H. R. 2115—105
SEC. 819. REPORT ON CERTAIN MARKET DEVELOPMENTS AND
GOVERNMENT POLICIES.
Within 6 months after the date of enactment of this Act, the
Department of Commerce, in consultation with the Department
of Transportation and other appropriate Federal agencies, shall
submit to the Senate Committee on Commerce, Science, and
Transportation, the House of Representatives Committee on
Science, and the House of Representatives Committee on Transpor-
tation and Infrastructure a report about market developments and
government policies influencing the competitiveness of the United
States jet transport aircraft industry that—
(1) describes the structural characteristics of the United
States and the European Union jet transport industries, and
the markets for these industries;
(2) examines the global market factors affecting the jet
transport industries in the United States and the European
Union, such as passenger and freight airline purchasing pat-
terns, the rise of low-cost carriers and point-to-point service,
the evolution of new market niches, and direct and indirect
operating cost trends;
(3) reviews government regulations in the United States
and the European Union that have altered the competitive
landscape for jet transport aircraft, such as airline deregulation,
certification and safety regulations, noise and emissions regula-
tions, 
government 
research 
and 
development 
programs,
advances in air traffic control and other infrastructure issues,
corporate and air travel tax issues, and industry consolidation
strategies;
(4) analyzes how changes in the global market and govern-
ment regulations have affected the competitive position of the
United States aerospace and aviation industry vis-a-vis the
European Union aerospace and aviation industry; and
(5) describes any other significant developments that affect
the market for jet transport aircraft.
SEC. 820. INTERNATIONAL AIR TRANSPORTATION.
It is the sense of Congress that, in an effort to modernize
its regulations, the Department of Transportation should formally
define ‘‘Fifth Freedom’’ and ‘‘Seventh Freedom’’ consistently for
both scheduled and charter passenger and cargo traffic.
SEC. 
821. 
REIMBURSEMENT 
OF 
AIR 
CARRIERS 
FOR 
CERTAIN
SCREENING AND RELATED ACTIVITIES.
The Secretary of Homeland Security, subject to the availability
of funds (other than amounts in the Aviation Trust Fund) provided
for this purpose, shall reimburse air carriers and airports for—
(1) the screening of catering supplies; and
(2) checking documents at security checkpoints.
SEC. 822. CHARTER AIRLINES.
(a) IN GENERAL.—Section 41104(b)(1) is amended—
(1) by striking ‘‘paragraph (3)’’ and inserting ‘‘paragraphs
(3) and (4)’’;
(2) by inserting a comma after ‘‘regularly scheduled charter
air transportation’’; and
(3) by striking ‘‘flight unless such air transportation’’ and
all that follows through the period at the end and inserting
the following: ‘‘flight, to or from an airport that—
H. R. 2115—106
‘‘(A) does not have an airport operating certificate
issued under part 139 of title 14, Code of Federal Regula-
tions (or any subsequent similar regulation); or
‘‘(B) has an airport operating certificate issued under
part 139 of title 14, Code of Federal Regulations (or any
subsequent similar regulation) if the airport—
‘‘(i) is a reliever airport (as defined in section
47102) and is designated as such in the national plan
of integrated airports maintained under section 47103;
and
‘‘(ii) is located within 20 nautical miles (22 statute
miles) of 3 or more airports that each annually account
for at least 1 percent of the total United States pas-
senger enplanements and at least 2 of which are oper-
ated by the sponsor of the reliever airport.’’.
(b) WAIVERS.—Section 41104(b) is amended by adding at the
end the following:
‘‘(4) WAIVERS.—The Secretary may waive the application
of paragraph (1)(B) in cases in which the Secretary determines
that the public interest so requires.’’.
SEC. 823. GENERAL AVIATION FLIGHTS AT RONALD REAGAN WASH-
INGTON NATIONAL AIRPORT.
