Federal Aviation Reauthorization Act of 1996
PL 104-264 (H.R.3539), enacted 10/09/1996

PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3213 
Public Law 104-264 
104th Congress 
An Act 
To amend title 49, United States Code, to reauthorize programs of the Federal 
Oct. 9, 1996 
Aviation Administration, and for other purposes. 
[H.R. 3539] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
Federal Aviation 
Reauthorization 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
Act of 1996. 
(a) SHORT TITLE.—This Act may be cited as the "Federal Avia- ^^^^^0 4oioi 
tion Reauthorization Act of 1996". 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
Sec. 2. Amendments to title 49, United States Code. 
Sec. 3. Applicability. 
TITLE I—AIRPORT AND AIRWAY IMPROVEMENTS 
Subtitle A—Reauthorization of FAA Programs 
Sec. 101. Airport improvement program. 
Sec. 102. Airway facilities improvement program. 
Sec. 103. FAA operations. 
Subtitle B—^Airport Development Financing 
Sec. 121. Apportionments. 
Sec. 122. Discretionary fund. 
Sec. 123. Use of apportioned amounts. 
Sec. 124. Designating current and former military airports. 
Sec. 125. Period of applicability of amendments. 
Subtitle C—Airport Improvement Program Modifications 
Sec. 141. Intermodal planning. 
Sec. 142. Pavement maintenance program. 
Sec. 143. Access to airports by intercity buses. 
Sec. 144. Cost reimbursement for projects commenced prior to grant award. 
Sec. 145. Selection of projects for grants from discretionary fund. 
Sec. 146. Small airport fund. 
Sec. 147. State block grant program. 
Sec. 148. Innovative financing techniques. 
Sec. 149. Pilot program on private ownership of airports. 
Sec. 201. Short title. 
Sec. 202. Definitions. 
Sec. 203. Effective date. 
TITLE II—FAA REFORM 
Subtitle A—General Provisions 
Sec. 221. Findings. 
Sec. 222. Purposes. 
Sec. 223. Regulation of civilian air transportation and related services by the 
Federal Aviation Administration and Department of Transportation. 
Sec. 224. Regulations. 
Sec. 225. Personnel and services. 
Sec. 226. Contracts. 
110 STAT. 3214 
PUBLIC LAW 104-264—OCT. 9, 1996 
Sec. 227. Facilities. 
Sec. 228. Property. 
Sec. 229. Transfers of funds from other Federal agencies. 
Sec. 230. Management Advisory Council. 
Subtitle B—Federal Aviation Administration Streamlining Programs 
Sec. 251. Review of acquisition management system. 
Sec. 252. Air traffic control modernization reviews. 
Sec. 253. Federal Aviation Administration personnel management system. 
Sec. 254. Conforming amendment. 
Subtitle C—System To Fund Certain Federal Aviation Administration Functions 
Sec. 271. Findings. 
Sec. 272. Purposes. 
Sec. 273. User fees for various Federal Aviation Administration services. 
Sec. 274. Independent assessment of FAA financial requirements; establishment of 
National Civil Aviation Review Commission. 
Sec. 275. Procedure for consideration of certain funding proposals. 
Sec. 276. Administrative provisions. 
Sec. 277. Advance appropriations for Airport and Airway Trust Fund activities. 
Sec. 278. Rural Air Service Survival Act. 
TITLE III—AVIATION SECURITY 
Sec. 301. Report including proposed legislation on funding for airport security. 
Sec. 302. Certification of screening companies. 
Sec. 303. Weapons and explosive detection study. 
Sec. 304. Requirement for criminal history records checks. 
Sec. 305. Interim deployment of commercially available explosive detection equip-
ment. 
Sec. 306. Audit of performance of background checks for certain personnel. 
Sec. 307. Passenger profiling. 
Sec. 308. Authority to use certain funds for airport security programs and 
activities. 
Sec. 309. Development of aviation security liaison agreement. 
Sec. 310. Regular joint threat assessments. 
Sec. 311. Baggage match report. 
Sec. 312. Enhanced security programs. 
Sec. 313. Report on air cargo. 
Sec. 314. Sense of the Senate regarding acts of international terrorism. 
TITLE IV—AVIATION SAFETY 
Sec. 401. Elimination of dual mandate. 
Sec. 402. Protection of voluntarily submitted information. 
Sec. 403. Supplemental type certificates. 
Sec. 404. Certification of small airports. 
Sec. 405. Authorization for State-specific safety measures. 
Sec. 406. Aircraft engine standards. 
Sec. 407. Accident and safety data classification; report on effects of publication 
and automated surveillance targeting systems. 
TITLE V—PILOT RECORD SHARING 
Sec. 501. Short title. 
Sec. 502. Employment investigations of pilot applicants. 
Sec. 503. Studies of minimum standards for pilot qualifications and of pay for 
training. 
Sec. 504. Study of minimum flight time. 
TITLE VI—CHILD PILOT SAFETY 
Sec. 601. Short title. 
Sec. 602. Child pilot safety. 
TITLE VII—FAMILY ASSISTANCE 
Sec. 701. Short title. 
Sec. 702. Assistance by National Transportation Safety Board to families of 
passengers involved in aircraft accidents. 
Sec. 703. Air carrier plans to address needs of families of passengers involved in 
aircraft accidents. 
Sec. 704. Establishment of task force. 
Sec. 705. Limitation on statutory construction. 
TITLE VIII—AIRPORT REVENUE PROTECTION 
Sec. 801. Short title. 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3215 
Sec. 802. Findings; purpose. 
Sec. 803. Definitions. 
Sec. 804. Restriction on use of airport revenues. 
Sec. 805. Regulations; audits and accountability. 
Sec. 806. Conforming amendments to the Internal Revenue Code of 1986. 
TITLE DC—METROPOLITAN WASHINGTON AIRPORTS 
Sec. 901. Short title. 
Sec. 902. Use of leased property. 
Sec. 903. Board of Directors. 
Sec. 904. Termination of Board of Review. 
Sec. 905. Limitations. 
Sec. 906. Use of Dulles Airport Access Highway. 
Sec. 907. Effect of 
judicial order. 
Sec. 908. Amendment of lease. 
Sec. 909. Sense of the Senate. 
TITLE X—EXTENSION OF AIRPORT AND AIRWAY TRUST FUND 
EXPENDITURES 
Sec. 1001. Extension of Airport and Airway Trust Fund expenditures. 
TITLE XI—FAA RESEARCH, ENGINEERING, AND DEVELOPMENT 
Sec. 1101. Short title. 
Sec. 1102. Authorization of appropriations. 
Sec. 1103. Research priorities. 
. 
Sec. 1104. Research advisory committee. 
Sec. 1105. National aviation research plan. 
TITLE XII—MISCELLANEOUS PROVISIONS 
Sec. 1201. Purchase of housing units. 
Sec. 1202. Clarification of passenger facility revenues as constituting trust funds. 
Sec. 1203. Authority to close airport located near closed or realigned military base. 
Sec. 1204. Gadsden Air Depot, Alabama. 
Sec. 1205. Regulations affecting intrastate aviation in Alaska. 
Sec. 1206. Westchester County Airport, New York. 
: 
Sec. 1207. Bedford Airport, Pennsylvania. 
i 
Sec. 1208. Worcester Municipal Airport, Massachusetts. 
i 
Sec. 1209. Central Florida Airport, Sanford, Florida. 
Sec. 1210. Aircraft Noise Ombudsman. 
Sec. 1211. Special rule for privately owned reliever airports. 
Sec. 1212. Sense of the Senate regarding the funding of the Federal Aviation 
Administration. 
Sec. 1213. Rural air fare study. 
Sec. 1214. Carriage of candidates in State and local elections. 
Sec. 1215. Special flight rules in the vicinity of Grand Canyon National Park. 
Sec. 1216. Transfer of air trafilc control tower; closing of flight service stations. 
Sec. 1217. Location of Doppler radar stations, New York. 
Sec. 1218. Train whistle requirements. 
Sec. 1219. Increased fees. 
'• 
Sec. 1220. Structures interfering with air commerce. 
Sec. 1221. Hawaii cargo. 
Sec. 1222. Limitation on authority of States to regulate gambling devices on vessels. 
Sec. 1223. Clarifying amendment. 
SEC. 2. AMENDMENTS TO TITLE 49, UNITED STAIIJS CODE. 
Except as otherwise specific£illy provided, whenever in this 
Act an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision of law, the reference 
shall be considered to be made to a section or other provision 
of title 49, United States Code. 
SEC. 3. APPUCABILITY. 
49 USC 106 note. 
(a) IN GENERAL.—Except as otherwise specifically provided, 
this Act and the amendments made by this Act apply only to 
fiscal years beginning after September 30,1996. 
(b) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this 
Act or any amendment made by this Act shall be constaxied as 
110 STAT. 3216 
PUBLIC LAW 104-264—OCT. 9, 1996 
affecting funds made available for a fiscal year ending before Octo-
ber 1, 1996. 
TITLE I—AIRPORT AND AIRWAY 
IMPROVEMENTS 
Subtitle A—Reauthorization of FAA 
Programs 
SEC. 101. AIRPORT IMPROVEMENT PROGRAM. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 48103 is 
amended— 
(1) by striking "September 30, 1981" and inserting "Septem-
ber 30, 1996"; and 
(2) by striking "$17,583,500,000" and all that follows 
through the period at the end and inserting the following: 
"$2,280,000,000 for fiscal years ending before October 1, 1997, 
and $4,627,000,000 for fiscal years ending before October 1, 
1998.". 
(b) OBLIGATIONAL AUTHORITY.—Section 47104(c) is amended 
by striking "1996" and inserting "1998". 
SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 48101(a) is 
amended by striking paragraphs (1) through (4) and inserting the 
following: 
"(1) $2,068,000,000 for fiscal year 1997. 
"(2) $2,129,000,000 for fiscal year 1998.". 
(b) CLERICAL AMENDMENTS.—Chapter 481 is amended— 
(1) by striking the heading for section 48101 and inserting 
the following: 
*'§ 48101. Air navigation facilities and equipment"; and 
(2) in the table of sections by striking the item relating 
to section 48101 and inserting the following: 
"48101. Air navigation facilities and equipment.". 
SEC. 103. FAA OPERATIONS. 
(a) AUTHORIZATION OF APPROPRL\TIONS FROM GENERAL FUND.— 
Section 106(k) is amended by striking "$4,088,000,000" and all 
that follows through the period at the end and inserting the follow-
ing: "$5,158,000,000 for fiscal year 1997 and $5,344,000,000 for 
fiscal year 1998.". 
(b) AUTHORIZATION OF APPROPRIATIONS FROM TRUST FUND.— 
Section 48104(c) is amended— 
(1) in the subsection heading by striking "1996" and insert-
ing "1998"; 
(2) in the matter preceding paragraph (1) by striking "1994, 
1995, and 1996" and inserting "1994 through 1998"; and 
(3) in paragraph (2)(A) by striking "70 percent" and insert-
ing "72.5 percent". 
(c) LIMITATION ON OBLIGATING OR EXPENDING AMOUNTS.—Sec-
tion 48108(c) is amended by striking "1996" and inserting "1998". 
(d) CLERICAL AMENDMENTS.—Chapter 481 is amended— 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3217 
(1) by striking the heading for section 48104 and inserting 
the following: 
*
*
§ 48104. Operations and maintenance"; and 
(2) in the table of sections by striking the item relating 
to section 48104 and inserting the following: 
"48104. Operations and maintenance.". 
Subtitle B—Airport Development 
Financing 
SEC. 121. APPORTIONMENTS. 
(a) AMOUNTS APPORTIONED TO SPONSORS.— 
(1) 
PRIMARY 
AIRPORTS.—Section 
47114(c)(1)(A) 
is 
amended— 
(A) by striking "and" at the end of clause (iii); 
(B) in clause (iv) by striking "additional passenger 
boarding" and inserting "of the next 500,000 passenger 
boardings"; 
(C) by striking the period at the end of clause (iv) 
and inserting "; and"; and 
(D) by adding at the end the following: 
"(v) $.50 for each additional passenger boarding at the 
gdrport during the prior calendar year.". 
(2) CARGO ONLY AIRPORTS.—Section 47114(c)(2) of such title 
is amended to read as follows: 
"(2) CARGO ONLY AIRPORTS.— 
"(A) APPORTIONMENT.—Subject to subparagraph (D), 
the Secretary shall apportion an amount equal to 2.5 per-
cent of the amount subject to apportionment each fiscal 
year to the sponsors of airports served by aircraft providing 
air transportation of only cargo with a total annual landed 
weight of more than 100,000,000 pounds. 
"(B) SUBALLOCATION FORMULA.—Any funds 
appor-
tioned under subparagraph (A) to sponsors of airports 
described in subparagraph (A) shall be allocated among 
those airports in the proportion that the total annual 
landed weight of aircrs^ described in subparagraph (A) 
landing at each of those airports bears to the total gmnual 
landed weight of those aircraft landing at all those airports. 
"(C) LIMITATION.—Not more than 8 percent of the 
amount apportioned under subparagraph (A) may be appor-
tioned for any one airport. 
"(D) DISTRIBUTION TO OTHER AIRPORTS.—Before appor-
tioning amounts to the sponsors of airports under subpara-
graph (A) for a fiscal year, the Secretary may set-aside 
a portion of such amounts for distribution to the sponsors 
of other airports, selected by the Secretary, that the Sec-
retary finds will be served primarily by aircraft providing 
air transportation of only cargo. 
"(E) DETERMINATION OF LANDED WEIGHT.—Landed 
weight under this paragraph is the landed weight of air-
craft landing at each airport described in subparagraph 
(A) during the prior calendar year.". 
(3) REPEAL OF LIMITATION.—Section 47114(c)(3) is repealed. 
110 STAT. 3218 
PUBLIC LAW 104-264—OCT. 9, 1996 
(b) AMOUNTS APPORTIONED TO STATES.—Section 47114(d)(2) of 
such title is amended— 
(1) by striking "12" and inserting "18.5"; 
(2) in subparagraph (A) by striking "one" and inserting 
"0.66"; 
(3) in each of subparagraphs (B) smd (C) by striking "49.5" 
and inserting "49.67"; and 
(4) in each of subparagraphs (B) and (C) by striking 
"except" the second place it appears and all that follows through 
"title," and inserting "excluding primary airports but including 
reliever and nonprimary commercial service airports,". 
SEC. 122. DISCRETIONARY FUND. 
Section 47115 is amended by striking the second subsection 
(f), relating to minimum amounts to be credited, £ind inserting 
the following: 
"(g) MINIMUM AMOUNT TO BE CREDITED.— 
"(1) GENERAL RULE.—In a fiscal year, there shall be cred-
ited to the fund, out of Eimounts made available under section 
48103 of this title, an amount that is at least equal to the 
sum of— 
"(A) $148,000,000; plus 
"(B) the total amount required fi"om the fund to carry 
out in the fiscal year letters of intent issued before January 
1, 1996, under section 47110(e) of this title or the Airport 
and Airway Improvement Act of 1982. 
The amount credited is exclusive of amounts that have been 
apportioned in a prior fiscal year under section 47114 of this 
title and that remain available for obligation. 
"(2) REDUCTION OF APPORTIONMENTS.—In a fiscal year in 
which the amount credited under subsection (a) is less than 
the minimum amount to be credited under paragraph (1), the 
total amount calculated under paragraph (3) shall be reduced 
by an amount that, when credited to the fiind, together with 
the amount credited under subsection (a), equals such minimum 
amount. 
"(3) AMOUNT OF REDUCTION.—For a fiscal year, the total 
amount available to make a reduction to cgury out paragraph 
(2) is the total of the amounts determined imder sections 
47114(c)(1)(A), 47114(c)(2), 47114(d), and 47117(e) of this title. 
Each amount shall be reduced by an equal percentage to achieve 
the reduction. 
"(4) SPECIAL RULE.—For a fiscal year in which the amount 
credited to the fund under this subsection exceeds $300,000,000, 
the Secretary shall allocate the amount of such excess as 
follows: 
"(A) V
b shall be made available to airports for which 
apportionments are made under section 47114(d) of this 
title. 
"(B) Va shall be made available for airport noise 
compatibility planning under section 47505(a)(2) of this 
title and for carrying out noise compatibility programs 
under section 47504(c)(1) of this title. 
"(C) Va shall be made available to current or former 
military airports for which grants may be made under 
section 47117(e)(1)(B) of this title.". 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3219 
SEC. 123. USE OF APPORTIONED AMOUNTS. 
(a) PERIOD OF AVAILABILITY.—Section 47117(b) is amended by 
inserting before the period at the end of the first sentence the 
following: "or the 3 fiscal years immediately following that year 
in the case of a primary airport that had less than .05 percent 
of the total boardings in the United States in the preceding calendar 
year". 
(b) SPECIAL APPORTIONMENT CATEGORIES.—Section 47117(e)(1) 
is amended— 
(1) by striking "made available under section 48103" and 
inserting "available to the discretionary fund under section 
47115"; 
, 
(2) by striking subparagraphs (A), (C), and (D); 
(3) by redesignating subparagraphs (B) and (E) as subpara-
graphs (A) £ind (B), respectively; 
(4) in subparagraph (A), as so redesignated, by striking 
"at least 12.5" and inserting "At least 31"; 
(5) by adding at the end of subparagraph (A), as so redesig-
nated, the following: "The Secretary may count the amount 
of grants made for such planning and programs with funds 
apportioned under section 47114 in that fiscal year in determin-
ing whether or not such 31 percent requirement is being met 
in that fiscal year."; 
(6) in subparagraph (B), as so redesignated, by striking 
"at least 2.25" and all that follows through "1996," and inserting 
"At least 4 percent for each fiscal year thereafter"; £ind 
(7) by inserting before the period at the end of subpara-
graph (B), as so redesignated, the following: "and to sponsors 
of noncommercial service airports for grants for operational 
and maintenance expenses at any such airport if the amount 
of such grants to the sponsor of the airport does not exceed 
$30,000 in that fiscsd year, if the Secretary determines that 
the airport is adversely affected by the closure or realignment 
of a military base, and if the sponsor of the airport certifies 
that the airport would otherwise close if the airport does not 
receive the grant". 
(c) CONFORMING AMENDMENTS.—Section 47117(e) is amended— 
(1) by striking paragraph (2); and 
(2) by redesignating paragraph (3) as paragraph (2). 
SEC. 124. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS. 
(a) GENERAL REQUIREMENTS.—Section 47118(a) is amended to 
read as follows: 
"(a) GENERAL REQUIREMENTS.—The Secretary of Transportation 
shsill designate current or former military airports for which grants 
may be made under section 47117(e)(1)(B) of this title. The maxi-
mum number of airports bearing such designation at any time 
is 12. The Secretary may only so designate an airport (other than 
an airport so designated before August 24,1994) if— 
"(1) the airport is a former military installation closed 
or realigned under— 
"(A) section 2687 of title 10; 
"(B) section 201 of the Defense Authorization Amend-
ments and Base Closure and Realignment Act (10 U.S.C. 
2687 note); or 
"(C) section 2905 of the Defense Base Closure and 
Realignment Act of 1990 (10 U.S.C. 2687 note); or 
110 STAT. 3220 
PUBLIC LAW 104-264—OCT. 9, 1996 
"(2) the Secretary finds that such grants would— 
"(A) reduce delays at an airport with more than 20,000 
hours of £innu£Q delays in commercial passenger aircraft 
takeoffs and landings; or 
"(B) enhance airport and air traffic control system 
capacity in a metropolitan area or reduce current and 
projected flight delays.". 
(b) ADDITIONAL DESIGNATION PERIODS.—Section 47118(d) is 
amended by striking "designation." and inserting "designation, and 
for subsequent 5-fiscal-year periods if the Secretary determines 
that the airport satisfies the designation criteria under subsection 
(a) at the beginning of each such subsequent 5-fiscal-year period.". 
(c) PARKING LOTS, FUEL FARMS, UTILITIES, AND HANGARS.— 
Section 47118(f) is amended— 
(1) in the heading by striking "AND UTILITIES" and inserting 
"UTILITIES, AND HANGARS"; 
(2) by striking "for the fiscal years ending September 30, 
1993-1996," and inserting "for fiscal years beginning after 
September 30,1992,"; and 
(3) by striking "and utiUties" and inserting "utilities, and 
hangars". 
(d) 2-YEAR EXTENSION.—Section 47117(e)(1)(B), as redesignated 
by section 123(b) of this Act, is amended by striking "and 1996," 
and inserting "1996, 1997, and 1998". 
49 use 47114 
SEC. 126. PERIOD OF APPLICABILITY OF AMENDMENTS. 
The amendments made by this subtitle shall cease to be effec-
tive on September 30, 1998. On and after such date, sections 47114, 
47115, 47117, and 47118 of title 49, United States Code, shall 
read as if such amendments had not been enacted. 
Subtitle C—^Airport Improvement Program 
Modifications 
SEC. 141. INTERMODAL PLANNING. 
Section 47101(g) is amended to read as foUows: 
"(g) INTERMODAL PLANNING.—To carry out the policy of sub-
section (a)(5) of this section, the Secretary of Transportation shall 
take each of the following actions: 
"(1) COORDINATION IN DEVELOPMENT OF AIRPORT PLANS AND 
PROGRAMS.—Cooperate with State and local officials in develop-
ing airport plans and programs that are based on overall 
transportation needs. The airport plans and programs shall 
be developed in coordination with other transportation planning 
and considering comprehensive long-range land-use plans and 
overall social, economic, environmental, system performance, 
and energy conservation objectives. The process of developing 
airport plans and programs shall be continuing, cooperative, 
and comprehensive to the degree appropriate to the complexity 
of the transportation problems. 
"(2) 
GOALS FOR AIRPORT MASTER AND SYSTEM PLANS.— 
Encourage airport sponsors and State and local officials to 
develop airport master plans and airport system plans that— 
"(A) foster effective coordination between aviation plan-
ning and metropolitan planning; 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3221 
"(B) include an evaluation of aviation needs within 
the context of multimodal plsmning; and 
"(C) are integrated with metropolitan plans to ensure 
that airport development proposals include 
adequate 
consideration of land use and ground transportation access. 
"(3) REPRESENTATION OF AIRPORT OPERATORS ON MPO'S.— 
Encourage metropolitan planning organizations, particularly in 
areas with populations greater than 200,000, to establish mem-
bership positions for airport operators.". 
SEC. 142. PAVEMENT MAINTENANCE PROGRAM. 
(a) PAVEMENT MAINTENANCE.—Subchapter I of chapter 471 is 
amended by adding at the end the following: 
"§ 47132. Pavement maintenance 
"(a) IN GENERAL.—The Administrator of the Federal Aviation 
Administration shall issue guidelines to carry out a pavement 
maintensince pilot project to preserve and extend the useful life 
of runways, taxiways, and aprons at airports for which apportion-
ments are made under section 47114(d). The guidelines shall pro-
vide that the Administrator may designate not more thsmi 10 
projects. The guidelines shall provide criteria for the Administrator 
to use in choosing the projects. At least 2 such projects must 
be in States without a primeuy airport that had 0.25 percent or 
more of the total boardings in the United States in the preceding 
calendar year. In designating a project, the Administrator shall 
take into consideration geographical, climatological, and soil diver-
sity. 
"(b) EFFECTIVE DATE.—This section shall be effective beginning 
on the date of the enactment of this section and ending on Septem-
ber 30,1999.". 
(b) COMPLIANCE WITH FEDERAL MANDATES.— 
(1) USE OF AIP GRANTS.—Section 47102(3) is amended— 
(A) in subparagraph (E) by inserting "or under section 
40117" before the period at the end; and 
(B) in subparagraph (F) by striking "paid for by a 
grant under this subchapter and". 
(2) 
USE 
OF 
PASSENGER 
FACILITY 
CHARGES.—Section 
40117(a)(3) is amended— 
(A) by inserting "and" at the end of subparagraph 
(D); 
(B) by striking "; and" at the end of subparagraph 
(E) and inserting a period; and 
(C) by striking subparagraph (F). 
(c) CONFORMING AMENDMENT.—The table of sections for such 
subchapter is amended by inserting after the item relating to section 
47131 the following: 
"47132. Pavement maintenance.". 
" 
' 
SEC. 143. ACCESS TO AIRPORTS BY INTERCITY BUSES. 
Section 47107(a) is amended— 
(1) by striking "and" at the end of paragraph (18); 
(2) by striking the period at the end of paragraph (19) 
and inserting "; and"; and 
(3) by adding at the end the following: 
"(20) the airport owner or operator will permit, to the 
maximum extent practicable, intercity buses or other modes 
of transportation to have access to the airport, but the sponsor 
110 STAT. 3222 
PUBLIC LAW 104-264—OCT. 9, 1996 
does not have any obligation under this paragraph, or because 
of it, to fund special facilities for intercity bus service or for 
other modes of transportation.". 
SEC. 144. COST REIMBURSEMENT FOR PROJECTS COMMENCED PRIOR 
TO GRANT AWARD. 
