Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?
                                                        Calendar No. 29
-----------------------------------------------------------------------
106th Congress                                                   Report
1st Session                      SENATE                          106-9
_______________________________________________________________________




                   AIR TRANSPORTATION IMPROVEMENT ACT

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                 S. 82

                             together with

                            ADDITIONAL VIEWS




                 March 8, 1999.--Ordered to be printed

                               --------

                    U.S. GOVERNMENT PRINTING OFFICE                    
69-010                     WASHINGTON : 1999




       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                       one hundred sixth congress

                             first session

                     JOHN McCAIN, Arizona, Chairman

TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             JOHN D. ROCKEFELLER IV, West 
TRENT LOTT, Mississippi              Virginia
KAY BAILEY HUTCHISON, Texas          JOHN F. KERRY, Massachusetts
OLYMPIA SNOWE, Maine                 JOHN B. BREAUX, Louisiana
JOHN ASHCROFT, Missouri              RICHARD H. BRYAN, Nevada
BILL FRIST, Tennessee                BYRON L. DORGAN, North Dakota
SPENCER ABRAHAM, Michigan            RON WYDEN, Oregon
SAM BROWNBACK, Kansas                MAX CLELAND, Georgia

                       Mark Buse, Staff Director

                  Martha P. Allbright, General Counsel

     Ivan A. Schlager, Democratic Chief Counsel and Staff Director

                                  (ii)



                                                        Calendar No. 29

106th Congress                                                   Report
  1st Session                    SENATE                           106-9

=======================================================================



 
                   AIR TRANSPORTATION IMPROVEMENT ACT

                                _______
                                

                 March 8, 1999.--Ordered to be printed

                                _______


       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                          [To accompany S. 82]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 82), ``A Bill to authorize 
appropriations for the Federal Aviation Administration, and for 
other purposes'', having considered the same, reports favorably 
thereon with amendments and recommends that the bill (as 
amended) do pass.

                          Purpose of the Bill

    The purpose of the Air Transportation Improvement Act, S. 
82, as reported, is to provide a two-year authorization for the 
majority of the programs of the Federal Aviation Administration 
(FAA), including the Airport Improvement Program (AIP). The 
bill includes several provisions to improve aviation safety, 
security, and system capacity, to enhance competition and 
service in the aviation industry, and to address the effects of 
commercial air tour flights over national parks.
    The Research, Engineering and Development (RE&D;) programs 
have already been authorized for fiscal year (FY) 1999. The 
reauthorization for RE&D; for FY 2000 and beyond will be 
contained in separate legislation.

                          Background and Needs

    Titles I through IV of the bill reaffirm the commitment of 
the Committee to ensuring that the U.S. continues to have the 
safest and most efficient air transportation system in the 
world. They reauthorize for two years the major programmatic 
areas within the FAA, which are divided into operations, 
facilities and equipment (F&E;), research, engineering, and 
development (RE&D;), as well as the AIP. Title V addresses 
Committee concerns with the need to ensure that the airline 
industry remains competitive and that small communities receive 
air service. Title VI incorporates legislation to address air 
tour operations over our National Parks.

               FAA and AIP Reauthorization (Titles I-IV)

    The FAA is responsible for ensuring the safety, security, 
and efficiency of civil aviation, and for overseeing the 
development of a national system of airports. The AIP provides 
grants to fund the capital needs of the nation's commercial 
airports and general aviation facilities. Funding for most of 
the FAA, and all of the AIP, derives from the Airport and 
Airway Trust Fund (aviation trust fund), which was created by 
the Airport and Airway Development Act of 1970, primarily as a 
capital account to build our nation's aviation infrastructure. 
Over the years, the aviation trust fund has been used to a 
limited extent to fund the operations of the FAA (e.g., 
salaries for personnel). According to the Congressional Budget 
Office (CBO), the uncommitted trust fund balance will be $9.185 
billion by the end of fiscal year 1999, and the balance will 
grow even larger in the out years. The December 1998 CBO 
baseline projections, however, show a trust fund balance by the 
end of fiscal year 2003 of only $13.029 billion. This lower-
than-expected balance is the result of a change in the spend-
out rates from the trust fund, a change that was part of the 
1999 Omnibus Appropriations Act (P.L. 105-277). The percentage 
of trust fund revenues spent on the FAA's operations account 
was increased from 50 percent to 85 percent. The spend-out rate 
is expected to return to its historical levels in fiscal year 
2000.
    The broad range of critical safety activities the agency 
undertakes includes controlling air traffic across the entire 
United States, and over vast stretches of the airspace of 
neighboring countries and over the world's oceans. The agency 
is responsible for ensuring that pilots and aircraft mechanics 
are properly trained, developing technologies to detect 
potential security threats, monitoring the design and 
production of aircraft, and certifying and monitoring our 
nation's air carriers.
    It is important to note that legislation to reauthorize the 
AIP establishes contract authority for the program. Without the 
contract authority in place, the FAA cannot distribute airport 
grants, regardless of whether an AIP appropriation is in place.
    Recently, the fiscal year 1999 Omnibus Appropriations Act 
extended the AIP through March 31, 1999. The act established 
$1.205 billion in contract authority for the AIP for the first 
six months of fiscal year 1999. It set an obligation limitation 
of $975 million for the same six-month period. As long as the 
AIP authorization does not lapse at the end of March, the total 
fiscal year 1999 appropriation for the program will be $1.95 
billion.

             Airline Competition and Air Service (Title V)

    Over the last several years, there has been growing concern 
within the Committee over airline competition and service. The 
Committee has held numerous hearings, taking testimony from a 
wide variety of witnesses. The Committee members likewise have 
engaged in lengthy discussions on the impacts of deregulation 
on small communities, air fares, the ability to serve specific 
cities, and the impact of limitations on operations at four 
major airports. Aviation competition has become a key issue and 
an important policy goal, given rising air fares in certain 
markets, the relative lack of new low fare competition, and the 
announced alliances among the major air carriers.
    Network carriers, with numerous code-sharing relationships 
with smaller carriers, are able to aggregate traffic at large 
hubs, giving them the ability to increase frequencies to many 
communities that could not support point-to-point nonstop 
service. New entrant carriers generally have entered the medium 
and large markets, providing nonstop services different from 
the hub networks. Not all of these carriers have been 
successful over the years--new entrants have failed, as have 
carriers such as Eastern, Pan Am, and Braniff.
    Overall, according to analyses conducted by the Department 
of Transportation (DOT) and others, air fares have fallen since 
deregulation. The General Accounting Office (GAO) reported in 
October of 1996 that barriers exist that thwart the ability of 
carriers to provide new service at airports that are limited by 
slot constraints, and that market entry barriers, such as 
perimeter rules prohibiting flights at airports that exceed a 
certain distance, also impede competition and entry. DOT 
officials and academics supported these conclusions in 
testimony before the committee. The GAO noted that the DOT had 
not exercised its statutory authority provided for under the 
1994 FAA reauthorization legislation that gave the DOT the 
ability to grant exemptions from the High Density Rule that are 
in the public interest and if ``circumstances'' are 
``exceptional.'' Over the last several months, the DOT has 
granted slot exemption requests under the 1994 statute to 
provide more access to New York's LaGuardia and Chicago's 
O'Hare airports. The Committee believes that the DOT's actions 
to grant the exemptions will provide new access for communities 
to these airports, yet more needs to be done to ensure access 
for new entrant air carriers and small communities.
    The foregoing concerns prompted the Committee to take 
action in Title V of the bill to improve the state of 
competition in the airline industry.

            Air Tour Flights over National Parks (Title VI)

    Legislation (S. 268) was introduced in 1997 to curb the 
harmful effects of excessive aircraft overflights of national 
parks. In response, the Administration empaneled a National 
Parks Overflights Working Group to develop a plan for 
instituting flight restrictions over national parks. 
Environmentalists, general aviation and air tour industry 
representatives, and Native American representatives constitute 
the membership of the working group. The group produced a 
consensus proposal on overflights at the end of 1997, which 
includes a recommendation that the group endorse legislation 
that encapsulates the agreement.
    In cooperation with the Committee, as well as the House 
Transportation and Infrastructure Committee, air tour industry 
representatives, environmentalists, and Native American 
representatives were able to agree on a legislative package to 
embody the working group's consensus agreement. That consensus, 
with some slight modifications, is contained in Title VI of the 
bill.

                      Summary of Major Provisions

    As reported, S. 82 would authorize the operations, F&E;, and 
AIP accounts of the FAA for FY 1999 and FY 2000. The bill would 
make several substantive and technical amendments to the AIP. 
The bill also includes a variety of provisions to enhance and 
improve aviation system safety, security, efficiency and 
capacity.
    To promote competition and quality air service, the bill 
would do the following: establish a four-year program to 
facilitate the initiation and development of air service for 
small communities; require the DOT to review marketing 
practices of air carriers that may inhibit the availability of 
quality, affordable air transportation service to small and 
medium-sized communities; provide authority for slot exemptions 
at high density airports for nonstop regional jet service; 
provide 24 new daily slot exemptions at Ronald Reagan 
Washington National Airport within the 1,250-mile perimeter at 
the airport, 12 of which would be reserved for commuter 
aircraft service to small and medium-sized markets; provide 24 
new daily slot exemptions at Reagan National Airport for 
service beyond the perimeter; and require the DOT to issue 30 
slot exemptions at Chicago's O'Hare Airport.
    The national parks overflights provisions of the bill would 
require that commercial air tour operators, in order to conduct 
operations over a national park, must conduct the tours in 
accordance with the air tour management plan (ATMP) for that 
park. The FAA and the National Park Service (NPS) would work 
together to develop such plans for the conduct of commercial 
air tours over individual national parks. Commercial air tour 
operators would have to apply for authority to conduct 
operations over a park, and the FAA would prescribe operating 
conditions and limitations for each commercial air tour 
operator.

                          Legislative History

    On January 19, 1999, Chairman McCain and Senators Hollings, 
Lott, Rockefeller, Frist, Bryan, Wyden, Akaka, Gorton, and 
Akaka introduced S. 82, the Air Transportation Improvement Act, 
which was referred to the Committee. As introduced, S. 82 was 
nearly identical to the FAA reauthorization bill that was 
developed by the Committee in the 105th Congress (S. 2279, the 
Wendell H. Ford National Air Transportation System Improvement 
Act). Specifically, S. 82 was modeled after the version of S. 
2279 that was approved on the Senate floor on September 25, 
1998, by a vote of 92 to one. The differences between S. 2279 
and S. 82, as introduced, were technical or involved removal of 
provisions already enacted into law.
    On January 20, 1999, the Commerce Committee held a hearing 
on S. 82. Testimony was heard from representatives of the GAO, 
FAA, and DOT.
    On February 11, 1999, the Committee met in open executive 
session to consider S. 82, and amendments thereto. Chairman 
McCain and Senators Hollings, Gorton, and Rockefeller offered a 
managers amendment that provided a variety of technical and 
substantive amendments, and it was adopted by voice vote. The 
managers amendment included provisions that were sought by 
Senators Breaux (surplus Department of Defense aircraft), Bryan 
(parks overflights Lake Mead exemption), Burns (AIP eligibility 
for in-pavement lighting for runway incursion prevention), 
Gorton (marketing practices rulemaking not mandatory), Hollings 
and Rockefeller (deletion of foreign air carrier waiver of 
Stage 2 noise requirements; deletion of foreign ownership 
study; updating section on Flight Operations Quality Assurance; 
modification of FAA authority to collect fees for foreign 
services; FAA long-term capital leasing demonstration program; 
AIP eligibility for small airports where enplanements 
temporarily dip below 10,000), Rockefeller and Dorgan (increase 
in authorization for the small community grant program), 
Hutchison (letters of intent and Passenger Facility Charges 
(PFCs)), Inouye (PFC exemption for flights within Hawaii; Stage 
2 aircraft exemption for continental-U.S. repairs), Kerry 
(technical changes to whistleblower protections), Lott and 
Stevens (increase minimum airport AIP entitlement), McCain 
(deletion of provision on restoration of slots withdrawn for 
foreign air transportation), Snowe (study on breathing hoods; 
study on alternative power source for flight data recorders; 
additional protections for disabled passengers (with Senator 
Wyden)), Stevens (Alaska rural aviation improvement; cargo 
apportionment), and Wyden and Hollings (hazmat enforcement 
backlog).
    Chairman McCain and Senators Ashcroft and Bryan offered an 
amendment to add: (1) 12 slot exemptions at Reagan National 
Airport to the beyond-perimeter provision; (2) 12 slot 
exemptions within the perimeter with no restrictions on 
aircraft or airport size; and (3) a new criterion for beyond-
perimeter exemptions. The amendment was adopted by voice vote.

                            Estimated Costs

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, March 3, 1999.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 82, the Air 
Transportation Improvement Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The principal CBO staff contact for 
federal costs is Victoria Heid Hall. The staff contact for the 
private-sector impact is Jean Wooster, and the contact for the 
state and local impact is Lisa Cash Driskill.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               congressional budget office cost estimate

S. 82--Air Transportation Improvement Act

    Summary: S. 82 would authorize funding for programs of the 
Federal Aviation Administration (FAA), primarily for fiscal 
years 1999 and 2000. CBO estimates that appropriation of the 
authorized amounts would result in additional outlays totaling 
about $8.2 billion over the 1999-2004 period. Revenues would 
decline by $2 million over the six-year period
    Enacting S. 82 would also affect both direct spending and 
receipts; therefore, pay-as-you-go procedures would apply to 
the bill. First, the bill would provide an additional $3.7 
billion in contract authority for the airport improvement 
program (AIP). Providing this contract authority would have no 
impact on outlays from direct spending because AIP outlays are 
subject to appropriation action. Second, S. 82 would expand a 
pilot program that provides for the innovative use of airport 
improvement grants to finance airport projects. The Joint 
Committee on Taxation (JCT) expects that this provision would 
result in an increase in tax-exempt financing and a subsequent 
loss of federal revenue. JCT estimates that the revenue loss 
would be about $2 million over the 1999-2004 period and about 
$5 million over the 1999-2009 period.
    S. 82 contains an intergovernmental mandate as defined in 
the Unfunded Mandates Reform Act (UMRA). CBO estimates that the 
cost would total about $23 million annually and thus would not 
exceed the threshold established by that act ($50 million in 
1996, adjusted annually for inflation). Section 4 of UMRA 
excludes from the application of that act any legislative 
provisions that are necessary for the ratification or 
implementation of international treaty obligations. CBO has 
determined that section 304 of S. 82, which implements 
provisions of the Convention on International Civil Aviation, 
fits within that exclusion. Overall, the bill provides 
significant benefits to airports managed by state and local 
governments.
    S. 82 would impose private-sector mandates, as defined by 
UMRA, on owners of fixed-wing powered aircraft, air carriers, 
operators of commercial air tours, ticket agents, and owners 
and operators of cargo aircraft. The cost of these mandates 
would not exceed the annual threshold established by UMRA for 
private-sector mandates ($100 million in 1996, adjusted for 
inflation).
    Description of the bill's major provisions: Title I would 
authorize the appropriation of about $15.7 billion for FAA 
operations, facilities, and equipment for fiscal years 1999 and 
2000. To date, about $7.7 billion has been appropriated in 
fiscal year 1999 for those programs. The bill would authorize 
an additional $66 million for 1999 and about $8.9 billion for 
2000.
    Title I would also reauthorize funding for the FAA's 
airport improvement program, and would authorize the 
appropriation of about $9 million per year for 1999 through 
2001 for a university consortium program. Title II would expand 
a pilot program that provides for the innovative use of airport 
improvement grants to finance airport projects.
    Title III would extend the authorization for the aviation 
insurance program to December 31, 2003. It also would prohibit 
the FAA from charging fees for certain services.
    Title IV would authorize the appropriation of such sums as 
may be necessary for the Secretary of Commerce to fund 
international promotional activities conducted by the United 
States National Tourism Organization (USNTO). It also would 
authorize the appropriation of $6 million for the improvement 
of rural aviation in Alaska.
    In addition, Title IV would authorize the appropriation of 
such sums as may be necessary to develop the Wide Area 
Augmentation System (WAAS) plan and to obtain contractual audit 
services to complete a report on FAA's costs and the allocation 
of such costs among different FAA services and activities.
    Title IV would provide whistleblower protection for 
employees of air carriers or contractors for air carriers who 
notify authorities that their employer is violating a federal 
law relating to air carrier safety. The bill would set up a 
complaint and investigation process within the Department of 
Labor (DOL). In addition, the bill would establish civil 
penalties for individuals who interfere with or jeopardize the 
safety of the cabin crew or other passengers. Title IV also 
would establish an oversight committee to advise the FAA on 
ways to improve the training of flight crews and to develop a 
test program to improve nonprecision landing approaches for 
aircraft.
    Title V would establish a four-year pilot program to 
improve access to airport facilities. This program would 
provide financial and technical assistance to up to 40 
communities. The bill would authorize the appropriation of $80 
million for the four-year period beginning in 2000.
    Title V also would direct the Secretary of Transportation 
to study and report on federal loan guarantees for the purchase 
of regional jets and on options for federal financial 
assistance. It would, in addition, require the General 
Accounting Office to complete a study of the national airport 
network, including rural air transportation.
    Title IV would make clear that the FAA has the authority to 
regulate aircraft overflights affecting public and tribal 
lands, and would establish a process for the FAA and the 
National Park Service (NPS) to coordinate the development and 
implementation of such regulations. Regulations governing 
overflights of national parks will likely be imposed under 
current law, but enacting Title VI would speed up that 
implementation. Title VI also would prohibit commercial air 
tours over the Rocky Mountain National Park.
    Finally, S. 82 would require the Secretary of 
Transportation and the Administrator of the FAA to complete 
numerous studies, issue guidelines and rules, and publish 
various reports.
    Estimated cost to the Federal Government: CBO estimates 
that implementing S. 82 would result in additional outlays of 
about $8.2 billion over the 1999-2004 period and a net loss of 
federal revenues of about $2 million over the same period. The 
estimated budgetary impact of S. 82 is shown in the following 
table. The costs of this legislation fall almost entirely 
within budget function 400 (transportation).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal years, in millions of dollars--
                                                           -----------------------------------------------------
                                                              1999     2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
 
