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104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-848
_______________________________________________________________________


 
               FEDERAL AVIATION AUTHORIZATION ACT OF 1996

                                _______
                                

               September 26, 1996.--Ordered to be printed

_______________________________________________________________________


 Mr. Shuster, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 3539]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
3539) to amend title 49, United States Code, to reauthorize 
programs of the Federal Aviation Administration, and for other 
purposes, having met, after full and free conference, have 
agreed to recommend and do recommend to their respective Houses 
as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal 
Aviation 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.

                          TITLE II--FAA REFORM

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Effective date.

                     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.
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 equipment.
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.
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 IX--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.
Sec. 1208. Worcester Municipal Airport, Massachusetts.
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 traffic 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 STATES CODE.

    Except as otherwise specifically 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. APPLICABILITY.

    (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 construed as 
affecting funds made available for a fiscal year ending before 
October 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 ``September 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:

``Sec. 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 Appropriations 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 following: ``$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 inserting ``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 inserting ``72.5 percent''.
    (c) Limitation on Obligating or Expending Amounts.--Section 
48108(c) is amended by striking ``1996'' and inserting 
``1998''.
    (d) Clerical Amendments.--Chapter 481 is amended--
            (1) by striking the heading for section 48104 and 
        inserting the following:

``Sec. 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 airport 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 percent 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 
                apportioned 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 aircraft described in subparagraph (A) 
                landing at each of those airports bears to the 
                total annual 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 apportioned for any one airport.
                    ``(D) Distribution to other airports.--
                Before apportioning amounts to the sponsors of 
                airports under subparagraph (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 Secretary 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 aircraft landing at each 
                airport described in subparagraph (A) during 
                the prior calendar year.''.
            (3) Repeal of limitation.--Section 47114(c)(3) is 
        repealed.
    (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) and (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, and inserting 
the following:
    ``(g) Minimum Amount To Be Credited.--
            ``(1) General rule.--In a fiscal year, there shall 
        be credited to the fund, out of amounts 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 from 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 fund, 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 carry out 
        paragraph (2) is the total of the amounts determined 
        under 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) \1/3\ shall be made available to 
                airports for which apportionments are made 
                under section 47114(d) of this title.
                    ``(B) \1/3\ 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) \1/3\ 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.''.

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 
        subparagraphs (A) and (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 
        redesignated, 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 determining 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''; and
            (7) by inserting before the period at the end of 
        subparagraph (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 
        fiscal 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 shall designate current or former military 
airports for which grants may be made under section 
47117(e)(1)(B) of this title. The maximum 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 Amendments 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
            ``(2) the Secretary finds that such grants would--
                    ``(A) reduce delays at an airport with more 
                than 20,000 hours of annual 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 utilities'' 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''.

SEC. 125. PERIOD OF APPLICABILITY OF AMENDMENTS.

    The amendments made by this subtitle shall cease to be 
effective 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 follows:
    ``(g) Intermodal Planning.--To carry out the policy of 
subsection (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 developing 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 planning and metropolitan planning;
                    ``(B) include an evaluation of aviation 
                needs within the context of multimodal 
                planning; 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 membership 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:

``Sec. 47132. Pavement maintenance

    ``(a) In General.--The Administrator of the Federal 
Aviation Administration shall issue guidelines to carry out a 
pavement maintenance pilot project to preserve and extend the 
useful life of runways, taxiways, and aprons at airports for 
which apportionments are made under section 47114(d). The 
guidelines shall provide that the Administrator may designate 
not more than 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 primary 
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 diversity.
    ``(b) Effective Date.--This section shall be effective 
beginning on the date of the enactment of this section and 
ending on September 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 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 amounts 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 DISCRETIONARY 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 striking 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 priorities are not in conflict with 
        paragraphs (1) and (2);
            ``(5) the projected growth 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-month 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:
    ``(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 
making grants to sponsors described in subsection (b)(2), the 
Secretary shall give priority consideration to multi-year 
projects for construction 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); and
                    (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.

    (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 implement innovative financing techniques.
    (b) Purpose.--The purpose of the demonstration program 
shall be to provide information on the use of innovative 
financing techniques for airport development projects to 
Congress and the National Civil Aviation Review Commission.
    (c) Limitation.--In no case shall the implementation of an 
innovative financing technique under 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 
section, the term ``innovative financing technique'' shall be 
limited to the following:
            (1) Payment of interest.
            (2) Commercial bond insurance and other credit 
        enhancement associated with airport bonds for eligible 
        airport development.
            (3) Flexible non-Federal matching requirements.
    (e) Expiration of 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:

``Sec. 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 provisions:
            ``(1) Use of revenues.--
                    ``(A) In general.--The Secretary may grant 
                an exemption 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 amount 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 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.
                    ``(B) Landed weight defined.--In this 
                paragraph, the term `landed weight' means the 
                weight of aircraft transporting 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 obligation 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 
        Secretary 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 necessary to permit the 
        purchaser or lessee to earn compensation from the 
        operations of the airport.
    ``(c) Terms and Conditions.--The Secretary may approve an 
application 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 airport 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 proceeding 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 investments and will submit to the 
        Secretary a plan for carrying 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 airport; 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 effects 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 bargaining agreement that 
        covers employees of the airport 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 under 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 an 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.
    ``(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 are 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 under 
        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 established 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.
    ``(l) 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 
Infrastructure of the House of Representatives and the 
Committee on Commerce, 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 commercial 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
            (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 from the discretionary fund under section 
        47115 at an airport receiving an exemption under 
        section 47134.''.
    (d) Resolution of Airport-Air Carrier Disputes Concerning 
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 under 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 Management 
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

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.
            (3) The Administration must become a more 
        efficient, effective, and 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 representing past receipts must also 
        be spent for the purposes for which such funds were 
        collected.
            (6) The aviation community and the employees of the 
        Administration must come together to improve the 
        system. The Administration must continue to recognize 
        who its customers 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 system modernization, 
        these needs cannot be met.
            (8) Absent significant and meaningful reform, 
        future challenges 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 essential 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 
        and assessment must be performed of the costs to the 
        Administration 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 significant 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.
            (16) Without reforms in the areas of procurement, 
        personnel, funding, and governance, the Administration 
        will continue to experience delays and cost overruns in 
        its major modernization 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 
        Administration become more responsive to the needs of 
        its customers and maintain the highest standards of 
        safety.

SEC. 222. PURPOSES.

    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 management system performance and to 
        establish appropriate levels of cost accountability for 
        air traffic management services provided 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 
        effective 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 TRANSPORTATION.

    (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 Secretary'' 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 remainder of the 
                        text 2 ems to the right;
                            (ii) by striking ``The Secretary 
                        may not'' and inserting ``Neither the 
                        Secretary nor the Administrator may''; 
                        and
                            (iii) by striking ``nor'' and 
                        inserting ``or''; and
                    (C) by adding at the end the following:
            ``(2) Authority of the administrator.--The 
        Administrator--
                    ``(A) is the final authority for carrying 
                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 Presidential 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, 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 
                        Traffic Management System Performance 
                        Improvement 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 redelegations of, to an officer or 
                employee of the Administration any function, 
                power, or duty conferred upon the 
                Administrator, unless 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 the 
                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.''.
    (b) Preservation of Existing Authority.--Nothing in this 
title or the amendments made by this title limits 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 Administrator is authorized 
                to issue, rescind, and revise such regulations 
                as are necessary to carry out those functions. 
                The issuance of such regulations shall be 
                governed by the provisions 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 or 
                advanced notice of proposed rulemaking. The 
                Administrator shall issue a final regulation, 
                or take other final action, not later than 16 
                months after 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 publication in the Federal Register of 
                notice of the proposed rulemaking.
                    ``(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 
                regulation is likely to--
                            ``(I) have an annual effect on the 
                        economy of $100,000,000 or more or 
                        adversely affect 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 communities;
                            ``(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 and 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 frequent 
                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 
                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 enactment of the 
                Air Traffic Management System Performance 
                Improvement Act of 1996 and 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, and tribal 
                governments in the aggregate, or by the private 
                sector, of $25,000,000 or more (adjusted 
                annually for inflation beginning with the year 
                following the date of the enactment of the Air 
                Traffic Management System Performance Act of 
                1996) in any year.
                    ``(iv) The periodic review of regulations 
                may be performed 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:
    ``(l) Personnel and Services.--
            ``(1) Officers and employees.--Except as provided 
        in section 40122(a) of this title and section 347 of 
        Public 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 
        compensation and benefits of officers and employees, 
        the Administrator shall not engage in any type of 
        bargaining, except to the extent provided for in 
        section 40122(a), nor shall the Administrator be bound 
        by any requirement to establish 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 under 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 
                uncompensated services if such services are 
                used to displace Federal 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 voluntary services under this 
                subsection.
                    ``(C) Limited treatment as federal 
                employees.--An individual who provides 
                voluntary services under 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(l), 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 governmental 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 instrumentalities concerning 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 Federal 
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 adding 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
                            ``(iii) such other real and 
                        personal property (including 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 and 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 
balances of funds appropriated to other Federal agencies (as 
such term is defined in section 551(1) of title 5) to carry out 
functions 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 Performance Improvement Act of 1996, the 
        Administrator shall establish an advisory council which 
        shall be known as the Federal Aviation Management 
        Advisory Council (in this subsection referred to as the 
        `Council'). With respect to Administration management, 
        policy, spending, funding, and regulatory matters 
        affecting the aviation industry, the Council may submit 
        comments, recommended modifications, and 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 
        members, 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 
        paragraph (2)(C) may serve as an officer or employee of 
        the United States Government while serving as a member 
        of the Council.
            ``(4) Functions.--
                    ``(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 
                and ensure that the public interest is fully 
                protected.
                    ``(iii) The Council shall review the 
                process through which the Administration 
                determines to use advisory circulars and 
                service bulletins.
                    ``(B) Meetings.--The Council shall 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 
                Administration may give the Council appropriate 
                access to relevant documents and personnel of 
                the Administration, and the Administrator shall 
                make 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 commercial 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.
                    ``(D) Detail of personnel from the 
                administration.--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

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 system within 3 months after such date. The 
Administrator shall transmit a copy of the evaluation to the 
Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Transportation and Infrastructure 
of the House of Representatives.

SEC. 252. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

    Chapter 401 is amended by adding at the end the following:

``Sec. 40121. Air traffic control modernization reviews

    ``(a) Required Terminations of Acquisitions.--The 
Administrator of the Federal 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 Facilities and 
Equipment account that--
            ``(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 inconsistent 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 Law 104-50 when engaged in joint 
        actions to improve or replenish the national air 
        traffic 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 under paragraph (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:

``Sec. 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 negotiate 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 shall be 
        used to attempt to reach such agreement. If the 
        services of the Federal Mediation and Conciliation 
        Service do not lead to an agreement, the 
        Administrator's proposed change to the personnel 
        management system shall not take effect until 60 days 
        have elapsed after the Administrator 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 applies 
        to each of the affected bargaining units and throughout 
        the agency.
    ``(b) Expert Evaluation.--On the date that is 3 years after 
the personnel management system is implemented, the 
Administration shall employ outside experts to provide an 
independent evaluation of the effectiveness of the system 
within 3 months after such date. For this purpose, 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, 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 
Administration may receive an annual rate of basic pay in 
excess of the annual rate of basic pay payable to the 
Administrator.
    ``(d) Ethics.--The Administration shall be subject to 
Executive Order No. 12674 and regulations and opinions 
promulgated by the Office of Government Ethics, including those 
set forth in section 2635 of title 5 of the 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 reorganization 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 Improvement Act of 1996 shall remain in effect 
until their normal expiration date, unless the Administrator 
and the exclusive bargaining representative 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

SEC. 271. FINDINGS.

    Congress finds the following:
            (1) The Administration is recognized throughout the 
        world as a leader in aviation safety.
            (2) The Administration certifies aircraft, engines, 
        propellers, 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 examiners, 
        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.
            (8) The Administration issues more than 655,000 
        pilot's licenses and more than 560,000 nonpilot's 
        licenses (including mechanics).
            (9) The Administration's certification means that 
        the product meets worldwide 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, franchise, privilege or 
        benefits for the holders.
            (13) The Administration also is a major purchaser 
        of computers, 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.

    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 program 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 from 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 options 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 ADMINISTRATION 
                    SERVICES.

