IB
104TH CONGRESS
2D SESSION
H. R. 2276
[Report No. 104–475, Part I]
To establish the Federal Aviation Administration as an independent
establishment in the executive branch, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 7, 1995
Mr. DUNCAN (for himself, Mr. SHUSTER, Mr. OBERSTAR, Mr. LIGHTFOOT,
Mr. CLINGER, Mr. WELLER, Mr. COBLE, Mr. RAHALL, Mr. LIPINSKI,
Mr. EWING, Mr. COSTELLO, Mr. WISE, Mr. HUTCHINSON, Mr. EHLERS,
Mr. BACHUS, Mrs. SEASTRAND, Mr. TATE, Ms. DANNER, Mrs. KELLY,
Mr. CLYBURN, and Mr. LATHAM) introduced the following bill; which was
referred to the Committee on Transportation and Infrastructure, and in
addition to the Committees on Government Reform and Oversight, and
the Budget, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
MARCH 7, 1996
Reported from the Committee on Transportation and Infrastructure with an
amendment
[Strike out all after the enacting clause and insert the part printed in italic]
MARCH 7, 1996
Referrals to the Committees on Government Reform and Oversight and the
Budget extended for a period ending March 11, 1996
MARCH 11, 1996
Additional sponsors: Miss COLLINS of Michigan, Mr. LAHOOD, Mr. HASTERT,
Mr. SKEEN, Mr. PETE GEREN of Texas, Mr. KLECZKA, Mr. HANCOCK,
Mr. WAMP, Mr. HAYES, Mr. PETRI, Mr. ZELIFF, Mr. MARTINI, Mr.
YOUNG of Alaska, Mr. POSHARD, Mr. QUINN, Mrs. FOWLER, Mr. KIM,
Mr. EMERSON, Ms. BROWN of Florida, Mr. BOEHLERT, Mr. TUCKER,
Mr. FRANKS of New Jersey, Mr. BREWSTER, Mr. BLUTE, Mr. QUILLEN,
Mr. TRAFICANT, Mr. DIAZ-BALART, Mr. DOYLE, Mr. MASCARA, Ms.
ROS-LEHTINEN, Mr. CANADY of Florida, Mr. STARK, Mr. SISISKY, Mr.
PICKETT, Mr. LATOURETTE, Mr. MCCOLLUM, Mr. SCARBOROUGH, Mr.
ACKERMAN, Mr. CALVERT, Mr. STUPAK, Mr. CUNNINGHAM, Mr. FILNER,
and Mr. BURTON of Indiana
MARCH 11, 1996
Committees on Government Reform and Oversight and the Budget discharged;
committed to the Committee of the Whole House on the State of the
Union, and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on September 7, 1995]
A BILL
To establish the Federal Aviation Administration as an inde-
pendent establishment in the executive branch, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Federal Aviation Ad-
ministration Revitalization Act of 1995’’.
SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or
other provision of title 49, United States Code.
SEC. 3. ESTABLISHMENT OF FEDERAL AVIATION ADMINIS-
TRATION.
Subtitle II is amended by adding at the end the follow-
ing:
‘‘CHAPTER 13—FEDERAL AVIATION
ADMINISTRATION
‘‘SUBCHAPTER I—GENERAL PROVISIONS
‘‘1301. Definitions.
‘‘SUBCHAPTER II—ORGANIZATION AND ADMINISTRATIVE
‘‘1311. Establishment.
‘‘1312. Federal Aviation Board.
‘‘1313. Officers.
‘‘1314. Personnel management program.
‘‘1315. Management Advisory Committee.
‘‘1316. Authority to carry out certain transferred functions, duties, and powers.
‘‘SUBCHAPTER III—AUTHORITY
‘‘1331. Functions.
‘‘1332. Regulations.
‘‘1333. Finality of decisions; appeals.
‘‘1334. Procurement program.
‘‘1335. Judicial review of actions in carrying out certain transferred duties and
powers.
‘‘SUBCHAPTER I—GENERAL PROVISIONS
‘‘§ 1301. Definitions
‘‘In this chapter, the following definitions apply:
‘‘(1) ADMINISTRATION.—The term ‘Administra-
tion’ means the Federal Aviation Administration es-
tablished by section 1311.
‘‘(2) AERONAUTICS, AIR
COMMERCE, AND
AIR
NAVIGATION FACILITY.—The terms ‘aeronautics’, ‘air
commerce’, and ‘air navigation facility’ have the
same meanings given those terms in section 40102(a)
of this title.
‘‘(3) AIRPORT AND AIRWAY TRUST FUND.—The
term ‘Airport and Airway Trust Fund’ means the
Airport and Airway Trust Fund established by sec-
tion 9502 of the Internal Revenue Code of 1986.
‘‘(4) BOARD.—The term ‘Board’ means the Fed-
eral Aviation Board established by section 1312.
‘‘(5) CHIEF
EXECUTIVE
OFFICER.—The term
‘Chief Executive Officer’ means the Chief Executive
Officer of the Federal Aviation Administration.
