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Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Air Traffic Control Service
Improvement Act of 1994''.

TITLE I--UNITED STATES AIR TRAFFIC SERVICE CORPORATION

SEC. 101. ESTABLISHMENT OF CORPORATION.

(a) In General.--There is established a wholly owned Government
corporation, to be known as the ''United States Air Traffic Service
Corporation'', to operate the air traffic control system of the United
States after the completion of transfers of air traffic control
facilities and equipment under section 201.
(b) Limitations.--The Corporation--
(1) except as provided in subsection (c), shall not be an
agency or establishment of the United States Government;
(2) shall have its principal office in the District of
Columbia and is deemed to be a resident thereof;
(3) to the extent consistent with this Act, shall be
subject to the District of Columbia Business Corporation Act
(D.C. Code, Sec. 29-301 et seq.);
(4) shall be subject to safety regulatory oversight of the
Federal Aviation Administration; and
(5) shall be self-sufficient through revenues earned by
charging fees to users of the air traffic control system.
(c) War or National Emergency.--
(1) Transfer of functions.--In the event of a declared war
or national emergency, the President may by Executive order
transfer any functions, personnel, property, records, funds,
and other matters relating to the Corporation to the Department
of Defense.
(2) Development of plans.--The Board, in consultation with
the Secretary of Defense, shall develop plans for the effective
discharge of the functions of the Corporation in the event of a
declared war or national emergency.

SEC. 102. CORPORATION.

(a) Chief Executive Officer.--Within 30 days after the date of the
enactment of this Act, the President shall appoint an interim chief
executive officer of the Corporation to handle the preliminary
development of the Corporation before the appointment of the board of
directors. The interim chief executive officer shall serve as a member
of the board until the board elects a permanent chief executive
officer. The chief executive officer (other than the interim chief
executive officer) shall be selected by the board. The first executive
officer to be selected shall be selected not later than the 180th day
following the date of the first meeting of the board.
(b) Appointment of Transition Team.--The interim chief executive
officer shall appoint a 6-member transition team which shall be
responsible for getting the Corporation operational and shall serve
until the Corporation is operational.
(c) Functions of Transition Team.--The transition team appointed
under this section shall--
(1) subject to approval by the President, draft and file
articles of incorporation for the Corporation, draft the
initial bylaws of the Corporation, and take any other actions
necessary for the establishment and initial operation of the
corporation; and
(2) after appointment of the board, the transition team
shall work under the board until the Corporation is
operational.
(d) Articles of Incorporation.--The articles of incorporation filed
by the transition team in accordance with subsection (c)--
(1) shall provide for cumulative voting under section 27(d)
of the District of Columbia Business Corporation Act (D.C.
Code, Sec. 29-327(d)); and
(2) may be amended, altered, changed, or repealed by a vote
of not less than /3\ of the members of the board.
(e) Budget.--The Corporation shall be subject to provisions of the
Government Corporation Control Act, shall submit an annual business-
type budget to Congress, and shall have an annual financial audit
performed by an independent public accountant.

SEC. 103. BOARD OF DIRECTORS AND OFFICERS.

(a) Board of Directors.--
(1) Membership.--The Corporation shall be governed by a
board of directors with 11 members. The board shall be
comprised of the chief executive officer of the Corporation,
the Secretary of Transportation, and the Secretary of Defense
(or their designees), and 8 members appointed by the President
with the advice and consent of the Senate.
(2) Appointed members.--The President shall appoint the
initial 8 appointed members of the board so that thereafter the
appointed members will serve on the board for 5-year staggered
terms. The 8 members of the board appointed by the President
shall be as follows:
(A) 3 members from among persons who represent the
views of commercial aviation interests.
(B) 1 member from among persons who represent the
views of airports.
(C) 1 member from among persons who represent the
views of employees of the Federal Aviation
Administration and the Corporation who belong to a
union.
(D) 1 member from among persons who represent the
views of general business interests.
(E) 2 members from among persons who represent the
views of noncommercial aviation interests.
(3) Chairperson.--The board shall elect one of its members
annually to serve as Chairperson.
(4) Compensation and expenses.--Members of the board may
receive compensation in accordance with rules established by
the board.
(5) Functions of the board.--The board shall meet at least
quarterly and shall be responsible for strategic planning and
approving major financial decisions of the Corporation, the
annual budget, and the level of user fees. The board shall
provide for public notice and comment on its fee proposals. The
board shall have authority over decisions about contracting for
air traffic control facilities, including Level I towers and
navigational facilities and equipment.
(6) Function of the secretary of transportation.--
(A) User fees.--In consultation with the Attorney
General, the Secretary of Transportation shall have the
authority to disapprove the kind and level of user fees
established by the board if such fees are not
reasonable as determined by the Secretary under
criteria established by the Secretary. Not later than
180 days after the date of the enactment of this Act,
the Secretary shall issue regulations establishing such
criteria. In determining if fees are reasonable under
this paragraph, the Secretary shall consider if the
fees will harm new entrant air carriers, diminish
competition among users of the air traffic control
system, or lead to excessive charges for air service.
(B) Borrowing.--The Secretary of Transportation
shall have the authority to disapprove borrowing by the
Corporation under the following circumstances:
(i) If the Corporation seeks to borrow
funds at levels which exceed a reasonable
prospect for repayment as determined by the
Secretary.
(ii) If the Corporation seeks to borrow
funds for inappropriate, wasteful, or
unreasonably speculative activities as
determined by the Secretary.
(C) Intermodal issues.--The Secretary of
Transportation shall have the authority to address
intermodal issues affecting the Corporation.
(7) Function of the secretary of defense.--The Secretary of
Defense shall address national security concerns as they relate
to the Corporation.
(b) Safety Committee.--
(1) Appointment.--The board shall establish a 3-member
permanent safety committee from among persons who are citizens
of the United States to review the operations of the
Corporation to ensure the highest level of aviation safety.
Persons appointed under this paragraph shall serve at the
pleasure of the board.
(2) Compensation.--Individuals appointed under paragraph
(1) shall be compensated at rates fixed by the board.
(c) CEO.--The Corporation shall have a chief executive officer who
is elected by the board and who shall serve at the discretion of the
board. The board shall fix the term of employment and compensation of
the chief executive officer.
(d) Restriction on Receipt of Other Salary.--An officer of the
Corporation shall not receive any salary from any source other than the
Corporation during the period of the officer's employment by the
Corporation.