(a) COST REIMBURSEMENT.—Section 47110(b)(2)(C) is amended 
to read as follows: 
"(C) if the Government's share is paid only with amounts 
apportioned under paragraphs (1) and (2) of section 47114(c) 
of this title and if the cost is incurred— 
"(i) after September 30, 1996; 
"(ii) before a grant agreement is executed for the 
project; and 
"(iii) in accordance with an airport layout plan 
approved by the Secretary and with all statutory and 
administrative 
requirements 
that 
would 
have 
been 
applicable to the project if the project had been carried 
out after the grant agreement had been executed;". 
(b) USE OF DISCRETIONARY FUNDS.—Section 47110 is amended 
by adding at the end the following: 
"(g) USE OF DISCRETIONARY FuNDS.—A project for which cost 
reimbursement is provided under subsection (b)(2)(C) shall not 
receive priority consideration with respect to the use of discretionary 
funds made available under section 47115 of this title even if 
the amoimts made available under paragraphs (1) and (2) of section 
47114(c) are not sufficient to cover the Government's share of the 
cost of project.". 
SEC. 145. SELECTION OF PROJECTS FOR GRANTS FROM DISCRE-
TIONARY FUND. 
(a) SELECTION OF PROJECTS FOR GRANTS.—Section 47115(d) 
is amended— 
(1) by striking "; and" at the end of paragraph (2) and 
inserting the following: ", including, in the case of a project 
at a reliever airport, the number of operations projected to 
be diverted from a primary airport to the reliever airport as 
a result of the project, as well as the cost savings projected 
to be realized by users of the local airport system;"; 
(2) by strUdng the period at the end of paragraph (3) 
and inserting a semicolon; and 
(3) by adding at the end the following: 
"(4) the airport improvement priorities of the States, and 
regional offices of the Administration, to the extent such prior-
ities are not in conflict with paragraphs (1) and (2); 
"(5) the projected growtii in the number of passengers 
that will be using the airport at which the project will be 
carried out; and 
"(6) any increase in the number of passenger boardings 
in the preceding 12-month period at the airport at which the 
project will be carried out, with priority consideration to be 
given to projects at airports at which the number of passenger 
boardings increased by at least 20 percent as compared to 
the number of passenger boardings in the 12-monm period 
preceding such period.". 
(b) PRIORITY FOR LETTERS OF INTENT.—Section 47115, as 
amended by section 122 of this Act, is further amended by adding 
at the end the following: 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3223 
"(h) PRIORITY FOR LETTERS OF INTENT.—In making grants in 
a fiscal year with funds made available under this section, the 
Secretary shall fulfill intentions to obligate under section 47110(e).". 
SEC. 146. SMALL AIRPORT FUND. 
Section 47116 is amended by adding at the end the following: 
"(d) PRIORITY CONSIDERATION FOR CERTAIN PROJECTS.—In mak-
ing grants to sponsors described in subsection (b)(2), the Secretary 
shall give priority consideration to multi-year projects for construc-
tion of new runways that the Secretary finds are cost beneficial 
and would increase capacity in a region of the United States.". 
SEC. 147. STATE BLOCK GRANT PROGRAM. 
(a) PARTICIPATING STATES.—Section 47128 is amended— 
(1) in subsection (a) by striking "7 qualified States" and 
inserting "8 qualified States for fiscal year 1997 and 9 qualified 
States for each fiscal year thereafter"; 
(2) in subsection (b)(1)— 
(A) by striking "(1)"; and 
(B) by redesignating subparagraphs (A) through (E) 
as paragraphs (1) through (5), respectively; and 
(3) by striking subsection (b)(2). 
(b) 
USE OF STATE PRIORITY SYSTEM.—Section 47128(c) 
is 
amended— 
(1) by striking "(b)(1)(B) or (C)" and inserting "(b)(2) or 
(b)(3)"; and 
(2) by adding at the end the following: "In carrying out 
this subsection, the Secretary shall permit a State to use the 
priority system of the State if such system is not inconsistent 
with the national priority system.". 
(c) REPEAL OF EXPIRATION DATE.— 
(1) IN GENERAL.—Section 47128 is amended— 
(A) by striking "pilot" in the section heading; 
(B) by striking "pilot" in subsection (a); £ind 
(C) by striking subsection (d). 
(2) CONFORMING AMENDMENT.—The table of sections for 
chapter 471 is amended by striking the item relating to section 
47128 and inserting the following: 
"47128. State block grant program.". 
SEC. 148. INNOVATIVE FINANCING TECHNIQUES. 
49 USC 47101 
(a) IN GENERAL.—The Secretary of Transportation is authorized 
to carry out a demonstration program under which the Secretary 
may approve applications under subchapter I of chapter 471 of 
title 49, United States Code, for not more than 10 projects for 
which grants received under such subchapter may be used to imple-
ment innovative financing techniques. 
(b) PURPOSE.—The purpose of the demonstration program shall 
be to provide information on the use of innovative financing tech-
niques for airport development projects to Congress £ind the 
National Civil Aviation Review Commission. 
(c) LIMITATION.—In no case shall the implementation of an 
innovative financing technique imder the demonstration program 
result in a direct or indirect guarantee of any airport debt 
instrument by the Federal Government. 
(d) INNOVATIVE FINANCING TECHNIQUE DEFINED.—In this sec-
tion, the term "innovative financing technique" shall be limited 
to the following: 
110 STAT. 3224 
PUBLIC LAW 104-264—OCT. 9, 1996 
(1) Pa3mient of interest. 
(2) Commercial bond insurance and other credit enhance-
ment associated with airport bonds for eHgible airport develop-
ment. 
(3) Flexible non-Federal matching requirements. 
(e) EXPIRATION OP AUTHORITY.—The authority of the Secretary 
to carry out the demonstration program shall expire on September 
30, 1998. 
SEC. 149. PILOT PROGRAM ON PRIVATE OWNERSHIP OF AIRPORTS. 
(a) ESTABLISHMENT OF PROGRAM.— 
(1) IN GENERAL.—Subchapter I of chapter 471, as amended 
by section 804 of this Act, is further amended by adding after 
section 47133 the following: 
"§ 47134. Pilot program on private ownership of airports 
"(a) SUBMISSION OF APPLICATIONS.—If a sponsor intends to 
sell or lease a general aviation airport or lease any other type 
of airport for a long term to a person (other than a public agency), 
the sponsor and purchaser or lessee may apply to the Secretary 
of Transportation for exemptions under this section. 
"(b) APPROVAL OF APPLICATIONS.—The Secretary may approve, 
with respect to not more than 5 airports, applications submitted 
under subsection (a) granting exemptions from the following provi-
sions: 
"(1) USE OF REVENUES.— 
"(A) IN GENERAL.—The Secretary may grant an exemp-
tion to a sponsor from the provisions of sections 47107(b) 
and 47133 of this title (and any other law, regulation, 
or grant assurance) to the extent necessary to permit the 
sponsor to recover from the sale or lease of the airport 
such amoimt as may be approved— 
"(i) by at least 65 percent of the air carriers serving 
the airport; and 
"(ii) by air carriers whose aircraft landing i t the 
airport during the preceding calendar year had a total 
landed weight during the preceding calendar year of 
at least 65 percent of the total landed weight of all 
aircraft landing at the airport during such year. 
Regulations. 
"(B) LAI>IDED WEIGHT DEFINED.—In this paragraph, the 
term landed weight' means the weight of aircraft transport-
ing passengers or cargo, or both, in intrastate, interstate, 
and foreign air transportation, as the Secretary determines 
under regulations the Secretary prescribes. 
"(2) REPAYMENT REQUIREMENTS.—The Secretary may grant 
an exemption to a sponsor from the provisions of sections 
47107 and 47152 of this title (and any other law, regulation, 
or grant assurance) to the extent necessary to waive any obliga-
tion of the sponsor to repay to the Federal Government any 
grants, or to return to the Federal Government any property, 
received by the airport under this title, the Airport and Airway 
Improvement Act of 1982, or any other law. 
"(3) COMPENSATION FROM AIRPORT OPERATIONS.—The Sec-
retary may grant an exemption to a purchaser or lessee from 
the provisions of sections 47107(b) and 47133 of this title (and 
any other law, regulation, or grant assurance) to the extent 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3225 
necessary to permit the purchaser or lessee to earn compensa-
tion from the operations of the airport. 
"(c) TERMS AND CONDITIONS.—^The Secretary may approve an 
appHcation under subsection (b) only if the Secretary finds that 
the sale or lease agreement includes provisions satisfactory to the 
Secretary to ensure the following: 
"(1) The Eiirport will continue to be available for public 
use on reasonable terms and conditions and without unjust 
discrimination. 
"(2) The operation of the airport will not be interrupted 
in the event that the purchaser or lessee becomes insolvent 
or seeks or becomes subject to any State or Federal bankruptcy, 
reorganization, insolvency, liquidation, or dissolution proceed-
ing or any petition or similar law seeking the dissolution or 
reorganization of the purchaser or lessee or the appointment 
of a receiver, trustee, custodian, or liquidator for the purchaser 
or lessee or a substantial part of the purchaser or lessee's 
property, assets, or business. 
"(3) The purchaser or lessee will maintain, improve, and 
modernize the facilities of the airport through capital invest-
ments and will submit to the Secretary a plan for carrjdng 
out such maintenance, improvements, and modernization. 
"(4) Every fee of the airport imposed on an air carrier 
on the day before the date of the lease of the airport will 
not increase faster than the rate of inflation unless a higher 
amount is approved— 
"(A) by at least 65 percent of the air carriers serving 
the £un>ort; and 
"(B) by air carriers whose aircraft landing at the airport 
during the preceding calendar year had a total landed 
weight during the preceding calendar year of at least 65 
percent of the total landed weight of all aircraft landing 
at the airport during such year. 
"(5) The percentage increase in fees imposed on general 
aviation aircraft at the airport will not exceed the percentage 
increase in fees imposed on air carriers at the airport. 
"(6) Safety and security at the airport will be maintained 
at the highest possible levels. 
"(7) The adverse effiects of noise from operations at the 
airport will be mitigated to the same extent as at a public 
airport. 
"(8) Any adverse effects on the environment from airport 
operations will be mitigated to the same extent as at a public 
airport. 
"(9) Any collective beirgaining agreement that covers 
employees of the eiirport and is in effect on the date of the 
sale or lease of the airport will not be abrogated by the sale 
or lease. 
"(d) PARTICIPATION OF CERTAIN AIRPORTS.— 
"(1) 
GENERAL 
AVIATION 
AIRPORTS.—If 
the 
Secretary 
approves imder subsection (b) applications with respect to 5 
airports, one of the airports must be a general aviation airport. 
"(2) LARGE HUB AIRPORTS.—The Secretary may not approve 
under subsection (b) more than 1 application submitted by 
£in airport that had 1 percent or more of the total passenger 
boardings (as defined in section 47102) in the United States 
in the preceding calendar year. 
110 STAT. 3226 
PUBLIC LAW 104-264—OCT. 9, 1996 
"(e) REQUIRED FINDING THAT APPROVAL WILL NOT RESULT IN 
UNFAIR METHODS OF COMPETITION.—The Secretary may approve 
an application under subsection (b) only if the Secretary finds 
that the approval will not result in unfair and deceptive practices 
or unfair methods of competition. 
"(f) INTERESTS OF GENERAL AVIATION USERS.—In approving 
an application of an airport under this section, the Secretary shall 
ensure that the interests of general aviation users of the airport 
Eire not adversely affected. 
"(g) PASSENGER FACILITY FEES; APPORTIONMENTS; 
SERVICE 
CHARGES.—Notwithstanding that the sponsor of an airport receiving 
an exemption under subsection (b) is not a public agency, the 
sponsor shall not be prohibited from— 
"(1) imposing a passenger facility fee luider section 40117 
of this title; 
"(2) receiving apportionments under section 47114 of this 
title; or 
"(3) collecting reasonable rental charges, landing fees, and 
other service charges from aircraft operators under section 
40116(e)(2) of this title. 
"(h) EFFECTIVENESS OF EXEMPTIONS.—An exemption granted 
under subsection (b) shall continue in effect only so long as the 
facilities sold or leased continue to be used for airport purposes. 
"(i) REVOCATION OF EXEMPTIONS.—The Secretary may revoke 
an exemption issued to a purchaser or lessee of an airport under 
subsection (b)(3) if, after providing the purchaser or lessee with 
notice and an opportunity to be heard, the Secretary determines 
that the purchaser or lessee has knowingly violated any of the 
terms specified in subsection (c) for the sale or lease of the airport. 
"(j) NONAPPLICATION OF PROVISIONS TO AIRPORTS OWNED BY 
PUBLIC AGENCIES.—^The provisions of this section requiring the 
approval of air carriers in determinations concerning the use of 
revenues, and imposition of fees, at an airport shall not be extended 
so as to apply to any airport owned by a public agency that is 
not participating in the program estabUshed by this section. 
"(k) AUDITS.—^The Secretary may conduct periodic audits of 
the financial records and operations of an airport receiving an 
exemption under this section. 
"(1) REPORT.—^Not later than 2 years after the date of the 
initial approval of an application under this section, the Secretary 
shall transmit to the Committee on Transportation and Infi-astruc-
ture of the House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate a report on 
implementation of the program under this section. 
"(m) GENERAL AVIATION AIRPORT DEFINED.—In this section, 
the term 'general aviation airport' means an airport that is not 
a commercigJ service airport.". 
(2) CONFORMING AMENDMENT.—The table of sections for 
such chapter is amended by inserting after the item relating 
to section 47133, as added by section 804 of this Act, the 
following: 
"47134. Pilot program on private ownership of airports.". 
(b) TAXATION.—Section 40116(b) is amended— 
(1) by striking "a State or" and inserting "a State, a"; 
and 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3227 
(2) by inserting after "of a State" the following: ", and 
any person that has purchased or leased an airport under 
section 47134 of this title". 
(c) FEDERAL SHARE.—Section 47109(a) is amended— 
(1) by striking "and" at the end of paragraph (1); 
(2) by striking the period at the end of paragraph (2) 
and inserting "; and"; and 
(3) by adding at the end the following: 
"(3) 40 percent for a project funded by the Administrator 
ft^om the discretionary fund under section 47115 at an airport 
receiving an exemption under section 47134.". 
(d) RESOLUTION OF AIRPORT-AIR CARRIER DISPUTES CONCERN-
ING AIRPORT FEES.—Section 47129(a) is amended by adding at 
the end the following: 
"(4) 
FEES IMPOSED BY PRIVATELY-OWNED AIRPORTS.—In 
evaluating the reasonableness of a fee imposed by an airport 
receiving an exemption imder section 47134 of this title, the 
Secretary shall consider whether the airport has complied with 
section 47134(c)(4).". 
TITLE II—FAA REFORM 
SEC. 201. SHORT TITLE. 
This title may be cited as the "Air Traffic Meinagement System 
Performance Improvement Act of 1996". 
SEC. 202. DEFINITIONS. 
In this title, the following definitions apply: 
(1) ADMINISTRATION.—The term "Administration" means 
the Federal Aviation Administration. 
(2) ADMINISTRATOR.—The term "Administrator" means the 
Administrator of the Federal Aviation Administration. 
(3) SECRETARY.—The term "Secretary" means the Secretary 
of Transportation. 
SEC. 203. EFFECTIVE DATE. 
The provisions of this title and the amendments made by this 
title shall take effect on the date that is 30 days after the date 
of the enactment of this Act. 
Subtitle A—General Provisions 
Air Traffic 
Management 
System 
Performance 
Improvement Act 
of 1996. 
49 u s e 40101 
note. 
49 u s e 106 note. 
49 u s e 106 note. 
SEC. 221. FINDINGS. 
Congress finds the following: 
(1) In many respects the Administration is a unique agency, 
being one of the few non-defense government agencies that 
operates 24 hours a day, 365 days of the year, while continuing 
to rely on outdated technology to carry out its responsibilities 
for a state-of-the-art industry. 
(2) Until January 1, 1996, users of the air transportation 
system paid 70 percent of the budget of the Administration, 
with the remaining 30 percent coming from the General Fund. 
The General Fund contribution over the years is one measure 
of the benefit received by the general public, military, and 
other users of Administration's services. 
49 u s e 106 note. 
110 STAT. 3228 
PUBLIC LAW 104-264—OCT. 9, 1996 
(3) The Administration must become a more efficient, effec-
tive, £ind different organization to meet future challenges. 
(4) The need to balance the Federal budget means that 
it may become more and more difficult to obtain sufficient 
General Fund contributions to meet the Administration's future 
budget needs. 
(5) Congress must keep its commitment to the users of 
the national air transportation system by seeking to spend 
all moneys collected from them each year and deposited into 
the Airport and Airway Trust Fund. Existing surpluses rep-
resenting past receipts must also be spent for the purposes 
for which such funds were collected, 
(6) The aviation community eind the employees of the 
Administration must come together to improve the system. 
The Administration must continue to recognize who its cus-
tomers are and what their needs are, and to design and redesign 
the system to make safety improvements and 
increase 
productivity. 
(7) The Administration projects that commercial operations 
will increase by 18 percent and passenger traffic by 35 percent 
by the year 2002. Without effective airport expansion and sys-
tem modernization, these needs cannot be met. 
(8) Absent significant and meaningful reform, future chal-
lenges and needs cannot be met. 
(9) The Administration must have a new way of doing 
business. 
(10) There is widespread agreement within government 
and the aviation industry that reform of the Administration 
is essentieJ to safely and efficiently accommodate the projected 
growth of aviation within the next decade. 
(11) To the extent that Congress determines that certain 
segments of the aviation community are not required to pay 
all of the costs of the government services which they require 
and benefits which they receive, Congress should appropriate 
the difference between such costs and any receipts received 
from such segment, 
(12) Prior to the imposition of any new charges or user 
fees on segments of the industry, an independent review must 
be performed to assess the funding needs and assumptions 
for operations, capital spending, and airport infrastructure, 
(13) An independent, thorough, and complete study £ind 
assessment must be performed of the costs to the Administra-
tion and the costs driven by each segment of the aviation 
system for safety and operational services, including the use 
of the air traffic control system and the Nation's airports. 
(14) Because the Administration is a unique Federal entity 
in that it is a participant in the daily operations of an industry, 
and because the national air transportation system faces signifi-
cant problems without significant changes, the Administration 
has been authorized to change the Federal procurement and 
personnel systems to ensure that the Administration has the 
ability to keep pace with new technology and is able to match 
resources with the real personnel needs of the Administration. 
(15) The existing budget system does not allow for long-
term planning or timely acquisition of technology by the 
Administration, 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3229 
(16) Without reforms in the areas of procurement, person-
nel, funding, and governance, the Administration will continue 
to experience delays and cost overruns in its major moderniza-
tion programs and needed improvements in the performance 
of the air traffic management system will not occur. 
(17) All reforms should be designed to help the Administra-
tion become more responsive to the needs of its customers 
and maintain the highest standards of safety. 
SEC. 222. PURPOSES. 
49 USC 106 note. 
The purposes of this title are— 
(1) to ensure that final action shall be taken on all notices 
of proposed rulemaking of the Administration within 18 months 
after the date of their publication; 
(2) to permit the Administration, with Congressional 
review, to establish a program to improve air traffic manage-
ment system performance and to establish appropriate levels 
of cost accountability for air traffic management services pro-
vided by the Administration; 
(3) to establish a more autonomous and accountable 
Administration within the Department of Transportation; and 
(4) to make the Administration a more efficient and effec-
tive organization, able to meet the needs of a dynamic, growing 
industry, and to ensure the safety of the traveling public. 
SEC. 223. REGULATION OF CIVILIAN AIR TRANSPORTATION AND 
RELATED 
SERVICES 
BY 
THE 
FEDERAL 
AVIATION 
ADMINISTRATION AND DEPARTMENT OF TRANSPOR-
TATION. 
(a) IN GENERAL.—Section 106 is amended— 
(1) by striking "The Administrator" in subsection (b) and 
inserting "Except as provided in subsection (f) or in other 
provisions of law, the Administrator"; and 
(2) in subsection (f)— 
(A) by striking "(f) The Secretarj^' and inserting the 
following: 
"(f) AUTHORITY OF THE SECRETARY AND THE ADMINISTRATOR.— 
"(1) AUTHORITY OF THE SECRETARY.—Except as provided 
in paragraph (2), the Secretary"; 
(B) in subsection (f)(1), as so designated— 
(i) by moving the remednder of the text 2 ems 
to the right; 
(ii) by striking "The Secretary may not" and insert-
ing "Neither the Secretary nor the Administrator ma}^"; 
and 
(iii) by striking "nor" and inserting "or"; and 
(C) by adding at the end the following: 
"(2) AUTHORITY OF THE ADMINISTRATOR.—The Adminis-
trator— 
"(A) is the final authority for canying out all functions, 
powers, and duties of the Administration relating to— 
"(i) the appointment and employment of all officers 
and employees of the Administration (other than Presi-
dential and political appointees); 
"(ii) the acquisition and maintenance of property 
and equipment of the Administration; 
"(iii) except as otherwise provided in paragraph 
(3), the promulgation of regulations, rules, orders, 
110 STAT. 3230 
PUBLIC LAW 104-264—OCT. 9, 1996 
circulars, bulletins, and other official publications of 
the Administration; and 
"(iv) any obligation imposed on the Administrator, 
or power conferred on the Administrator, by the Air 
Tr^fic Management System Performance Improve-
ment Act of 1996 (or any amendment made by that 
Act); 
"(B) shall offer advice and counsel to the President 
with respect to the appointment and qualifications of any 
officer or employee of the Administration to be appointed 
by the President or as a political appointee; 
"(C) may delegate, and authorize successive redelega-
tions of, to an officer or employee of the Administration 
any function, power, or duty conferred upon the Adminis-
trator, imless such delegation is prohibited by law; and 
"(D) except as otherwise provided for in this title, and 
notwithstanding any other provision of law, shall not be 
required to coordinate, submit for approval or concurrence, 
or seek the advice or views of the Secretary or any other 
officer or employee of the Department of Transportation 
on any matter with respect to which the Administrator 
is the final authority. 
"(3) DEFINITION OF POLITICAL APPOINTEE.—For purposes 
of this subsection, the term 'political appointee' means any 
individual who— 
"(A) is employed in a position listed in sections 5312 
through 5316 of title 5 (relating to the Executive Schedule); 
"(B) is a limited term appointee, limited emergency 
appointee, or noncareer appointee in the Senior Executive 
Service, as defined under paragraphs (5), (6), and (7), 
respectively, of section 3132(a) of title 5; or 
"(C) is employed in a position in tJie executive branch 
of the Government of a confidential or policy-determining 
character under schedule C of subpart C of part 213 of 
title 5 of the Code of Federal Regulations.". 
49 use 106 note. 
(b) PRESERVATION OF EXISTING AUTHORITY.—Nothing in this 
title or the amendments made by this title Umits any authority 
granted to the Administrator by statute or by delegation that was 
in effect on the day before the date of the enactment of this 
Act. 
SEC. 224. REGULATIONS. 
Section 106(f), as amended by section 223 of this Act, is further 
amended— 
(1) by redesignating paragraph (3) as paragraph (4); and 
(2) by inserting after paragraph (2) the following: 
"(3) REGULATIONS.— 
"(A) IN GENERAL.—In the performance of the functions 
of the Administrator and the Administration, the Adminis-
trator is authorized to issue, rescind, and revise such regu-
lations as are necessary to carry out those functions. Ilie 
issuance of such regulations shall be governed by the provi-
sions of chapter 5 of title 5. The Administrator shall act 
upon all petitions for rulemaking no later than 6 months 
after the date such petitions are filed by dismissing such 
petitions, by informing the petitioner of an intention to 
dismiss, or by issuing a notice of proposed rulemaking 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3231 
or advanced notice of proposed rulemaking. The Adminis-
trator shall issue a final regulation, or take other final 
action, not later than 16 months aft;er the last day of 
the public comment period for the regulations or, in the 
case of an advanced notice of proposed rulemaking, if 
issued, not later than 24 months after the date of publica-
tion in the Federal Register of notice of the proposed rule-
making. 
"(B) APPROVAL OF SECRETARY OF TRANSPORTATION.— 
(i) The Administrator may not issue a proposed regulation 
or final regulation that is likely to result in the expenditure 
by State, local, and tribal governments in the aggregate, 
or by the private sector, of $100,000,000 or more (adjusted 
annually for inflation beginning with the year following 
the date of the enactment of the Air Traffic Management 
System Performance Improvement Act of 1996) in any year, 
or any regulation which is significant, unless the Secretary 
of Transportation approves the issuance of the regulation 
in advance. For purposes of this paragraph, a regulation 
is significant if the Administrator, in consultation with 
the Secretary (as appropriate), determines that the regula-
tion is likely to— 
"(I) have an annual effect on the economy of 
$100,000,000 or more or adversely etffect in a material 
way the economy, a sector of the economy, productivity, 
competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or commu-
nities; 
"(II) create a serious inconsistency or otherwise 
interfere with an action taken or planned by another 
agency; 
"(III) materially alter the budgetary impact of 
entitlements, grants, user fees, or loan programs or 
the rights £ind obligations of recipients thereof; or 
"(IV) raise novel legal or policy issues arising out 
of legal mandates. 
