advice and consent of the Senate, but may serve no more
than two consecutive terms.
(d) REMOVAL OF BOARD MEMBERS.—A member of
the Board serves at the pleasure of the President.
(e) BOARD ACTION REQUIRED.—The Board shall
meet at the call of the Chairman and should meet, at a
minimum, on a quarterly basis. The Board shall be re-
sponsible for actions of the Corporation, including the fol-
lowing matters:
(1) Adoption of an annual budget and approval
of the Corporation’s strategic plan.
(2) Authorization for issuance of indebtedness.
(3) Establishment and modification of user fees
and other charges to the public.
(4) Appointment of the Chief Executive Officer.
(f) BYLAWS.—The Board may adopt and amend by-
laws governing the operation of the Corporation. The by-
laws shall be consistent with this Act.
(g) REVIEW OF BORROWING.—The issuance of in-
debtedness by the Corporation may be disapproved by the
Secretary of Transportation if the Secretary determines
that the total revenues of the Corporation are insufficient
to satisfy obligations incurred by the Corporation, includ-
ing those that are held by the United States. Within 30
days of the receipt of a proposal for the issuance of indebt-
edness, the Secretary shall notify the Chairman of the
Board of any disapproval, with justification for a dis-
approval.
SEC. 204. COMMITTEES OF THE BOARD; INDEPENDENT
AUDITOR.
(a) CREATION OF COMMITTEES OF THE BOARD.—
The Board of Directors of the Corporation shall create
and maintain a Safety Committee and any other commit-
tees of the Board that are needed or desirable to carry
out Board responsibilities effectively.
(b) SAFETY COMMITTEE OF THE BOARD.—(1) The
Safety Committee shall include the Secretaries of Trans-
portation and Defense, or designees.
(2) It shall be the continuing duty of the Safety Com-
mittee to supervise the aviation safety activities of the
Corporation, and in particular actions taken in response
to safety agencies, including the Federal Aviation Admin-
istration and the National Transportation Safety Board.
(c) INDEPENDENT
AUDIT
AND
INVESTIGATION
FUNCTION.—To fulfill the responsibilities of the Corpora-
tion as a Federal entity, as set forth in section 8G(h)(2)
of the Inspector General Act (Appendix 3 of title 5, United
States Code), the Chairman of the Board shall appoint
a qualified individual to establish and administer an inde-
pendent audit and investigatory organization that reports
directly to the Board of Directors of the Corporation. The
organization shall conduct and supervise audits and inves-
tigations of the economy, efficiency, and effectiveness of
the Corporation’s programs and operations, act to detect
and prevent fraud, waste, and abuse in such programs and
operations, and make any necessary and desirable rec-
ommendations for corrective actions to the Board.
SEC. 205. OFFICERS AND THEIR RESPONSIBILITIES.
(a) APPOINTMENT AND TERMS.—(1) The Corpora-
tion has a Chief Executive Officer, who is selected and
appointed by the Board of Directors to manage the Cor-
poration. However, until the Board appointed pursuant to
section 203 of this Act makes an appointment, an individ-
ual with the qualifications specified by this subsection may
be appointed, by the President, within 30 days of the en-
actment of this Act, to exercise all of the authority of the
Corporation set forth in this Act in order to prepare the
Corporation to accept the transfer of air traffic control
responsibilities by the date of transfer. The Chief Execu-
tive Officer is subject to the policy guidance of the Board,
reports to the Board, and serves at the pleasure of the
Board. The Board may revoke actions of the Chief Execu-
tive Officer.
(2) The Chief Executive Officer shall be a persons
who, by reason of professional background and experience,
is especially qualified to manage the Corporation.
(3) The Chief Executive Officer shall—
(A) be responsible for the management and di-
rection of the Corporation, and for the exercise of all
powers and responsibilities of the Corporation;
(B) establish Corporation offices and define
their responsibilities and duties, with full authority
to reorganize the Corporation as required;
(C) before taking office, take an oath to bear
full faith and allegiance to the United States and
faithfully discharge the duties of the office; and
(D) designate an officer of the Corporation who
is vested with the authority to act in the capacity of
the Chief Executive Officer if the Chief Executive
Officer is absent or incapacitated.
(4) The Chief Executive Officer shall appoint the
other officers and employees of the Corporation. The Chief
Executive Officer may delegate to other officers or employ-
ees any of the functions of the Corporation. An officer,
employee, or agency of the Corporation is subject only to
the supervision of the Chief Executive Officer or des-
ignated subordinates of the Chief Executive Officer.
(b) PAY.—The Chief Executive Officer has exclusive
authority, subject to sections 302 and 501 of this Act, to
fix the pay of the officers and other employees of the Cor-
poration, except that the Board of Directors shall fix the
pay of the Chief Executive Officer. However, the President
shall fix the pay, at a rate not to exceed level III of the
Executive Schedule, of the Chief Executive Officer until
the Board is appointed.
SEC. 206. GENERAL AUTHORITY.
Except as otherwise specifically provided in this Act,
the Corporation—
(1) shall have perpetual succession in its cor-
porate name unless dissolved by law;
(2) may adopt and use a corporate seal, which
shall be judicially noticed;
(3) may acquire, purchase, lease, and hold, pos-
sess, use, and improve real and personal property,
including housing units, patents, trademarks, copy-
rights, and proprietary data, it considers necessary
in the transaction of its business, and sell, lease,
grant, transfer, and dispose of the real and personal
property it considers necessary to effectuate the pur-
pose of the Corporation;
(4) may indemnify members of the board of di-
rectors, the Chief Executive Officer, other officers,
attorneys, agents, and employees of the Corporation
for liabilities and expenses incurred in connection
with their corporate activities;
(5) may adopt, amend, and repeal Corporation
bylaws, orders and regulations governing the manner
in which its business may be conducted and the
power granted to it by law may be exercised;
(6) may enter into the contracts, agreements,
or other arrangements, including financial assist-
ance, it considers appropriate to conduct its business
with any entity, on the terms it considers appro-
priate, and may sue and be sued in its corporate
name for purposes of this paragraph;
(7) notwithstanding any other law, without
need for appropriation and without fiscal year limi-
tation, may retain and use its revenues and receipts
from whatever source, including obligations issued
and disposition of real and personal property, and
its other assets to carry out its purposes, including
research and development and capital investment;
(8) shall have the priority of the United States
with respect to the payment of debts out of bank-
rupt, insolvent, an decedents’ estates;
(9) may accept gifts or donations of services
and property, including real, personal, mixed, tan-
gible, or intangible property, except that no gift may
be accepted that attaches conditions inconsistent
with applicable laws and regulations or is condi-
tioned upon or will require the expenditure of appro-
priated funds that are not available to the Corpora-
tion; provided, that the Corporation shall establish
written guidelines setting forth the criteria to be
used in determining whether the acceptance of gifts
or donations authorized in this subsection would re-
flect unfavorably upon the ability of the Corporation
or any employee to carry out its responsibilities or
official duties in a fair and objective manner, or
would compromise the integrity or the appearance of
the integrity of its programs or any official involved
in those programs;
(10) may perform such investigations, including
aircraft accident investigations, as it shall deem nec-
essary to carry out the provisions of and exercise
and perform its powers and duties under this Act,
and shall be included as a party in all NTSB acci-
dent investigations that involve activities of the Cor-
poration;
(11) may establish training facilities and con-
duct such training as it deems necessary;
(12) may use frequency assignments or licenses
(obtained from the National Telecommunications
and Information Administration by the Federal
Aviation Administration) it considers necessary to
effectuate the purpose of the Corporation; and
(13) shall have such other powers as may be in-
cidental, necessary or appropriate to carry out the
purposes this Act and of the Corporation.
SEC. 207. AUTHORITY OVER MOVEMENT OF AIRCRAFT FOR
THE UNITED STATES; RELATED AUTHORITY.
(a) RESPONSIBILITY FOR MOVEMENT OF AIRCRAFT
IN UNITED STATES AIRSPACE.—(1) As successor to the
Federal Aviation Administration pursuant to this Act, and
subject to the requirements of section 44724 of title 49,
United States Code (as enacted by section 409 of this Act
(Regulation of the United States Air Traffic Control Serv-
ice Corporation)), and retention by the United States of
exclusive sovereignty over airspace of the United States,
the Corporation shall exercise day-to-day operational su-
pervision and control over the movement of aircraft on be-
half of the United States that was provided by the Federal
Aviation Administration prior to the date of transfer.