FAA Spending Under Current Law:
    Budget Authority 1, 2.................................    7,654        0        0        0        0        0
    Estimated Outlays.....................................    9,227    3,458    1,347      512      166       78
Proposed Changes:
    Estimated Authorization Level.........................       75    8,090       29       20       20       20
    Estimated Outlays.....................................       66    5,902    1,549      476      218       20
Total FAA Spending Under S. 82:
    Estimated Authorization Level 1, 2....................    7,729    8,090       29       20       20       20
    Estimated Outlays.....................................    9,293    9,360    2,896      988      384       98
 
                                                 DIRECT SPENDING
 
Baseline Contract Authority for AIP Under Current Law:
    Budget Authority \2\..................................    2,410    2,410    2,410    2,410    2,410    2,410
Proposed Changes:
    Budget Authority......................................        0       65        0        0        0        0
Baseline Contract Authority for AIP Under S. 82:
    Budget Authority \2\..................................    2,410    2,475    2,410    2,410    2,410    2,410
 
                                               CHANGES IN REVENUES

Estimated Revenues........................................        0    (\3\)    (\3\)    (\3\)       -1       -1
----------------------------------------------------------------------------------------------------------------
\1\ The 1999 level is the amount appropriated for that year.
\2\ Budget authority for the airport improvement program is provided in contract authority, a mandatory form of
  budget authority, however, outlays from AIP contract authority are subject to obligation limitations contained
  in appropriation acts and are therefore discretionary. CBO's baseline projections assume that a full year of
  budget authority will be provided for AIP for fiscal year 1999 and for subsequent years. The full-year total
  is double the half-year amount of $1,205 million provided thus far for 1999. Other direct spending effects
  would be insignificant.
\3\ A revenue loss of less than $500,000.

    Basis of estimate: Implementing S. 82 would affect spending 
subject to appropriation, direct spending, and revenues. 
Estimates of outlays are based on historical spending patterns 
for the affected programs and on information provided by DOT 
and FAA staff.

Spending subject to appropriation

    The current authorization for several FAA programs expires 
on March 31, 1999. For purposes of this estimate, CBO assumes 
that S. 82 will be enacted by that date and that the amounts 
authorized for aviation programs will be appropriated for each 
fiscal year, including a supplemental appropriation for 1999.
    S. 82 would authorize the appropriation of a total of 
$11,415 million for FAA operations in fiscal years 1999 and 
2000. The Omnibus Consolidated and Emergency Supplemental 
Appropriations Act for fiscal year 1999 (Public Law 105-277) 
provided $5,567 million in budget authority for FAA operations. 
S. 82 would authorize the appropriation of an additional $64 
million in fiscal year 1999 and $5,784 million in fiscal year 
2000 for FAA operations.
    The bill would also authorize the appropriation of a total 
of $4,278 million for air navigation facilities and equipment 
in fiscal years 1999 and 2000. Public Law 105-277 provided 
$2,087 million in budget authority for air navigation 
facilities and equipment for fiscal year 1999. S. 82 would 
authorize the appropriation of an additional $2 million in 
fiscal year 1999 and $2,189 million in fiscal year 2000 for 
those purposes.
    The bill would establish a program to expand commercial air 
service to small communities. This program would provide 
financial and technical assistance to up to 40 communities over 
four years. Section 504 would authorize the appropriation of 
$80 million for the four-year period beginning with fiscal year 
2000. Assuming appropriation of the authorized amount, CBO 
estimates that outlays would total $68 million over the 2000-
2004 period.
    Section 422 would authorize the appropriation of such sums 
as may be necessary for the Secretary of Commerce to fund 
international promotional activities conducted by USNTO. Based 
on appropriations provided to the U.S. Travel and Tourism 
Administration for fiscal years 1993-1996, CBO estimates that 
administering these activities through USNTO would require 
appropriations of about $15 million a year starting in fiscal 
year 2000. Assuming theannual appropriation of that amount, we 
estimate that outlays would be about $65 million over the 2000-2004 
period.
    Section 101 would authorize the appropriation of about $9 
million a year for fiscal years 1999 through 2001 to support a 
university consortium to provide an air safety and security 
management certificate program. Assuming the appropriation of 
the authorized amount, CBO estimates outlays of $27 million 
over the 1999-2004 period.
    Section 503 would authorize such sums as may be necessary 
to establish an air traffic control service pilot program. The 
Secretary of Transportation would be directed to contract for 
air traffic control services at 20 facilities not eligible to 
participate in the Federal Contract Tower Program. This section 
also would allow up to three facilities in the pilot program to 
participate in cost sharing with the federal government to 
construct air traffic control towers. Based on information from 
FAA, we estimate that implementing this section would cost 
about $26 million over the 2000-2004 period, subject to 
appropriation action.
    Section 412 would direct FAA to install closed circuit 
weather surveillance equipment at not fewer than 15 rural 
airports in Alaska, and to implement a near-real time weather 
observation and reporting program in the state. This section 
also would authorize funding for runway lighting and weather 
reporting systems at remote airports in Alaska. Section 412 
would authorize the appropriation of a total of $6 million for 
these activities in Alaska. CBO estimates that these funds 
would be spent at the rate of $1 million to $2 million a year 
over the 2000-2003 period.
    Section 410 would authorize such sums as may be necessary 
to develop a Wide Area Augmentation System plan and to obtain 
contractual audit services to complete the Inspector General's 
report on the FAA's costs and cost allocations. Information 
from the FAA indicates that many of the requirements for the 
WAAS plan have already been completed. CBO estimates that this 
provision would not result in any significant additional costs. 
Based on information from DOT's Office of Inspector General, 
CBO estimates that the cost of the contractual services to 
complete the audit would be less than $1 million in fiscal year 
2000.
    Based on the current costs of operating a whistleblower 
protection program at the Department of Energy, CBO estimates 
that the administration costs of operating the new DOL program 
would be less than $1 million a year.
    Based on information from the NPS and the FAA, CBO 
estimates that discretionary outlays to conduct planning and 
rulemaking for park overflights, complete air tour management 
plans (including environmental analyses), and monitor any 
overflight limits established in such plans would total about 
$29 million over the 1999-2009 period. This process is already 
under way, and we expect that these costs will be incurred 
within the next 10 years under current law, assuming 
appropriation of the estimated amounts. Title VI would require 
the NPS and the FAA to complete the air tour management plans 
(ATMPs) within three years of enactment. Therefore, enacting 
Title VI could increase discretionary outlays in the short term 
if the agencies completed these plans more quickly than they 
would under current law. If so, and if those plans limited 
overflights, the FAA would begin incurring monitoring costs 
sooner, thereby increasing total monitoring costs. However, CBO 
estimates that the provisions dealing with park overflights 
would cause no significant change in FAA or NPS spending over 
the next five years. We estimate that operating the joint 
advisory group would cost the agencies a total of about $25,000 
each year. Any such spending would be subject to appropriation 
action.
    S. 82 contains several additional provisions that would 
require FAA to conduct studies, complete reports, issue 
rulemakings, and develop test programs. CBO assumes that such 
costs would be funded from the authorizations provided in the 
bill for FAA operations, facilities, and equipment. In total, 
CBO estimates that these studies, rulemakings, and reports 
would cost about 7 million in fiscal year 2000. Of that total, 
the flight crew training assessment and test program would cost 
approximately $6 million.

Direct spending

    S. 82 would provide an additional $3,680 million in 
contract authority (a mandatory form of budget authority) for 
the airport improvement program for fiscal years 1999 and 2000; 
it also would extend the authority of the Secretary of 
Transportation to incur obligations to make grants under that 
program.
    Under current law, $1,205 million in AIP contract authority 
is available for obligation until March 31, 1999. S. 82 would 
provide an additional $1,205 million in contract authority for 
this year and $2,475 million of contract authority for 2000. 
Consistent with the Budget Enforcement Act, CBO's baseline 
projections assume that a full year of contract authority will 
be provided for AIP in fiscal year 1999 and subsequent years. 
Therefore, enacting S. 82 would result in no increase in 
contract authority in 1999 and an increase of $65 million in 
2000, relative to the baseline. Expenditures from AIP contract 
authority are governed by obligation limitations contained in 
appropriation acts and thus are categorized as discretionary 
outlays. Enacting S. 82 would not affect obligation limitations 
and would have no direct effect on AIP outlays.
    Section 305 would prohibit the FAA from charging fees for 
certain FAA certification services performed outside the United 
States. Based on information from the FAA, CBO estimates that 
the forgone receipts could total about $1 million in fiscal 
year 2000 and as much as $4 million per year in future years. 
Because the FAA has the authority to spend such fees, a 
reduction in such fee collections would also reduce spending; 
therefore, we estimate that this provision would have no net 
effect on direct spending over the 2000-2004 period.
    Section 307 would extend the authorization for the FAA's 
aviation insurance program through December 31, 2003. Under 
current law, the aviation insurance program will end on March 
31, 1999. Enacting this provision could cause an increase in 
direct spending if new claims would result from extending the 
insurance program. Moreover, such new spending could be very 
large, particularly if a claim exceeded the balance of the 
trust fund and the FAA had to seek a supplemental 
appropriation. But historical experience suggests that claims 
under this program are very rare; therefore, extending the 
aviation insurance program would probably have no significant 
impact on the federal budget over the next five years.
    Section 435 would amend the Death on the High Seas Act of 
1920 (DOHSA) to allow compensation for nonpecuniary damages in 
a death caused by commercial aviation. The provision would 
increase the potential compensation that relatives could seek 
for the death of a family member. Based on information from the 
Department of Transportation, CBO estimates that it is unlikely 
that enacting this provision would have a significant impact on 
the federal budget. The bill could affect federal spending if 
the government becomes either a defendant or a plaintiff in a 
future civil action related to aviation. Since any additional 
compensation that might be owed by the federal government under 
such an action could be paid out of the Claims and Judgments 
Fund, the provision could affect direct spending. But CBO has 
no basis for estimating the likelihood or outcome of any such 
actions.
    Section 427 would allow the Secretary of Defense to sell 
aircraft and aircraft parts to contractors delivering oil 
dispersants by air to disperse oil spills. Sales would be 
permitted from March 1, 1999, to September 30, 2002. The bill 
provides that the net proceeds of any amounts received by the 
Secretary of Defense from the sales be deposited as offsetting 
receipts (which are a form of direct spending). CBO estimates 
that any net proceeds would total less than $500,000 a year.

Revenues

    S. 82 would expand a pilot program that provides for the 
use of airport improvement grants to implement innovative 
financing techniques for airport capital projects. These 
techniques include payment of interest, purchase of bond 
insurance, and other credit enhancement associated with airport 
bonds. While the first pilot program, enacted in 1996, included 
these provisions, the early use of the program was geared more 
toward changing federal/local matching ratios. In addition, the 
earlier authorization provided for no more than 10 projects. 
This provision represents an expansion to 20 pilot projects. It 
is designed to leverage new investment financed by additional 
tax-exempt debt. JCT experts that this provision would lead to 
an increase in tax-exempt financing and a resulting loss of 
federal revenue. JCT estimates a loss of revenue of about $2 
million over the 2000-2004 period and totaling about $5 million 
over the 2000-2009 period.
    S. 82 would authorize the FAA to impose a new civil penalty 
on individuals who interfere with the duties and 
responsibilities of the flight crew or cabin crew of a civil 
aircraft, or who pose an imminent threat to the safety of the 
aircraft. The bill also would impose civil penalties on air 
carriers that violate section 41705 of Title 19 and on 
violators of the whistleblower protection provisions. Based on 
information from the FAA, CBO estimates that the civil 
penalties in S. 82 would increase revenues, but that the effect 
is likely to be less than $500,000 annually.
    S. 82 would impose a criminal penalty on individuals who 
knowingly and willfully serve in the capacity of an airman 
without an airman's certificate and on individuals who employ 
for service or use in any capacity an airman who does not have 
an airman's certificate. CBO estimates that this provision 
would increase revenues less than $500,000 annually. Criminal 
penalties are deposited in the Crime Victims Fund and spent in 
the following year. (Because any increase in direct spending 
would equal the fines collected with a one-year lag, the 
additional direct spending also would be insignificant.)
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending and receipts. The net 
changes in outlays and receipts that are subject to pay-as-you-
go procedures are shown in the following table. For the 
purposes of enforcing such procedures, only the effects in the 
current year, the budget year, and the succeeding four years 
are counted.

----------------------------------------------------------------------------------------------------------------
                                                       By fiscal year in millions of dollars--
                                    ----------------------------------------------------------------------------
                                      1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      0      0      0      0      0      0      0      0      0      0      0
Changes in receipts................      0      0      0      0     -1     -1     -1     -1     -1     -1     -1
----------------------------------------------------------------------------------------------------------------

    The only significant pay-as-you-go impact would result from 
expanding a pilot program that provides for the innovative use 
of airport improvement grants. JCT expects that this provision 
would result in an increase in tax-exempt financing and a 
subsequent loss of federal revenue. JCT estimates that the 
revenue loss would be about $2 million over the 1999-2004 
period and about $5 million in total over the 1999-2009 period.
    Estimated impact on state, local, and tribal governments: 
Overall S. 82 provides significant benefits to airports managed 
by state and local governments. However, the bill contains one 
intergovernmental mandate as described below.

Mandates

    The bill would prohibit public airports in Alaska and 
Hawaii from collecting passenger facility charges (PFCs) under 
certain circumstances. PFCs are paid to the airport (through 
the airlines) for planning and capital improvement projects. 
UMRA defines the direct costs of a mandate to include the 
amounts that state, local, and tribal governments would be 
prohibited from raising in revenue. In the case of Alaska, S. 
82 would prohibit public airports from collecting PFCs from 
passengers on aircraft seating less than 20. Based on 
information from the FAA, CBO estimates that this prohibition 
would lead to a loss of revenues totaling about $3 million 
dollars annually.
    Public airports in Hawaii would be prohibited from 
collecting PFCs from passengers on flights between two or more 
points in that state. Based on information from the FAA on the 
number of such flights in 1997, CBO estimates that the revenue 
loss in that state would total about $20 million annually. 
Currently, four airports in Hawaii receive all PFCs from 
flights subject to this provision.

Other impacts

    S. 82 would authorize an additional $3.7 billion in 
contract authority for the airport improvement program for 
fiscal years 1999 and 2000, most of which would be distributed 
as grants to fund capital improvement projects for the nation's 
commercial airports and general aviation facilities. The total 
amount authorized for the two fiscal years is $258 million 
above the AIP funding authorized in the previous two years. The 
bill also would increase from $500,000 to $650,000 the minimum 
amount of money going to be nation's primary airports from the 
``entitlement'' portion of the AIP. This increase would 
represent a significant benefit for the nation's smaller 
primary airports.
    This bill also would increase the number of slots (take-
offs and landings) available at Chicago's O'Hare Airport by 30 
and at Ronald Reagan Washington National Airport by 48. Twenty-
four of the slots at Ronald Reagan Washington National Airport 
would be granted to flights outside the current 1,250-mile 
perimeter and 24 would go to flights within that perimeter, 
subject to certain criteria. In addition, some of the newly 
allocated slots at both airports would be designated for small, 
undeserved communities. In general, as a condition of receiving 
money from the AIP, airports must agree to provide gate access, 
if available, to air carriers granted access to a slot. Based 
on information from the affected airports, CBO estimates that 
these changes would have an insignificant impact on their 
budgets.
    Finally, this bill would authorize appropriations of $80 
million for a four-year pilot grant program to enhance air 
transportation in up to 40 small communities and $6 million for 
improvements in rural aviation in Alaska.
    Estimated impact on the private sector: S. 82 would impose 
new mandates by requiring safety equipment for specific 
aircraft, imposing consumer and employee protection provisions, 
and imposing new requirements for commercial air tour 
operations over national parks. CBO estimates that the total 
direct costs of the mandates would not exceed the annual 
threshold for private-sector mandates ($100 million in 1996, 
adjusted for inflation).