"(ii) In an emergency, the Administrator may issue 
a regulation described in clause (i) without prior approval 
by the Secretary, but any such emergency regulation is 
subject to ratification by the Secretary after it is issued 
and shall be rescinded by the Administrator within 5 days 
(excluding Saturdays, Sundays, and legal public holidays) 
after issuance if the Secretary fails to ratify its issuance, 
"(iii) Any regulation that does not meet the criteria 
of clause (i), and any regulation or other action that is 
a routine or fi'equent action or a procedural action, may 
be issued by the Administrator without review or approval 
by the Secretary. 
"(iv) The Administrator shall submit a copy of any 
regulation requiring approval by the Secretary under clause 
(i) to the Secretary, who shall either approve it or return 
it to the Administrator with comments within 45 days 
after receiving it, 
"(C) PERIODIC REVIEW,—(i) Beginning on the date 
which is 3 years after the date of the enactment of the 
Air Traffic Management System Performance Improvement 
Act of 1996, the Administrator shall review any unusually 
110 STAT. 3232 
PUBLIC LAW 104-264—OCT. 9, 1996 
burdensome regulation issued by the Administrator after 
such date of enactment beginning not later than 3 years 
after the effective date of the regulation to determine if 
the cost assumptions were accurate, the benefit of the 
regulations, and the need to continue such regulations in 
force in their present form. 
"(ii) The Administrator may identify for review under 
the criteria set forth in clause (i) unusually burdensome 
regulations that were issued before the date of the enact-
ment of the Air Traffic Management System Performance 
Improvement Act of 1996 £uid that have been in force 
for more than 3 years. 
"(iii) For purposes of this subparagraph, the term 
'unusually burdensome regulation' means any regulation 
that results in the annual expenditure by State, local, 
£ind tribal governments in the aggregate, or by the private 
sector, of $25,000,000 or more (adjusted annually for infla-
tion beginning with the year following the date of the 
enactment of the Air Traffic Management System Perform-
ance Act of 1996) in any year. 
"(iv) The periodic review of regulations may be per-
formed by advisory committees and the Management 
Advisory Council established under subsection (p).". 
SEC. 225. PERSONNEL AND SERVICES. 
Section 106 is amended by adding at the end the following: 
"(1) PERSONNEL AND SERVICES.— 
"(1) OFFICERS AND EMPLOYEES.—Except as provided in sec-
tion 40122(a) of this title and section 347 of PubKc Law 104-
50, the Administrator is authorized, in the performance of 
the functions of the Administrator, to appoint, transfer, and 
fix the compensation of such officers and employees, including 
attorneys, as may be necessary to carry out the functions of 
the Administrator and the Administration. In fixing compensa-
tion and benefits of officers and employees, the Administrator 
shsill not engage in any type of bargaining, except to the extent 
provided for in section 40122(a), nor shall the Administrator 
be boimd by any requirement to estabhsh such compensation 
or benefits at particular levels. 
"(2) EXPERTS AND CONSULTANTS.—The Administrator is 
authorized to obtain the services of experts and consultants 
in accordance with section 3109 of title 5. 
"(3) 
TRANSPORTATION AND 
PER 
DIEM 
EXPENSES.—The 
Administrator is authorized to pay transportation expenses, 
and per diem in lieu of subsistence expenses, in accordance 
with chapter 57 of title 5. 
"(4) 
USE OF PERSONNEL FROM OTHER AGENCIES.—The 
Administrator is authorized to utilize the services of personnel 
of any other Federal agency (as such term is defined imder 
section 551(1) of title 5). 
"(5) VOLUNTARY SERVICES.— 
"(A) GENERAL RULE.—In exercising the authority to 
accept gifts and voluntary services under section 326 of 
this title, and without regard to section 1342 of title 31, 
the Administrator may not accept voluntary and uncompen-
sated services if such services are used to displace Federed 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3233 
employees employed on a full-time, part-time, or seasonal 
basis. 
"(B) 
INCIDENTAL 
EXPENSES.—The Administrator 
is 
authorized to provide for incidental expenses, including 
transportation, lodging, and subsistence, for volunteers who 
provide volunt£iry services under this subsection. 
"(C) LIMITED TREATMENT AS FEDERAL EMPLOYEES.— 
An individual who provides voluntary services imder this 
subsection shall not be considered a Federal employee for 
any purpose other than for purposes of chapter 81 of title 
5, relating to compensation for work injuries, and chapter 
171 of title 28, relating to tort claims.". 
SEC. 226. CONTRACTS. 
Section 106(1), as added by section 225 of this Act, is further 
amended by adding at the end the following: 
"(6) CONTRACTS.—The Administrator is authorized to enter 
into and perform such contracts, leases, cooperative agreements, 
or other transactions as may be necessary to carry out the 
functions of the Administrator and the Administration. The 
Administrator may enter into such contracts, leases, cooperative 
agreements, and other transactions with any Federal agency 
(as such term is defined in section 551(1) of title 5) or any 
instrumentality of the United States, any State, territory, or 
possession, or political subdivision thereof, any other govern-
mental entity, or any person, firm, association, corporation, 
or educational institution, on such terms and conditions as 
the Administrator may consider appropriate.". 
SEC. 227. FACILITIES. 
Section 106, as amended by section 225 of this Act, is further 
amended by adding at the end the following: 
"(m) COOPERATION BY ADMINISTRATOR.—With the consent of 
appropriate officials, the Administrator may, with or without 
reimbursement, use or accept the services, equipment, personnel, 
and facilities of any other Federal agency (as such term is defined 
in section 551(1) of title 5) and any other public or private entity. 
The Administrator may also cooperate with appropriate officials 
of other public and private agencies and instnmientalities concern-
ing the use of services, equipment, personnel, and facilities. The 
head of each Federal agency shall cooperate with the Administrator 
in making the services, equipment, personnel, and facilities of the 
Federal agency available to the Administrator. The head of a Fed-
eral agency is authorized, notwithstanding any other provision of 
law, to transfer to or to receive from the Administration, without 
reimbursement, supplies and equipment other than administrative 
supplies or equipment.". 
SEC. 228. PROPERTY. 
Section 106, as amended by section 227 of this Act, is further 
amended by ad(Ung at the end the following: 
"(n) ACQUISITION.— 
"(1) IN GENERAL.—^The Administrator is authorized— 
"(A) to acquire (by purchase, lease, condemnation, or 
otherwise), 
construct, 
improve, 
repair, 
operate, and 
maintain— 
"(i) air traffic control facilities and equipment; 
"(ii) research and testing sites and facilities; and 
110 STAT. 3234 
PUBLIC LAW 104-264—OCT. 9, 1996 
"(iii) such other real and personal property (includ-
ing office space and patents), or any interest therein, 
within and outside the continental United States as 
the Administrator considers necessary; 
"(B) to lease to others such real and personal 
property; and 
"(C) to provide by contract or otherwise for eating 
facilities ana other necessary facilities for the welfare of 
employees of the Administration at the installations of 
the Administration, and to acquire, operate, and maintain 
equipment for these facilities. 
"(2) TITLE.—Title to any property or interest therein 
acquired pursuant to this subsection shall be held by the 
Government of the United States.". 
SEC. 229. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES. 
Section 106, as amended by section 228 of this Act, is further 
amended by adding at the end the following: 
"(o) TRANSFERS OF FUNDS.—The Administrator is authorized 
to accept transfers of unobligated balances and unexpended bal-
ances of funds appropriated to other Federal agencies (as such 
term is defined in section 551(1) of title 5) to ceirry out fiinctions 
transferred by law to the Administrator or functions transferred 
pursuant to law to the Administrator on or after the date of the 
enactment of the Air Traffic Management System Performance 
Improvement Act of 1996.". 
SEC. 230. MANAGEMENT ADVISORY COUNCIL. 
Section 106, as amended by section 229 of this Act, is further 
amended by adding at the end the following: 
"(p) MANAGEMENT ADVISORY COUNCIL.— 
"(1) ESTABLISHMENT.—Within 3 months after the date of 
the enactment of the Air Traffic Management System Perform-
ance Improvement Act of 1996, the Acuninistrator shedl estab-
lish an advisory council which shall be known as the Federal 
Aviation Management Advisory Council (in this subsection 
referred to as tiie 'Council'). With respect to Administration 
management, policy, spending, funding, and regulatory matters 
affecting the aviation industry, the Council may submit com-
ments, recommended modifications, £uid dissenting views to 
the Administrator. The Administrator shall include in any 
submission to Congress, the Secretary, or the general public, 
and in any submission for publication in the Federal Register, 
a description of the comments, recommended modifications, 
and dissenting views received from the Council, together with 
the reasons for any differences between the views of the Council 
and the views or actions of the Administrator. 
"(2) MEMBERSHIP.—The Council shall consist of 15 mem-
bers, who shall consist of— 
"(A) a designee of the Secretary of Transportation; 
"(B) a designee of the Secretary of Defense; and 
"(C) 13 members representing aviation 
interests, 
appointed by the President by and with the advice and 
consent of the Senate, 
"(3) QUALIFICATIONS.—No member appointed under para-
graph (2)(C) may serve as an officer or employee of the United 
States Government while serving as a member of the Coimcil. 
"(4) FUNCTIONS.— 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3235 
"(A) IN GENERAL.—(i) The Council shall provide advice 
and counsel to the Administrator on issues which affect 
or are affected by the operations of the Administrator. 
The Council shall function as an oversight resource for 
management, policy, spending, and regulatory matters 
under the jurisdiction of the Administration. 
"(ii) The Council shall review the rulemaking cost-
benefit analysis process and develop recommendations to 
improve the analysis £ind ensure that the public interest 
is ftilly protected. 
"(iii) The Council shall review the process through 
which the Administration determines to use advisory circu-
Isirs and service bulletins. 
"(B) MEETINGS.—The Council sh£dl meet on a regular 
and periodic basis or at the call of the chairman or of 
the Administrator. 
"(C) ACCESS TO DOCUMENTS AND STAFF.—The Adminis-
tration may give the Council appropriate access to relevant 
documents and personnel of the Administration, and the 
Administrator shall m£ike available, consistent with the 
authority to withhold commercial and other proprietary 
information under section 552 of title 5 (commonly known 
as the 'Freedom of Information Act'), cost data associated 
with the acquisition and operation of air traffic service 
systems. Any member of the Council who receives commer-
cial or other proprietary data from the Administrator shall 
be subject to the provisions of section 1905 of title 18, 
pertaining to unauthorized disclosure of such information. 
"(5) FEDERAL ADVISORY COMMITTEE ACT NOT TO APPLY.— 
The Federal Advisory Committee Act (5 U.S.C. App.) does not 
apply to the Council or such aviation rulemaking committees 
as the Administrator shall designate. 
"(6) ADMINISTRATIVE MATTERS.— 
"(A) TERMS OF MEMBERS.—(i) Except as provided in 
subparagraph (B), members of the Council appointed by 
the President under paragraph (2)(C) shall be appointed 
for a term of 3 years. 
"(ii) Of the members first appointed by the President— 
"(I) 4 shall be appointed for terms of 1 year; 
"(II) 5 shall be appointed for terms of 2 years; 
and 
"(III) 4 shall be appointed for terms of 3 years. 
"(iii) An individual chosen to fill a vacancy shall be 
appointed for the unexpired term of the member replaced. 
"(iv) A member whose term expires shall continue to 
serve until the date on which the member's successor takes 
office. 
"(B) CHAIRMAN; VICE CHAIRMAN.—The Council shall 
elect a chair and a vice chair from among the members 
appointed under paragraph (2)(C), each of whom shall serve 
for a term of 1 year. The vice chair shall perform the 
duties of the chairman in the absence of the chairman. 
"(C) TRAVEL AND PER DIEM.—Each member of the 
Council shall be paid actual travel expenses, and per diem 
in lieu of subsistence expenses when away from his or 
her usual place of residence, in accordance with section 
5703 of title 5. 
29-194 O - 96 - 6: QL 3 Part 5 
110 STAT. 3236 
PUBLIC LAW 104-264—OCT. 9, 1996 
"(D) DETAIL OF PERSONNEL FROM THE ADMINISTRA-
TION.—The Administrator shall make available to the 
Council such staff, information, and administrative services 
and assistance as may reasonably be required to enable 
the Council to carry out its responsibilities under this 
subsection.". 
Subtitle B—^Federal Aviation 
Administration Streamlining Programs 
49 use 40110 
SEC. 251. REVIEW OF ACQUISITION MANAGEMENT SYSTEM. 
Not later than April 1, 1999, the Administrator shall employ 
outside experts to provide an independent evaluation of the 
effectiveness of the Administration's acquisition management sys-
Reports. 
tem within 3 months after such date. The Administrator shall 
transmit a copy of the evaluation to the Committee on Commerce, 
Science, and TYansportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives. 
SEC. 252. Am TRAFFIC CONTROL MODERNIZATION REVIEWS. 
Chapter 401 is amended by adding at the end the following: 
''§ 40121. Air traffic control modernization reviews 
"(a) REQUIRED TERMINATIONS OF ACQUISITIONS.—The Adminis-
trator of the Federgd Aviation Administration shall terminate any 
acquisition program initiated after the date of the enactment of 
the Air Traffic Management System Performance Improvement Act 
of 1996 and funded under the FaciUties and Equipment account 
tha1>-
"(1) is more than 50 percent over the cost goal established 
for the program; 
"(2) fails to achieve at least 50 percent of the performance 
goals established for the program; or 
"(3) is more than 50 percent behind schedule as determined 
in accordance with the schedule goal established for the 
program. 
^b) AUTHORIZED TERMINATION OF ACQUISITION PROGRAMS.— 
The Administrator shall consider terminating, under the authority 
of subsection (a), any substantial acquisition program that— 
"(1) is more than 10 percent over the cost goal established 
for the program; 
"(2) fails to achieve at least 90 percent of the performance 
goals established for the program; or 
"(3) is more than 10 percent behind schedule as determined 
in accordance with the schedule goal established for the 
program. 
"(c) EXCEPTIONS AND REPORT.— 
"(1) CONTINUANCE OF PROGRAM, ETC.—Notwithstanding 
subsection (a), the Administrator may continue an acquisitions 
program required to be terminated under subsection (a) if the 
Administrator determines that termination would be inconsist-
ent with the development or operation of the national air 
transportation system in a safe and efficient manner. 
"(2) DEPARTMENT OF DEFENSE.—The Department of Defense 
shall have the same exemptions from acquisition laws as are 
waived by the Administrator under section 348(b) of Public 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3237 
Law 104-50 when engaged in joint actions to improve or replen-
ish the national air trsSfic control system. The Administration 
may acquire real property, goods, and services through the 
Department of Defense, or other appropriate agencies, but is 
bound by the acquisition laws and regulations governing those 
cases. 
"(3) REPORT.—If the Administrator makes a determination 
imder peiragraph (1), the Administrator shall transmit a copy 
of the determination, together with a statement of the basis 
for the determination, to the Committees on Appropriations 
of the Senate and the House of Representatives, the Committee 
on Commerce, Science, and Transportation of the Senate, and 
the Committee on Transportation and Infrastructure of the 
House of Representatives. . 
SEC. 
253. FEDERAL 
AVIATION 
ADMINISTRATION 
PERSONNEL 
MANAGEMENT SYSTEM. 
Chapter 401, as amended by section 252 of this Act, is further 
amended by adding at the end the following: 
^§40122. Federal 
Aviation 
Administration 
personnel 
management system 
"(a) IN GENERAL.— 
"(1) CONSULTATION AND NEGOTIATION.—In developing and 
making changes to the personnel management system initially 
implemented by the Administrator of the Federal Aviation 
Administration on April 1, 1996, the Administrator shall nego-
tiate with the exclusive bargaining representatives of employees 
of the Administration certified under section 7111 of title 5 
and consult with other employees of the Administration. 
"(2) MEDIATION.—If the Administrator does not reach an 
agreement under paragraph (1) with the exclusive bargaining 
representatives, the services of the Federal Mediation and 
Conciliation Service shaU be used to attempt to reach such 
agreement. If the services of the Federal Mediation and Concil-
iation Service do not lead to an agreement, the Administrator's 
proposed change to the personnel management system shall 
not take effect mitil 60 days have elapsed after the Adminis-
trator has transmitted the proposed change, along with the 
objections of the exclusive bargaining representatives to the 
change, and the reasons for such objections, to Congress. 
"(3) 
COST 
SAVINGS 
AND PRODUCTiviTy 
GOALS.—The 
Administration and the exclusive bargaining representatives 
of the employees shall use every reasonable effort to find cost 
savings and to increase productivity within each of the affected 
bargaining units. 
"(4) ANNUAL BUDGET DISCUSSIONS.—The Administration 
and the exclusive bargaining representatives of the employees 
shall meet annually for the purpose of finding additional cost 
savings within the Administration's annual budget as it appHes 
to each of the affected bsirgaining units and throughout the 
agency. 
"(b) EXPERT EVALUATION.—On the date that is 3 years after 
the personnel management system is implemented, the Administra-
tion shall employ outside experts to provide an independent evalua-
tion of the effectiveness of the system within 3 months after such 
date. For this purpose, the Administrator may utilize the services 
110 STAT. 3238 
PUBLIC LAW 104-264r-OCT. 9, 1996 
of experts and consultants under section 3109 of title 5 without 
regard to the limitation imposed by the last sentence of section 
3109(b) of such title, and may contract on a sole source basis, 
notwithstanding any other provision of law to the contrary. 
"(c) PAY RESTRICTION.—No officer or employee of the Adminis-
tration may receive sin annual rate of basic pay in excess of the 
annual rate of basicpay payable to the Administrator. 
"(d) ETHICS.—The Administration shsill be subject to Executive 
Order No. 12674 and regulations and opinions promulgated by 
the Office of Grovemment Ethics, including those set forth in section 
2635 of title 5 of tfie Code of Federal Regulations. 
"(e) EMPLOYEE PROTECTIONS.—Until July 1, 1999, basic wages 
(including locality pay) and operational differential pay provided 
employees of the Administration shall not be involuntarily adversely 
affected by reason of the enactment of this section, except for 
unacceptable performance or by reason of a reduction in force 
or reorg£inization or by agreement between the Administration and 
the affected employees' exclusive bargaining representative. 
"(f) LABOR-MANAGEMENT AGREEMENTS.—Except as otherwise 
provided by this title, all labor-management agreements covering 
employees of the Administration that are in effect on the effective 
date of the Air Traffic Management System Performance Improve-
ment Act of 1996 shaU remain in effect until their normal expiration 
date, unless the Administrator and the exclusive bargaining rep-
resentative agree to the contrary.". 
SEC. 254. CONFORMING AMENDMENT. 
The table of sections for chapter 401 is amended by adding 
at the end the following: 
"40121. Air traffic control modernization reviews. 
"40122. Federal Aviation Administration personnel management system.". 
Subtitle C—System To Fund Certain 
Federal Aviation Administration Functions 
49 use 40101 
SEC. 271. FINDINGS. 
Congress finds the following: 
(1) The Administration is recognized throughout the world 
as a leader in aviation sEifety. 
(2) The Administration certifies aircraft, engines, propel-
lers, and other manufactured parts. 
(3) The Administration certifies more than 650 training 
schools for pilots and nonpilots, more than 4,858 repair stations, 
and more than 193 maintenance schools. 
(4) The Administration certifies pilot exeiminers, who are 
then qualified to determine if a person has the skills necessary 
to become a pilot. 
(5) The Administration certifies more than 6,000 medical 
examiners, each of whom is then qualified to medically certify 
the qualifications of pilots and nonpilots. 
(6) The Administration certifies more than 470 airports, 
and provides a limited certification for another 205 airports. 
Other airports in the United States are also reviewed by the 
Administration. 
(7) The Administration each year performs more than 
355,000 inspections. 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3239 
(8) The Administration issues more than 655,000 pilot's 
Ucenses and more than 560,000 nonpilot's licenses (including 
mechanics). 
(9) The Administration's certification means that the 
product meets world-wide recognized standards of safety and 
reliability. 
(10) The Administration's certification means aviation-
related equipment and services meet world-wide recognized 
standards. 
(11) The Administration's certification is recognized by 
governments and businesses throughout the world and as such 
may be a valuable element for any company desiring to sell 
aviation-related products throughout the world. 
(12) The Administration's certification may constitute a 
valuable license, fi-anchise, privilege or benefits for the holders. 
(13) The Administration also is a major purchaser of 
comnputers, radars, and other systems needed to run the air 
traffic control system. The Administration's design, acceptance, 
commissioning, or certification of such equipment enables the 
private sector to market those products around the world, and 
as such confers a benefit on the manufacturer. 
(14) The Administration provides extensive services to 
public use aircraft. 
SEC. 272. PURPOSES. 
' 
49 USC 40101 
The purposes of this subtitle are— 
(1) to provide a financial structure for the Administration 
so that it will be able to support the future growth in the 
national aviation and airport system; 
(2) to review existing and alternative funding options, 
including incentive-based fees for services, and establish a pro-
gram to improve air traffic management system performance 
and to establish appropriate levels of cost accountability for 
air traffic management services provided by the Administration; 
(3) to ensure that any funding will be dedicated solely 
for the use of the Administration; 
(4) to authorize the Administration to recover the costs 
of its services fi-om those who benefit from, but do not contribute 
to, the national aviation system and the services provided by 
the Administration; 
(5) to consider a fee system based on the cost or value 
of the services provided and other funding alternatives; 
(6) to develop funding ^tions for Congress in order to 
provide for the long-term efficient and cost-effective support 
of the Administration and the aviation system; and 
(7) to achieve a more efficient and effective Administration 
for the benefit of the aviation transportation industry. 
SEC. 273. USER FEES FOR VARIOUS FEDERAL AVIATION ADMINISTRA-
TION SERVICES. 
(a) IN GENERAL.—Chapter 453 is amended by striking section 
45301 and inserting the following: 
'*§ 45301. General provisions 
"(a) SCHEDULE OF FEES.—The Administrator shall estabUsh 
a schedule of new fees, and a collection process for such fees, 
for the following services provided by the Administration: 
110 STAT. 3240 
PUBLIC LAW 104-264—OCT. 9, 1996 
Federal Register, 
publication. 
49 use 40101 
note. 
"(1) Air traffic control and related services provided to 
aircraft other than military and civilian aircraft of the United 
States government or of a foreign government that neither 
take off from, nor land in, the United States. 
"(2) Services (other thsm air traffic control services) 
provided to a foreign government. 
"(b) LIMITATIONS.— 
"(1) 
AUTHORIZATION 
AND IMPACT 
CONSIDERATIONS.—In 
establishing fees under subsection (a), the Administrator— 
"(A) is authorized to recover in fiscal year 1997 
$100,000,000; and 
"(B) shall ensure that each of the fees required by 
subsection (a) is directly related to the Administration's 
costs of providing the service rendered. Services for which 
costs may be recovered include the costs of air traffic con-
trol, navigation, weather services, training and emergency 
services which are available to facilitate safe transportation 
over the United States, and other services provided by 
the Administrator or by programs financed by the Adminis-
trator to ffights that neither take off nor land in the United 
States. 
"(2) PUBLICATION; COMMENT.—The Administrator shall pub-
lish in the Federal Register an initial fee schedule and associ-
ated collection process as an interim final rule, pursuant to 
which public comment will be sought and a final rule issued. 
"(c) USE OF EXPERTS AND CONSULTANTS.—In developing the 
system, the Administrator may consult with such nongovernmental 
experts as the Administrator may employ and the Administrator 
may utilize the services of experts and consultants under section 
3109 of title 5 without regard to the limitation imposed by the 
last sentence of section 3109(b) of such title, eind may contract 
on a sole source basis, notwithstanding any other provision of 
law to the contrary. Notwithstanding any other provision of law 
to the contrary, the Administrator may retain such experts under 
a contract awarded on a basis other than a competitive basis 
Eind without regard to any such provisions requiring competitive 
bidding or precluding sole source contract authority.". 
(b) CONFORMING AMENDMENT.—The table of sections for chapter 
453 is amended by striking the item relating to section 45301 
and inserting the following: 
"45301. General provisions.". 
SEC. 274. INDEPENDENT ASSESSMENT OF FAA FINANCIAL REQUIKE-
MENTS; ESTABLISHMENT OF NATIONAL CIVIL AVIATION 
REVIEW COMMISSION. 
(a) INDEPENDENT ASSESSMENT.— 
(1) INITIATION.—Not later than 30 days after the date of 
the enactment of this Act, the Administrator shall contract 
with £in entity independent of the Administration and the 
Department of Transportation to conduct a complete independ-
ent assessment of the financial requirements of the Administra-
tion through the year 2002. 