‘‘SUBCHAPTER II—ORGANIZATION AND
ADMINISTRATIVE
‘‘§ 1311. Establishment
‘‘There is established in the executive branch as an
independent establishment the Federal Aviation Adminis-
tration. The Administration shall succeed the Federal Avia-
tion Administration of the Department of Transportation
in existence on the day before the effective date of this sec-
tion.
‘‘§ 1312. Federal Aviation Board
‘‘(a) IN GENERAL.—There is established a Federal
Aviation Board which shall serve as the head of the Admin-
istration.
‘‘(b) FUNCTIONS.—
‘‘(1) IN GENERAL.—The Board shall be respon-
sible for the major policy functions of the Administra-
tion, including the following:
‘‘(3) NOT SUBJECT TO ENTITIES CREATED BY
EXECUTIVE
ORDER.—The Administration shall not
submit decisions for the approval of, and shall not be
bound by the decisions or recommendations of, any
committee, board, or other organization established by
Executive order.
‘‘(c) MEMBERSHIP.—
‘‘(1) VOTING
MEMBERS.—The Board shall be
composed of 3 voting members to be appointed by the
President, by and with the advice and consent of the
Senate. The initial members of the Board shall be ap-
pointed as soon as practicable after the date of the en-
actment of the Federal Aviation Administration Revi-
talization Act of 1995.
‘‘(2) NON-VOTING MEMBERS.—The Secretary of
Transportation (or the Secretary’s designee) and the
Secretary of Defense (or the Secretary’s designee) shall
serve as non-voting members of the Board.
‘‘(d) QUALIFICATIONS.—
‘‘(1) IN GENERAL.—Members appointed to the
Board under subsection (c)(1) shall represent the pub-
lic interest and shall be selected from individuals who
are knowledgeable in aviation. Members of the Board
may not—
‘‘(A) have a pecuniary interest in, or own
stock in or bonds of, an aeronautical enterprise;
‘‘(B) engage in another business, vocation,
or employment; and
‘‘(C) be a member of any organization a
substantial part of whose activities are for the
purpose of influencing aviation-related legisla-
tion.
‘‘(2) DEFINITION.—In this subsection, the term
‘influencing legislation’ has the meaning such term
has under section 4911(d) of the Internal Revenue
Code of 1986 (26 U.S.C. 4911(d)).
‘‘(e) TERMS.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
and (3), each member of the Board appointed under
subsection (c)(1) shall be appointed for a term of 7
years.
‘‘(2) TERMS OF INITIAL APPOINTEES.—As des-
ignated by the President at the time of appointment,
of the members first appointed under subsection
(c)(1)—
‘‘(A) 1 shall be appointed for a term of 3
years;
‘‘(B) 1 shall be appointed for a term of 5
years; and
‘‘(C) 1 shall be appointed for a term of 7
years.
‘‘(3) VACANCIES.—Any member appointed under
subsection (c)(1) to fill a vacancy occurring before the
expiration of the term for which the member’s prede-
cessor was appointed shall be appointed only for the
remainder of that term. A member may serve after the
expiration of that member’s term until a successor has
taken office.
‘‘(f) REMOVAL.—Members of the Board appointed
under subsection (c)(1) may be removed by the President
for inefficiency, neglect of duty, or malfeasance in office.
‘‘(g) CHAIRPERSON.—The Chairperson of the Board
shall be appointed by the President, by and with the advice
and consent of the Senate. At the time of such appointment,
the President shall establish the term of the Chairperson.
Such term may not exceed the term of the Chairperson’s
appointment to the Board.
‘‘(h) QUORUM.—Two members of the Board appointed
under subsection (c)(1) shall constitute a quorum for carry-
ing out the duties and powers of the Board.
‘‘(i) BASIC PAY.—
‘‘(1) CHAIRPERSON.—The Chairperson of the
Board shall be paid at a rate equal to the rate of
basic pay payable for level II of the Executive Sched-
ule.
‘‘(2) OTHER MEMBERS.—The other voting mem-
bers of the Board shall be paid at a rate equal to the
rate of basic pay payable for level III of the Executive
Schedule.
‘‘§ 1313. Officers
‘‘(a) CHIEF EXECUTIVE OFFICERS.—
‘‘(1) APPOINTMENT.—The Board shall appoint a
Chief Executive Officer.
‘‘(2) DUTIES.—The Board shall delegate to the
Chief Executive Officer the responsibility for manag-
ing the day-to-day operation of the Administration,
including (except as provided in section 1312(b)) the
hiring and firing of employees, acquisition of facili-
ties and equipment, issuance of rules, airworthiness
directives, and advisory circulars, preparation of the
annual budget submission, the awarding of grants,
and such other functions as the Board considers ap-
propriate.
‘‘(3) REMOVAL.—The Chief Executive Officer
shall serve at the pleasure of the Board; except that
the Board shall make every effort to ensure stability
and continuity in the leadership of the Administra-
tion.
‘‘(4) BASIC PAY.—Subject to section 1314(f), the
Chief Executive Officer shall be paid at a rate to be
determined by the Board.
‘‘(b) OTHER OFFICERS.—Subject to the approval of the
Board, the Chief Executive Officer shall appoint other sen-
ior officers who shall each have such duties as the Chief
Executive Officer may prescribe.
