Airport Improvement Program Temporary Extension Act of 1994
PL 103-260 (S.2024), enacted 05/26/1994

108 STAT. 698 
PUBLIC LAW 103-260—MAY 26, 1994 
May 26, 1994 
[S. 2024] 
Airport 
Improvement 
Program 
Temporary 
Extension Act of 
1994. 
49 u s e app. 
2201 note. 
Public Law 103-260 
103d Congress 
An Act 
To provide temporary obligational authority for the airport improvement program 
and to provide for certain airport fees to be maintained at existing levels for 
up to 60 days, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of 
America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the 
Temporary Extension Act of 1994". 
''Airport Improvement Program 
TITLE I—AIRPORT IMPROVEMENT 
PROGRAM 
SEC. 101. AIRPORT IMPROVEMENT PROGRAM AUTHORIZATION. 
(a) AUTHORIZATION.—The second sentence of section 505(a) of 
the Airport and Airway Improvement Act of 1982 (49 App. U.S.C. 
2204(a)) is amended— 
(1) by striking "and" after "1992,"; and 
(2) by inserting ", and $15,413,157,000 for fiscal years 
ending before October 1, 1994" before the period at the end. 
(b) OBLIGATIONAL AUTHORITY,—Section 505(b)(1) of the Airport 
and Airway Improvement Act of 1982 (49 App. U.S.C. 2204(b)(1)) 
is amended by striking "September 30, 1993" and inserting "June 
30,1994". 
SEC. 102. APPORTIONMENT OF FUNDS. 
Section 507(b)(3)(A) of the Airport and Airway Improvement 
Act of 1982 (49 App. U.S.C. 2206(b)(3)(A)) is amended— 
(1) by striking "or reducing the amoimt authorized or" 
and inserting "the amount"; 
(2) by inserting "to less than $1,900,000,000" after "to 
be obligated"; and 
(3) by striking "limited or reduced". 
SEC. 103. MINIMUM AMOUNT FOR PRIMARY AIRPORTS. 
Section 507(b)(1) of the Airport and Airway Improvement Act 
of 1982 (49 App. U.S.C. 2206(b)(1)) is amended by striking 
"$400,000" and inserting "$500,000". 
SEC. 104. DISCRETIONARY FUND. 
(a) MINIMUM AMOUNT TO BE CREDITED.—Section 507(c) of the 
Airport and Airway Improvement Act of 1982 (49 App. U.S.C. 
PUBLIC LAW 103-260—MAY 26, 1994 
108 STAT. 699 
2206(c)) is amended by adding at the end the follo^ving new para-
graph: 
"(5) SPECIAL RULE.—(A) In any fiscal year not less than 
$325,000,000 of the amount made available under section 505(a) 
shall be credited to the discretionary fiind established by para-
graph (1), and such $325,000,000 shall be exclusive of amounts 
that have been apportioned in a prior year under this section 
and which remain available for obligation. 
"(B) In any fiscal year in which the amount credited to 
the discretionary fund pursuant to paragraph (1) is less than 
$325,000,000, the total amount calculated under subparagraph 
(C) of this paragraph shall be reduced by an amount which, 
when credited to the discretionary fund, will, together with 
the amount credited pursuant 
to paragraph 
(1), equal 
$325,000,000. 
"(C) The total amount, for any fiscal year, that is subject 
to reduction pursuant to subparagraph (B) shall be the sum 
of— 
"(i) the amount determined under subsection (a)(1) 
"(ii) the amount determined under subsection (a)(2) 
"(iii) the amount determined under subsection (a)(3) 
"(iv) the amount determined under section 508(d)(1) 
"(v) the amount determined under section 508(d)(2) 
"(vi) the amount determined under section 508(d)(3) 
"(vii) the amount determined under section 508(d)(4) 
and 
"(viii) the amount determined under section 508(d)(5). 
"(D) To accomplish a reduction pursuant to subparagraph 
(B), each of the amounts described in subparagraphs (C)(i) 
through (C)(viii), respectively, shall be reduced by an equal 
percentage.". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall take effect on July 1, 1994. 
SEC. 105. USE OF APPORTIONED AND DISCRETIONARY FUNDS. 
Section 508(d) of the Airport and Airway Improvement Act 
of 1982 (49 App. U.S.C. 2207(d)) is amended— 
(1) in paragraph (1), by striking "10" and inserting "5"; 
(2) in peiragraph (3), by striking "2.5" wherever it appears 
and inserting "1.5"; and 
(3) in paragraph (4), by striking "V2" and inserting "%". 