(2) ASSESSMENT CRITERIA.—The Administrator shall pro-
vide to the independent entity estimates of the 
financial 
requirements of the Administration for the period described 
in paragraph (1), using as a base the fiscal year 1997 appropria-
tion levels established by Congress. The independent assess-
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3241 
ment shall be based on an objective ansilysis of agency funding 
needs. 
(3) CERTAIN FACTORS TO BE TAKEN INTO ACCOUNT.—The 
independent assessment shall take into account all relevant 
factors, including— 
(A) anticipated air traffic forecasts; 
(B) other workload measures; 
(C) estimated 
productivity gains, if any, which 
contribute to budgetary requirements; 
(D) the need for programs; and 
(E) the need to provide for continued improvements 
in all facets of aviation safety, along with operational 
improvements in air traffic control. 
(4) COST ALLOCATION.—^The independent assessment shall 
also assess the costs to the Administration occasioned by the 
provision of services to each segment of the aviation system. 
(5) DEADLINE.—^The independent assessment shall be com-
pleted no later than 90 days after the contract is awarded, 
£md shall be submitted to tiie Commission established under 
subsection (b), the Secretary, the Secretary of the Treasury, 
the Committee on Commerce, Science, and Transportation and 
the Committee on Finance of the Senate, and the Committee 
on Transportation and Infrastructure and the Committee on 
Ways and Means of the House of Representatives. 
(b) NATIONAL CIVIL AVIATION REVIEW COMMISSION.— 
(1) ESTABLISHMENT.—^There is established a commission 
to be known as the National Civil Aviation Review Commission 
Oiereinafter in this section referred to as the "Commission"). 
(2) MEMBERSHIP.—The Commission shall consist of 21 
members to be appointed as follows: 
(A) 13 members to be appointed by the Secretary, 
in consultation with the Secretary of the Treasury, from 
among individuals who have expertise in the aviation 
industry and who are able, collectively, to represent a 
balanced view of the issues important to general aviation, 
major air carriers, air cargo carriers, regional air carriers, 
business aviation, airports, aircrsift manufacturers, the 
financial community, aviation industry workers, and airline 
passengers. At least one member appointed under this 
subparagraph shall have detailed knowledge of the congres-
sional budgetary process. 
(B) Two members appointed by the Speaker of the 
House of Representatives. 
(C) Two members appointed by the minority leader 
of the House of Representatives. 
(D) Two members appointed by the majority leader 
of the Senate. 
(E) Two members appointed by the minority leader 
of the Senate. 
(3) TASK FORCES.—^The Commission shall establish an avia-
tion ftmding task force and an aviation safety task force to 
carry out the responsibilities of the Commission under this 
subsection. 
(4) FIRST MEETING.—^The Commission may conduct its first 
meeting as soon as a majority of the members of the Commis-
sion are appointed. 
(5) HEARINGS AND CONSULTATION.— 
110 STAT. 3242 
PUBLIC LAW 104-264—OCT. 9, 1996 
(A) HEARINGS,—The Commission shall take such testi-
mony and solicit and receive such comments from the public 
and other interested parties as it considers appropriate, 
shall conduct 2 public hearings after affording adequate 
notice to the public thereof, and may conduct such addi-
tional hearings as may be necessary. 
(B) CONSULTATION.—The Commission shall consult on 
a regular and frequent basis with the Secretary, the Sec-
retary of the Treasury, the Committee on Commerce, 
Science, and Transportation and the Committee on Finance 
of the Senate, £ind the Committee on Transportation and 
Infrastructure £ind the Committee on Ways eind Means 
of the House of Representatives. 
(C) FACA NOT TO APPLY.—The Commission shall not 
be considered an advisory committee for purposes of the 
Federal Advisory Committee Act (5 U.S.C. App.). 
(6) DUTIES OF AVIATION FUNDING TASK FORCE.— 
(A) REPORT TO SECRETARY.— 
(i) IN GENERAL.—The aviation funding task force 
established pursuant to paragraph (3) shall submit 
a report setting forth a comprehensive analysis of the 
Administration's budgetary requirements through fis-
cal year 2002, based upon the independent assessment 
under subsection (a), that sinalyzes alternative financ-
ing and fiinding means for meeting the needs of the 
aviation system through the year 2002. The task force 
shall submit a preliminary report of that analysis to 
the Secretary not later than 6 months after the 
independent assessment is completed under subsection 
(a). The Secretary shall provide comments on the 
preliminary report to the task force within 30 days 
eifter receiving the report. The task force shall issue 
a final report of such comprehensive analysis within 
30 days after receiving the Secretary's comments on 
its preliminary report. 
(ii) CONTENTS.—The report submitted by the 
aviation fiinding task force under clause (i)— 
(I) shall consider the independent assessment 
under subsection (a); 
(II) shall consider estimated cost savings, if 
any, resulting from the procurement and personnel 
reforms included in this Act or in sections 347 
and 348 of Public Law 104-50, and additional 
financial initiatives; 
(III) shall include specific recommendations to 
Congress on how the Administration can reduce 
costs, raise additional revenue for the support of 
agency operations, and accelerate modernization 
efforts; and 
(IV) shall include a draft biU containing the 
chsinges in law necessary to implement 
its 
recommendations. 
(B) RECOMMENDATIONS.—The aviation fimding task 
force shall make such recommendations under subpara-
graph (A)(ii)(III) as the task force deems appropriate. Those 
recommendations may include— 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3243 
(i) proposals for off-budget treatment of the Airport 
and Airway Trust Fund; 
(ii) alternative financing and funding propossds, 
including linked financing proposals; 
(iii) modifications to existing levels of Airport and 
Airways Trust Fund receipts and taxes for each type 
of tax; 
(iv) establishment of a cost-based user fee system 
based on, but not limited to, criteria under subpara-
graph (F) and methods to ensure that costs are borne 
by users on a fair and equitable basis; 
(v) methods to ensure that funds collected from 
the aviation commimity are able to meet the needs 
of the agency; 
(vi) methods to ensure that funds collected from 
the aviation community and passengers are used to 
support the aviation system; 
(vii) means of meeting the airport infrastructure 
needs for large, medium, and small airports; and 
(viii) any other matter the task force deems appro-
priate to address the funding and needs of the Adminis-
tration and the aviation system. 
(C) 
ADDITIONAL 
RECOMMENDATIONS.—The 
aviation 
funding task force report may also make recommendations 
concerning— 
(i) means of improving productivity by expanding 
and accelerating the use of automation and other tech-
nology; 
(ii) means of contracting out services consistent 
with this Act, other applicable law, and safety and 
national defense needs; 
(iii) methods to accelerate air traffic control mod-
ernization and improvements in aviation safety and 
safety services; 
(iv) the elimination of unneeded programs; and 
(v) a limited innovative program based on funding 
mechanisms such as loan guarantees, financial part-
nerships with for-profit private sector entities, govern-
ment-sponsored enterprises, £ind revolving loan funds, 
as a means of funding specific facilities said equipment 
projects, and to provide limited additional funding 
alternatives for edrport capacity development. 
(D) IMPACT ASSESSMENT FOR RECOMMENDATIONS.—For 
each recommendation contained in the aviation funding 
task force's report, the report shall include a full analysis 
and assessment of the impact implementation of the rec-
ommendation would have on— 
(i) safety; 
(ii) administrative costs; 
(iii) the congressional budget process; 
(iv) the economics of the industry (including the 
proportionate share of all users); 
(v) the ability of the Administration to utilize the 
sums collected; and 
(vi) the funding needs of the Administration. 
(E) TRUST FUND TAX RECOMMENDATIONS.—If the task 
force's report includes a recommendation that the existing 
110 STAT. 3244 
PUBLIC LAW 104-264—OCT. 9, 1996 
Airport and Airways Trust Fund tax structure be modified, 
the report shall— 
(i) state the specific rates for each group siffected 
by the proposed modifications; 
(ii) consider the impact such modifications shall 
have on specific users and the public (including pas-
sengers); and 
(iii) state the basis for the recommendations. 
(F) FEE SYSTEM RECOMMENDATIONS.—If the task force's 
report includes a recommendation that a fee system be 
established, including an air traffic control performance-
based user fee system, the report shall consider— 
(i) the impact such a recommendation would have 
on passengers, £iir fares (including low-fare, high fi*e-
quency service), service, and competition; 
(ii) existing contributions provided by individual 
air carriers toward funding the Administration and 
the air traffic control system through contributions 
to the Airport and Airways Trust Fund; 
(iii) continuing the promotion of fair and competi-
tive practices; 
(iv) the unique circumstances associated with 
interisland air carrier service in Hawaii and rural air 
service in Alaska; 
(v) the impact such a recommendation would have 
on service to small communities; 
(vi) the impact such a recommendation would have 
on services provided by regional air carriers; 
(vii) alternative methodologies for calculating fees 
so as to achieve a fair and reasonable distribution 
of costs of service among users; 
(viii) the usefulness of phased-in approaches to 
implementing such a financing system; 
(ix) mesins of assuring the provision of genersd 
fund contributions, as appropriate, toward the support 
of the Administration; and 
(x) the provision of incentives to encourage greater 
efficiency in the provision of air traffic services by 
the Administration and greater efficiency in the use 
of air traffic services by aircraft operators. 
(7) DUTIES OF AVIATION SAFETY TASK FORCE.— 
(A) REPORT TO ADMINISTRATOR.—Not later than 1 year 
after the date of the enactment of this Act, the aviation 
safety task force established pursuant to paragraph (3) 
shall submit to the Administrator a report setting forth 
a comprehensive analysis of aviation safety in the United 
States and emerging trends in the safety of particular 
sectors of the aviation industry. 
(B) CONTENTS.—The report to be submitted under 
subparagraph (A) shall include an assessment of— 
(i) the adequacy of staffing and training resources 
for safety personnel of the Administration, including 
safety inspectors; 
(ii) the Administration's processes for ensuring the 
public safety fi-om fi*audulent parts in civil aviation 
and the extent to which use of suspected unapproved 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3245 
parts reqmres additional oversight or enforcement 
action; and 
(iii) the abihty of the Administration to smticipate 
changes in the aviation industry and to develop policies 
and actions to ensure the highest level of aviation 
safety in the 21st century. 
(8) ACCESS TO DOCUMENTS AND STAFF.—The Administration 
may give the Commission appropriate access to relevant docu-
ments and personnel of the Administration, and the Adminis-
trator shall make available, consistent with the authority to 
withhold commercial and other proprietary information under 
section 552 of title 5, United States Code (commonly known 
as the "Freedom of Information Act"), cost data associated 
with the acquisition and operation of air traffic service systems. 
Any member of the Commission who receives commercial or 
other proprietary data from the Administrator shall be subject 
to tiie provisions of section 1905 of title 18, United States 
Code, pertaining to unauthorized disclosure of such information. 
(9) TRAVEL AND PER DIEM.—Each member of the Commis-
sion shaU be paid actual travel expenses, and per diem in 
lieu of subsistence expenses when away from his or her usual 
place of residence, in accordance with section 5703 of title 
5, United States Code. 
(10) DETAIL OF PERSONNEL FROM THE ADMINISTRATION.— 
The Administrator shsJl make avsdlable to the Commission 
such staff, information, and administrative services and assist-
ance as may reasonably be required to enable the Commission 
to carry out its responsibilities under this subsection. 
(11) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated such sums as may be necessary to 
carry out the provisions of this subsection. 
(c) REPORTS TO CONGRESS.— 
(1) REPORT BY THE SECRETARY BASED ON FINAL REPORT 
OF AVIATION FUNDING TASK FORCE.— 
(A) 
CONSIDERATION OF TASK FORCE'S PRELIMINARY 
REPORT.—Not later than 30 days after receiving the 
preliminary report of the aviation funding task force, the 
Secretary, in consultation with the Secretary of the Treas-
ury, shall furnish comments on the report to the task 
force. 
(B) REPORT TO CONGRESS.—Not later than 30 days 
after receiving the final report of the aviation funding 
task force, and in no event more than 1 year after the 
date of the enactment of this Act, the Secretary, after 
consulting the Secretary of the Treasury, shall transmit 
a report to the Committee on Commerce, Science, and 
Transportation and the Committee on Finance of the Sen-
ate, and the Committee on Transportation and Infrastruc-
ture and the Committee on Ways and Means of the House 
of Representatives. Such report shall be based upon the 
final report of the task force and shaU contain the Sec-
retards recommendations for funding the needs of the avia-
tion system through the year 2002. 
(C) CONTENTS.—The Secretary shall include in the 
report to Congress under subparagraph (B)— 
(i) a copy of the final report of the task force; 
and 
110 STAT. 3246 
PUBLIC LAW 104-264—OCT. 9, 1996 
(ii) a draft bill containing the changes in law nec-
essary to implement the Secretary's recommendations. 
Federal Register, 
(D) PUBLICATION.—The Secretary shall cause a copy 
publication. 
of the report to be printed in the Federal Register upon 
its transmittal to Congress imder subparagraph (B). 
(2) REPORT BY THE ADMINISTRATOR BASED ON FINAL REPORT 
OF AVIATION SAFETY TASK FORCE.—Not later than 30 days after 
receiving the report of the aviation safety task force, the 
Administrator shall transmit the report to Congress, together 
with the Administrator's recommendations for improving avia-
tion safety in the United States. 
(d) GAG AUDIT OF COST ALLOCATION.—The Comptroller Gen-
eral shall conduct an assessment of the manner in which costs 
for air traffic control services are allocated between the Administra-
tion and the Department of Defense. The Comptroller General 
shall report the results of the assessment, together with any rec-
ommendations the Comptroller General may have for reallocation 
of costs and for opportunities to increase the efficiency of air traffic 
control services provided by the Administration and by the Depart-
ment of Defense, to the Commission, the Administrator, the Sec-
retary of Defense, the Committee on Transportation and Infrastruc-
ture of the House of Representatives, and the Committee on Com-
merce, Science, and Transportation of the Senate not later than 
180 days after the date of the enactment of this Act. 
(e) GAG ASSESSMENT.—Not later than 180 days after the date 
of the enactment of this Act, the Comptroller General shall transmit 
to the Commission and Congress an independent assessment of 
airport development needs. 
SEC. 275. PROCEDURE FOR CONSIDERATION OF CERTAIN FUNDING 
PROPOSALS. 
(a) IN GENERAL.—Chapter 481 is amended by adding at the 
end the following: 
*
*
§ 48111. Funding proposals 
"(a) INTRODUCTION IN THE SENATE.—Within 15 days (not count-
ing any day on which the Senate is not in session) after a funding 
proposal is submitted to the Senate by the Secretary of Transpor-
tation under section 274(c) of the Air Traffic Management System 
Performance Improvement Act of 1996, an implementing bill with 
respect to such mnding proposal shall be introduced in the Senate 
by the majority leader of the Senate, for himself and the minority 
leader of the Senate, or by Members of the Senate designated 
by the majority leader and minority leader of the Senate. 
"(b) CONSIDERATION IN THE SENATE.—An implementing bill 
introduced in the Senate xinder subsection (a) shall be referred 
to the Committee on Commerce, Science, and Transportation. The 
Committee on Commerce, Science, and Trgmsportation shall report 
the bill with its recommendations within 60 days following the 
date of introduction of the bill. Upon the reporting of the bill 
by the Committee on Commerce, Science, and Transportation, the 
reported bill shall be referred sequentially to the Committee on 
Finance for a period of 60 legislative days. 
"(c) DEFINITIONS.—For purposes of this section, the following 
definitions apply: 
"(1) IMPLEMENTING BILL.—The term 'implementing bill' 
means only a bill of the Senate which is introduced as provided 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3247 
in subsection (a) with respect to one or more Federal Aviation 
Administration funding proposals which contain changes in 
existing laws or new statutory authority required to implement 
such funding proposal or proposals. 
"(2) FUNDING PROPOSAL.—The term 'funding proposal' 
means a proposal to provide interim or permanent funding 
for operations of the Federal Aviation Administration. 
"(d) RULES OF THE SENATE.—The provisions of this section 
are enacted— 
"(1) as an exercise of the rulemgiking power of the Senate 
and as such they are deemed a part of the rules of the Senate 
and they supersede other rules only to the extent that they 
are inconsistent therewith; and 
"(2) with full recognition of the constitutional right of the 
Senate to change the rules (so far as relating to the procedure 
of the Senate) at any time, in the same manner and to the 
same extent as in the case of any other rule of the Senate.", 
(b) CLERICAL AMENDMENT.—The table of sections for chapter 
481 is amended by adding at the end thereof the following: 
"48111. Funding proposals.". 
SEC. 276. ADMINISTRATIVE PROVISIONS. 
(a) IN GENERAL.—Chapter 453 is amended— 
(1) by redesignating section 45303 as section 45304; and 
(2) by inserting after section 45302 the following: 
^§ 45303. Administrative provisions 
"(a) FEES PAYABLE TO ADMINISTRATOR.—All fees imposed and 
amounts collected under this chapter for services performed, or 
materials furnished, by the Federal Aviation Administration are 
payable to the Administrator of the Federal Aviation Administra-
tion. 
"(b) REFUNDS.—^The Administrator may refund any fee paid 
by mistake or any amount paid in excess of that required. 
"(c) RECEIPTS CREDITED TO ACCOUNT.—Notwithstanding section 
3302 of title 31, all fees and amounts collected by the Administra-
tion, except insurance premiums and other fees charged for the 
provision of insurance and deposited in the Aviation Insurance 
Revolving Fund and interest earned on investments of such Fund, 
and except amounts which on September 30, 1996, are required 
to be credited to the general fund of the Treasury (whether imposed 
under this section or not)— 
"(1) shall be credited to a separate account established 
in the Treasury and made available for 
Administration 
activities; 
"(2) shall be available immediately for expenditure but 
only for congressionally authorized and intended purposes; and 
"(3) shall remain available until expended. 
"(d) 
ANNUAL 
BUDGET 
REPORT 
BY 
ADMINISTRATOR.—The 
Administrator shall, on the ssune day each year as the President 
submits the annual budget to Congress, provide to the Committee 
on Commerce, Science, and Transportation of the Senate and the 
Committee on Trsuisportation and Infrastructure of the House of 
Representatives— 
"(1) a list of fee collections by the Administration during 
the preceding fiscsd year; 
110 STAT. 3248 
PUBLIC LAW 104-264-OCT. 9, 1996 
"(2) a list of activities by the Administration during the 
preceding fiscal year that were supported by fee expenditures 
and appropriations; 
"(3) budget plans for significant programs, projects, £uad 
activities of the Administration, including out-year funding esti-
mates; 
"(4) any proposed disposition of surplus fees by the 
Administration; and 
"(5) such other information as those committees consider 
necessary. 
"(e) 
DEVELOPMENT 
OF COST 
ACCOUNTING 
SYSTEM.—The 
Administration shall develop a cost accounting system that ade-
quately and accurately reflects the investments, operating and over-
head costs, revenues, and other financial measurement and report-
ing aspects of its operations. 
"(i) COMPENSATION TO CARRIERS FOR ACTING AS COLLECTION 
Regulations. 
AGENTS.—^The Administration shall prescribe regulations to ensure 
that any air carrier required, pursuant to the Air Traffic Mginage-
ment System Performance Improvement Act of 1996 or any amend-
ments made by that Act, to collect a fee imposed on another party 
by the Administrator may collect from such other party an addi-
tional uniform amount that the Administrator determines reflects 
the necessary and reasonable expenses (net of interest accruing 
to the carrier after collection and before remittsmce) incurred in 
collecting and handling the fee.". 
(b) CONFORMING AMENDMENT.—^The table of sections for chapter 
453 is amended by striking the item relating to section 45303 
and inserting the following: 
"45303. Administrative provisions. 
"45304. Maximum fees for private person services.". 
SEC. 277. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY 
TRUST FUND ACnVITIES. 
(a) IN GENERAL.—^Part C of subtitle VII is amended by adding 
at the end the following: 
"CHAPTER 482—ADVANCE APPROPRIATIONS FOR 
AIRPORT AND AIRWAY TRUST FACILITIES 
"Sec. 
"48201. Advance appropriations. 
*
*
§ 48201. Advance appropriations 
"(a) MuLTiYEAR AUTHORIZATIONS.—^Beginning with fiscal year 
1999, any authorization of appropriations for an activity for which 
amounts are to be appropriated from the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue Code 
of 1986 shall provide funds for a period of not less than 3 fiscal 
years unless the activity for which appropriations are authorized 
is to be concluded before the end of that period. 
"(b) MuLTiYEAR APPROPRIATIONS.—Beginning with fiscal year 
1999, amounts appropriated from the Airport and Airway Trust 
Fund shall be appropriated for periods of 3 fiscal years rather 
than annusdly.". 
(b) CONFORMING AMENDMENT.—^The analysis for subtitle VII 
is amended by inserting after the item relating to chapter 481 
the following: 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3249 
"482. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY 
TRUST FACDLITIES 
48201.". 
SEC. 278. RURAL AIR SERVICE SURVIVAL ACT. 
(a) SHORT TITLE.—^This section may be cited as the **Rural 
Air Service Survival Act". 
(b) FINDINGS.—Congress finds that— 
(1) air service in rural areas is essential to a national 
and international transportation network; 
(2) the rural air service infrastructure supports the safe 
operation of all air travel; 
(3) rural air service creates economic benefits for all air 
carriers by making the national aviation system available to 
passengers from rural areas; 
(4) rural air service has suffered since deregulation; 
(5) the essential air service program under the Department 
of Transportation— 
(A) provides essential airline access to rural and iso-
lated rural communities throughout the Nation; 
(B) is necessary for the economic growth and develop-
ment of rural communities; 
(C) is a critical component of the national and inter-
nationsd transportation system of the United States; and 
(D) has endured serious funding cuts in recent years; 
and 
(6) a reliable source of funding must be established to 
maintain air service in rural areas and the essential air service 
program. 
(c) ESSENTIAL AIR SERVICE AUTHORIZATION.—Section 41742 is 
amended to read as follows: 
*
*
§ 41742. Essential air service authorization 
"(a) IN GENERAL.—Out of the amounts received by the Federal 
Aviation Administration credited to the account established under 
section 45303 of this title or otherwise provided to the Administra-
tion, the sum of $50,000,000 is authorized and shall be made 
available immediately for obligation and expenditure to carry out 
the essential air service program under this subchapter for each 
fiscal year. 
"(b) FUNDING FOR SMALL COMMUNITY AIR SERVICE,—Notwith-
standing any other provision of law, moneys credited to the account 
established under section 45303(a) of this title, including the funds 
derived from fees imposed under the authority contained in section 
45301(a) of this title, shall be used to carry out the essential 
air service program under this subchapter. Notwithstanding section 
47114(g) of this title, any amounts from those fees that are not 
obligated or expended at the end of the fiscal year for the purpose 
of funding the essential air service program under this subchapter 
shall be made available to the Administration for use in improving 
rural air safety under subchapter I of chapter 471 of this title 
and shall be used exclusively for projects at rural airports under 
this subchapter. 
"(c) SPECIAL RULE FOR FISCAL YEAR 1997.—Notwithstanding 
subsections (a) and (b), in fiscal year 1997, amounts in excess 
of $75,000,000 that are collected in fees pursuant to section 
45301(a)(1) of this title shall be available for the essential air 
service program under this subchapter, in addition to amounts 
specifically provided for in appropriations Acts.". 
49 use 40101 
note. 
49 use 41742 
note. 
110 STAT. 3250 
PUBLIC LAW 104-264—OCT. 9, 1996 
(d) CONFORMING AMENDMENT.—The table of sections for chapter 
417 is amended by striking the item relating to section 41742 
and inserting the following: 
"41742. Essential air service authorization.". 
TITLE III—AVIATION SECURITY 
49 use 44935 
note. 
49 use 44913 
note. 
SEC. 301. REPORT INCLUDING PROPOSED LEGISLATION ON FUNDING 
FOR AIRPORT SECURITY. 
(a) IN GENERAL.—Not later than 90 days after the date of 
the enactment of this Act, the Administrator of the Federal Aviation 
Administration, in cooperation with other appropriate persons, shall 
conduct a study and submit to Congress a report on whether, 
and if so how, to transfer certain responsibilities of air carriers 
imder Federal law for security activities conducted onsite at 
commercial service airports to airport operators or to the Federal 
Government or to provide for shared responsibilities between air 
carriers and airport operators or the Federal Government. 
(b) CONTENTS OF REPORT.—The report submitted imder this 
section shall— 
(1) examine potential sources of Federal and non-Federal 
revenue that may be used to fiind security activities, including 
providing grants from funds received as fees collected under 
a fee system established under subtitle C of title II of this 
Act and the amendments made by that subtitle; and 
(2) provide legislative proposals, if necessary, for accom-
plishing the transfer of responsibilities referred to in subsection 
(a). 
SEC. 302. CERTIFICATION OF SCREENING COMPANIES. 
The Administrator of the Federal Aviation Administration is 
directed to certify companies providing security screening and to 
improve the training and testing of security screeners through 
development of uniform performance standards for providing secu-
rity screening services. 
