H. R. 3539—6
(b) AMOUNTS APPORTIONED TO STATES.—Section 47114(d)(2) of
such title is amended—
(1) by striking ‘‘12’’ and inserting ‘‘18.5’’;
(2) in subparagraph (A) by striking ‘‘one’’ and inserting
‘‘0.66’’;
(3) in each of subparagraphs (B) and (C) by striking ‘‘49.5’’
and inserting ‘‘49.67’’; and
(4) in each of subparagraphs (B) and (C) by striking
‘‘except’’ the second place it appears and all that follows through
‘‘title,’’ and inserting ‘‘excluding primary airports but including
reliever and nonprimary commercial service airports,’’.
SEC. 122. DISCRETIONARY FUND.
Section 47115 is amended by striking the second subsection
(f), relating to minimum amounts to be credited, and inserting
the following:
‘‘(g) MINIMUM AMOUNT TO BE CREDITED.—
‘‘(1) GENERAL RULE.—In a fiscal year, there shall be cred-
ited to the fund, out of amounts made available under section
48103 of this title, an amount that is at least equal to the
sum of—
‘‘(A) $148,000,000; plus
‘‘(B) the total amount required from the fund to carry
out in the fiscal year letters of intent issued before January
1, 1996, under section 47110(e) of this title or the Airport
and Airway Improvement Act of 1982.
The amount credited is exclusive of amounts that have been
apportioned in a prior fiscal year under section 47114 of this
title and that remain available for obligation.
‘‘(2) REDUCTION OF APPORTIONMENTS.—In a fiscal year in
which the amount credited under subsection (a) is less than
the minimum amount to be credited under paragraph (1), the
total amount calculated under paragraph (3) shall be reduced
by an amount that, when credited to the fund, together with
the amount credited under subsection (a), equals such minimum
amount.
‘‘(3) AMOUNT OF REDUCTION.—For a fiscal year, the total
amount available to make a reduction to carry out paragraph
(2) is the total of the amounts determined under sections
47114(c)(1)(A), 47114(c)(2), 47114(d), and 47117(e) of this title.
Each amount shall be reduced by an equal percentage to achieve
the reduction.
‘‘(4) SPECIAL RULE.—For a fiscal year in which the amount
credited to the fund under this subsection exceeds $300,000,000,
the Secretary shall allocate the amount of such excess as
follows:
‘‘(A) 1⁄3 shall be made available to airports for which
apportionments are made under section 47114(d) of this
title.
‘‘(B) 1⁄3 shall be made available for airport noise
compatibility planning under section 47505(a)(2) of this
title and for carrying out noise compatibility programs
under section 47504(c)(1) of this title.
‘‘(C) 1⁄3 shall be made available to current or former
military airports for which grants may be made under
section 47117(e)(1)(B) of this title.’’.
H. R. 3539—7
SEC. 123. USE OF APPORTIONED AMOUNTS.
(a) PERIOD OF AVAILABILITY.—Section 47117(b) is amended by
inserting before the period at the end of the first sentence the
following: ‘‘or the 3 fiscal years immediately following that year
in the case of a primary airport that had less than .05 percent
of the total boardings in the United States in the preceding calendar
year’’.
(b) SPECIAL APPORTIONMENT CATEGORIES.—Section 47117(e)(1)
is amended—
(1) by striking ‘‘made available under section 48103’’ and
inserting ‘‘available to the discretionary fund under section
47115’’;
(2) by striking subparagraphs (A), (C), and (D);
(3) by redesignating subparagraphs (B) and (E) as subpara-
graphs (A) and (B), respectively;
(4) in subparagraph (A), as so redesignated, by striking
‘‘at least 12.5’’ and inserting ‘‘At least 31’’;
(5) by adding at the end of subparagraph (A), as so redesig-
nated, the following: ‘‘The Secretary may count the amount
of grants made for such planning and programs with funds
apportioned under section 47114 in that fiscal year in determin-
ing whether or not such 31 percent requirement is being met
in that fiscal year.’’;
(6) in subparagraph (B), as so redesignated, by striking
‘‘at least 2.25’’ and all that follows through ‘‘1996,’’ and inserting
‘‘At least 4 percent for each fiscal year thereafter’’; and
(7) by inserting before the period at the end of subpara-
graph (B), as so redesignated, the following: ‘‘and to sponsors
of noncommercial service airports for grants for operational
and maintenance expenses at any such airport if the amount
of such grants to the sponsor of the airport does not exceed
$30,000 in that fiscal year, if the Secretary determines that
the airport is adversely affected by the closure or realignment
of a military base, and if the sponsor of the airport certifies
that the airport would otherwise close if the airport does not
receive the grant’’.
(c) CONFORMING AMENDMENTS.—Section 47117(e) is amended—
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
SEC. 124. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.
(a) GENERAL REQUIREMENTS.—Section 47118(a) is amended to
read as follows:
‘‘(a) GENERAL REQUIREMENTS.—The Secretary of Transportation
shall designate current or former military airports for which grants
may be made under section 47117(e)(1)(B) of this title. The maxi-
mum number of airports bearing such designation at any time
is 12. The Secretary may only so designate an airport (other than
an airport so designated before August 24, 1994) if—
‘‘(1) the airport is a former military installation closed
or realigned under—
‘‘(A) section 2687 of title 10;
‘‘(B) section 201 of the Defense Authorization Amend-
ments and Base Closure and Realignment Act (10 U.S.C.
2687 note); or
‘‘(C) section 2905 of the Defense Base Closure and
Realignment Act of 1990 (10 U.S.C. 2687 note); or
H. R. 3539—8
‘‘(2) the Secretary finds that such grants would—
‘‘(A) reduce delays at an airport with more than 20,000
hours of annual delays in commercial passenger aircraft
takeoffs and landings; or
‘‘(B) enhance airport and air traffic control system
capacity in a metropolitan area or reduce current and
projected flight delays.’’.
(b) ADDITIONAL DESIGNATION PERIODS.—Section 47118(d) is
amended by striking ‘‘designation.’’ and inserting ‘‘designation, and
for subsequent 5-fiscal-year periods if the Secretary determines
that the airport satisfies the designation criteria under subsection
(a) at the beginning of each such subsequent 5-fiscal-year period.’’.
(c) PARKING LOTS, FUEL FARMS, UTILITIES, AND HANGARS.—
Section 47118(f) is amended—
(1) in the heading by striking ‘‘AND UTILITIES’’ and inserting
‘‘UTILITIES, AND HANGARS’’;
(2) by striking ‘‘for the fiscal years ending September 30,
1993–1996,’’ and inserting ‘‘for fiscal years beginning after
September 30, 1992,’’; and
(3) by striking ‘‘and utilities’’ and inserting ‘‘utilities, and
hangars’’.
(d) 2-YEAR EXTENSION.—Section 47117(e)(1)(B), as redesignated
by section 123(b) of this Act, is amended by striking ‘‘and 1996,’’
and inserting ‘‘1996, 1997, and 1998’’.
SEC. 125. PERIOD OF APPLICABILITY OF AMENDMENTS.
The amendments made by this subtitle shall cease to be effec-
tive on September 30, 1998. On and after such date, sections 47114,
47115, 47117, and 47118 of title 49, United States Code, shall
read as if such amendments had not been enacted.
Subtitle C—Airport Improvement Program
Modifications
SEC. 141. INTERMODAL PLANNING.