SEC. 106. REIMBURSEMENT FOR PAST EXPENDITURES. 
Section 513(a)(2) of the Airport and Airway Improvement Act 
of 1982 (49 App. U.S.C. 2212(a)(2)) is amended— 
(1) by striking "or" at the end of subparagraph (A); 
(2) by inserting "or" after the semicolon at the end of 
subparagraph (B); and 
(3) by inserting after subparagraph (B) the following: 
"(C)(i) it was incurred— 
"(I) during fiscal year 1994; 
"(II) before execution of a grant agreement with respect 
to the project but in accordance with an airport layout 
plan approved by the Secretary and in accordance with 
all applicable statutory and administrative requirements 
that would have been applicable to the project if the grant 
agreement had been executed; and 
49 use app. 
Ii206 note. 
108 STAT. 700 
PUBLIC LAW 103-260—MAY 26, 1994 
"(III) for work related to a project for which a grant 
agreement was previously executed during fiscal year 1994; 
and 
"(ii) its Federal share is only paid with sums apportioned 
under sections 507(a)(1) and 507(a)(2).". 
SEC. 107. TERMINAL DEVELOPMENT. 
Section 513(b)(2) of the Airport and Airway Improvement Act 
of 1982 (49 App. U.S.C. 2212(b)(2)) is amended— 
(1) in the second sentence— 
(A) by inserting after "may be used" the following: 
", subject to the approval of the Secretary, (A)"; and 
(B) by striking the period at the end and inserting 
the following: ", and (B) by the sponsor of a reliever airport 
j 
for the types of project costs allowable under paragraph 
I 
(1) of this subsection, including project costs allowable for 
i 
a commercial service airport which annually has .05 per-
cent or less of the total enplanements in the United 
States."; and 
(2) by adding at the end the following: "All or any portion 
of the sums to be distributed at the discretion of the Secretary 
under sections 507(c) and 507(d) for any fiscal year may be 
distributed for use by primary airports each of which annually 
has .05 percent or less of the total enplanements in the United 
States for project costs allowable under paragraph (1) of this 
subsection.". 
SEC. 108. EXPENDITURES FROM AIRPORT AND AIRWAY TRUST FUND. 
26 use 9502. 
Section 9502(d)(1)(A) of the Internal Revenue Code of 1986 
(relating to expenditures from Airport and Airway Trust Fund) 
is amended by striking "(as such Acts were in effect on the date 
of the enactment of the Airport and Airway Safety, Capacity, Noise 
Improvement, and Intermodal Transportation Act of 1992)" and 
inserting "or the Airport Improvement Program Temporary Exten-
sion Act of 1994 (as such Acts were in effect on the date of the 
enactment of the Airport Improvement Program Temporary Exten-
sion Act of 1994)". 
SEC. 109. UPWARD ADJUSTMENTS. 
(a) IN GENERAL.—^The second sentence of section 505(b)(1) of 
the Airport and Airway Improvement Act of 1982 (49 App. U.S.C. 
2204(b)(1)) is further amended by— 
(1) inserting "(A)" before "Apportioned"; and 
(2) inserting before the period at the end "; and (B) funds 
which have been recovered by the United States from grants 
made under this title if such funds are obligated only for 
increases under sections 512(b)(2) and 512(b)(3) of this title 
in the maximum obligation of the United States for any other 
grant made under this title". 
^^ us^^PP 
(b) RETROACTIVE EFFECTIVE DATE.—The amendment made by 
Z
Z
0
4 note. 
subsection (a) shall take effect October 1, 1993. 
PUBLIC LAW 103-260—MAY 26, 1994 
108 STAT. 701 
TITLE II—AIRPORT-AIR CARRIER 
DISPUTES REGARDING AIRPORT FEES 
SEC. 201. EMERGENCY AUTHORITY TO FREEZE CERTAIN AIRPORT 
FEES. 
(a) COMPLAINT BY AIR CARRIER.— 
(1) FILING.—^An air carrier may file prior to June 30, 1994, 
with the Secretary a written complaint alleging that any 
increased fee imposed upon such air carrier by the owner 
or operator of an airport is not reasonable. The air carrier 
shall simultaneously file with the Secretary proof that a copy 
of the complaint has been served on the owner or operator 
of the airport. 