SEC. 303. WEAPONS AND EXPLOSIVE DETECTION STUDY. 
(a) IN GENERAL.—^The Administrator of the Federal Aviation 
Administration shall enter into an arrangement with the Director 
of the National Academy of Sciences (or if the National Academy 
of Sciences is not available, the head of another equivalent entity) 
to conduct a study in accordance to this section. 
(b) PANEL OF EXPERTS.— 
(1) IN GENERAL.—In carr5dng out a study under this section, 
the Director of the National Academy of Sciences (or the head 
of another equivalent entity) shall establish a panel (hereinafter 
in this section referred to as the "panel"). 
(2) EXPERTISE.—Each member of the panel shall have 
expertise in weapons and explosive detection technology, secu-
rity, air carrier and airport operations, or another appropriate 
Eirea. The Director of the National Academy of Sciences (or 
the head of another equivalent entity) shall ensure that the 
panel has an appropriate number of representatives of the 
areas specified in the preceding sentence. 
(c) STUDY.—^The panel, in consultation with the National 
Science and Technology Council, representatives of appropriate 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3251 
Federal agencies, and appropriate members of the private sector, 
shall— 
(1) assess the weapons and explosive detection technologies 
that are available at the time of the study that are capable 
of being effectively deployed in commercial aviation; 
(2) determine how the technologies referred to in paragraph 
(1) may more effectively be used for promotion and improvement 
of security at airport and aviation facilities £ind other secured 
areas; 
(3) assess the cost and advisability of requiring hardened 
cargo containers as a way to enhance aviation security and 
reduce the required sensitivity of bomb detection equipment; 
and 
(4) on the basis of the assessments and determinations 
made under paragraphs (1), (2), and (3), identify the most 
promising technologies for the improvement of the efficiency 
and cost-effectiveness of weapons and explosive detection. 
(d) COOPERATION.—The National Science sind Technology Coun-
cil shall take such actions as may be necessary to facilitate, to 
the maximum extent practicable and upon request of the Director 
of the National Academy of Sciences (or the head of another equiva-
lent entity), the cooperation of representatives of appropriate Fed-
eral agencies, as provided for in subsection (c), in providing the 
pamiel, for the study under this section— 
(1) expertise; and 
(2) to the extent allowable by law, resources and faciUties. 
(e) REPORTS.—^The Director of the National Academy of Sciences 
(or the head of ginother equivalent entity) shall, pursuant to an 
£irrangement entered into under subsection (a), submit to the 
Administrator such reports as the Administrator considers to be 
appropriate. Upon receipt of a report under this subsection, the 
Administrator shall submit a copy of the report to the appropriate 
committees of Congress. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for each of fiscal years 1997 through 2001 
such sums as may be necessary to carry out this section. 
SEC. 304. REQUIREMENT FOR CRIMINAL HISTORY RECORDS CHECKS. 
(a) IN GENERAL.—Section 44936(a)(1) is amended— 
(1) by redesignating subparagraphs (A) and (B) as clauses 
(i) and (ii), respectively; 
(2) by striking "(1)" and inserting "(1)(A)"; and 
(3) by adding at the end the following: 
"(B) The Administrator shall require by regulation that an 
employment investigation (including a criminal history record check 
in any case described in subparagraph (C)) be conducted for— 
"(i) individuEds who will be responsible for screening pas-
sengers or property under section 44901 of this title; 
"(ii) supervisors of the individuals described in clause (i); 
and 
"(iii) such other individuals who exercise security functions 
associated with baggage or cargo, as the Administrator deter-
mines is necessary to ensure air transportation security. 
"(C) Under the regulations issued under subparagraph (B), 
a criminal history record check shall be conducted in any case 
in which— 
110 STAT. 3252 
PUBLIC LAW 104-264—OCT. 9, 1996 
49 use 44936 
note. 
49 use 44901 
note. 
"(i) an employment investigation reveals a gap in employ-
ment of 12 months or more that the individual who is the 
subject of the investigation does not satisfactorily account for; 
"(ii) such individual is unable to support statements made 
on the application of such individual; 
"(iii) there are significant inconsistencies in the information 
provided on the application of such individual; or 
"(iv) information becomes available during the employment 
investigation indicating a possible conviction for one of the 
crimes listed in subsection (bXl)(B). 
"(D) If an individual requires a criminal history record check 
under subparagraph (C), the individual may be employed as a 
screener until the check is completed if the individual is subject 
to supervision.". 
(b) APPLICABILITY.—^The amendment made by subsection (a)(3) 
shall apply to individuals hired to perform functions described 
in section 44936(aXl)(B) of title 49, United States Code, after the 
date of the enactment of this Act; except that the Administrator 
of the Federal Aviation Administration may, as the Administrator 
determines to be appropriate, require such employment investiga-
tions or criminal history records checks for individuals performing 
those functions on the date of the enactment of this Act. 
SEC. 305. INTERIM DEPLOYMENT OF COMMERCIALLY AVAILABLE 
EXPLOSIVE DETECTION EQUIPMENT. 
(a) IN GENERAL.—Section 44913(a) is amended— 
(1) by redesignating paragraph (3) as paragraph (4); and 
(2) by inserting after paragraph (2) the following: 
"(3) Until such time as the Administrator determines that 
equipment certified under paragraph (1) is commercially available 
and has successfully completed operational testing as provided in 
paragraph (1), the Administrator shall facilitate the deplo3anent 
of such approved commercially available explosive detection devices 
as the Administrator determines will enhance aviation security 
significantly. The Administrator shall require that equipment 
deployed under this paragraph be replaced by equipment certified 
under paragraph (1) when equipment certified under paragraph 
(1) becomes commercially available. The Administrator is author-
ized, based on operational considerations at individual airports, 
to waive the required installation of commercially available equip-
ment under paragraph (1) in the interests of aviation security. 
The Administrator may permit the requirements of this paragraph 
to be met at airports by the deplojnnent of dogs or other appropriate 
animals to supplement equipment for screening passengers, bag-
gage, mail, or cargo for explosives or weapons.". 
(b) AGREEMENTS.—^The Administrator is authorized to use non-
competitive or cooperative agreements with air carriers and airport 
authorities that provide for the Administrator to purchase and 
assist in installing advanced security equipment for the use of 
such entities. 
SEC. 306. AUDIT OF PERFORMANCE OF BACKGROUND CHECKS FOR 
CERTAIN PERSONNEL. 
Section 44936(a) is amended by adding at the end the following: 
"(3) The Administrator shall provide for the periodic audit 
of the effectiveness of criminal history record checks conducted 
under paragraph (1) of this subsection.". 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3253 
SEC. 307. PASSENGER PROFILING. 
The Administrator of the Federsd Aviation Administration, the 
Secretary of Transportation, the inteUigence community, and the 
law enforcement community should continue to assist air carriers 
in developing computer-assisted passenger profiling programs and 
other appropriate passenger profiling programs which should be 
used in conjunction with other security measures and technologies. 
SEC. 308. AUTHORITY TO USE CERTAIN FUNDS FOR AIRPORT SECURITY 
PROGRAMS AND ACTIVITIES. 
(a) IN GENERAL.—Notwithstanding any other provision of law, 
funds referred to in subsection (b) may be used for the improvement 
of facilities and the purchase and deployment of equipment to 
enhance and ensure the safety and security of passengers and 
other persons involved in air travel. 
(b) COVERED FUNDS.—The following funds may be used under 
subsection (a): 
(1) Project grants made under subchapter I of chapter 
471 of title 49, United States Code. 
(2) Passenger facility fees collected under section 40117 
of title 49, United States Code. 
SEC. 309. DEVELOPMENT OF AVIATION SECURITY LIAISON AGREE-
MENT. 
The Secretary of Transportation and the Attorney General, 
acting through the Administrator of the Federal Aviation Adminis-
tration and the Director of the Federal Bureau of Investigation, 
shall enter into an interagency agreement providing for the 
establishment of an aviation security liaison at existing appropriate 
Federal agencies' field offices in or near cities served by a designated 
high-risk airport. 
SEC. 310. REGULAR JOINT THREAT ASSESSMENTS. 
The Administrator of the Federal Aviation Administration and 
the Director of the Federal Bureau of Investigation shall carry 
out joint threat and vulnerability assessments on security every 
3 years, or more fi*equently, as necessary, at each airport deter-
mined to be high risk. 
SEC. 
311. 
BAGGAGE 
MATCH 
REPORT. 
(a) REPORT.—If a bag match pilot program is carried out as 
recommended by the White House Conference on Aviation Safety 
and Security, not later than the 30th day following the date of 
completion of the pilot program, the Administrator of the Federal 
Aviation Administration shall submit to Congress a report on the 
safety, effectiveness, £uid operational effectiveness of the pilot pro-
gram. The report shall also assess the extent to which implementa-
tion of baggage match requirements (coupled with the best available 
technologies and methodologies, such as passenger 
profiling) 
enhance domestic aviation security. 
(b) SENSE OF THE SENATE.—It is the sense of the Senate that 
the Administrator should work with airports and air carriers to 
develop, to the extent feasible, effective domestic bag matching 
proposals. 
SEC. 312. ENHANCED SECURITY PROGRAMS. 
(a) IN GENERAL.—Chapter 449 is amended by adding at the 
end of subchapter I the following: 
49 use 44901 
note. 
49 use 44901 
note. 
49 use 44931 
note. 
49 use 44904 
note. 
110 STAT. 3254 
PUBLIC LAW 104-264—OCT. 9, 1996 
"§ 44916. Assessments and evaluations 
"(a) PERIODIC ASSESSMENTS.—The Administrator shall require 
each air carrier and airport (including the airport owner or operator 
in cooperation with the air carriers and vendors serving each air-
port) that provides for intrastate, interstate, or foreign air transpor-
tation to conduct periodic vulnerability assessments of the security 
systems of that edr carrier or sdrport, respectively. The Administra-
tion shall perform periodic audits of such assessments. 
"(b) INVESTIGATIONS.—^The Administrator shall conduct periodic 
and unannounced inspections of security systems of airports and 
air carriers to determine the effectiveness and vulnerabilities of 
such systems. To the extent allowable by law, the Administrator 
may provide for anonymous tests of those security systems.". 
(b) CLERICAL AMENDMENT.—The table of sections for such chap-
ter is £imended by inserting after the item relating to section 44915 
the following: 
"44916. Assessments and evaluations.". 
SEC. 313. REPORT ON AIR CARGO. 
(a) REPORT.—Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Transportation shall trans-
mit to Congress a report on any changes recommended and imple-
mented as a result of the White House Commission on Aviation 
Safety £ind Security to enhance and supplement screening and 
inspection of ceirgo, mail, and company-shipped materials trans-
ported in air commerce. 
(b) CONTENTS.—The report shall include— 
(1) an assessment of the effectiveness of the changes 
referred to in subsection (a); 
(2) an assessment of the oversight by the Federal Aviation 
Administration of inspections of sMpments of mail and CEirgo 
by domestic and foreign air carriers; 
(3) an assessment of the need for additional security meas-
ures with respect to such inspections; 
(4) an assessment of the adequacy of inspection and screen-
ing of cargo on passenger air carriers; and 
(5) any additional recommendations, and if necessary any 
legislative proposals, necessary to carry out additional changes. 
(c) SENSE OF THE SENATE.—It is the sense of the Senate that 
the inspection of cargo, mail, and company-shipped materials can 
be enhanced. 
SEC. 314. SENSE OF THE SENATE REGARDING ACTS OF INTER-
NATIONAL TERRORISM. 
(a) FINDINGS.—The Senate finds that— 
(1) there has been an intensification in the oppression 
and disregard for human life among nations that are willing 
to export terrorism; 
(2) there has been an increase in attempts by criminal 
terrorists to murder edrline passengers through the destruction 
of civiliEin airliners and the deliberate fear and death inflicted 
through bombings of buildings and the kidnapping of tourists 
and Americans residing abroad; and 
(3) information widely available demonstrates that a 
significant portion of international terrorist activity is state-
sponsored, -organized, -condoned, or -directed. 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3255 
(b) SENSE OF THE SENATE.—It is the sense of the Senate that 
if evidence establishes beyond a clear and reasonable doubt that 
any act of hostility towards any United States citizen was an 
act of international terrorism si>onsored, organized, condoned, or 
directed by any nation, a state of war should be considered to 
exist or to have existed between the United States and that nation, 
beginning as of the moment that the act of aggression occurs. 
TITLE IV—AVIATION SAFETY 
SEC. 401. ELIMINATION OF DUAL MANDATE. 
(a) SAFETY CONSIDERATIONS IN PUBLIC INTEREST.— 
(1) SAFETY AS HIGHEST PRIORITY.—Section 40101(d) is 
amended— 
(A) by redesignating paragraphs (1) through (6) as 
para^aphs (2) through (7), respectively; and 
(B) by inserting before paragraph (2), as so redesig-
nated, the following: 
"(1) assigning, maintaining, and enhancing safety and secu-
rity as the highest priorities in air commerce.". 
(2) ELIMINATION OF PROMOTION.—Section 40101(d) is fur-
ther amended— 
(A) in paragraph (2), as redesignated by paragraph 
(IXA) of this subsection, by striking "its development and"; 
and 
(B) in paragraph (3), as so redesignated— 
(i) by striking "promoting, encouraging," and 
inserting "encouraging"; and 
(ii) by inserting before the period at the end ", 
including new aviation technologjr. 
(b) FAA SAFETY MISSION.— 
(1) IN GENERAL.—Section 40104 is amended— 
(A) by inserting "safety o f before "air commerce" 
in the section heading; 
(B) by inserting "SAFETY OF" before "AIR COMMERCE" 
in the heading of subsection (a); and 
(C) by inserting "safety of before "air commerce" in 
subsection (a). 
(2) CLERICAL AMENDMENT.—^The table of sections for chap-
ter 401 is amended by striking the item relating to section 
40104 and inserting the following: 
"40104. Promotion of civil aeronautics and safety of air commerce.". 
SEC. 402. PROTECTION OF VOLUNTARILY SUBMITTED INFORMATION. 
(a) IN GENERAL.—Chapter 401, as amended by section 253 
of this Act, is further amended by adding at the end the following: 
*
*
§ 40123. Protection of voluntarily submitted information 
"(a) IN GENERAL.—^Notwithstanding any other provision of law, 
neither the Administrator of the Federal Aviation Administration, 
nor any agency receiving information from the Administrator, shall 
disclose voluntarily-provided safety or security related information 
if the Administrator finds that— 
"(1) the disclosure of the information would inhibit the 
voluntary provision of that t3^e of information and that the 
110 STAT. 3256 
PUBLIC LAW 104-264—OCT. 9, 1996 
receipt of that type of information aids in fulfilling the Adminis-
trator's safety and security responsibilities; and 
"(2) withholding such information from disclosure would 
be consistent with the Administrator's safety and security 
responsibilities. 
"(b) REGULATIONS.—The Administrator shall issue regulations 
to carry out this section.". 
(b) CONFORMING AMENDMENT.—The table of sections for such 
chapter is simended by adding at the end the following: 
"40123. Protection of voluntarily submitted information.". 
SEC. 403. SUPPLEMENTAL TYPE CERTIFICATES. 
Section 44704 is amended— 
(1) by redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively; and 
(2) by inserting after subsection (a) the following: 
"(b) SUPPLEMENTAL TYPE CERTIFICATES.— 
"(1) ISSUANCE.—^The Administrator may issue a type certifi-
cate designated as a supplemental t3rpe certificate for a change 
to an aircraft, aircraft engine, propeller, or appliance. 
"(2) CONTENTS.—^A supplemental type certificate issued 
under paragraph (1) shall consist of the change to the aircraft, 
aircraft engine, propeller, or appliance with respect to the pre-
viously issued type certificate for the aircraft, aircraft engine, 
propeller, or appliance. 
"(3) REQUIREMENT.—If the holder of a supplemental type 
certificate agrees to permit another person to use the certificate 
to modify an aircraft, aircraft engine, propeller, or appUance, 
the holder shall provide the other person with written evidence, 
in a form acceptable to the Administrator, of that agreement. 
A person may change an aircraft, aircraft engine, propeller, 
or appliance based on a supplemental type certificate only 
if the person requesting the change is the holder of the supple-
mental type certificate or has permission from the holder to 
make the change.". 
SEC. 404. CERTIFICATION OF SMALL AIRPORTS. 
(a) IN GENERAL.—Section 44706(a) is amended— 
(1) by redesignating paragraph (2) as paragraph (3); 
(2) by inserting after paragraph (1) the following: 
"(2) that is not located in the State of Alaska and serves 
any scheduled passenger operation of an air carrier operating 
aircraft designed for more than 9 passenger seats but less 
than 31 passenger seats; and"; 
(3) by strikmg "and" at the end of paragraph (3), as redesig-
nated by paragraph (1) of this subsection; 
(4) by striking "(3) when" and inserting "if'; and 
(5) by moving the matter following paragraph (3), as 
redesignated by paragraph (1) of this subsection, to the left 
flush ftill measure. 
(b) COMMUTER AIRPORTS.—Section 44706 is amended by adding 
at the end the following: 
"(d) COMMUTER AIRPORTS.—In developing the terms required 
by subsection (b) for airports covered by subsection (a)(2), the 
Administrator shall identify and consider a reasonable number 
of regulatory alternatives and select from such alternatives the 
least costly, most cost-effective or the least burdensome alternative 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3257 
that will provide comparable safety at airports described in sub-
sections (a)(1) and (a)(2).". 
(c) EFFECTIVE DATE.—Section 44706 is further amended by 
adding at the end the following: 
"(e) EFFECTIVE DATE.—^^y regulation establishing the terms 
required by subsection (b) for airports covered by subsection (a)(2) 
shall not take effect imtil such regulation, and a report on the 
economic impact of the regulation on air service to the airports 
covered by the rule, has been submitted to Congress and 120 
days have elapsed following the date of such submission.". 
(d) LIMITATION ON STATUTORY CONSTRUCTION.—Section 44706 
is further amended by adding at the end the following: 
"(f) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this 
title may be construed as requiring a person to obtain an airport 
operating certificate if such person does not desire to operate an 
airport described in subsection (a).". 
SEC. 405. AUTHORIZATION OF APPROPRIATIONS FOR STATE-SPECIFIC 
SAFETY MEASURES. 
There are authorized to be appropriated to the Federal Aviation 
Administration not more than $10,000,000 for fiscal year 1997 
for the purpose of addressing State-specific aviation SEifety problems 
identified by the National Transportation Safety Board. 
SEC. 406. AIRCRAFT ENGINE STANDARDS. 
(a) STANDARDS AND REGULATIONS.—Subsection (a)(1) of section 
44715 is amended to read as follows: 
"(a) STANDARDS AND REGULATIONS.—(1)(A) TO reUeve and pro-
tect the pubUc health and welfare fi*om aircraft noise and sonic 
boom, the Administrator of the Federal Aviation Administration, 
as he deems necessary, shall prescribe— 
"(i) standards 
to measure 
aircraft 
noise and 
sonic 
boom; and 
"(ii) regulations to control and abate aircraft noise £ind 
sonic boom. 
"(B) The Administrator, as the Administrator deems appro-
priate, shall provide for the participation of a representative of 
the Environmental Protection Agency on such advisory committees 
or associated working groups that advise the Administrator on 
matters related to the environmental effects of aircraft and aircraft 
engines.". 
(b) INTERAGENCY COOPERATION.—Section 231(a)(2) of the Clean 
Air Act (42 U.S.C. 7571(a)(2)) is amended— 
(1) by inserting "(A)" before "The Administrator"; and 
(2) by adding at the end the following: 
"(B)(i) The Administrator shall consult with the Administrator 
of the Federal Aviation Administration on aircrcift engine emission 
standards. 
"(ii) The Administrator shall not change the aircraft engine 
emission standards if such change would significantly increase noise 
and adversely affect safety.". 
SEC. 407. ACCIDENT AND SAFETY DATA CLASSIFICATION; REPORT ON 
EFFECTS OF PUBLICATION AND AUTOMATED SURVEIL-
LANCE TARGETING SYSTEMS. 
(a) ACCIDENT AND SAFETY DATA CLASSIFICATION.— 
110 STAT. 3258 
PUBLIC LAW 104-264—OCT. 9, 1996 
(1) IN GENERAL.—Subchapter II of chapter 11 of title 49, 
United States Code, is amended by adding at the end the 
following: 
^§1119. 
Accident 
and safety 
data 
classification 
and 
publication 
"(a) IN GENERAL.—Not later than 90 days after the date of 
the enactment of this section, the National Trsinsportation Safety 
Board shall, in consultation and coordination with the Adminis-
trator of the Federal Aviation Administration, develop a system 
for classifying air carrier accident data maintained by the Board. 
"(b) REQUIREMENTS FOR CLASSIFICATION SYSTEM.— 
"(1) IN GENERAL.—The system developed under this section 
shall provide for the classification of accident and safety data 
in a manner that, in comparison to the system in effect on 
the date of the enactment of this section, provides for safety-
related categories that provide clearer descriptions of accidents 
associated with air transportation, including a more refined 
classification of accidents which involve fatalities, injuries, or 
substantial damage and which are only related to the operation 
of an aircraft. 
"(2) PUBLIC COMMENT.—In developing a system of classifica-
tion imder paragraph (1), the Board shall provide adequate 
opportunity for public review and comment. 
"(3) FINAL CLASSIFICATION.—After providing for public 
review and comment, and after consulting with the Adminis-
trator, the Board shall issue final classifications. The Board 
shall ensure that air travel accident covered under this section 
is classified in accordance with the final classifications issued 
under this section for data for calendar year 1997, and for 
each subsequent calendaryear. 
"(4) PUBLICATION.—The Board shall pubhsh on a periodic 
basis accident and safety data in accordance with the final 
classifications issued under paragraph (3). 
"(5) 
RECOMMENDATIONS 
OF THE ADMINISTRATOR.—The 
Administrator may, fi*om time to time, request the Board to 
consider revisions (including additions to the classification sys-
tem developed under this section). The Board shall respond 
to any request made by the Administrator under this section 
not later than 90 days after receiving that request.". 
(2) CONFORMING AMENDMENT.—The table of sections for 
subchapter II of chapter 11 of title 49, United States Code, 
is amended by adding at the end the following: 
"1119. Accident and safety data classification and publication.". 
(b) AUTOMATED SURVEILLANCE TARGETING SYSTEMS.—Section 
44713 is amended by adding at the end the following: 
"(e) AUTOMATED SURVEILLANCE TARGETING SYSTEMS.— 
"(1) IN GENERAL.—The Administrator shall give high 
priority to developing and deploying a fully enhanced safety 
performance analysis system that includes automated surveil-
lance to assist the Administrator in prioritizing and targeting 
surveillance and inspection activities of the Federal Aviation 
Administration. 
"(2) DEADLINES FOR DEPLOYMENT.— 
"(A) INITIAL PHASE.—The initial phase of the oper-
ational deplojmient of the system developed under this 
subsection shall begin not later than December 31, 1997. 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3259 
"(B) FINAL PHASE.—^The final phase of field deployment 
of the system developed under this subsection shall begin 
not later than December 31, 1999. By that date, all prin-
cipal operations 
and 
maintenance 
inspectors 
of the 
Administration, and appropriate supervisors and analysts 
of the Administration shall have been provided access to 
the necessary information and resources to carry out the 
system. 
"(3) INTEGRATION OF INFORMATION.—In developing the sys-
tem under this section, the Administration shgdl consider the 
near-term integration of accident and incident data into the 
safety performance analysis system under this subsection.". 
TITLE V—PILOT RECORD SHARING 
SEC. 501. SHORT TITLE. 
This title may be cited as the "Pilot Records Improvement 
Act of 1996". 
SEC. 602. EMPLOYMENT INVESTIGATIONS OF PILOT APPLICANTS. 
(a) IN GENERAL.—Section 44936 is amended by adding at the 
end the following: 
"(f) RECORDS OF EMPLOYMENT OF PILOT APPLICANTS.— 
"(1) IN GENERAL.—^Before hiring an individual as a pilot, 
an air carrier shall request and receive the following informa-
tion: 
"(A) FAA RECORDS.—From the Administrator of the 
Federal Aviation Administration, records pertaining to the 
individual that are maintained by the Administrator 
concerning— 
"(i) current airman certificates (including airman 
medical certificates) 
and associated type ratings, 
including any limitations to those certificates and 
ratings; and 
"(ii) summaries of legal enforcement actions result-
ing in a finding by the Administrator of a violation 
of this title or a regulation prescribed or order issued 
under this title that was not subsequently overturned. 