    (a) In General.--Chapter 453 is amended by striking section 
45301 and inserting the following:

``Sec. 45301. General provisions

    ``(a) Schedule of Fees.--The Administrator shall establish 
a schedule of new fees, and a collection process for such fees, 
for the following services provided by the Administration:
            ``(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 than 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 
                control, 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 
                Administrator to flights that neither take off 
                nor land in the United States.
            ``(2) Publication; comment.--The Administrator 
        shall publish in the Federal Register an initial fee 
        schedule and associated 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, 
and 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 and 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 REQUIREMENTS; 
                    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 an entity independent of the 
        Administration and the Department of Transportation to 
        conduct a complete independent assessment of the 
        financial requirements of the Administration through 
        the year 2002.
            (2) Assessment criteria.--The Administrator shall 
        provide 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 appropriation levels established by 
        Congress. The independent assessment shall be based on 
        an objective analysis 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 
        completed no later than 90 days after the contract is 
        awarded, and shall be submitted to the 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 (hereinafter 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, aircraft manufacturers, the 
                financial community, aviation industry workers, 
                and airline passengers. At least one member 
                appointed under this subparagraph shall have 
                detailed knowledge of the congressional 
                budgetary process.
                    (B) 2 members appointed by the Speaker of 
                the House of Representatives.
                    (C) 2 members appointed by the minority 
                leader of the House of Representatives.
                    (D) 2 members appointed by the majority 
                leader of the Senate.
                    (E) 2 members appointed by the minority 
                leader of the Senate.
            (3) Task forces.--The Commission shall establish an 
        aviation funding 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 Commission are appointed.
            (5) Hearings and consultation.--
                    (A) Hearings.--The Commission shall take 
                such testimony 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 additional hearings as may be 
                necessary.
                    (B) Consultation.--The Commission shall 
                consult on a regular and frequent basis with 
                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.
                    (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 fiscal year 2002, 
                        based upon the independent assessment 
                        under subsection (a), that analyzes 
                        alternative financing and funding 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 after 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 funding 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 
                                bill containing the changes in 
                                law necessary to implement its 
                                recommendations.
                    (B) Recommendations.--The aviation funding 
                task force shall make such recommendations 
                under subparagraph (A)(ii)(III) as the task 
                force deems appropriate. Those recommendations 
                may include--
                            (i) proposals for off-budget 
                        treatment of the Airport and Airway 
                        Trust Fund;
                            (ii) alternative financing and 
                        funding proposals, 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 subparagraph 
                        (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 community 
                        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 appropriate to address the 
                        funding and needs of the Administration 
                        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 technology;
                            (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 modernization 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 partnerships 
                        with for-profit private sector 
                        entities, government-sponsored 
                        enterprises, and revolving loan funds, 
                        as a means of funding specific 
                        facilities and equipment projects, and 
                        to provide limited additional funding 
                        alternatives for airport 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 recommendation 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 Airport and Airways Trust 
                Fund tax structure be modified, the report 
                shall--
                            (i) state the specific rates for 
                        each group affected by the proposed 
                        modifications;
                            (ii) consider the impact such 
                        modifications shall have on specific 
                        users and the public (including 
                        passengers); 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, air fares (including low-
                        fare, high frequency 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 competitive 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) means of assuring the 
                        provision of general 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 from 
                        fraudulent parts in civil aviation and 
                        the extent to which use of suspected 
                        unapproved parts requires additional 
                        oversight or enforcement action; and
                            (iii) the ability of the 
                        Administration to anticipate 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 documents and personnel of the 
        Administration, and the Administrator 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 the 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 
        Commission 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, United States Code.
            (10) Detail of personnel from the administration.--
        The Administrator shall make available to the 
        Commission such staff, information, and administrative 
        services and assistance as may reasonably be required 
        to enable the Commission to carry out its 
        responsibilities under this subsection.
            (11) Authorization of appropriations.--There is 
        authorized 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 
                Treasury, 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 Senate, and the Committee on 
                Transportation and Infrastructure 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 
                shall contain the Secretary's recommendations 
                for funding the needs of the aviation 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
                            (ii) a draft bill containing the 
                        changes in law necessary to implement 
                        the Secretary's recommendations.
                    (D) Publication.--The Secretary shall cause 
                a copy of the report to be printed in the 
                Federal Register upon its transmittal to 
                Congress under 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 aviation safety in the 
        United States.
    (d) GAO Audit of Cost Allocation.--The Comptroller General 
shall conduct an assessment of the manner in which costs for 
air traffic control services are allocated between the 
Administration and the Department of Defense. The Comptroller 
General shall report the results of the assessment, together 
with any recommendations 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 Department of Defense, to the 
Commission, the Administrator, the Secretary of Defense, the 
Committee on Transportation and Infrastructure of the House of 
Representatives, and the Committee on Commerce, Science, and 
Transportation of the Senate not later than 180 days after the 
date of the enactment of this Act.
    (e) GAO 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:

``Sec. 48111. Funding proposals

    ``(a) Introduction in the Senate.--Within 15 days (not 
counting any day on which the Senate is not in session) after a 
funding proposal is submitted to the Senate by the Secretary of 
Transportation under section 274(c) of the Air Traffic 
Management System Performance Improvement Act of 1996, an 
implementing bill with respect to such funding 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 under subsection (a) shall be referred 
to the Committee on Commerce, Science, and Transportation. The 
Committee on Commerce, Science, and Transportation 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 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 rulemaking 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:

``Sec. 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 
Administration.
    ``(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 
Administration, 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 same 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 Transportation and Infrastructure of the House of 
Representatives--
            ``(1) a list of fee collections by the 
        Administration during the preceding fiscal year;
            ``(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, and activities of the Administration, 
        including out-year funding estimates;
            ``(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 
adequately and accurately reflects the investments, operating 
and overhead costs, revenues, and other financial measurement 
and reporting aspects of its operations.
    ``(f) Compensation to Carriers for Acting as Collection 
Agents.--The Administration shall prescribe regulations to 
ensure that any air carrier required, pursuant to the Air 
Traffic Management System Performance Improvement Act of 1996 
or any amendments made by that Act, to collect a fee imposed on 
another party by the Administrator may collect from such other 
party an additional uniform amount that the Administrator 
determines reflects the necessary and reasonable expenses (net 
of interest accruing to the carrier after collection and before 
remittance) 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 
                    ACTIVITIES.

    (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.

``Sec. 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 annually.''.
    (b) Conforming Amendment.--The analysis for subtitle VII is 
amended by inserting after the item relating to chapter 481 the 
following:

``482. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST 
              FACILITIES.......................................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 isolated rural communities throughout 
                the Nation;
                    (B) is necessary for the economic growth 
                and development of rural communities;
                    (C) is a critical component of the national 
                and international 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:

``Sec. 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 Administration, 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.--
Notwithstanding 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.''.
    (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

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 under 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 under this 
section shall--
            (1) examine potential sources of Federal and non-
        Federal revenue that may be used to fund 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 accomplishing 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 security 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 carrying 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, security, air carrier and airport 
        operations, or another appropriate area. 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 
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 and 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 and Technology 
Council 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 equivalent entity), the cooperation of 
representatives of appropriate Federal agencies, as provided 
for in subsection (c), in providing the panel, for the study 
under this section--
            (1) expertise; and
            (2) to the extent allowable by law, resources and 
        facilities.
    (e) Reports.--The Director of the National Academy of 
Sciences (or the head of another equivalent entity) shall, 
pursuant to an arrangement 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) individuals who will be responsible for 
        screening passengers 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 determines 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--
            ``(i) an employment investigation reveals a gap in 
        employment 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 
        (b)(1)(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(a)(1)(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 investigations 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 deployment 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 authorized, based on 
operational considerations at individual airports, to waive the 
required installation of commercially available equipment 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 deployment of dogs or other 
appropriate animals to supplement equipment for screening 
passengers, baggage, mail, or cargo for explosives or 
weapons.''.
    (b) Agreements.--The Administrator is authorized to use 
noncompetitive 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.''.

SEC. 307. PASSENGER PROFILING.

    The Administrator of the Federal Aviation Administration, 
the Secretary of Transportation, the intelligence 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 1 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 AGREEMENT.

    The Secretary of Transportation and the Attorney General, 
acting through the Administrator of the Federal Aviation 
Administration 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 frequently, as necessary, at 
each airport determined 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, and operational 
effectiveness of the pilot program. The report shall also 
assess the extent to which implementation 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:

``Sec. 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 airport) that provides for intrastate, 
interstate, or foreign air transportation to conduct periodic 
vulnerability assessments of the security systems of that air 
carrier or airport, respectively. The Administration 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 
chapter is amended 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 
transmit to Congress a report on any changes recommended and 
implemented as a result of the White House Commission on 
Aviation Safety and Security to enhance and supplement 
screening and inspection of cargo, mail, and company-shipped 
materials transported 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 shipments of 
        mail and cargo by domestic and foreign air carriers;
            (3) an assessment of the need for additional 
        security measures with respect to such inspections;
            (4) an assessment of the adequacy of inspection and 
        screening 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 INTERNATIONAL 
                    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 airline passengers 
        through the destruction of civilian 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.
    (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 sponsored, 
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 paragraphs (2) through (7), 
                respectively; and
                    (B) by inserting before paragraph (2), as 
                so redesignated, the following:
            ``(1) assigning, maintaining, and enhancing safety 
        and security as the highest priorities in air 
        commerce.''.
            (2) Elimination of promotion.--Section 40101(d) is 
        further amended--
                    (A) in paragraph (2), as redesignated by 
                paragraph (1)(A) 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 
                        technology''.
    (b) FAA Safety Mission.--
            (1) In general.--Section 40104 is amended--
                    (A) by inserting ``safety of'' 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 
        chapter 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:

``Sec. 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 type of 
        information and that the receipt of that type of 
        information aids in fulfilling the Administrator'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 amended 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 
        certificate designated as a supplemental type 
        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 previously 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 appliance, 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 supplemental 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 striking ``and'' at the end of paragraph 
        (3), as redesignated 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 full 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 that will provide comparable safety at 
airports described in subsections (a)(1) and (a)(2).''.
    (c) Effective Date.--Section 44706 is further amended by 
adding at the end the following:
    ``(e) Effective Date.--Any regulation establishing the 
terms required by subsection (b) for airports covered by 
subsection (a)(2) shall not take effect until 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 
safety 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 relieve and 
protect the public health and welfare from 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 and sonic boom.
    ``(B) The Administrator, as the Administrator deems 
appropriate, 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 
aircraft 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 SURVEILLANCE TARGETING 
                    SYSTEMS.

    (a) Accident and Safety Data Classification.--
            (1) In general.--Subchapter II of chapter 11 of 
        title 49, United States Code, is amended by adding at 
        the end the following:

``Sec. 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 Transportation 
Safety Board shall, in consultation and coordination with the 
Administrator 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 
        classification under 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 Administrator, 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 calendar year.
            ``(4) Publication.--The Board shall publish 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, from time to time, request the Board 
        to consider revisions (including additions to the 
        classification system 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 surveillance 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 operational deployment of the system 
                developed under this subsection shall begin not 
                later than December 31, 1997.
                    ``(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 principal 
                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 system under this section, the Administration shall 
        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. 502. 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 information:
                    ``(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 resulting 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 any 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 
                        relating to flight time, duty time, or 
                        rest time) under regulations 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
                            ``(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, including comments 
                                and evaluations made by a check 
                                airman designated in accordance 
                                with 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 overturned; and
                                    ``(III) any release from 
                                employment or resignation, 
                                termination, or 
                                disqualification with respect 
                                to employment.
                    ``(C) National driver register records.--In 
                accordance with section 30305(b)(7), from the 
                chief driver licensing 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) shall be required to obtain written 
                consent to the release of those records from 
                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 liability for any claim arising from the 
                furnishing of such records to or the use of 
                such records by such air carrier (other than a 
                claim arising from furnishing information known 
                to be false and maintained 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 
        Administrator 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 obtaining 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 20th 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
                    ``(B) in accordance with paragraph (10), a 
                copy of such records, if requested by the 
                individual.
            ``(7) Reasonable charges for processing requests 
        and furnishing copies.--A person who receives a request 
        under paragraph (1) or (6) may establish 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 carrier 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 reasonable opportunity to 
        submit written comments to correct any inaccuracies 
        contained in the records before making a final hiring 
        decision with respect to the individual.
            ``(10) Right of pilot to review certain records.--
        Notwithstanding any other provision of law or 
        agreement, an air carrier shall, upon written request 
        from a pilot employed by such carrier, make available, 
        within a reasonable time of the request, to the pilot 
        for review, any and all employment records referred to 
        in paragraph (1)(B) (i) or (ii) pertaining to the 
        employment of the pilot.
            ``(11) Privacy protections.--An air carrier that 
        receives the records of an individual under 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, and at least once every 3 
        years thereafter, the Administrator shall transmit to 
        Congress a statement that contains, taking into account 
        recent developments in the aviation industry--
                    ``(A) recommendations by the Administrator 
                concerning proposed changes to Federal Aviation 
                Administration records, air carrier records, 
                and other records required to be furnished 
                under subparagraphs (A) and (B) of paragraph 
                (1); or
                    ``(B) reasons why the Administrator does 
                not recommend any proposed changes to the 
                records referred to in subparagraph (A).
            ``(13) Regulations.--The Administrator may 
        prescribe such regulations as may be necessary--
                    ``(A) to protect--
                            ``(i) the personal privacy of any 
                        individual whose records are 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 under paragraph 
        (2), against--
                    ``(A) the air carrier requesting the 
                records of that individual under subsection 
                (f)(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 having the 
        force and effect of law) that prohibits, penalizes, or 
        imposes liability for furnishing or using records in 
        accordance with subsection (f).
            ``(3) Provision of knowingly false information.--
        Paragraphs (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; and
                    ``(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 concerning 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 
        subsection if the information was entered in the 
        Register more than 5 years before the request unless 
        the information is about 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) in each of subsections (a)(1)(A), (d)(2), and 
        (f)(1)(A)(i) by inserting ``44724,'' after 
        ``44718(d),''; and
            (2) in subsection (a)(2)(A) 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 QUALIFICATIONS 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 
                preemployment screening tests measuring the 
                psychomotor coordination, general intellectual 
                capacity, instrument and mechanical 
                comprehension, and physical and mental fitness 
                of an applicant for employment as a pilot by an 
                air carrier; and
                    (B) standards and criteria for pilot 
                training facilities to be licensed by the 
                Administrator and 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 flight check duties for an air 
        carrier is in the public interest.
    (b) Report.--Not later than 1 year 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)(2).

SEC. 504. 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 
individuals seeking employment 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 
enactment 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:

``Sec. 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 Administrator 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 restrictions 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 recommendations on--
                    (A) whether the restrictions established by 
                the amendment 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 flying aircraft.

                      TITLE VII--FAMILY ASSISTANCE

SEC. 701. SHORT TITLE.

    This title may be cited as the ``Aviation Disaster Family 
Assistance Act of 1996''.