Owners of fixed-wing powered aircraft

    Section 404 would require the installation of emergency 
locator transmitters on certain types of fixed-wing powered 
civil aircraft. It would do this by eliminating certain uses 
from the list of those currently excluded from that 
requirement. Most aircraft that would lose their exemption and 
currently do not have emergency locator transmitters are 
general aviation aircraft. According to information from the 
National Air Transportation Association, the trade association 
representing general aviation, the cost of acquiring and 
installing an emergency locator transmitter would range from 
$2,000 to $7,000. CBO estimates that fewer than 5,000 aircraft 
would be affected, and that the cost of this mandate would be 
between $15 million and $30 million.

Air carriers

    Section 306 would expand the criteria that air carriers 
would use to trigger a check for criminal history in the course 
of employment investigations for screeners of passenger, 
baggage, and property. The cost of this mandate would depend on 
the additional conditions that the FAA would require for such 
record checks. Based on information from the FAA and from air 
carriers, the cost per record check would range from $28 to $52 
per person. CBO estimates that the total additional cost would 
be less than $5 million annually.
    Section 310 would require, under certain conditions, that a 
dominant air carrier at a large hub airport provide services to 
smaller air carriers operating at that airport through 
interline agreements. Interline agreements would cover services 
such as ticketing, baggage and ground handling, and terminal 
and gate access. The number of required interline agreements 
would be small. Based on FAA data from the beginning of 1998, 
CBO expects that about seven carriers could be subject to this 
requirement. A mandate would be imposed on those carriers if 
three conditions are met. First, an air carrier must request 
service from a dominant carrier that currently offers interline 
agreements with other carriers. Second, the requesting air 
carrier must offer air service to a community that has been 
selected under a pilot program for small communities 
established under section 503 of S. 82. According to the FAA, 
the number of such qualifying communities could range from none 
to 10. Third, the requesting air carrier must meet safety, 
service, financial, and maintenance requirements. If either 
party fails to meet the standard and conditions outlined in the 
agreement, it may be terminated. All dominant carriers 
currently have interline agreements with their regional 
partners and other large carriers. CBO estimates that this 
mandate would impose no net additional costs on those dominant 
carriers because they would be reimbursed by the smaller 
carriers for the services they provide.
    Section 419 would protect employees of air carriers or 
contractors or subcontractors if those employees provide air 
safety information to the United States Government. Those firms 
would not be able to discharge or discriminate against such 
employees with respect to compensation, terms, conditions, or 
privileges of employment. Based on information provided by one 
of the major air carriers and the Occupational Safety and 
Health Administration, the agency that would enforce those 
provisions. CBO estimates that neither the air carriers nor 
their contractors would incur any direct costs in complying 
with this requirement.
    Section 426 would grant the FAA the authority to request 
from U.S. air carriers information about the stations located 
in the United States that they use to repair contract and 
noncontract aircraft and aviation components. CBO expects that 
the FAA would probably request such information. Based on 
information from the FAA and air carriers, we anticipate that 
the carriers would be able to provide the information easily 
because it would be readily available and that any costs of 
doing so would be negligible.
    Section 509 would make it an unfair and deceptive practice 
for any carrier utilizing electronically transmitted tickets to 
fail to notify the purchaser of such a ticket of the expiration 
date. The cost of notification would depend upon how the FAA 
would direct airlines to implement this requirement. Based on 
information from representatives of the air carriers, CBO 
estimates that the costs would be negligible if the FAA 
specifies the most efficient method of notification.

Ticket agents

    Section 433 would strengthen current rules requiring that 
consumers be notified when the operator of an aircraft differs 
from the airline in whose name the transportation was sold. 
This section would require the use of the operator's own name 
(also known as the corporate name) rather than the network 
name. The requirements would be specified in final regulations 
that must be issued not later than 90 days after enactment of 
S. 82. Based on information from the Department of 
Transportation, CBO estimates that this mandate would not 
impose additional costs on either air carriers or travel 
agents.

Commercial air tour operations

    Title VI would require operators of commercial air tours to 
apply for authority from the FAA before conducting tours over 
national parks or tribal lands within or abutting a national 
park. The FAA, in cooperation with the NPS, would devise air 
tour management plans for every park where an air tour operator 
flies or seeks authority to fly. The management plans would 
affect all commercial air tour operations up to a half-mile 
outside each national parkboundary. The plans could prohibit 
commercial air tour operations in whole or in part and could establish 
conditions for operation, such as maximum and minimum altitudes, the 
maximum number of flights, and time-of-day restrictions. S. 82 would 
not apply to air tour operations over the Grand Canyon or Alaska. Those 
operations would be covered by other regulations.
    CBO estimates that Title VI would impose no additional 
costs on the private sector beyond those that are likely to be 
imposed by FAA regulations under current law. Although the cost 
of those regulations cannot be estimated with confidence until 
they are published, S. 82 would not add any conditions that 
would significantly change the likely cost to the provate 
sector. CBO expects that the cost of applying to the FAA for 
authority to operate commercial air tours over national parks 
or tribal lands would be negligible.
    Section 605 would prohibit commercial tours over the Rocky 
Mountain National Park. Information from a representative for 
commercial tour operators indicates that the conditions over 
that park are not conducive to commercial tours. Currently 
tours are not operated over the Rocky Mountain National Park 
and none are expected. Thus, this mandate would not impose any 
costs on commercial tour operators.

Cargo aircraft owners and operators

    Section 402 would mandate that a collision avoidance system 
be installed on each cargo aircraft with a payload capacity of 
15,000 kilograms or more by December 31, 2002. The FAA would be 
required to approve the equipment. Cargo industry 
representatives say they are currently developing a collision 
avoidance system using new technology and expect it to be 
installed in such cargo aircraft by the deadline, even if no 
legislation is enacted. Assuming the FAA would approve that 
system, CBO estimates that this bill would impose no additional 
costs on owners and operators of cargo aircraft.
    Estimate prepared by: Federal Costs: Victoria Heid Hall, 
for FAA provisions and NPS overflights, Christina Hawley 
Sadoti, for DOL penalties; and Hester Grippando, for FAA 
penalties. Impact on State, Local, and Tribal Governments: Lisa 
Cash Driskill. Impact on the Private Sector: Jean Wooster.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

      In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       number of persons covered

    In Title I, the new authorizations for an air safety and 
security program (Sec. 101), and an airport security program 
(Sec. 105) may slightly expand the number of persons or 
airports subject to additional safety regulation, but only if 
those persons or airports choose to become involved in those 
programs.
    In Title II, the innovative airport financing program (Sec. 
202) establishes a voluntary program that may expand by 10 the 
number of airports subject to additional regulation, but only 
if those airports choose to become involved in that program.
    In Title III, the provision requiring interline agreements 
between air carriers in certain circumstances (Sec. 310) may 
subject some major air carriers to additional regulation if 
they are required to enter into such agreements.
    In Title IV, numerous operators of cargo aircraft would be 
subject to additional regulation by the requirement for the 
installation of collision avoidance systems on cargo aircraft 
(Sec. 402). A large number and variety of aircraft operators 
(primarily all air carriers and businesses with jets) would be 
subject to additional safety regulation by the requirement that 
most turbojet-powered aircraft be equipped with emergency 
locator transmitters (Sec. 404). All domestic and foreign air 
carriers operating in the U.S. would be subject to the 
provision that enhances the enforcement of prohibitions against 
the discrimination of disabled passengers (Sec. 407). Numerous 
federal employees would enjoy additional legal protections by 
(1) the restoration of authority for them to seek redress when 
retaliated against for whistleblowing (Sec. 415), and (2) the 
restoration of the right of FAA employees to submit appeals to 
the Merit Systems Protection Board (MSPB) (Sec. 425). 
Similarly, thousands of employees of the airlines and their 
contractors would enjoy new statutory whistleblower protections 
(Sec. 419). All airlines and their contractors would be subject 
to the constraints of the new protections. In the provision 
that allows certain airports to deny access to certain air 
carriers, a very small number of charter operators may be 
prevented from operating at those airports if the prescribed 
conditions are met (Sec. 421). Numerous foreign aircraft repair 
stations that are certified by the FAA would be subjected to 
additional regulations requiring them to submit information 
regarding their activities, and domestic repair stations may 
also be subject to such regulations (Sec. 426). Those persons 
who voluntarily choose to purchase excess aircraft from the 
Department of Defense (DOD), for use in dispersing oil spills, 
would be permitted to. They would be subject to certifications 
by the DOT on the purchase of the aircraft (Sec. 427).
    In Title V, the voluntary programs designed to improve 
small community air service (Secs. 502 and 503) may modestly 
expand the number of airports or communities subject to 
additional regulation, but only if those airports or 
communities choose to become involved in those programs.
    In Title VI, commercial air tour businesses that currently 
operate over national parks where there are no flight 
restrictions would be subject to new ATMPs (Sec. 602). This 
requirement will affect only commercial air tour companies, 
which are already subject to extensive federal aviation 
regulations.

                            economic impact

    Title I would authorize (for FAA operations, F&E;, and AIP) 
total appropriations of $10.171 billion for fiscal year 1999, 
and $10.448 billion for fiscal year 2000. While funding for 
these programs is substantial, it should not have an unexpected 
inflationary effect on the domestic economy.
    In Title II, the innovative airport financing program (Sec. 
202), the flexible local matching share for small airports 
(Sec. 203), the flexible pavement design standards for 
nonprimary airports (Sec.205(j)), and the requirement for 
prioritization of discretionary grant projects (Sec. 207) would lead to 
more efficient and effective use of federal grant monies for the 
airports affected by those provisions. The authority for airports to 
waive PFCs for small charter operations to small communities (Sec. 
205(I)) may reduce consumer travel costs for the affected routes, as 
would the prohibitions on imposing PFCs on persons flying within Alaska 
on small aircraft and on persons flying between two points in Hawaii 
(Sec. 205(h)). Increasing the minimum AIP entitlement for the smallest 
airports would be of economic benefit to those airports and their local 
communities, many of which have few resources for infrastructure 
development (Sec. 205(k)). Similarly, allowing the FAA to continue 
providing AIP funds for small airports that temporarily lose 
eligibility for such funds would help sustain needed airport 
development in isolated and rural areas (Sec. 205(m)). Eliminating the 
8 percent cap on entitlements for individual cargo airports would 
increase the amount of cargo entitlement funds going to one airport and 
reduce by a small amount the funds going to all of the other airports 
in the program (approximately 101), usually by a few thousand dollars 
(Sec. 205(l)(2)); however, increasing the cargo entitlement from 2.5 
percent to 3 percent of total AIP monies would mitigate any relative 
reduction in funds to these airports (Sec. 205(l)(1)).
    In Title III, the authority for the FAA to enter into 
severable service contracts for periods crossing fiscal years 
(Sec. 301) would reduce agency administrative work and thereby 
result in cost savings to the government. The provision that 
would allow Stage 2 aircraft operating in Hawaii to return to 
the continental U.S. for repairs and maintenance will have a 
very positive impact on those carriers who otherwise would be 
unable to have their aircraft serviced unless they obtained a 
waiver from the FAA (Sec. 302).
    In Title IV, the requirement that cargo aircraft install 
collision avoidance systems may cost the air cargo industry 
$160 million over 20 years, according to a very preliminary 
estimate by the FAA (Sec. 402); however, by helping to prevent 
midair collisions, many millions of dollars and human lives may 
be saved. The requirement for virtually all turbojet-powered 
aircraft to install emergency locator transmitters (Sec. 404) 
may cost affected operators of such aircraft approximately $36 
million, according to preliminary estimates by the FAA; 
however, significant amounts of money and many lives may be 
saved by enabling rescuers and accident investigators to locate 
downed aircraft more quickly. Air carriers could be impacted 
negatively if they are subjected to increased fines or are 
required to pay attorneys' fees in matters involving 
discrimination against disabled passengers; however, disabled 
passengers could benefit positively if access to aircraft is 
improved and by the opportunity to recover attorneys' fees in 
litigation against airlines for discrimination (Sec. 407). 
Allowing the DOD to sell excess aircraft for the purpose of 
dispersing oil spills could be of substantial benefit to the 
economy and environment of any area affected by such a spill 
(Sec. 427). The provision that increases the allowable 
compensation for families of aircraft accident victims over 
international waters would increase the potential financial 
liability of any defendant sued under the Death on the High 
Seas Act (Sec. 435); insurance premiums could increase for 
potential defendants as well. The long-term capital lease 
demonstration program for the FAA could result in substantial 
cost savings for the agency (Sec. 440) and facilitate the 
installation of new equipment making the air traffic control 
system more efficient and possible saving consumers billions of 
dollars in delay costs.
    In Title V, the programs designed to improve small 
community air service (Secs. 502-504) involve spending modest 
amounts of money that may yield substantial indirect benefits 
to local economies if air transportation is improved, as well 
as increase receipts in federal ticket tax revenues. 
Opportunities for air carriers to take advantage of slot and 
perimeter rule exemptions (Secs. 506-508) would produce 
economic savings to consumers and businesses, which would be 
enhanced if air fares are reduced as the GAO, the DOT, and 
certain academics have suggested will occur if slots and 
perimeter rules are eased.

                                privacy

    This legislation would not have any adverse impact on the 
personal privacy of the individuals affected.

                               paperwork

    In Title I, the air safety and security program (Sec. 101), 
and the airport security program (Sec. 105) may generate small 
amounts of administrative paperwork in association with federal 
selection and oversight of voluntary participants. The 
reprogramming notification requirement (Sec. 104) would result 
in an insubstantial increase in paperwork because the FAA is 
already required to report reprogramming activities to the 
appropriations committees.
    In Title II, the innovative airport financing program (Sec. 
202) may generate relatively small amounts of administrative 
paperwork in association with federal selection and oversight 
of voluntary program participants. The requirements for the FAA 
to prepare one report on efforts to implement capacity 
enhancement (Sec. 206), and for the DOT to provide public 
notice before issuing an airport grant assurance waiver (Sec. 
208), would result in some increase in paperwork for the 
government to satisfy those responsibilities.
    In Title IV, small amounts of additional paperwork for the 
FAA would result from each of the following requirements: 
solicitation of comments on the need for the improvement of 
runway safety areas and the installation of precision approach 
path indicators (Sec. 403); promulgation of regulations to 
require emergency locator transmitters on more aircraft (Sec. 
404); report on a plan to implement the Wide Area Augmentation 
System (Sec. 410); reissuance of the notice applicable to 
Alaska air guides (Sec. 411); establishment of a human factors 
oversight committee (Sec. 413); response to the National 
Research Council recommendations on air traffic control 
automation (Sec. 413); and conforming existing memoranda of 
agreement regarding aircraft situational displays with the new 
requirements (Sec. 428). The DOT would be subject to an 
increased amount of paperwork as a result of its new mandate to 
investigate each complaint of discrimination against disabled 
passengers, and related activities (Sec. 407). Small amounts of 
additional paperwork for the FAA would also result from each of 
the following required reports: modernization of the oceanic 
air traffic control system (Sec. 416); the air transportation 
oversight system (Sec. 417); adequacy of flight deck breathing 
hoods (Sec. 436); alternative power sources for flight data 
recorders and cockpit voice recorders (Sec. 437); and status of 
the effort to eliminate the hazmat enforcement backlog (Sec. 
439). A relatively small amount of additional paperwork would 
be generated for the DOT Inspector General for its validation 
of the FAA's cost accounting system (Sec. 414). Paperwork would 
be significantly reduced for airports and the FAA by allowing 
airports to utilize completed environmental assessments or 
impact statements for new projects, as appropriate (Sec. 418). 
Additional government (Department of Labor) and private sector 
paperwork would be generated by any complaints filed by airline 
employees alleging employer retaliation for whistleblowing 
(Sec. 419), but the number of such complaints filed under 
similar whistleblower statutes has been very low. The Secretary 
of Commerce and the newly-created International Visitor 
Assistance Task Force would be subjected to relatively modest 
amounts of paperwork associated with the two separate reports 
to Congress that each is required to submit (Sec. 422). Because 
thousands of FAA employees would be able to contest adverse 
personnel actions to the MSPB and the Office of Special Counsel 
(OSC), there could be substantial amounts of additional 
paperwork imposed on those entities as well as the FAA and its 
employees (Sec. 425). Foreign aircraft repair stations (and 
possibly domestic ones) would be subject to a modest amount of 
increased paperwork to comply with the mandate for information 
regarding their activities (Sec. 426). Those persons choosing 
to purchase excess aircraft from the DOD would be subject to 
administrative and regulatory paperwork associated with the 
certifications by the DOT on the purchase of the aircraft and 
by the FAA on the operation of the aircraft (Sec. 427). The 
Secretaries of Transportation and the Treasury would be 
subjected to small amounts of paperwork associated with 
reporting requirements on aviation trust fund allocations (Sec. 
431).
    In Title V, the programs designed to improve small 
community air service (Secs. 502 and 503) may result in small 
amounts of administrative paperwork in association with federal 
selection and oversight of voluntary program participants. 
Applications for slot exemptions and for perimeter rule 
exemptions (Secs. 506-508) may generate limited paperwork for 
the DOT and any operator seeking to take advantage of these 
pro-competitive opportunities. The DOT's regional jet study 
(Sec. 511) and the GAO's small airport study (Sec. 512) may 
result in modest amounts of additional government paperwork.
    In Title VI, new requirements associated with regulating 
commercial air tours over national parks and developing air 
tour management plans would result in a relatively small amount 
of additional paperwork for the government and the affected air 
tour operators (Sec. 602). The FAA report on the effects of 
proposed park overflight fees would result in a small amount of 
additional paperwork (Sec. 605).