"(B) AIR CARRIER AND OTHER RECORDS.—^From any 
air 
carrier or other person that has employed the individual 
at £iny time during the 5-year period preceding the date 
of the employment application of the individual, or from 
the trustee in bankruptcy for such air carrier or person— 
"(i) records pertaining to the individual that are 
maintained by an air carrier (other than records relat-
ing to flight time, duty time, or rest time) under regula-
tions set forth in— 
"(I) section 121.683 of title 14, Code of Federal 
Regulations; 
"(II) paragraph (A) of section VI, appendix I, 
part 121 of such title; 
"(III) paragraph (A) of section IV, appendix 
J, part 121 of such title; 
"(IV) section 125.401 of such title; and 
"(V) section 135.63(a)(4) of such title; and 
Pilot Records 
Improvement Act 
of 1996. 
49 use 40101 
note. 
110 STAT. 3260 
PUBLIC LAW 104-264—OCT. 9, 1996 
"(ii) other records pertaining to the individual that 
are 
maintained 
by 
the 
air 
carrier 
or 
person 
concerning— 
"(I) the training, qualifications, proficiency, or 
professional competence of the individual, includ-
ing comments and evaluations made by a check 
airman designated in accordance witii section 
121.411, 125.295, or 135.337 of such title; 
"(II) any disciplinary action taken with respect 
to the individual that was not subsequently over-
turned; and 
"(III) any release fi-om employment or resigna-
tion, termination, or disqualification with respect 
to emplo3rment. 
"(C) NATIONAL DRIVER REGISTER RECORDS.—In accord-
ance with section 30305(b)(7), fi-om the chief driver licens-
ing official of a State, information concerning the motor 
vehicle driving record of the individual. 
"(2) WRITTEN CONSENT; RELEASE FROM LIABILITY.—An air 
carrier making a request for records under paragraph (1)— 
"(A) shedl be required to obtain written consent to 
the release of those records fi*om the individual that is 
the subject of the records requested; and 
"(B) may, notwithstanding any other provision of law 
or agreement to the contrary, require the individual who 
is the subject of the records to request to execute a release 
from Hability for any claim arising from the 
fiimishing 
of such records to or the use of such records by such 
air carrier (other than a claim arising from fiimishing 
information known to be false and medntained in violation 
of a criminal statute). 
"(3) 5-YEAR REPORTING PERIOD.—A person shall not furnish 
a record in response to a request made under paragraph (1) 
if the record was entered more than 5 years before the date 
of the request, unless the information concerns a revocation 
or suspension of an airman certificate or motor vehicle license 
that is in effect on the date of the request. 
"(4) REQUIREMENT TO MAINTAIN RECORDS.—The Adminis-
trator shall maintain pilot records described in paragraph (1)(A) 
for a period of at least 5 years. 
"(5) RECEIPT OF CONSENT; PROVISION OF INFORMATION.— 
A person shall not furnish a record in response to a request 
made under paragraph (1) without first obtedning a copy of 
the written consent of the individual who is the subject of 
the records requested. A person who receives a request for 
records under this paragraph shall furnish a copy of all of 
such requested records maintained by the person not later 
than 30 days after receiving the request. 
"(6) RIGHT TO RECEIVE NOTICE AND COPY OF ANY RECORD 
FURNISHED.—^A person who receives a request for records under 
paragraph (1) shall provide to the individual who is the subject 
of the records— 
"(A) on or before the 20tii day following the date of 
receipt of the request, written notice of the request and 
of the individual's right to receive a copy of such records; 
and 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3261 
"(B) in accordance with paragraph (10), a copy of such 
records, if requested by the individual. 
"(7) REASONABLE CHARGES FOR PROCESSING REQUESTS AND 
FURNlSHmG COPIES.—^A person who receives a request under 
paragraph (1) or (6) may estabhsh a reasonable charge for 
the cost of processing the request and furnishing copies of 
the requested records, 
"(8) 
STANDARD 
FORMS.—The 
Administrator 
shall 
promulgate— 
"(A) standard forms that may be used by an air CEurier 
to request records under paragraph (1); and 
"(B) standard forms that may be used by an air 
carrier to— 
"(i) obtain the written consent of the individual 
who is the subject of a request under paragraph (1); 
and 
"(ii) inform the individual of— 
"(I) the request; and 
"(II) the individual right of that individual 
to receive a copy of any records furnished in 
response to the request. 
"(9) RIGHT TO CORRECT INACCURACIES.—An air carrier that 
maintains or requests and receives the records of an individual 
under paragraph (1) shall provide the individual with a reason-
able opportunity to submit written comments to correct £iny 
inaccuracies contained in the records before making a final 
hiring decision with respect to the individual. 
"(10) RIGHT OF PILOT TO REVIEW CERTAIN RECORDS.—Not-
withstanding any other provision of law or agreement, an air 
carrier shall, upon written request fi*om a pilot employed by 
such carrier, make available, within a reasonable time of the 
request, to the pilot for review, any and all emplojmaent records 
rererred to in paragraph (1)(B) (i) or (ii) pertaining to the 
employment of the pilot. 
"(11) PRIVACY PROTECTIONS.—^An edr carrier that receives 
the records of £in individual luider paragraph (1) may use 
such records only to assess the qualifications of the individual 
in deciding whether or not to hire the individual as a pilot. 
The air carrier shall take such actions as may be necessary 
to protect the privacy of the pilot and the confidentiality of 
the records, including ensuring that information contained in 
the records is not divulged to any individual that is not directly 
involved in the hiring decision. 
"(12) PERIODIC REVIEW.—Not later than 18 months after 
the date of the enactment of the Pilot Records Improvement 
Act of 1996, £ind at least once every 3 years thereafter, the 
Administrator shall transmit to Congress a statement that 
contains, taking into account recent developments in the avia-
tion industry— 
"(A) recommendations by the Administrator concerning 
proposed changes to Federal Aviation Administration 
records, air carrier records, and other records required 
to be fiimished under subparagraphs (A) and (B) of para-
graph (1); or 
"(B) reasons why the Administrator does not rec-
ommend £iny proposed changes to the records referred to 
in subparagraph (A). 
110 STAT. 3262 
PUBLIC LAW 104-264—OCT. 9, 1996 
"(13) REGULATIONS.—The Administrator may prescribe 
such regulations as may be necessary— 
"(A) to protect— 
"(i) the personal privacy of any individual whose 
records £ire requested under paragraph (1); and 
"(ii) the confidentiality of those records; 
"(B) to preclude the further dissemination of records 
received under paragraph (1) by the person who requested 
those records; and 
"(C) to ensure prompt compliance with any request 
made under paragraph (1). 
"(g) LIMITATION ON LIABILITY; PREEMPTION OF STATE LAW.— 
"(1) LIMITATION ON LIABILITY.—NO action or proceeding 
may be brought by or on behalf of an individual who has 
applied for or is seeking a position with an air carrier as 
a pilot and who has signed a release from liability, as provided 
for imder paragraph (2), against— 
"(A) the air carrier requesting the records of that 
individual under subsection (0(1); 
"(B) a person who has complied with such request; 
"(C) a person who has entered information contained 
in the individual's records; or 
"(D) an agent or employee of a person described in 
subparagraph (A) or (B); 
in the nature of an action for defamation, invasion of privacy, 
negligence, interference with contract, or otherwise, or under 
any Federal or State law with respect to the furnishing or 
use of such records in accordance with subsection (f). 
"(2) PREEMPTION.—No State or political subdivision thereof 
may enact, prescribe, issue, continue in effect, or enforce any 
law (including any regulation, standard, or other provision hav-
ing the force and effect of law) that prohibits, penaUzes, or 
imposes liability for furnishing or using records in accordance 
with subsection (f). 
"(3) PROVISION OF KNOWINGLY FALSE INFORMATION.—Para-
graphs (1) and (2) shall not apply with respect to a person 
who furnishes information in response to a request made under 
subsection (f)(1), that— 
"(A) the person knows is false; £uid 
"(B) was maintained in violation of a criminal statute 
of the United States. 
"(h) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in 
subsection (f) shall be construed as precluding the availability of 
the records of a pilot in an investigation or other proceeding concern-
ing an accident or incident conducted by the Administrator, the 
National Transportation Safety Board, or a court.". 
(b) CONFORMING AMENDMENTS.—Section 30305(b) is amended— 
(1) by redesignating paragraph (7) as paragraph (8); and 
(2) by inserting after paragraph (6) the following: 
"(7) An individual who is seeking employment by an air 
carrier as a pilot may request the chief driver licensing official 
of a State to provide information about the individual under 
paragraph (2) to the prospective employer of the individual 
or to the Secretary of Transportation. Information may not 
be obtained from the National Driver Register under this sub-
section if the information was entered in the Register more 
than 5 years before the request unless the information is about 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3263 
a revocation or suspension still in effect on the date of the 
request.", 
(c) CIVIL PENALTIES.—Section 46301, as amended by section 
1220(b) of this Act, is further amended— 
(1) m each of subsections (a)(lXA), (dX2), and (fKlXA)(i) 
by inserting "44724," after "44718(d),"; and 
(2) in subsection (aX2XA) by inserting "44724," after 
"44716,". 
(d) APPLICABILITY.—^The amendments made by this section shall 
apply to any air carrier hiring an individual as a pilot whose 
application was first received by the carrier on or after the 120th 
day following the date of the enactment of this Act. 
SEC. 503. STUDIES OF MINIMUM STANDARDS FOR PILOT QUALIFICA-
TIONS AND OF PAY FOR TRAINING. 
(a) 
STUDY.—^The Administrator of the Federal 
Aviation 
Administration shall appoint a task force consisting of appropriate 
representatives of the aviation industry to conduct— 
(1) a study directed toward the development of— 
(A) standards and criteria for preemplo3anent screening 
tests measuring the psychomotor coordination, genersJ 
intellectual capacity, instrument and mechanicsd com-
prehension, and physical and mental fitness of an applicant 
for emplo3rment as a pilot by an air carrier; and 
(B) standards and criteria for pilot training facilities 
to be licensed by the Administrator £ind which will assure 
that 
pilots 
trained 
at 
such 
facilities 
meet 
the 
preemployment screening standards and criteria described 
in subparagraph (A); and 
(2) a study to determine if the practice of some air carriers 
to require employees or prospective employees to pay for the 
training or experience that is needed to perform night check 
duties for an air carrier is in the public interest. 
(b) REPORT.—^Not later than 1 year after the date of the enact-
ment of this Act, the Administrator shall transmit to Congress 
a report on the results of the study conducted under subsection 
(aX2). 
SEC. 604. STUDY OF MINIMUM FLIGHT TIME. 
(a) 
STUDY.—^The Administrator of the Federal 
Aviation 
Administration shall conduct a study to determine whether current 
minimum flight time requirements applicable to individusds seeking 
emplo3anent as a pilot with an air carrier are sufficient to ensure 
public safety. 
(b) REPORT.—^Not later than 1 year after the date of the enact-
ment of this Act, the Administrator shall transmit to Congress 
a report on the results of the study. 
TITLE VI—CHILD PILOT SAFETY 
SEC. 601. SHORT TITLE. 
This title may be cited as the "Child Pilot Safety Act". 
SEC. 602. CHILD PILOT SAFETY. 
(a) MANIPULATION OF FLIGHT CONTROLS.— 
(1) IN GENERAL.—Chapter 447 is amended by adding at 
the end the following: 
Effective date. 
49 use 30305 
note. 
49 use 44935 
note. 
49 use 44935 
note. 
ehUd Pilot Safety 
Act. 
49 use 40101 
note. 
110 STAT. 3264 
PUBLIC LAW 104-264—OCT. 9, 1996 
^§44724. Manipulation of flight controls 
"(a) PROHIBITION.—^No pilot in command of an aircraft may 
allow an individual who does not hold— 
"(1) a valid private pilots certificate issued by the Adminis-
trator of the Federal Aviation Administration under part 61 
of title 14, Code of Federal Regulations; and 
"(2) the appropriate medical certificate issued by the 
Administrator under part 67 of such title, 
to manipulate the controls of an aircraft if the pilot knows or 
should have known that the individual is attempting to set a 
record or engage in an aeronautical competition or aeronautical 
feat, as defined by the Administrator, 
"(b) REVOCATION OF AIRMEN CERTIFICATES.—The Administrator 
shall issue an order revoking a certificate issued to an airman 
under section 44703 of this title if the Administrator finds that 
while acting as a pilot in command of an aircraft, the airman 
has permitted another individual to manipulate the controls of 
the aircraft in violation of subsection (a). 
"(c) PILOT IN COMMAND DEFINED.—In this section, the term 
'pilot in command' has the meaning given such term by section 
1.1 of title 14, Code of Federal Regulations.". 
(2) CONFORMING AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following: 
"44724. Manipulation of flight controls.". 
(b) CHILDREN FLYING AIRCRAFT.— 
(1) STUDY.—^The Administrator of the Federal Aviation 
Administration shall conduct a study of the impacts of children 
flying aircraft. 
(2) 
CONSIDERATIONS.—In 
conducting 
the 
study, 
the 
Administrator shall consider the effects of imposing any restric-
tions on children flying aircraft on safety and on the future 
of general aviation in the United States. 
(3) REPORT.—^Not later than 6 months after the date of 
the enactment of this Act, the Administrator shall issue a 
report containing the results of the study, together with rec-
ommendations on— 
(A) whether the restrictions established by the amend-
ment made by subsection (a)(1) should be modified or 
repealed; and 
(B) whether certain individuals or groups should be 
exempt from any age, altitude, or other restrictions that 
the Administrator may impose by regulation. 
(4) REGULATIONS.—As a result of the findings of the study, 
the Administrator may issue regulations imposing age, altitude, 
or other restrictions on children fljang aircr^t. 
Aviation Disaster 
Family 
Assistance Act of 
1996. 
49 use 40101 
note. 
TITLE VII—FAMILY ASSISTANCE 
SEC. 701. SHORT TITLE. 
This title may be cited as the "Aviation Disaster Family Assist-
ance Act of 1996". 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3265 
SEC. 702. ASSISTANCE BY NATIONAL TRANSPORTATION SAFETY BOARD 
TO FAMILIES OF PASSENGERS INVOLVED IN AIRCRAFT 
ACCIDENTS. 
(a) AUTHORITY TO PROVIDE ASSISTANCE.— 
(1) IN GENERAL,—Subchapter III of chapter 11 is amended 
by adding at the end the following: 
*'§ 1136. Assistance to families of passengers involved in 
aircraft accidents 
"(a) IN GENERAL.—As soon as practicable after being notified 
of an aircraft accident within the United States involving an air 
carrier or foreign air carrier and resulting in a major loss of life, 
the Chairman of the National Transportation Safety Board shall— 
"(1) designate and publicize the name and phone number 
of a director of family support services who shall be an employee 
of the Board and shall be responsible for acting as a point 
of contact within the Federal Government for the families of 
passengers involved in the accident and a liaison between the 
air carrier or foreign air carrier and the famihes; and 
"(2) designate an independent nonprofit organization, with 
experience in disasters and posttrauma communication with 
families, which shall have primary responsibility for coordinat-
ing the emotional care and support of the families of passengers 
involved in the accident. 
"(b) RESPONSIBILITIES OF THE BOARD.—The Board shall have 
primary Federal responsibility for facilitating the recovery and 
identification of fatally-injured passengers involved in an accident 
described in subsection (a). 
"(c) RESPONSIBILITIES OF DESIGNATED ORGANIZATION.—The 
organization designated for an accident under subsection (a)(2) shall 
have the following responsibilities with respect to the families of 
passengers involved in the accident: 
"(1) To provide mental health and counseling services, in 
coordination with the disaster response team of the air CEirrier 
or foreign air carrier involved. 
"(2) To take such actions as may be necessary to provide 
an environment in which the families may grieve in private. 
"(3) To meet with the families who have traveled to the 
location of the accident, to contact the families unable to travel 
to such location, and to contact all affected families periodically 
thereafter until such time as the orgeuiization, in consultation 
with the director of family support services designated for the 
accident under subsection (a)(1), determines that fiirther assist-
ance is no longer needed. 
"(4) To communicate with the families as to the roles of 
the organization, government agencies, and the air carrier or 
foreign air carrier involved with respect to the accident and 
the post-accident activities. 
"(5) To arrange a suitable memorial service, in consultation 
with the families. 
"(d) PASSENGER LiSTS.— 
"(1) REQUESTS FOR PASSENGER LISTS.— 
"(A) REQUESTS BY DIRECTOR OF FAMILY SUPPORT SERV-
ICES.—It shall be the responsibility of the director of family 
support services designated for an accident under sub-
section (a)(1) to request, as soon as practicable, from the 
air carrier or foreign air carrier involved in the accident 
110 STAT. 3266 
PUBLIC LAW 104-264—OCT. 9, 1996 
a list, which is based on the best available information 
at the time of the request, of the names of the passengers 
that were aboard the aircraft involved in the accident. 
"(B) REQUESTS BY DESIGNATED ORGANIZATION.—The 
organization designated for an accident under subsection 
(a)(2) may request from the air carrier or foreign air carrier 
involved in the accident a list described in subparagraph 
(A). 
"(2) USE OF INFORMATION.—The director of family support 
services and the organization may not release to any person 
information on a list obtained under paragraph (1) but may 
provide information on the list about a passenger to the family 
of the passenger to the extent that the director of family support 
services or the organization considers appropriate. 
"(e) 
CONTINUING RESPONSIBILITIES OF THE BOARD.—In 
the 
course of its investigation of an accident described in subsection 
(a), the Board shall, to the maximum extent practicable, ensure 
that the families of passengers involved in the accident— 
"(1) are briefed, prior to any public briefing, about the 
accident, its causes, and any other findings from the investiga-
tion; and 
"(2) are individually informed of and allowed to attend 
any public hearings and meetings of the Board about the 
accident. 
"(f) USE OF AIR CARRIER RESOURCES.—^To the extent practicable, 
the organization designated for an accident imder subsection (a)(2) 
shall coordinate its activities with the air carrier or foreign edr 
carrier involved in the accident so that the resources of the carrier 
can be used to the greatest extent possible to carry out the organiza-
tion's responsibilities under this section. 
"(g) PROHIBITED ACTIONS.— 
"(1) ACTIONS TO IMPEDE THE BOARD.—NO person (including 
a State or political subdivision) may impede the ability of 
the Bo£ird (including the director of family support services 
designated for an accident under subsection (a)(1)), or an 
organization designated for an accident under subsection (a)(2), 
to c£irry out its responsibilities under this section or the ability 
of the families of passengers involved in the accident to have 
contact with one another. 
"(2) UNSOLICITED COMMUNICATIONS.—In the event of an 
accident involving an air carrier providing interstate or foreign 
air transportation, no unsolicited communication concerning 
a potential action for personal injury or wrongful death may 
be made by an attorney or any potential party to the litigation 
to an individual injured in the accident, or to a relative of 
an individual involved in the accident, before the 30th day 
following the date of the accident. 
"(h) DEFINITIONS.—In this section, the following definitions 
apply: 
"(1) AIRCRAFT ACCIDENT.—The term 'aircraft 
accident' 
means any aviation disaster regardless of its cause or suspected 
cause. 
"(2) 
PASSENGER.—^The 
term 
'passenger' 
includes 
an 
employee of an air carrier aboard an aircraft.". 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3267 
(2) CONFORMING AMENDMENT.—The table of sections for 
such chapter is amended by inserting after the item relating 
to section 1135 the following: 
"1136. Assistance to families of passengers involved in aircraft accidents.". 
(b) PENALTIES.—Section 1155(a)(1) of such title is amended— 
(1) by striking "or 1134(b) or (f)(1)" and inserting ", section 
1134(b), section 1134(f)(1), or section 1136(g)"; and 
(2) by striking "either of and inserting "any of. 
SEC. 703. Am CARRIER PLANS TO ADDRESS NEEDS OF FAMILIES OF 
PASSENGERS INVOLVED IN AIRCRAFT ACCIDENTS. 
(a) IN GENERAL.—Chapter 411 is amended by adding at the 
end the following: 
*
*
§ 41113. Plans to address needs of families of passengers 
involved in aircraft accidents 
"(a) SUBMISSION OF PLANS.—Not later than 6 months after 
the date of the enactment of this section, each £dr carrier holding 
a certificate of public convenience and necessity under section 41102 
of this title shall submit to the Secretary and the Chairman of 
the National Transportation Safety Board a plan for addressing 
the needs of the families of passengers involved in any aircraft 
accident involving an aircraft of the air carrier and resulting in 
a major loss of life. 
"(b) CONTENTS OF PLANS.—^A plan to be submitted by an air 
carrier under subsection (a) shedl include, at a minimum, the 
following: 
"(1) A plan for publicizing a reliable, toll-free telephone 
nimiber, and for providing staff, to handle calls from the fami-
lies of the passengers. 
"(2) A process for notifying the families of the passengers, 
before providing any public notice of the names of the pas-
sengers, either by utilizing the services of the organization 
designated for the accident under section 1136(a)(2) of this 
title or the services of other suitably trained individuals. 
"(3) An assurance that the notice described in paragraph 
(2) will be provided to the family of a passenger as soon as 
the air carrier has verified that the passenger was aboard 
the Eurcraft (whether or not the names of aU of the passengers 
have been verified) and, to the extent practicable, in person. 
"(4) An assurance that the air carrier will provide to the 
director of family support services designated for the accident 
under section 1136(a)(1) of this title, and to the organization 
, designated for the accident under section 1136(a)(2) of this 
title, immediately upon request, a list (which is based on the 
best available information at the time of the request) of the 
names of the passengers aboard the aircraft (whether or not 
•' 
such names have been verified), and will periodically update 
. 
the list. 
"(5) An assurance that the family of each passenger will 
be consulted about the disposition of all remains and personal 
' 
effects of the passenger within the control of the air carrier. 
"(6) An assurance that if requested by the family of a 
passenger, any possession of the passenger within the control 
of the air ceirrier (regardless of its condition) will be returned 
to the family unless the possession is needed for the accident 
investigation or any criminal investigation. 
2&-194 0-96-7:QL3Part5 
110 STAT. 3268 
PUBLIC LAW 104-264—OCT. 9, 1996 
49 use 41113 
note. 
"(7) An assurance that any unclaimed possession of a pas-
senger within the control of the air carrier will be retained 
by the air carrier for at least 18 months. 
"(8) An assurance that the family of each passenger 
will be consulted about construction by the air carrier of any 
monument to the passengers, including any inscription on the 
monument. 
"(9) An assurance that the treatment of the families of 
nonrevenue passengers (and any other victim of the accident) 
will be the samie as the treatment of the families of revenue 
passengers. 
"(10) An assurance that the air carrier will work with 
any organization designated under section 1136(a)(2) of this 
title on an ongoing basis to ensure that families of passengers 
receive £in appropriate level of services and assistance following 
each accident. 
"(11) An assurance that the air carrier will provide reason-
able compensation to any organization designated under section 
1136(a)(2) of this title for services provided by the organization. 
"(12) An assurance that the air carrier will assist the 
family of a passenger in traveling to the location of the accident 
and provide for the physical care of the family while the family 
is stajdng at such location. 
"(13) An assurance that the air carrier will commit suffi-
cient resources to carry out the plan. 
"(c) CERTIFICATE REQUIREMENT.—After the date that is 6 
months after the date of the enactment of this section, the Secretary 
may not approve an application for a certificate of public conven-
ience and necessity under section 41102 of this title unless the 
applicant has included as part of such application a plan that 
meets the requirements of subsection (b). 
"(d) LIMITATION ON LIABILITY.—^An air carrier shall not be 
liable for damages in any action brought in a Federal or State 
court arising out of the performance of the air carrier in preparing 
or providing a passenger list pursueint to a plan submitted by 
the £dr carrier under subsection (b), unless such liability was caused 
by conduct of the air carrier which was grossly negligent or which 
constituted intentional misconduct. 
"(e) AIRCRAFT ACCIDENT AND PASSENGER DEFINED.—In this 
section, the terms 'aircraft accident' and 'passenger' have the mean-
ings such terms have in section 1136 of this title.". 
(b) CONFORMING AMENDMENT.—The table of sections for such 
chapter is amended by adding at the end the following: 
"41113. Plans to address needs of families of passengers involved in aircraft 
accidents.". 
SEC. 704. ESTABLISHMENT OF TASK FORCE. 
(a) ESTABLISHMENT.—The Secretary of Transportation, in 
cooperation with the National Treuisportation Safety Board, the 
Federal Emergency Management Agency, the American Red Cross, 
air carriers, £uid families which have been involved in aircraft 
accidents shall establish a task force consisting of representatives 
of such entities and families, representatives of air carrier employ-
ees, and representatives of such other entities as the Secretary 
considers appropriate. 
(b) GUIDELINES AND RECOMMENDATIONS.—The task force estab-
lished pursuant to subsection (a) shall develop— 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3269 
(1) guidelines to assist air carriers in responding to aircraft 
accidents; 
(2) recommendations on methods to ensure that attorneys 
and representatives of media organizations do not intrude on 
the privacy of families of passengers involved in an aircraft 
accident; 
(3) recommendations on methods to ensure that the families 
of passengers involved in an aircraft accident who are not 
citizens of the United States receive appropriate assistance; 
(4) recommendations on methods to ensure that State men-
tal health licensing laws do not act to prevent out-of-state 
f 
mental health workers from working at the site of an aircraft 
accident or other related sites; 
(5) recommendations on the extent to which military 
experts and facilities can be used to aid in the identification 
of the remains of passengers involved in an aircraft accident; 
and 
!