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:

``Sec. 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 families; and
            ``(2) designate an independent nonprofit 
        organization, with experience in disasters and 
        posttrauma communication with families, which shall 
        have primary responsibility for coordinating 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 carrier 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 organization, in consultation 
        with the director of family support services designated 
        for the accident under subsection (a)(1), determines 
        that further assistance 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 services.--It shall be the 
                responsibility of the director of family 
                support services designated for an accident 
                under subsection (a)(1) to request, as soon as 
                practicable, from the air carrier or foreign 
                air carrier involved in the accident 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 investigation; 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 under 
subsection (a)(2) shall coordinate its activities with the air 
carrier or foreign air carrier involved in the accident so that 
the resources of the carrier can be used to the greatest extent 
possible to carry out the organization'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 Board (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 carry 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.''.
            (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. AIR 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:

``Sec. 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 air 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) shall include, at a minimum, the 
following:
            ``(1) A plan for publicizing a reliable, toll-free 
        telephone number, and for providing staff, to handle 
        calls from the families of the passengers.
            ``(2) A process for notifying the families of the 
        passengers, before providing any public notice of the 
        names of the passengers, 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 aircraft (whether or not 
        the names of all 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 carrier (regardless of its 
        condition) will be returned to the family unless the 
        possession is needed for the accident investigation or 
        any criminal investigation.
            ``(7) An assurance that any unclaimed possession of 
        a passenger 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 same 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 an appropriate 
        level of services and assistance following each 
        accident.
            ``(11) An assurance that the air carrier will 
        provide reasonable 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 staying at such 
        location.
            ``(13) An assurance that the air carrier will 
        commit sufficient 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 convenience 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 pursuant to a plan 
submitted by the air 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 
meanings 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 Transportation Safety Board, the 
Federal Emergency Management Agency, the American Red Cross, 
air carriers, and 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 employees, and representatives of such other 
entities as the Secretary considers appropriate.
    (b) Guidelines and Recommendations.--The task force 
established pursuant to subsection (a) shall develop--
            (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 
        mental health licensing laws do not act to prevent out-
        of-state 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 
enactment of this Act, the Secretary shall transmit to Congress 
a report containing the model plan and recommendations 
developed by the task force under subsection (b).

SEC. 705. 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.

                 TITLE VIII--AIRPORT REVENUE PROTECTION

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Airport Revenue Protection 
Act of 1996''.

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 additional regulatory tools to increase 
        enforcement 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) Purpose.--The purpose of this title is to ensure that 
airport users are not burdened with hidden taxation for 
unrelated municipal services and activities by--
            (1) eliminating the ability of any State or 
        political subdivision 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 title 49, United States Code;
            (2) imposing financial reporting requirements that 
        are designed to identify instances of illegal 
        diversions 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 title 49, 
        United States Code; and
            (5) establishing clear penalties and enforcement 
        mechanisms for identifying and prosecuting airport 
        revenue diversion.

SEC. 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 
        provided that term in section 47102(19) of title 49, 
        United States Code.

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:

``Sec. 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 any 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 airport 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 than September 2, 1982, in a law 
controlling financing by the airport owner or operator, or a 
covenant or assurance 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 applicable maximum amount under this section 
        to an amount not to exceed 3 times the amount 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 Administration, shall promulgate regulations 
        that 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 assistance) and the sponsors, 
        owners, or operators (or other recipients) involved.
            ``(2) Content of review.--A review conducted under 
        paragraph (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 
        submitted to the Secretary under this subsection shall 
        include a specific 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 issuance of an audit or any other report that 
        identifies an illegal diversion of airport revenues (as 
        determined under subsections (b) and (l) 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 Secretary, 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 beginning on the date of notification and the 
        Secretary is unable to withhold a sufficient amount 
        under paragraph (3), the Secretary, 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 
                amount collected by a court in a civil action 
                under paragraph (4), the court shall cause to 
                be transferred to the Airport and 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 under 
        subsections (b) and (l)) 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 annual 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 immediately 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 charged under paragraph (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 expenditures 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 Administrator makes that 
determination.''.
    (b) Revision of Policies and Procedures; Deadlines.--
            (1) In general.--Not later than 90 days after the 
        date of the enactment of this Act, the Secretary, 
        acting through the Administrator, shall revise the 
        policies and procedures established under section 
        47107(l) of title 49, United States Code, to take into 
        account the amendments made to that section by this 
        title.
            (2) Statute of limitations.--Section 47107(l) 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 additional payments for services 
                conducted off of the airport 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 subparagraph shall be 
                considered to be an illegal diversion of 
                airport revenues that is subject to subsection 
                (n).''.

SEC. 806. CONFORMING AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

    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''; and
            (3) by adding at the end of subsection (b) the 
        following:
            ``(5) amounts 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 
        following:
            ``(5) Transfers from the airport and airway trust 
        fund on account of certain airports.--The Secretary of 
        the Treasury may transfer from the Airport and Airway 
        Trust Fund to the Secretary of Transportation or the 
        Administrator 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 WASHINGTON AIRPORTS

SEC. 901. SHORT TITLE.

    This title may be cited as the ``Metropolitan Washington 
Airports 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''.

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 Metropolitan 
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 Maryland, 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 ``; and''; and
            (3) by adding at the end the following:
                    ``(D) by the President after the date of 
                the enactment 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 
Washington 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 shall 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 predecessor was appointed 
        shall 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.
                    ``(B) Applicability of limitations.--If the 
                deadline of subparagraph (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 
                October 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. TERMINATION 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 
Airports 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 carrying 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'' 
        and 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 
shall 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.''.

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 Metropolitan 
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 application of that provision to any person, circumstance, 
or venue) is held invalid 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) of this Act.''.

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 amendments made to such Act by this 
title.

SEC. 909. SENSE OF THE SENATE.

    It is the sense of the Senate that the Metropolitan 
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 preferential parking privileges to 
        Members of Congress, other Government officials, or 
        diplomats.

    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) 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(d)(1) of such Code is amended by inserting before 
the semicolon at the end ``or the Federal Aviation 
Reauthorization Act of 1996''.

          TITLE XI--FAA RESEARCH, ENGINEERING, AND DEVELOPMENT

SEC. 1101. SHORT TITLE.

    This 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 
        (1)(J);
            (2) by striking the period at the end of paragraph 
        (2)(J) and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following:
            ``(3) for fiscal year 1997--
                    ``(A) $13,660,000 for system development 
                and infrastructure projects and activities;
                    ``(B) $34,889,000 for capacity and air 
                traffic management technology projects and 
                activities;
                    ``(C) $19,000,000 for communications, 
                navigation, and surveillance projects and 
                activities;
                    ``(D) $13,000,000 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 medicine 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 for Research.--(1)'' 
        and inserting in lieu thereof ``Research Priorities.--
        (1) The Administrator shall consider the advice and 
        recommendations of the research advisory committee 
        established by section 44508 of this title in 
        establishing priorities among major categories of 
        research and development activities carried out by the 
        Federal 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 
        Administrator of the amounts authorized by section 
        48102(a) of this title among the major categories of 
        research 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 identified 
        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 development activities, including the 
        rationale for the priorities identified;
            ``(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 established under section 
        44508 of this title, and document the recommendations 
        of the committee that are not accepted, specifying the 
        reasons for nonacceptance.''; and
            (3) in paragraph (3) by inserting ``, including 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 carrying out this part, the 
        Administrator may purchase a housing unit (including a 
        condominium 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 
        beginning after September 30, 1997, the Administrator 
        may adjust the dollar amount 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 thereafter 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 Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation of the Senate a report containing--
                    ``(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 facility 
revenues except for any handling fee or retention of interest 
collected on unremitted proceeds as may be allowed by the 
Secretary.''.

SEC. 1203. AUTHORITY TO CLOSE AIRPORT LOCATED NEAR CLOSED 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 of 1986 (26 U.S.C. 
9502).

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) 
shall be subject to the following conditions:
            (1) The city of Gadsden, Alabama, 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 market 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 improvements thereto) which produce 
        revenues that are used for airport development 
        purposes, or both.

SEC. 1205. REGULATIONS AFFECTING INTRASTATE AVIATION IN ALASKA.

    In modifying regulations contained 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 County 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 
Airport, 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.

SEC. 1209. CENTRAL FLORIDA 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, including, 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 
        Ombudsman shall--
                    ``(A) be appointed by the Administrator;
                    ``(B) serve as a liaison with the public on 
                issues regarding 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 under 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 Airports.--
If a privately owned reliever airport contributes any lands, 
easements, or rights-of-way to carry out a project under this 
subchapter, 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 Federal 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 December 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 funding needs; and
            (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 
reinstatement 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 air 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) analyze--
                    (A) the extent to which passenger service 
                that is provided 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 aircraft service; and
            (6) where such replacement occurred, any 
        corresponding decreases in available seat capacity for 
        consumers at the airports 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 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 section 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 
        carrier'' 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 CANDIDATES IN STATE AND LOCAL ELECTIONS.

    The Administrator of the Federal 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 carriage of candidates for election to public office in 
State and local government elections.

SEC. 1215. SPECIAL FLIGHT RULES IN THE VICINITY OF GRAND CANYON 
                    NATIONAL PARK.

    The Secretary of Transportation, acting through the 
Administrator 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 certify in writing to the Committee on 
        Commerce, Science, and Transportation of the Senate and 
        the Committee on Commerce 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 Airport 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 enactment of this Act 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, air service, or the loss of 
meteorological services or data that cannot otherwise be 
obtained in a more cost-effective manner, 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 
constructing 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 International 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) sounding 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 
        communities 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 condition as the Secretary deems 
        necessary, to protect public safety; and
            ``(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 likely 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.
    (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 establish either landfill if an 
official of the Federal Aviation Administration has stated in 
writing within the 3-year period ending 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 
(a)(1)(A), (d)(2), and (f)(1)(A)(i).

SEC. 1221. HAWAII 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 turnaround 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 
aircraft 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 (B) if 
                such voyage or segment includes or consists of 
                a segment--
                            ``(i) that begins that 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.
      And the Senate agree to the same.

                From the Committee on Transportation and 
                Infrastructure, for consideration of the House 
                bill (except section 501) and the Senate 
                amendment (except section 1001), and 
                modifications committed to conference:
                                   Bud Shuster,
                                   Bill Clinger,
                                   John J. Duncan, Jr.,
                From the Committee on Transportation and 
                Infrastructure, for consideration of section 
                501 of the House bill and section 1001 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Bud Shuster,
                                   Bill Clinger,
                As additional conferees from the Committee on 
                Rules, for consideration of section 675 of the 
                Senate bill, and modifications committed to 
                conference:
                                   David Dreier,
                                   John Linder,
                As additional conferees from the Committee on 
                Science, for consideration of sections 601-05 
                of the House bill, and section 103 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Robert S. Walker,
                                   Connie Morella,
                As additional conferees from the Committee on 
                Science, for consideration of section 501 of 
                the Senate amendment and modifications 
                committed to conference:
                                   Robert S. Walker,
                                   F. James Sensenbrenner, Jr.,
                As additional conferees from the Committee on 
                Ways and Means, for the consideration of 
                section 501 of the House bill, and sections 
                417, 906, and 1001 of the Senate amendment and 
                modifications committed to conference:
                                   Bill Archer,
                                   Phil Crane,
                                   Sam M. Gibbons,
                                 Managers on the Part of the House.
                                   Larry Pressler,
                                   Ted Stevens,
                                   John McCain,
                                   Fritz Hollings,
                                   Wendell H. Ford,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 3539) to amend 
title 49, United States Code, to reauthorize programs of the 
Federal Aviation Administration, and for other purposes, submit 
the following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report:
      The Senate amendment struck all of the House bill after 
the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clerical 
changes.

                             1. Short Title

House bill
      Section 1: ``Federal Aviation Authorization Act of 
1996''.
Senate amendment
      Section 1: ``Federal Aviation Reauthorization Act of 
1996''.
Conference substitute
      Section 1: Senate provision.

                       2. Amendments to Title 49

House bill
      Section 2: States that Amendments in this Act are to 
Title 49.
Senate amendment
      Section 2: Same provision.
Conference substitute
      Section 2: Same provision.

                            3. applicability

House bill
      Section 3: This bill applies only after September 30, 
1996.
Senate amendment
      No provision.
Conference substitute
      Section 3: House provision.

                          4. aip authorization

House bill
      Section 101:
      FY 97--$2.28 billion.
      FY 98--$2.347 billion.
      FY 99--$2.412 billion.
      Removes cumulative totals.
Senate amendment
      Section 104: FY 97--$2.28 billion.
Conference substitute
      Section 101: House provision, but only for 2 years. The 
AIP formula changes discussed below also expire after two 
years.

                          5. f&e; authorization

House bill
      Section 102:
      FY 97--$2.068 billion.
      FY 98--$2.129 billion.
      FY 99--$2.191 billion.
      Changes heading for section.
Senate amendment
      Section 102: FY 97--$1.8 billion.
Conference substitute
      Section 102: House provision, but only for 2 years.
      The Managers note that the Laser Visual Guidance Systems 
(LVGS) is a laser based guidance system that has been tested 
extensively by the Navy and suggest that FAA consider this 
system for utilization in the National Airspace System (NAS). 
The Conferees further suggest that the FAA work with the 
manufacturer to evaluate the fitness of the system for possible 
certification under 14 FAR Part 171.
      The Secretary of Transportation should take such actions 
as may be necessary to replace the FAA Control Tower at 
Syracuse Hancock International Airport in Syracuse, New York. 
All design and engineering work on the Replacement Control 
Tower has been completed and the Managers understand that this 
project is the top priority of the FAA's Eastern Region.

                      6. operations authorization

House bill
      Section 103:
      FY 97--$5.158 billion.
      FY 98--$5.344 billion.
      FY 99--$5.538 billion.
      Extends for 3 years the limit on spending Trust Fund 
money for operations. Changes heading of section. No change in 
Trust Fund share.
Senate amendment
      Section 101:
      FY 97--$5 billion.
      Removes limit on spending Trust Fund money on operations. 
Raises Trust Fund share from 70% to 75%.
Conference substitute
      Section 103: House, except for 2 years and the Trust Fund 
share is raised to 72.5%.