                      Section-by-Section Analysis

Section 1. Short title; table of contents

    Section 1 cites the title of the bill as the ``Air 
Transportation Improvement Act.'' This section also contains a 
table of contents for the bill, as reported.

Section 2. Amendments to title 49, United States Code

    Section 2 provides that references in the bill to sections 
or provisions in the law are considered to be sections or 
provisions of title 49, United States Code.

                        TITLE I--AUTHORIZATIONS

Section 101. Federal Aviation Administration operations

    Section 101 would provide authorizations for the FAA 
operations account for fiscal year 1999 and fiscal year 2000. 
In fiscal year 1999, funding for FAA operations is proposed to 
increase from the fiscal year 1998 level by about 5.4 percent 
to $5.6 billion. For fiscal year 2000, the authorization would 
increase at the expected rate of inflation to $5.8 billion. The 
FAA would be directed to make a dues payment of no more than 
$9.1 million from the operations account to the International 
Civil Aviation Organization.
    In an effort to address the problem of bird ingestions into 
aircraft engines, this section would authorize $450,000 for 
wildlife mitigation programs and surveys.
    Not more than $9.1 million over three years would be 
authorized to support a safety and security management program 
to provide training for aviation safety personnel, 
concentrating on representatives from countries that are not in 
compliance with international safety standards, but are trying 
to improve. The FAA would use open and competitive procedures 
to conduct the site selection. This section would also clarify 
that the Secretary's current slot exemption authority is not 
affected by the bill's other provisions dealing with slot 
exemptions.
    The Committee expects the FAA to continue to support the 
General Aviation and Vertical Flight program within the agency. 
The FAA has begun the process of revising its policies and 
procedures to make more effective use of the capabilities of 
rotorcraft. The Committee is optimistic that the air traffic 
control system in the future will be able to provide dispatch 
reliability, or instrument flight rules (IFR) capability, for 
both helicopters and the newest rotorcraft technology--
tiltrotor aircraft--if and when it becomes commercially viable. 
The Committee anticipates that the FAA will revise its existing 
terminal instrument procedures (TERPS) and IFR regulations and 
procedures to facilitate the takeoff, flight and landing of 
helicopters and tiltrotor aircraft, in anticipation of this new 
technology becoming a part of the commercial, scheduled air 
transportation system.
    The Committee also expects the FAA to continue working with 
the aviation industry and community in the effort to reduce the 
fatal accident rate. The Committee is aware that in 1998, there 
were no passenger fatalities involving United States air 
carriers. To continue in the effort to reduce the fatal 
accident rate, however, the FAA should sponsor an annual summit 
of leaders from the government and industry to address the most 
critical safety issues.
    Over time, the FAA has invested substantial resources in 
the development and maintenance of a large number of data 
bases. Responsibility and control over these data bases are not 
centralized, however. Instead they are spread among the 
agency's lines of business and other organizational elements 
that are the prime users of the data collected, and there is 
little agency-wide data integration. Consequently, the FAA may 
have become ``data rich and information poor.''
    Accordingly, the Committee believes that change is needed. 
The FAA should develop a data management plan that leads to the 
following: optimized data sharing among organizational 
elements; better control over the costs of data base 
management; the capability to review and analyze data on a 
subject as well as a functional basis; and enhanced capability 
of senior management to resolve time-critical questions and 
issues that may cut across agency organizational elements.
    A report on the progress toward the development of the plan 
should be made to the Committee not later than six months from 
the date this bill is enacted into law.
    The Committee is also aware that the safety inspection 
process is a critical component of improving safety. The 
process includes many facets, including inspection and 
enforcement. The Committee wants to ensure that the FAA has the 
resources needed to inspect and enforce. The GAO has noted that 
legal resources are a key component of the process and that 
those needs should be considered by the Administrator.

Section 102. Air navigation facilities and equipment

    Section 102 would provide authorizations for the FAA's F&E; 
account for fiscal year 1999 and fiscal year 2000. For fiscal 
year 1999, $2.13 billion is proposed for the F&E; budget, with 
specific amounts allocated for specific programs within the F&E; 
account. For fiscal year 2000, the authorization would increase 
at the expected rate of inflation to $2.189 billion. Also, 
there would be authorized at least $30 million annually for the 
FAA to purchase precision instrument landing system (ILS) 
equipment through its ILS inventory program.
    Because of the often confusing ways in which the agency 
makes reference to the costs of major ATC projects, this 
section would also require the FAA to establish cost estimates 
based on the life cycle costs of projects estimated to cost 
more than $50 million.

Section 103. Airport planning and development and noise compatibility 
        planning and programs

    Section 103 would extend contract authority through fiscal 
year 2000 for AIP grants. The AIP account would be authorized 
at a level of $ 2.41 billion in fiscal year 1999, with an 
increase to $2.475 billion for fiscal year 2000 as permitted 
under the most recent budget resolution. Without this extension 
of authority, federal airport grants could not be made after 
March 31, 1999.

Section 104. Reprogramming notification requirement

    Section 104 would require the FAA to notify the authorizing 
committees of the Senate and House prior to reprogramming 
amounts authorized for the operations, F&E;, or AIP accounts.

Section 105. Airport security program

    Section 105 would authorize the FAA to carry out at least 
one project to test and evaluate innovative airport security 
systems and related technology, including explosive detection 
systems in an airport environment. Not less than $5 million 
would be authorized to be spent from the AIP discretionary fund 
for this program. The Committee anticipates that an open 
competition will occur for the site selections for the program.

Section 106. Automated Surface Observation System (ASOS) Stations

    Section 106 would require the FAA to maintain human weather 
observers for ASOS stations until 60 days after the Secretary 
of Transportation notifies Congress in writing of his or her 
determination that the system provides consistent reporting of 
changing meteorological conditions.

                        TITLE II--AIP AMENDMENTS

Section 201. Removal of the cap on discretionary fund

    Section 201 would repeal the provision that imposes a $300 
million ``cap'' on the discretionary fund. Under current law, 
if the amount of money in the discretionary fund exceeds $300 
million, the excess funds are equally divided among small 
airports, noise-related programs, and the Military Airport 
Program (MAP). Repealing this provision would increase the 
amount of discretionary funds available to the FAA for grants 
for major airport capacity projects, which enhance the capacity 
of the overall system.

Section 202. Innovative use of airport grant funds

    Section 202 would codify an existing innovative airport 
funding program, remove the program's expiration date, and 
expand the number of projects eligible for the program from 10 
to 20. The Federal Aviation Reauthorization Act of 1996 
authorized a demonstration program to permit the FAA to make 
grants of AIP funds for up to 10 projects to test and evaluate 
the following three innovative financing mechanisms or 
techniques: payment of interest, credit enhancements (such as 
municipal bond insurance), and flexible non-federal matching 
requirements. The Committee is encouraged by the types of 
projects included in the first 10 projects; however, this 
successful demonstration program expired on September 30, 1998. 
The extension is intended to provide other airports an 
opportunity to participate.

Section 203. Matching share

    Section 203 would allow small airports to fund AIP projects 
utilizing a more flexible matching share ratio. Instead of the 
strict 90-percent federal/10-percent local matching share 
requirement for each project, the match requirement would be 
modified to one that allows not more than a 90-percent federal 
share for all projects at airports other than medium and large 
hubs.

Section 204. Increase in apportionment for noise compatibility planning 
        and programs

    Section 204 would increase the amount of AIP funds 
allocated to the noise set-aside. The apportionment from the 
discretionary fund for grants for airport noise compatibility 
planning, and for carrying out airport noise compatibility 
programs, would increase from 31 percent to 35 percent.
    The Committee expects the FAA to allocate noise mitigation 
money based on need and appropriate merit-based criteria, such 
as the number of individuals impacted, the degree of noise 
impact, and other relevant factors, including whether an 
airport is high density and would receive additional traffic as 
a result of this bill. The Committee also anticipates that the 
FAA will take into consideration longstanding projects which 
have awaited completion over a number of years and will give 
careful attention to mitigating the detrimental impact on 
communities affected by this negative situation. For example, 
DeKalb-Peachtree Airport, Georgia's second busiest airport, 
began a runway expansion program in 1985. Since 1993 the FAA 
has provided funding to buy 74 residential properties located 
in the Runway Protection Zone that are adversely affected by 
the Airport's increased operations. Ninety-eight residential 
homes and 61 businesses, however, still await the opportunity 
to relocate.

Section 205. Technical amendments

    Section 205 would make numerous technical changes to 
improve the implementation of the AIP program, and to correct 
inadvertent errors due to amendments and recodification changes 
to title 49.
    Subsection (a) would amend the entitlement fund provision 
(section 47114) to correct a reference to a now repealed 
provision of title 49 (section 47117(e)(1)(C)). The original 
intent was to allow the use of state-apportioned funds at 
certain ``grandfathered'' airports in Alaska and at all public 
airports in Puerto Rico. The revised language is more flexible 
in that it not only restores the intent of the statute with 
respect to Puerto Rico, but also allows the use of the funds 
for any public airport in Alaska. It also amends the section to 
allow state apportioned funds to Hawaii to be used on primary 
airports. Normally such funds are restricted to use at 
nonprimary airports. Unlike most states, however, Hawaii does 
not have a broad range of airport types and activity levels.
    Subsection (b) would amend section 47114(e) to restore the 
meaning of the provision prior to recodification of title 49 in 
1994. Section 47114(e) provides a method of apportioning funds 
for airports in Alaska that historically has been interpreted 
as authorizing a supplemental apportionment, not an alternative 
apportionment as the recodification characterized it. Currently 
the supplemental apportionment amounts to approximately $10.6 
million annually and is available to nonprimary airports and 
certain grandfathered airports in Alaska. This section would 
further amend 47114(e) to provide greater flexibility by 
allowing the funds to be used at any public airport in Alaska.
    Subsection (c) would repeal a 110 percent limitation on the 
supplemental apportionment to any single commercial airport in 
Alaska. The intent of the provision has been unclear and its 
implementation has caused confusion. In the interest of 
providing greater financial flexibility to Alaska in the use of 
the supplemental apportionment, the limitation is removed.
    Subsection (d) would amend the definition of the 
discretionary fund to remove the portion of the fund known as 
the ``small hub fund'' and add the monies from that fund to the 
small airport fund. This change would put the small hub fund in 
a more appropriate place because its funds are derived from the 
same source (i.e., AIP funds not apportioned to large and 
medium hub airports because they collect PFCs) and have similar 
restrictions.
    Subsection (e) would add a new paragraph to section 47108 
that provides that a multiyear development project at a primary 
airport that is funded through a multiyear agreement would 
retain eligibility for funding to complete the project even if 
the airport loses its status as a primary airport. Such a 
project would be eligible for discretionary funds, subject to 
funding availability. Projects in this circumstance are 
relatively low-cost and few in number. This provision will 
nevertheless help avoid potential for default or abandonment of 
projects resulting from changes in airport status beyond the 
control of the sponsor.
    The FAA reportedly plans in the near future to revise its 
administrative guidance for the designation of reliever 
airports. Such a revision would tighten the eligibility 
criteria. According to the agency, there are 22 privately-owned 
airports that now qualify for federal aid as reliever airports. 
Subsection (f) would grandfather these airports into the 
program so that they may remain eligible for federal aid and 
continue to play an effective role in the national airport 
system.
    At the recommendation of the FAA, subsection (g) would 
remove projects at reliever airports from eligibility for 
letters of intent (LOI) under section 47110(e). With this 
change, only projects at primary airports would be eligible for 
LOIs.
    Subsection (h) would amend current law to prohibit an 
airport from charging a PFC for any passenger (1) traveling in 
Alaska aboard an aircraft with fewer than 20 seats, or (2) 
traveling between two or more points within Hawaii.
    Subsection (i) would codify a current regulation (14 C.F.R. 
158.11) that allows public airport operators to waive PFC 
collections for certain classes of air carriers, such as air 
taxis, provided that each class constitutes no more than 1 
percent of the total number of passengers enplaned annually at 
the airport at which the PFC is imposed. This section also 
provides the Secretary the authority to expand the current 
regulation so that primary airports can take advantage of PFCs, 
but not adversely affect air service to isolated communities 
like many in Alaska, with few or no alternatives to air travel.
    Subsection (j) would amend the provisions of Subchapter II 
(Surplus Property for Public Airports) of chapter 471 to 
restore the original intent of the provisions prior to the 
recodification of title 49. Subchapter II is the restatement of 
section 13(g) of the Surplus Property Act of 1944. This section 
restores the use of the terms ``convey'' or ``conveyance'' 
instead of ``gift.'' Also, this section expressly provides that 
priority consideration is given to requests from public 
agencies for surplus government property to be used for public 
airport purposes.
    Subsection (k) would increase the minimum airport AIP 
entitlement from $500,000 to $650,000 beginning in FY 2000. 
This would have the effect of decreasing the amount of 
available discretionary funds by approximately $25 million 
annually. It would not affect the discretionary fund 
substantially, and it would help the smaller airports that do 
not have as much ability as the large airports to raise their 
own capital.
    Subsection (l) would increase the cargo airport entitlement 
share of the AIP to 3 percent from the current 2.5 percent. The 
cargo entitlement share had been 3.5 percent prior to 1996. 
This subsection also would eliminate the restriction in current 
law that no cargo service airport is entitled to more than 8 
percent of the total amount apportioned to all cargo service 
airports under the AIP. This provision, coupled with an AIP 
obligation limit of $1.95 billion for fiscal year 1999, is 
expected to benefit many, if not all, cargo airports.
    Subsection (m) would allow small airports in rural states 
to continue receiving AIP entitlement money even when the level 
of annual enplanements temporarily dips below 10,000 in one 
year due to circumstances beyond merely the demand for air 
transportation, such as airline strikes or natural disasters. 
This would ensure stable funding for primary airports that can 
least afford a loss of federal support.
    Subsection (n) would allow flexibility in pavement design 
standards by permitting the use of state highway specifications 
for airfield pavement construction at general aviation airports 
serving aircraft weighing less than 60,000 pounds. If airports 
take advantage of this provision, they would be prohibited for 
10 years from subsequently seeking funds to strengthen the 
runway. The Committee recognizes that the lower highway 
standards may be less costly to meet than the FAA standards, 
giving the FAA the ability to spread AIP dollars further. If 
airports choose to overlay or build airfield pavement using the 
lower standards, however, the Committee does not expect the FAA 
later to support projects to strengthen those runways.
    Subsection (o) would provide for explicit AIP funding 
eligibility for the installation of integrated in-pavement 
lighting systems, and other runway incursion prevention 
devices.

Section 206. Report on efforts to implement capacity enhancements

    Section 206 would require the FAA to report on efforts, 
including the time frame, to implement air transportation 
system capacity enhancements through technology improvements, 
such as precision runway monitoring systems.

Section 207. Prioritization of discretionary projects

    Section 207 would encourage airports to use their 
entitlement funds for their highest priority projects before 
proceeding to lower priority projects. Airports that fund their 
low priority projects with entitlement funds, yet 
simultaneously apply for discretionary funds for their high 
priority projects, would have their discretionary fund 
applications downgraded accordingly. This provision is based 
upon a recommendation made by the DOT's Office of the Inspector 
General in its recent report on the DOT's discretionary 
spending programs.

Section 208. Public notice before grant assurance requirement waived

    Section 208 would require the FAA to provide 30-days public 
notice in its process for waiving airport grant assurances. The 
Committee is aware that the provision may cause unnecessary 
delay and increase the burdens on the FAA in responding to 
comments. The Committee is concerned, however, that if major 
grant assurances are waived without an opportunity for the 
public to be made aware, the air transportation system could 
lose vital assets.

Section 209. Definition of public aircraft

    Section 209 would amend the definition of public aircraft 
to include aircraft that are operated for the purpose of 
transporting prisoners. This change recognizes that 
transporting prisoners is a legitimate government function. 
Under this provision, the public aircraft designation for a 
prisoner transport would not be lost if law enforcement 
agencies shared the costs of operating such a flight.

Section 210. Terminal development costs

    Section 210 would permit airports to utilize PFC funds for 
the construction of the shell of a terminal to enable 
additional air service by non-dominant carriers. Airports would 
be able to utilize PFC funds for the shell of such a terminal 
building, including the appurtenant floors, walls, heat, air 
conditioning, ventilation and wiring. It is important for 
airports that are gate-restricted, or have agreements that 
allow the dominant carriers to dictate construction, to have 
sufficient flexibility to finance the noncommercial portions of 
new terminal structures to the greatest extent possible to 
accommodate additional, competitive carriers.

Section 211. Airfield pavement conditions

    Section 211 would require the FAA to evaluate options for 
improving the quality of information available to the agency on 
airfield pavement conditions for airports that are part of the 
national air transportation system.

Section 212. Discretionary grants

    Section 212 would direct the FAA to allocate leftover AIP 
funds as discretionary grants for noise abatement activities.

