Document: 477 U.S. 597 106 S.Ct. 2705 91 L.Ed.2d 494 UNITED STATES DEPARTMENT OF TRANSPORTATION, et al., Petitionersv.PARALYZED VETERANS AMERICA al. No. 85-289. Argued March 26, 1986. Decided June 27, Syllabus Section 504 of the Rehabilitation Act 1973 prohibits discrimination against handicapped persons in "any program or activity receiving Federal financial assistance." The United States provides assistance to airport operators through grants from a Trust Fund under Airport and Airway Development 1970 its successor statute, Improvement 1982 (Trust Acts). Government also operates nationwide air traffic control system. Respondent organizations representing individuals brought an action Court Appeals challenging, inter alia, conclusion Civil Aeronautics Board (CAB) that regulatory authority § was limited those few airlines receive subsidies Aviation Act. held gave CAB jurisdiction over all carriers by virtue extensive federal airports Acts, system additional source airlines. court then vacated regulations extent their application funds Act, instructed Department Transportation, CAB's successor, issue new would apply commercial Held: is not applicable Pp. 603-612. (a) 504's scope who actually "receive" assistance. Congress sought impose coverage as condition obligation tied recipient's agreement accept funds. By so limiting recipients, imposed obligations upon are position reject part decision whether In this case, only parties recipients Acts. 603-606. (b) To assert economic benefit aid form ignores distinction made statute covers does extend it. 606-607. (c) tie derived expenditures question here give almost limitless coverage. recognized need improve order wide variety entities, them classified together beneficiaries, did set up whereby passengers primary direct beneficiaries others, including airlines, benefited Acts indirect airports. 608-610. (d) Appeals' attempt fuse into single for purposes unavailing. Regulatory intended inconsistent with congressional intent passing 504. 610-611. (e) Since "owned operated" States, it "Federal assistance" within meaning Rather, federally conducted has many but no recipients. 611-612. 243 U.S.App.D.C. 237, 752 F.2d 694 (D.C.1985) reversed remanded. POWELL, J., delivered opinion Court, which BURGER, C.J., WHITE, REHNQUIST, STEVENS, O'CONNOR, JJ., joined. MARSHALL, filed dissenting opinion, BRENNAN BLACKMUN, joined, post, p. 613. Sol. Gen. Charles Fried, petitioners. Douglas L. Parker, Washington, D.C., respondents. Justice POWELL Court. 1 any created 1970. This case presents whether, such assistance, airlines.1 2 * Respondents successfully challenged promulgated implement 1973, 87 Stat. 390, amended; 29 U.S.C. 790 seq. (1982 Ed. Supp. II). understand respondents' arguments, necessary review process were promulgated. A. Rulemaking Process provides: 3 "No otherwise qualified individual . shall, solely reason his handicap, be excluded participation in, denied benefits of, subjected ." 794. 4 specifically provide administrative implementation. 1976, however, President issued Executive Order 11914, CFR 117 (1976-1980), calling on Secretary Health, Education Welfare2 coordinate rulemaking agencies. At time two agencies principally concerned aviation: Administration (FAA), primarily Air Traffic Control System safety airline operations, airports, CAB, regulation industry.3 Because had been modeled after Title VI Rights 1964, 42 2000d seq.,4 both FAA patterned proposed rules VI. 5 Notice Proposed 6, 1979.5 concluded subsidy 406(b) 419 Act.6 announced intention, go beyond regulate activities relied 404 1958, 49 U.S.C.App. 1374. 6 contains provisions relevant here: 404(a)(1), requiring "provide safe adequate service, equipment, facilities," 404(b), prohibiting "subjecting particular person unjust undue unreasonable prejudice disadvantage respect whatsoever." explained "the emphasize protected adequacy service antidiscrimination carriers, 44 Fed.Reg. 32401-32402 (1979). Somewhat inexplicably, taken support on-board even though aware that, Airline Deregulation 1978,7 provision 404(b) lapse January 1, 1983, "safe service," remain effect. 7 received public comment regulations. Several Transport Association interim, 12250, 298 (1981), transferred responsibility coordinating administration various civil rights statutes, 504, Health Human Services Attorney General. After consultation General, final 14 pt. 382 (1986), 47 25948 (1982). 8 have three subparts. Subpart A transportation persons. B specific, detailed requirements must followed providing handicapped. C sets forth compliance enforcement mechanisms. As subparts, adhered original supported 406 419. concluded, surviving portion 404—the service" clause 404(a)(1)—did imposition specific subparts nonsubsidized carriers. Thus, authorized is, reach subpart 404(a)(1)'s clause. General approved these B. Decision 9 Paralyzed Veterans America other (collectively PVA)8 District Columbia Circuit. PVA substance some regulations, well regarding Only latter claim before us. On issue, contended interpretation controlling legal precedent. 