                      7. interaccount flexibility

House bill
      No provision.
Senate amendment
      Section 105: Permits the Administrator to transfer budget 
authority among the Operations, F&E;, and RE&D; appropriations 
accounts. Transfers of budget authority could not be made if 
outlays would exceed the aggregate estimated outlays. A 
transfer also could not result in a net decrease of more than 5 
percent, or a net increase of more than 10 percent, in budget 
authority available under any appropriation involved in that 
transfer. Any transfer would be treated as a reprogramming of 
funds and could only occur after the FAA submitted a report to 
the appropriate authorizing and appropriating committees of 
Congress. Each committee would have 30 days to object to any 
transfer.
Conference substitute
      House.

                        8. passenger entitlement

House bill
      Section 201(a)(1): Same as current law except that 
airports receive 50 cents per passenger for each passenger over 
a million.
Senate amendment
      No provision.
Conference substitute
      Section 121(a): House provision.

                          9. CARGO ENTITLEMENT

House bill
      Section 210(a)(2): Entitlement changed to 2.5%. Airports 
that do not meet landed-weight minimum can still get grant 
under this entitlement if the Secretary finds that airport will 
be served primarily by cargo aircraft.
Senate amendment
      No change.
Conference substitute
      Section 121(a)(2): House provision.

                          10. ENTITLEMENT CAPS

House bill
      Section 201(a)(3): Caps eliminated
Senate amendment
      No change.
Conference substitute
      House provision: Section 121(a)(3).

                         11. STATE ENTITLEMENT

House bill
      Section 201(b): Raised to 18.5%. Relievers and small 
commercial service airports added.
Senate amendment
      No change.
Conference substitute
      House provision: Section 121(b).

                         12. DISCRETIONARY FUND

House bill
      Section 202: Must be at least $50 million plus amount 
needed to cover letters of intent issued prior to 1/1/96. 
Entitlement and set-asides reduced accordingly if necessary to 
meet this minimum. Amount in fund above what is needed to cover 
letters of intent is distributed 15% to planning & general 
aviation airports and 30% to small hubs and non-hubs.
Senate amendment
      Section 203: FAA must fulfill letter of intent (LOI) 
commitments.
Conference substitute
      Section 122: House except that $50 million is changed to 
$148 million and the 15% guarantee to general aviation airports 
and the 30% guarantee to small airports is eliminated. In FY 
97, this should result in a remaining discretionary fund of 
$300 million. The Managers would expect this to be distributed 
in accordance with FAA's historical discretionary fund 
distribution practices. If the formula results in a 
discretionary fund of more than $300 million, the portion that 
exceeds $300 million should be distributed one-third to general 
aviation airports, one-third to noise projects, and one-third 
to the military airport program.

                  13. CAP ON GRANTS TO LARGE AIRPORTS

House bill
      No provision.
Senate amendments
      Section 202: Establishes a sliding cap on the level of 
total AIP funds going to large and medium hubs. The percentage 
limit would vary depending upon the level of funds appropriated 
to AIP. The percentage of total AIP funds going to projects at 
large and medium hub airports would be: 44.3 percent at funding 
of $1.45-1.55 billion; 44.8 percent at funding of $1.35-1.45 
billion; 45.4 percent at funding of $1.25-1.35 billion; 46 
percent at funding of $1.15-1.25 billion; and 47 percent at 
funding below $1.15 billion.
Conference substitute
      House.

                       14. CARRYOVER ENTITLEMENTS

House bill
      Section 203(a): Non-hubs can carry over their 
entitlements for 3 years.
Senate amendment
      No provision.
Conference substitute
      House provision: Section 123(a).

                             15. SET-ASIDES

House bill
      Section 203(b): Eliminates reliever, small commercial, 
and planning set-asides. Set-aside for noise is 31% of 
discretionary fund. This includes what an airport spends on 
noise from its entitlement. Set-aside for military airports is 
4% of the discretionary fund. This can be used for operational 
and maintenance at general aviation airports adversely affected 
by a military base closure.
Senate amendment
      No provision.
Conference substitute
      House provision: Section 123(b).

                      16. MILITARY AIRPORT PROGRAM

House bill
      Section 204:
      Reduces number of airports to 10.
      Changes criteria so that airports could be included if 
they would increase capacity in major metropolitan areas and 
reduce delays.
      Extends indefinitely eligibility of parking lots, fuel 
farms, and utilities.
      Adds hangars to eligible items.
      Also, Section 203(b) extends program indefinitely.
Senate amendment
      Section 204:
      Reduces number of airports to 12.
      Criteria changed so that except for airports included 
before August 24, 1994, the only ones that could be included 
would be closed or realigned military airports or those that 
would reduce delays at an airport with 20,000 annual delays or 
would increase capacity in metropolitan areas or reduce delays.
      A military airport may be designated for additional 5-
year period.
      Extends indefinitely eligibility of parking lots, fuel 
farms, and utilities.
      Extends program for 1 year.
Conference substitute
      Section 124:
      Senate provision but add eligibility for hangars from 
House bill.
      Extend program length for 2 years.

                        17. innovative financing

House bill
      Section 206: Authorizes 10 innovative financing projects 
over next 3 years limited to payment of interest, bond 
insurance, and flexible local match. Phased funding is not 
included.
Senate amendment
      No provision.
Conference substitute
      Section 148: House provision.

                        18. intermodal planning

House bill
      Section 301: This section encourages coordination between 
aviation planning and other transportation planning in the 
metropolitan area and encourages Metropolitan Planning 
Organizations (MPOs) to include airport operators as members. 
Subsection (b) requires the sponsor of a new airport to give 
the MPO a chance to review plans for the new airport and 
include in the AIP grant application its response to any 
comments made by the MPO.
Senate amendment
      No provision.
Conference substitute
      Section 141: House provision but drop subsection (b).

                          19. federal mandates

House bill
      Section 302: This section broadens the ability of AIP and 
PFC funds to be used to pay for Federal mandates.
Senate amendment
      Section 201(b): Similar provision.
Conference substitute
      Section 142(b): Senate provision.

                         20. runway maintenance

House bill
      Section 303: Permits AIP grants for up to 10 runway 
maintenance projects per year at general aviation airports.
Senate amendment
      Section 201: Similar but requires issuance of 
regulations. Two projects must be in states without a medium or 
large hub. In designating projects, FAA must take into account 
geographical, climatological, and soil diversity.
Conference substitute
      Section 142(a): Senate provision, but the Administration 
will issue guidelines instead of regulations.

                          21. intercity buses

House bill
      Section 304: A new grant assurance directing airports to 
try to provide access to intercity buses.
Senate amendment
      Section 206: Similar grant assurance except it applies to 
other modes of transportation and explicitly states that the 
airport does not have to fund any special facilities as a 
result of this provision.
Conference substitute
      Section 143: Senate provision.

                         22. cost reimbursement

House bill
      Section 305:
      This section allows AIP grants to be used to reimburse an 
airport for a project already underway. This reimbursement must 
be from the airport's entitlement funds and the grant can be 
made only if:
            (i) The project is begun after September 30, 1996;
            (ii) A grant agreement is executed for the project; 
        and
            (iii) The project is in accordance with the 
        airport's approved layout plan and complies with all 
        laws, rules, and assurances that usually apply to AIP 
        grants.
      Subsection (b) states that an airport will not receive 
any priority for discretionary funds if its entitlement turns 
out to be insufficient to cover reimbursement for the project.
Senate amendment
      No provision.
Conference substitute
      Section 144: House provision.

                          23. Letter of Intent

House bill
      Section 306: This section requires the Secretary to issue 
rules requiring a cost-benefit analysis for new letters of 
intent (LOI) for projects at medium and large hub airports. No 
letters of intent can be issued for projects not yet under 
construction until these rules take effect even if the airport 
has already applied for the LOI. A request for a letter of 
intent must include specific details of the proposed financing 
plan for the project. The Secretary must consider the effect of 
the project on overall national air transportation policy when 
deciding whether to issue a letter for a project.
Senate amendment
      No provision.
Conference substitute
      Senate provision: The Managers understand that concerns 
have been voiced regarding previous management by the Federal 
Aviation Administration (FAA) for Letters of Intent (LOI) under 
the Airport Improvement Program. As outlined in GAO/RCED-94-
100, the FAA has been criticized for not ``establish[ing] goals 
and performance measures for the [LOI] program, including a 
goal for improving systemwide capacity.'' Recognizing the need 
for a clear set of selection criteria to review all new LOI 
applications, the FAA promulgated a new review policy, as 
printed in the Federal Register on October 31, 1994, which 
evaluates three components of an application: a project's 
effect on overall national air transportation system capacity; 
a project's benefit and cost, and; the financing commitment, 
including project timing, in terms of the airport capital 
improvement plan by the airport sponsor. The Managers applaud 
the FAA's efforts on this matter and direct FAA officials to 
consider each of the three requirements prior to issuance of 
any Letters of Intent.

        24. selection criteria for award of discretionary grants

House bill
      Section 307: This section adds three additional criteria 
to be considered in the award of discretionary grants. They are 
the priority that a State gives to the project, the projected 
growth in passengers at the airport, and whether the number of 
passengers has increased by more than 20 percent over the 
previous 12-month period.
Senate amendment
      Section 203: Adds two additional criteria. They are (1) 
at a reliever airport, the number of operations projected to be 
diverted to the reliever airport as a result of the project and 
the cost savings to be realized by the users and (2) the 
priorities of the States and FAA regional offices to the extent 
they are not in conflict with the other criteria of this 
section.
Conference substitute
      Section 145: Both House bill and Senate amendment.

                         25. small airport fund

House bill
      Section 308: This section states that in making grants to 
non-hub airports from the small airport fund, the Secretary 
shall give priority to multi-year projects for construction of 
new runways that are cost beneficial and would increase 
capacity in a region of the U.S.
Senate amendment
      No provision.
Conference substitute
      Section 146: House provision.

                         26. State Block Grant

House bill
      Section 309: This section changes the state block grant 
program by increasing the number of participating states from 7 
to 10, directing FAA to permit States to use their own priority 
system when not inconsistent with the national priority system, 
and making the program permanent.
Senate amendment
      Section 205:
      Directs FAA to permit States to use their own priority 
system when not inconsistent with the national priority system.
      Extends program for one year.
Conference substitute
      Section 147:
      House provision, except the number of states is increased 
to 8 in 1997 and 9 in 1998. Many airport sponsors own and 
operate more than one airport. For instance, an entity may 
serve as the sponsor of a primary airport, and it may also own 
and operate one or more reliever airports. The sponsor in 
essence maintains an integrated airport system.
      In a State Block Grant Program state, the state has been 
designated the responsibility for distributing federal grant 
funds to the state's reliever airports. The Managers are aware, 
however, of instances in which a State Block Grant state has 
entered into an agreement with the Federal Aviation 
Administration, under which the appropriate FAA regional office 
continues to determine and distribute grant funds to particular 
reliever airports that are owned and operated by a sponsor that 
also owns and operates a primary airport.
      The Managers support continuation of this type of 
arrangement. It would be inefficient and unnecessarily 
duplicative for an airport sponsor that owns and operates a 
primary airport and one or more reliever airports as an 
integrated system to be subject to two different sets of grant 
procedures and standards (both federal and state) in the 
execution and administration of federal AIP grants. The 
Managers encourage the continuation of this arrangement between 
the FAA and the state, even when the law provides that states 
shall hold the authority to administer reliever airport funds.

                       27. airport privatization

House bill
      Section 310:
      Creates a pilot program permitting, subject to DOT 
approval, the sale or long-term lease of 6 airports. The 
sponsor and the potential purchaser must file an application. 
DOT may grant the application by issuing three exemptions. The 
first exemption would waive the revenue diversion prohibitions 
to permit the public owner to make money from the sale but only 
an amount agreed to by 60 percent of the airlines serving that 
airport with 60 percent of the landed weight. The second 
exemption would waive the requirements in law and FAA policy 
guidance that AIP grants be repaid and land received from the 
Federal government be returned. The third exemption would 
permit the new owner to receive compensation from operating the 
airport.
      Subsection (c) of new section 47133 lists the conditions 
that must be met by an airport sale or lease agreement. These 
conditions are provisions to ensure that; (1) the airport will 
be available to the public on reasonable terms and without 
discrimination; (2) the airport will continue in operation 
without interruption in the event the new owner goes bankrupt; 
(3) the new owner will maintain and improve the airport and 
include a plan for doing so; (4) airline fees will not increase 
faster than inflation unless more than 60 percent of the 
airlines with 60 percent of the landed weight agree to higher 
rates; (5) safety at the airport will be maintained; (6) noise 
from the airport will be mitigated; (7) environment impacts 
will be mitigated; and (8) collective bargaining agreements of 
airport employees will not be abrogated.
      At least one of the privatized airports is to be a 
general aviation airport. The private airports under this 
section are authorized to charge a PFC, receive AIP entitlement 
grants, and charge users reasonable rates, fees, and charges 
like other airports. The new owner is required to continue to 
use the facility as an airport. The exemptions issued under 
this section may be revoked if, after notice and hearing, DOT 
finds that the purchaser or lessee has knowingly violated any 
of the commitments that it made in the purchase or lease 
agreement.
      Subsection (h) of new section 47133 clarifies that the 
power of airlines over use of revenue and fees in this section 
applies only to the airports purchased or leased under this 
section and not to other airports.
      Subsection (b) of this section makes private airports 
subject to the same prohibition on head taxes as public 
airports.
      Subsection (c) requires DOT to consider whether the 
private airport has complied with the requirement that airline 
fees not increase faster than the rate of inflation in deciding 
a rates and charges complaint against that airport.
Senate amendment
      No provision.
Conference substitute
      Section 149:
      House provision with following changes or clarifications:
            Reduce number of participating airports from 6 to 5
            1 large, 3 medium, small, or non-hubs, and 1 
        general aviation airports are eligible for this pilot 
        program
            65% of airlines must agree to transactions and to 
        rate hikes. If 1 carrier represents 65% of landed 
        weight then 2 airlines must approve for transactions 
        and rate hikes.
            Discretionary AIP grants allowed but only if 
        sanctioned by FAA Administrator with 60% private money 
        match to 40% Federal
            2-year study of the pilot program with a report to 
        appropriate Congressional committees
            DOT Secretary must validate that any airport 
        privatized would not be anti-competitive requirement 
        that airport operator has to improve and modernize 
        airport through capital investments
            Secretary has authority to audit airport anytime.
            Rate hikes on general aviation shall rise no faster 
        than those of commercial carriers.
            Secretary shall consider needs of general aviation 
        when approving privatization
            Commercial service airports limited to long-term 
        leases. Lease or sale permitted for general aviation 
        airports.
      The Managers have agreed to a limited pilot program to 
determine if new investment and capital from the private sector 
can be attracted through innovative financial arrangements. The 
managers spent a great deal of time discussing and debating a 
series of conditions and limitations. The managers are aware 
that Allegheny County Airport, a general aviation facility in 
Pennsylvania, and Stewart Airport in New York State are 
interested in pursuing these innovative arrangements. The 
managers anticipate that all airport applications should be 
appropriately considered and that the Secretary should select 
airports for this pilot program based on the best qualified 
candidates.