‘‘(c) CHIEF COUNSEL.—Subject to the approval of the
Board, the Chief Executive Officer shall appoint a Chief
Counsel who shall be the chief legal officer for all legal mat-
ters arising from the activities of the Administration.
‘‘(d) INSPECTOR GENERAL.—There shall be in the Ad-
ministration an Inspector General who shall be appointed
in accordance with the Inspector General Act of 1978 (5
U.S.C. App.).
‘‘(e) AIRCRAFT NOISE OMBUDSMAN.—
‘‘(1) ESTABLISHMENT.—There shall be in the
Administration an Aircraft Noise Ombudsman who
shall be appointed by the Board.
‘‘(2) DUTIES AND RESPONSIBILITIES.—The Om-
budsman shall—
‘‘(A) serve as a liaison with the public on
issues regarding aircraft noise; and
‘‘(B) be consulted when the Administration
proposes changes in aircraft routes so as to min-
imize any increases in aircraft noise over popu-
lated areas.
‘‘§ 1314. Personnel management program
‘‘(a) EXEMPTION FROM CERTAIN PROVISIONS
OF
TITLE 5, UNITED STATES CODE.—
‘‘(1) IN GENERAL.—Except as otherwise provided
in this Act, the Administration shall be exempt from
parts II and III of title 5.
‘‘(2) EFFECTIVE DATE.—The exemption provided
by paragraph (1) shall not take effect until the expi-
ration of the 180-period described in subsection
(d)(2).
‘‘(b) DEVELOPMENT
OF PERSONNEL MANAGEMENT
SYSTEM.—
‘‘(1) IN
GENERAL.—Not later than 180 days
after the date of the enactment of the Federal Aviation
Administration Revitalization Act of 1995, the Board
shall develop a personnel management system for the
Administration.
‘‘(2) CONSULTATION AND NEGOTIATION.—In de-
veloping the personnel management system, the Board
shall negotiate with the exclusive bargaining rep-
resentatives of employees of the Administration cer-
tified under section 7111 of title 5 and other employ-
ees of the Administration and shall consult with non-
governmental experts in personnel management sys-
tems. The negotiation with the exclusive bargaining
representatives shall be completed on or before the
90th day after the date of enactment referred to in
paragraph (1).
‘‘(3) MEDIATION.—If the Board does not reach
an agreement under paragraph (2) with the exclusive
bargaining representatives on any provision of the
personnel management system, the services of the Fed-
eral Mediation and Conciliation Service shall be used
to attempt to reach such agreement. If the services of
the Federal Mediation and Conciliation Service do
not lead to an agreement, the Board shall include in
the plan to be submitted to Congress under subsection
(d) the objections of the exclusive bargaining rep-
resentatives and the reasons for the objections.
‘‘(4) CONTINUATION
OF
AGREEMENTS.—Collec-
tive bargaining agreements and labor management re-
lations under chapter 71 of title 5 shall remain in ef-
fect for the Administration until amended or modified
under the personnel management system.
‘‘(5) GOALS.—The goal of the personnel manage-
ment system to be developed by the Board under
paragraph (1) shall be to provide, consistent with the
requirements of this section, the Administration with
the ability—
‘‘(A) to hire and fire employees as in the
private sector;
‘‘(B) to promote and pay employees based
on merit;
‘‘(C) to provide market-based salaries (de-
signed to attract the best qualified employees)
within available resources;
‘‘(D) to provide pay increases and other in-
centives to staff facilities that are difficult to
staff;
‘‘(E) to move personnel to those facilities
where they are most needed; and
‘‘(F) to provide an opportunity for collective
bargaining and other consultation with employ-
ees concerning terms and conditions of employ-
ment.
‘‘(6) SAFEGUARDS.—The personnel management
system shall include safeguards to ensure that travel
expenses of employees of the Administration (includ-
ing meal and lodging expenses) are not excessive.
‘‘(c) EXPERTS EVALUATION.—The arrangements en-
tered into by the Board with the experts consulted by the
Board under subsection (b) shall provide for those experts
to evaluate the personnel management system developed by
the Board and submit to Congress the results of such evalua-
tion before the last day of the 180-day period referred to
in subsection (b)(1).
‘‘(d) NOTICE TO CONGRESS.—
‘‘(1) IN
GENERAL.—Upon development of the
personnel management system under subsection (b),
the Board shall submit to Congress a comprehensive
plan describing the personnel management system,
along with all existing or proposed rules or regula-
tions relevant to the system.
‘‘(2) IMPLEMENTATION.—The Board may begin
to implement the personnel management system only
after the expiration of the 180-day period that begins
on the date of submission of the plan to Congress
under paragraph (1).
‘‘(e) EMPLOYEE RIGHTS AND BENEFITS.—Nothing in
this section shall be construed as exempting the Administra-
tion and employees of the Administration from any of the
following provisions of title 5:
‘‘(1) Section 2302(b)(8) (relating to whistle-
blower protection) and related enforcement provisions.
‘‘(2) Sections 7311(3) and 7311(4) (relating to
limitations on the right to strike).