                 TITLE III--AMENDMENTS TO AVIATION LAW

Section 301. Severable services contracts

    Section 301 would expressly provide authority to the FAA 
regarding severable service contracts. With the enactment of 
FAA procurement reform in 1996, there is some question whether 
the FAA still has the flexibility it previously had under the 
Federal Acquisition Streamlining Act of 1994 (FASA) to enter 
into contracts for procurement of severable services that begin 
in one fiscal year and end in another. (See 41 U.S.C. 253l.) 
The FAA uses this authority, particularly with regard to air 
traffic services, to enter into numerous contracts for 12-month 
periods that do not necessarily coincide with the 12 months of 
a single fiscal year. This flexibility dramatically reduces the 
administrative work of having all contracts expire at the end 
of a fiscal year.

Section 302. Limited transportation of certain aircraft

    Section 302 would allow Stage 2 aircraft to fly to and from 
the continental U.S. for repairs. Such aircraft are currently 
permitted to remain in intrastate service in Hawaii even though 
they are prohibited from flying in the continental U.S.

Section 303. Government and industry consortia

    Section 303 would codify a provision from the Omnibus 
Consolidated Appropriations Act of 1997 (P.L. 104-208, section 
5501) that allows the FAA to establish consortia of government 
and aviation industry representatives at individual airports to 
provide advice on aviation security and safety. It would allow 
the FAA to continue and expand this successful program, which 
has provided local input for enhancements to aviation security.

Section 304. Implementation of Article 83 bis of the Chicago Convention

    Section 304 provides the legislative authority to implement 
what is known as Article 83 bis of the Convention on 
International Civil Aviation (Chicago Convention), 7 December 
1944, 61 Stat. 1180, T.I.A.S. No. 1591, 15 U.N.T.S. 295.
    This section would provide implementing legislation for 
Article 83 bis by amending section 44701, General Requirements, 
to add a new subsection. It would permit the FAA, through 
bilateral agreement, to relinquish responsibility for the U.S.-
registered aircraft for which safety oversight responsibility 
is transferred abroad, and accept responsibility for the 
foreign-registered aircraft whose oversight is transferred to 
the United States. The transferred aircraft would be treated, 
for all practical safety oversight purposes only, as if they 
were on the registry of the other State.

Section 305. Foreign aviation services authority

    Section 305 would clarify the FAA's authority to collect 
fees for foreign aviation services provided by the FAA, such as 
those provided at foreign repair stations and for other foreign 
activities, by specifically authorizing the collection of fees. 
The FAA has collected such fees since 1995. The agency could 
not, however, impose fees for production-certification-related 
services performed outside the U.S.

Section 306. Flexibility to perform criminal history record checks; 
        technical amendments to Pilot Records Improvement Act

    Section 306 would provide broader authority to the FAA to 
determine what circumstances warrant a criminal history record 
check for persons performing security screening of passengers 
and cargo.
    This section also would make two technical improvements to 
the Pilot Records Improvement Act of 1996, as amended in 1997 
by P.L. 105-142. First, the section clarifies that the records 
that air carriers or other persons are required to provide in 
response to a request are those records that relate to the 
individual's performance as a pilot. Second, the section 
provides that an air carrier may permit an individual to begin 
service as a pilot, notwithstanding the fact that otherwise-
required records from a foreign government or foreign entity 
have not been received, if the air carrier has made a 
documented good faith attempt to obtain the information.

Section 307. Extension of aviation insurance program

    Section 307 would extend the authorization of the aviation 
insurance program (also known as war risk insurance) through 
December 31, 2003. The program is now authorized through March 
31, 1999. It provides insurance for commercial aircraft that 
are operating in high risk areas, such as countries at war or 
on the verge of war. Commercial insurers usually will not 
provide coverage for such operations, which are often required 
to further U.S. foreign policy or national security policy. For 
example, commercial airlines were needed to ferry troops and 
equipment to the Middle East for Operations Desert Shield and 
Desert Storm.

Section 308. Technical corrections to civil penalty provisions

    Section 308 would make several changes to the FAA's civil 
penalty provisions. The first would delete references in 
section 46301 to sections 46302 (False information) and 46303 
(Carrying a weapon). Those two sections already provide for a 
maximum civil penalty of $10,000 for each violation, as did 
their predecessor sections, 901(c) and (d) of the Federal 
Aviation Act of 1958 (FAA Act), before the 1994 recodification 
project. Section 46301(a)(1)(A) sets a maximum penalty of 
$1,000 for a variety of violations. Deleting references to 
these sections would correct a recodification error.
    The second change would replace a reference to 
``individual'' with ``person,'' a term that would include not 
only individuals but also entities such as air carriers or 
airports. Section 46301(d)(2) gives the Administrator authority 
to impose civil penalties for violations of the provisions 
specified. Paragraph (d)(2) does not limit this authority to 
individuals. It follows that the authority includes civil 
penalty cases against all persons, not just individuals. 
Therefore, section 46301(d)(7)(A) would be amended to include 
actions against entities other than individuals.
    The third change would add a reference in the judicial 
review section to orders of the Administrator. This would be 
consistent with section 46301(d)(2), which gives the 
Administrator specific authority to assess administratively 
civil penalties not exceeding $50,000.

Section 309. Criminal penalty for pilots operating in air 
        transportation without an airman's certificate

    Section 309 would require the imprisonment (up to three 
years) or imposition of a fine upon any individual who 
knowingly serves as an airman without an airman's certificate 
from the FAA. Also, the same penalties would apply to anyone 
who employs as an airman an individual who does not have the 
applicable airman's certificate. The maximum term of 
imprisonment increases to five years if the violation is 
related to the transportation of a controlled substance.

Section 310. Nondiscriminatory interline interconnection requirements

    Section 310 would require major air carriers to enter into 
interline agreements with other carriers under certain 
circumstances. A major airline that already has an interline 
agreement with another airline would be required to provide the 
same interline services (i.e., ticketing, baggage and ground 
handling, and terminal and gate access) to any requesting 
carrier that offers service to an airport participating in the 
air service program for small communities established under 
Section 503 of this bill. The Secretary of Transportation would 
review any proposed agreement to determine if the requesting 
carrier meets operational requirements consistent with those of 
the major carrier. This provision would apply only to a major 
carrier that accounts for more than 50 percent of the 
enplanements at a large hub airport.

                        TITLE IV--MISCELLANEOUS

Section 401. Oversight of FAA response to Year 2000 problem

    Section 401 would require the FAA to report to the Senate 
and House authorizing committees on the FAA's progress in 
dealing with the Year 2000 data processing issue. The reports 
may be verbal or written, so as not to cause the FAA to waste 
unnecessary time and resources on drafting lengthy reports to 
Congress. The Committee expects the FAA specifically to address 
periodic reports that the Air Transport Association (ATA) plans 
to craft on this issue regarding the FAA's progress on Year 
2000 compliance.

Section 402. Cargo collision avoidance systems deadline

    Section 402 would require all large cargo aircraft to be 
equipped with collision avoidance equipment by the end of 2002. 
This section would not require that a particular type of 
collision avoidance system (e.g., radar-based) be installed on 
such aircraft, but rather that a decision be made on the types 
of technologies that appear to be available in the near term. 
Currently, only passenger aircraft are required to be equipped 
with collision avoidance systems.

Section 403. Runway safety areas

    Section 403 would require the FAA to solicit comments on 
the need for: (1) improving runway safety areas, which are 
essentially runway extensions that provide a landing cushion 
beyond the ends of runways at certificated airports; and (2) 
requiring the installation of precision approach path 
indicators (PAPI), which are visual vertical guidance systems 
for runways. Airline pilots have highlighted these matters as 
important safety issues. Existing FAA regulations call for an 
overrun area of 1,000 feet in length at the end of a runway. 
The FAA has tested materials that are expected to shorten the 
runway safety areas. If successful, such efforts could 
significantly reduce the cost of runway extensions.

Section 404. Airplane emergency locators

    Section 404 would require nearly all fixed-wing aircraft in 
air commerce to be equipped with emergency locator transmitters 
by 2002. Many aircraft are currently required by statute or 
regulation to be equipped with emergency locator transmitters, 
which can help rescuers and National Transportation Safety 
Board investigators find a downed plane more quickly. Aircraft 
powered by turbojets and those used by scheduled air carriers 
are exempt, however. This section would narrow the exemption 
and require additional categories of aircraft to be equipped 
with emergency locator transmitters after 2001. Exempted from 
the requirements would be aircraft used by manufacturers in 
development exercises, and agricultural aircraft used to spray 
crops.

Section 405. Counterfeit aircraft parts

    Section 405 would prohibit anyone, an employee or a 
company, who is convicted of installing, producing, repairing, 
or selling counterfeit aviation parts (sometimes known as bogus 
parts) from having or obtaining an FAA certificate. Any person 
holding virtually any type of FAA certificate, including air 
carriers, repair stations, and manufacturers, would be 
prohibited from employing anyone convicted of an offense 
involving counterfeit parts. This section is modeled on 
provisions in current law that provide for the denial or 
revocation of an FAA certificate from a person convicted of a 
crime involving controlled substances.

Section 406. FAA may fine unruly passengers

    Section 406 would give the FAA explicit authority to fine 
(up to $10,000) unruly airline passengers who interfere with 
the operation or safety of a civil flight.

Section 407. Higher standards for handicapped access

    Section 407(a) would require the Secretary of 
Transportation to work with appropriate international 
organizations to set higher standards (similar to those in the 
U.S.) for the air transportation of disabled passengers, 
particularly in cases where a foreign air carrier code-shares 
with a domestic air carrier.
    Section 407(b) would require the DOT's Office of Civil 
Rights to investigate each complaint of discrimination by a 
disabled passenger against an airline. Currently, complaints 
are merely filed in a data base at DOT and investigated only if 
there appears to be a pattern and practice of discrimination. 
The amendment would also require the DOT to publish disability-
related complaint data, and to implement a plan to help air 
carriers and persons with disabilities to understand the rights 
and responsibilities established by this provision.
    Section 407(c) would adjust the amount (currently $1,000) 
that airlines are fined for discriminating against disabled 
passengers. A carrier would be fined between $500 and $2500 for 
a first violation and between $2500 and $5000 for any 
subsequent violation. The fine would not apply if the airline 
provides the aggrieved individual with a credit or voucher for 
the purchase of a ticket in an amount (determined by the 
Secretary of Transportation) that falls within the new range of 
fines. This section also would clarify that disabled persons 
would not have their private rights of action affected by the 
legislation. Reasonable attorneys' fees and litigation costs 
would be permitted for prevailing complainants.

Section 408. Conveyances of United States Government land

    Section 408 would authorize the FAA to waive deed 
restrictions on surplus airport property, as long as the 
permitted development supports and complements the development 
of the airport, and all revenues remain on the airport.

Section 409. Flight operations quality assurance rules

    Section 409 would require the FAA to accelerate its 
rulemaking on Flight Operations Quality Assurance (FOQA). FOQA 
is a program under which airlines and their crews share 
operational information, including data captured by flight data 
recorders. Sanitized information about crew errors is shared, 
to focus on situations in which hardware, air traffic control 
procedures, or company practices create hazardous situations. 
Through its rulemaking, the FAA would provide assurance that 
information obtained from the program would not be used for 
enforcement purposes, other than criminal and deliberate acts 
that are discovered through such programs. As the National 
Civil Aviation Review Commission and others have pointed out, 
the sharing of information and data will be a crucial element 
in the effort to cut the fatal accident rate by 80 percent by 
2005.

Section 410. Wide Area Augmentation System

    Section 410 would require the FAA to identify or develop a 
plan to maintain a backup system to the Wide Area Augmentation 
System (WAAS), if one is necessary to provide satellite-based 
navigation and landing approach capabilities for civilian use. 
Within six months, the FAA would report to Congress on a 
specific plan and timetable for implementing WAAS, including a 
determination of the intended ultimate use of WAAS (i.e., 
whether it will be the primary or sole means of navigation). 
This section would authorize such sums as are necessary for 
this purpose.

Section 411. Regulation of Alaska air guides

    Section 411 would require the FAA to reissue the notice to 
Alaska guide pilots on the applicability of regulations 
recently imposed on such guide pilot operations.

Section 412. Alaska rural aviation improvement

    Section 412(a) would require the FAA to consider, when 
amending federal aviation regulations in a manner affecting 
intrastate aviation in Alaska, the extent to which Alaska is 
not served by other modes of transportation. It would be within 
the discretion of the FAA, as it deems appropriate, to 
establish regulatory distinctions with regard to these 
considerations. This section codifies a provision that was 
included in the Federal Aviation Reauthorization Act of 1996.
    Section 412(b) would direct the FAA to install closed 
circuit weather surveillance at at least 15 rural airports in 
Alaska, and authorize $2 million for the project. Section 
412(c) would direct the FAA and the National Weather Service to 
institute a ``mike-in-hand'' weather observation program in 
Alaska, so that pilots can get real-time weather advice before 
landing at an airport. Section 412(d) would authorize $4 
million for runway lighting and weather reporting systems at 
remote airports in Alaska.

Section 413. Human Factors Program

    Section 413 would require the FAA, in an effort to improve 
training in the human factors arena, to establish an oversight 
committee for the execution of Advanced Qualification Programs, 
which are alternative methods of qualifying, training, 
certifying, and ensuring the competency of flight crews and 
other operations personnel. In addition, the FAA, NTSB, and the 
industry would establish a process to tie human factors 
training to accident investigations. The FAA also would be 
required to address the concerns and recommendations of the 
National Research Council (NRC) in its recent report on air 
traffic control automation. The FAA, working with the industry, 
would develop specific training curricula to address critical 
human factors safety concerns, including controlled flight into 
terrain, which is a significant cause of accidents worldwide.

Section 414. Independent validation of FAA costs and allocations

    Section 414 would require the DOT Inspector General to 
initiate an independent validation and assessment of the cost 
accounting system that is currently under development by the 
FAA and due for partial implementation at the beginning of 
fiscal year 1999. The purpose of this section is to ensure that 
the agency's method for capturing and distributing its overall 
costs is appropriate and reasonable. Whether or not this system 
is deployed to develop fee systems to fund the FAA, it is 
critical to improve the performance of the FAA. The independent 
verification should give users more confidence in the system.

Section 415. Whistleblower protection for FAA employees

    Section 415 would provide FAA whistleblowers with the 
authority to seek redress if they are subject to retaliation 
for their actions. In 1995, Congress gave the FAA the authority 
to reform its personnel system in order to address the unique 
demands of the agency's workforce. While it exempted the FAA 
from most of the personnel requirements under title 5, United 
States Code, certain enumerated provisions remained applicable 
to the FAA, including 5 U.S.C. 2302(b), relating to 
whistleblower protections. While the whistleblower protections 
of title 5 were maintained for FAA employees, the law did not 
specifically reference provisions for the enforcement of those 
protections. Last year, the Department of Justice's Office of 
Legal Counsel confirmed this and opined that an FAA employee 
could not file a claim alleging retaliatory action with the 
U.S. Office of Special Counsel and the Merit Systems Protection 
Board (MSPB). The DOT's Inspector General recommended that such 
procedures be available to FAA employees. The amendment 
proposed by this section would provide FAA whistleblowers with 
the authority to seek redress from the Office of Special 
Council and the MSPB.

Section 416. Report on modernization of oceanic ATC system

    Section 416 would require the FAA to report on its plans to 
modernize the oceanic air traffic control system. Such plans 
would include a budget for the program, a determination of the 
requirements for modernization, and, if necessary, a proposal 
to fund the program. The Committee believes that it is critical 
that modernization of the oceanic system move forward. Other 
countries appear willing to take control over vast areas of 
oceanic airspace, if the U.S. cannot modernize. Modernization 
should open up more routes, increase efficiency, and save 
consumers time and money for air travel over the oceans.

Section 417. Report on air transportation oversight system

    Section 417 would require the FAA, beginning in 1999, to 
report biannually to the Congress on the air transportation 
oversight system (ATOS) program announced by the agency on May 
13, 1998. The report would include details on the training of 
inspectors, the number of inspectors using the system, air 
carriers subject to the system, and the budget for the system.

Section 418. Recycling of EIS

    Section 418 would allow the Secretary of Transportation to 
authorize the use, in whole or in part, of a completed 
environmental assessment or environmental impact study for a 
new airport project that is substantially similar in nature to 
the one constructed pursuant to such an environmental review. 
This could avoid the unnecessary duplication of expense and 
effort for airport sponsors.
    This section is intended to provide to the Secretary 
discretion to utilize data contained in previously completed 
work for an Environmental Assessment (EA) or an Environmental 
Impact Statement (EIS) for a new project, if the new project is 
substantially similarin nature and scope to the project for 
which the previously completed EA or EIS was completed. For example, 
New Orleans International Airport has submitted drafts of an EIS report 
to the FAA on a parallel instrument flight rules (IFR) runway, and is 
in the final stage of completion of an EA for the conversion of a 
taxiway into a visual flight rules runway. This section would provide 
discretion to the Secretary to utilize data and information contained 
in these reports for a new EIS report that is being prepared for a 
proposed parallel IFR runway at the New Orleans International Airport.