   28. Use of Noise Abatement Funds by Non-Airport Local Governments

House bill
      Section 311: This section permits noise abatement grants 
to be made to State or local government that is not the 
airport's owner if that government has land use and zoning 
control in the area and if the airport agrees that the State or 
local government's noise abatement plan or project is 
consistent with airport operations and plans.
Senate amendment
      No provision.
Conference substitute
      Senate.

                            29. Dual Mandate

House bill
      Section 401: Amends sections 40101(d) to make safety and 
security FAA's highest priority and to strike promotion 
language in two other paragraphs. Amends 40104(a) to strike 
promotion language.
Senate amendment
      Section 407: Amends section 40104 to require FAA to 
encourage the safety of air commerce in addition to the 
development of civil aeronautics.
Conference substitute
      Section 401: House changes to section 40101(d) and Senate 
changes to section 40104(a). The Managers have adopted 
provisions from both the House and Senate bills to clarify that 
the FAA's highest priority is safety and security. The managers 
do not intend for enactment of this provision to require any 
changes in the FAA's current organization or functions. 
Instead, the provision is intended to address any public 
perceptions that might exist that the promotion of air commerce 
by the FAA could create a conflict with its safety regulatory 
mandate.

                     30. Purchase of Housing Units

House bill
      Section 402: This section permits FAA to purchase housing 
outside the 48 States if the unit does not cost more than 
$200,000 and the FAA files a report with Congress 30 days 
before the closing certifying that the price of the units does 
not exceed the median price in the area and that buying the 
housing is the most cost beneficial way to provide housing for 
its employees.
Senate amendment
      Section 401: Similar provision except no $200,000 cap and 
no certification that price does not exceed the median price.
Conference substitute
      Section 1201: House except the cap is raised to $300,000 
plus inflation in the local area.

          31. technical correction relating to state taxation

House bill
      Section 403: This section corrects a mistake that was 
made when section 1113 of the Federal Aviation Act of 1958 (49 
U.S.C. 1513) was recodified as section 40116 of Title 49.
Senate amendment
      No provision.
Conference substitute
      No provision. The managers recognize that this technical 
correction has created confusion. In order to provide more time 
for review, the provision has not been included in this bill. 
However, the managers continue to believe that the 
recodification of section 1113 was done incorrectly and would 
expect that the new section 40116 would continue to be 
interpreted in the same way as former section 1113.

               32. use of pfc for debt financing project

House bill
      Section 404: This section permits revenue from an 
airport's passenger facility charge (PFC) to be spent on debt 
financing on terminal development projects at non-hub airports 
where construction began between November 5, 1988 and November 
5, 1990 and the airport certifies that no safety, security, or 
capacity project will be deferred by spending PFC money in this 
way.
Senate amendment
      No provision.
Conference substitute
      Senate.

      33. clarification of pfc revenue as constituting trust funds

House bill
      Section 405: States that PFC money collected by airlines 
is held in trust by them and that they hold neither a legal or 
equitable interest in it except for the handling fee or 
interest permitted by DOT.
Senate amendment
      No provision.
Conference substitute
      Section 1202: House provision.
      This provision clarifies Congress' intent in authorizing 
the Passenger Facility Charge program in 1990 that PFCs 
collected by airlines and their agents are held in trust for 
the local agencies imposing those fees. FAA's current 
regulations implementing the PFC statute accurately reflects 
the trust fund nature of the airlines' collection and 
remittance of PFC funds from their passengers. In certain 
recent and current airline bankruptcy cases, courts have 
appeared erroneously not to accept the trust fund nature of the 
collection process; PFC proceeds should not be treated as other 
funds of the bankrupt carrier.

              34. voluntarily submitted safety information

House bill
      Section 406:
      This section permits FAA to withhold voluntarily provided 
safety and security information if disclosure would discourage 
people from providing it, the information helps FAA improve 
safety and security, and withholding the information would not 
be inconsistent with the FAA's safety and security 
responsibilities.
      The FAA should issue rules to establish the process by 
which protection from disclosure will be afforded to 
voluntarily submitted information.
Senate amendment
      Section 402: Same provision with slight wording 
differences.
Conference substitute
      Section 402: Senate provision.

                   35. supplemental type certificates

House bill
      Section 407: This section states that FAA may issue 
supplemental type certificates (STCs) for modifications to 
aircraft parts. It requires anyone installing the modification 
to have the permission of the holder of the STC to use it.
Senate amendment
      No provision.
Conference substitute
      Section 403: House provision.
      Nothing in this provision is intended to alter or modify 
the continuing obligation of an STC design holder under 
existing Federal Aviation Regulations to notify the operator of 
an STC modified aircraft of changes necessary to ensure 
continued airworthiness of the product.

                         36. Revenue Diversion

House bill
      Section 408: This section imposes the existing 
prohibition against revenue diversion on all airports 
certificated by FAA even if they are not receiving AIP grants. 
This provision does not apply to heliports. Airports that have 
not received grants in the last 10 years can get waivers from 
the FAA. Subsection (b) imposes treble damages on anyone caught 
illegally diverting airport revenue.
Senate amendment
      Section 904:
      Prohibits using local taxes (except taxes effective on 
December 30, 1987) or revenues generated by an airport that is 
subject to Federal assistance, for anything but capital and 
operating costs of the airport, the local airport system, or 
other facilities owned or operated by the airport that are 
directly related to air transportation.
      Exemption for airports who had a statute passed before 
September 2, 1982 allowing revenue to support the general debt 
obligations or other facilities of the owner or operator.
      State tax on aviation may still support aviation noise 
mitigation purposes.
      Section 905:
      Requires the annual audit required in Sections 7501-7505 
of Title 31 of airport grant recipients include an audit of 
funding activities. If the airport is found to inappropriately 
handle airport funds, the Administrator must review the audit, 
collect appropriate information, and hold a hearing to render a 
final determination if the airport illegally diverted revenues. 
The Airport sponsor is then notified. The Secretary may 
withhold transportation funds if the sponsor is found to owe 
the airport revenue. Sponsor has 180 days to pay or may be 
charged civil penalties which would go to the aviation trust 
fund. Actions to recover illegally diverted funds have a 6 year 
statute of limitations.
      The Secretary shall charge a minimum interest rate of 
illegally diverted revenue. In 90 days, DOT shall revise the 
policies and procedures under 47107(i) of Title 49. If an 
airport pays for services conducted off the airport for capitol 
or operating expenses later than 6 years after the expense was 
incurred, it is considered revenue diversion.
      Section 906: This is a conforming amendment to the 
Internal Revenue Code of 1986.
Conference substitute
      Title VIII:
      Senate, but add treble damages from the House bill.
      The conferees want to clarify that if a local fuel tax 
was enacted or adopted before December 30, 1987, but for which 
collections were not made until some significant period of time 
after December 30, 1987, it shall not be grandfathered pursuant 
to this section and all proceeds of such a tax must be used for 
the capital or operating costs of the airport, the local 
airport system, or pursuant to paragraph (3) of subsection (a).

                  37. certification of small airports

House bill
      Section 409:
      This section authorizes FAA to certificate airports 
served by commuter aircraft with between 10 and 30 seats. In 
establishing the standards with which these small airports must 
comply, the FAA should adopt the least burdensome alternative 
that will provide a comparable level of safety with the larger 
airports. Any rule imposing standards on these small airports 
cannot go into effect until 120 days after the rule, and a 
report on the impact of the rule on air service to the airports 
involved, is submitted to Congress.
      An airport cannot be required to seek a certificate if it 
does not desire commuter air service.
Senate amendment
      No provision.
Conference substitute
      House provision: Section 404.

                        38. pilot record sharing

House bill
      Section 410. This is based on H.R. 3536 (Report 104-684) 
that passed the House on July 22, 1996.
      Adds a new section 44723 to the chapter on air safety 
regulation.
      Subsection (a) of section 44723 deals with pilot records. 
This subsection would require an airline, before hiring a 
pilot, to request the pilot's records. The hiring airline would 
be required to request from the FAA, the pilot's license, 
medical certificate, type rating, and any enforcement actions 
that resulted in a finding against the pilot that has not been 
overturned.
      In addition, it requires the airline to request records 
from the pilot's previous airline employer. These records 
include proficiency and route checks, airplane and route 
qualifications, training, physical exams, physical or 
professional disqualifications, drug tests and alcohol tests.
      Airlines would be required to request the motor vehicle 
driving records of the pilot from the National Driver Register.
      Similar items would be required at contract carriers and 
at commuter airlines.
      Records that must be furnished are limited to those 
entered within 5 years of the date of the request unless the 
record involves a license revocation that is still in effect.
      The FAA and the airlines would be required to maintain 
the relevant records for 5 years. Before any records are 
released, the FAA and the airlines must obtain written consent 
from the pilot. These records must be provided within 30 days.
      The pilot must also be informed within 20 days that his 
or her records have been requested and that the pilot has a 
right to receive a copy of those records. A reasonable charge 
may be imposed by those providing the requested records.
      An airline receiving the records must give the pilot a 
chance to submit written comments correcting any inaccuracies 
in those records. The pilot is also afforded the right to 
review his or her records at the current employer.
      The privacy of the pilot is protected by limiting the use 
of the records received under this section to those involved in 
the hiring decision and by requiring that the records be 
destroyed or returned when they are no longer needed.
      The FAA would be permitted to provide standard forms to 
request records, obtain the written consent from pilots, and 
inform the pilot of the record request. In addition, this 
section would permit the FAA to promulgate rules protecting the 
privacy of pilots and ensuring the prompt compliance with a 
request for records.
      Subsection (b) of section 44723 limits liability and 
preempts States and local law. Paragraph (1) prohibits lawsuits 
against an airline or its employees for requesting a pilot's 
record, complying with such a request, or entering information 
into the pilot's record. Paragraph (2) preempts any State or 
local government from passing any law which would undermine 
this prohibition. However, paragraph (3) provides a limited 
exception to the prohibition in paragraph (1) by permitting a 
lawsuit or State action if the airline knowingly provided false 
information about the pilot.
      Subsection (c) of section 44723 makes clear that the 
privacy protections and other limits in this bill are not meant 
to hinder the FAA, NTSB, or a court in their ability to obtain 
records in the course of an investigation of an accident. This 
section also makes conforming changes to the current law 
governing the National Driver Register.
      Subsection (d) makes violations of the record-sharing and 
privacy provisions subject to civil penalties.
      Subsection (e) makes the above changes applicable to any 
airline hiring a pilot 30 days after the date of enactment.
      Requires the FAA to issue a proposed rule within 18 
months establishing minimum standards for pilot qualifications.
      Requires the FAA, together with the Defense Department, 
to report within one year on whether military pilot records 
should be made available to civilian airlines seeking to hire 
that pilot.
      Requires the FAA to conduct a study to determine whether 
current minimum flight time requirements for an individual 
seeking employment as a pilot with an air carrier are 
sufficient. The results of this study must be submitted to 
Congress not later than 1 year after the date of enactment.
Senate amendment
      Sections 701-703: Same as House except:
      Different short title.
      Uses phrase ``hiring an individual as a pilot'' rather 
than ``allowing individual to begin service as a pilot''.
      No exception for records on flight, duty, and rest time.
      No requirement that FAA obtain written consent from the 
pilot before releasing records (b)(2).
      Permits airlines to obtain a release from liability 
(f)(2)(B).
      No requirement that air carrier or trustee maintain 
records for 5 years. (f)(4).
      30 day deadline for furnishing records runs from receipt 
of request rather than from receipt of pilot's consent. (f)(5).
      No deadline for providing record to pilots. (f)(6).
      Promulgation of standard forms is mandatory rather than 
discretionary. (f)(8).
      No requirement to destroy or return records if the pilot 
is not hired.
      Adds a periodic review.
      No protection from liability for person writing the 
records.
      Exception from liability for knowingly providing false 
information applies only if record was maintained in violation 
of a criminal statute.
      No assurance that DOT, NTSB, and courts will have access 
to pilot records.
      No civil penalties.
      No deadline on study of minimum standards for pilots.
      No study of military records.
      No study of minimum flight times.
Conference substitute
      Title V:
      Senate with the following provisions from the House 
bill--
      Air carrier records to be shared with prospective 
employers should not include records relating to flight time, 
duty time, or rest time.
      Provide written consent for release of records.
      Records must be furnished to a pilot in 20 days of 
receipt of request
      Protection from liability for person entering information 
into the records
      Assurance that FAA, NTSB, and the courts will have access 
to the records.
    A study of minimum flight times.
      A study of pay for training is also added.