Section 47101(g) is amended to read as follows:
‘‘(g) INTERMODAL PLANNING.—To carry out the policy of sub-
section (a)(5) of this section, the Secretary of Transportation shall
take each of the following actions:
‘‘(1) COORDINATION IN DEVELOPMENT OF AIRPORT PLANS AND
PROGRAMS.—Cooperate with State and local officials in develop-
ing airport plans and programs that are based on overall
transportation needs. The airport plans and programs shall
be developed in coordination with other transportation planning
and considering comprehensive long-range land-use plans and
overall social, economic, environmental, system performance,
and energy conservation objectives. The process of developing
airport plans and programs shall be continuing, cooperative,
and comprehensive to the degree appropriate to the complexity
of the transportation problems.
‘‘(2) GOALS
FOR
AIRPORT
MASTER
AND
SYSTEM
PLANS.—
Encourage airport sponsors and State and local officials to
develop airport master plans and airport system plans that—
‘‘(A) foster effective coordination between aviation plan-
ning and metropolitan planning;
H. R. 3539—9
‘‘(B) include an evaluation of aviation needs within
the context of multimodal planning; and
‘‘(C) are integrated with metropolitan plans to ensure
that airport development proposals include adequate
consideration of land use and ground transportation access.
‘‘(3) REPRESENTATION OF AIRPORT OPERATORS ON MPO’S.—
Encourage metropolitan planning organizations, particularly in
areas with populations greater than 200,000, to establish mem-
bership positions for airport operators.’’.
SEC. 142. PAVEMENT MAINTENANCE PROGRAM.
(a) PAVEMENT MAINTENANCE.—Subchapter I of chapter 471 is
amended by adding at the end the following:
‘‘§ 47132. Pavement maintenance
‘‘(a) IN GENERAL.—The Administrator of the Federal Aviation
Administration shall issue guidelines to carry out a pavement
maintenance pilot project to preserve and extend the useful life
of runways, taxiways, and aprons at airports for which apportion-
ments are made under section 47114(d). The guidelines shall pro-
vide that the Administrator may designate not more than 10
projects. The guidelines shall provide criteria for the Administrator
to use in choosing the projects. At least 2 such projects must
be in States without a primary airport that had 0.25 percent or
more of the total boardings in the United States in the preceding
calendar year. In designating a project, the Administrator shall
take into consideration geographical, climatological, and soil diver-
sity.
‘‘(b) EFFECTIVE DATE.—This section shall be effective beginning
on the date of the enactment of this section and ending on Septem-
ber 30, 1999.’’.
(b) COMPLIANCE WITH FEDERAL MANDATES.—
(1) USE OF AIP GRANTS.—Section 47102(3) is amended—
(A) in subparagraph (E) by inserting ‘‘or under section
40117’’ before the period at the end; and
(B) in subparagraph (F) by striking ‘‘paid for by a
grant under this subchapter and’’.
(2) 
USE
OF
PASSENGER
FACILITY
CHARGES.—Section
40117(a)(3) is amended—
(A) by inserting ‘‘and’’ at the end of subparagraph
(D);
(B) by striking ‘‘; and’’ at the end of subparagraph
(E) and inserting a period; and
(C) by striking subparagraph (F).
(c) CONFORMING AMENDMENT.—The table of sections for such
subchapter is amended by inserting after the item relating to section
47131 the following:
‘‘47132. Pavement maintenance.’’.
SEC. 143. ACCESS TO AIRPORTS BY INTERCITY BUSES.
Section 47107(a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (18);
(2) by striking the period at the end of paragraph (19)
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(20) the airport owner or operator will permit, to the
maximum extent practicable, intercity buses or other modes
of transportation to have access to the airport, but the sponsor
H. R. 3539—10
does not have any obligation under this paragraph, or because
of it, to fund special facilities for intercity bus service or for
other modes of transportation.’’.
SEC. 144. COST REIMBURSEMENT FOR PROJECTS COMMENCED PRIOR
TO GRANT AWARD.
(a) COST REIMBURSEMENT.—Section 47110(b)(2)(C) is amended
to read as follows:
‘‘(C) if the Government’s share is paid only with amounts
apportioned under paragraphs (1) and (2) of section 47114(c)
of this title and if the cost is incurred—
‘‘(i) after September 30, 1996;
‘‘(ii) before a grant agreement is executed for the
project; and
‘‘(iii) in accordance with an airport layout plan
approved by the Secretary and with all statutory and
administrative 
requirements 
that 
would 
have 
been
applicable to the project if the project had been carried
out after the grant agreement had been executed;’’.
(b) USE OF DISCRETIONARY FUNDS.—Section 47110 is amended
by adding at the end the following:
‘‘(g) USE OF DISCRETIONARY FUNDS.—A project for which cost
reimbursement is provided under subsection (b)(2)(C) shall not
receive priority consideration with respect to the use of discretionary
funds made available under section 47115 of this title even if
the amounts made available under paragraphs (1) and (2) of section
47114(c) are not sufficient to cover the Government’s share of the
cost of project.’’.
SEC. 145. SELECTION OF PROJECTS FOR GRANTS FROM DISCRE-
TIONARY FUND.
(a) SELECTION
OF PROJECTS
FOR GRANTS.—Section 47115(d)
is amended—
(1) by striking ‘‘; and’’ at the end of paragraph (2) and
inserting the following: ‘‘, including, in the case of a project
at a reliever airport, the number of operations projected to
be diverted from a primary airport to the reliever airport as
a result of the project, as well as the cost savings projected
to be realized by users of the local airport system;’’;
(2) by striking the period at the end of paragraph (3)
and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(4) the airport improvement priorities of the States, and
regional offices of the Administration, to the extent such prior-
ities are not in conflict with paragraphs (1) and (2);
‘‘(5) the projected growth in the number of passengers
that will be using the airport at which the project will be
carried out; and
‘‘(6) any increase in the number of passenger boardings
in the preceding 12-month period at the airport at which the
project will be carried out, with priority consideration to be
given to projects at airports at which the number of passenger
boardings increased by at least 20 percent as compared to
the number of passenger boardings in the 12-month period
preceding such period.’’.
(b) PRIORITY
FOR LETTERS
OF INTENT.—Section 47115, as
amended by section 122 of this Act, is further amended by adding
at the end the following:
H. R. 3539—11
‘‘(h) PRIORITY FOR LETTERS OF INTENT.—In making grants in
a fiscal year with funds made available under this section, the
Secretary shall fulfill intentions to obligate under section 47110(e).’’.
SEC. 146. SMALL AIRPORT FUND.
Section 47116 is amended by adding at the end the following:
‘‘(d) PRIORITY CONSIDERATION FOR CERTAIN PROJECTS.—In mak-
ing grants to sponsors described in subsection (b)(2), the Secretary
shall give priority consideration to multi-year projects for construc-
tion of new runways that the Secretary finds are cost beneficial
and would increase capacity in a region of the United States.’’.
SEC. 147. STATE BLOCK GRANT PROGRAM.
(a) PARTICIPATING STATES.—Section 47128 is amended—
(1) in subsection (a) by striking ‘‘7 qualified States’’ and
inserting ‘‘8 qualified States for fiscal year 1997 and 9 qualified
States for each fiscal year thereafter’’;
(2) in subsection (b)(1)—
(A) by striking ‘‘(1)’’; and
(B) by redesignating subparagraphs (A) through (E)
as paragraphs (1) through (5), respectively; and
(3) by striking subsection (b)(2).