Section 419. Protection of employees providing air safety information

    Section 419 would provide employees of airlines, and 
employees of airline contractors and subcontractors, with 
statutory whistleblower protection. This section is a modified 
version of S. 100 (105th Congress), the Aviation Safety 
Protection Act of 1997. The language in this section is similar 
to whistleblower protection laws that cover employees in other 
industries, such as nuclear energy.
    This section would provide protection to aviation employees 
from retaliation by their employers when reporting violations 
to federal authorities. It would provide a Department of Labor 
complaint procedure for employees who experience employer 
reprisal for reporting such violations, and assures that there 
are strong enforcement and judicial review provisions for fair 
implementation of the protections. The provision also would 
bring the Department of Labor complaint process more in line 
with the Federal Rules of Civil Procedure, particularly with 
respect to Rule 11, which permits sanctions for bad faith and 
frivolous claims. Also, employees who are subject to ongoing 
disciplinary proceedings would not be able to use the 
protections in this provision to their benefit.

Section 420. Improvements to air navigation facilities

    Section 420 would allow the FAA to improve real property 
that it leases from others to house air navigation facilities, 
without regard to the costs of the improvements in relation to 
the lease if: (1) the improvements primarily benefit the 
government; (2) the improvements are essential for mission 
accomplishment; and (3) the government's interest in the 
improvement is protected.

Section 421. Denial of airport access to certain air carriers

    Section 421 would allow certain airports to deny access to 
certain air carriers without such denial being considered 
unjust or unreasonable discrimination. The only airports that 
could deny access would be reliever airports that are located 
within 35 miles of a hub airport and do not have a Part 139 
operating certificate (which allows an airport to handle 
scheduled commercial air service). The only carriers that could 
be denied access would be charter operators that essentially 
hold themselves out to the public as scheduled operators.

Section 422. Tourism

    Section 422 would establish international visitor 
initiatives and an international marketing program. The 
Secretary of Commerce would be required to establish an 
Intergovernmental Task Force for International Visitor 
Assistance. This Task Force would examine: (1) signage at 
transportation facilities in the U.S.; (2) the availability of 
multilingual travel and tourism information; and (3) how to 
facilitate the establishment of a toll-free telephone number to 
assist international tourists coping with an emergency. 
Appropriations would be authorized for the funding of 
promotional activities by the United States National Tourism 
Organization. The Secretary of Commerce would be required to 
submit to Congress an annual report on how appropriated funds 
were spent and the state of international tourism in the U.S. 
generally.

Section 423. Equivalency of FAA and EU safety standards

    Section 423 would require the FAA to determine whether the 
agency's safety regulations are equivalent to certain safety 
standards set by the European Union (EU). If they are 
equivalent, the FAA must work with the Department of Commerce 
to gain acceptance of that determination by the EU.

Section 424. Sense of the Senate on property taxes on public-use 
        airports

    Section 424 would express the Sense of the Senate that (1) 
property taxes on public-use airports should be assessed fairly 
and equitably, regardless of the location of the owner of the 
airport, and (2) the property tax recently assessed on the City 
of The Dalles, Oregon, as the owner and operator of the 
Columbia Gorge Regional/The Dalles Municipal Airport, located 
in the State of Washington, should be repealed.

Section 425. Federal Aviation Administration Personnel Management 
        System

    Section 425 would reinstate the statutory requirement for 
the FAA to adhere to merit system principles and restore the 
right of FAA employees to submit appeals to the MSPB. The FAA 
was exempted from these requirements when it was given 
extensive personnel management freedoms in the FY 1996 DOT 
appropriations act (P.L. 104-50; section 347).

Section 426. Aircraft and aviation component repair and maintenance 
        advisory panel

    Section 426 would establish a panel to review issues 
related to the use and oversight of aircraft and aviation 
component repair and maintenance facilities located within, or 
outside of, the U.S. The panel would be comprised of eight 
industry representatives appointed by the FAA and one 
representative each from the DOT, Department of State, and the 
FAA. To further the work of the panel, the FAA would collect 
relevant information from foreign and domestic repair 
facilities.

Section 427. Authority to sell aircraft and aircraft parts for use in 
        responding to oil spills

    Section 427 would authorize the sale of excess Department 
of Defense (DOD) aircraft to companies that provide dedicated 
aerial dispersant spraying equipment for use on offshore oil 
spills. The DOD could sell aircraft and aircraft parts to a 
person only if the DOT certifies that the person is capable of 
meeting the terms and conditions of a contract to deliver oil 
spill dispersants by air. The DOD would be required to report 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
on the DOD's exercise of authority under this section. Nothing 
in this section could be construed as affecting the authority 
of the FAA, and any aircraft sold under this provision would 
still be required to satisfy all applicable federal aviation 
regulations.

Section 428. Aircraft situational display data

    Section 428 would mandate that any memorandum of 
understanding between the FAA and a person obtaining aircraft 
situational display data from the FAA require that: (1) the 
person demonstrates that he or she is capable of selectively 
blocking the display of any data related to any identified 
aircraft registration number; and (2) the person agrees to 
block selectively the aircraft registration numbers of any 
aircraft owner or operator upon the FAA's request.

Section 429. To express the sense of the Senate concerning a bilateral 
        agreement between the United States and the United Kingdom 
        regarding Charlotte-London route

    Section 429 would express the Sense of the Senate that the 
DOT should: (1) act vigorously to ensure the enforcement of the 
rights of the United States under the Bermuda II Agreement; (2) 
intensify efforts to obtain the necessary assurances from the 
United Kingdom to allow an air carrier of the U.S. to operate 
commercially viable, competitive service for the Charlotte-
London (Gatwick) route; and (3) ensure that the rights of the 
U.S. air carriers are enforced under the Bermuda II Agreement 
before seeking to renegotiate a broader bilateral agreement to 
establish additional rights for U.S. air carriers and U.K. air 
carriers.

Section 430. To express the sense of the Senate concerning a bilateral 
        agreement between the United States and the United Kingdom 
        regarding Cleveland-London route

    Section 430 would express the Sense of the Senate that the 
DOT should: (1) act vigorously to ensure the enforcement of the 
rights of the United States under the Bermuda II Agreement; (2) 
intensify efforts to obtain the necessary assurances from the 
United Kingdom to allow a U.S. air carrier to operate 
commercially viable, competitive service for the Cleveland-
London (Gatwick) route; and (3) ensure that the rights of the 
U.S. air carriers are enforced under the Bermuda II Agreement 
before seeking to renegotiate a broader bilateral agreement to 
establish additional rights for U.S. air carriers and U.K. air 
carriers.

Section 431. Allocation of Trust Fund funding

    Section 431 would require the Treasury Department to report 
annually to the DOT the amount of taxes collected in each state 
during the preceding year that were deposited into the aviation 
trust fund. The DOT would be required to report annually to 
Congress on the contribution of each state to the aviation 
trust fund and the amount of AIP funds that were made available 
to each state.

Section 432. Taos Pueblo and Blue Lakes Wilderness Area demonstration 
        project

    Section 432 would require the FAA to work with the Taos 
Pueblo to study the feasibility of conducting a demonstration 
project to require all aircraft that fly over the Taos Pueblo, 
New Mexico, to maintain a mandatory minimum altitude of at 
least 5,000 feet above ground level.

Section 433. Airline marketing disclosure

    Section 433 would require the DOT to promulgate final 
regulations (within 90 days of enactment) to provide for 
improved oral and written disclosure to each consumer 
concerning the corporate name of the air carrier that provides 
the air transportation purchased by that consumer.

Section 434. Certain air traffic control towers

    Section 434 would require the FAA to use such funds as 
necessary to contract for the operation of certain air traffic 
control towers (located in Salisbury, Maryland; Bozeman, 
Montana; and Boca Raton, Florida), provided that the FAA has 
made a prior determination of eligibility for such towers to be 
included in the contract tower program.

Section 435. Compensation under the Death on the High Seas Act

    Section 435 amends the Death on the High Seas Act (DOHSA) 
to increase the allowable compensation for families of aircraft 
accident victims over international waters. Specifically, this 
section would allow the families of victims of plane crashes 
more than 3 miles off U.S. shores to sue not only for economic 
losses, such as the lost salary of a deceased spouse, but also 
for non-economic losses such as loss of companionship, loss of 
care, and loss of comfort. In addition to economic damages, the 
section would allow a court to make an award for non-economic 
damages that will not exceed the greater of the economic loss 
sustained or a total of $750,000 per victim. Illustratively, if 
the economic loss to an individual was $1 million, then that 
individual could obtain $2 million: $1 million for economic 
losses and $1 million for non-economic damages. But if the 
pecuniary damages are less than $750,000, the maximum that an 
individual could take would be $750,000, in addition to the 
amount determined to cover economic losses. This section would 
be retroactive to the crash of TWA Flight 800.

Section 436. FAA study of breathing hoods

    Section 436 would require the FAA to conduct a study on the 
adequacy of currently available breathing hoods for flight 
crews when smoke is detected on an aircraft.

Section 437. FAA study of alternative power sources for flight data 
        recorders and cockpit voice recorders

    Section 437 would require the FAA to conduct a study on the 
need for alternative power sources for onboard flight data 
recorders and cockpit voice recorders.

Section 438. Passenger facility fee letters of intent

    Section 438 would prohibit the FAA from requiring an 
airport to impose a PFC before the FAA would grant a letter of 
intent (LOI). It is the intent of Congress that the decision to 
impose a PFC is an entirely voluntary local decision. This 
provision simply clarifies that a PFC is not a prerequisite for 
receiving discretionary grant letters of intent.

Section 439. Elimination of HAZMAT enforcement backlog

    Section 439 would direct the FAA to reduce the enforcement 
backlog on hazardous materials (hazmat) cases, and to inform 
Congress of its efforts.

Section 440. Evaluation of long-term capital leasing

    Section 440 would direct the FAA to enter into a limited 
long-term capital leasing demonstration program. The proposal 
is intended to encourage the FAA to lease rather than develop 
complicated capital equipment.

                TITLE V--AVIATION COMPETITION PROMOTION

Section 501. Purposes

    Section 501 explains that the purpose of the four-year 
pilot program established under this title would be to 
facilitate incentives and projects that will help small 
communities improve their access to the air transportation 
system, through public-private partnership.
    The bill is intended to overcome some of these limitations. 
The Committee is also aware of one instance where a small 
airport was able to work with the local community, assess the 
travel needs, determine why it was working and not working, and 
then work with the carrier to make adjustments. The number of 
passengers increased dramatically, and the carrier changed its 
service patterns to accomodate the new found needs. The program 
is intended to facilitate these types of relationships.

Section 502. Establishment of Small Community Aviation Development 
        Program

    Section 502 would require the Secretary of Transportation 
to establish a four-year pilot aviation development program and 
to designate a program director. This section lists the program 
director's functions.
    The program director would report annually to the Secretary 
of Transportation and to Congress on the availability of air 
transportation services in small communities, comparisons of 
air fares in large and small communities, the factors that 
inhibit quality and affordable services in small communities, 
and policy recommendations to address these factors.

Section 503. Community-Carrier Air Service Program

    Section 503 would authorize communities (a term used 
interchangeably with consortia of communities) to assess their 
air service requirements and submit their assessments and 
service proposals to the program director. The program director 
would select communities for participation. The program 
director would invite air carriers to offer service proposals 
in response to or in conjunction with the communities' air 
service assessments.
    The program director would work with small communities and 
air carriers to facilitate the initiation of service. He or she 
would also designate an airport in the program as an Air 
Service Development Zone and work with the community on means 
to attract business to the area surrounding the airport.
    The program director would be able to provide financial 
assistance to communities of up to $500,000 per community, but 
only if the community provides a matching share of 25 percent. 
No more than 40 communities or consortia of communities may 
participate in the four-year pilot program. No more than four 
communities within a state can participate at any given time. 
The community must have established a public-private 
partnership to facilitate service to the public. The program 
director could obligate up to $80 million over the life of the 
four-year program.
    This section focuses on ways to encourage commercial 
service to small communities throughout the U.S. that have not 
benefited from airline deregulation. The section seeks to 
develop public-private partnerships with the local communities, 
air carriers, federal, state, and local officials, to find ways 
to increase service through local initiatives. This program is 
not intended to duplicate the Essential Air Service program, 
which provides a per person subsidy to ensure service to 
communities. The Committee is aware of a number of local 
initiatives that were created to increase ridership and to 
refocus service patterns for small communities. This section 
would continue to encourage and facilitate those kinds of 
initiatives, bringing together whatever federal resources or 
information are available with the local commitment to work 
with the users of air transportation.
    This section incorporates much of S. 1968 from the 105th 
Congress. The bill as originally introduced would have provided 
up to $100 million over five years for a pilot program for up 
to 40 communities or consortia of towns. The bill as reported 
provides a lower level of funding of $80 million, but retains 
the number of communities in the program.
    One of the key elements in the section is the requirement 
that local communities contribute 25 percent of the funding. If 
communities are to increase service, it will be because of a 
local commitment to use the services offered. The local 
contribution can be either an indirect (e.g., seat guarantees) 
or direct funding of activities. The program would terminate in 
four years. It is anticipated that the federal portion of 
funding for a community would decline over the course of the 
community's involvement with the program.
    This section also would establish a four-year pilot program 
to enable applicants to contract for Level I air traffic 
control services at up to 20 facilities (small airports) not 
eligible for participation in the federal contract tower 
program. The 20 airports are not currently eligible, or have 
been notified by the FAA that they may no longer be eligible, 
to participate, according to FAA guidelines in the contract 
tower program. With the cost sharing, however, these airports 
would be able to meet the FAA standards. The program also would 
enable up to three of the participants to cost-share in the 
construction of such towers, with a cap on FAA expenditures for 
each facility of no more than $1 million. The Committee 
believes that this type of program will provide additional 
safety measures for smaller airports.

Section 504. Funding authority

    Section 504 provides that $80 million is authorized to be 
appropriated to the DOT to support the pilot programs in 
Sections 502 and 503 (except for the contract tower program).

Section 505. Marketing practices

    Section 505 would require that, within 180 days of 
enactment, the Secretary review the marketing practices of air 
carriers that may inhibit the availability of quality, 
affordable air transportation services to small and medium-
sized communities. If the Secretary finds that these practices 
constitute an inhibition, the Secretarywould be authorized to 
promulgate regulations that address the problems, or take other 
appropriate action. The legislation clarifies that this section is not 
intended to expand the authority of the Department of Transportation in 
any way.

Section 506. Slot exemptions for nonstop regional jet service

    Section 506 would allow 90 days for the Secretary to 
approve or deny applications for slot exemptions to provide 
nonstop regional jet air service between airports with fewer 
than two million enplanements and the high density airports 
already subject to exemption authority (Chicago O'Hare, New 
York LaGuardia, and New York JFK).
    The Secretary must ensure that the carrier can operate at 
least two daily roundtrip flights per community identified in 
the application, but not more than three daily roundtrip 
flights to that community. In making this determination, the 
Secretary may take into consideration the slots already used by 
the applicant.
    After one year, if the air carrier can demonstrate 
unmitigable losses, the air carrier could apply to the 
Secretary to use the exemption to serve a different airport 
with fewer than two million annual enplanements.
    The Secretary would also give priority consideration to 
applications from air carriers that, as of January 1, 1999, 
hold or operate fewer than 20 slots or slot exemptions at that 
particular airport.

Section 507. Secretary shall grant exemptions to perimeter rule

    Section 507 would require the Secretary to grant 24 daily 
exemptions to the 1,250-mile perimeter rule at the Ronald 
Reagan Washington National Airport, along with the daily air 
carrier slot exemptions at the airport that would be necessary 
to implement this new long-haul service beyond the perimeter.
    The new exemptions are intended to maximize domestic 
network options to Reagan National by allowing carriers to 
serve domestic hubs outside of the current perimeter of 1,250 
miles. The Committee intends to implement a process that will 
provide numerous domestic cities, including small and medium-
sized communities, with improved service.
    The Secretary will make 24 new daily slot exemptions 
available to air carriers to operate aircraft between Reagan 
National and other hub airports currently beyond the perimeter, 
if the Secretary finds that the new service will improve 
competition in the airline industry and by new entrants, 
provide air transportation service with domestic network 
benefits, and result in improved access to Reagan National for 
communities beyond the perimeter.
    In the event that applications are filed for more than 24 
slot exemptions, the Secretary will award new services to 
achieve expanded opportunities to Reagan National, consistent 
with improving competition in the airline industry and 
increasing consumer choice.
    In addition to the slots for long-haul service, 12 new 
daily commuter slot exemptions would be created at Reagan 
National, for service to airports within the perimeter that 
have fewer than two million annual enplanements. The Committee 
intends that the hub classifications under this section be 
determined on an airport-by-airport basis, as the statutes 
clearly call for. Carriers could only use stage 3 aircraft in 
any of the new slot exemptions at Reagan National. Thirty-six 
of the new daily slot exemptions at Reagan National would be 
divided fairly evenly among the hours of 7:00 a.m. and 9:59 
p.m., so that there would be no more than three additional 
operations per hour.
    This section would also add another 12 new slot exemptions 
for service within the perimeter at Reagan National. The slot 
exemptions would not be limited by aircraft and airport size 
restrictions, as are the other within-perimeter exemptions in 
this section.
    During the first 90 days after this bill is enacted, the 
Secretary of Transportation would be required to assess the 
impact of granting new slot exemptions on the environment and 
safety. Assuming safety is not adversely impacted, the 
Secretary would be free to award the slot exemptions.
    Within one year of enactment, and biannually thereafter, 
the Secretary would certify that noise, congestion (both in the 
air and on the ground), safety standards, and adequate air 
service to communities within the perimeter, remain at 
appropriate levels.
    Under this section, the Metropolitan Washington Airports 
Authority would be required to apply for funds for noise 
mitigation projects around Reagan National, and priority 
consideration would be given to noise mitigation projects at 
the four slot-controlled airports.