- 
(6) recommendations on methods to improve the timeliness 
of the notification provided by air carriers to the families of 
passengers involved in an aircraft accident, including— 
(A) an analysis of the steps that air carriers would 
have to take to ensure that an accurate list of passengers 
on board the aircraft would be available within 1 hour 
of the accident and an analysis of such steps to ensure 
that such list would be available within 3 hours of the 
accident; 
^" 
(B) an analysis of the added costs to air carriers and 
travel agents that would result if air carriers were required 
to take the steps described in subparagraph (A); 
(C) an analysis of any inconvenience to passengers, 
' 
including flight delays, that would result if air carriers 
^
* were required to take the steps described in subparagraph 
(A); and 
' 
(D) an analysis of the implications for personal privacy 
that would result if air carriers were required to take 
the steps described in subparagraph (A), 
(c) REPORT.—^Not later than 1 year after the date of the enact-
ment of this Act, the Secretary shaJl transmit to Congress a report 
containing the model plan and recommendations developed by the 
task force under subsection (b). 
SEC. 706. LIMITATION ON STATUTORY CONSTRUCTION. 
Nothing in this title or any amendment made by this title 
may be construed as limiting the actions that an air carrier may 
take, or the obligations that an air carrier may have, in providing 
assistance to the families of passengers involved in an aircraft 
accident. 
». -
49 use 41113 
note. 
TITLE VIII—AIRPORT REVENUE 
mm 
PROTECTION 
Airport Revenue 
Protection Act of 
1996. 
SEC. 801. SHORT TITLE. 
- 
-
This title may be cited as the "Airport Revenue Protection 
Act of 1996". 
49 use 40101 
note. 
110 STAT. 3270 
PUBLIC LAW 104-264—OCT. 9, 1996 
49 use 47107 
SEC. 802. FINDINGS; PURPOSE. 
(a) IN GENERAL.—Congress finds that— 
(1) section 47107 of title 49, United States Code, prohibits 
the diversion of certain revenue generated by a public airport 
as a condition of receiving a project grant; 
(2) a grant recipient that uses airport revenue for purposes 
that are not airport related in a manner inconsistent with 
chapter 471 of title 49, United States Code, illegally diverts 
airport revenues; 
(3) any diversion of airport revenues in violation of the 
condition referred to in paragraph (1) undermines the interest 
of the United States in promoting a strong national air 
transportation system that is responsive to the needs of airport 
users; 
(4) the Secretary and the Administrator have not enforced 
airport revenue diversion rules adequately and must have addi-
tional regulatory tools to increase eiuTorcement efforts; and 
(5) sponsors who have been found to have illegally diverted 
airport revenues— 
(A) have not reimbursed or made restitution to airports 
in a timely manner; and 
(B) must be encouraged to do so. 
(b) PURPC^E.—The purpose of this title is to ensure that airpcMrt 
users are not burdened witih hidden taxation for unrelated mimici-
pal services and activities by— 
(1) eliminating the ability of any State or political subdivi-
sion thereof that is a recipient of a project grant to divert 
airport revenues for purposes that are not related to an airport, 
in violation of section 47107 of titie 49, United States Code; 
(2) imposing financial reporting requirements that are 
designed to identify instances of illegal (Uversions referred to 
in paragraph (1); 
(3) establishing a statute of limitations for airport revenue 
diversion actions; 
(4) clarifying limitations on revenue diversion that are 
permitted under chapter 471 of titie 49, United States Code; 
and 
(5) establishing clear penalties and enforcement mecha-
nisms for identifying and prosecuting airport revenue diversion. 
49 use 47107 
&»C. 803. DEFINITIONS. 
For purposes of 
this title, the following definitions apply: 
(1) ADMINISTRATOR.—^The term "Administrator" means the 
Administrator of the Federal Aviation Administration. 
(2) AIRPORT.—^The term "airport" has the meaning provided 
that term in section 47102(2) of title 49, United States Code. 
(3) PROJECT GRANT.—The term "project grant" has the 
meaning provided that term in section 47102(14) of title 49, 
United States Code. 
(4) SECRETARY.—^The term "Secretary" means the Secretary 
of Transportation. 
(5) SPONSOR.—The term "sponsor" has the meaning pro-
vided that term in section 47102(19) of title 49, United States 
Code. 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3271 
SEC. 804. RESTRICTION ON USE OF AIRPORT REVENUES. 
(a) IN GENERAL.—Subchapter I of chapter 471, as amended 
by section 142 of this Act, is further amended by adding after 
section 47132 the following: 
"§ 47133. Restriction on use of revenues 
"(a) PROHIBITION.—Local taxes on aviation fuel (except taxes 
in effect on December 30, 1987) or the revenues generated by 
an airport that is the subject of Federal assistance may not be 
expended for einy purpose other than the capital or operating 
costs of— 
"(1) the airport; 
"(2) the local airport system; or 
"(3) any other local facility that is owned or operated by 
the person or entity that owns or operates the zdrport that 
is directly and substantially related to the air transportation 
of passengers or property. 
"(b) EXCEPTIONS.—Subsection (a) shall not apply if a provision 
enacted not later th£in September 2, 1982, in a law controlling 
financing by the airport owner or operator, or a covenant or assur-
ance in a debt obligation issued not later than September 2, 1982, 
by the owner or operator, provides that the revenues, including 
local taxes on aviation fuel at public airports, from any of the 
facilities of the owner or operator, including the airport, be used 
to support not only the airport but also the general debt obligations 
or other facilities of the owner or operator. 
"(c) RULE OF CONSTRUCTION.—Nothing in this section may be 
construed to prevent the use of a State tax on aviation fuel to 
support a State aviation program or the use of airport revenue 
on or off the airport for a noise mitigation purpose.". 
(b) PENALTIES.—Section 46301(a)(5) is amended to read as 
follows: 
"(5) PENALTY FOR DIVERSION OF AVIATION REVENUES.—^The 
amount of a civil penalty assessed under this section for a 
violation of section 47107(b) of this title (or any assurance 
made under such section) or section 47133 of this title may 
be increased above the otherwise appHcable maximum amount 
under this section to an amount not to exceed 3 times the 
£imount of revenues that are used in violation of such section.". 
(c) CONFORMING AMENDMENT.—The table of sections for such 
subchapter is amended by inserting after the item relating to section 
47132, as added by section 142 of this Act, the following: 
"47133. Restriction on use of revenues.". 
SEC. 805. REGULATIONS; AUDITS AND ACCOUNTABILITY. 
(a) IN GENERAL.—Section 47107 is amended by adding at the 
end the following: 
"(m) AUDIT CERTIFICATION.— 
"(1) IN GENERAL.—The Secretary of Transportation, acting 
through the Administrator of the Federal Aviation Administra-
tion, shall promulgate regulations tiiat require a recipient of 
a project grant (or any other recipient of Federal financial 
assistance that is provided for an airport) to include as part 
of an annual audit conducted under sections 7501 through 
7505 of title 31, a review and opinion of the review concerning 
the funding activities with respect to an airport that is the 
subject of the project grant (or other Federal 
financial 
110 STAT. 3272 
PUBLIC LAW 104-264—OCT. 9, 1996 
assistance) and the sponsors, owners, or operators (or other 
recipients) involved. 
"(2) CONTENT OF REVIEW.—A review conducted under para-
graph (1) shall provide reasonable assurances that funds paid 
or transferred to sponsors are paid or transferred in a manner 
consistent with the applicable requirements of this chapter 
and any other applicable provision of law (including regulations 
promulgated by the Secretary or the Administrator). 
"(3) REQUIREMENTS FOR AUDIT REPORT.—The report submit-
ted to the Secretary under this subsection shall include a spe-
cific determination and opinion regarding the appropriateness 
of the disposition of airport funds paid or transferred to a 
sponsor, 
"(n) RECOVERY OF ILLEGALLY DIVERTED FUNDS.— 
"(1) IN GENERAL.—Not later than 180 days after the issu-
ance of an audit or any other report that identifies an illegal 
diversion of airport revenues (as determined under subsections 
(b) and (1) and section 47133), the Secretary, acting through 
the Administrator, shall— 
"(A) review the audit or report; 
"(B) perform appropriate factfinding; and 
"(C) conduct a hearing and render a final determination 
concerning whether the illegal diversion of airport revenues 
asserted in the audit or report occurred. 
"(2) NOTIFICATION.—Upon making such a finding, the Sec-
retary, acting through the Administrator, shall provide written 
notification to the sponsor and the airport of— 
"(A) the finding; and 
"(B) the obligations of the sponsor to reimburse the 
airport involved under this paragraph. 
"(3) ADMINISTRATIVE ACTION.—The Secretary may withhold 
any amount from funds that would otherwise be made available 
to the sponsor, including funds that would otherwise be made 
available to a State, municipality, or political subdivision 
thereof (including any multimodal transportation agency or 
transit authority of which the sponsor is a member entity) 
as part of an apportionment or grant made available pursuant 
to this title, if the sponsor— 
"(A) receives notification that the sponsor is required 
to reimburse an airport; and 
"(B) has had an opportunity to reimburse the airport, 
but has failed to do so. 
"(4) CIVIL ACTION.—If a sponsor fails to pay an amount 
specified under paragraph (3) during the 180-day period begin-
ning on the date of notification and the Secretary is unable 
to withhold a sufficient amount under paragraph (3), the Sec-
retary, acting through the Administrator, may initiate a civil 
action under which the sponsor shall be liable for civil penalty 
in an amount equal to the illegal diversion in question plus 
interest (as determined under subsection (o)). 
"(5) DISPOSITION OF PENALTIES.— 
"(A) 
AMOUNTS WITHHELD.—The 
Secretary 
or 
the 
Administrator shall transfer any amounts withheld under 
paragraph (3) to the Airport and Airway Trust Fund. 
"(B) CIVIL PENALTIES.—^With respect to any amoimt 
collected by a court in a civil action under paragraph (4), 
the court shall cause to be transferred to the Airport and 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3273 
Airway Trust Fund any amount collected as a civil penalty 
under paragraph (4). 
"(6) REIMBURSEMENT.—The Secretary, acting through the 
Administrator, shall, as soon as practicable after any amount 
is collected from a sponsor under paragraph (4), cause to be 
transferred from the Airport and Airway Trust Fund to an 
airport affected by a diversion that is the subject of a civil 
action under paragraph (4), reimbursement in an amount equal 
to the amount that has been collected from the sponsor under 
paragraph (4) (including any amount of interest calculated 
under subsection (o)). 
"(7) STATUTE OF LIMITATIONS.—No person may bring an 
action for the recovery of funds illegally diverted in violation 
of this section (as determined imder subsections (b) emd (1)) 
or section 47133 after the date that is 6 years after the date 
on which the diversion occurred. 
"(o) INTEREST.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
the Secretary, acting through the Administrator, shall charge 
a minimum eumusd rate of interest on the amount of any 
illegal diversion of revenues referred to in subsection (n) in 
an amount equal to the average investment interest rate for 
tax and loan accounts of the Department of the Treasury (as 
determined by the Secretary of the Treasury) for the applicable 
calendar year, rounded to the nearest whole percentage point. 
"(2) ADJUSTMENT OF INTEREST RATES.—If, with respect to 
a calendar quarter, the average investment interest rate for 
tax and loan accounts of the Department of the Treasury 
exceeds the average investment interest rate for the imme-
diately preceding calendar quarter, rounded to the nearest 
whole percentage point, the Secretary of the Treasury may 
adjust the interest rate charged under this subsection in a 
manner that reflects that change. 
"(3) ACCRUAL.—Interest assessed under subsection (n) shall 
accrue from the date of the actual illegal diversion of revenues 
referred to in subsection (n). 
"(4) DETERMINATION OF APPLICABLE RATE.—The applicable 
rate of interest cheu-ged underparagraph (1) shall— 
"(A) be the rate in effect on the date on which interest 
begins to accrue under paragraph (3); and 
"(B) remain at a rate fixed under subparagraph (A) 
during the duration of the indebtedness, 
"(p) PAYMENT BY AIRPORT TO SPONSOR.—If, in the course of 
an audit or other review conducted under this section, the Secretary 
or the Administrator determines that an airport owes a sponsor 
funds as a result of activities conducted by the sponsor or expendi-
tures by the sponsor for the benefit of the airport, interest on 
that amount shall be determined in the same manner as provided 
in paragraphs (1) through (4) of subsection (o), except that the 
amount of any interest assessed under this subsection shall be 
determined from the date on which the Secretary or the Adminis-
trator makes that determination.". 
(b) REVISION OF POLICIES AND PROCEDURES; DEADLINES.— 
49 use 47107 
(1) IN GENERAL.—Not later than 90 days after the date note. 
of the enactment of this Act, the Secretary, acting through 
the Administrator, shall revise the policies and procedures 
estabUshed under section 47107(1) of title 49, United States 
110 STAT. 3274 
PUBLIC LAW 104-264—OCT. 9, 1996 
Code, to take into account the amendments made to that section 
by this title. 
(2) STATUTE OF LIMITATIONS.—Section 47107(1) is amended 
by adding at the end the following: 
"(5) STATUTE OF LIMITATIONS.—In addition to the statute 
of limitations specified in subsection (n)(7), with respect to 
project grants made under this chapter— 
"(A) any request by a sponsor to any airport for addi-
tional payments for services conducted off of the edrport 
or for reimbursement for capital contributions or operating 
expenses shall be filed not later than 6 years after the 
date on which the expense is incurred; and 
"(B) any amount of airport funds that are used to 
make a payment or reimbursement as described in 
subparagraph (A) after the date specified in that subpara-
graph shall be considered to be an illegal diversion of 
airport revenues that is subject to subsection (n).". 
SEC. 806. CONFORMING AMENDMENTS TO THE INTEBNAL REVENUE 
CODE OF 1986. 
26 use 9502. 
Section 9502 of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking "and" at the end of subsection (b)(3); 
(2) by striking the period at the end of subsection (b)(4) 
and inserting ", and"; £ind 
(3) by adding at the end of subsection (b) the following: 
"(5) £unounts determined by the Secretary of the Treasury 
to be equivalent to the amounts of civil penalties collected 
under section 47107(n) of title 49, United States Code."; and 
(4) by adding at the end of subsection (d) the foUovmig: 
"(5) TRANSFERS FROM THE AIRPORT AND AIRWAY TRUST FUND 
ON ACCOUNT OF CERTAIN AIRPORTS.—The Secretary of the Treas-
ury may transfer from the Airport and Airway Trust Fxmd 
to the Secretary of Transportation or the Adiininistrator of 
the Federal Aviation Administration an amount to make a 
payment to an airport affected by a diversion that is the subject 
of an administrative action under paragraph (3) or a civil 
action under paragraph (4) of section 47107(n) of title 49, 
United States Code.". 
TITLE IX—METROPOLITAN 
MetropoHtan 
WASHINGTON AIRPORTS 
Washington 
Airports 
Amendments Act 
SEC. 901. SHORT TITLE. 
This title may be cited as the "Metropolitan Washington Air-
ports Amendments Act of 1996". 
SEC. 902. USE OF LEASED PROPERTY. 
Section 6005(c)(2) of the Metropolitan Washington Airports Act 
of 1986 (49 U.S.C. App. 2454(c)(2)) is amended by inserting before 
the period at the end of the second sentence the following: "which 
are not inconsistent with the needs of aviation". 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3275 
SEC. 903. BOARD OF DIRECTORS. 
(a) APPOINTMENT OF ADDITIONAL MEMBERS.—Section 6007(e)(1) 
of the Metropolitan Washington Airports Act of 1986 (49 U.S.C. 
App. 2456(e)(1)) is amended— 
(1) in the matter preceding subparagraph (A) by striking 
"11" and inserting "13"; 
(2) in subparagraph (D) by striking "one member" and 
inserting "three members". 
(b) RESTRICTIONS.—Section 6007(e)(2) of the Metropohtan 
Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)(2)) is 
amended by striking "except that" and all that follows through 
the period and inserting "except that the members appointed by 
the President shall be registered voters of States other than Mary-
land, Virginia, or the District of Columbia.". 
(c) TERMS.—Section 6007(e)(3) of the Metropolitan Washington 
Airports Act of 1986 (49 U.S.C. App. 2456(e)(3)) is amended— 
(1) in subparagraph (B) by striking "and" at the end; 
(2) in subparagraph (C) by striking the period at the end 
and inserting ; andf"; and 
(3) by adding at the end the following: 
"(D) by the President after the date of the enactment President, 
of this subparagraph, 1 shall be appointed for 4 years. 
A member may serve after the expiration of that member's 
term until a successor has taken office.". 
(d) VACANCIES.—Section 6007(e) of the Metropolitan Washing-
ton Airports Act of 1986 (49 U.S.C. App. 2456(e)) is amended 
by redesignating paragraphs (4) and (5) as paragraphs (8) and 
(9), respectively, and by inserting after paragraph (3) the following: 
"(4) VACANCIES.—^A vacancy in the board of directors shadl 
be filled in the manner in which the original appointment 
was made. Any member appointed to fill a vacancy occurring 
before the expiration of the term for which the member's prede-
cessor was appointed sh£ill be appointed only for the remainder 
of such term.". 
(e) POLITICAL PARTIES OF PRESIDENTIAL APPOINTEES.—Section 
6007(e) of the Metropolitan Washington Airports Act of 1986 (49 
U.S.C. App. 2456(e)) is amended by inserting after paragraph (4), 
as inserted by subsection (d) of this section, the following: 
"(5) POLITICAL PARTIES OF PRESIDENTIAL APPOINTEES.—Not 
more than 2 of the members of the board appointed by the 
President may be of the same political party.". 
(f) DUTIES OF PRESIDENTIAL APPOINTEES.—Section 6007(e) of 
the Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 
2456(e)) is amended by inserting after paragraph (5), as inserted 
by subsection (e) of this section, the following: 
"(6) DUTIES OF PRESIDENTIAL APPOINTEES.—In carrying out 
their duties on the board, members of the board appointed 
by the President shall ensure that adequate consideration is 
given to the national interest.". 
(g) 
DEADLINE 
FOR PRESIDENTIAL 
APPOINTMENTS.—Section 
6007(e) of the Metropolitan Washington Airports Act of 1986 (49 
U.S.C. App. 2456(e)) is amended by inserting after paragraph (6), 
as inserted by subsection (f) of this section, the following: 
"(7) DEADLINE FOR PRESIDENTIAL APPOINTMENTS.— 
"(A) DEADLINE.—The members to be appointed to the 
board by the President under section 6007(e)(1)(D) shall 
be appointed on or before September 30,1997. 
110 STAT. 3276 
PUBLIC LAW 104-264—OCT. 9, 1996 
"(B) APPLICABILITY OF LIMITATIONS.—If the deadline 
of subpsiragraph (A) is not met, the Secretary and the 
Airports Authority shall be subject to the limitations 
described in subsection (i) for the period beginning on Octo-
ber 1, 1997, and ending on the first day on which all 
of the members referred to in subparagraph (A) have been 
appointed.", 
(h) REQUIRED NUMBER OF VOTES.—Section 6007(e)(9) of the 
Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 
2456(e)(9)), as redesignated by subsection (d) of this section, is 
amended by striking "Seven" and inserting "Eight". 
SEC. 904. TERIVONATION OF BOARD OF REVIEW. 
(a) IN GENERAL.—Section 6007 of the Metropolitan Washington 
Airports Act of 1986 (49 U.S.C. App. 2456) is amended by striking 
subsections (f) and (h) and redesignating subsections (g) and (i) 
as subsections (f) and (g), respectively. 
(b) STAFF.—Section 6007 of the Metropolitan Washington Air-
ports Act of 1986 (49 U.S.C. App. 2456) is amended— 
(1) by inserting paragraph (8) of subsection (f), as in effect 
before the amendment made by subsection (a) of this section, 
after subsection (g), as redesignated by such subsection (a); 
(2) by moving such paragraph 2 ems to the left and 
redesignating such paragraph as subsection (h); and 
(3) in subsection (h), as so redesignated— 
(A) in the first sentence by striking "The Board of 
Review" and inserting "To assist the Secretary in canying 
out this Act, the Secretary"; and 
(B) in the second sentence by striking "Board" and 
inserting "Secretary". 
(c) CONFORMING AMENDMENTS.—The Metropolitan Washington 
Airports Act of 1986 (49 U.S.C. App. 2451 et seq.) is amended— 
(1) in section 6009(b) by striking "or by reason" £ind all 
that follows before the period; and 
(2) in section 6011 by striking "Except as provided in 
section 6007(h), if and inserting "If. 
(d) PROTECTION OF CERTAIN ACTIONS.—Actions taken by the 
Metropolitan Washington Airports Authority and required to be 
submitted to the Board of Review pursuant to section 6007(f)(4) 
of the Metropolitan Washington Airports Act of 1986 before the 
date of the enactment of this Act shall remain in effect and shsJl 
not be set aside solely by reason of a judicial order invalidating 
certain functions of the Board of Review. 
SEC. 905. LIMITATIONS. 
Section 6007 of the Metropolitan Washington Airports Act of 
1986 (49 U.S.C. App. 2456) is further amended by adding at the 
end the following: 
"(i) LIMITATIONS.—After October 1, 2001— 
"(1) the Secretary may not approve an application of the 
Airports Authority for an airport development project grant 
under subchapter I of chapter 471 of title 49, United States 
Code; and 
"(2) the Secretary may not approve an application of the 
Airports Authority to impose a passenger facility fee under 
section 40117 of such title.". 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3277 
SEC. 906. USE OF DULLES AIRPORT ACCESS HIGHWAY. 
? 
The Metropolitan Washington Airports Act of 1986 (49 U.S.C. 
App. 2451 et seq.) is further amended by adding at the end the 
following: 
"SEC. 6013. USE OF DULLES AIRPORT ACCESS HIGHWAY. 
"(a) RESTRICTIONS.—Except as provided by subsection (b), the 
Airports Authority shall continue in effect and enforce paragraphs 
(1) and (2) of section 4.2 of the Metropolitsin Washington Airports 
Regulations, as in effect on February 1,1995. 
"(b) ENFORCEMENT.—The district courts of the United States 
shall have jurisdiction to compel the Airports Authority and its 
officers and employees to comply with the requirements of this 
section. An action may be brought on behalf of the United States 
by the Attorney General or by any aggrieved party.". 
SEC. 907. EFFECT OF JUDICIAL ORDER. 
The Metropolitan Washington Airports Act of 1986 (49 U.S.C. 
App. 2451 et seq.) is further amended by adding at the end the 
following: 
"SEC. 6014. EFFECT OF JUDICIAL ORDER. 
"If any provision of the Metropolitan Washington Airports 
Amendments Act of 1996 or the amendments made by such Act 
(or the appUcation of tiiat provision to any person, circumstance, 
or venue) is held invahd by a judicial order, on the day after 
the date of the issuance of such order, and thereafter, the Secretary 
of Transportation and the Metropolitan Washington Airports 
Authority shall be subject to the limitations described in section 
6007(i)ofthisAct.". 
SEC. 908. AMENDMENT OF LEASE. 
The Secretary of Transportation shall amend the lease entered 
into with the Metropolitan Washington Airports Authority under 
section 6005(a) of the Metropolitan Washington Airports Authority 
Act of 1986 to secure the Airports Authority's consent to the amend-
ments made to such Act by this title. 
SEC. 909. SENSE OF THE SENATE. 
It is the sense of tht Senate that the MetropoUtan Washington 
Airports Authority— 
(1) should not provide any reserved parking areas free 
of charge to Members of Congress, other Government officials, 
or diplomats at Washington National Airport or Washington 
Dulles International Airport; and 
(2) should establish a parking policy for such airports that 
provides equal access to the public, and does not provide pref-
erential parking privileges to Members of Congress, other 
Government officials, or diplomats. 
110 STAT. 3278 
PUBLIC LAW 104-264—OCT. 9, 1996 
TITLE X—EXTENSION OF AIRPORT AND 
AIRWAY TRUST FUND EXPENDITURES 
SEC. 
1001. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND 
EXPENDITURES. 
(a) EXTENSION OF EXPENDITURE AUTHORITY.—Paragraph (1) 
26 use 9502. 
of section 9502(d) of the Internal Revenue Code of 1986 is amended 
by striking "October 1, 1996" and inserting "October 1, 1998". 
(b) EXTENSION OF TRUST FUND PURPOSES.—Subparagraph (A) 
of section 9502(dXl) of such Code is amended by inserting Ibefore 
the semicolon at the end "or the Federal Aviation Reauthorization 
Act of 1996". 
FAAReseaich. 
TITLE XI—FAA RESEARCH, 
te^SSt'*™* 
ENGINEERING, AND DEVELOPMENT 
Management 
^rmActof 
SEC. 1101. SHORT TITLE. 
