsection (d) by striking
‘‘shall’’ and inserting ‘‘and the Administra-
tion shall each’’;
(v) in subsection (d) by inserting be-
fore ‘‘during’’ the following: ‘‘or Adminis-
tration’’; and
(vi) in subsection (d) by inserting
after ‘‘Secretary’s’’ the following: ‘‘or Ad-
ministration’s’’.
(F) JUDICIAL REVIEW.—Section 1153(c) is
amended—
(i) in the subsection heading by strik-
ing ‘‘ADMINISTRATOR’’ and inserting ‘‘AD-
MINISTRATION’’;
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(ii) by striking ‘‘the Administrator
of’’; and
(iii) by striking ‘‘Administrator’’ the
second and third places it appears and in-
serting ‘‘Administration’’.
(G) 
CONFORMING
AMENDMENT.—The
analysis to chapter 11 is amended by striking
the item relating to section 1135 and inserting
the following:
‘‘1135. DOT’s and FAA’s responses to safety recommendations.’’.
(2) INTERMODAL
TRANSPORTATION
ADVISORY
BOARD.—Section 5502(b) is amended to read as fol-
lows:
‘‘(b) MEMBERSHIP.—The Board consists of—
‘‘(1) the Secretary, who serves as chairman;
‘‘(2) the Chief Executive Officer of the Federal
Aviation Administration or the Chief Executive Offi-
cer’s designee; and
‘‘(3) the Administrator, or the Administrator’s
designee, of—
‘‘(A) the Federal Highway Administration;
‘‘(B) the Maritime Administration;
‘‘(C) the Federal Railroad Administration;
and
‘‘(D) the Federal Transit Administra-
tion.’’.
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(3) GENERAL
PROVISIONS
RELATING
TO
AIR
COMMERCE AND SAFETY.—
(A) POLICY.—Section 40101 is amended—
(i) in subsection (a) by inserting after
‘‘Secretary of Transportation’’ the follow-
ing: ‘‘and the Federal Aviation Administra-
tion’’;
(ii) in subsection (c) by striking ‘‘Ad-
ministrator of the’’; and
(iii) in subsection (d) by striking ‘‘Ad-
ministrator’’ and inserting ‘‘Administra-
tion’’.
(B) DEFINITIONS.—Section 40102(a) is
amended—
(i) in paragraphs (8)(B) and (37) by
striking ‘‘the Administrator of’’;
(ii) in paragraph (20) by striking
‘‘Administrator’’ and inserting ‘‘Federal
Aviation Administration’’; and
(iii) by moving the second sentence of
paragraph (37) 2 ems to the left.
(C) SOVEREIGNTY
AND
USE
OF
AIR
SPACE.—Section 40103 is amended—
(i) in subsection (a)(2) by inserting
after ‘‘Secretary of Transportation’’ the
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following: ‘‘and the Federal Aviation Ad-
ministration’’; and
(ii) in subsection (b)—
(I) by striking ‘‘Administrator of
the’’; and
(II) by striking ‘‘Administrator’’
each place it appears after the first
and inserting ‘‘Administration’’.
(D) PROMOTION
OF
CIVIL
AERONAUTICS
AND AIR COMMERCE.—Section 40104 is amend-
ed—
(i) in subsection (a) by striking ‘‘Ad-
ministrator of the’’;
(ii) in subsection (a) by striking ‘‘Ad-
ministrator’’ each place it appears after
the first and inserting ‘‘Administration’’;
and
(iii) in subsection (b) by striking
‘‘Secretary of Transportation’’ and insert-
ing ‘‘Administration’’.
(E) 
INTERNATIONAL
NEGOTIATIONS,
AGREEMENTS, 
AND
OBLIGATIONS.—Section
40105 is amended—
(i) in subsection (a) by striking ‘‘Ad-
ministrator of the’’;