                         39. child pilot safety

House bill
      Section 411. This is based on H.R. 3267 (Report 104-683) 
that passed the House on July 22, 1996.
      States that a pilot in command of an aircraft may not 
allow an individual who does not hold a valid private pilots 
certificate and the appropriate medical certificate 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 feat. The 
Administrator is given the power to revoke an airman's 
certificate if the Administrator finds that a pilot has allowed 
a non-pilot to manipulate the controls while attempting to set 
a record or engage in an aeronautical competition or feat.
      Requires the FAA Administrator to conduct a study of the 
impacts of children flying aircraft. The Administrator must 
consider the effects of imposing any restrictions on children 
flying aircraft on safety and on the future of general 
aviation. The report is due 6 months after enactment, and 
should include recommendations on: (1) whether the restrictions 
established by the bill should be amended or repealed; and (2) 
whether certain individuals or groups should be exempt from any 
age, altitude, or other restrictions that the Administrator may 
impose by regulation. Finally, the bill allows the 
Administrator to issue regulations imposing age, altitude, or 
other restrictions on children flying aircraft as a result of 
the findings of the study.
Senate amendment
      No provision.
Conference substitute
      House provision: Title VI.

                   40. Background Checks on Screeners

House bill
      Section 412: This section permits FAA to require airlines 
to do background checks before hiring someone to screen 
passengers, their baggage, or cargo. This could include 
criminal history record checks only where the background 
investigation revealed a gap in employment of a year or more 
that is not satisfactorily explained. This applies only to 
screeners hired on or after the date of enactment. A screener 
may be hired while undergoing a background check if properly 
supervised.
Senate amendment
      Section 305: Require background checks for screeners and 
others associated with baggage or cargo. Lists situations 
where, at a minimum, ciminal checks required.
Conference substitute
      Section 304: Senate provision but delete the phrase ``at 
a minimum'' and add special rule from House bill allowing a 
screener needing a background check to continue working if 
properly supervised.

                41. airports near closed military bases

House bill
      Section 414: Permits general aviation airports near 
closed or realigned military bases to be closed.
Senate amendment
      No provision.
Conference substitute
      Section 1203: House provision but limited to airports 
near Army depots. Also, adds a provision that if the sale of 
the land generates enough money to pay off remaining the value 
of the grant, that remaining value must be repaid. The 
substitute reduces the distance between the airport and the 
depot from 3 miles to 2 miles.

                      42. construction of runways

House bill
      Section 415: Permits AIP grants for constructing a new 
runway at an international airport not withstanding any other 
provision of law.
Senate amendment
      No provision.
Conference substitute
      Senate.

                         43. gadsden air depot

House bill
      Section 416: Waives deed restrictions at Gadsden Air 
Depot.
Senate amendment
      No provision.
Conference substitute
      Section 1204: House provision.

        44. regulations affecting intrastate aviation in Alaska

House bill
      Section 417: Requires FAA to consider Alaska's unique 
reliance on aviation and to make the appropriate regulatory 
distinctions when taking actions that could affect Alaska.
Senate amendment
      Section 403:
      Same provision.
      Slight differences in wording.
Conference substitute
      House provision: Section 1205.

                         45. Westchester County

House bill
      Section 418: Permits fees collected by Westchester County 
Airport to be paid into the county treasury as long as 
expenditures from the county treasury for the airport at least 
equal the amount of money it collects from the airport.
Senate amendment
      No provision.
Conference substitute
      Section 1206: House provision.
      The Managers want to clarify that the funds generated by 
the airport should be spent on capital and operating costs of 
the airport. The assumption is that the expenditures from the 
treasury of Westchester County for the Westchester County 
Airport will be equal to or greater than the fees being 
deposited into the treasury by the airport, otherwise it should 
be considered revenue diversion.

                          46. Bedford Airport

House bill
      Section 419: States that any instrument landing system in 
Pennsylvania that is decommissioned should, if feasible, be 
transferred and installed at the Bedford, Pennsylvania Airport.
Senate amendment
      No provision.
Conference substitute
      Section 1207: House but change ``shall'' to ``may'' and 
drop the phrase ``if feasible''.

                     47. Doppler Radar in New York

House bill
      Section 420: Prohibits the construction of a Doppler 
radar at the Coast Guard station in Brooklyn, New York. Also 
requires a study and report within one year of the feasibility 
of placing the radar on off-shore platforms. The report must 
include proposed locations that are as far as possible from 
populated areas while providing appropriate safety measures. 
The FAA may not begin construction of a Doppler radar for 
Kennedy or LaGuardia Airports until this study is completed.
Senate amendment
      No provision.
Conference substitute
      Section 1217:
      House provision but limited to a study and report.
      The Managers believe that when the final Environmental 
Impact Statement (EIS) on the siting of a Terminal Doppler 
Weather Radar is issued it should include an analysis of all 
sites mentioned in the final scoping paper for the EIS.

                         48. Worcester Airport

House bill
      Section 421: Directs FAA to provide radar coverage for 
Worcester Airport from a radar in Rhode Island if that would be 
appropriate.
Senate amendment
      No provision.
Conference substitute
      House provision: Section 1208.

                          49. Sanford Airport

House bill
      Section 422: Directs FAA to provide a new ILS for this 
airport if that would be appropriate.
Senate provision
      No provision.
Conference substitute
      Section 1209: House provision.

                      50. Aircraft Noise Ombudsman

House bill
      Section 423: Requires FAA to hire a noise ombudsman to 
serve as a liaison with the public on issues regarding aircraft 
noise and to be consulted when the FAA changes aircraft routes.
Senate amendment
      No provision.
Conference substitute
      Section 1210: House provision, except that the provision 
is revised to make clear that the FAA need not increase the 
total number of FTEs.

                         51. Private Relievers

House bill
      Section 424: Allows private relievers to donate property 
as their local share for an AIP grant. FAA shall value any such 
donation at its fair market value, not at its original purchase 
price.
Senate amendment
      No provision.
Conference substitute
      Section 1211: House provision.

                      52. Trust Fund Authorization

House bill
      Section 501: Allows grants and expenditures out of the 
Trust Fund for 3 years.
Senate amendment
      Section 301: Similar provision except limited to 1 year.
Conference substitute
      Title X: Allows grants and expenditures out of the Trust 
Fund for 2 years.

                              53. research

House bill
      Title VI:
      Funds FAA Research, Engineering, and Development Account 
at $186 million for 1997.
      Adds research priorities for the Administration.
      Adds to the duties of the Research Advisory Committee by 
requiring an annual review of the RED funding level.
      The National Aviation Research Plan is reduced from a 15-
year plan to a 5-year plan. It also requires additional 
information in the Plan.
Senate amendment
      Section 103: FY 97--$206 million.
Conference substitute
      Title XI: House provision but adds $21 million for 
security programs consistent with the President's emergency 
request for additional funds for security.

                  54. washington metropolitan airports

House bill
      H.R. 1036, Report 104-596:
      Eliminates the Board of Review.
      Adds four Presidential appointees to the airport board.
      Replaces the Board of Review with a nine member Federal 
Advisory Commission appointed by the Secretary of 
Transportation.
      Subjects to periodic congressional reauthorization, the 
eight airport actions, including the issuance of bonds, that 
were formerly subject to review by the Board of Review.
      Freezes current airport regulations governing the Dulles 
access road which now limit use of that road to vehicles going 
to or from Dulles Airport.
      Liberalizes the slot rules so that FAA could permit 
additional flights at National but only for new entrants; 
essential air service; or foreign air transportation as long as 
those additional flights would not adversely affect safety.
Senate bill
      Eliminates Board of Review.
      Adds Two Presidential appointees.
      Sense of the Senate on parking.
Conference substitute
      Title IX:
      Increases the Board of Directors from 11 to 13 by 
increasing Presidentially appointed members from 1 to 3. The 
members appointed by the President should be registered voters 
of states other than Maryland, Virginia, or the District of 
Columbia and not more than 2 from the same political party. 
These members shall represent the national interest and be 
appointed by September 30, 1997.
      The Board of Review is terminated.
      Former staff of the Board of Review may be hired by the 
Secretary of Transportation and paid by the Airport Authority.
      After October 1, 2001, DOT may not approve any airport 
grants or new PFC applications. This is intended only to 
provide a mechanism for periodic Congressional review of 
airport actions.
      Assures Dulles Airport Access Highway remains dedicated 
to airport users.
      Sense of the Senate that MWAA not provide reserved, free 
or preferential parking to Members of Congress, other 
government officials, or diplomats.

 55. Sense of the Senate Regarding the Funding of the Federal Aviation 
                             Administration

House bill
      No provision.
Senate amendment
      Section 404: Sense of the Senate provision stating that 
the aviation excise taxes should be reinstated for 18 months 
while long-term funding options for the FAA are developed.
Conference substitute
      Section 1212: Senate provision.

          56. authorization for state-specific safety measures

House bill
      No provision.
Senate amendment
      Section 405: Authorizes appropriations of up to $10 
million to the FAA in FY 1997 to address aviation safety 
problems identified by the National Transportation Safety Board 
(NTSB) in specific states.
Conference substitute
      Section 405: Senate provision.

                    57. air ambulance tax exemption

House bill
      No provision.
Senate amendment
      Section 406: Sense of the Senate provision stating that 
if the aviation excise taxes are reinstated, the exemption from 
these taxes (i.e., from the passenger ticket tax) for 
helicopter air ambulance transportation should be broadened to 
include transportation by fixed-wing air ambulances.
Conference substitute
      House provision: This was addressed in other legislation.

                          58. commercial space

House bill
      No provision.
Senate amendment
      Title V: Amends Commercial Space Launch Act.
Conference substitute
      House provision.

                             59. FAA Reform

House bill
      No provision although the House passed a FAA reform 
measure (H.R. 2276, Report 104-475) in March 1996.
Senate amendment
      Title VI:
      Section 601 cites the short title of title VI as the 
``Air Traffic Management System Performance Improvement Act of 
1996''.
      Section 602 defines the terms ``Administration'', 
``Administrator'', and ``Secretary'' for the purposes of this 
title of the bill.
      Section 603 establishes that the provisions of title VI 
will take effect 30 days after enactment of the legislation.
      Section 621 sets forth a series of findings establishing 
the general basis for enactment of the provisions contained in 
title VI. The findings recognize, for example, the unique 
character of the FAA's activities and the need for funding 
reform.
      Section 622 sets forth four critical purposes 
underpinning title VI.
      Section 623 amends section 106 of title 49, United States 
Code, to provide the FAA Administrator express autonomy and 
authority with regard to the internal functioning of the 
agency. As the current law provides, the FAA Administrator 
would be appointed by the President, with the advice and 
consent of the Senate, for a fixed, 5-year term.
      Some authority previously transferred to the DOT under 
the Department of Transportation Act (P.L. 89-670) would be 
recommitted to the FAA under this section. The Administrator 
would be the final authority for: the promulgation of all FAA 
rules and regulations (except as otherwise specifically 
provided in the bill); and for any obligation, authority, 
function, or power addressed in the bill.
      This section enables the Administrator to delegate his or 
her functions, power, or duties to other FAA employees. 
Further, the Administrator would not need to seek the approval 
or advice of the DOT on any matter within the authority of the 
Administrator.
      Nevertheless, the FAA remains within the DOT, which would 
continue to provide general oversight of the agency as well as 
cooperate with the more autonomous FAA.
      This section also gives the Administrator some voice in 
the selection of the eight political appointees who serve under 
him or her. The President would consult closely with the 
Administrator when considering FAA appointments to ensure 
harmony and stability within the FAA's leadership.
      This section adds a definition of ``political appointee'' 
to the statute. This section also preserves all authority 
vested in the Administrator (by delegation or by statute) prior 
to enactment of the bill. Nothing in this bill is meant to take 
anything away from any of the current powers, duties, or 
authority resting with the FAA or its Administrator.
      Section 624 affirms the Administrator's authority to 
issue, rescind and revise such regulations as necessary to 
carry out the functions of the FAA. The Administrator would be 
required to act upon a petition for rulemaking within six 
months by dismissing the petition, by informing the petitioner 
of an intention to dismiss, or by issuing a notice of proposed 
rulemaking (NPRM) or advance notice of proposed rulemaking 
(ANPRM).
      This section also requires the Administrator to issue a 
final regulation, or take other final actions, on an NPRM 
within 18 months of the date it is published in the Federal 
Register (or within 24 months in the case of an ANPRM).
      Under this section, the DOT's authority to review FAA 
rules is limited. In specified, limited circumstances, the FAA 
could not issue certain regulations without the prior approval 
by the DOT. The DOT Secretary would have 45 days to review, for 
approval or disapproval, any FAA regulation likely to result in 
an annual, aggregate cost of $50 million or more to state, 
local, and tribal governments, or to the private sector. The 
DOT Secretary would also have 45 days to review ``significant'' 
regulations, which are rules that, in the judgment of the 
Administrator (in consultation with the Secretary, as 
appropriate), are likely to: have an annual effect on the 
economy of $100 million or adversely affect in a material way 
other parts of the society; be inconsistent or otherwise 
interfere with an action taken or planned by another agency; 
materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of 
recipients thereof; or raise novel legal or policy issues 
arising out of legal mandates.
      This section also provides that in an emergency, the 
Administrator may issue regulations that require DOT approval 
without obtaining such prior approval. Such regulations, 
however, are subject to DOT ratification, and would be 
rescinded within 5 business days without such ratification. 
Under this section, the Administrator also would issue non-
significant regulations or other actions that are routine, 
frequent or procedural in nature, without review or approval by 
the DOT. Examples of routine of frequent actions that are non-
significant include standard instrument approach procedure 
regulations, en route altitude regulations, most airspace 
actions, and airworthiness directives. The DOT also would not 
be authorized to review ``rules of particular applicability,'' 
such as exemptions, operations specifications, and special 
conditions, all of which apply to one individual or entity, 
unless such exemptions met the definition of significant in 
this section.
      Finally, this section requires the FAA (three years after 
the bill is enacted) to review ``unusually burdensome'' 
regulations that are at least three years old. ``Unusually 
burdensome'' regulations are defined as those that result in 
the annual, aggregate expenditure of $25 million or more by 
State, local, and tribal governments, or by the private sector. 
Such regulations are to be reviewed to determine: the accuracy 
of the original cost assumptions; the overall benefit of the 
regulations; and the need to continue such regulations in their 
present form. This section also provides that the Administrator 
may review immediately any three-year-old regulation in force 
prior to enactment of the bill.
      Section 625: Provides that the Administrator may appoint 
and fix the compensation of necessary employees and officers of 
FAA. This section also provides that, in fixing the 
compensation and benefits of employees, the Administrator may 
not engage in any type of bargaining, except as provided for 
under section 653 of the bill. Further, this section provides 
that the Administrator shall not be bound by any requirement to 
establish compensation or benefits at particular levels. This 
section also provides other personnel authority to the 
Administrator, including, for example, the authority to hire 
experts and consultants and to use the services of personnel 
from any other Federal agency.
      This section also provides that officers and employees 
shall be appointed in accordance with civil service laws and 
compensated in accordance with title 5, United States Code, 
except as otherwise provided by law.
      Section 626: Provides broad, general authority for the 
Administrator to enter into contracts, leases, cooperative 
agreements, and other transactions, as necessary to carry out 
the functions of the FAA.
      Section 627: Provides the Administrator with authority to 
use or accept, with or without reimbursement, services, 
equipment, personnel, and facilities of any other Federal 
agency or public or private entity. Such acceptance would not 
constitute an agumentation of the Administration's budget. 
Heads of other Federal agencies would be asked to cooperate 
with the Administrator.
      Section 628: Provides broad authority to the 
Administrator to acquire, construct, improve, repair, operate, 
and maintain air traffic control and research facilities and 
equipment, as well as other real and personal property to 
others.
      Section 629: Permits the Administrator to accept the 
transfer of unobligated balances and unexpended funds from 
other agencies to carry out functions assigned to FAA by this 
or other Acts.
      Section 630: Establishes a 15-member Federal Aviation 
Management Advisory Council (MAC) to provide the Administrator 
with input from the aviation industry and community. The MAC 
would be comprised of one designee each of the Secretaries of 
Transportation and Defense and representatives from various 
segments of the aviation community who would be appointed by 
the President with the advice and consent of the Senate. 
Members of the MAC should be selected from among individuals 
who are experts in disciplines relevant to the aviation 
community and who are collectively able to represent a balanced 
view of the issues before the FAA. The MAC members also should 
not be selected based on political or partisan considerations.
      This section would subject MAC members to criminal 
penalties for unauthorized disclosure of commercial or other 
proprietary information.
Conference substitute
      Senate provision: The managers recognize that to provide 
reform of the FAA, additional autonomy in decision-making in a 
number of areas is needed. For this reason, the managers agreed 
to give the FAA authority in the regulatory, personnel, and 
procurement areas. This change should result in a new way of 
doing business for the FAA, with less oversight by DOT.