(a) SECURITY PLAN.—The Secretary of Homeland Security shall
develop and implement a security plan to permit general aviation
aircraft to land and take off at Ronald Reagan Washington National
Airport.
(b) LANDINGS AND TAKEOFFS.—The Administrator of the Fed-
eral Aviation Administration shall allow general aviation aircraft
that comply with the requirements of the security plan to land
and take off at the Airport except during any period that the
President suspends the plan developed under subsection (a) due
to national security concerns.
(c) REPORT.—If the President suspends the security plan devel-
oped under subsection (a), the President shall submit to the Senate
Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Transportation and Infra-
structure a report on the reasons for the suspension not later
than 30 days following the first day of the suspension. The report
may be submitted in classified form.
SEC. 824. REVIEW OF AIR CARRIER COMPENSATION.
Not later than 6 months after the date of enactment of this
Act, the Comptroller General shall submit to Congress a report
on the criteria and procedures used by the Secretary of Transpor-
tation under the Air Transportation Safety and System Stabilization
Act (Public Law 107–42) to compensate air carriers after the ter-
rorist attack of September 11, 2001, with a particular focus on
whether it is appropriate—
(1) to compensate air carriers for the decrease in value
of their aircraft after September 11, 2001; and
(2) to ensure that comparable air carriers receive com-
parable percentages of the maximum compensation payable
under section 103(b)(2) of such Act (49 U.S.C. 40101 note).
SEC. 825. NOISE CONTROL PLAN FOR CERTAIN AIRPORTS.
(a) IN GENERAL.—Notwithstanding chapter 475 of title 49,
United States Code, or any other provision of law or regulation,
H. R. 2115—107
a sponsor of a commercial service airport that does not own the
airport land and is a party to a long-term lease agreement with
a Federal agency (other than the Department of Defense or the
Department of Transportation) may impose restrictions on, or pro-
hibit, the operation of Stage 2 aircraft weighing less than 75,000
pounds, in order to help meet the noise control plan contained
within the lease agreement. A use restriction imposed pursuant
to this section must contain reasonable exemptions for public health
and safety.
(b) PUBLIC NOTICE AND COMMENT.—Prior to imposing restric-
tions on, or prohibiting, the operation of Stage 2 aircraft weighing
less than 75,000 pounds, the airport sponsor must provide reason-
able notice and the opportunity to comment on the proposed airport
use restriction limited to no more than 90 days.
(c) DEFINITIONS.—In this section, the terms ‘‘Stage 2 aircraft’’
and ‘‘Stage 3 aircraft’’ have the same meaning as those terms
have in chapter 475 of title 49, United States Code.
SEC. 826. GAO REPORT ON AIRLINES’ ACTIONS TO IMPROVE FINANCES
AND ON EXECUTIVE COMPENSATION.
(a) FINDING.—Congress finds that the United States Govern-
ment has by law provided substantial financial assistance to United
States commercial airlines in the form of war risk insurance and
reinsurance and other economic benefits and has imposed substan-
tial economic and regulatory burdens on those airlines. In order
to determine the economic viability of the domestic commercial
airline industry and to evaluate the need for additional measures
or the modification of existing laws, Congress needs more frequent
information and independently verified information about the finan-
cial condition of these airlines.
(b) GAO REPORT.—Not later than one year after the date of
enactment of this Act, the Comptroller General shall prepare a
report for Congress analyzing the financial condition of the United
States airline industry in its efforts to reduce the costs, improve
the earnings and profits and balances of each individual air carrier.
The report shall recommend steps that the industry should take
to become financially self-sufficient.
(c) GAO AUTHORITY.—In order to compile the report required
by subsection (b), the Comptroller General, or any of the Comp-
troller General’s duly authorized representatives, shall have access
for the purpose of audit and examination to any books, accounts,
documents, papers, and records of such air carriers that relate
to the information required to compile the report. The Comptroller
General shall submit with the report a certification as to whether
the Comptroller General has had access to sufficient information
to make informed judgments on the matters covered by the report.