SEC. 104. POWERS OF CORPORATION.

The Corporation may--
(1) plan, initiate, construct, own, manage, and operate, by
itself or in cooperation with other entities, an air traffic
control system;
(2) furnish, for hire, air traffic control services to air
transportation common carriers, and other operators of civil
aircraft;
(3) establish reasonable nondiscriminatory fees for the
provision of air traffic control services;
(4) enter into contracts under which other entities may
operate individual air traffic control facilities on behalf of
the Corporation;
(5) acquire, by construction, purchase, or gift, physical
facilities, equipment, and devices necessary to the operations
of the Corporation, including air traffic control and
associated equipment and facilities; and
(6) conduct or contract for the conduct of research and
development related to the operations of the Corporation and
establish technical specifications of all elements of the air
traffic control system.

SEC. 105. FOREIGN BUSINESS NEGOTIATIONS OF CORPORATION.

(a) Negotiations of Corporation.--Whenever the Corporation enters
into negotiations with any foreign entity with respect to facilities,
operations, and services authorized by this Act to be conducted by the
Corporation--
(1) the Corporation shall notify the Secretary of State
regarding the initiation, conduct, and foreign policy
implications of such negotiations; and
(2) the Secretary of State shall advise the Corporation of
relevant foreign policy considerations and, upon request of the
Corporation, shall render such assistance as may be
appropriate.
(b) Negotiations of Secretary of State.--The Secretary of State
shall consult with the Corporation with respect to all negotiations
conducted by the Secretary regarding matters which relate to air
traffic control.

SEC. 106. SANCTIONS.

(a) Petition for Relief.--Except as otherwise prohibited by law--
(1) if the Corporation engages in any activity, or takes
any action in furtherance of any policy, which is inconsistent
with the policy and purposes of this Act; or
(2) if any other person--
(A) violates any provision of this Act;
(B) obstructs or interferes with any activity
authorized by this Act;
(C) refuses, fails, or neglects to discharge any
duty or responsibility under this Act; or
(D) threatens any such violation, obstruction,
interference, refusal, failure, or neglect;
the district court of the United States for any district in
which such Corporation or other person resides or may be found
shall have jurisdiction, upon petition of the Attorney General
of the United States, to grant such equitable relief as may be
necessary or appropriate to prevent or terminate such activity.
(b) Punishment, Liability, or Sanction Under Other Provisions.--
Nothing contained in this section shall be considered to relieve any
person of any liability, punishment, or sanction under any other law.

SEC. 107. REPORT.

(a) Corporation.--The Corporation shall transmit to the President
and Congress, annually and at such other times as it considers
appropriate, a comprehensive and detailed report of its operations,
activities, and accomplishments under this Act.
(b) Administrator.--The Administrator shall transmit to the
Congress, annually and at such other times as the Administrator
considers appropriate, an evaluation of the capital structure of the
Corporation so as to assure the Congress that such structure is
consistent with the most efficient and economical operation of the
Corporation.

TITLE II--MISCELLANEOUS

SEC. 201. TRANSFER OF FACILITIES AND EQUIPMENT TO CORPORATION.