‘‘(3) Sections 2302(b)(1) and 7204 (relating to
antidiscrimination) and related enforcement provi-
sions and provisions of law referred to in section
2302(b)(1).
‘‘(4) Chapter 71 (relating to labor-management
relations).
‘‘(5) Chapter 73 (relating to suitability, security,
and conduct).
‘‘(6) Chapter 81 (relating to compensation for
work injuries).
‘‘(7) Chapter 83 (relating to retirement).
‘‘(8) Chapter 84 (relating to the Federal Em-
ployees’ Retirement System).
‘‘(9) Chapter 85 (relating to unemployment com-
pensation).
‘‘(10) Chapter 87 (relating to life insurance).
‘‘(11) Chapter 89 (relating to health insurance).
‘‘(f) PAY RESTRICTIONS.—
‘‘(1) MAXIMUM RATE OF PAY.—No officer (in-
cluding the Chief Executive Officer) or employee of
the Administration may receive annual pay in excess
of the annual rate of basic pay payable for level II
of the Executive Schedule unless the Board provides
written notification to Congress of such higher rate of
pay and 30 days (excluding Saturdays, Sundays, and
holidays, and any day on which neither House of
Congress is in session because of an adjournment sine
die, a recess of more than 3 days, or an adjournment
of more than 3 days) have elapsed since the date of
such notification.
‘‘(2) PERCENTAGE OF EMPLOYEES ABOVE LEVEL
ES–1
OF
SENIOR
EXECUTIVE
SERVICE.—Not more
than 0.35 percent of the officers (including members
of the Board and the Chief Executive Officer) and em-
ployees of the Administration may be paid at a rate
which equals or exceeds the rate payable for level ES–
1 of the Senior Executive Service.
‘‘(3) RAISES AND BONUSES.—No officer (includ-
ing the Chief Executive Officer) or employee of the
Administration who is paid at a rate which exceeds
the rate payable for level ES–1 of the Senior Execu-
tive Service may receive in a calendar year raises or
bonuses (excluding cost-of-living increases and in-
creases that are the results of a promotion) that total
more than 15 percent of the annual rate of pay of the
officer or employee on the day before the first day of
such calendar year.
‘‘(g) CONTRACTS BETWEEN FAA AND FORMER FAA
EMPLOYEES.—Before the Administration may enter into a
contract with an individual who has been employed by the
Administration at any time during the 2-year period pre-
ceding the expected date of entry into the contract or with
a corporation, partnership, or other entity in which such
a former employee is a partner, principal officer, or major-
ity stockholder or which is otherwise controlled or predomi-
nantly staffed by 1 or more of such former employees, the
Board must first approve of the entry into the contract as
being essential to the mission of the Administration.
‘‘§ 1315. Management Advisory Committee
‘‘(a) ESTABLISHMENT.—There is established an advi-
sory committee which shall be known as the Federal Avia-
tion Management Advisory Committee (hereinafter in this
section referred to as the ‘Management Advisory Commit-
tee’).
‘‘(b) MEMBERSHIP.—The Management Advisory Com-
mittee shall consist of 17 members, who shall be appointed
as follows:
‘‘(1) 1 member appointed by the Speaker of the
House of Representatives;
‘‘(2) 1 member appointed by the minority leader
of the House of Representatives;
‘‘(3) 1 member appointed by the majority leader
of the Senate;
‘‘(4) 1 member appointed by the minority leader
of the Senate;
‘‘(5) 13 members appointed by the Board 12 of
whom shall represent 1 of the following interests:
‘‘(A) Airline passengers.
‘‘(B) General aviation and sport aviation.
‘‘(C) Business aviation.
‘‘(D) Hub airports.
‘‘(E) Non-hub and general aviation air-
ports.
‘‘(F) Major airlines and national airlines.
‘‘(G) Regional airlines and air taxis.
‘‘(H) Cargo airlines and charter airlines.
‘‘(I) Aircraft manufacturers.
‘‘(J) Airline employees.
‘‘(K) Federal Aviation Administration em-
ployees.
‘‘(L) State aviation officials.
‘‘(c) FUNCTIONS.—The Management Advisory Com-
mittee shall provide advice and counsel to the Administra-
tion on issues which affect or are affected by the operations
of the Administration. The Management Advisory Commit-
tee shall hold quarterly meetings. The Administration shall
give the Management Advisory Committee access to internal
documents (other than proprietary information and docu-
ments relating to on-going litigation) and personnel of the
Administration. The Management Advisory Committee
shall function as an oversight resource for management, pol-
icy, spending, and regulatory matters under the jurisdic-
tion of the Administration.
‘‘(d) CHAIRMAN.—The Management Advisory Commit-
tee shall elect a chairman of the Management Advisory
Committee from among its members.
‘‘(e) TERMS OF MEMBERS.—
‘‘(1) MEMBERS
APPOINTED
BY
CONGRESS.—
Members appointed under subsections (b)(1) through
(b)(4) shall be appointed for a term of 2 years.
‘‘(2) MEMBERS
APPOINTED
BY
THE
BOARD.—
Members appointed under subsection (b)(5) shall be
appointed for a term of 3 years.