(d) REPORTS
TO CONGRESS.—The Comptroller General shall
transmit the report required by subsection (b) to the Senate Com-
mittee on Commerce, Science, and Transportation and the House
of Representatives Committee on Transportation and Infrastruc-
ture.
SEC. 827. PRIVATE AIR CARRIAGE IN ALASKA.
(a) IN GENERAL.—Due to the demands of conducting business
within and from the State of Alaska, the Secretary of Transportation
shall permit, under the operating rules of part 91 of title 14 of
the Code of Federal Regulations where common carriage is not
involved, a company, located in the State of Alaska, to organize
H. R. 2115—108
a subsidiary where the only enterprise of the subsidiary is to
provide air carriage of officials, employees, guests, and property
of the company, or its affiliate, when the carriage—
(1) originates or terminates in the State of Alaska;
(2) is by an aircraft with no more than 20 seats;
(3) is within the scope of, and incidental to, the business
of the company or its affiliate; and
(4) no charge, assessment, or fee is made for the carriage
in excess of the cost of owning, operating, and maintaining
the airplane.
(b) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this
subsection shall be construed as prohibiting a company from making
intermediate stops in providing air carriage under this section.
SEC. 828. REPORT ON WAIVERS OF PREFERENCE FOR BUYING GOODS
PRODUCED IN THE UNITED STATES.
Not later than 90 days after the date of the enactment of
this Act, the Secretary of Transportation shall submit to Congress
a report on the waiver contained in section 50101(b) of title 49,
United States Code (relating to buying goods produced in the United
States). The report shall, at a minimum, include—
(1) a list of all waivers granted pursuant to that section
during the 2-year period ending on the date of enactment
of that section; and
(2) for each such waiver—
(A) the specific authority under such section 50101(b)
for granting the waiver; and
(B) the rationale for granting the waiver.
SEC. 829. NAVIGATION FEES.
(a) IN GENERAL.—Section 4(b) of the Rivers and Harbors Appro-
priation Act of July 5, 1884 (33 U.S.C. 5(b); 116 Stat. 2133), is
amended—
(1) by striking ‘‘or’’ at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2)
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(3) property taxes on vessels or watercraft, other than
vessels or watercraft that are primarily engaged in foreign
commerce if those taxes are permissible under the United
States Constitution.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
is effective on and after November 25, 2002.
TITLE IX—EXTENSION OF AIRPORT AND
AIRWAY TRUST FUND EXPENDITURE
AUTHORITY
SEC. 901. EXTENSION OF EXPENDITURE AUTHORITY.
(a) IN GENERAL.—Paragraph (1) of section 9502(d) of the
Internal Revenue Code of 1986 (relating to expenditures from Air-
port and Airway Trust Fund) is amended—
(1) by striking ‘‘October 1, 2003’’ and inserting ‘‘October
1, 2007’’, and
H. R. 2115—109
(2) by inserting before the semicolon at the end of subpara-
graph (A) the following: ‘‘or the Vision 100—Century of Aviation
Reauthorization Act’’.
(b) CONFORMING AMENDMENT.—Paragraph (2) of section 9502(f)
of the Internal Revenue Code of 1986 is amended by striking
‘‘October 1, 2003’’ and inserting ‘‘October 1, 2007’’.
SEC. 902. TECHNICAL CORRECTION TO FLIGHT SEGMENT.
(a) SPECIAL RULE.—Section 4261(e)(4) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subparagraph:
‘‘(D) SPECIAL RULE FOR AMOUNTS PAID FOR DOMESTIC
SEGMENTS BEGINNING AFTER 2002.—If an amount is paid
during a calendar year for a domestic segment beginning
in a later calendar year, then the rate of tax under sub-
section (b) on such amount shall be the rate in effect
for the calendar year in which such amount is paid.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect as if included in the provisions of the Taxpayer
Relief Act of 1997 to which they relate.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.