(2) The Corporation shall develop and implement air-
space orders, procedures, and other directives with respect
to the use of navigable airspace. This authority includes
the ability to issue routine airspace actions and airspace
assignments and designations in accordance with rules
prescribed for the Corporation by the Administrator. Not-
withstanding the Corporation’s safety functions with re-
gard to any orders or directives it may prescribe, respon-
sibility for prescribing safety standards and the policies
encompassing the safety structure of the National Air-
space system remains with the Administrator.
(3) The Corporation shall develop and implement air
traffic orders, procedures, and other directives governing
the flight of aircraft, for the navigation, protection, and
identification of aircraft, for the protection of persons and
property on the ground, and for the efficient utilization
of the navigable airspace, including procedures as to safe
altitudes of flight and the prevention of collision, between
aircraft and land or water vehicles, and between aircraft
and airborne objects.
(4) The Corporation is authorized to—
(A) acquire, establish, improve, dispose of, and
eliminate air navigation facilities wherever necessary;
(B) operate and maintain such air-navigation
facilities; and
(C) provide necessary facilities and personnel
for the management and protection of air traffic.
The Corporation shall update and arrange for publi-
cation of clearly defined routes for navigation
through airspace where the Corporation determines
that publication of such routes would promote safety
in air navigation.
(5) To encourage and allow maximum use of the navi-
gable airspace by civil aircraft consistent with national se-
curity, and subject to appropriate military authority exer-
cised pursuant to section 40106 of title 49, United States
Code, the Corporation shall recommend for issuance by
the Administrator, in consultation with the Secretary of
Defense, regulations that establish areas in the airspace
the Administrator decides are necessary in the interest of
national defense, and to restrict or prohibit flight of civil
aircraft that the Corporation cannot identify, locate, and
control with available facilities in those areas.
(6) The Corporation shall recommend to the Adminis-
trator long-range plans and policy for the orderly develop-
ment and use of the navigable airspace that will best meet
the needs of, and serve the interests of, civil aeronautics
and the national defense, except for needs of the armed
forces that are peculiar to warfare and primarily of mili-
tary concern. In making recommendations, the Corpora-
tion shall emphasize—
(A) providing the highest degree of safety and
efficiency in air commerce;
(B) meeting the forecasted needs of civil aero-
nautics; and
(C) meeting the requirements that the Sec-
retary of Defense establishes for the support of the
national defense.
(7) To implement the authority in this section, the
Corporation may undertake reasonable actions, including
action to—
(A) develop, alter, test, and evaluate systems,
procedures, facilities, and devices, and define their
performance characteristics, to meet the needs for
safe and efficient navigation and traffic control of
civil and military aviation, except for needs of the
armed forces that are peculiar to warfare and pri-
marily of military concern; and
(B) select systems, procedures, facilities, and
devices that will best serve those needs and promote
maximum coordination of air traffic control, air de-
fense, and range surveillance systems except for
needs of the armed forces that are peculiar to war-
fare and primarily of military concern.
(8) The Corporation shall establish procedures, be-
fore transition, to notify the Administrator and the public
when major changes in serve are contemplated.
(9) In any case where negotiations with other coun-
tries over airspace control and air navigation may be nec-
essary or desirable, the Corporation shall be subject to the
requirements of section 303 of this Act and shall act
through the Federal Aviation Administration, the Depart-
ment of Transportation, and the Department of State and,
to the degree possible, provide the Administrator with as
much notice as possible of requirements in this area.
(10) The Corporation shall refer for action by the
Federal Aviation Administration, pursuant to chapter 447
and chapters 461 through 465 of title 49, United States
Code, complaints against any person for violations of
rules, regulations, orders, and other directives issued by
the Corporation or by the Administrator. The Adminis-
trator shall take appropriate action promptly on com-
plaints forwarded by the Corporation, consistent with pro-
cedural requirements of the Administration for enforce-
ment of its rules, regulations, orders, and other directives.
The Corporation shall provide necessary assistance in any
enforcement action taken under this subsection. Nothing
in this paragraph limits or changes the current power of
the Administrator to take action under his or her own au-
thority.
(b) AVIATION RESEARCH AND DEVELOPMENT.—The
Corporation is authorized to undertake research and devel-
opment projects as it deems necessary to carry out the
purposes of this Act.
(c) METEOROLOGICAL
SERVICES; AERONAUTICAL
CHARTS.—The Corporation shall be responsible for the
dissemination of available aviation-related meteorological
information to its air traffic services users in accordance
with published air traffic procedures.
(d) NON-FEDERAL FACILITIES.—The Corporation is
authorized to operate, contract for, maintain, and certify
non-federal systems and equipment used to support air
traffic control and air navigation.
SEC. 208. AUTHORITY TO INCUR INDEBTEDNESS.
(a) GENERAL AUTHORITY.—Subject to the authority
of the Secretary of Transportation pursuant to section
203(g) of this Act to disapprove the issuance of indebted-
ness by the Corporation, the Corporation may issue such
notes or other obligations as the Corporation determines
necessary to carry out the purposes of this subtitle, either
to the Secretary of the Treasury pursuant to subsection
(b) of this section or to private entities pursuant to sub-
section (c) of this section. The aggregate amount of any
such obligations outstanding at any one time shall not ex-
ceed $15,000,000,000.
(b) TREASURY BORROWING.—The Corporation may
issue to the Secretary of the Treasury notes or other obli-
gations in such forms and denominations, bearing such
maturities, and subject to such terms and conditions, as
may be prescribed by the Secretary of the Treasury. Such
notes shall bear interest at a rate determined by the Sec-
retary of the Treasury, taking into consideration current
market yields on outstanding marketable obligations of the
United States of comparable maturities. The Secretary of
the Treasury shall purchase any notes or other obligations
issued hereunder, and for that purpose the Secretary is
authorized to use as a public debt transaction the proceeds
from the sale of any securities issued under chapter 31
of title 31, United States Code, and the purposes for which
securities may be issued under that Act are extended to
include any purchase of such notes or obligations acquired
by him or her under this subsection. The Secretary of the
Treasury may at any time sell any notes or other obliga-
tions acquired by him or her under this subsection.
(c) MARKET BORROWING.—(1) If the Corporation
demonstrates to the satisfaction of the Secretary of Treas-
ury that borrowing from the private markets would be
cost-effective, the Corporation is authorized to issue notes
and other obligations to private entities consistent with
this subsection.
(2) The Corporation may pledge its assets and pledge
and use its revenues and receipts for the payment of the
principal or interest on its obligations, for the purchase
or redemption thereof, and for other purposes incidental
thereto, including creation of reserve, sinking, and other
funds which may be similarly pledged and used, to such
extent and in such manner as the board deems necessary
or desirable. The Corporation is authorized to enter into
binding covenants with the holders of such obligations,
and with the trustee, if any, under any agreement entered
into in accordance with the issuance thereof with respect
to the establishment of reserve, sinking, and other funds,
application and use of revenues and receipts of the Cor-
poration, stipulations concerning the subsequent issuance
of obligations or the execution of leases or lease/purchases
relating to properties of the Corporation and such other
matters as the board deems necessary or desirable to en-
hance the marketability of such obligations. However, the
Corporation may not enter into covenants that have the
effect of conflicting with any requirement of this Act, as
determined by the Secretary of Transportation in approv-
ing the issuance of indebtedness pursuant to subsection
203(g) of this Act.
(3) Obligations issued by the Corporation under this
subsection shall be subject to such terms and conditions
as the board determines.
(4) Obligations issued by the Corporation under this
subsection shall—
(A) be negotiable or nonnegotiable and bearer
or registered instruments, as specified therein and in
any indenture or convenant relating thereto;
(B) contain a recital that they are issued under
this section, and such recital shall be conclusive evi-
dence of the regularity of the issuance of sale of
such obligations and of their validity; and
(C) be treated as an obligation or security of
the United States for purposes of the counterfeiting
and forgery provisions of title 18, United States
Code.
(b) TAXATION OF CORPORATION INDEBTEDNESS.—
The indebtedness of the Corporation, in whatever form,
shall be exempt both as to principal and interest from all
taxation now or hereafter imposed by a State or local tax-
ing authority except estate, inheritance, and gift taxes.
SEC. 209. FEES AND OTHER CHARGES FOR SERVICES.
(a) FEES AND OTHER CHARGES FOR SERVICES.—
The Corporation is authorized to and shall impose fees
or other charges for service that are consistent with the
requirements of this section. The imposition and subse-
quent modification of fees or other charges shall be carried
out by means that provide the opportunity for public com-
ment in writing, and for access by the public to all com-
ments filed in a particular action on fees or other charges.