Section 508. Additional slots at Chicago's O'Hare Airport

    Section 508 would direct the Secretary of Transportation to 
grant 30 additional slot exemptions at the Chicago O'Hare 
International Airport, to be added to the airport's capacity 
over three years. The Secretary would be required to determine 
that the additional capacity is available and can be used 
safely, and to conduct an environmental review. All slots could 
be served only with stage 3 aircraft. The Secretary would also 
be required to conduct a study of noise levels around all of 
the slot-controlled airports, comparing noise levels before and 
after the conversion of aircraft fleets to stage 3.

Section 509. Consumer notification of E-ticket expiration dates

    Section 509 would provide that it shall be an unfair or 
deceptive practice for any air carrier utilizing electronically 
transmitted tickets to fail to notify the purchaser of such a 
ticket of its expiration date, if any. With the growing 
popularity and convenience of electronic ticketing, the 
Committee seeks to ensure that consumers are alerted in an 
appropriate fashion to the expiration date associated with 
electronically transmitted tickets. Industry sources indicate 
that the most common practice among air carriers that offer 
electronic ticketing is to send a written confirmation of the 
transaction to the purchaser shortly after the transaction is 
completed--whether by telephone, or through an on-line 
connection. The written confirmation of the transaction 
typically includes notification of the expiration date. This 
existing practice is sufficient to satisfy the requirement of 
Section 509. If no written confirmation of the transaction is 
provided to the purchaser, however, the air carrier must ensure 
that clear notification of the expiration date is provided--
whether orally, in the case of telephone transactions, or 
throughprominent notification conveyed to purchasers making on-
line purchases.

Section 510. Regional air service incentive options

    Section 510 would require the DOT to study the efficacy of 
a program of federal loan guarantees for the purchase of 
regional jets by commuter air carriers. The study would include 
a review of options for funding, including alternatives to 
federal funding. The DOT must report to the authorizing 
committees on the results of the study within 24 months of 
enactment of the bill.
    The Committee is aware that regional jets may offer new 
opportunities for many communities. The Committee is also aware 
that the composition of the commuter fleet is changing, as more 
and more regional jets are brought into the system by air 
carriers. According to the FAA Aviation Forecast (1998-2009), 
more than 800 regional jets will be part of the domestic fleet, 
up from 107 in 1998. These orders and the placement of these 
aircraft are expected to provide many benefits to the traveling 
public.

Section 511. GAO study on rural air transportation needs

    Section 511 would require the GAO, in conjunction with the 
FAA, to conduct a study to determine the effectiveness of the 
national airport network to meet rural air transportation 
needs. This study should include a way of measuring the 
effectiveness of the airport system with respect to placing 
every citizen of the U.S. within a one-hour drive of an airport 
with a runway of at least 5,000 feet in length.

                  TITLE VI--NATIONAL PARKS OVERFLIGHTS

    This title is intended to reflect the recommendations made 
by the National Parks Overflights Working Group, a joint 
federal advisory committee convened from a group of private 
individuals with broad knowledge and experience in air tour 
operations, commercial air transportation, general aviation, 
and in the policies, resources and management of the national 
parks.
    This title represents a process-oriented piece of 
legislation, which will provide a workable process whereby the 
affected agencies and the public can decide whether commercial 
air tour activity is appropriate over a particular national 
park unit and, if so, under what conditions such air tours may 
or may not take place.
    The process is designed to let the affected agencies, the 
FAA and the NPS, work out how best to address the needs of the 
air tour industry, preservation of our parks, and the needs of 
visitors and others who enjoy or rely on our parks. Each park 
is different, however, and each presents unique circumstances. 
A plan adopted for one park may not fit the needs of another 
park. The process developed in this title should be broad 
enough to deal with these situations, while recognizing the 
rights and responsibilities of each of the affected agencies.
    The Committee intends that the FAA and the NPS work 
cooperatively to develop an effective regulatory framework 
based on principles that apply National Park System-wide, and 
practices that can be applied as needed to individual park 
units from small cultural sites in urban areas to large natural 
areas. The Committee intends that the agencies work 
cooperatively to protect the resources and values of the 
national parks and the interests of all who visit and enjoy 
these national treasures today and in future generations, in a 
framework that represents and serves all interests 
appropriately.
    With this legislation, the Committee intends that the 
agencies work together to preserve quiet in the national parks. 
The Committee agrees with the National Parks Overflights 
Working Group and recognizes that the natural sounds are an 
inherent component of ``the scenery and the natural and 
historic objects and the wild life'' within national parks that 
the NPS was charged to protect in its organic legislation. As 
such, in a park where ``natural quiet'' is a concern to park 
managers and is recognized by those managers and the public, 
every ground visitor should have the opportunity to enjoy quiet 
and the sounds of nature ``unimpaired'' in at least a portion 
of the park, or at least a portion of the time. This principle 
recognizes that natural quiet is not an important attribute for 
all national parks, such as historic sites in urban settings. 
It also recognizes that for national parks where natural quiet 
is an expressed concern, visitors are entitled to experience 
it.
    For some parks, the Committee recognizes that preservation 
of natural quiet, and the assurance that visitors can enjoy the 
sounds of nature, may require banning commercial air tour 
operations over the park altogether. For other parks, this goal 
may be achieved by restricting commercial air tours in some 
areas, or during some periods of time, while allowing air tours 
in other areas where a similar concern is absent.
    The Committee intends that the development of ATMPs 
pursuant to this legislation be a fully cooperative process 
between the FAA and the NPS, which preserves the essential 
responsibilities of each agency. The Committee further intends 
that the FAA retains its role as the sole manager of America's 
airspace, and its responsibility to ensure a safe and efficient 
air transport system, and that the NPS retains its 
responsibility and authority to protect park resources and 
values, and visitor experiences. Operators who wish to conduct 
commercial air tours over a national park unit must apply to 
the FAA for operations specifications. The NPS determines 
potential impacts to the park and visitor opportunities. The 
FAA and the NPS jointly conduct the ATMP process, and each 
agency must sign the required environmental and decision 
documents.
    The final decision to prohibit, authorize or authorize with 
conditions any air tour over a park is translated into 
regulatory specifications issued by the FAA. The Committee 
specifically intends that these specifications reflect the 
decisions and reflect the conditions recommended in the ATMP.
    The Committee intends that this legislation applies solely 
to commercial air tour operations as defined in the text of the 
legislation. While other forms of aviation can and do affect 
natural quiet in the national parks, commercial air tours are 
the focus of concern for a variety of reasons. Such operations 
by their nature fly passengers for hire purposefully over the 
park units, at relatively low altitudes, at frequent intervals, 
and often to the very locations and attractions favored by 
ground-based visitors. Commercial air tour operators solicit 
business based on this type of service.
    The Committee has used these characteristics to define air 
tour operations, and has provided lateral boundaries for the 
legislation identical to those defined by the National Parks 
Overflights Working Group, while leaving the minimum effective 
altitude to the judgment of the FAA and the NPS. Nevertheless, 
the Committee recognizes that the Working Group achieved near 
unanimity in its recommendation that the minimum altitude be 
set at 5,000 feet above ground level (AGL). The Committee 
further recognizes that any altitude below 5,000 feet AGL would 
differentially affect the ability of rotor and fixed-wing air 
tour operators to provide commercially attractive tours, and 
would therefore be discriminatory.

Section 601. Findings

    Section 601 sets forth six findings establishing the 
general basis for enactment of the provisions contained in 
Title VII of the bill.

Section 602. Air tour management plans for national parks

    Section 602 would require that commercial air tour 
operators, in order to conduct air tour operations over a 
national park or tribal lands, conduct their tours in 
accordance with any ATMP that is in effect for that park or 
those tribal lands. The commercial air tour operator would have 
to apply for authority to conduct operations over a park, and 
the Administrator of the FAA would prescribe operating 
conditions and limitations (operations specifications) for each 
commercial air tour operator, in accordance with the 
appropriate ATMP.
    For purposes of this section, the term ``national park'' 
means any unit of the National Park System. The term ``tribal 
lands'' means Indian Country that is within or abutting a 
national park (up to one-half mile beyond the boundary of the 
park). The term ``effective'' means any air tour management 
plan that has been agreed to by the FAA and the NPS, and has 
been approved and issued by the FAA.
    If an ATMP limits the number of commercial air tours over a 
national park area during a specified time frame, the FAA 
Administrator and the Director of the NPS would authorize 
commercial air tour operators to provide the service, in 
accordance with an open and competitive process developed by 
the FAA Administrator and the NPS Director. This section sets 
out the factors for consideration in approving proposals for 
commercial air tours in situations where the capacity is 
limited. In considering the experience of the applicant in 
commercial air tour operations over other national parks or 
scenic areas, the Committee intends for the FAA and the NPS to 
consider the experience of the operator with regard to comments 
or complaints, and the operator's experience in dealing with 
ground-based concerns.
    This section also would require that commercial air tour 
operators over national parks and tribal lands meet the FAA 
safety criteria codified in 14 C.F.R. Part 135 or Part 121. 
Certain commercial air tour operators, however, could conduct 
business under the standards of 14 C.F.R. Part 91. The operator 
would be required to secure a letter of agreement from the FAA 
Administrator and the park superintendent for that national 
park, describing the conditions for flight operations. The 
total number of operations underthis Part 91 exception would be 
limited to no more than five flights in any 30-day period over a 
particular park.
    Upon enactment of the bill, existing commercial air tour 
operators would have 90 days to apply to the FAA for operating 
authority under 14 C.F.R. Part 135 or Part 121. Any new entrant 
commercial air tour operator would be required to apply for the 
authority before it can begin commercial air tour operations 
over a national park or tribal lands. The FAA would have to act 
on these applications within 24 months.
    This section would also direct the FAA Administrator, in 
cooperation with the Director of the NPS, to establish an ATMP 
for any national park or tribal land whenever a commercial air 
tour operator applies for the authority to conduct tours over 
the park or tribal land, if an ATMP is not already in place. 
This requirement applies automatically if commercial air tours 
already exist over the national park or tribal land.
    This section also specifies that the development of an ATMP 
would be a cooperative undertaking between the FAA and the NPS. 
An ATMP would be developed through a public process, and the 
final record of decision is subject to judicial review. This 
subsection would establish the objective of an ATMP, which is 
to develop acceptable and effective measures to mitigate the 
significant adverse impacts, if any, of commercial air tours 
upon the natural and cultural resources and visitor experiences 
at national parks and tribal lands. Significant adverse impacts 
include impacts that compromise or otherwise negatively affect 
the abilities of ground visitors to experience the sounds of 
the national park unit in its intended context.
    In developing an ATMP, the FAA and the NPS would conduct 
the environmental analysis provided for by the National 
Environmental Policy Act of 1969 (NEPA). Both the FAA 
Administrator and the NPS Director would have to sign the 
environmental decision document for each park before proceeding 
with development of the ATMP. If either agency fails to sign or 
refuses to sign, the ATMP will be considered premature and not 
in force. This section lists the possible contents of an ATMP, 
and requires justification and documentation for any measures 
adopted in the ATMP.
    This section also would set out the procedure for 
developing an ATMP. The procedure would require at least one 
public meeting, publication in the Federal Register for notice 
and comment, and the solicitation of Indian tribe participation 
when the tribe's lands are, or may be, overflown by aircraft 
involved in commercial air tour operations over a national 
park. This procedure would be governed by Council on 
Environmental Quality (CEQ) regulations. For purposes of the 
CEQ regulations, the FAA would be the lead agency and the NPS 
would be a cooperating agency. Affected Indian tribes may 
participate in the ATMP development as a cooperating agency.
    Amendments to ATMPs would be published in the Federal 
Register for notice and comment.
    Existing commercial air tour operators at national parks 
would apply to the FAA Administrator, and the FAA Administrator 
would grant these operators interim operating authority until 
the ATMP for that national park is complete. The FAA 
Administrator would authorize the operator to conduct the same 
number of tour flights that the operator conducted over the 
past year (or the annual average of the past three years, 
whichever is higher). In order to increase operations, the 
commercial air tour operator would have to obtain the approval 
of the FAA Administrator and the NPS Director.
    The interim operating authority would be published in the 
Federal Register to provide notice and opportunity for comment. 
It could be revoked by the FAA Administrator for cause, 
including the failure to comply with any of the terms of the 
interim authority, such as the failure to promote the 
protection of national park resources and park experiences as 
they relate to visitors on the ground. In any event, it would 
terminate 180 days after an ATMP is developed for the national 
park. Modifications to the interim operating authority are 
allowed if the modification improves the protection of national 
park resources and the protection of tribal lands, in the 
estimate of the land managers.
    New entrants would not be allowed to conduct commercial air 
tour operations over a national park until the ATMP for that 
park is developed. If the agencies have not developed an ATMP 
for a park within 24 months of enactment, however, the 
Secretary of Transportation would have the authority to grant 
new entrants interim operating authority if the competitive 
circumstances warrant.
    This section also contains definitions for terms used in 
this title. The provisions of this section would not apply to 
the Grand Canyon National Park, due to existing statutes 
addressing air tours over the Grand Canyon. For the same 
reason, this section would exempt flights over Lake Mead if 
they are part of air tours of the Grand Canyon. Specifically, 
this section would exempt flights over Lake Mead if they are 
exclusively part of air tours of the Grand Canyon. Air tours 
over Lake Mead that do not merely transit the lake would be 
subject to the Lake Mead ATMP process.
    This section would prohibit the application of the new 
section 40125 of title 49, United States Code, anywhere in 
Alaska. The Committee also intends that the section exempt 
Alaska from the Advisory Group study on the impact of the 
legislation and from the overflight fee report.
    In 1987, Congress mandated a study by the Secretary of the 
Interior, acting through the Director of the NPS, to determine 
the impacts that overflights of aircraft have on park unit 
resources. Section 1(c) of the legislation required research at 
six named parks and four unnamed parks to be identified at the 
discretion of the NPS. Section 1(c) expressly excluded all NPS 
units in Alaska from the research and the study.
    The Committee recognizes the important role of aircraft in 
everyday life in Alaska and wishes to continue to ensure 
Alaskans are not prejudiced. The congressional preservation in 
Alaska of an express and affirmative right to air access to 
federal lands in section 1110 of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3170) is not affected by this 
title, and there has been no identified need since this 
historic statute was enacted to change course with respect to 
this policy. The Committee notes that the July 31, 1997, 
testimony of Mr. Destry Jarvis of the NPS before the Committee 
confirmed that the 1995 report submitted pursuant to the 1987 
act did not address national parks in Alaska.

Section 603. Advisory group

    Section 603 would require that, within one year of 
enactment, the FAA Administrator and the NPS Director establish 
an advisory group to provide continuing advice and counsel with 
respect to the operation of commercial air tours over and near 
national parks. The membership would consist of a balanced 
group of representatives of general aviation, commercial air 
tour operators, environmental concerns, Indian tribes, the FAA, 
and the NPS. The FAA and the NPS representatives would serve 
alternating one-year terms as chairman of the advisory group.
    Among its duties, the advisory group would provide 
recommendations on the designation of commonly accepted quiet 
aircraft technologies, which are to be given preferential 
treatment in the ATMPs. The FAA and the NPS are required to 
report back in two years on the success of this section in 
providing incentives for the adoption of quiet aircraft 
technology.

Section 604. Overflight fee report

    Section 604 would require the FAA Administrator, within 180 
days of enactment, to report to Congress on the effects of 
overflight fees on the commercial air tour industry. The report 
would include the viability of a tax credit for operators equal 
to the amount of the fee charged by the NPS, as well as the 
financial effects that these proposed offsets are likely to 
have on FAA budgets and appropriations.

Section 605. Prohibition of commercial air tours over Rocky Mountain 
        National Park

    Section 605 prohibits commercial air tours of the Rocky 
Mountain National Park.