‘‘(f) TRAVEL AND PER DIEM.—Each member of the
Management Advisory Committee shall be paid actual trav-
el expenses, and per diem in lieu of subsistence expenses
when away from his or her usual place of residence, in ac-
cordance with section 5703 of title 5.
‘‘(g) UTILIZATION OF PERSONNEL FROM FAA.—The
Administration shall make available to the Management
Advisory Committee such staff, information, and adminis-
trative services and assistance as may reasonably be re-
quired to enable the Management Advisory Committee to
carry out its responsibilities under this section.
‘‘(h) APPLICABILITY OF FEDERAL ADVISORY COMMIT-
TEE ACT.—The Management Advisory Committee shall be
subject to the Federal Advisory Committee Act (5 U.S.C.
App.); except that section 14(a)(2)(B) of such Act (relating
to the termination of advisory committees) shall not apply
to the Committee.
‘‘§ 1316. Authority to carry out certain transferred
functions, duties, and powers
‘‘Except as otherwise provided in this chapter, in car-
rying out a function, duty, or power transferred under the
Federal Aviation Administration Revitalization Act of
1995 (including the amendments made by such Act), the
Administration has the same authority that was vested in
the department, agency, or instrumentality of the United
States Government carrying out the function, duty, or
power immediately before the transfer. An action of the Ad-
ministration in carrying out the function, duty, or power
has the same effect as when carried out by the department,
agency, or instrumentality.
‘‘SUBCHAPTER III—AUTHORITY
‘‘§ 1331. Functions
‘‘(a) IN GENERAL.—The functions of the Federal Avia-
tion Administration shall be all functions vested in the
Board, the Chief Executive Officer, or the Federal Aviation
Administration by this title or by law enacted after the date
of the enactment of this chapter. Such functions include
functions of the Administration, the Board, and the Chief
Executive Officer under the following provisions of this title:
‘‘(1) Section 308(b).
‘‘(2) Section 353.
‘‘(3) Section 1114(d).
‘‘(4) Section 1131(c).
‘‘(5) Subsections (c) and (d) of section 1132.
‘‘(6) Section 1135.
‘‘(7) Section 1153(c).
‘‘(8) Subsections (a), (c), and (d) of section
40101.
‘‘(9) Section 40102(a)(8).
‘‘(10) Section 40103(b).
‘‘(11) Section 40104.
‘‘(12) Section 40105.
‘‘(13) Section 40106(a).
‘‘(14) Section 40107.
‘‘(15) Section 40108.
‘‘(16) Section 40109(b).
‘‘(17) Subsections (a) and (b) of section 40110.
‘‘(18) Section 40111.
‘‘(19) Section 40112.
‘‘(20) Section 40113.
‘‘(21) Section 40114.
‘‘(22) Section 40115.
‘‘(23) Section 40117.
‘‘(24) Section 40119.
‘‘(25) Section 41714.
‘‘(26) Chapter 441.
‘‘(27) Chapter 443.
‘‘(28) Chapter 445.
‘‘(29) Chapter 447.
‘‘(30) Chapter 449.
‘‘(31) Chapter 451.
‘‘(32) Chapter 453.
‘‘(33) Chapter 461.
‘‘(34) Section 46301.
‘‘(35) Section 46302.
‘‘(36) Section 46303.
‘‘(37) Section 46304.
‘‘(38) Section 46306.
‘‘(39) Section 46308.
‘‘(40) Section 46311.
‘‘(41) Section 46313.
‘‘(42) Section 46315.
‘‘(43) Section 46316.
‘‘(44) Chapter 465.
‘‘(45) Chapter 471.
‘‘(46) Chapter 473.
‘‘(47) Chapter 475.
‘‘(48) Chapter 481.
‘‘(49) Chapter 491.
‘‘(b) INCIDENTAL FUNCTIONS.—In addition, the func-
tions of the Administration shall include all functions of
the Department of Transportation on the effective date of
this section which the Administration determines are inci-
dental to, helpful to, or necessary for the performance of
the functions referred to in subsection (a) or which relate
primarily to those functions.
‘‘§ 1332. Regulations
‘‘(a) GENERAL
AUTHORITY.—The Administration
may issue, rescind, and amend such regulations as are nec-
essary to carry out its functions.
‘‘(b) APPROVAL OF BOARD.—
‘‘(1) GENERAL RULE.—The Administration may
only issue a proposed regulation, final regulation,
airworthiness directive, or advisory circular that may
result in the expenditure by State, local, and tribal
governments in the aggregate, or by the private sector,
of $10,000,000 or more (adjusted annually for infla-
tion) in any 1 year if the Board first approves of the
issuance of such regulation, directive, or circular.
‘‘(2) EMERGENCY ACTION.—In an emergency, the
Chief Executive Officer may issue a regulation, direc-
tive, or circular described in paragraph (1) without
prior Board approval but subject to Board ratifica-
tion following issuance.