Fees and charges by the Corporation may not become ef-
fective prior to January 1, 1997.
(b) POLICY FOR IMPOSITION OF FEES, CHARGES AND
PRACTICES.—The fees, charges and related practices of
the Corporation shall conform to the following policies:
(1) Fees, charges and practices shall not unrea-
sonably restrain competition by, for example, being
unfair, unreasonable, unjustly discriminatory among
current or potential users of the air traffic system,
or unreasonably disadvantaging new entrants.
(2) Fees and charges shall be consistent with
all obligations of the United States Government
under an international agreement.
(3) Fees and charges shall be maintained at a
level sufficient to assure the satisfaction of all obli-
gations incurred by the Corporation, including those
that are held by the United States.
(c) PAYMENT TO CORPORATION.—Fees and other
charges for services under this Act shall be paid directly
to the Corporation or its agent. The Corporation is au-
thorized to levy fines, interest, and penalties for late pay-
ment or nonpayment of fees and other charges imposed
under this Act.
(d) COST ALLOCATION STUDY.—(1) The Corporation
shall, as soon as practical after the date of transfer, under-
take a study of the allocation of all Corporation costs to
identifiable, discrete—
(A) air-traffic-service categories, distinguishing
at a minimum among domestic operations, foreign
air transportation operations to and from the United
States, and overflights of the United States; and
(B) user categories, including commercial avia-
tion, general aviation, and public-use aviation.
(2) The Corporation shall complete the cost allocation
study not later than 18 months after the date of transfer.
The study shall consider all costs incurred by the Corpora-
tion, and all costs incurred by the Department of Defense
to produce air traffic control services for civil aviation.
The study shall be consistent with generally accepted ac-
counting principles for commercial, not-for-profit entities.
(e) PUBLIC AIRCRAFT.—The Corporation shall not
impose fees or other charges for air traffic services pro-
vided to public aircraft, as defined in subtitle VII of title
49, United States Code.
(f) MILITARY AIRCRAFT.—The Corporation shall not
impose fees or other charges for air traffic services pro-
vided to United States military aircraft (Department of
Defense, Air National Guard and reserve components,
Coast Guard).
(g) GENERAL AVIATION AIRCRAFT.—The Corpora-
tion shall not impose fees or other charges for air traffic
services provided to aircraft that are not used in the busi-
ness of providing transportation of persons or property for
compensation or hire by air.
(h) FOREIGN AIR TRANSPORTATION.—The Corpora-
tion’s authority to impose fees or other charges under this
section includes the authority to impose fees or other
charges for transportation of persons or property in for-
eign air transportation, as well as for services in the case
of overflights of United States airspace.
(i) REVIEW OF USER FEES.—(1) The actions of the
Corporation in exercising the authority of this section are
subject to review solely pursuant to the provisions of this
subsection.
(2) A user may file a complaint alleging that a fee,
charge or practice violates paragraph 209(b)(1) of this
section with the Department of Justice and seeking review
of any such fee, charge or practice. The Department of
Justice shall review each complaint and, if the Attorney
General concludes that as a result of such fee, charge or
practice, competition is likely to be unreasonably re-
strained, the Attorney General shall forward the complaint
to the Secretary of Transportation for review and action.
Upon review of the complaint and in consultation with the
Attorney General, the Secretary of Transportation may
disapprove a fee, charge, or practice that violates the pro-
visions of paragraph 209(b)(1) of this section or issue
such other order as will remedy that violation.
(3) Complaints alleging that a new fee or charge vio-
lates paragraph 209(b)(2) of this section may be filed with
the Department of Transportation, seeking review of any
such new fee or charge within 60 days after the user re-
ceives written notice of a change to the fee or charge.
Upon review of the complaint, the Secretary of Transpor-
tation may disapprove any fee or charge that violates the
provisions of paragraph 209(b)(2) of this section or issue
such other order as will remedy that violation.
(4) Not later than 180 days after the date of enact-
ment of this section, the Department of Transportation
shall establish such procedures, guidelines or other meas-
ures as may be necessary to carry out its responsibilities
under this section.
(j) TRANSITIONAL USER FEES.—(1) During the 2-
year period following the date of transfer, and subject to
the separate limitation specified in paragraph (3) of this
subsection, the total amount of fees or other charges im-
posed in any period of time on an entity in the business
of providing transportation to persons for compensation
or hire by air shall not exceed an amount that is 8.5 per-
cent of the total amount paid for such transportation dur-
ing that period of time.
(2) During the 2-year period following the date of
transfer, and subject to the separate limitation specified
in paragraph (3) of this subsection, the total amount of
fees or other charges imposed in any period of time on
an entity in the business of providing transportation of
property for compensation or hire by air shall not exceed
an amount that is 5.3 percent of the total amount paid
for such transportation during that period of time.
(3) During the 2-year period following the date of
transfer, the Corporation shall not impose fees or other
charges for air traffic services provided to a person travel-
ing in foreign air transportation that exceed the amount
of $5.10 per enplaned passenger departing the United
States. The Corporation may impose fees or charges dur-
ing the 2-year period for services in the case of overflights
of United States airspace, consistent with the require-
ments of this section.
SEC. 210. LIMITATION ON STATE AND LOCAL TAXATION.
(a) IN GENERAL.—The Corporation, its activities,
and facilities shall be exempt from all taxation now or
hereafter imposed by a State or local taxing authority, ex-
cept the Corporation is not exempt from taxation that sup-
ports direct coverage or services provided to the Corpora-
tion, including unemployment compensation coverage and
sewer and water services.
(b) DEBT OF THE CORPORATION.—The status, for
purposes of taxation, of debt issued by the Corporation
is set forth in section 208 of this Act.
(c) TAX LAWS APPLICABLE TO EMPLOYEES.—Noth-
ing in this Act relieves the employees of the Corporation
from the tax laws of the United States, the several States,
and political subdivisions of the several States.
SEC. 211. PREEMPTION OF AUTHORITY OVER AIR TRAFFIC
SERVICES.
(a) DEFINITION.—In this section, ‘‘State’’ means a
State, the District of Columbia, and a territory or posses-
sion of the United States.
(b) PREEMPTION.—(1) Except as provided in this
subsection, a State, political subdivision of a State, or po-
litical authority of at last 2 States may not enact or en-
force a law, regulation, or other provision having the force
and effect of law related to air traffic services authorized
to be provided by the Corporation pursuant to the author-
ity of this Act.
(2) This subsection does not limit a State, political
subdivision of a State, or political authority of at least 2
States that owns or operates an airport served by an air
carrier holding a certificate issued by the Secretary of
Transportation from carrying out its proprietary powers
and rights.
SEC. 212. SUITS BY AND AGAINST THE CORPORATION.
(a) JURISDICTION
FOR
LEGAL
ACTIONS
GEN-
ERALLY.—The United States district courts shall have
original jurisdiction over all actions brought by or against
the Corporation, except as otherwise provided in this Act.
Any action brought in a State court to which the Corpora-
tion is a party shall be removed to the appropriate United
States district court under the provisions of chapter 89
of title 28, United States Code.
(b) JURISDICTION FOR REVIEW OF CORPORATION
ORDERS
AND PROCEDURES.—Notwithstanding the re-
quirements of subsection (a) of this section, the United
States Court of Appeals for the District of Columbia Cir-
cuit, and alternatively the Court of Appeals of the United
States for the circuit in which the person seeking judicial
review resides or has its principal place of business, have
exclusive jurisdiction over petitions challenging final or-
ders or procedures issued by the Corporation with respect
to its air traffic control duties and powers designated to
be carried out under this Act. The petition must be filed
not later than 60 days after the order is issued. When
such a petition is filed, the clerk of the Court shall imme-
diately send a copy of the petition to the Chief Executive
Officer of the Corporation. A decision by a court under
this section may be reviewed only by the Supreme Court
of the United States.
(c) JURISDICTION FOR REVIEW OF TAKING AND IN-
FRINGEMENT CLAIMS.—(1) Any action for a taking of real
property founded upon the Constitution or any Act of
Congress or any regulation of an executive department
shall be brought against the United States in the Court
of Federal Claims pursuant to section 1491(a)(1) of title
28, United States Code.
(2) Any action founded upon the infringement of any
patent, copyright, certificate of plant variety protection,
or exclusive right in a mask work shall be brought against
the United States in the Court of Federal Claims pursuant
to section 1498 of title 28, United States Code.
