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basis, notwithstanding any other provision of law to the
contrary.
‘‘(c) PAY RESTRICTION.—No officer or employee of the
Administration 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 Fed-
eral Regulations.
‘‘(e) EMPLOYEE PROTECTIONS.—Until July 1, 1999,
basic wages (including locality pay) and operational dif-
ferential pay provided employees of the Administration
shall not be involuntarily adversely affected by reason of
the enactment of this section, except for unacceptable per-
formance or by reason of a reduction in force or reorganiza-
tion 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 Manage-
ment System Performance Improvement Act of 1996 shall
remain in effect until their normal expiration date, unless
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the Administrator and the exclusive bargaining representa-
tive agree to the contrary.’’.
SEC. 654. CONFORMING AMENDMENT.
The chapter analysis for chapter 401, as amended by
section 403(b) of this Act, is amended by striking the item
relating to section 40120 and inserting the following new
items:
‘‘40121. Air traffic control modernization reviews.
‘‘40122. Federal Aviation Administration personnel management system.
‘‘40123. Relationship to other laws.’’.
Subtitle C—System To Fund Cer-
tain Federal Aviation Adminis-
tration Functions
SEC. 671. FINDINGS.
The Congress finds the following:
(1) The Administration is recognized throughout
the world as a leader in aviation safety.
(2) The Administration certifies aircraft, en-
gines, propellers, 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 mainte-
nance schools.
(4) The Administration certifies pilot examiners,
who are then qualified to determine if a person has
the skills necessary to become a pilot.
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(5) The Administration certifies more than 6,000
medical examiners, each of whom is then qualified to
medically certify the qualifications of pilots and non-
pilots.
(6) The Administration certifies more than 470
airports, and provides a limited certification for an-
other 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.
(8) The Administration issues more than
655,000 pilot’s licenses and more than 560,000 non-
pilot’s licenses (including mechanics).
(9) The Administration’s certification means
that the product meets worldwide recognized stand-
ards of safety and reliability.
(10) The Administration’s certification means
aviation-related equipment and services meet world-
wide recognized standards.
(11) The Administration’s certification is recog-
nized by governments and businesses throughout the
world and as such may be a valuable element for any
company desiring to sell aviation-related products
throughout the world.
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(12) The Administration’s certification may con-
stitute a valuable license, franchise, privilege or bene-
fits for the holders.
(13) The Administration also is a major pur-
chaser of computers, radars, and other systems needed
to run the air traffic control system. The Administra-
tion’s design, acceptance, commissioning, or certifi-
cation of such equipment enables the private sector to
market those products around the world, and as such
confers a benefit on the manufacturer.
(14) The Administration provides extensive serv-
ices to public use aircraft.
SEC. 672. PURPOSES.
The purposes of this title are—
(1) to provide a financial structure for the Ad-
ministration so that it will be able to support the fu-
ture growth in the national aviation and airport sys-
tem;
(2) to review existing and alternative funding
options, including incentive-based fees for services,
and establish a program to improve air traffic man-
agement system performance and to establish appro-
priate levels of cost accountability for air traffic man-
agement services provided by the Administration;
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(3) to ensure that any funding will be dedicated
solely for the use of the Administration;
(4) to authorize the Administration to recover
the costs of its services from those who benefit from,
but do not contribute to, the national aviation system
and the services provided by the Administration;
(5) to consider a fee system based on the cost or
value of the services provided and other funding alter-
natives;
(6) to develop funding options for the Congress
in order to provide for the long-term efficient and
cost-effective support of the Administration and the
aviation system; and
(7) to achieve a more efficient and effective Ad-
ministration for the benefit of the aviation transpor-
tation industry.
SEC. 673. USER FEES FOR VARIOUS FEDERAL AVIATION AD-
MINISTRATION SERVICES.
(a) IN GENERAL.—Chapter 453 is amended by strik-
ing section 45301 and inserting the following new section:
‘‘§ 45301. General provisions
‘‘(a) SCHEDULE OF FEES.—The Administrator shall
establish a schedule of new fees, and a collection process for
such fees, for the following services provided by the Admin-
istration:
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‘‘(1) Air traffic control and related services pro-
vided to aircraft other than military and civilian air-
craft of the United States government or of a foreign
government that neither take off from, nor land in,
the United States.
‘‘(2) Services (other than air traffic control serv-
ices) provided to a foreign government.
‘‘(b) LIMITATIONS.—
‘‘(1) AUTHORIZATION
AND
IMPACT
CONSIDER-
ATIONS.—In establishing fees under subsection (a), the
Administrator—
‘‘(A) is authorized to recover in fiscal year
1997 $100,000,000; and
‘‘(B) shall ensure that each of the fees re-
quired by subsection (a) is directly related to the
Administration’s costs of providing the service
rendered. Services for which costs may be recov-
ered include the costs of air traffic control, navi-
gation, weather services, training and emergency
services which are available to facilitate safe
transportation over the United States, and other
services provided by the Administrator or by
programs financed by the Administrator to
flights that neither take off nor land in the Unit-
ed States.
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‘‘(2) PUBLICATION; COMMENT.—The Adminis-
trator shall publish in the Federal Register an initial
fee schedule and associated collection process as an in-
terim final rule, pursuant to which public comment
will be sought and a final rule issued.