‘‘(c) REVIEW BY DOT.—
‘‘(1) SUBMISSION.—Before the Administration
issues any proposed or final regulation—
‘‘(A) the Administration shall submit a
copy of the regulation to the Secretary of Trans-
portation;
‘‘(B) the Administration shall provide the
Secretary with a period of 5 days (excluding
Saturdays, Sundays, and holidays) beginning on
the date of such submission to determine whether
or not the regulation is likely to have a signifi-
cant effect on other modes of transportation in
the national transportation system or the Sec-
retary’s aviation responsibilities, including na-
tional defense responsibilities; and
‘‘(C) if the Secretary determines, before the
last day of such 5-day period, that the regulation
is likely to have such a significant effect, the Ad-
ministration shall provide the Secretary with an
additional period of 45 days to assess the effect
of the regulation on other modes of transpor-
tation in the national transportation system and
the Secretary’s aviation responsibilities, includ-
ing national defense responsibilities.
‘‘(2) RECOMMENDATIONS.—The Secretary may
recommend to the Administration modifications of a
proposed or final regulation necessary to minimize
the adverse effect of such regulation on other modes of
transportation in the national transportation system
or the Secretary’s aviation responsibilities, including
national defense responsibilities. The Administration
may make any modifications recommended by the
Secretary. If the Administration does not make a
modification recommended by the Secretary, the Ad-
ministration shall include in the publication of the
proposed or final regulation a description of the rec-
ommended modification and the reasons for not mak-
ing the modification.
‘‘(3) EXCEPTIONS.—This subsection shall not
apply to the following types of regulations:
‘‘(A) Regulations pertaining to agency orga-
nization, procedure, or practice.
‘‘(B) Regulations pertaining solely to navi-
gational aids.
‘‘(C) Regulations pertaining solely to air-
space designations and configurations.
‘‘(D) Regulations pertaining solely to stand-
ard instrument approach procedures.
‘‘(E) Regulations pertaining solely to air-
craft design.
‘‘(F) Regulations pertaining to the person-
nel management system developed under section
1314.
‘‘(G) Regulations pertaining to the acquisi-
tion management system developed under section
1334.
‘‘(4) EMERGENCY ACTION.—In an emergency, a
regulation may take effect for the duration of the
emergency and before the Secretary completes review
of the regulation under this subsection, as determined
necessary by the Chief Executive Officer or the Board.
‘‘(d) AUTOMATIC TERMINATION DATE.—Any regula-
tion issued by the Administration after the effective date
of this section which is likely to result in the annual expend-
iture by State, local, and tribal governments in the aggre-
gate, or by the private sector, of $25,000,000 or more (ad-
justed annually for inflation) in any 1 year must contain
an automatic termination date. The termination date shall
also apply to any advisory circular issued by the Adminis-
tration and pertaining solely to such regulation.
‘‘(e) EMERGENCY DEFINED.—In this section, the term
‘emergency’ means a situation where there is good cause for
finding that consideration by the Board or by the Depart-
ment of Transportation is impracticable or contrary to the
public interest.
‘‘§ 1333. Finality of decisions; appeals
‘‘Decisions of the Administration made pursuant to the
exercise of the functions enumerated in subtitle VII of this
title shall be administratively final, and appeals as cur-
rently authorized by law shall be taken directly to the Na-
tional Transportation Safety Board or to any court of com-
petent jurisdiction, as appropriate.
‘‘§ 1334. Procurement program
‘‘(a) EXEMPTION FROM PROCUREMENT LAWS.—
‘‘(1) IN GENERAL.—The following laws and regu-
lations shall not apply to the Federal Aviation Ad-
ministration:
‘‘(A) Title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C.
251–266).
‘‘(B) The Office of Federal Procurement
Policy Act (41 U.S.C. 401 et seq.).
‘‘(C) The Federal Acquisition Streamlining
Act of 1994 (Public Law 103–355).
‘‘(D) The Small Business Act (15 U.S.C.
631 et seq.); except that the Administration shall
provide reasonable opportunities to small busi-
ness concerns and small business concerns owned
and controlled by socially and economically dis-
advantaged individuals to be awarded contracts.
‘‘(E) Subchapter V of chapter 35 of title 31
(relating to the procurement protest system).
‘‘(F) The Brooks Automatic Data Process-
ing Act (40 U.S.C. 759).
‘‘(G) Section 3709 of the Revised Statutes of
the United States (41 U.S.C. 5).
‘‘(H) The Federal Acquisition Regulation
and any laws not listed in subparagraphs (A)
through (G) providing authority to promulgate
regulations in the Federal Acquisition Regula-
tion.
‘‘(2) EFFECTIVE DATE.—The exemption provided
by paragraph (1) shall not take effect until the expi-
ration of the 180-day period referred to in subsection
(c)(2).
‘‘(b) DEVELOPMENT
OF ACQUISITION MANAGEMENT
SYSTEM.—
‘‘(1) IN
GENERAL.—Not later than 180 days
after the date of the enactment of the Federal Aviation
Administration Revitalization Act of 1995, the Fed-
eral Aviation Board, in consultation with such non-
governmental experts in acquisition management sys-
tems as the Board may employ, shall develop an ac-
quisition management system for the Administration.
‘‘(2) CONSULTATION.—In developing the acquisi-
tion management system, the Board shall consult
nongovernmental experts in acquisition management
systems.