(d) FEDERAL TORT CLAIMS ACT; APPLICABILITY OF
TITLE 28 U.S.C.—(1) The provisions of chapter 171 and
all other provisions of title 28, United States Code, relat-
ing to tort claims shall apply to tort claims arising out
of activities of the Corporation.
(2) Unless otherwise provided in this Act, the provi-
sions of title 28 relating to service of process, venue, and
limitations of time for bringing action in suits in which
the United States, its officers, or employees are parties,
and the rules of procedure adopted under title 28 for suits
in which the United States, its officers, or employees are
parties, shall apply in like manner to suits in which the
Corporation, its officers, or employees are parties.
(e) CONDUCT OF LITIGATION.—The Department of
Justice shall furnish the Corporation legal representation
but, with the prior consent of the Attorney General, the
Corporation may employ attorneys by contract or other-
wise to conduct litigation brought by or against the Cor-
poration or its officers or employees in matters affecting
the Corporation.
(f) THE JUDGMENT FUND.—The Judgment Fund of
the United States shall not be available for the satisfaction
of any claims against the Corporation.
(g) TESTIMONY OF CORPORATION EMPLOYEES.—Ex-
cept with the consent of the chief legal officer of the Cor-
poration, employees of the Corporation may not be called
to or provide expert testimony in civil litigation, regardless
of whether the Corporation, the United States, or any of
its agencies is a party to such litigation. The Corporation
is authorized to prescribe the circumstances, if any, under
which employees may provide opinion or expert testimony.
SEC. 213. ACQUIRING INTEREST IN PROPERTY BY EMINENT
DOMAIN.
(a) GENERAL AUTHORITY.—(1) To the extent finan-
cial resources are available, the Corporation may acquire
by eminent domain under subsection (b) of this section
interests in property necessary for operational control of
the airspace, including airways, air traffic services, and
navigation aids.
(2) The Corporation may exercise the power of emi-
nent domain only if it cannot—
(A) acquire the interest in the property by con-
tract; or
(B) agree with the owner on the purchase price
for the interest.
(b) CIVIL ACTIONS.—(1) A civil action to acquire an
interest in property by eminent domain under subsection
(a) of this section must be brought in the district court
of the United States for the judicial district in which the
property is located or, if a single piece of property is lo-
cated in more than one judicial district, in any judicial
district in which any piece of the property is located. An
interest is condemned and taken by the Corporation for
its use when a declaration of taking is filed under this
subsection and an amount of money estimated in the dec-
laration to be just compensation for the interest is depos-
ited in the court. The declaration may be filed with the
complaint in the action or at any time before judgment.
The declaration must contain or be accompanied by—
(A) a statement of the public use for which the
interest is taken;
(B) a description of the property sufficient to
identify it;
(C) a statement of the interest in the property
taken;
(D) a plan showing the interest taken; and
(E) a statement of the amount of money the
Corporation estimates is just compensation for the
interest.
(2) When the declaration is filed and the deposit is
made under paragraph (1) of this subsection, title to the
property vests in the United States; on behalf of the Cor-
poration, in fee simple absolute or in the lesser interest
shown in the declaration, and the right to the money vests
in the person entitled to the money. When the declaration
is filed, the court may decide—
(A) the time by which, and the terms under
which, possession of the property is given to the Cor-
poration; and
(B) the disposition of outstanding charges relat-
ed to the property.
(3) After a hearing, the court shall make a finding
on the amount that is just compensation for the interest
in the property and enter judgment awarding that amount
and interest on it. The rate of interest shall be equivalent
to current market yields on one-year obligations of the
United States and is computed on the amount of award
less the amount deposited in the court from the date of
taking to the date of payment.
(4) On application of a party, the court may order
immediate payment of any part of the amount deposited
in the court for the compensation to be awarded. If the
award is more than the amount received, the court shall
enter judgment against the Corporation for the deficiency.
SEC. 214. RELATIONSHIPS WITH FEDERAL AGENCIES.
(a) DEPARTMENT OF DEFENSE.—(1) In exercising
and performing its powers and duties under this Act, the
Corporation shall maintain national defense responsibil-
ities exercised by the Federal Aviation Administration as
of the date of transfer, including air defense and defense
readiness support.
(2) The Department of Defense (DOD) and the Cor-
poration shall continue to share current logistics and com-
mand and control systems and shall agree jointly on
changes to existing agreements or systems, including
changes to current agreements on flight inspections and
similar services. The DOD, the Administration, and the
Corporation shall establish processes at the local, regional
and national levels to establish policy and implementing
procedures and to approve jointly exemptions for unique
military missions.
(3) The Corporation and DOD shall develop proc-
esses for the assignment of military personnel within the
Corporation to ensure national defense interests are safe-
guarded and to improve understanding and cooperation
between the organizations.
(4) The DOD shall have the same exemptions from
acquisition laws as the Corporation when engaged in joint
actions to improve or replenish the national air traffic con-
trol system. The Corporation retains the ability to acquire
real property, goods and services through DOD, or other
appropriate agencies, but will be bound by the acquisition
laws and regulations governing those cases.
(b) NATIONAL TELECOMMUNICATIONS AND INFOR-
MATION ADMINISTRATION.—The Corporation shall obtain
needed frequency assignments or licenses for its oper-
ations from the Federal Aviation Administration, which
retains its role as the responsible agency for representing
the interests of the aeronautical services before national
and international spectrum authorities on all national and
international spectrum policy and management issues in-
volving the United States. Each assignment or license
made available to the Corporation shall remain in effect
for the life of the facility unless the National Tele-
communications and Information Administration with-
draws the spectrum from Federal Aviation Administra-
tion. In such cases, the Corporation shall be given ade-
quate notification.
(c) RELATIONSHIP WITH FEDERAL LAW ENFORCE-
MENT AGENCIES CONCERNING CONTROLLED SUBSTANCE
TRACKING.—In order to assist in controlling the illegal
transportation of controlled substances by aircraft in
United States airspace, the Corporation shall offer to Fed-
eral law enforcement agencies, without cost and in a time-
ly manner, all appropriate flightplan and tracking data re-
lated to such transportation. In this subsection, ‘‘con-
trolled substance’’ has the meaning provided under section
102 of the Comprehensive Drug Abuse Prevention and
Control Act of 1970 (21 U.S.C. 802).
(d) NATIONAL WEATHER SERVICE.—As successor to
the Federal Aviation Administration pursuant to this Act,
the Corporation shall exercise all functions performed by
the Federal Aviation Administration under agreements
with the National Weather Service concerning the collec-
tion or dissemination of weather conditions, forecasts,
warnings, and reports to persons engaged in civil aero-
nautics.
TITLE III—PERMANENT FEDERAL
REQUIREMENTS
SEC. 301. CORPORATION SUBJECT TO DIRECT FEDERAL
CONTROL IN TIME OF WAR OR NATIONAL
EMERGENCY.
In the event of war or a national emergency declared
by the President or Congress, the President may by Exec-
utive order transfer to the Department of Defense any
functions (including powers, duties, activities, facilities,
and parts of functions) of the Corporation and, in connec-
tion with the transfer, the President may provide for ap-
propriate transfers of records, property, and personnel.
The Chief Executive Officer, in consultation with the Ad-
ministrator and the Department of Defense, shall develop
plans for the effective discharge of the responsibilities of
the Corporation in the event of war or national emergency.
The Corporation shall also comply with those provisions
of Executive Order 11161, or a successor authority, that
governed the activities of the Federal Aviation Administra-
tion to which the Corporation succeeded pursuant to this
Act.
SEC. 302. COLLECTIVE BARGAINING.
(a) IN GENERAL.—Employees of the Corporation
shall have the right to form, join, or assist labor organiza-
tions, and to bargain collectively through representatives
of their own choosing. The Corporation, within three years
of the date of transfer, shall establish bargaining agree-
ments with recognized exclusive bargaining representa-
tives of the Corporation’s employees, consistent with the
provisions of this section. In the event agreements have
not been reached within that period, the Corporation or
the exclusive bargaining representatives may refer the un-
resolved matters to the Federal Mediation and Concilia-
tion Service under subsection (c) of this section.
(b) LIMITED APPLICABILITY
OF
THE NATIONAL
LABOR RELATIONS ACT.—The provisions of subchapter II
of chapter 7 (title 29, United States Code) of the National
Labor Relations Act shall govern—
(1) the rights of Corporation employees to orga-
nize and to be represented by labor organizations;
(2) the recognition of labor organizations, in-
cluding representational elections; and
(3) representation rights and duties.