(2) OPPORTUNITY TO RESPOND.—Before issuing an order 
under subsection (b), the Secretary shall provide the owner 
or operator of the airport an opportunity to respond to the 
filed complaint. 
(3) FRIVOLOUS COMPLAINT.—If the Secretary determines 
that a complaint is frivolous, the Secretary may refuse to accept 
the complsdnt for filing. 
(b) ORDER BY THE SECRETARY.— 
(1) IN GENERAL.—Except as provided by paragraph (2), 
the Secretary shall issue, within 7 days after the filing of 
a complaint in accordance with subsection (a), an order prohibit-
ing the owner or operator of the airport from collecting the 
increased portion of the fee that is the subject of the complaint, 
unless the Secretary makes a preliminary determination that 
the increased fee is reasonable. Subject to subsection (d), the 
order shall cease to be effective on June 30, 1994. 
(2) LIMITATION.—^The Secretary shall not issue an order 
under this subsection prohibiting the collection of any portion 
of a fee for which the Secretary's informal mediation assistance 
was requested on March 21, 1994. 
(c) OPPORTUNITY TO COMMENT AND FURNISH RELATED MATE-
RIAL.—^Within a period prescribed by the Secretary, the owner or 
operator of the airport and any affected air carrier may submit 
comments to the Secretary on a complaint filed under subsection 
(a) and furnish to the Secretary any related documents or other 
material. 
(d) ACTION ON COMPLAINT.—Based on comments and material 
provided under subsection (c), the Secretary may take appropriate 
action on the complaint, including termination or other modification 
of any order issued under subsection (b). 
(e) APPLICABILITY.—This section does not apply to a fee imposed 
pursuant to a written agreement binding on air carriers using 
the facilities of an airport. 
(f) EFFECT ON EXISTING AGREEMENTS.—^Nothing in this section 
shall adversely affect any existing written agreement between an 
air carrier and the owner or operator of an airport. 
SEC. 202. DEFINITIONS. 
For purposes of this title— 
(1) the term "fee" means any rate, rental charge, landing 
fee, or other service charge for the use of airport facilities; 
and 
108 STAT. 702 
PUBLIC LAW 103-260—MAY 26, 1994 
(2) the term "Secretary" means the Secretary of Transpor-
tation. 
TITLE III—REFORM OF AIR TRAFFIC 
CONTROL SYSTEM 
SEC. 301. AIR TRAFFIC CONTROL SYSTEM. 
(a) STUDY.—^The Secretary of Transportation shall undertake 
a study of management, regulatory, and legislative reforms which 
would enable the air traffic control system of the Federal Aviation 
Administration to provide better services to users and reduce the 
costs of providing services, without reducing the safety of the system 
or the availability of the system to all categories of users and 
without changing the basic organizational structure under which 
the system is part of the Federal Aviation Administration. 
(b) COMPONENTS.—^The study to be conducted under subsection 
(a) shall include the following: 
(1) Evaluation of reforms which would streamline procure-
ment, enhance the ability to attract and retain adequate st£iff 
at hard-to-staff faciUties, simplify the personnel process, provide 
funding stability, ensure continuity of leadership, and reduce 
the incidence of unnecessarily detailed management oversight. 
(2) Identification of any existing laws or regulations govern-
ing procurement or personnel wmch are having an adverse 
effect on the operation or modernization of the air traffic control 
system. 
(3) Evaluation of a range of possible reforms and the advan-
tages and disadvantages of each possible reform. 
(4) Comparison of the advantages and disadvantages of 
each possible reform with the comparable advantages and dis-
advantages to be achieved under any proposal of the Secretary 
of Transportation to create a separate Federal corporate entity 
to operate the air traffic control system. 
Reports. 
(c) DEADLINE.—^The results of the study to be conducted under 
subsection (a) shall be contained in a report which shall be com-
pleted by the Secretary of Transportation on or before the date 
which is 180 days after the date of the enactment of this Act, 
or the date on which the Secretary submits to Congress proposed 
legislation to create a separate corporate entity to operate the 
air traffic control system, whichever date occurs first. 
(d) TRANSMITTAL.—On the date of completion of the report 
under subsection (c), the Secretary of Transportation shall transmit 
copies of the report to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Public Works 
and Transportation of the House of Representatives. 
TITLE IV—MISCELLANEOUS 
PROVISIONS 
W^es. 