‘‘(3) GOALS.—The acquisition management sys-
tem to be developed by the Board under paragraph
(1) shall be designed—
‘‘(A) to ensure that services are procured
and new equipment is installed and certified as
quickly as possible without sacrificing principles
of fairness and protection against waste, fraud,
and abuse; and
‘‘(B) to ensure a common interoperable air
traffic control system with the military.
‘‘(4) EXPERTS EVALUATION.—The arrangements
entered into by the Board with the experts consulted
by the Board under paragraph (2) shall provide for
those experts to evaluate the acquisition management
system developed by the Board and submit to Con-
gress the results of such evaluation before the last day
of the 180-day period referred to in paragraph (1).
‘‘(c) NOTICE TO CONGRESS.—
‘‘(1) IN GENERAL.—Upon the development of the
acquisition management system, the Board shall sub-
mit a comprehensive plan describing the acquisition
management system to Congress, along with all exist-
ing or proposed rules or regulations relevant to the
system.
‘‘(2) 
IMPLEMENTATION.—The 
Administration
may begin to implement the acquisition management
system only after the expiration of the 180-day period
that begins on the date on which the plan is submit-
ted to Congress under paragraph (1). The acquisition
management system shall apply to contracts entered
into after the expiration of such 180-day period.
‘‘(d) CONTRACTS.—
‘‘(1) APPROVAL OF CERTAIN CONTRACTS.—The
Administration may only enter into a contract that
has a total contract value, including all options, of an
amount greater than $100,000,000 if the Board first
approves of the entry into the contract.
‘‘(2) NOTICE
TO
CONGRESS
OF
CERTAIN
CON-
TRACTS.—In addition to complying with paragraph
(1), the Administration may only enter into a con-
tract that has a total contract value, including all op-
tions, of an amount greater than $250,000,000 if the
Board provides written notice to Congress of the pro-
posed entry into the contract, together with a descrip-
tion of the contract and at least 30 calendar days
elapse after the date of such notification.
‘‘§ 1335. Judicial review of actions in carrying out cer-
tain transferred duties and powers
‘‘(a) JUDICIAL REVIEW.—An action of the Adminis-
tration in carrying out a duty or power transferred under
the Department of Transportation Act (Public Law 89–
670) and under the Federal Aviation Administration Revi-
talization Act of 1995 and an action of the Administrator
of the Federal Aviation Administration in carrying out a
duty or power specifically assigned to the Administrator
by the Department of Transportation Act and transferred
to the Administration by the Federal Aviation Administra-
tion Revitalization Act of 1995 may be reviewed judicially
to the same extent and in the same way as if the action
had been an action by the department, agency, or instru-
mentality of the United States Government carrying out
the duty or power immediately before the transfer.
‘‘(b) 
APPLICATION
OF
PROCEDURAL
REQUIRE-
MENTS.—A statutory requirement related to notice, an op-
portunity for a hearing, action on the record, or adminis-
trative review that applied to a duty or power transferred
by the Acts referred to in subsection (a) applies to the Ad-
ministration when carrying out the duty or power.’’.
SEC. 4. BUDGET OF ADMINISTRATION.
(a) IN GENERAL.—Section 48109 of title 49, United
States Code, is amended to read as follows:
‘‘§ 48109. Budget information and legislative rec-
ommendations and comments
‘‘(a) PREPARATION.—Subject to approval of the Fed-
eral Aviation Board, the Chief Executive Officer shall pre-
pare an annual budget for the Administration.
‘‘(b) SUBMISSION OF BUDGET TO DOT.—
‘‘(1) IN GENERAL.—At the same time that agen-
cies of the Department of Transportation having ju-
risdiction over other modes of transportation are re-
quired to submit their budgets to the Secretary of
Transportation, the Administration shall submit to
the Secretary the budget prepared by the Administra-
tion and approved by the Board. The Secretary shall
review the budget and may recommend to the Admin-
istration modifications in the budget necessary to en-
sure that the budget is consistent with the needs of the
national transportation system and the Secretary’s
aviation responsibilities. The Administration may
modify the budget to adopt any recommendation
made by the Secretary.
‘‘(2) OPPORTUNITY FOR COMMENT.—At least 30
days before submitting a budget to the Secretary
under paragraph (1), the Administration shall submit
a draft of the budget to the Management Advisory
Committee established by section 1315 for comment.
‘‘(c) SUBMISSION OF BUDGET TO CONGRESS.—
‘‘(1) IN GENERAL.—When the Board submits to
the President or the Director of the Office of Manage-
ment and Budget any budget information, legislative
recommendation, or comment on legislation about
amounts authorized in section 48101 or section
48102, the Board concurrently shall submit a copy of
the information, recommendation, or comment to the
Speaker of the House of Representatives, the Commit-
tees on Transportation and Infrastructure and Ap-
propriations of the House of Representatives, the
President of the Senate, and the Committees on Com-
merce, Science, and Transportation and Appropria-
tions of the Senate.