(b) USE
OF STATE PRIORITY SYSTEM.—Section 47128(c) is
amended—
(1) by striking ‘‘(b)(1)(B) or (C)’’ and inserting ‘‘(b)(2) or
(b)(3)’’; and
(2) by adding at the end the following: ‘‘In carrying out
this subsection, the Secretary shall permit a State to use the
priority system of the State if such system is not inconsistent
with the national priority system.’’.
(c) REPEAL OF EXPIRATION DATE.—
(1) IN GENERAL.—Section 47128 is amended—
(A) by striking ‘‘pilot’’ in the section heading;
(B) by striking ‘‘pilot’’ in subsection (a); and
(C) by striking subsection (d).
(2) CONFORMING AMENDMENT.—The table of sections for
chapter 471 is amended by striking the item relating to section
47128 and inserting the following:
‘‘47128. State block grant program.’’.
SEC. 148. INNOVATIVE FINANCING TECHNIQUES.
(a) IN GENERAL.—The Secretary of Transportation is authorized
to carry out a demonstration program under which the Secretary
may approve applications under subchapter I of chapter 471 of
title 49, United States Code, for not more than 10 projects for
which grants received under such subchapter may be used to imple-
ment innovative financing techniques.
(b) PURPOSE.—The purpose of the demonstration program shall
be to provide information on the use of innovative financing tech-
niques for airport development projects to Congress and the
National Civil Aviation Review Commission.
(c) LIMITATION.—In no case shall the implementation of an
innovative financing technique under the demonstration program
result in a direct or indirect guarantee of any airport debt
instrument by the Federal Government.
(d) INNOVATIVE FINANCING TECHNIQUE DEFINED.—In this sec-
tion, the term ‘‘innovative financing technique’’ shall be limited
to the following:
H. R. 3539—12
(1) Payment of interest.
(2) Commercial bond insurance and other credit enhance-
ment associated with airport bonds for eligible airport develop-
ment.
(3) Flexible non-Federal matching requirements.
(e) EXPIRATION OF AUTHORITY.—The authority of the Secretary
to carry out the demonstration program shall expire on September
30, 1998.
SEC. 149. PILOT PROGRAM ON PRIVATE OWNERSHIP OF AIRPORTS.
(a) ESTABLISHMENT OF PROGRAM.—
(1) IN GENERAL.—Subchapter I of chapter 471, as amended
by section 804 of this Act, is further amended by adding after
section 47133 the following:
‘‘§ 47134. Pilot program on private ownership of airports
‘‘(a) SUBMISSION
OF APPLICATIONS.—If a sponsor intends to
sell or lease a general aviation airport or lease any other type
of airport for a long term to a person (other than a public agency),
the sponsor and purchaser or lessee may apply to the Secretary
of Transportation for exemptions under this section.
‘‘(b) APPROVAL OF APPLICATIONS.—The Secretary may approve,
with respect to not more than 5 airports, applications submitted
under subsection (a) granting exemptions from the following provi-
sions:
‘‘(1) USE OF REVENUES.—
‘‘(A) IN GENERAL.—The Secretary may grant an exemp-
tion to a sponsor from the provisions of sections 47107(b)
and 47133 of this title (and any other law, regulation,
or grant assurance) to the extent necessary to permit the
sponsor to recover from the sale or lease of the airport
such amount as may be approved—
‘‘(i) by at least 65 percent of the air carriers serving
the airport; and
‘‘(ii) by air carriers whose aircraft landing at the
airport during the preceding calendar year had a total
landed weight during the preceding calendar year of
at least 65 percent of the total landed weight of all
aircraft landing at the airport during such year.
‘‘(B) LANDED WEIGHT DEFINED.—In this paragraph, the
term ‘landed weight’ means the weight of aircraft transport-
ing passengers or cargo, or both, in intrastate, interstate,
and foreign air transportation, as the Secretary determines
under regulations the Secretary prescribes.
‘‘(2) REPAYMENT REQUIREMENTS.—The Secretary may grant
an exemption to a sponsor from the provisions of sections
47107 and 47152 of this title (and any other law, regulation,
or grant assurance) to the extent necessary to waive any obliga-
tion of the sponsor to repay to the Federal Government any
grants, or to return to the Federal Government any property,
received by the airport under this title, the Airport and Airway
Improvement Act of 1982, or any other law.
‘‘(3) COMPENSATION FROM AIRPORT OPERATIONS.—The Sec-
retary may grant an exemption to a purchaser or lessee from
the provisions of sections 47107(b) and 47133 of this title (and
any other law, regulation, or grant assurance) to the extent
H. R. 3539—13
necessary to permit the purchaser or lessee to earn compensa-
tion from the operations of the airport.
‘‘(c) TERMS AND CONDITIONS.—The Secretary may approve an
application under subsection (b) only if the Secretary finds that
the sale or lease agreement includes provisions satisfactory to the
Secretary to ensure the following:
‘‘(1) The airport will continue to be available for public
use on reasonable terms and conditions and without unjust
discrimination.
‘‘(2) The operation of the airport will not be interrupted
in the event that the purchaser or lessee becomes insolvent
or seeks or becomes subject to any State or Federal bankruptcy,
reorganization, insolvency, liquidation, or dissolution proceed-
ing or any petition or similar law seeking the dissolution or
reorganization of the purchaser or lessee or the appointment
of a receiver, trustee, custodian, or liquidator for the purchaser
or lessee or a substantial part of the purchaser or lessee’s
property, assets, or business.
‘‘(3) The purchaser or lessee will maintain, improve, and
modernize the facilities of the airport through capital invest-
ments and will submit to the Secretary a plan for carrying
out such maintenance, improvements, and modernization.
‘‘(4) Every fee of the airport imposed on an air carrier
on the day before the date of the lease of the airport will
not increase faster than the rate of inflation unless a higher
amount is approved—
‘‘(A) by at least 65 percent of the air carriers serving
the airport; and
‘‘(B) by air carriers whose aircraft landing at the airport
during the preceding calendar year had a total landed
weight during the preceding calendar year of at least 65
percent of the total landed weight of all aircraft landing
at the airport during such year.
‘‘(5) The percentage increase in fees imposed on general
aviation aircraft at the airport will not exceed the percentage
increase in fees imposed on air carriers at the airport.
‘‘(6) Safety and security at the airport will be maintained
at the highest possible levels.
‘‘(7) The adverse effects of noise from operations at the
airport will be mitigated to the same extent as at a public
airport.
‘‘(8) Any adverse effects on the environment from airport
operations will be mitigated to the same extent as at a public
airport.
‘‘(9) Any collective bargaining agreement that covers
employees of the airport and is in effect on the date of the
sale or lease of the airport will not be abrogated by the sale
or lease.
‘‘(d) PARTICIPATION OF CERTAIN AIRPORTS.—
‘‘(1) 
GENERAL
AVIATION
AIRPORTS.—If 
the 
Secretary
approves under subsection (b) applications with respect to 5
airports, one of the airports must be a general aviation airport.
‘‘(2) LARGE HUB AIRPORTS.—The Secretary may not approve
under subsection (b) more than 1 application submitted by
an airport that had 1 percent or more of the total passenger
boardings (as defined in section 47102) in the United States
in the preceding calendar year.
H. R. 3539—14
‘‘(e) REQUIRED FINDING THAT APPROVAL WILL NOT RESULT IN
UNFAIR METHODS OF COMPETITION.—The Secretary may approve
an application under subsection (b) only if the Secretary finds
that the approval will not result in unfair and deceptive practices
or unfair methods of competition.
‘‘(f) INTERESTS
OF GENERAL AVIATION USERS.—In approving
an application of an airport under this section, the Secretary shall
ensure that the interests of general aviation users of the airport
are not adversely affected.