‘‘(c) USE OF EXPERTS AND CONSULTANTS.—In devel-
oping the system, the Administrator may consult with such
nongovernmental experts as the Administrator may employ
and the Administrator may utilize the services 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. Notwithstanding any other provision of law to the
contrary, the Administrator may retain such experts under
a contract awarded on a basis other than a competitive
basis and without regard to any such provisions requiring
competitive bidding or precluding sole source contract au-
thority.’’.
(b) CONFORMING AMENDMENT.—The chapter analysis
for chapter 453 is amended by striking the item relating
to section 45301 and inserting the following new item:
‘‘45301. General provisions.’’.
(c) REPEAL.—
(1) IN GENERAL.—Section 70118 is repealed.
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(2) CONFORMING
AMENDMENT.—The chapter
analysis for chapter 701 is amended by striking the
item relating to section 70118.
SEC. 674. INDEPENDENT ASSESSMENT AND TASK FORCE TO
REVIEW EXISTING AND INNOVATIVE FUND-
ING MECHANISMS.
(a) INDEPENDENT ASSESSMENT.—
(1) INITIATION.—As soon as all members of the
task force are appointed under subsection (b) of this
section, the Administrator shall contract with an en-
tity independent of the Administration and the De-
partment of Transportation to conduct a complete
independent assessment of the financial requirements
of the Administration through the year 2002.
(2) ASSESSMENT CRITERIA.—The Administrator
shall provide to the independent entity estimates of
the financial requirements of the Administration for
the period described in paragraph (1), using as a base
the fiscal year 1997 authorization levels established by
the Congress. The independent assessment shall be
based on an objective analysis of agency funding
needs.
(3) CERTAIN FACTORS TO BE TAKEN INTO AC-
COUNT.—The independent assessment shall take into
account all relevant factors, including—
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(A) anticipated air traffic forecasts;
(B) other workload measures;
(C) estimated productivity gains, if any,
which contribute to budgetary requirements;
(D) the need for programs; and
(E) the need to provide for continued im-
provements in all facets of aviation safety, along
with operational improvements in air traffic
control.
(4) COST ALLOCATION.—The independent assess-
ment shall also assess the costs to the Administration
occasioned by the provision of services to each segment
of the aviation system.
(5) DEADLINE.—The independent assessment
shall be completed no later than 90 days after the
contract is awarded, and shall be submitted to the
task force, the Secretary, the Secretary of the Treas-
ury, the Committee on Commerce, Science, and
Transportation and the Committee on Finance of the
Senate, and the Committee on Transportation and
Infrastructure and the Committee on Ways and
Means of the House of Representatives.
(b) TASK FORCE.—
(1) ESTABLISHMENT.—Not later than 30 days
after the date of enactment of this Act, the Secretary,
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in consultation with the Secretary of the Treasury,
shall establish an 11-member task force, independent
of the Administration and the Department of Trans-
portation.
(2) MEMBERSHIP.—The members of the task
force shall be selected from among individuals who
have expertise in the aviation industry and who are
able, collectively, to represent a balanced view of the
issues important to general aviation, major air car-
riers, air cargo carriers, regional air carriers, busi-
ness aviation, airports, aircraft manufacturers, the fi-
nancial community, aviation industry workers, and
airline passengers. At least one member of the task
force shall have detailed knowledge of the congres-
sional budgetary process.
(3) HEARINGS AND CONSULTATION.—
(A) HEARINGS.—The task force shall take
such testimony and solicit and receive such com-
ments from the public and other interested par-
ties as it considers appropriate, shall conduct 2
public hearings after affording adequate notice to
the public thereof, and is authorized to conduct
such additional hearings as may be necessary.
(B) CONSULTATION.—The task force shall
consult on a regular and frequent basis with the
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Secretary of Transportation, the Secretary of the
Treasury, the Committee on Commerce, Science,
and Transportation and the Committee on Fi-
nance of the Senate, and the Committee on
Transportation and Infrastructure and the Com-
mittee on Ways and Means of the House of Rep-
resentatives.
(C) FACA NOT TO APPLY.—The task force
shall not be considered an advisory committee for
purposes of the Federal Advisory Committee Act
(5 U.S.C. App.).
(4) DUTIES.—
(A) REPORT TO SECRETARY.—
(i) IN GENERAL.—The task force shall
submit a report setting forth a comprehen-
sive analysis of the Administration’s budg-
etary requirements through fiscal year 2002,
based upon the independent assessment
under subsection (a), that analyzes alter-
native financing and funding means for
meeting the needs of the aviation system
through the year 2002. The task force shall
submit a preliminary report of that analy-
sis to the Secretary not later than 6 months
after the independent assessment is com-
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pleted under subsection (a). The Secretary
shall provide comments on the preliminary
report to the task force within 30 days after
receiving it. The task force shall issue a
final report of such comprehensive analysis
within 30 days after receiving the Sec-
retary’s comments on its preliminary re-
port.
(ii) CONTENTS.—The report submitted
by the task force under clause (i)—
(I) shall consider the independent
assessment under subsection (a);
(II) shall consider estimated cost
savings, if any, resulting from the pro-
curement and personnel reforms in-
cluded in this Act or in sections 347
and 348 of Public Law 104–50, and
additional financial initiatives;
(III) shall include specific rec-
ommendations to the Congress on how
the Administration can reduce costs,
raise additional revenue for the sup-
port of agency operations, and acceler-
ate modernization efforts; and