‘‘(2) SPECIAL RULE WITH RESPECT TO ANNUAL
BUDGETS.—The annual budget of the Administration
submitted to Congress shall include—
‘‘(A) budget requests and Airport and Air-
way Trust Fund estimates for the ensuing 4 fis-
cal years;
‘‘(B) a numerical ranking, by degree of im-
portance to the national airspace system, of the
Administration’s requests for funding of air traf-
fic control modernization projects under section
48101;
‘‘(C) the total number of man-years of di-
rect effort the Administration estimates it will
use under support service contracts (including
professional, technical, engineering, site prepara-
tion, and installation and other services com-
parable to those performed by Government em-
ployees, but not including maintenance as part
of a supply contract, janitorial, research and de-
velopment, or construction services or services in-
cidental to supply contracts) during the fiscal
year for which the budget is being submitted;
‘‘(D) any modifications made by the Ad-
ministration under subsection (b) with respect to
the budget; and
‘‘(E) if the Administration does not adopt
a recommendation made by the Secretary under
subsection (b), a description of the recommenda-
tion and the reasons for not adopting the rec-
ommendation.
Subparagraph (C) shall take effect with the budget
submission for fiscal year 1997. The estimate under
subparagraph (C) for such budget submission shall
include for comparison the estimated total number of
man-years of direct effort the Administration used
under such support service contracts in each of fiscal
years 1992 and 1995.’’.
(b) CONFORMING
AMENDMENT.—The analysis for
chapter 481 is amended by striking the item relating to sec-
tion 48109 and inserting the following:
‘‘48109. Budget information and legislative recommendations and comments.’’.
SEC. 5. COST-BENEFIT ANALYSIS FOR MINIMUM SAFETY
STANDARDS.
Section 44701 is amended by adding at the end the
following:
‘‘(f) COST-BENEFIT ANALYSIS.—
‘‘(1) IN GENERAL.—For any regulation or stand-
ard to be issued under subsection (a) or (b) that is
likely to result in annualized compliance costs in ex-
cess of $25,000,000, the Administration shall, in ad-
dition to other requirements in law, identify and pub-
lish together with such regulation or standard the fol-
lowing:
‘‘(A) The benefits of the regulation or stand-
ard, quantified where appropriate and feasible,
and otherwise qualitatively described, including
in appropriate cases, the nature and number of
deaths or injuries that the regulation or stand-
ard is designed to prevent.
‘‘(B) The approximate number of aircraft,
airports, airmen, or cabin crew affected by the
regulation or standard.
‘‘(C) The probable cost of fulfilling the re-
quirements of the regulation or standard, quan-
tified where appropriate and feasible, and other-
wise qualitatively described, including in appro-
priate cases any adverse effects on competition or
disruption or dislocation of air service or other
commercial practices engaged in by the entities
affected by such requirements.
‘‘(D) Alternative means of achieving the ob-
jective of the regulation or standard while mini-
mizing the costs, adverse effects on competition,
and the disruption or dislocation of air service
or the commercial practices affected by the regu-
lation or standard and a statement as to why
the Administration chose the regulation or stand-
ard adopted in preference to the alternatives con-
sidered.
‘‘(2) EMERGENCY.—In the case of an emergency,
the Chief Executive Officer or the Board may suspend
the application of this subsection for the duration of
the emergency.
‘‘(3) NONAPPLICABILITY
TO
ADVISORY
CIRCU-
LARS.—This subsection shall not apply to advisory
circulars.’’.
SEC. 6. BUDGETARY TREATMENT OF TRUST FUND.
(a) IN GENERAL.—Chapter 481 is amended by adding
at the end the following:
‘‘§ 48111. Budgetary treatment of Airport and Airway
Trust Fund
‘‘The receipts and disbursements of the Airport and
Airway Trust Fund established by section 9502 of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 9502)—
‘‘(1) shall not be included in the totals of—
‘‘(A) the budget of the United States Gov-
ernment as submitted by the President, or
‘‘(B) the congressional budget (including al-
locations of budget authority and outlays pro-
vided therein),
‘‘(2) shall be exempt from any general budget
limitation imposed by statute on expenditures and
net lending (budget outlays) of the United States Gov-
ernment, and
‘‘(3) shall be exempt from any order issued under
part C of the Balanced Budget and Emergency Defi-
cit Control Act of 1985.
‘‘§ 48112. Safeguards against deficit spending
‘‘(a) ESTIMATES OF UNFUNDED AVIATION AUTHOR-
IZATIONS AND NET AVIATION RECEIPTS.—Not later than
March 31 of each year, the Federal Aviation Administra-
tion, in consultation with the Secretary of the Treasury,
shall estimate—
‘‘(1) the amount which would (but for this sec-
tion) be the unfunded aviation authorizations at the
close of the first fiscal year that begins after that
March 31, and
‘‘(2) the net aviation receipts at the close of such
fiscal year.
‘‘(b) PROCEDURE OF EXCESS UNFUNDED AVIATION
AUTHORIZATIONS.—If the Administration determines for
any fiscal year that the amount described in subsection
(a)(1) exceeds the amount described in subsection (a)(2), the
Board shall determine the amount of such excess.
‘‘(c) ADJUSTMENT OF AUTHORIZATIONS IF UNFUNDED
AUTHORIZATIONS EXCEED RECEIPTS.—