                     60. Aircraft Engine Standards

House bill
      No provision.
Senate amendment
      Section 631: Requires the Environmental Protection Agency 
(EPA) to consult with FAA on aircraft emission standards. Also, 
EPA shall not change the emission standards if it would 
significantly increase noise and adversely affect safety. FAA 
should allow EPA to participate in advisory committees when 
appropriate.
Conference substitute
      Section 406: Senate provision.

                        61. Rural Air Fare Study

House bill
      No provision.
Senate amendment
      Section 632: Requires DOT to conduct a study of rural air 
fares, and to provide a report to the Commerce Committee within 
60 days after enactment of this bill. The study would encompass 
an analysis of the types of air service provided to rural 
communities as well as competitive aspects of such air service.
Conference substitute
      Section 1213: Senate, but Transportation and 
Infrastructure Committee added as a recipient of the report.

                            62. Procurement

House bill
      No provision.
Senate amendment
      Sections 651, 652:
      Not later than April 1, 1999 the FAA must employ outside 
experts to provide an independent evaluation of the 
effectiveness of its acquisition system. The FY 1996 DOT 
Appropriations bill (P.L. 104-50) gave the FAA authority to 
implement new procurement and personnel systems as of April 1, 
1996.
      Section 652 establishes a safeguard, built into the 
procurement system, that would require the FAA to terminate 
facilities and equipment programs that are 50 percent or more: 
(1) over cost, (2) below performance goals, or (3) behind 
schedule. The Administrator could waive the termination 
requirement if a termination would be inconsistent with the 
safe and efficient operation of the national air transportation 
system. Also, the FAA would be required to consider terminating 
any program that is 10 percent or more: (1) over cost, (2) 
below performance goals, or (3) behind schedule.
      Specific exceptions to termination are allowed.
Conference substitute
      Senate provision.

                             63. Personnel

House bill
      No provision.
Senate amendment
      Section 653:
      Directs the Administrator, in developing and making 
changes to the new personnel system, to consult with FAA 
employees and negotiate with the exclusive bargaining 
representatives of employees. If the Administrator fails to 
reach agreement with such bargaining units, the parties will 
engage the services of the Federal Mediation and Conciliation 
Service. If agreement is not reached following such mediation, 
proposed changes to the personnel system shall not take effect 
until 60 days have elapsed after the Administrator has 
submitted the proposed change, any objections of the exclusive 
bargaining representatives, and the reasons for such 
objections, to the Congress. In negotiating changes to the 
personnel system, the Administrator and the exclusive 
bargaining representatives would be required to use every 
reasonable effort to find cost savings and to increase 
productivity within each of the affected bargaining units, as 
well as within the FAA as a whole. Nothing in this bill, 
therefore, prohibits the exclusive bargaining representatives 
from assisting in identifying cost savings in the procurement 
system as well as the new personnel system.
      Three years after the personnel management system is 
implemented, outside experts should be employed by the 
Administration to evaluate the program's effectiveness.
      Until July 1, 1999, basic wages should not be 
involuntarily adversely affected by this section, except for 
unacceptable performance, or by a reduction in force, or by a 
reorganization.
      Except as otherwise provided by Section 653, all labor-
management agreements that are in effect at the time of passage 
shall remain in effect until their normal expiration, unless 
otherwise agreed to.
Conference substitute
      Senate provision.

                            64. faa funding

House bill
      No provision.
Senate amendment
      Sections 671, 672:
      Section 671 sets forth fourteen findings establishing the 
general basis for the provisions related to FAA funding. These 
findings concern the important services provided by the FAA in 
a variety of critical areas that benefit the users of the air 
transportation system.
      Section 672 sets forth seven critical purposes underlying 
the enactment of Title VI of the bill. Those purposes include 
providing a financial structure for the FAA that would enable 
it to support the future growth in the national aviation, ATC, 
and airport system. The third purpose, which is to ensure that 
any funding would be dedicated solely for the use of the FAA, 
is in reference to the user fees authorized under section 673.
Conference substitute
      Senate provision.

                                65. fees

House bill
      Section 413: This section authorizes FAA to impose fees, 
up to $30 million per year, on aircraft that overfly the U.S. 
but do not land here. The aggregate annual amount of these fees 
should not exceed the aggregate annual direct costs incurred by 
the FAA in providing air traffic services to such flights. 
Further, the user fee imposed on any flight should be based on 
the FAA's actual cost of service.
Senate amendment
      Section 673: Directs FAA to impose fees, up to $100 
million per year, on (1) aircraft that overfly the U.S. but do 
not land, (2) services provided to foreign governments (other 
than air traffic control services). The fees shall be based on 
the direct total cost of providing the service. FAA shall 
publish an initial fee schedule subject to public comment. 
Nongovernmental experts may be used to develop fees. Repeals 
section 70118. S. 1194 permitted the FAA to base its fee system 
on total costs or value. Value was deleted during debate on the 
bill.
Conference substitute
      Section 273: Senate provision except the repeal of 
section 70118 is deleted and clarification is provided as to 
the method of setting user fees. The user fee imposed on any 
flight must be based on the FAA's actual cost of service and 
not on any non-cost based determination of the ``value'' of the 
service provided. Further, assuming similar costs of serving 
different carrier and aircraft types, the user fee may not vary 
based on factors such as aircraft seating capacity or revenues 
derived from passenger fares.

                          66. study commission

House bill
      Section 205: Establishes National Civil Aviation Review 
Commission to study safety, airport capital needs and ways to 
meet those needs, and FAA operational needs and ways to meet 
those needs. Appointments made by DOT and relevant 
Congressional Committees. DOT cannot appoint current aviation 
employees. Independent audit of FAA financial requirements. GAO 
assessment of airport needs. Final report due in 1 year.
Senate amendment
      Section 674:
      This section requires the DOT to contract with an outside 
entity to conduct a comprehensive FAA needs and cost allocation 
assessment of the financial requirements of the FAA through 
2002. The assessment must be completed within 90 days of the 
contract being awarded. The DOT should establish an 11-member 
task force within 30 days with people who have expertise in 
aviation, represent a balanced view of different aviation 
interests and include one member who knows the Congressional 
budget process. The task force submits a report to DOT based on 
the assessment by the outside entity. DOT submits a report to 
Congress within one year.
      This section also requires that, within 120 days, GAO 
must conduct an assessment of the manner in which costs for ATC 
services are allocated between the FAA and the DOD.
Conference substitute
      Section 274:
      Senate provision except that the Senate's 11 member task 
force is renamed the Commission in the House bill and expanded 
to 21 members, 13 appointed by the Secretary, 2 appointed by 
the House Republican leadership, 2 appointed by the House 
Democrat leadership, and 2 by the Senate majority leader and 2 
by the minority leader of the Senate. The Commission is divided 
into 2 task forces, one dealing with the safety issues in the 
House bill and the other with the funding issues in the Senate 
bill. It also includes the GAO assessment of airport needs from 
the House bill.
      The purpose of this assessment is to determine 
independently what the financial needs of the FAA will be in 
the short- and long-term. The assessment also must include a 
cost allocation analysis detailing which segments of the 
aviation community are driving the various costs imposed on the 
FAA. Costs attributed to users should reflect the full range of 
FAA expenditures and activities associated directly or 
indirectly with a particular aviation segment, including, for 
example, costs of airport infrastructure financed in whole or 
in part by the FAA. This assessment is urgently needed by the 
task force, Congress, and the aviation community so proper 
evaluation of the FAA's financial picture can be done using a 
single, objective set of numbers and assumptions.
      The recommendations of the task force may include a 
variety of possibilities, such as alternate funding proposals, 
taking the trust fund off budget, user fee system proposals, 
modifications to the aviation excise tax system, a combination 
of excise taxes and user fees, and means of meeting airport 
infrastructure needs. The task force also shall consider a 
limited, innovative program for airport-related funding 
mechanisms. For each recommendation, the task force must assess 
the impact on safety, administrative costs, the Congressional 
budget process, industry economics, the ability of the FAA to 
use sums collected, and the needs of the FAA. The report should 
detail various options, with the benefits and impacts of each.
      The conferees believe the assessment must contain an 
analysis of current and future spending of the entire FAA, 
including airport capital needs. A major premise of this 
legislation is that old assumptions and old ways of doing 
business must be re-evaluated and updated. This includes an 
independent assessment of the FAA's needs and the nation's 
airport capital needs to ensure that capacity is able to meet 
demand. As a result, the task force, Congress and the FAA must 
be in a position to determine which projects expand capacity 
and enhance the safety and security of the national air 
transportation system.
      The assessment should provide assistance to Congress as 
to appropriate reforms, which will allow the FAA and airports 
to more efficiently utilize and maximize Airport Improvement 
Program (AIP) dollars for necessary capacity, safety, and 
security.
      The conferees agree that the task force in identifying 
the needs and associated costs of the FAA task force should use 
as a baseline not less than the FY 1997 appropriated levels 
including the supplemental amounts. Following recent accidents 
and a 90-day review conducted by the FAA that found that 
additional staffing needs have been identified, the conferees 
agree that the task force recommendations should fully meet 
these and any other security and safety requirements or other 
unmet and underfunded needs.
      The conference agreement includes the provisions of the 
House bill which would establish an aviation safety task force. 
Under the terms of the conference agreement, this safety task 
force shall be formed by the membership of the National Civil 
Aviation Review Commission. The safety task force should submit 
a report to the FAA which sets forth a comprehensive analysis 
of aviation safety.
      The conferees recognize that at this time, the Vice 
President is leading a similar study of aviation safety with 
the White House Commission on Aviation Safety and Security. It 
should be noted that the safety study required under the bill 
is not intended to duplicate the Gore Commission. Rather, it is 
intended and anticipated that the safety study in this bill 
will build on the experience and recommendations of the Gore 
Commission.

                   67. procedure for considering fees

House bill
      No provision.
Senate amendment
      Section 675 sets forth expedited procedures.
Conference substitute
      Section 275: Expedited procedures apply only to the 
Senate.

                    68. budgetary treatment of fees

House bill
      No provision.
Senate amendment
      Section 676 creates a separate, dedicated account 
(established in the Treasury) for all new fees and other 
receipts (except for those associated with the Aviation 
Insurance Program) collected by the FAA. The receipts and 
disbursements of this account would be awardable immediately 
for expenditures of Congressionally authorized programs and 
shall remain available until expended.
      Annually, the Administrator shall submit a Report on the 
fees including a list of fees, the activities supported by 
fees, and any proposed disposition of surplus fees.
      This section also requires the FAA to develop a cost 
accounting system.
      This section also provides that when an air carrier is 
required by the Administrator, pursuant to this legislation, to 
collect a fee imposed on a third party by the FAA, the 
Administrator shall ensure that such air carrier may collect 
from such third party an additional uniform amount reflecting 
necessary and reasonable expenses (net of interest) incurred in 
collecting and handling the fee.
      Section 676(a)(7) requires that the Administrator provide 
to the Congress, prior to the submission of any proposed user 
fee or excise tax schedule, a report justifying the need for 
the proposed user fees or taxes and including other specified 
information such as steps the Administrator has taken to reduce 
costs and improve efficiency within FAA.
Conference substitute
      Section 276: Senate except drop section 676(a)(7) of 
Senate amendment.