49 use 40101 
Tiiig title may be cited as the "FAA Research, Engineering, 
• 
and Development Management Reform Act of 1996". 
SEC. 1102. AUTHORIZATION OF APPROPRIATIONS. 
Section 48102(a) is amended— 
(1) by striking "and" 
at the end of paragraph (IX 
J); 
(2) by striking the period at the end oi paragraph (2XJ) 
and inserting in Ueu thereof"; and"; and 
(3) by adding at the end the folloMong: 
"(3) for fiscal year 1997— 
"(A) $13,660,000 for system development and infira-
structure projects and activities; 
"(B) $34,889,000 for capacity and air traffic manage-
ment technology projects and activities; 
"(C) $19,000,000 for communications, navigation, and 
surveillance projects and activities; 
"(D) $13,0()0,000 for weather projects and activities: 
"(E) $5,200,000 for airport technology projects and 
activities; 
"(F) $36,504,000 for aircraft safety technology projects 
and activities; 
"(G) $57,055,000 for system 
security 
technology 
projects and activities; 
"(H) $23,504,000 for human factors and aviation medi-
cine projects and activities; 
(I) $3,600,000 for environment and energy projects 
and activities; and 
"(J) $2,000,000 for innovative/cooperative research 
projects and activities.". 
SEC. 
1103. RESEARCH PRIORITIES. 
Section 48102(b) is amended— 
(1) by redesignating paragraph (2) as paragraph (3); and 
(2) by striking "AVAILABILITY F
O
R RESEARCH.—(1)" and 
inserting in lieu thereof "RESEARCH PRIORITIES.—(1) The 
Administrator shall consider the advice and recommendations 
of the research advisory committee estabUshed by section 44508 
of this title in establishing priorities among major categories 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3279 
of research and development activities carried out by the Fed-
eral Aviation Administration. 
"(2)". 
SEC. 1104. RESEARCH ADVISORY COMMITTEE. 
Section 44508(a)(1) is amended— 
(1) by striking "and" at the end of subparagraph (B); 
(2) by striking the period at the end of subparagraph (C) 
and inserting in lieu thereof"; and"; and 
(3) by inserting after subparagraph (C) the following: 
"(D) annually review the allocation made by the Adminis-
trator of the amounts authorized by section 48102(a) of this 
title £mGiong the major categories of resesirch and development 
activities carried out by the Administration and provide advice 
and recommendations to the Administrator on whether such 
allocation is appropriate to meet the needs and objectives identi-
fied under subparagraph (A).". 
SEC. 1105. NATIONAL AVIATION RESEARCH PLAN. 
Section 44501(c) is amended— 
(1) in paragraph (2)(A) by striking "15-year" and inserting 
in lieu thereof "5-year"; 
(2) by amending subparagraph (B) to read as follows: 
"(B) The plan shall— 
"(i) provide estimates by year of the schedule, cost, and 
work force levels for each active and planned major research 
and development project under sections 40119, 44504, 44505, 
44507, 44509, 44511-44513, and 44912 of this title, including 
activities carried out under cooperative agreements with other 
Federal departments and agencies; 
"(ii) specify the goals and the priorities for allocation of 
resources among the major categories of research and develop-
ment activities, including the rationale for the priorities identi-
fied; 
"(iii) identify the allocation of resources among long-term 
research, near-term research, and development activities; and 
"(iv) highlight the research and development activities that 
address specific recommendations of the research advisory 
committee estabUshed under section 44508 of this title, and 
document the recommendations of the committee that are not 
accepted, specifying the reasons for nonacceptsince."; and 
(3) in paragraph (3) by inserting ", iucluding a description 
of the dissemination to the private sector of research results 
and a description of any new technologies developed" after 
"during the prior fiscal year". 
TITLE XII—MISCELLANEOUS 
PROVISIONS 
SEC. 1201. PURCHASE OF HOUSING UNITS. 
Section 40110 is amended— 
(1) by redesignating subsection (b) as subsection (c); and 
(2) by inserting after subsection (a) the following: 
"(b) PURCHASE OF HOUSING UNITS.— 
"(1) AUTHORITY.—In canying out this part, the Adminis-
trator may purchase a housing unit (including a condominium 
1X0 STAT. 3280 
PUBLIC LAW 104-264—OCT. 9, 1996 
or a housing unit in a building owned by a cooperative) that 
is located outside the contiguous United States if the cost 
of the unit is $300,000 or less. 
"(2) ADJUSTMENTS FOR INFLATION.—For fiscal years begin-
ning after September 30, 1997, the Administrator may adjust 
the dollar amoimt specified in paragraph (1) to take into 
account increases in local housing costs. 
"(3) CONTINUING OBLIGATIONS.—Notwithstanding section 
1341 of title 31, the Administrator may purchase a housing 
unit under paragraph (1) even if there is an obligation there-
after to pay necessary and reasonable fees duly assessed upon 
such unit, including fees related to operation, maintenance, 
taxes, and insurance. 
"(4) CERTIFICATION TO CONGRESS.—The Administrator may 
purchase a housing unit under paragraph (1) only if, at least 
30 days before completing the purchase, the Administrator 
transmits to the Committee on Transportation and Infrastruc-
ture of the House of Representatives £ind the Committee on 
Commerce, Science, and Transportation of the Senate a report 
conteuning— 
"(A) a description of the housing unit and its price; 
"(B) a certification that the price does not exceed the 
median price of housing units in the area; and 
"(C) a certification that purchasing the housing unit 
is the most cost-beneficial means of providing necessary 
accommodations in carrying out this part. 
"(5) PAYMENT OF FEES.—The Administrator may pay, when 
due, fees resulting from the purchase of a housing unit under 
this subsection from any amounts made available to the 
Administrator.". 
SEC. 1202. CLARIFICATION OF PASSENGER FACILITY REVENUES AS 
CONSTITUTING TRUST FUNDS. 
Section 40117(g) is amended by adding at the end the following: 
"(4) Passenger facility revenues that are held by an air carrier 
or an agent of the carrier after collection of a passenger facility 
fee constitute a trust fund that is held by the air carrier or agent 
for the beneficial interest of the eligible agency imposing the fee. 
Such carrier or agent holds neither legal nor equitable interest 
in the passenger mcility revenues except for any handling fee or 
retention of interest collected on unremitted proceeds as may be 
allowed by the Secretary.", 
49 use 47101 
SEC. 1203. AUTHORITY TO CLOSE AIRPORT LOCATED NEAR CLOSED 
note. 
OR REALIGNED MILITARY BASE. 
Notwithstanding any other provision of a law, rule, or grant 
assurance, an airport that is not a commercial service airport may 
be closed by its sponsor without any obligation to repay grants 
made under chapter 471 of title 49, United States Code, the Airport 
and Airway Improvement Act of 1982, or any other law if the 
airport is located within 2 miles of a United States Army depot 
which has been closed or realigned; except that in the case of 
disposal of the land associated with the airport, the part of the 
proceeds from the disposal that is proportional to the Government's 
share of the cost of acquiring the land shall be paid to the Secretary 
of Transportation for deposit in the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue Code 
ofl986(26U.S.C. 9502). 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3281 
SEC. 1204. GADSDEN AIR DEPOT, ALABAMA. 
(a) AUTHORITY TO GRANT WAIVERS.—^Notwithstanding section 
16 of the Federal Airport Act (as in effect on May 4, 1949), the 
Secretary is authorized, subject to the provisions of section 47153 
of title 49, United States Code, and the provisions of subsection 
(b) of this section, to waive any of the terms contained in the 
deed of conveyance dated May 4, 1949, under which the United 
States conveyed certain property to the city of Gadsden, Alabama, 
for airport purposes. 
(b) CONDITIONS.—^Any waiver granted under subsection (a) shgQl 
be subject to the following conditions: 
(1) The city of Gadsden, Alabsmia, shall agree that, in 
conveying any interest in the property which the United States 
conveyed to the city by a deed described in subsection (a), 
the city will receive an amount for such interest which is 
equal to the fair msirket value of such interest (as determined 
pursuant to regulations issued by the Secretary). 
(2) Any such amount so received by the city shall be used 
by the city for the development, improvement, operation, or 
maintenance of a public airport, lands (including any improve-
ments thereto) which produce revenues that are used for airport 
development purposes, or both. 
SEC. 
1205. REGULATIONS AFFECTING INTRASTATE AVIATION IN 
ALASKA. 
In modifying regulations contsdned in title 14, Code of Federal 
Regulations, in a manner affecting intrastate aviation in Alaska, 
the Administrator of the Federal Aviation Administration shall 
consider the extent to which Alaska is not served by transportation 
modes other than aviation, and shall establish such regulatory 
distinctions as the Administrator considers appropriate. 
SEC. 1206. WESTCHESTER COUNTY AIRPORT, NEW YORK. 
Notwithstanding sections 47107(b) and 47133 of title 49, United 
States Code, and any other law, regulation, or grant assurance, 
all fees received by Westchester County Airport in the State of 
New York may be paid into the treasury of Westchester County 
pursuant to section 119.31 of the Westchester Coimty Charter if 
the Secretary finds that the expenditures from such treasury for 
the capital and operating costs of the Airport after December 31, 
1990, have been and will be equal to or greater than the fees 
that such treasury receives from the Airport. 
SEC. 1207. BEDFORD AIRPORT, PENNSYLVANIA. 
If the Administrator of the Federal Aviation Administration 
decommissions an instrument landing system in Pennsylvania, the 
Administrator may transfer and install the system at Bedford Air-
port, Pennsylvania. 
SEC. 1208. WORCESTER MUNICIPAL AIRPORT, MASSACHUSETTS. 
The Administrator of the Federal Aviation Administration shall 
take such actions as may be necessary to improve the safety of 
aircraft landing at Worcester Municipal Airport, Massachusetts, 
including, if appropriate, providing air traffic radar service to such 
airport from the Providence Approach Radar Control in Coventry, 
Rhode Island. 
110 STAT. 3282 
PUBLIC LAW 104-264—OCT. 9, 1996 
SEC. 1209. CENTRAL FLORmA AIRPORT, SANFORD, FLORIDA. 
The Administrator of the Federal Aviation Administration shall 
take such actions as may be necessary to improve the safety of 
aircraft landing at Central Florida Airport, Sanford, Florida, includ-
ing, if appropriate, providing a new instrument landing system 
on Runway 27R. 
SEC. 1210. AIRCRAFT NOISE OMBUDSMAN. 
Section 106, as amended by section 230 of this Act, is further 
amended by adding at the end the following: 
"(q) AIRCRAFT NOISE OMBUDSMAN.— 
"(1) ESTABLISHMENT.—There shall be in the Administration 
an Aircraft Noise Ombudsman. 
"(2) GENERAL DUTIES AND RESPONSIBILITIES.—The Ombuds-
man shall— 
"(A) be appointed by the Administrator; 
"(B) serve as a liaison with the public on issues regard-
ing aircraft noise; and 
"(C) be consulted when the Administration proposes 
changes in aircraft routes so as to minimize any increases 
in aircraft noise over populated areas. 
"(3) NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES.—The 
appointment of an Ombudsman imder this subsection shall 
not result in an increase in the number of full-time equivalent 
employees in the Administration.". 
SEC. 1211. SPECIAL 
RULE FOR PRIVATELY 
OWNED 
RELIEVER 
AIRPORTS. 
Section 47109 is amended by adding at the end the following: 
"(c) 
SPECIAL RULE FOR PRIVATELY OWNED RELIEVER 
AIR-
PORTS.—If a privately owned reliever airport contributes any lands, 
easements, or rights-of-way to carry out a project under this sub-
chapter, the current fair market value of such lands, easements, 
or rights-of-way shall be credited toward the non-Federal share 
of allowable project costs.". 
SEC. 1212. SENSE OF THE SENATE REGARDING THE FUNDING OF THE 
FEDERAL AVIATION ADMINISTRATION. 
(a) FINDINGS.—The Senate finds that— 
(1) Congress is responsible for ensuring that the financial 
needs of the FedergJ Aviation Administration, the agency that 
performs the critical function of overseeing the Nation's air 
traffic control system and ensuring the safety of air travelers 
in the United States, are met; 
(2) aviation excise taxes that constitute the Airport and 
Airway Trust Fund, which provides most of the funding for 
the Federal Aviation Administration, have expired; 
(3) the surplus in the Airport and Airway Trust Fund 
will be spent by the Federal Aviation Administration by Decem-
ber 1996; 
(4) the existing system of funding the Federal Aviation 
Administration will not provide the agency with sufficient short-
term or long-term funding; 
(5) this Act creates a sound process to review Federal 
Aviation Administration funding and develop a funding system 
to meet the Federal Aviation Administration's long-term fund-
ing needs; and 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3283 
(6) without immediate action by Congress to ensure that 
the Federal Aviation Administration's financial needs are met, 
air travelers' confidence in the system could be undermined. 
(b) SENSE OF THE SENATE.—It is the sense of the Senate that 
there should be an immediate enactment of an 18-month reinstate-
ment of the aviation excise taxes to provide short-term funding 
for the Federal Aviation Administration. 
SEC. 1213. RURAL AIR FARE STUDY. 
(a) IN GENERAL.—^The Secretary shall conduct a study to— 
(1) compare air fares paid (calculated as both actual and 
adjusted edr fares) for air transportation on flights conducted 
by commercial air carriers— 
(A) between— 
(i) nonhub airports located in small communities; 
and 
(ii) large hub airports; and 
(B) between large hub airports; 
(2) £inalyze— 
(A) the extent to which passenger service that is pro-
vided from nonhub airports is provided on— 
(i) regional commuter commercial air carriers; or 
(ii) major air carriers; 
(B) the type of aircraft employed in providing passenger 
service at nonhub airports; and 
(C) whether there is competition among commercial 
air carriers with respect to the provision of air service 
to passengers from nonhub airports. 
(b) FINDINGS.—^The Secretary shall include in the report of 
the study conducted under subsection (a) findings concerning— 
(1) whether passengers who use commercial air carriers 
to and from rural areas (as defined by the Secretary) pay 
a disproportionately greater price for that transportation than 
passengers who use commercial air carriers between urban 
areas (as defined by the Secretary); 
(2) the nature of competition, if any, in rural markets 
(as defined by the Secretary) for commercial air carriers; 
(3) whether a relationship exists between higher air fares 
and competition among commercial air carriers for passengers 
traveling on jet aircraft from small communities (as defined 
by the Secretary) and, if such a relation exists, the nature 
of that relationship; 
(4) the number of small communities that have lost air 
service as a result of the deregulation of commercial air carriers 
with respect to air fares; 
(5) the number of small communities served by airports 
with respect to which, after commercial air carrier fares were 
deregulated, jet aircraft service was replaced by turboprop air-
craft service; and 
(6) where such replacement occurred, any corresponding 
decreases in available seat capacity for consumers at the air-
ports referred to in that subparagraph. 
(c) REPORT.—Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall submit a final report 
on the study carried out under subsection (a) to the Committee 
on Commerce, Science, and Transportation of the Senate and the 
110 STAT. 3284 
PUBLIC LAW 104-264—OCT. 9, 1996 
Committee on Transportation and Infrastructure of the House of 
Representatives. 
(d) DEFINITIONS.—For purposes of this section, the following 
definitions apply: 
(1) ADJUSTED AIR FARE.—The term "adjusted air fare" 
means an actual air fare that is adjusted for distance traveled 
by a passenger. 
(2) AIR CARRIER.—The term "air carrier" is defined in sec-
tion 40102(a)(2) of title 49, United States Code. 
(3) AIRPORT.—The term "airport" is defined in section 
40102(9) of such title. 
(4) COMMERCIAL AIR CARRIER.—The term "commercial air 
carrier" means an air carrier that provides air transportation 
for commercial purposes (as determined by the Secretary). 
(5) HUB AIRPORT.—The term "hub airport" is defined in 
section 41731(a)(2) of such title. 
(6) LARGE HUB AIRPORT.—The term "large hub airport" 
shall be defined by the Secretary but the definition may not 
include a small hub airport, as that term is defined in section 
41731(a)(5) of such title. 
(7) MAJOR AIR CARRIER.—The term "major air csirrier" shall 
be defined by the Secretary. 
(8) NONHUB AIRPORT.—The term "nonhub airport"- is 
defined in section 41731(a)(4) of such title. 
(9) REGIONAL COMMUTER AIR CARRIER.—The term "regional 
commuter air carrier" shall be defined by the Secretary. 
SEC. 1214. CARRIAGE 
OF CANDmATES IN STATE AND 
LOCAL 
ELECTIONS. 
The Administrator of the Feder£il Aviation Administration shall 
revise section 91.321 of the Administration's regulations (14 C.F.R. 
91.321), relating to the carriage of candidates in Federal elections, 
to make the same or similar rules applicable to the csirriage of 
candidates for election to public office in State and local government 
elections. 
SEC. 1215. SPECIAL FLIGHT RULES IN THE VldNITY OF GRAND 
CANYON NATIONAL PARK 
The Secretary of Transportation, acting through the Adminis-
trator of the Federal Aviation Administration, shall take such action 
as may be necessary to provide 45 additional days for comment 
by interested persons on the special flight rules in the vicinity 
of Grand Canyon National Park and the Draft Environmental 
Assessment described in the notice of proposed rulemaking issued 
on July 31, 1996, at 61 Fed. Reg. 40120 et seq. 
SEC. 1216. TRANSFER OF AIR TRAFFIC CONTROL TOWER; CLOSING 
OF FLIGHT SERVICE STATIONS. 
(a) HICKORY, NORTH CAROLINA TOWER.— 
(1) TRANSFER.—The Administrator of the Federal Aviation 
Administration may transfer any title, right, or interest the 
United States has in the air traffic control tower located at 
the Hickory Regional Airport to the City of Hickory, North 
Carolina, for the purpose of enabling the city to provide air 
traffic control services to operators of aircraft. 
(2) STUDY.—^The Administrator shall conduct a study to 
determine whether the number of operations at Hickory 
Regional Airport meet the criteria for contract towers and shall 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3285 
certify in writing to the Committee on Commerce, Science, 
and Transportation of the Senate and the Committee on Com-
merce and Infrastructure of the House of Representatives 
whether that airport meets those criteria. 
(b) NEW BERN-CRAVEN COUNTY STATION.—The Administrator 
shall not close the New Bern-Craven County flight services station 
or the Hickory Regional Aiiport flight service station unless the 
Administrator certifies in writing to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives 
that such closure will not result in a degradation of air safety 
and that it will reduce costs to taxpayers. 
(c) PIERRE, SOUTH DAKOTA STATION.—The Administrator shall 
not close the Pierre, South Dakota Regional Airport flight service 
station unless following the 180th day after the date of the enact-
ment of this Act the Administrator certifies in writing to the 
Committee on Commerce, Science, and Transportation of the Senate 
£ind the Committee on Transportation and Infrastructure of the 
House of Representatives that such closure will not result in a 
degradation of air safety, air service, or the loss of meteorological 
services or data that cannot otherwise be obtained in a more cost-
effective m£inner, and that it will reduce costs to taxpayers. 
SEC. 1217. LOCATION OF DOPPLER RADAR STATIONS, NEW YORK. 
(a) 
STUDY.—The Administrator of the Federal 
Aviation 
Administration shall conduct a study of the feasibility of construct-
ing 2 offshore platforms to serve as sites for the location of Doppler 
radar stations for John F. Kennedy International Airport and 
LaGuardia Airport in New York City, New York. 
(b) REPORT.—Not later than 90 days after the date of the 
enactment of this Act, the Administrator shall transmit to Congress 
a report on the results of the study conducted under subsection 
(a), including proposed locations for the offshore platforms. Such 
locations shall be as far as possible from populated areas while 
providing appropriate safety measures for John F. Kennedy Inter-
national Airport and LaGuardia Airport. 
SEC. 1218. TRAIN WHISTLE REQUIREMENTS. 
(a) IN GENERAL.—Section 20153 is amended by adding at the 
end the following: 
"(i) REGULATIONS.—In issuing regulations under this section, 
the Secretary— 
"(1) shall take into account the interest of communities 
that— 
"(A) have in effect restrictions on the sounding of a 
locomotive horn at highway-rail grade crossings; or 
"(B) have not been subject to the routine (as defined 
by the Secretary) soimding of a locomotive horn at highway-
rail grade crossings; 
"(2) shall work in partnership with affected communities 
to provide technical assistance and shall provide a reasonable 
amount of time for local commimities to install supplementary 
safety measures, taking into account local safety initiatives 
(such as public awareness initiatives and highway-rail grade 
crossing traffic law enforcement programs) subject to such 
terms and conditions as the Secretary deems necessary, to 
protect public safety; and 
110 STAT. 3286 
PUBLIC LAW 104-264—OCT. 9, 1996 
"(3) may waive (in whole or in part) any requirement 
of this section (other than a requirement of this subsection 
or subsection (j)) that the Secretary determines is not Ukely 
to contribute significantly to public safety, 
"(j) EFFECTIVE DATE OF REGULATIONS.—^Any regulations under 
this section shall not take effect before the 365th day following 
the date of publication of the final rule.". 
SEC. 1219. INCREASED FEES. 
(a) IN GENERAL.—^Notwithstanding any other provision of law, 
the Surface Transportation Board shall not increase fees for services 
to be collected from small shippers in connection with rail maximum 
rate complaints pursuant to part 1002 of title 49, Code of Federal 
Regulations, Ex Parte No. 542. 
Effective date. 
(b) APPLICABILITY.—Subsection (a) shall no longer be effective 
after September 30, 1998. 
SEC. 1220. STRUCTURES INTERFERING WITH AIR COMMERCE. 
(a) LANDFILLS.—Section 44718 is amended by adding at the 
end the following: 
"(d) LANDFILLS.—^For the purposes of enhancing aviation safety, 
in a case in which 2 landfills have been proposed to be constructed 
or established within 6 miles of a commercial service airport with 
fewer than 50,000 enplanements per year, no person shall construct 
or estabUsh either landfill if an official of the Federal Aviation 
Administration has stated in writing within the 3-year period end-
ing on the date of the enactment of this subsection that 1 of 
the landfills would be incompatible with aircraft operations at the 
airport, unless the landfill is already active on such date of 
enactment or the airport operator agrees to the construction or 
establishment of the landfill. . 
(b) CIVIL PENALTIES.—Section 46301 is amended by inserting 
"44718(d),'' after "44716," in each of subsections (aXl)(A), (dX2), 
and(f)(lXA)(i). 
SEC. 1221. HAWAH CARGO. 
Notwithstanding any other provision of law, and for a period 
that shall not extend beyond September 30, 1998, an air carrier 
which commenced all-cargo tumgiround service during November 
1995 with Stage 2 aircraft with a maximum weight of more than 
75,000 pounds may operate no more than one Stage 2 aircrsift 
in all-cargo turnaround service and may also maintain a second 
such aircraft in reserve. The reserve aircraft may only be used 
as a replacement aircraft when the first aircraft is not airworthy 
or is unavailable due to closure of an airport at which the first 
aircraft is located in the State of Hawaii. 
SEC. 1222. LIMITATION ON AUTHORITY OF STATES TO REGULATE 
GAMBLING DEVICES ON VESSELS. 
Subsection (b)(2) of section 5 of the Act of January 2, 1951 
(commonly referred to as the "Johnson Act") (64 Stat. 1135, chapter 
1194; 15 U.S.C. 1175), is amended by adding at the end the 
following: 
"(C) EXCLUSION OF CERTAIN VOYAGES AND SEGMENTS.— 
Except for a voyage or segment of a voyage that occurs 
within the boundaries of the State of Hawaii, a voyage 
or segment of a voyage is not described in subparagraph 
PUBLIC LAW 104-264—OCT. 9, 1996 
110 STAT. 3287 
(B) if such voyage or segment includes or consists of a 
segment— 
"(i) that begins and ends in the same State; 
"(ii) that is part of a voyage to another State 
or to a foreign country; and 
"(iii) in which the vessel reaches the other State 
or foreign country within 3 days after leaving the State 
in which such segment begins.". 
SEC. 1223. CLARIFYING AMENDMENT. 
Section 1 of the Railway Labor Act (45 U.S.C. 151) is amended 
by inserting ", any express company that would have been subject 
to subtitle IV of title 49, United States Code, as of December 
31, 1995," after "Board" the first place it appears in the first 
paragraph. 
Approved October 9, 1996. 
LEGISLATIVE HISTORY—H.R. 3539 (S. 1994): 
HOUSE REPORTS: Nos. 104-714, Pt. 1 (Comm. on Transportation and Infrastruc-
ture) and 104-848 (Comm. of Conference). 
SENATE REPORTS: No. 104-333 accompanying S. 1994 (Comm. on Commerce, 
Science, and Transportation). 
CONGRESSIONAL RECORD, Vol. 142 (1996): 
Sept. 10,11, considered and passed House. 
Sept. 18, considered and passed Senate, amended, in lieu of S. 1994. 
Sept. 27, House agreed to conference report. 
Sept. 30-Oct. 3, Senate considered and agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Oct. 9, Presidential remarks and statement.