10 agreed PVA's position. v. (1985). court's view, 1970, 1714, amended (1976 ed., V).9 found place at major It DOT—CAB's agency disbanded10—to 11 We granted certiorari resolve DOT's 474 918, 244, 88 253 now reverse. II 12 may helpful briefly explain nature present challenge Nor there A—the general regulation—to us applies 13 examine first operators, clearly determine fairly can said grants. starting point inquiry language itself. Reiter Sonotone Corp., 442 330, 337, 99 2326, 2330, 60 931 terms limits "program activity" "receiv[es]" outset, therefore, requires identify recipient look underlying grant statute. 15 statutes Act), 2201 seq., predecessor particularly (1970 Pub.L. 91-258, 84 219 (formerly codified 1701 ed.)). established Fund, appropriations used fund development. purpose disbursements establish "a meet future needs aeronautics." 224. directed Transportation prepare national plan, id., 221, required project applications consistent plan. Id., 226. Program (AIP). Under AIP submit "airport development planning." 2201(a). Funds disbursed construction projects: e.g., land acquisition, 151.73 (1986); runway paving, 151.77; buildings, sidewalks, parking, 151.93. use strictly projects concern See, 151.89 (authorizing road construction) ("Only entrance roads definitely needed way out eligible"). 16 difficult Acts: explicitly clear operators. Not penny money given operator users. 17 because contractual cost "Congress apparently determined require contractors grantees bear costs employment quid pro quo receipt funds." Consolidated Rail Corporation Darrone, 465 624, 633, n. 13, 104 1248, 1254, 79 568 (1984). same rationale Grove City College Bell, 555, 1211, 516 (1984), where we noted assistance—the college—was free terminate thus avoid IX. 565, S.Ct., 1217, 13. program-specific VI, IX, enters arrangement contract funds: acceptance triggers nondiscrimination provision. See Soberal-Perez Heckler, 717 36, 41 (CA2 1983) ("This emphasis moneys exchange promise discriminate still another conclude cover programs since do entail relationship"), cert. denied, 466 929, 1713, 80 186 imposes 18 straightforward arguing "indirect recipients" They contend simply converted nonmoney reasoning, cash. convert cash runways assistance—now runway—to position, respondents fact structures constructed beneficial runways, taxiways, ramps. find 's recognition could either indirect. argument confuses While observed "distinction between aid" "[t]here basis view institutions themselves checks directly subject regulation," statements context determining whom money, thereby covered U.S., 564, 1217. Congress' college, students sent Government. unusual disbursement pattern intermediary (the students) caused recognize indirectly. stands proposition IX extends recipient, indirectly, stand follows past merely aid. aid; they airports' 19 Fund. argue are, like City, mere conduits since, unlike students, very City: aid, far most "economic ripple effects." rejected trigger statutory 572, 1221. assistance; key extended operators.11 20 tying expenditures, establishing confer large number businesses. House Committee Interstate Foreign Commerce explained: 21 "In addition actual users airway system—such passengers, aviation, private business aviation freight forwarders, corporate shippers, etc.—there others substantially aviation; primarily, perhaps, military should considered. From civilian standpoint indirectly include aircraft manufacturers whose related aviation. illustrate, component manufacturer employ thousands never fly, yet persons' lives depend entirely More considered, make livelihood services manufacturers' employees. employees corporations nonaviation interests real estate brokers builders, doctors, dentists, school teachers, etc. true sense touches every American home, home ever fly not." H.R.Rep. 91-601, (1969). 22 Even if benefit, broad indeed, covering whole classes businesses relation "limitation" virtually disappear, result surely intend. 23 distinctions drawn among particular, ultimate while benefiting passengers. distinction. preferring beneficiaries. Nowhere expressed special indicated more reason, makes beneficiaries.12 24 program, intend class persons, funding extending to—a draws line beneficiary. III 25 "inextricably intertwined" "indissoluble nexus transportation." U.S.App.D.C., 251, F.2d, 714. For reasons, assisted "commercial transportation" funds, "indispensable" travel. 26 reasoning overbroad unpersuasive. defined reference 257-258, 714-715. shown above, Alexander Choate, 469 287, 299, 105 712, 719, 83 661 (1985), "[a]ny responsive powerful countervailing considerations—the effect objectives desire keep manageable bounds." bounds. industries become activity, institution has. example, Congress, engaged mammoth interstate highway maintenance. Federal-Aid Highway 1956, 627, 70 374. approach similar If accepted activity," compelled funded highways existence, trucking firms delivery services, transportation. port facilities. broader than implies, one Congress. 27 reliance definition misplaced. despite arguably nexus" departments small analogy placed college. readily apparent our college cannot transportation—a concept much larger airports—is hypothetical collective concepts transportation, determined. IV 28 provided airlines.13 spends $2 billion annually run hours day spots around world. controllers employees, finances operation terminal short, States. "federal all. legislative history constitute anyone. then-Deputy Katzenbach "Activities wholly carried river harbor improvements works, defense installations, veterans' hospitals, mail etc., included list [of programs]. Such activities, being owned by, operated for, described 'assistance.' neighboring communities, considered title VI." 110 Cong.Rec. 13380 (1964). 