(a) In General.--Not later than 1 year after the date the Senate
approves the appointments of the President under section 102(a), the
Secretary of Transportation shall take such steps as may be necessary--
(1) to transfer to the Corporation all right, title, and
interest of the United States in, and all control of the United
States over, all facilities and equipment under the
jurisdiction of the Administration by the operational date of
the Corporation, which are part of the air traffic control
system including the air route traffic centers, terminal radar
control centers, VHF omnidirectional radio stations, long-range
and terminal radar systems, flight service stations, and
related facilities and equipment; and
(2) to transfer all right of the United States in airport
control towers, landing aids, and landing slots to owners of
the airport where such towers and aids are located and to which
such landing slots relate.
(b) Compensation.--In consideration for property transferred by the
United States pursuant to subsection (a), the Corporation shall pay
into the General Fund of the Treasury such amount as the Corporation
and the Secretary of Transportation agree is reasonable and shall
relinquish all rights of the Corporation to amounts in the Airport and
Airway Trust Fund.

SEC. 202. AIRPORT FEES.

(a) In General.--Notwithstanding any other law, on and after the
date of the transfers carried out by the Secretary of Transportation
pursuant to section 201(a), an airport may establish and charge fees
for use of airport facilities by, and provision of services to, air
carriers and air transportation passengers, including--
(1) fees which air carriers must pay for landing aircraft
at or taking aircraft off from such facilities; and
(2) fees which passengers must pay for departing from such
facilities.
(b) Criteria.--Fees established under subsection (a)--
(1) shall be in an amount equal to the cost to the airport
of providing the particular use or service for which the fee is
charged, plus a reasonable profit; and
(2) may vary according to time of day and demand for the
facility or service.

SEC. 203. AIRPORT ACCESS.

(a) Prohibition.--An owner, operator, or other person in charge of
a public-use airport shall not deny access to and use of the facilities
of such airport by any person operating an aircraft which is in
compliance with all laws relating to aviation safety if the person
offers to pay all fees which are usually charged for such use.
(b) Penalty.--Any person who violates subsection (a) shall be
subject to a civil penalty under section 46301 of title 49, United
States Code.

SEC. 204. LIABILITY OF CORPORATION.

The Corporation shall be treated as a Federal agency for purposes
of chapter 171 of title 28, United States Code; except that judgments,
awards, settlements, interest, and costs of claims resulting from air
traffic control system liability, shall not be paid from amounts
available under section 1304 of title 31, United States Code, but shall
be paid from amounts otherwise available to the Corporation. The
Corporation may secure its own insurance for claims resulting from air
traffic control system liability. The Corporation shall be responsible
for any legal or administrative costs for air traffic control-related
litigation. The Corporation may secure liability insurance for the
board of directors. The Corporation may sue or be sued in its corporate
name. The Secretary of Transportation shall identify potential
environmental liabilities of facilities before their transfer to the
Corporation.

SEC. 205. DEFINITIONS.

As used in this Act--
(1) the terms ''airport'' and ''public-use airport'',
respectively, have the meaning given such terms by section
47102 of title 49, United States Code;
(2) the terms ''air carrier'', ''aircraft'', ''air
transportation'', ''civil aircraft'', ''citizen of the United
States'', ''person'' and ''United States'', respectively, have
the meaning given such terms by section 40102 of title 49,
United States Code;
(3) the term ''board'' means the board of directors of the
Corporation appointed under section 103;
(4) the term ''Corporation'' means the corporation
established by section 101 of this Act;
(5) the term ''Administration'' means the Federal Aviation
Administration; and
(6) the term ''Administrator'' means the Administrator of
the Federal Aviation Administration.

SEC. 206. CONFORMING AMENDMENTS.

The Secretary of Transportation shall submit to Congress not later
than 1 year after the date of the enactment of this Act such conforming
amendments as the Secretary of Transportation determines are necessary
to fully implement this Act.

HR 5209 IH----2
A:
TABLE OF CONTENTS:
Title I: United States Air Traffic Service Corporation
Title II: Miscellaneous
Air Traffic Control Service Improvement Act of 1994 -
Title I: United States Air Traffic Service Corporation
- Establishes, as a Government corporation, the United States Air Traffic Service Corporation to operate the U.S. air traffic control system.
Title II: Miscellaneous
- Directs the Secretary of Transportation to transfer to the Corporation all right, title, and interest of the United States over facilities, including airport control towers, landing aids, landing slots, and equipment which are part of the air traffic control system.
Authorizes airports to charge fees for use of airport facilities by, and provision of services to, air carriers and air transportation passengers.
Prohibits owners or operators of public-use airports from denying access to and use of airport facilities by any person operating an aircraft which is in compliance with all aviation safety laws if such person offers to pay all user fees. Subjects persons who violate such prohibition to a civil penalty.