‘‘(g) PASSENGER FACILITY FEES; APPORTIONMENTS; SERVICE
CHARGES.—Notwithstanding that the sponsor of an airport receiving
an exemption under subsection (b) is not a public agency, the
sponsor shall not be prohibited from—
‘‘(1) imposing a passenger facility fee under section 40117
of this title;
‘‘(2) receiving apportionments under section 47114 of this
title; or
‘‘(3) collecting reasonable rental charges, landing fees, and
other service charges from aircraft operators under section
40116(e)(2) of this title.
‘‘(h) EFFECTIVENESS OF EXEMPTIONS.—An exemption granted
under subsection (b) shall continue in effect only so long as the
facilities sold or leased continue to be used for airport purposes.
‘‘(i) REVOCATION OF EXEMPTIONS.—The Secretary may revoke
an exemption issued to a purchaser or lessee of an airport under
subsection (b)(3) if, after providing the purchaser or lessee with
notice and an opportunity to be heard, the Secretary determines
that the purchaser or lessee has knowingly violated any of the
terms specified in subsection (c) for the sale or lease of the airport.
‘‘(j) NONAPPLICATION OF PROVISIONS TO AIRPORTS OWNED BY
PUBLIC AGENCIES.—The provisions of this section requiring the
approval of air carriers in determinations concerning the use of
revenues, and imposition of fees, at an airport shall not be extended
so as to apply to any airport owned by a public agency that is
not participating in the program established by this section.
‘‘(k) AUDITS.—The Secretary may conduct periodic audits of
the financial records and operations of an airport receiving an
exemption under this section.
‘‘(l) REPORT.—Not later than 2 years after the date of the
initial approval of an application under this section, the Secretary
shall transmit to the Committee on Transportation and Infrastruc-
ture of the House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate a report on
implementation of the program under this section.
‘‘(m) GENERAL AVIATION AIRPORT DEFINED.—In this section,
the term ‘general aviation airport’ means an airport that is not
a commercial service airport.’’.
(2) CONFORMING AMENDMENT.—The table of sections for
such chapter is amended by inserting after the item relating
to section 47133, as added by section 804 of this Act, the
following:
‘‘47134. Pilot program on private ownership of airports.’’.
(b) TAXATION.—Section 40116(b) is amended—
(1) by striking ‘‘a State or’’ and inserting ‘‘a State, a’’;
and
H. R. 3539—15
(2) by inserting after ‘‘of a State’’ the following: ‘‘, and
any person that has purchased or leased an airport under
section 47134 of this title’’.
(c) FEDERAL SHARE.—Section 47109(a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2)
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) 40 percent for a project funded by the Administrator
from the discretionary fund under section 47115 at an airport
receiving an exemption under section 47134.’’.
(d) RESOLUTION OF AIRPORT-AIR CARRIER DISPUTES CONCERN-
ING AIRPORT FEES.—Section 47129(a) is amended by adding at
the end the following:
‘‘(4) FEES
IMPOSED
BY
PRIVATELY-OWNED
AIRPORTS.—In
evaluating the reasonableness of a fee imposed by an airport
receiving an exemption under section 47134 of this title, the
Secretary shall consider whether the airport has complied with
section 47134(c)(4).’’.
TITLE II—FAA REFORM
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Air Traffic Management System
Performance Improvement Act of 1996’’.
SEC. 202. DEFINITIONS.
In this title, the following definitions apply:
(1) ADMINISTRATION.—The term ‘‘Administration’’ means
the Federal Aviation Administration.
(2) ADMINISTRATOR.—The term ‘‘Administrator’’ means the
Administrator of the Federal Aviation Administration.
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Transportation.
SEC. 203. EFFECTIVE DATE.
The provisions of this title and the amendments made by this
title shall take effect on the date that is 30 days after the date
of the enactment of this Act.
Subtitle A—General Provisions
SEC. 221. FINDINGS.
Congress finds the following:
(1) In many respects the Administration 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 responsibilities
for a state-of-the-art industry.
(2) Until January 1, 1996, users of the air transportation
system paid 70 percent of the budget of the Administration,
with the remaining 30 percent 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 Administration’s services.
H. R. 3539—16
(3) The Administration must become a more efficient, effec-
tive, and different organization to meet future challenges.
(4) The need to balance the Federal budget means that
it may become more and more difficult to obtain sufficient
General Fund contributions to meet the Administration’s future
budget needs.
(5) Congress must keep its commitment to the users of
the national air transportation system by seeking to spend
all moneys collected from them each year and deposited into
the Airport and Airway Trust Fund. Existing surpluses rep-
resenting past receipts must also be spent for the purposes
for which such funds were collected.
(6) The aviation community and the employees of the
Administration must come together to improve the system.
The Administration must continue to recognize who its cus-
tomers are and what their needs are, and to design and redesign
the system to make safety improvements and increase
productivity.
(7) The 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 sys-
tem modernization, these needs cannot be met.
(8) Absent significant and meaningful reform, future chal-
lenges and needs cannot be met.
(9) The Administration must have a new way of doing
business.
(10) There is widespread agreement within government
and the aviation industry that reform of the Administration
is essential to safely and efficiently accommodate the projected
growth of aviation within the next decade.
(11) To the extent that Congress determines that certain
segments of the aviation community are not required to pay
all of the costs of the government services which they require
and benefits which they receive, Congress should appropriate
the difference between such costs and any receipts received
from such segment.
(12) Prior to the imposition of any new charges or user
fees on segments of the industry, an independent review must
be performed to assess the funding needs and assumptions
for operations, capital spending, and airport infrastructure.
(13) An independent, thorough, and complete study and
assessment must be performed of the costs to the Administra-
tion and the costs driven by each segment of the aviation
system for safety and operational services, including the use
of the air traffic control system and the Nation’s airports.
(14) Because the Administration is a unique Federal entity
in that it is a participant in the daily operations of an industry,
and because the national air transportation system faces signifi-
cant problems without significant changes, the Administration
has been authorized to change the Federal procurement and
personnel systems to ensure that the Administration has the
ability to keep pace with new technology and is able to match
resources with the real personnel needs of the Administration.
(15) The existing budget system does not allow for long-
term planning or timely acquisition of technology by the
Administration.
H. R. 3539—17
(16) Without reforms in the areas of procurement, person-
nel, funding, and governance, the Administration will continue
to experience delays and cost overruns in its major moderniza-
tion programs and needed improvements in the performance
of the air traffic management system will not occur.
(17) All reforms should be designed to help the Administra-
tion become more responsive to the needs of its customers
and maintain the highest standards of safety.
SEC. 222. PURPOSES.
The purposes of this title are—
(1) to ensure that final action shall be taken on all notices
of proposed rulemaking of the Administration within 18 months
after the date of their publication;
(2) to permit the Administration, with Congressional
review, to establish a program to improve air traffic manage-
ment system performance and to establish appropriate levels
of cost accountability for air traffic management services pro-
vided by the Administration;
(3) to establish a more autonomous and accountable
Administration within the Department of Transportation; and
(4) to make the Administration a more efficient and effec-
tive organization, able to meet the needs of a dynamic, growing
industry, and to ensure the safety of the traveling public.
SEC. 223. REGULATION OF CIVILIAN AIR TRANSPORTATION AND
RELATED 
SERVICES 
BY 
THE 
FEDERAL 
AVIATION
ADMINISTRATION AND DEPARTMENT OF TRANSPOR-
TATION.