30 That course, equal force involve "financial anyone.14 V 31 judgment accordingly reversed, remanded proceedings opinion. 32 ordered. 33 BLACKMUN join, dissenting. 34 starts 1982, infers therefore And concludes inapplicable misperceives proper 35 "[n]o agency. appropriate "exclud[e persons] den[y them] subjec[t under" I believe dissent. 36 begins analysis place: Note, Colum.L.Rev. 1210, 1227-1232 (1983). (Act), replaced designed ensure system" system's effective management utilization. §§ 2201(a)(1), (2). end, authorizes owners public-use certain governmental units planning. 2204(a), 2208(a). purposes. 2206, 2207. expend acquiring, establishing, improving navigation facilities, 2205(a), operating maintaining 2205(c), associated research demonstration projects, 2205(b), weather reporting 2205(d). finally directs Explosive Detection K-9 Team Training detecting explosives aboard aircraft. 2225. 37 majority explains agency" believes creates. light Court's treatment naturally viewed creating "programs" "activities" relating maintenance efficient creation airways. That, end inquiry. 38 next (DOT) "excluded activities.1 my demands DOT authority. companies barred traveling all, conduct deny When allow travel but, unreasonably conditions enjoyed handicapped, too discriminatorily supporting 39 derives unique access services. true, points out, fly. ante, time, critical obvious system, members public, allows purchase tickets city city. vast enjoy allowed, set, Commercial necessarily act gatekeepers shall enjoy, what conditions, important programs. airlines' result, quite different referred majority, 611.2 40 (CAB), promulgating understanding whatsoever 1376, 1389 App. 88a-89a. reasons stated error. agree reconsidered agency's Were remanded, proceed premise available proceeding: power, deprive system.3 serve airport, carrier enter lease power each lease, secure serving assurance standards persons.4 requirement exercise deprives An properly violation when, perpetuates giving unequal 27.7 43 raises issues nonetheless, respects, "recipients" disposes case. matter complicated herein, term operator" refers entities own manage planning "Commercial airlines" passenger formerly certificated Board. later when Welfare divided Services. Organization 96-88, 93 669, 3401 became 1966. disbanded functions largely Sunset 1984, 98-443, 98 1703 model subsequently enacted activities. law interpreting generally statutes. 566, 1218, (1984); see S.Rep. 93-1297, (1974). 1. Rulemaking, Part 382, Nondiscrimination Basis Handicap, 32401 1376(b) guarantee transport communities. terminated 1982. 1978, began "section program" subsidize community essential provided. 95-504, 33, 92 1732. will operate 1988. practice racial None attempted unless itself CAB. 379.2 (1965), 19287 (1964) (CAB); 15.5(c) 19283 (FAA). charged area entitled deference. Ford Motor Credit Co. Milhollin, 444 100 790, 797, 63 (1980). 40(a), 1705, 1744 (codified 1551(a)(2)(B)). 2. Final Regulations Council Blind Coalition Citizens Disabilities. 3, supra. say property improvements, runway. Although word "financial" usually indicates "money," take form. Cf. 564-565, 1217-18. Again, entity receives money. something whatever thing value improved satisfy growing help foster significant growth areas experiencing, cargo taxis, flying, recreational flying. commerce means aiding justified expenditure "substantial expansion improvement [sic] commerce, postal defense." 219. statement purpose. 2201(a)(2). constituted without concluding suggested disagree. remand formulate policies accordance Appeals. reasoned constitutes personnel. longstanding FAA, agencies, originally implementing allowed section, possible forms "detail personnel." 15.23(3) 19286 current phrase. 21.23(c)(3) "detail" personnel; fact, personnel "detailed"—the self-contained. pursuant implementation Education, (HEW) published guidelines substituted "services" "detail." 2137. But HEW substantive change definitions: "Despite difference wording definitions section differ." 2132. Later, task laws, Exec. (1981). retained "[s]ervices 41.3(e)(2) detail, loan, "Services" No selection duty involved here. erred ignoring interpretation. Chevron U.S.A. Inc. Natural Resources Defense Council, Inc., 467 837, 844, 2778, 2782, 81 note undertaken (CAB). explains, 600, 267, 694, 724 aspect presented relying unwaveringly matter, dispositive. heavily relies, triggering students. nonetheless Frazier Trustees Northwest Mississippi Regional Medical Center, 765 1278, 1290 (CA5 1985). proceeding, hands left DOT. 31451 DOT, postponed "through leasing agreements airlines," nondiscriminatory basis, considering imposing directly. Ibid. present, exercises officials, least past, shared view. Review (Legislative Proposals Relating Sunset): Hearings Subcommittee Public Works 98th Cong., 2d Sess., (1984) (statement James Burnley, Deputy Transportation) ("I don't think contracts right facilities handicapped.");

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