(c) MEDIATION.—Upon the request of either party or
on its own motion, the Federal Mediation and Conciliation
Service may offer mediation assistance to labor organiza-
tions representing Corporation employees and the Cor-
poration prior to their submission of a negotiation impasse
before the Labor Resolution Board under subsection (d).
(d) LABOR RESOLUTION BOARD.—A Labor Resolu-
tion Board shall be established for the binding resolution
of bargaining impasses, in the event mediation is unsuc-
cessful. The Labor Resolution Board shall consist of three
neutral members who are not employees of the Corpora-
tion. One member shall be designated by the Corporation
and one member shall be designated by the recognized ex-
clusive bargaining representatives of the Corporation’s
employees. The third member, chosen from recommenda-
tions made by both the Corporation and the recognized
exclusive bargaining representatives of the Corporation’s
employees, shall be designated by the Director of the Fed-
eral Mediation and Conciliation Service. Each member of
the Board shall receive such compensation from the Cor-
poration as the Corporation may fix, together with nec-
essary traveling and subsistence expenses while serving as
a member.
(e) PROHIBITION ON STRIKES, WORK STOPPAGES,
AND SLOWDOWNS.—An individual may not accept or hold
a position with the Corporation if such person participates
in a strike, work stoppage, or slowdown against the Cor-
poration. Any labor organization representing Corporation
employees is prohibited from calling or participating in a
strike, work stoppage, or slowdown, or condoning any such
actions by failing to take immediate action to prevent or
stop such activity.
(f) LABOR MANAGEMENT REPORTING AND DISCLO-
SURE ACT.—The provisions of chapter 11 of title 29,
United States Code, apply to labor organizations that have
or are seeking to attain recognition under the authority
of this section, and to the organizations’ officers, agents,
shop stewards, other representatives, and members to the
extent to which the provisions would be applicable if the
Corporation were an employer under section 402 of title
29.
SEC. 303. INTERNATIONAL AGREEMENTS AND ACTIVITIES.
(a) CONSISTENCY WITH INTERNATIONAL OBLIGA-
TIONS AND LAWS OF OTHER COUNTRIES.—In exercising
and performing its powers and duties under this Act, the
Corporation shall do so consistently with any obligation
assumed by the United States in any treaty, convention,
or agreement that may be in force between the United
States and any foreign country or foreign countries or be-
tween the United States and an international organiza-
tion, and shall take into consideration any applicable laws
and requirements of foreign countries.
(b) INTERNATIONAL ACTIVITIES.—Subject to the
concurrence of the Secretaries of State and Transpor-
tation, and provided that the Corporation first determines
that activities under this section promote aviation safety
or United States aviation interests, the Corporation shall,
to the extent possible—
(1) enter into cooperative relationships with for-
eign entities to conduct, encourage, and promote the
development, modification, testing, evaluation, and
provision of systems, procedures, facilities, and de-
vices necessary to meet the needs for safe and effi-
cient air navigation and air traffic control of civil
aviation;
(2) train foreign nationals directly, or in con-
junction with any other United States Government
agency, or through any United States public or pri-
vate agency (including any State or municipal edu-
cational institution), or through any international
organization, in aeronautical and related subjects es-
sential to the orderly and safe operation of civil air-
craft; and
(3) provide operational and technical services to
foreign aviation authorities.
(c) REIMBURSEMENT
FOR ACTIVITIES.—The Cor-
poration may accept reimbursement for the full cost of
providing any training, operational, or technical services
performed under this section from the foreign entity re-
ceiving such services or from an international organization
on behalf of the foreign entity.
TITLE IV—AMENDMENTS TO FEDERAL
AVIATION LAWS
SEC. 401. ACCESS TO THE AIR TRAFFIC SYSTEM.
Section 40101(c) of title 49, United States Code, is
amended—
(1) by inserting ‘‘, including regulation of the
Corporation,’’ after ‘‘of this part’’; and
(2) by striking all after ‘‘shall consider’’ and in-
serting the following: ‘‘the requirements of national
defense and commercial and general aviation, and
the public right of freedom of transit through the
navigable airspace. For purposes of this subsection,
the public right of freedom of transit through the
navigable airspace includes reasonable access to air-
ports, airways, and airway facilities without regard
to category and class of aircraft.’’.
SEC. 402. DEFINITIONS.
Section 40102(a) of title 49, United States Code, is
amended as follows:
(1) In paragraph (4), by inserting ‘‘, including
any facility that is owned, leased, operated or main-
tained by the Corporation,’’ before ‘‘used’’;
(2) by redesignating paragraphs (12) through
(37) as paragraphs (13) through (38), respectively,
and by inserting after paragraph (11) the following:
‘‘(12) ‘Corporation’ means the United States
Air Traffic Service Corporation created by the
‘United States Air Traffic Service Corporation
Act’.’’; and
(3) by redesignating paragraphs (38) through
(41) as paragraphs (40) through (43), respectively,
and by adding after newly redesignated paragraph
(38) the following:
‘‘(39) ‘routine airspace action’ means any regu-
latory or non-regulatory action that assigns the use
of class D, E, or G airspace or involves Federal air-
ways and reporting points, as these terms are de-
fined in the Federal Aviation Regulations.’’.
SEC. 403. AIRSPACE CONTROL AND AIR TRAFFIC RULES.
Section 40103(b) of title 49, United States Code, is
amended by striking the subsection heading and para-
graphs (1) and (2) and inserting the following:
‘‘(b) USE OF AIRSPACE.—(1) The Administrator of
the Federal Aviation Administration shall develop safety
standards and policy for the use of the navigable airspace
and assign by regulation or order the safety structure for
use of airspace necessary to ensure the safety of aircraft.
‘‘(B) Effective on the date of transfer established
pursuant to the United States Air Traffic Service Cor-
poration Act and thereafter, the Administrator shall set
safety parameters for and regulate the Corporation, and
have safety oversight of the Corporation’s prescription of
air traffic orders, procedures or other directives on the
flight of aircraft (including procedures on safe altitudes)
for navigating, protecting, and identifying aircraft; pro-
tecting individuals and property on the ground; using the
navigable airspace efficiently, preventing collision between
aircraft and land or water vehicles, and between aircraft
and airborne objects.
SEC. 404. EMERGENCY POWERS.
Section 40106 of title 49, United States Code, is
amended—
(1) In subsection (a), by inserting ‘‘or by the
Corporation’’ following ‘‘section 40103(b) (1) and
(2) of this title’’;
(2) In subsection (a)(1), by inserting ‘‘and the
Corporation’’ after ‘‘Administration’’; and
(3) In subsection (a)(2), by inserting ‘‘and the
Corporation’’ after ‘‘Administrator’’.
SEC. 405. PRESIDENTIAL TRANSFERS IN TIME OF WAR.
Section 40107(b) of title 49, United States Code, is
amended to read as follows:
‘‘(b) DURING WAR.—If war occurs, the President by
Executive order may transfer to the Secretary of Defense
a duty, power, activity, or facility of the Administrator or
the Corporation. In making the transfer, the President
may transfer records, property, officers, and employees of
the Administration or the Corporation to the Department
of Defense. The Corporation shall develop, in consultation
with the Administrator and the Department of Defense
and other affected Government agencies, plans for the ef-
fective discharge of the responsibilities of the Administra-
tion and the Corporation in the event of war.’’.
SEC. 406. PREEMPTION OF PRICES, ROUTES AND SERVICE
REGULATION.
Section 41713(b)(1) of title 49, United States Code,
is amended by adding the following new sentence at the
end thereof: ‘‘The Corporation is also prohibited from un-
dertaking actions that would have the same effects as the
actions specified in this paragraph.’’.
SEC. 407. AIRWAY CAPITAL INVESTMENT PLAN; RESEARCH
AND DEVELOPMENT PLANNING.
Section 44501 of title 49, United States Code, is
amended as follows:
(1) In subsection (b), insert at the end of the
first sentence ‘‘that does not follow the date of
transfer established under the United States Air
Traffic Service Corporation Act’’.
(2) In subsection (c)(1), insert at the end the
following sentence: ‘‘In carrying out their respective
duties and responsibilities under this chapter and
under subtitle XI of this title, the Administrator and
the Corporation shall consult and cooperate concern-
ing research and development activities related to
the use of navigable airspace, air traffic control, and
air navigation, in order to avoid unnecessary dupli-
cation of their research and development efforts.’’.
SEC. 408. AVIATION FACILITIES.
Sections 44502(a)(1) and 44502(f) of title 49, United
States Code, are amended by inserting ‘‘Prior to the date
of transfer established under the United States Air Traffic
Service Corporation Act,’’ at the beginning of each para-
graph.