(a) IN GENERAL.—Section 106 is amended—
(1) by striking ‘‘The Administrator’’ in subsection (b) and
inserting ‘‘Except as provided in subsection (f) or in other
provisions of law, the Administrator’’; and
(2) in subsection (f)—
(A) by striking ‘‘(f) The Secretary’’ and inserting the
following:
‘‘(f) AUTHORITY OF THE SECRETARY AND THE ADMINISTRATOR.—
‘‘(1) AUTHORITY OF THE SECRETARY.—Except as provided
in paragraph (2), the Secretary’’;
(B) in subsection (f)(1), as so designated—
(i) by moving the remainder of the text 2 ems
to the right;
(ii) by striking ‘‘The Secretary may not’’ and insert-
ing ‘‘Neither the Secretary nor the Administrator may’’;
and
(iii) by striking ‘‘nor’’ and inserting ‘‘or’’; and
(C) by adding at the end the following:
‘‘(2) AUTHORITY
OF
THE
ADMINISTRATOR.—The Adminis-
trator—
‘‘(A) is the final authority for carrying out all functions,
powers, and duties of the Administration relating to—
‘‘(i) the appointment and employment of all officers
and employees of the Administration (other than Presi-
dential and political appointees);
‘‘(ii) the acquisition and maintenance of property
and equipment of the Administration;
‘‘(iii) except as otherwise provided in paragraph
(3), the promulgation of regulations, rules, orders,
H. R. 3539—18
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 Management System Performance Improve-
ment Act of 1996 (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 President or as a political appointee;
‘‘(C) may delegate, and authorize successive redelega-
tions of, to an officer or employee of the Administration
any function, power, or duty conferred upon the Adminis-
trator, unless such delegation is prohibited by law; and
‘‘(D) except as otherwise provided for in this title, and
notwithstanding any other provision of law, shall not be
required 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 matter 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 listed in sections 5312
through 5316 of title 5 (relating to the Executive Schedule);
‘‘(B) is a limited term appointee, limited emergency
appointee, or noncareer appointee in the Senior Executive
Service, as defined under paragraphs (5), (6), and (7),
respectively, of section 3132(a) of title 5; or
‘‘(C) is employed in a position in the executive branch
of the Government of a confidential or policy-determining
character under schedule C of subpart C of part 213 of
title 5 of the Code of Federal Regulations.’’.
(b) PRESERVATION OF EXISTING AUTHORITY.—Nothing in this
title or the amendments made by this title limits any authority
granted to the Administrator by statute or by delegation that was
in effect on the day before the date of the enactment of this
Act.
SEC. 224. REGULATIONS.
Section 106(f), as amended by section 223 of this Act, is further
amended—
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
‘‘(3) REGULATIONS.—
‘‘(A) IN GENERAL.—In the performance of the functions
of the Administrator and the Administration, the Adminis-
trator is authorized to issue, rescind, and revise such regu-
lations as are necessary to carry out those functions. The
issuance of such regulations shall be governed by the provi-
sions of chapter 5 of title 5. The Administrator shall act
upon all petitions for rulemaking no later than 6 months
after the date such petitions are filed by dismissing such
petitions, by informing the petitioner of an intention to
dismiss, or by issuing a notice of proposed rulemaking
H. R. 3539—19
or advanced notice of proposed rulemaking. The Adminis-
trator shall issue a final regulation, or take other final
action, not later than 16 months after the last day of
the public comment period for the regulations or, in the
case of an advanced notice of proposed rulemaking, if
issued, not later than 24 months after the date of publica-
tion in the Federal Register of notice of the proposed rule-
making.
‘‘(B) APPROVAL OF SECRETARY OF TRANSPORTATION.—
(i) 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 $100,000,000 or more (adjusted
annually for inflation beginning with the year following
the date of the enactment of the Air Traffic Management
System Performance Improvement Act of 1996) in any year,
or any regulation which is significant, unless the Secretary
of Transportation approves the issuance of the regulation
in advance. For purposes of this paragraph, a regulation
is significant if the Administrator, in consultation with
the Secretary (as appropriate), determines that the regula-
tion is likely to—
‘‘(I) have an annual effect on the economy of
$100,000,000 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 commu-
nities;
‘‘(II) create a serious inconsistency or otherwise
interfere with an action taken or planned by another
agency;
‘‘(III) materially alter the budgetary impact of
entitlements, grants, user fees, or loan programs or
the rights and obligations of recipients thereof; or
‘‘(IV) raise novel legal or policy issues arising out
of legal mandates.
‘‘(ii) In an emergency, the Administrator may issue
a regulation described in clause (i) without prior approval
by the Secretary, 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.
‘‘(iii) Any regulation that does not meet the criteria
of clause (i), and any regulation or other action that is
a routine or frequent action or a procedural action, may
be issued by the Administrator without review or approval
by the Secretary.
‘‘(iv) The Administrator shall submit a copy of any
regulation requiring approval by the Secretary under clause
(i) to the Secretary, who shall either approve it or return
it to the Administrator with comments within 45 days
after receiving it.
‘‘(C) PERIODIC
REVIEW.—(i) Beginning on the date
which is 3 years after the date of the enactment of the
Air Traffic Management System Performance Improvement
Act of 1996, the Administrator shall review any unusually
H. R. 3539—20
burdensome regulation issued by the Administrator after
such date of enactment beginning not later than 3 years
after the effective date of the regulation to determine if
the cost assumptions were accurate, the benefit of the
regulations, and the need to continue such regulations in
force in their present form.
‘‘(ii) The Administrator may identify for review under
the criteria set forth in clause (i) unusually burdensome
regulations that were issued before the date of the enact-
ment of the Air Traffic Management System Performance
Improvement Act of 1996 and that have been in force
for more than 3 years.
‘‘(iii) For purposes of this subparagraph, the term
‘unusually burdensome regulation’ means any regulation
that results in the annual expenditure by State, local,
and tribal governments in the aggregate, or by the private
sector, of $25,000,000 or more (adjusted annually for infla-
tion beginning with the year following the date of the
enactment of the Air Traffic Management System Perform-
ance Act of 1996) in any year.
‘‘(iv) The periodic review of regulations may be per-
formed by advisory committees and the Management
Advisory Council established under subsection (p).’’.
SEC. 225. PERSONNEL AND SERVICES.
Section 106 is amended by adding at the end the following:
‘‘(l) PERSONNEL AND SERVICES.—
‘‘(1) OFFICERS AND EMPLOYEES.—Except as provided in sec-
tion 40122(a) of this title and section 347 of Public Law 104–
50, the Administrator is authorized, in the performance of
the functions of the Administrator, to appoint, transfer, and
fix the compensation of such officers and employees, including
attorneys, as may be necessary to carry out the functions of
the Administrator and the Administration. In fixing compensa-
tion and benefits of officers and employees, the Administrator
shall not engage in any type of bargaining, except to the extent
provided for in section 40122(a), nor shall the Administrator
be bound by any requirement to establish such compensation
or benefits at particular levels.
‘‘(2) EXPERTS
AND
CONSULTANTS.—The Administrator is
authorized to obtain the services of experts and consultants
in accordance with section 3109 of title 5.
‘‘(3) TRANSPORTATION
AND
PER
DIEM
EXPENSES.—The
Administrator is authorized to pay transportation expenses,
and per diem in lieu of subsistence expenses, in accordance
with chapter 57 of title 5.