                       69. Essential Air Service

House bill
      No provision.
Senate amendment
      Section 678: Authority to administer and operate the EAS 
program would be transferred from the DOT Secretary to the 
Administrator. The program would be established at a $50 
million level, with authority of the program to be funded by 
user fees collected under this legislation, including those 
specifically derived from overflights. At the end of each 
fiscal year, if less than $50 million has been obligated for 
EAS programs, the Administrator shall make those remaining 
amounts available under the Airport Improvement Program for 
grants to rural airports to improve rural air safety. This 
section also, in effect, repeals a provision in the current law 
sunsetting the EAS program.
Conference substitute
      Section 278: Senate provision except the transfer of the 
EAS program from DOT to FAA is eliminated. EAS funding for '97 
is equal to the amount appropriated plus any user fee revenue 
above $75 million that is collected pursuant to Section 
45301(a)(1).

              70. multi-year authorization & appropriation

House bill
      Authorizes AIP, F&E;, and Operations for 3 years.
Senate amendment
      Section 677: Prescribes a 3-year authorization & 
appropriation cycle for Trust Fund programs.
Conference substitute
      Section 277: Senate provision, but starting in 1999.

                   71. study of funding for security

House bill
      No provision.
Senate amendment
      Section 301: 30-day FAA study of transferring security 
responsibilities from airlines to airports or to the 
government. Also includes certification of screening companies.
Conference substitute
      Sections 301 and 302: Senate provision, but change to a 
90-day study done in cooperation with other appropriate 
officials. Make screening certification a separate section.

       72. assistance to families involved in airlines accidents

House bill
      H.R. 3923 (Report 104-793) which passed the House on 
September 18, 1996, directs NTSB to take action to help 
families including designating a liaison and an independent 
organization and obtaining passenger lists. Also directs 
airlines to submit plans, establishes a task force to study 
further improvements, and prohibits unsolicited lawyer contact.
Senate bill
      Requires NTSB to establish a program to provide family 
advocacy services, work with airlines to procure services of 
family advocates. Guidelines must be issued in 90 days.
Conference substitute
      Title VII:
      House bill with the following changes:
            The list of parties that are prohibited from making 
        unsolicited communications with family members or 
        injured victims is expanded to include potential 
        adverse parties to the litigation.
            ``within the control of the air carrier'' is added 
        to the requirement that air carriers assure that the 
        family of each passenger will be consulted about the 
        disposition of all remains and personal effects of the 
        passenger.
            The model plan is changed to guidelines to make 
        clear that it is intended to serve as guidance for 
        airlines developing plans and not as a precursor to 
        requiring airlines to revise existing plans that may be 
        perfectly sound.
            The Task Force developing the guidelines for air 
        carriers is also asked to study the implications for 
        personal privacy if air carriers were required to 
        notify passengers more quickly. The concern is that 
        such a requirement may entail an airline requesting 
        more information from passengers than many people may 
        consider appropriate.

                     73. safety data classification

House bill
      No provision.
Senate amendment
      Section 303: NTSB must develop system for classifying 
accidents within 90 days. Provision for public comment, report 
to Congress, and presentation to ICAO.
      Also requires FAA to give high priority to deploying 
safety performance analysis system.
Conference substitute
      Section 407: Senate amendment with revised language.
      The Managers are interested in having accurate 
statistical information available to the public with regard to 
aviation accidents. Currently, accident information can be 
misleading in that certain occurrences are categorized as 
accidents that do not fit the public perception of an aviation 
accident. It is important that the public understand the 
aviation accident data it receives so that informed decisions 
can be made on the basis of that data. This legislation 
requires the National Transportation Safety Board to amend its 
categorization of aviation accidents to make the information 
more user friendly. After public comment, the NTSB is required 
to publish, on a periodic basis, aviation accident data, as 
recategorized. The Managers believe the accident data should be 
published on a timely basis and made widely available to the 
general public so that informed decisions can be made by the 
traveling public. Dissemination through the NTSB's web page 
would be one means of widely distributing the information.

               74. weapons and explosive detection study

House bill
      No provision.
Senate amendment
      National Academy of Science study of systems to detect 
weapons and explosives.
Conference substitute
      Section 303: Senate provision with the addition of 
hardened containers as an additional factor to be studied.

 75. Interim Deployment of Commercially Available Explosive Detection 
                               Equipment

House bill
      Section 101 of H.R. 3953 which passed the House on August 
2, 1996, directs FAA to facilitate the deployment of 
commercially available explosive detection system while waiting 
for the certified system.
Senate bill
      Section 306: Similar provision but also gives FAA waiver 
authority.
Conference substitute
      Section 305: Senate provision.

                     76. audit of background checks

House bill
      Section 103 of H.R. 3953 directs FAA to audit the 
criminal history records checks.
Senate bill
      Section 307 directs FAA to audit effectiveness of 
criminal history record checks.
Conference substitute
      Section 306: Senate provision.

                        77. passenger profiling

House bill
      Section 105 of H.R. 3953 directs FAA, DOT, intelligence 
community, and law enforcement community to continue to assist 
airlines in developing computer-assisted passenger profiling.
Senate bill
      Section 308: Sense of Senate directing FAA to assist 
airlines in developing computer-assisted profiling and other 
appropriate passenger profiling programs to be used in 
conjunction with other security measures.
Conference substitute
      Section 307: House provision with ``other appropriate 
measures'' language from Senate.

                  78. use of aip and pfc for security

House bill
      Section 106 of H.R. 3953 permits AIP and PFC funds to be 
used for safety and security programs at airports.
Senate bill
      Section 309 is the same.
Conference substitute
      Section 308: House and Senate provisions.

                     79. security liaison agreement

House bill
      No provision.
Senate amendment
      Section 310: Directs FAA and FBI to establish liaison 
near high risk airports.
Conference substitute
      Section 309: Senate provision.

                         80. threat assessment

House bill
      No provision.
Senate amendment
      Section 311 directs FAA and FBI to carry out threat 
assessments at high risk airports.
Conference substitute
      Section 310: Senate but insert ``each'' before 
``airports''.

                           81. baggage match

House bill
      No provision.
Senate amendment
      Section 312: Requires the FAA to report within 30 days on 
the domestic baggage match program recommended by the Gore 
Commission. Sense of Senate that FAA should work with airlines 
& airports on feasible, effective bag match.
Conference substitute
      Section 311: Senate provision but require only if baggage 
match program is actually carried out. This is intended to 
remove any implication that this provision is designed to 
mandate such a baggage match program. Includes sense of Senate.

                     82. enhanced security programs

House bill
      No provision.
Senate amendment
      Section 313: Requires airlines and airports to 
periodically assess their security. The FAA must periodically 
audit these assessments and make unannounced and anonymous 
inspections and tests of security systems.
Conference substitute
      Section 312: Senate provision.

                             83. air cargo

House bill
      Section 107 of H.R. 3953 lists 3 items relating to air 
cargo for FAA to study.
Senate bill
      Section 314: Requires DOT to report on changes 
recommended by the Gore Commission with respect to air cargo.
      Sense of the Senate that inspection of cargo, mail, and 
company shipped material can be enhanced.
Conference substitute
      Section 313:
      Senate bill except FAA is directed to do study and the 3 
items from the House bill are incorporated.
      Includes Sense of the Senate.

                       84. supplemental screening

House bill
      Section 109 of H.R. 3953 directs FAA to consider using 
bomb sniffing dogs to supplement existing bomb detection 
systems. Section 110 authorizes Trust Fund spending for 
training and evaluation of K-9 teams at 50 largest airports.
Senate amendment
      No provision.
Conference substitute
      Added to section 305 (item 75) above by permitting the 
requirement to deploy commercially available explosive 
detection equipment to be met at airports by the deployment of 
dogs or other appropriate animals to supplement equipment for 
screening passengers, baggage, mail, or cargo for explosives or 
weapons.

                       85. carriage of candidates

House bill
      No provision.
Senate amendment
      Section 408 states that the same rules must apply to 
carriage of candidates in Federal and State elections.
Conference substitute
      Section 1214: Senate provision.

                     86. Train Whistle Requirements

House bill
      No provision.
Senate amendment
      Section 409: Prohibits implementation of DOT rule 
requiring train whistles at grade crossings.
Conference substitute
      Section 1218: Senate provision with changes.
      The conferees, in adopting these changes to Section 20153 
of Title 49, United States Code, do not intend to require the 
Secretary to begin anew the current rulemaking already underway 
to implement this provision. Instead, the Secretary should 
incorporate the new additional criteria into his completion of 
the existing proceeding. Similarly, because the conference 
language retains the original focus of rules under Section 
20153 on categories of crossings, not individual crossings, the 
implementation of this provision should not be affected by 
references to individual crossings in the conference report 
accompanying the recently approved Department of Transportation 
appropriations legislation. Finally, the conferees urge the 
Secretary to consider in implementing the regulations, the 
impact of those regulations on the quality of life in affected 
communities.

                        87. Gambling on Vessels

House bill
      No provision.
Senate amendment
      Section 410 limits authority of states to regulate 
gambling on ships.
Conference substitute
      Section 1222: Senate provision.

                      88. Grand Canyon Rulemaking

House bill
      No provision.
Senate amendment
      Section 411 requires FAA to provide 30 additional days 
for comments.
Conference substitute
      Section 1215: Senate provision, but change to 45 days and 
include environmental assessment comment period.

 89. Fees for Services in Connection With Rail Maximum Rate Complaints

House bill
      No provision.
Senate amendment
      Section 412 prohibits the Surface Transportation Board 
from increasing these fees.
Conference substitute
      The conferees share the concern, reflected in the Senate 
provision, that the cost-based fees collected by the Surface 
Transportation Board pursuant to its existing Title 31 
authority should not impose an unfair burden on small shippers 
seeking redress before the Board through maximum-rate 
complaints. The protection reflected in the conference 
provision will prevent any such increases until the Congress 
has reauthorized the STB, which is required by the end of 
Fiscal Year 1998.

                            90. Hickory, nc

House bill
      No provision.
Senate amendment
      Section 413: Permits transfer of a control tower to 
Hickory, directs study of whether tower meets criteria of 
contract tower program, and prohibits closure of New Bern 
Flight Service Station unless FAA makes required certification.
Conference substitute
      Senate provision.

                      91. international terrorism

House bill
      No provision.
Senate amendment
      Section 414: Sense of Senate that state sponsored 
terrorism is an act of war.
Conference substitute
      Senate provision.

                       92. procurement contracts

House bill
      No provision
Senate amendment
      Section 415: Requires each grant recipient that awards a 
contract using more than $5 million in Federal funds to report 
to DOT on the number of bids and the amount by which the 
winning bid exceeded the lowest bid.
Conference substitute
      House.

              93. Employee retirement income security act

House bill
      No provision.
Senate amendment
      Section 416: Relates to limited scope audit.
Conference substitute
      House.

 94. advance electronic transmission of cargo and passenger information

House bill
      No provision.
Senate amendment
      Section 417: Requires airlines to provide the manifest in 
advance.
Conference substitute
      The Managers have receded to the House position. Senator 
Graham offered the provision in a desire to improve safety and 
security. The Managers are aware of the importance of the need 
for the Customs Service to work with the airlines to provide 
the highest levels of protection to the traveling public. The 
decision not to include the specific language should not be 
read to suggest a lack of agreement with the spirit and intent 
of the provision.

      95. technical corrections to the icc termination act of 1995

Conference substitute
      This provision corrects a technical error in the ICC 
Termination Act of 1995 (Public Law 104-88) (``ICCTA''). As 
part of the abolition of the former Interstate Commerce 
Commission and the reduction of economic regulation of 
railroads and trucking, the ICCTA included a number of 
conforming amendments to other statutes which had referred to 
the ICC. Among these conforming amendments were changes to the 
Railway Labor Act. The Railway Labor Act governs labor 
relations and collective bargaining in the airline and railroad 
industries; it does not apply to motor carriers.
      The ICCTA stated unequivocally that its enactment ``did 
not expand or contract coverage of employers or employees under 
the Railway Labor Act.'' 49 U.S.C. 10501(c)(3)(B). However, 
because of a drafting error, the ICCTA conforming provision 
(Section 322) removed the term ``express company'' from the 
railroad part of the Railway Labor Act. This could be 
interpreted as inconsistent with the clear bipartisan intent 
not to alter the boundaries of the Railway Labor Act in any 
way. Therefore, the technical amendment made by this section 
merely restores the exact legal standards for coverage under 
the Railway Labor Act that existed prior to enactment of the 
ICCTA. Otherwise, the current text of the law could cause 
needless confusion and punish both employers and employees who 
have relied upon the prior text and settled interpretation of 
the Railway Labor Act.

                From the Committee on Transportation and 
                Infrastructure, for consideration of the House 
                bill (except section 501) and the Senate 
                amendment (except section 1001), and 
                modifications committed to conference:
                                   Bud Shuster,
                                   Bill Clinger,
                                   John J. Duncan, Jr.,
                From the Committee on Transportation and 
                Infrastructure, for consideration of section 
                501 of the House bill and section 1001 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Bud Shuster,
                                   Bill Clinger,
                As additional conferees from the Committee on 
                Rules, for consideration of section 675 of the 
                Senate bill, and modifications committed to 
                conference:
                                   David Dreier,
                                   John Linder,
                As additional conferees from the Committee on 
                Science, for consideration of sections 601-05 
                of the House bill, and section 103 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Robert S. Walker,
                                   Connie Morella,
                As additional conferees from the Committee on 
                Science, for consideration of section 501 of 
                the Senate amendment and modifications 
                committed to conference:
                                   Robert S. Walker,
                                   F. James Sensenbrenner, Jr.,
                As additional conferees from the Committee on 
                Ways and Means, for consideration of section 
                501 of the House bill, and sections 417, 906, 
                and 1001 of the Senate amendment and 
                modifications committed to conference:
                                   Bill Archer,
                                   Phil Crane,
                                   Sam M. Gibbons,
                                 Managers on the Part of the House.

                                   Larry Pressler,
                                   Ted Stevens,
                                   John McCain,
                                   Fritz Hollings,
                                   Wendell H. Ford,
                                Managers on the Part of the Senate.