SEC. 409. REGULATION OF THE UNITED STATES AIR TRAF-
FIC SERVICE CORPORATION.
Title 49, United States Code, is amended by inserting
after section 44723 the following:
‘‘§ 44724. Oversight of the United States Air Traffic
Service Corporation
‘‘(a) OVERSIGHT OF THE UNITED STATES AIR TRAF-
FIC SERVICE CORPORATION.—The Administrator of the
Federal Aviation Administration is authorized and di-
rected to prescribe by regulation or otherwise, minimum
standards and necessary requirements to assure the high-
est level of aviation safety in the public interest, and to
insure that national defense needs are met, in actions
taken by the Corporation. The Administration shall con-
tinue to prescribe long-range policy and planning and set
safety standards that regulate the Corporation. The Cor-
poration shall act within the parameters of the regulations
prescribed by the Federal Aviation Administration and the
authority of this Act to meet its mission to control air
traffic in a safe and efficient manner.
‘‘(b) COORDINATION.—To the greatest extent pos-
sible, the Administrator shall encourage cooperation and
coordination between the Administration and the Corpora-
tion. The Administrator shall take appropriate action
promptly on recommendations made by the Corporation.
‘‘(c) ADMINISTRATOR ACTION.—The Administrator,
pursuant to authorities under this subtitle, may direct the
Corporation to cease any action that the Administrator de-
termines may compromise aviation safety or security or
the national defense, or to undertake any action to assure
aviation safety or security or the national defense. Where
the Corporation has authority to prescribe orders, direc-
tives, actions, or assignments, the Administrator may di-
rect the Corporation to withdraw or revise an order, proce-
dure, directive, action, or assignment for reasons of safety,
security or the national defense. The Administrator may
only modify or revoke an action of the Corporation when
required by the safety, security, or national defense inter-
est or interest of the public. The Administrator’s authority
under this subsection shall not be delegated.
‘‘(d) ENFORCEMENT OF CORPORATION RULES, REG-
ULATIONS, ORDERS AND OTHER DIRECTIVES.—The Cor-
poration shall refer for action by the Administration, pur-
suant to subpart IV of this part, complaints against any
person for violations of orders, procedures, and other di-
rectives issued by the Corporation or by the Administra-
tion pursuant to the authority of this chapter. The Admin-
istrator shall take appropriate action promptly on com-
plaints referred by the Corporation. The Corporation shall
provide necessary assistance in any enforcement action
taken under this subsection. This subsection shall not be
construed to limit the authority of the Administrator to
undertake enforcement actions under this part upon the
Administrator’s initiative.’’.
TITLE V—OTHER APPLICABLE STATUTES
SEC. 501. EMPLOYEE MANAGEMENT AND EXEMPTIONS
FROM TITLE 5, UNITED STATES CODE.
(a) ESTABLISHMENT OF EMPLOYEE MANAGEMENT
SYSTEM.—The Corporation shall establish a comprehen-
sive system for the management, compensation, and ad-
vancement of Corporation employees that best serves the
needs of airspace management in the United States.
(b) EXCLUSIVE AUTHORITY TO SET EMPLOYMENT
LEVELS AND PAY.—The Chief Executive Officer has the
exclusive authority, subject to the provisions of this section
and section 302, to fix total compensation, including in-
centives and benefits, for all employees of the Corporation
other than the Chief Executive Officer. The Chief Execu-
tive Officer shall determine the appropriate level of staff-
ing and appoint such numbers of officers and employees
as needed to conduct the business of the corporation with-
out regard to limits imposed by Federal bodies. The Chief
Executive Officer has the exclusive authority to take all
personnel actions, including but not limited to, appoint-
ments, assignments, reassignments, promotions, demo-
tions, and terminations. Personnel actions shall be consist-
ent with the principles of fairness and due process. The
Corporation shall fulfill the obligations of statutes govern-
ing use of military personnel to ensure the corporation is
properly advised on requirements of the armed forces and
that national defense interests are safeguarded properly.
The Corporation is authorized to conduct background in-
vestigations, including accessing records of the Federal
Bureau of Investigation and other law enforcement agen-
cies, to determine suitability for employment. Executive
Order 10450 shall govern the granting of access to Na-
tional Security information.
(c) LIMITED APPLICABILITY OF TITLE 5, UNITED
STATES CODE.—(1) Title 5, United States Code, applies
to the Corporation and its employees and activities only
to the extent set forth in this section and section 601. Ex-
cept as otherwise provided in this Act, employees of the
Corporation qualify as officers and employees of the
United States.
(2)(A) During the three-year period that follows the
date of transfer, chapters 87 and 89 (Health and Life In-
surance) of title 5, United States Code, apply to the Cor-
poration. An employee of the Corporation, including any
employee hired during the three-year period, shall be cov-
ered under the provisions of chapters 87 and 89 of title
5, but only during this period. The Corporation shall make
such payments as are required under these chapters dur-
ing this period.
(B) During the three-year period that follows the
date of transfer, the Corporation shall negotiate replace-
ment health and life insurance systems that apply to its
employees subsequently and that, as a minimum, provide
not less than one life insurance and three health insurance
programs that are comparable with respect to employee
premium cost and coverage to the Federal health and life
insurance programs available to employees during the
three-year period.
(3) Any Federal employee who transfers to the Cor-
poration under section 601 and who on the day before the
date of transfer is subject to subchapter III of chapter
83 of title 5 (Retirement), United States Code, or chapter
84 (Federal Employees’ Retirement System) of such title
shall, so long as continually employed by the Corporation
without a break in service, continue to be subject to such
subchapter or chapter, as the case may be. Employment
by the Corporation without a break in continuity of service
shall be considered to be employment by the United States
Government for purposes of such subchapter and chapter.
The Corporation shall be the employing agency for pur-
poses of section 602 and shall contribute to the Civil Serv-
ice Retirement and Disability Fund such sums as are re-
quired by section 602.
(4) As rapidly as practical following the date of trans-
fer, the Corporation shall negotiate a retirement benefits
system that applies to employees hired following the date
of transfer. Employees employed by the Corporation as of
that date may elect, within six months of the establish-
ment of such new systems, to retain coverage under title
5 or transfer to the new systems.
(5) Chapter 81 of title 5 (Compensation for Work In-
jury) applies to the Corporation. An employee of the Cor-
poration, including any employee hired after the date of
transfer, shall be covered under the provisions of chapter
81.
(6) An employee, as defined in section 2105 of title
5, United States Code, who transfers to the Corporation
other than under section 601 of this Act and without a
break in service is entitled to retain coverage, rights, and
benefits under chapters 81, 83, 84, 87, and 89 of title
5, United States Code (to the extent otherwise provided
by this subsection), if necessary deductions and Corpora-
tion contributions are deposited in the systems’ funds in
accordance with section 602, as applicable, and if such em-
ployee so elects within six months of transfer to the Cor-
poration.
(7) Sections 7342, 7353, and 7351 of title 5, United
States Code, and Appendices 4 (Executive Personnel Fi-
nancial Disclosure Requirements) and 6 (Financial Disclo-
sure Requirements of Federal Personnel) of title 5, United
States Code, apply to officers and employees of the Cor-
poration.
(8) The Veterans Preference Act of 1944, as amend-
ed (5 U.S.C. 3308–3320), applies to the Corporation.
(d) CIVIL RIGHTS PROTECTIONS IN EMPLOYMENT.—
The provisions of section 2000e–16 of title 42, United
States Code (Employment by Federal Government) apply
to the employees of the Corporation.
(e) COLLECTIVE BARGAINING.—The provisions of the
Federal Service Labor-Management Relations Statute,
chapter 71 of title 5, United States Code, shall not apply
except as provided in section 601 of this Act.
SEC. 502. APPLICABILITY OF GOVERNMENT CORPORATION
CONTROL ACT.
(a) Section 9101(3) of title 31, United States Code,
is amended by adding after subparagraph (N) the follow-
ing new subparagraph:
‘‘(O) the United States Air Traffic Service
Corporation.’’.
(b) Notwithstanding subsection (a), the following pro-
visions of chapter 91 of title 31, United States Code, shall
not apply to the Corporation:
(1) Section 9102 (relating to establishing and
acquiring corporations), except that any subsidiaries
or affiliates of the Corporation shall be subject to
the debt limitation contained in section 208 of this
Act.
(2) Section 9103(c) (relating to budgets of
wholly owned Government corporations), except that
the budget submitted by the Corporation in accord-
ance with section 9103(a) shall be submitted by the
President without change as part of the budget sub-
mitted to Congress under section 1105 of title 31,
United States Code.