‘‘(4) USE
OF
PERSONNEL
FROM
OTHER
AGENCIES.—The
Administrator is authorized to utilize the services of personnel
of any other Federal agency (as such term is defined under
section 551(1) of title 5).
‘‘(5) VOLUNTARY SERVICES.—
‘‘(A) GENERAL RULE.—In exercising the authority to
accept gifts and voluntary services under section 326 of
this title, and without regard to section 1342 of title 31,
the Administrator may not accept voluntary and uncompen-
sated services if such services are used to displace Federal
H. R. 3539—21
employees employed on a full-time, part-time, or seasonal
basis.
‘‘(B) INCIDENTAL
EXPENSES.—The Administrator is
authorized to provide for incidental expenses, including
transportation, lodging, and subsistence, for volunteers who
provide voluntary services under this subsection.
‘‘(C) LIMITED
TREATMENT
AS
FEDERAL
EMPLOYEES.—
An individual who provides voluntary services under this
subsection shall not be considered a Federal employee for
any purpose other than for purposes of chapter 81 of title
5, relating to compensation for work injuries, and chapter
171 of title 28, relating to tort claims.’’.
SEC. 226. CONTRACTS.
Section 106(l), as added by section 225 of this Act, is further
amended by adding at the end the following:
‘‘(6) 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
(as such term is defined in section 551(1) of title 5) or any
instrumentality of the United States, any State, territory, or
possession, or political subdivision thereof, any other govern-
mental entity, or any person, firm, association, corporation,
or educational institution, on such terms and conditions as
the Administrator may consider appropriate.’’.
SEC. 227. FACILITIES.
Section 106, as amended by section 225 of this Act, is further
amended by adding at the end the following:
‘‘(m) COOPERATION BY ADMINISTRATOR.—With the consent of
appropriate officials, the Administrator may, with or without
reimbursement, use or accept the services, equipment, personnel,
and facilities of any other Federal agency (as such term is defined
in section 551(1) of title 5) and any other public or private entity.
The Administrator may also cooperate with appropriate officials
of other public and private agencies and instrumentalities concern-
ing the use of services, equipment, 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 Fed-
eral 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 equipment.’’.
SEC. 228. PROPERTY.
Section 106, as amended by section 227 of this Act, is further
amended by adding at the end the following:
‘‘(n) ACQUISITION.—
‘‘(1) IN GENERAL.—The Administrator is authorized—
‘‘(A) to acquire (by purchase, lease, condemnation, or
otherwise), 
construct, 
improve, 
repair, 
operate, 
and
maintain—
‘‘(i) air traffic control facilities and equipment;
‘‘(ii) research and testing sites and facilities; and
H. R. 3539—22
‘‘(iii) such other real and personal property (includ-
ing office space and patents), or any interest therein,
within and outside the continental United States as
the Administrator considers necessary;
‘‘(B) to lease to others such real and personal
property; and
‘‘(C) to provide by contract or otherwise for eating
facilities and other necessary facilities for the welfare of
employees of the Administration at the installations of
the Administration, and to acquire, operate, and maintain
equipment for these facilities.
‘‘(2) TITLE.—Title to any property or interest therein
acquired pursuant to this subsection shall be held by the
Government of the United States.’’.
SEC. 229. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.
Section 106, as amended by section 228 of this Act, is further
amended by adding at the end the following:
‘‘(o) TRANSFERS OF FUNDS.—The Administrator is authorized
to accept transfers of unobligated balances and unexpended bal-
ances of funds appropriated to other Federal agencies (as such
term is defined in section 551(1) of title 5) to carry out functions
transferred by law to the Administrator or functions transferred
pursuant to law to the Administrator on or after the date of the
enactment of the Air Traffic Management System Performance
Improvement Act of 1996.’’.
SEC. 230. MANAGEMENT ADVISORY COUNCIL.
Section 106, as amended by section 229 of this Act, is further
amended by adding at the end the following:
‘‘(p) MANAGEMENT ADVISORY COUNCIL.—
‘‘(1) ESTABLISHMENT.—Within 3 months after the date of
the enactment of the Air Traffic Management System Perform-
ance Improvement Act of 1996, the Administrator shall estab-
lish an advisory council which shall be known as the Federal
Aviation Management Advisory Council (in this subsection
referred to as the ‘Council’). With respect to Administration
management, policy, spending, funding, and regulatory matters
affecting the aviation industry, the Council may submit com-
ments, recommended modifications, and dissenting views to
the Administrator. The Administrator shall include in any
submission to Congress, the Secretary, or the general public,
and in any submission for publication in the Federal Register,
a description of the comments, recommended modifications,
and dissenting views received from the Council, together with
the reasons for any differences between the views of the Council
and the views or actions of the Administrator.
‘‘(2) MEMBERSHIP.—The Council shall consist of 15 mem-
bers, who shall consist of—
‘‘(A) a designee of the Secretary of Transportation;
‘‘(B) a designee of the Secretary of Defense; and
‘‘(C) 13 members representing aviation interests,
appointed by the President by and with the advice and
consent of the Senate.
‘‘(3) QUALIFICATIONS.—No member appointed under para-
graph (2)(C) may serve as an officer or employee of the United
States Government while serving as a member of the Council.
‘‘(4) FUNCTIONS.—
H. R. 3539—23
‘‘(A) IN GENERAL.—(i) The Council shall provide advice
and counsel to the Administrator on issues which affect
or are affected by the operations of the Administrator.
The Council shall function as an oversight resource for
management, policy, spending, and regulatory matters
under the jurisdiction of the Administration.
‘‘(ii) The Council shall review the rulemaking cost-
benefit analysis process and develop recommendations to
improve the analysis and ensure that the public interest
is fully protected.
‘‘(iii) The Council shall review the process through
which the Administration determines to use advisory circu-
lars and service bulletins.
‘‘(B) MEETINGS.—The Council shall meet on a regular
and periodic basis or at the call of the chairman or of
the Administrator.
‘‘(C) ACCESS TO DOCUMENTS AND STAFF.—The Adminis-
tration may give the Council appropriate access to relevant
documents and personnel of the Administration, and the
Administrator shall make available, consistent with the
authority to withhold commercial and other proprietary
information under section 552 of title 5 (commonly known
as the ‘Freedom of Information Act’), cost data associated
with the acquisition and operation of air traffic service
systems. Any member of the Council who receives commer-
cial or other proprietary data from the Administrator shall
be subject to the provisions of section 1905 of title 18,
pertaining to unauthorized disclosure of such information.
‘‘(5) FEDERAL ADVISORY COMMITTEE ACT NOT TO APPLY.—
The Federal Advisory Committee Act (5 U.S.C. App.) does not
apply to the Council or such aviation rulemaking committees
as the Administrator shall designate.
‘‘(6) ADMINISTRATIVE MATTERS.—
‘‘(A) TERMS OF MEMBERS.—(i) Except as provided in
subparagraph (B), members of the Council appointed by
the President under paragraph (2)(C) shall be appointed
for a term of 3 years.
‘‘(ii) Of the members first appointed by the President—
‘‘(I) 4 shall be appointed for terms of 1 year;
‘‘(II) 5 shall be appointed for terms of 2 years;
and
‘‘(III) 4 shall be appointed for terms of 3 years.
‘‘(iii) An individual chosen to fill a vacancy shall be
appointed for the unexpired term of the member replaced.
‘‘(iv) A member whose term expires shall continue to
serve until the date on which the member’s successor takes
office.
‘‘(B) CHAIRMAN; VICE
CHAIRMAN.—The Council shall
elect a chair and a vice chair from among the members
appointed under paragraph (2)(C), each of whom shall serve
for a term of 1 year. The vice chair shall perform the
duties of the chairman in the absence of the chairman.