SEC. 401. GRANDFATHER PROVISION FOR FAA DEMONSTRATION 
49TrSC app. 
PROJECT. 
(a) IN GENERAL.—^Notwithstanding the termination of the 
personnel demonstration project for certain Federal Aviation 
Administration employees on Jime 17, 1994, pursuant to section 
1348 note. 
PUBLIC LAW 103-260—MAY 26, 1994 
108 STAT. 703 
4703 of title 5, United States Code, the Federal Aviation Adminis-
tration, subject to subsection (d), shall continue to pay quarterly 
retention allowance payments in accordance with subsection (b) 
to those employees who are entitled to quarterly retention allowance 
payments under the demonstration project as of June 16, 1994. 
(b) COMPUTATION RULES.— 
(1) IN GENERAL.—The amount of each quarterly retention 
allowance payment to which an employee is entitled under 
subsection (a) shall be the amount of the last quarterly reten-
tion allowance payment paid to such employee under the 
personnel demonstration project prior to June 17, 1994, reduced 
by that portion of the amount of any increase in the employee's 
annual rate of basic pay subsequent to June 17, 1994, from 
any source, which is allocable to the quarter for which the 
allowance is to be paid (or, if applicable, to that portion of 
the quarter for which the allowance is to be paid). For purposes 
of the preceding sentence, the increase in an employee's annual 
rate of basic pay includes— 
(A) any increase under section 5303 of title 5, United 
States Code; 
(B) any increase in locality-based comparability pay-
ments under section 5304 of such title 5 (except if, or 
to the extent that, such increase is offset by a reduction 
of an interim geographic adjustment under section 302 
of the Federal Employees Pay Comparability Act of 1990 
(5 U.S.C. 5304 note)); 
(C) any establishment or increase in a special rate 
of pay under section 5305 of such title 5; 
(D) any increase in basic pay pursuant to a promotion 
under section 5334 of such title 5; 
(E) any periodic step-increase under section 5335 of 
such title 5; 
(F) any additional step-increase under section 5336 
of such title 5; and 
(G) any other increase in annual rate of basic pay 
under any other provision of law. 
(2) SECTION RULE.—In the case of an employee on leave 
without pay or other similar status for any part of the quarter 
prior to June 17, 1994, based on which the amount of the 
allowance payments for such employee under subsection (a) 
are computed, the "amount of the last quarterly retention allow-
ance payment paid to such employee under the personnel dem-
onstration project prior to June 17, 1994" shall, for purposes 
of paragraph (1), be deemed to be the amount of the allowance 
which would have been payable to such employee for such 
quarter under such project had such employee been in pay 
status throughout such quarter. 
(c) TERMINATION.—^An employee's entitlement to quarterly 
retention allowance payments under this section shall cease when— 
(1) the amount of such allowance is reduced to zero under 
subsection (b), or 
(2) the employee separates or moves to a position in which 
the employee would not, prior to June 17, 1994, have been 
entitled to receive an allowance under the demonstration 
project, 
whichever is earlier. 
108 STAT. 704 
PUBLIC LAW 103-260—MAY 26, 1994 
(d) SPECIAL PAYMENT RULE.—The Administrator of the Federal 
Aviation Administration may make payment for the costs incurred 
under the program established by subsection (a) for the period 
between June 18, 1994, and September 30, 1994, following the 
end of the first full pay period that begins on or after October 
1, 1994, subject to appropriations made available in fiscal year 
1995. 
(e) STUDY OF RECRUITMENT AND RETENTION INCENTIVES.—The 
Administrator of the Federal Aviation Administration shall conduct 
a study of impediments that may exist to achieving appropriate 
air traffic controller staffing levels at hard-to-staff facilities. In 
conducting such study, the Administrator shall identify and evalu-
ate the extent to which special incentives, of a financial or non-
financial nature, could be useful in recruiting or retaining air traffic 
Reports. 
controllers at such facilities. The Administrator shall submit to 
the Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Public Works and Transportation 
of the House of Representatives not later than 180 days after 
the date of enactment of this Act a report on (1) the results of 
such study, (2) planned administrative actions, and (3) any rec-
ommended legislation. 
Approved May 26, 1994. 
LEGISLATIVE HISTORY—S. 2024: 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
Apr. 19, considered and passed Senate. 
May 3, considered and passed House, amended. 
May 12, Senate concurred in House amendment with an amendment. 
May 17, House concurred in Senate amendment.