(3) Sections 9105–9106 (relating to audits), ex-
cept that the Corporation shall prepare an annual fi-
nancial statements audit pursuant to section 9105.
(4) Section 9107 (relating to accounts).
(5) Section 9108 (relating to obligations); ex-
cept that the Secretary of the Treasury shall pre-
scribe the timing of issuance of obligations to the
public.
(6) Section 9109 (relating to exclusion of a
wholly owned Government Corporation from the
Act).
(7) Section 9110 (relating to standards for de-
pository institutions holding securities of a Govern-
ment-sponsored corporation for customers).
SEC. 503. EXTENSION AND AMENDMENT OF AVIATION-RE-
LATED TAXES AND TRUST FUND SPENDING
AUTHORITY.
(a) AVIATION FUEL USED
IN NON-COMMERCIAL
AVIATION.—Section 4091(b)(3)(A) of the Internal Reve-
nue Code of 1986 (26 U.S.C. 4091(b)(3)(A)) is amended
by striking ‘‘January 1, 1996’’ and inserting in lieu there-
of ‘‘January 1, 1999’’.
(b) GASOLINE USED
IN NON-COMMERCIAL AVIA-
TION.—Section 4041(c)(5) of the Internal Revenue Code
of 1986 (26 U.S.C. 4041(c)(5)) is amended by striking
‘‘December 31, 1995’’ and inserting in lieu thereof ‘‘De-
cember 31, 1998’’.
(c) TRANSPORTATION OF PASSENGERS BY AIR.—(1)
Section 4261 of the Internal Revenue Code of 1986 is
amended by striking ‘‘a tax equal to 10 percent of the
amount so paid’’ each place it appears and inserting in
lieu thereof ‘‘a tax equal to 1.5 percent of the amount so
paid, except that the tax imposed for transportation begin-
ning before January 1, 1997, shall be equal to 10 percent
of the amount so paid’’.
(2) Section 4261(c) of the Internal Revenue Code of
1986 is amended by striking ‘‘a tax of $6’’ and inserting
in lieu thereof ‘‘a tax of $.90, except that the tax imposed
for transportation beginning before January 1, 1997, shall
be a tax of $6,’’.
(3) Section 4261(g) of the Internal Revenue Code of
1986 is amended by striking ‘‘January 1, 1996’’ and in-
serting in lieu thereof ‘‘January 1, 1999’’.
(d) TRANSPORTATION OF PROPERTY BY AIR.—(1)
Section 4271 of the Internal Revenue Code of 1986 is
amended by striking ‘‘a tax equal to 6.25 percent of the
amount so paid’’ and inserting in lieu thereof ‘‘a tax equal
to .95 percent of the amount so paid, except that the tax
imposed for transportation beginning before January 1,
1997, shall be equal to 6.25 percent of the amount so
paid’’.
(2) Section 4271(d) of the Internal Revenue Code of
1986 is amended by striking ‘‘January 1, 1996’’ and in-
serting in lieu thereof ‘‘January 1, 1999’’.
(e) Section 9502(b) of the Trust Fund Code of 1981
is amended—
(1) by striking ‘‘January 1, 1996’’ each place
it appears and inserting in lieu thereof ‘‘January 1,
1999’’;
under this subsection to the extent prior estimates
were in excess of or less than the amount allowed.’’.
SEC. 505. EXCLUSION OF THE CORPORATION FROM THE
BUDGET AND BUDGET ENFORCEMENT.
(a) Any increases in direct spending or reduction in
receipts authorized by this Act shall be exempt from the
requirements of section 252 of the Balanced Budget and
Emergency Deficit Control Act of 1985.
(b) Any transfer under section 9502(d)(7) of the
Trust Fund code of 1981, as amended by section 504 of
this Act, shall be exempt from the requirements of section
251 of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985.
(c) Section 255(g)(1)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by in-
serting after ‘‘Tennessee Valley Authority, except non-
power programs and activities (64–4110–0–3–999);’’ the
following: ‘‘United States Air Traffic Service Corpora-
tion;’’.
(d) Notwithstanding any other provision of law, the
receipts and disbursements of the Corporation shall not
be counted as new budget authority, outlays, receipts, or
deficit or surplus for purposes of—
(1) the budget of the United States Govern-
ment as submitted by the President;
(2) the congressional budget; or
(3) the Balanced Budget and Emergency Defi-
cit Control Act of 1985.
SEC. 506. DISCRETIONARY SPENDING LIMITS.
(a) Upon enactment of this Act, the discretionary
spending limits set forth in section 601(a)(2) of the Con-
gressional Budget Act of 1974 (2 U.S.C. 665(a)(2)) (as
adjusted in conformance with section 251 of the Balanced
Budget and Emergency Deficit Control Act of 1985) for
fiscal years 1997 through 2000 are reduced by the follow-
ing amounts:
(1) For fiscal year 1997, for the discretionary
category: $6,405,000,000 in new budget authority
and $4,190,000,000 in outlays.
(2) For fiscal year 1998; for the discretionary
category: $6,870,000,000 in new budget authority
and $5,586,000,000 in outlays.
(b) For fiscal year 1999, the comparable amount for
budgetary purposes shall be deemed to be $7,449,000,000
in new budget authority and $6,542,000,000 in outlays.
For fiscal year 2000, the comparable amount for budg-
etary purposes shall be deemed to be $7,828,000,000 in
new budget authority and $7,148,000,000 in outlays.
VI—TRANSITION PROVISIONS
SEC. 601. TRANSFER OF FEDERAL PERSONNEL TO THE
CORPORATION.
(a) TRANSFER OF EMPLOYEES TO THE CORPORA-
TION.—Jointly, the Administrator and the Chief Execu-
tive Officer shall determine which functions and which em-
ployees are transferred to the Corporation.
(b) CONTINUATION
OF
PERSONNEL
SYSTEMS.—
Compensation, benefits, and other terms and conditions
of employment that exist for employees and officers of the
Federal Aviation Administration on the date of transfer
shall continue to apply to officers and employees of the
Corporation unless and until changed in accordance with
section 501 of this Act.
(c) EMPLOYEE PROTECTIONS.—Employment rights,
wages, and benefits of employees transferred to the Cor-
poration shall not be adversely affected, except for cause,
during the three-year period commencing on the date of
transfer. Thereafter, employee rights, wages and benefits
will be governed by the provisions of section 501 of this
Act.
(d) LABOR AGREEMENTS.—(1) In the interest of ef-
fective labor-management relationships, the Corporation
shall adopt all labor agreements that are in effect on the
date of transfer and shall accord full recognition to labor
organizations representing Corporation employees to the
extent that those labor organizations had been accorded
exclusive representative status for those employees under
sections 7111 and 7112 of title 5, United States Code,
prior to the date of transfer. Such labor agreements shall
remain in effect for three years from the date of transfer,
unless the agreements provide for a shorter duration or
the Corporation and the exclusive representative agree to
the contrary before the expiration of that three-year pe-
riod. For the period such labor agreements are in effect,
the parties will be governed by the terms and conditions
of those agreements and by the applicable provisions of
chapter 71 of title 5, United States Code, and will file
any unfair labor practice charges, negotiability appeals,
exceptions to arbitration awards and requests for assist-
ance to solve impasses that do not arise from the negotia-
tion of a new agreement with the appropriate component
of the Federal Labor Relations Authority.
(2) Disputes arising from the negotiation of a new
agreement will be resolved by the National Labor Rela-
tions Board or the Labor Resolution Board, as appro-
priate under section 302 of this Act.
(3) As of the date of transfer, determinations con-
cerning the appropriateness of bargaining units, or the
bargaining unit status of Corporation employees, or the
exclusive representation status of labor organizations rep-
resenting Corporation employees will be resolved by the
National Labor Relations Board under section 302 of this
Act.
(4) Any proceedings under section 7117, 7118, or
7122 of title 5, United States Code, pending before any
component of the Federal Labor Relations Authority when
the parties cease to be governed by the applicable provi-
sions of chapter 71 of title 5 will be decided and, if nec-
essary, defended and enforced by the Federal Labor Rela-
tions Authority. Any other matters involving the Corpora-
tion that are pending before any component of the Federal
Labor Relations Authority when the parties cease to be
governed by the applicable provisions of chapter 71 of title
5 will be transferred by the appropriate component of the
Authority to the National Labor Relations Board or the
Labor Resolution Board, as appropriate under section 302
of this Act.
SEC. 602. PAYMENTS FOR EMPLOYEE BENEFITS.