‘‘(C) TRAVEL
AND
PER
DIEM.—Each member of the
Council shall be paid actual travel expenses, and per diem
in lieu of subsistence expenses when away from his or
her usual place of residence, in accordance with section
5703 of title 5.
H. R. 3539—24
‘‘(D) DETAIL
OF
PERSONNEL
FROM
THE
ADMINISTRA-
TION.—The Administrator shall make available to the
Council such staff, information, and administrative services
and assistance as may reasonably be required to enable
the Council to carry out its responsibilities under this
subsection.’’.
Subtitle B—Federal Aviation
Administration Streamlining Programs
SEC. 251. REVIEW OF ACQUISITION MANAGEMENT SYSTEM.
Not later than April 1, 1999, the Administrator shall employ
outside experts to provide an independent evaluation of the
effectiveness of the Administration’s acquisition management sys-
tem within 3 months after such date. The Administrator shall
transmit a copy of the evaluation to the Committee on Commerce,
Science, and Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of Representatives.
SEC. 252. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.
Chapter 401 is amended by adding at the end the following:
‘‘§ 40121. Air traffic control modernization reviews
‘‘(a) REQUIRED TERMINATIONS OF ACQUISITIONS.—The Adminis-
trator of the Federal Aviation Administration shall terminate any
acquisition program initiated after the date of the enactment of
the Air Traffic Management System Performance Improvement Act
of 1996 and funded under the Facilities and Equipment account
that—
‘‘(1) is more than 50 percent over the cost goal established
for the program;
‘‘(2) fails to achieve at least 50 percent of the performance
goals established for the program; or
‘‘(3) is more than 50 percent behind schedule as determined
in accordance with the schedule goal established for the
program.
‘‘(b) AUTHORIZED TERMINATION OF ACQUISITION PROGRAMS.—
The Administrator shall consider terminating, under the authority
of subsection (a), any substantial acquisition program that—
‘‘(1) is more than 10 percent over the cost goal established
for the program;
‘‘(2) fails to achieve at least 90 percent of the performance
goals established for the program; or
‘‘(3) is more than 10 percent behind schedule as determined
in accordance with the schedule goal established for the
program.
‘‘(c) EXCEPTIONS AND REPORT.—
‘‘(1) CONTINUANCE
OF
PROGRAM, ETC.—Notwithstanding
subsection (a), the Administrator may continue an acquisitions
program required to be terminated under subsection (a) if the
Administrator determines that termination would be inconsist-
ent with the development or operation of the national air
transportation system in a safe and efficient manner.
‘‘(2) DEPARTMENT OF DEFENSE.—The Department of Defense
shall have the same exemptions from acquisition laws as are
waived by the Administrator under section 348(b) of Public
H. R. 3539—25
Law 104–50 when engaged in joint actions to improve or replen-
ish the national air traffic control system. The Administration
may acquire real property, goods, and services through the
Department of Defense, or other appropriate agencies, but is
bound by the acquisition laws and regulations governing those
cases.
‘‘(3) REPORT.—If the Administrator makes a determination
under paragraph (1), the Administrator shall transmit a copy
of the determination, together with a statement of the basis
for the determination, to the Committees on Appropriations
of the Senate and the House of Representatives, the Committee
on Commerce, Science, and Transportation of the Senate, and
the Committee on Transportation and Infrastructure of the
House of Representatives.’’.
SEC. 
253. 
FEDERAL 
AVIATION 
ADMINISTRATION 
PERSONNEL
MANAGEMENT SYSTEM.
Chapter 401, as amended by section 252 of this Act, is further
amended by adding at the end the following:
‘‘§ 40122. Federal 
Aviation 
Administration 
personnel
management system
‘‘(a) IN GENERAL.—
‘‘(1) CONSULTATION AND NEGOTIATION.—In developing and
making changes to the personnel management system initially
implemented by the Administrator of the Federal Aviation
Administration on April 1, 1996, the Administrator shall nego-
tiate with the exclusive bargaining representatives of employees
of the Administration certified under section 7111 of title 5
and consult with other employees of the Administration.
‘‘(2) MEDIATION.—If the Administrator does not reach an
agreement under paragraph (1) with the exclusive bargaining
representatives, the services of the Federal Mediation and
Conciliation Service shall be used to attempt to reach such
agreement. If the services of the Federal Mediation and Concil-
iation Service do not lead to an agreement, the Administrator’s
proposed change to the personnel management system shall
not take effect until 60 days have elapsed after the Adminis-
trator has transmitted the proposed change, along with the
objections of the exclusive bargaining representatives to the
change, and the reasons for such objections, to Congress.
‘‘(3) 
COST
SAVINGS
AND
PRODUCTIVITY
GOALS.—The
Administration and the exclusive bargaining representatives
of the employees shall use every reasonable effort to find cost
savings and to increase productivity within each of the affected
bargaining units.
‘‘(4) ANNUAL
BUDGET
DISCUSSIONS.—The Administration
and the exclusive bargaining representatives of the employees
shall meet annually for the purpose of finding additional cost
savings within the Administration’s annual budget as it applies
to each of the affected bargaining units and throughout the
agency.
‘‘(b) EXPERT EVALUATION.—On the date that is 3 years after
the personnel management system is implemented, the Administra-
tion shall employ outside experts to provide an independent evalua-
tion of the effectiveness of the system within 3 months after such
date. For this purpose, the Administrator may utilize the services
H. R. 3539—26
of experts and consultants under section 3109 of title 5 without
regard to the limitation imposed by the last sentence of section
3109(b) of such title, and may contract on a sole source basis,
notwithstanding any other provision of law to the contrary.
‘‘(c) PAY RESTRICTION.—No officer or employee of the Adminis-
tration may receive an annual rate of basic pay in excess of the
annual rate of basic pay payable to the Administrator.
‘‘(d) ETHICS.—The Administration shall be subject to Executive
Order No. 12674 and regulations and opinions promulgated by
the Office of Government Ethics, including those set forth in section
2635 of title 5 of the Code of Federal Regulations.
‘‘(e) EMPLOYEE PROTECTIONS.—Until July 1, 1999, basic wages
(including locality pay) and operational differential pay provided
employees of the Administration shall not be involuntarily adversely
affected by reason of the enactment of this section, except for
unacceptable performance or by reason of a reduction in force
or reorganization or by agreement between the Administration and
the affected employees’ exclusive bargaining representative.
‘‘(f) LABOR-MANAGEMENT AGREEMENTS.—Except as otherwise
provided by this title, all labor-management agreements covering
employees of the Administration that are in effect on the effective
date of the Air Traffic Management System Performance Improve-
ment Act of 1996 shall remain in effect until their normal expiration
date, unless the Administrator and the exclusive bargaining rep-
resentative agree to the contrary.’’.
SEC. 254. CONFORMING AMENDMENT.
The table of sections for chapter 401 is amended by adding
at the end the following:
‘‘40121. Air traffic control modernization reviews.
‘‘40122. Federal Aviation Administration personnel management system.’’.
Subtitle C—System To Fund Certain
Federal Aviation Administration Functions
SEC. 271. FINDINGS.
Congress finds the following:
(1) The Administration is recognized throughout the world
as a leader in aviation safety.
(2) The Administration certifies aircraft, engines, propel-
lers, and other manufactured parts.
(3) The Administration certifies more than 650 training
schools for pilots and nonpilots, more than 4,858 repair stations,
and more than 193 maintenance schools.
(4) The Administration certifies pilot examiners, who are
then qualified to determine if a person has the skills necessary
to become a pilot.
(5) The Administration certifies more than 6,000 medical
examiners, each of whom is then qualified to medically certify
the qualifications of pilots and nonpilots.
(6) The Administration certifies more than 470 airports,
and provides a limited certification for another 205 airports.
Other airports in the United States are also reviewed by the
Administration.
(7) The Administration each year performs more than
355,000 inspections.
H. R. 3539—65
SEC. 906. USE OF DULLES AIRPORT ACCESS HIGHWAY.
The Metropolitan Washington Airports Act of 1986 (49 U.S.C.
App. 2451 et seq.) is further amended by adding at the end the
following:
‘‘SEC. 6013. USE OF DULLES AIRPORT ACCESS HIGHWAY.
‘‘(a) RESTRICTIONS.—Except as provided by subsection (b), the
Airports Authority shall continue in effect and enforce paragraphs
(1) and (2) of section 4.2 of the Metropolitan Washington Airports
Regulations, as in effect on February 1, 1995.
‘‘(b) ENFORCEMENT.—The district courts of the United States
shall have jurisdiction to compel the Airports Authority and its
officers and employees to comply with the requirements of this
section. An action may be brought on behalf of the United States
by the Attorney General or by any aggrieved party.’’.
SEC. 907. EFFECT OF JUDICIAL ORDER.
The Metropolitan Washington Airports Act of 1986 (49 U.S.C.
App. 2451 et seq.) is further amended by adding at the end the
following:
‘‘SEC. 6014. EFFECT OF JUDICIAL ORDER.
‘‘If any provision of the Metropolitan Washington Airports
Amendments Act of 1996 or the amendments made by such Act
(or the application of that provision to any person, circumstance,
or venue) is held invalid by a judicial order, on the day after
the date of the issuance of such order, and thereafter, the Secretary
of Transportation and the Metropolitan Washington Airports
Authority shall be subject to the limitations described in section
6007(i) of this Act.’’.
SEC. 908. AMENDMENT OF LEASE.
The Secretary of Transportation shall amend the lease entered
into with the Metropolitan Washington Airports Authority under
section 6005(a) of the Metropolitan Washington Airports Authority
Act of 1986 to secure the Airports Authority’s consent to the amend-
ments made to such Act by this title.
SEC. 909. SENSE OF THE SENATE.
It is the sense of the Senate that the Metropolitan Washington
Airports Authority—
(1) should not provide any reserved parking areas free
of charge to Members of Congress, other Government officials,
or diplomats at Washington National Airport or Washington
Dulles International Airport; and
(2) should establish a parking policy for such airports that
provides equal access to the public, and does not provide pref-
erential parking privileges to Members of Congress, other
Government officials, or diplomats.
H. R. 3539—66
TITLE X—EXTENSION OF AIRPORT AND
AIRWAY TRUST FUND EXPENDITURES
SEC. 1001. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND
EXPENDITURES.
(a) EXTENSION
OF EXPENDITURE AUTHORITY.—Paragraph (1)
of section 9502(d) of the Internal Revenue Code of 1986 is amended
by striking ‘‘October 1, 1996’’ and inserting ‘‘October 1, 1998’’.
(b) EXTENSION OF TRUST FUND PURPOSES.—Subparagraph (A)
of section 9502(d)(1) of such Code is amended by inserting before
the semicolon at the end ‘‘or the Federal Aviation Reauthorization
Act of 1996’’.
TITLE XI—FAA RESEARCH,
ENGINEERING, AND DEVELOPMENT
SEC. 1101. SHORT TITLE.
This title may be cited as the ‘‘FAA Research, Engineering,
and Development Management Reform Act of 1996’’.
SEC. 1102. AUTHORIZATION OF APPROPRIATIONS.
Section 48102(a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (1)(J);
(2) by striking the period at the end of paragraph (2)(J)
and inserting in lieu thereof ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) for fiscal year 1997—
‘‘(A) $13,660,000 for system development and infra-
structure projects and activities;
‘‘(B) $34,889,000 for capacity and air traffic manage-
ment technology projects and activities;
‘‘(C) $19,000,000 for communications, navigation, and
surveillance projects and activities;
‘‘(D) $13,000,000 for weather projects and activities;
‘‘(E) $5,200,000 for airport technology projects and
activities;
‘‘(F) $36,504,000 for aircraft safety technology projects
and activities;
‘‘(G) $57,055,000 for system security technology
projects and activities;
‘‘(H) $23,504,000 for human factors and aviation medi-
cine projects and activities;
‘‘(I) $3,600,000 for environment and energy projects
and activities; and
‘‘(J) $2,000,000 for innovative/cooperative research
projects and activities.’’.
SEC. 1103. RESEARCH PRIORITIES.
Section 48102(b) is amended—
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by striking ‘‘AVAILABILITY
FOR RESEARCH.—(1)’’ and
inserting in lieu thereof ‘‘RESEARCH
PRIORITIES.—(1) The
Administrator shall consider the advice and recommendations
of the research advisory committee established by section 44508
of this title in establishing priorities among major categories
H. R. 3539—67
of research and development activities carried out by the Fed-
eral Aviation Administration.
‘‘(2)’’.
SEC. 1104. RESEARCH ADVISORY COMMITTEE.
Section 44508(a)(1) is amended—
(1) by striking ‘‘and’’ at the end of subparagraph (B);
(2) by striking the period at the end of subparagraph (C)
and inserting in lieu thereof ‘‘; and’’; and
(3) by inserting after subparagraph (C) the following:
‘‘(D) annually review the allocation made by the Adminis-
trator of the amounts authorized by section 48102(a) of this
title among the major categories of research and development
activities carried out by the Administration and provide advice
and recommendations to the Administrator on whether such
allocation is appropriate to meet the needs and objectives identi-
fied under subparagraph (A).’’.
SEC. 1105. NATIONAL AVIATION RESEARCH PLAN.
Section 44501(c) is amended—
(1) in paragraph (2)(A) by striking ‘‘15-year’’ and inserting
in lieu thereof ‘‘5-year’’;
(2) by amending subparagraph (B) to read as follows:
‘‘(B) The plan shall—
‘‘(i) provide estimates by year of the schedule, cost, and
work force levels for each active and planned major research
and development project under sections 40119, 44504, 44505,
44507, 44509, 44511–44513, and 44912 of this title, including
activities carried out under cooperative agreements with other
Federal departments and agencies;
‘‘(ii) specify the goals and the priorities for allocation of
resources among the major categories of research and develop-
ment activities, including the rationale for the priorities identi-
fied;
‘‘(iii) identify the allocation of resources among long-term
research, near-term research, and development activities; and
‘‘(iv) highlight the research and development activities that
address specific recommendations of the research advisory
committee established under section 44508 of this title, and
document the recommendations of the committee that are not
accepted, specifying the reasons for nonacceptance.’’; and
(3) in paragraph (3) by inserting ‘‘, including a description
of the dissemination to the private sector of research results
and a description of any new technologies developed’’ after
‘‘during the prior fiscal year’’.
TITLE XII—MISCELLANEOUS
PROVISIONS
SEC. 1201. PURCHASE OF HOUSING UNITS.
Section 40110 is amended—
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
‘‘(b) PURCHASE OF HOUSING UNITS.—
‘‘(1) AUTHORITY.—In carrying out this part, the Adminis-
trator may purchase a housing unit (including a condominium