(a) The Corporation shall make payments as are
required by section 8147 of title 5, United States Code.
(b) The Corporation shall pay to the Civil Service
Retirement and Disability Fund—
(1) such employee deductions and agency con-
tributions as are required by sections 8334, 8422,
and 8423 of title 5, United States Code; and
(2) such additional agency contributions as are
determined necessary by the Office of Personnel
Management to pay, in combination with the sums
under paragraph (1), the normal cost (determined
using dynamic assumptions) of retirement benefits
for the employee of the Corporation who are subject
to subchapter III of chapter 83 of title 5, United
States Code.
(c) The Corporation shall pay to the Thrift Savings
Fund such employee and agency contributions as are re-
quired by section 8432 of title 5, United States Code.
SEC. 603. TRANSFER OF FACILITIES TO THE CORPORATION.
(a) IN GENERAL.—(1) The Administrator is author-
ized and directed to transfer, on the date of transfer or
as soon as practical thereafter, to the Corporation without
charge all right, title, and interest in, and the use, posses-
sion, and control of, real and personal property under Fed-
eral Aviation Administration jurisdiction, including fre-
quency licenses, patents, and software rights, of the
United States that are necessary and appropriate for the
functions being transferred to the Corporation. However,
the Administrator shall not transfer the Atlantic City
Technical Center. The Corporation shall contract for serv-
ices provided at this facility on the date of transfer that
are associated with transferring functions, at a minimum
for a period of one year following transfer at not less than
the level of activity on the date of transfer, unless that
level for a particular activity is unjustified.
(2) The Secretary of Defense is authorized and di-
rected to transfer to the Corporation without charge all
right, title, and interest in, and the use, possession, and
control of, real and personal property of the Department
of Defense located at a military installation being closed
or realigned if that real and personal property is used im-
mediately before the closure or realignment decision as a
functional part of the air traffic system being transferred
to the Corporation by this Act.
(b) AIR TRAFFIC CONTROL OR NAVIGATION FACILI-
TIES PLACED AT AIRPORTS.—The authority of the Ad-
ministrator pursuant to section 47107(12) of title 49,
United States Code, to locate existing and future air traf-
fic control or navigation facilities at airports without cost
shall continue to be available to be exercised as a condition
of federal financial assistance on behalf of the Corpora-
tion.
SEC. 604. SAVINGS PROVISION.
(a) CONTINUED EFFECTIVENESS OF DIRECTIVES.—
All orders, determinations, rules, regulations, permits,
contracts, leases, certificates, licenses, agreements for real
and personal property, and privileges that—
(1) have been issued, made, granted, or allowed
to become effective by the President of the United
States, the Secretary, the Administrator, any Fed-
eral agency or official thereof, or by a court of com-
petent jurisdiction, in the performance of functions
which are transferred by this Act; and
(2) are in effect on the date of transfer, shall
continue in effect according to their terms until
modified, terminated, superseded, set aside, or re-
voked in accordance with law by the President of the
United States, the Administrator, the Corporation, a
court of competent jurisdiction, or by operation of
law.
(b) CONTINUED EFFECTIVENESS OF PENDING AC-
TIONS.—(1) The provisions of this Act shall not affect any
proceedings, including notices of proposed rulemaking, or
any application for any license, permit, certificate, or fi-
nancial assistance pending on the date of transfer before
the Department of Transportation or the Federal Aviation
Administration, or any officer thereof with respect to func-
tions transferred by this Act; but such proceedings or ap-
plications, to the extent that they relate to functions trans-
ferred, shall be continued in accord with transition regula-
tions promulgated by the Corporation under the authority
of this section. Orders issued in any such proceedings shall
continue in effect until modified, terminated, superseded,
or revoked by the Corporation, by a court of competent
jurisdiction, or by operation of law. Nothing in this sub-
section prohibits the discontinuance or modification of any
such proceeding under the same terms and conditions and
to the same extent that such proceeding could have been
discontinued or modified if this Act had not been enacted.
(2) The Secretary, the Administrator, and the Cor-
poration are authorized to issue transition regulations pro-
viding for the orderly transfer of proceedings and other-
wise to accomplish the orderly transfer of functions, per-
sonnel and property under this Act.
(c) CONTINUED EFFECTIVENESS OF ADMINISTRA-
TIVE AND JUDICIAL ACTIONS.—No cause of action by or
against the Department of Transportation or the Federal
Aviation Administration with respect to functions trans-
ferred by this Act, or by or against any officer thereof
in the official’s capacity, shall abate by reason of the en-
actment of this Act. Causes of action and actions with re-
spect to a function or office transferred by this Act, or
other proceedings may be asserted by or against the
United States or an official of the Corporation, as may
be appropriate, and, in an action pending when this Act
takes effect, the court may at any time, on its own motion
or that of any party, enter an order which will give effect
to the provisions of this subsection.
(d) SUBSTITUTION OR ADDITION OF PARTIES TO JU-
DICIAL ACTIONS.—If, on the date of transfer, the Depart-
ment of Transportation or the Federal Aviation Adminis-
tration, or any officer thereof in the official’s capacity, is
a party to an action and, under this Act, specific func-
tional responsibility for that action of the Department,
Administration, or officer is transferred to the Corpora-
tion, then such action shall be continued with the Chief
Executive Officer of the Corporation substituted or added
as a party.
(e) CONTINUED
JURISDICTION
OVER
ACTIONS
TRANSFERRED.—Orders and actions of the Corporation
in the exercise of functions transferred by this Act shall
be subject to judicial review to the same extent and in
the same manner as if such orders and actions had been
by the Department of Transportation or the Federal Avia-
tion Administration, or any office or officer thereof, in the
exercise of such functions immediately preceding their
transfer.
(f) AIR TRAFFIC SERVICE LIABILITIES AND OBLIGA-
TIONS.—The Corporation shall assume all obligations
(tangible and incorporeal, present and executory) associ-
ated with the functions transferred under this Act on the
date of transfer, including leases, permits, licenses, con-
tracts, agreements, claims, tariffs, accounts receivable,
and accounts payable. All claims and actions arising in
tort pending on the date of transfer and arising out of
the alleged acts and omissions of employees who transfer
to the Corporation shall remain liabilities of the United
States. The Secretary shall assure that, before the date
of transfer, the Corporation has agreed to allow represent-
atives of the Secretary and the Attorney General such ac-
cess as they may require to employees and records for all
purposes relating to the handling of such claims.
(g) DEPARTMENT OF DEFENSE AGREEMENTS.—All
national, regional, and facility level agreements, under-
standings, and contracts between the Department of De-
fense and that portion of Federal Aviation Administration
transferring to the Corporation will remain in effect after
the date of transfer.
SEC. 605. ADMINISTRATIVE AND BUDGETARY TRANSITION.
(a) USE OF RESOURCES FOR TRANSITION.—For the
purpose of facilitating the transfers mandated by this Act,
the Secretary of Transportation, the Administrator of the
Federal Aviation Administration and the Chief Executive
Officer of Corporation are authorized to utilize funds pre-
viously appropriated to the Department of Transportation
or the Federal Aviation Administration for the conduct of
the functions being transferred by this Act, subject to ac-
counting.
(b) ASSISTANCE OF THE OFFICE OF MANAGEMENT
AND BUDGET.—In order to facilitate the transfers made
by this Act, the Director of the Office of Management and
Budget is authorized and directed to make such deter-
minations as may be necessary to resolve disputes between
the Secretary of Transportation, the Administrator of the
Federal Aviation Administration, and the Corporation re-
garding the division of personnel, assets, liabilities, con-
tracts, property, records, and unexpended balances of ap-
propriations, authorizations, allocations, and other funds
held, used, arising from, available to or to be made avail-
able in connection with the transfer.
(c) TERMINATION
OF TRANSITION AUTHORITY.—
The authorization under this section shall terminate upon
completion of the transfer.
SEC. 606. REFERENCE.
With respect to any functions transferred by this Act
and exercised after the date of transfer, reference in any
other Federal law or executive order to the Secretary or
the Administrator or to the Department of Transportation
or the Federal Aviation Administration or any officer or
office thereof, shall be considered to refer to the Corpora-
tion or the Chief Executive Officer of the Corporation, as
appropriate.
SEC. 607. SEPARABILITY.
If a provision of this Act or its application to any
person or circumstance is held invalid, neither the remain-
der of this Act nor the application of the provision to other
persons or circumstances shall be affected.
SEC. 608. EFFECTIVE DATE.
Except as otherwise specified, this Act takes effect
on the date of enactment.
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