               TITLE VII--TITLE 49 TECHNICAL CORRECTIONS

Section 701. Restatement of 49 U.S.C. 106(g)

    Section 701 would restate section 106(g) of title 49. The 
original enactment that created the Department of 
Transportation in 1966 (P.L. 89-670; October 15, 1966) 
contained a provision (paragraph 6(c)(1)) stating the FAA 
Administrator's duty to carry out aviation safety functions in 
certain sections and certain titles of the FAA Act. By 
referring to titles of the FAA Act in some cases rather than 
specific sections, paragraph 6(c)(1) had the effect of being a 
``container''--that is, whenever a new section was added to 
titles VI, VII, IX, and XII of the FAA Act, the new section was 
automatically included in the listing of the Administrator's 
aviation safety duties.
    In 1983, paragraph 6(c)(1) of the 1966 DOT Act was replaced 
by 49 U.S.C. 106(g) as part of a recodification project. The 
new section 106(g) restated the original language closely and 
referred to the same list of titles of the FAA Act (and thus 
retained the same ``containers''). In 1994, the recodification 
project was completed by enactment of P.L. 103-272 (July 5, 
1994). As part of the project, the FAA Act was repealed in its 
entirety and its provisions were enacted into positive law as a 
portion of title 49. This meant that the 106(g) references to 
titles of the FAA Act no longer functioned, and the 1994 
restatement took the conservative approach of restating 106(g) 
by listing every section found in the listed titles on the 
dateof enactment. This ensured precision in the restated text of 49 
U.S.C. 106(g).
    This approach to restatement of section 106(g) without 
reliance on ``containers'' has produced an unintended anomaly. 
In its aviation safety enactments subsequent to July 1994, 
Congress has added new safety provisions to Part A of Subtitle 
VII of title 49 (which restates the FAA Act of 1958). As just 
noted, merely including a new provision in a particular title 
of the FAA Act (for example, title VI) would, in the past, have 
had the effect of also including it within the coverage of 
section 106(g). In contrast, inclusion in title VI's 
counterpart (chapter 447) no longer does this automatically 
because of the changed drafting approach in 106(g). An example 
of a provision recently added to chapter 447 (but not included 
in section 106(g)'s coverage, as would have likely been the 
case in the past) is 49 U.S.C. 44724 (Manipulation of flight 
controls).
    Congress intended inclusion of section 44724 and several 
other recently enacted safety provisions in the coverage of 
section 106(g). Future drafting of new safety provisions, for 
inclusion in selected chapters of title 49, would be simplified 
by returning to the ``container'' approach to section 106(g). 
Accordingly, this section of the bill contains a proposed 
restatement of section 106(g) to accomplish this result. 
Subsection (b) would ensure that the change cannot be construed 
to change substantive law in any respect.

Section 702. Restatement of 49 U.S.C. 44909

    Section 702 would restate section 44909 of title 49, which 
specifies that an air carrier shall provide a ``passenger 
manifest'' (a list of passengers aboard a flight) for its 
international flights, and that the manifest ``shall'' include 
certain information. However, the original enactment (now 
repealed) provided that the manifest ``should'' include certain 
information, making explicit the flexibility afforded the 
Secretary of Transportation in specifying the information 
included in the manifest requirement (see Section 203 of P.L. 
101-604, November 16, 1990). In order to make this flexibility 
clearer, and in recognition that the 1994 recodification 
expressly stated that it made no substantive change in law, the 
proposed technical correction would replace the word ``shall'' 
with the original word ``should'' in 49 U.S.C. 44909(a)(2).

                     ADDITIONAL VIEWS FROM MR. LOTT

    Last year this committee and the full Senate overwhelmingly 
approved the Wendell H. Ford National Air Transportation System 
Improvement Act. This legislation included measures that made 
modest modifications at America's busiest airports including 
Reagan National Airport in the Washington area. These Reagan 
National modifications promised to bring improved air service 
from our Nation's capital to small and under served 
communities.
    One of the big-ticket modifications of the Ford Act was an 
additional twenty-four daily flights to or from Reagan 
National. Twelve new daily flights would be dedicated to 
airports within the perimeter, and an equal number would go to 
flights beyond the perimeter. This figure was agreed to by key 
members of the Senate, including the affected state, last 
summer.
    Unfortunately, the Senate bill did not become law, and a 
short six month FAA/AIP extension was signed by the 
Administration, a period which expires exactly one month from 
today. In light of the short time span that Congress has to 
secure a long-term reauthorization, Chairman McCain and other 
members of the Committee on Commerce, Science & Transportation 
introduced S. 82, the Air Transportation Improvement Act, which 
paralleled the major aviation policy changes and intentions of 
the Ford Act including the Reagan National provisions.
    During last month's Commerce Committee executive session, 
one attempt to increase the number of additional daily flights 
to Reagan National was successful. S. 82, as amended, would 
push this figure from twenty-four additional flights to forty-
eight additional flights. This change in this year's aviation 
bill has seriously strained the delicate agreement on Reagan 
National slots from last year.
    I have spoken with several of my Colleagues on this issue 
and they are extremely concerned about the ramifications this 
change will have on S. 82's future in the Senate and on 
resolving differences with the House position. Many Members 
have expressed an interest in returning to last year's increase 
of twenty-four, a number that almost all of the Senate voted to 
approve in October.
    America's airports, big and small, only have four weeks to 
witness the passage of legislation that will reauthorize AIP 
funds and implement the major aviation policy changes of this 
year's Senate bill. Congress has enough time to adopt an air 
service bill with few points of contention, namely the 
differences between 1998's House and Senate bills. However, if 
additional daily flights at Reagan National outside of last 
summer's agreement are kept in S. 82, then the prospects for 
the Senate bill becoming law appear less likely.
    Chairman McCain and ranking member Hollings are to be 
commended for their efforts to quickly bring FAA/AIP 
legislation to the Senate floor. I share their interest in 
preventing a lapse in airport funding. However, in light of the 
colossal hurdles the Senate must clear to seek passage of S. 
82, I recommend that it revisit the original figure of twenty-
four additional daily flights at Reagan National. After all, 
less than six months ago ninety-two Senators voiced approval 
for this figure. If the Senate can come back to this original 
agreement, then we can focus our attention on other important 
aviation policies.
                                                        Trent Lott.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

                       death on the high seas act

                 amount and apportionment of recovery.

    Sec. 2 [46 U.S.C. App. 762] (a) In General._The recovery in 
such suit shall be a fair and just compensation for the 
pecuniary loss sustained by the persons for whose benefit the 
suit is brought and shall be apportioned among them by the 
court in proportion to the loss they may severally have 
suffered by reason of the death of the person by whose 
representative the suit is brought.
    (b) Commercial Aviation.--
          (1) In general.--If the death was caused during 
        commercial aviation, additional compensation for 
        nonpecuniary damages for wrongful death of a decedent 
        is recoverable in a total amount, for all beneficiaries 
        of that decedent, that shall not exceed the greater of 
        the pecuniary loss sustained or a sum total of $750,000 
        from all defendants for all claims. Punitive damages 
        are not recoverable.
          (2) Inflation adjustment.--The $750,000 amount shall 
        be adjusted, beginning in calendar year 2000 by the 
        increase, if any, in the Consumer Price Index for all 
        urban consumers for the prior year over the Consumer 
        Price Index for all urban consumers for the calendar 
        year 1998.
          (3) Nonpecuniary damages.--For purposes of this 
        subsection, the term ``nonpecuniary damages'' means 
        damages for loss of care, comfort, and companionship.

                        TITLE 49. TRANSPORTATION

                SUBTITLE I. DEPARTMENT OF TRANSPORTATION

                        CHAPTER 1. ORGANIZATION

Sec. 102. Department of Transportation

    (a) The Department of Transportation is an executive 
department of the United States Government at the seat of 
Government.
    (b) The head of the Department is the Secretary of 
Transportation. The Secretary is appointed by the President, by 
and with the advice and consent of the Senate.
    (c) The Department has a Deputy Secretary of Transportation 
appointed by the President, by and with the advice and consent 
of the Senate. The Deputy Secretary--
          (1) shall carry out duties and powers prescribed by 
        the Secretary; and
          (2) acts for the Secretary when the Secretary is 
        absent or unable to serve or when the office of 
        Secretary is vacant.
    (d) The Department has an Associate Deputy Secretary 
appointed by the President, by and with the advice and consent 
of the Senate. The Associate Deputy Secretary shall carry out 
powers and duties prescribed by the Secretary.
    (e) The Department has 4 Assistant Secretaries and a 
General Counsel appointed by the President, by and with the 
advice and consent of the Senate. The Department also has an 
Assistant Secretary of Transportation for Administration 
appointed in the competitive service by the Secretary, with the 
approval of the President. They shall carry out duties and 
powers prescribed by the Secretary. An Assistant Secretary or 
the General Counsel, in the order prescribed by the Secretary, 
acts for the Secretary when the Secretary and the Deputy 
Secretary are absent or unable to serve, or when the offices of 
the Secretary and Deputy Secretary are vacant.
    (f) The Department shall have a seal that shall be 
judicially recognized.
    (g) Small Community Air Service Development Program.--
          (1) Establishment.--The Secretary shall establish a 
        4-year pilot aviation development program to be 
        administered by a program director designated by the 
        Secretary.
          (2) Functions.--The program director shall--
                  (A) function as a facilitator between small 
                communities and air carriers;
                  (B) carry out section 41743 of this title;
                  (C) carry out the airline service restoration 
                program under sections 41744, 41745, and 41746 
                of this title;
                  (D) ensure that the Bureau of Transportation 
                Statistics collects data on passenger 
                information to assess the service needs of 
                small communities;
                  (E) work with and coordinate efforts with 
                other Federal, State, and local agencies to 
                increase the viability of service to small 
                communities and the creation of aviation 
                development zones; and
                  (F) provide policy recommendations to the 
                Secretary and the Congress that will ensure 
                that small communities have access to quality, 
                affordable air transportation services.
          (3) Reports.--The program director shall provide an 
        annual report to the Secretary and the Congress 
        beginning in 2000 that--
                  (A) analyzes the availability of air 
                transportation services in small communities, 
                including, but not limited to, an assessment of 
                the air fares charged for air transportation 
                services in small communities compared to air 
                fares charged for air transportation services 
                in larger metropolitan areas and an assessment 
                of the levels of service, measured by types of 
                aircraft used, the availability of seats, and 
                scheduling of flights, provided to small 
                communities;
                  (B) identifies the policy, economic, 
                geographic and marketplace factors that inhibit 
                the availability of quality, affordable air 
                transportation services to small communities; 
                and
                  (C) provides policy recommendations to 
                address the policy, economic, geographic, and 
                marketplace factors inhibiting the availability 
                of quality, affordable air transportation 
                services to small communities.

Sec. 106. Federal Aviation Administration

    (a) The Federal Aviation Administration is an 
administration in the Department of Transportation.
    (b) The head of the Administration is the Administrator. 
The Administration has a Deputy Administrator. They are 
appointed by the President, by and with the advice and consent 
of the Senate. When making an appointment, the President shall 
consider the fitness of the individual to carry out efficiently 
the duties and powers of the office. Except as provided in 
subsection (f) or in other provisions of law, the Administrator 
reports directly to the Secretary of Transportation. The term 
of office for any individual appointed as Administrator after 
August 23, 1994, shall be 5 years.
    (c) The Administrator must--
      (1) be a citizen of the United States;
      (2) be a civilian; and
      (3) have experience in a field directly related to 
aviation.
    (d)(1) The Deputy Administrator must be a citizen of the 
United States and have experience in a field directly related 
to aviation. An officer on active duty in an armed force may be 
appointed as Deputy Administrator. However, if the 
Administrator is a former regular officer of an armed force, 
the Deputy Administrator may not be an officer on active duty 
in an armed force, a retired regular officer of an armed force, 
or a former regular officer of an armed force.
    (2) An officer on active duty or a retired officer serving 
as Deputy Administrator is entitled to hold a rank and grade 
not lower than that held when appointed as Deputy 
Administrator. The Deputy Administrator may elect to receive 
(A) the pay provided by law for the Deputy Administrator, or 
(B) the pay and allowances or the retired pay of the military 
grade held. If the Deputy Administrator elects to receive the 
military pay and allowances or retired pay, the Administration 
shall reimburse the appropriate military department from funds 
available for the expenses of the Administration.
    (3) The appointment and service of a member of the armed 
forces as a Deputy Administrator does not affect the status, 
office, rank, or grade held by that member, or a right or 
benefit arising from the status, office, rank, or grade. The 
Secretary of a military department does not control the member 
when the member is carrying out duties and powers of the Deputy 
Administrator.
    (e) The Administrator and the Deputy Administrator may not 
have a pecuniary interest in, or own stock in or bonds of, an 
aeronautical enterprise, or engage in another business, 
vocation, or employment.
    (f) Authority of the Secretary and the Administrator.--
          (1) Authority of the secretary.--Except as provided 
        in paragraph (2), the Secretary of Transportation shall 
        carry out the duties and powers, and controls the 
        personnel and activities, of the Administration. 
        Neither the Secretary nor the Administrator may submit 
        decisions for the approval of, or be bound by the 
        decisions or recommendations of, a committee, board, or 
        organization established by executive order.
          (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) 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).
          (4) 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.
    (g) Duties and Powers of Administrator.--
          (1) Except as provided in paragraph (2) of this 
        subsection, the Administrator shall carry out--
                  (A) duties and powers of the Secretary of 
                Transportation under subsection (f) of this 
                section related to aviation safety (except 
                those related to transportation, packaging, 
                marking, or description of hazardous material) 
                and stated in sections 308(b), 1132(c) and (d), 
                40101(c), 40103(b), 40106(a), 40108, 40109(b), 
                [40113(a), (c), and (d), 40114(a), 40119, 
                44501(a) and (c), 44502(a)(1), (b), and (c), 
                44504, 44505, 44507, 44508, 44511-44513, 44701-
                44716, 44718(c), 44721(a), 44901, 44902, 
                44903(a)-(c) and (e), 44906, 44912, 44935-
                44937, and 44938(a) and (b), chapter 451, 
                sections 45302-45304,] 40113(a), (c)-(e), 
                40114(a), and 40119, and chapter 445 (except 
                sections 44501(b), 44502(a)(2)-(4), 44503, 
                44506, 44509, 44510, 44514, and 44515), chapter 
                447 (except sections 44717, 44718(a) and (b), 
                44719, 44720, 44721(b), 44722, and 44723), 
                chapter 449 (except sections 44903(d), 44904, 
                44905, 44907-44911, 44913, 44915, and 44931-
                44934), chapter 451, chapter 453, sections 
                46104, 46301(d) and (h)(2), 46303(c), 46304-
                46308, 46310, 46311, and 46313-46316, chapter 
                465, and sections 47504(b) (related to flight 
                procedures), 47508(a), and 48107 of this title; 
                and
                  (B) additional duties and powers prescribed 
                by the Secretary of Transportation.
          (2) In carrying out sections 40119, 44901, 44903(a)-
        (c) and (e), 44906, 44912, 44935-44937, 44938(a) and 
        (b), and 48107 of this title, paragraph (1)(A) of this 
        subsection does not apply to duties and powers vested 
        in the Director of Intelligence and Security by section 
        44931 of this title.
    (h) Section 40101(d) of this title applies to duties and 
powers specified in subsection (g)(1) of this section. Any of 
those duties and powers may be transferred to another part of 
the Department only when specifically provided by law or a 
reorganization plan submitted under chapter 9 of title 5. A 
decision of the Administrator in carrying out those duties or 
powers is administratively final.
    (i) The Deputy Administrator shall carry out duties and 
powers prescribed by the Administrator. The Deputy 
Administrator acts for the Administrator when the Administrator 
is absent or unable to serve, or when the office of the 
Administrator is vacant.
    (j) There is established within the Federal Aviation 
Administration an institute to conduct civil aeromedical 
research under section 44507 of this title. Such institute 
shall be known as the ``Civil Aeromedical Institute''. Research 
conducted by the institute should take appropriate advantage of 
capabilities of other government agencies, universities, or the 
private sector.
    [(k) Authorization of Appropriations for Operations.--There 
is authorized to be appropriated to the Secretary of 
Transportation for operations of the Administration 
$5,158,000,000 for fiscal year 1997 and $5,344,000,000 for 
fiscal year 1998.]
    (k) Authorization of Appropriations for Operations.--
          (1) In general.--There are authorized to be 
        appropriated to the Secretary of Transportation for 
        operations of the Administration $5,631,000,000 for 
        fiscal year 1999 and $5,784,000,000 for fiscal year 
        2000. Of the amounts authorized to be appropriated for 
        fiscal year 1999, not more than $9,100,000 shall be 
        used to support air safety efforts through payment of 
        United States membership obligations, to be paid as 
        soon as practicable.
          (2) Authorized expenditures.--Of the amounts 
        appropriated under paragraph (1) $450,000 may be used 
        for wildlife hazard mitigation measures and management 
        of the wildlife strike database of the Federal Aviation 
        Administration.
          (3) University consortium.--There are authorized to 
        be appropriated not more than $9,100,000 for the 3 
        fiscal year period beginning with fiscal year 1999 to 
        support a university consortium established to provide 
        an air safety and security management certificate 
        program, working cooperatively with the Federal 
        Aviation Administration and United States air carriers. 
        Funds authorized under this paragraph--
                  (A) may not be used for the construction of a 
                building or other facility; and
                  (B) shall be awarded on the basis of open 
                competition.
    (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.
          (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.
    (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.
    (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.
    (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.
    (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.
    (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.

                           Public Law 104-50

                         (49 U.S.C. 106, note)

    Sec. 347. (a) In consultation with the employees of the 
Federal Aviation Administration and such non-governmental 
experts in personnel management systems as he may employ, and 
notwithstanding the provisions of title 5, United States Code, 
and other Federal personnel laws, the Administrator of the 
Federal Aviation Administration shall develop and implement, 
not later than January 1, 1996, a personnel management system 
for the Federal Aviation Administration that addresses the 
unique demands on the agency's workforce. Such a new system 
shall, at a minimum, provide for greater flexibility in the 
hiring, training, compensation, and location of personnel.
    (b) The provisions of title 5, United States Code, shall 
not apply to the new personnel management system developed and 
implemented pursuant to subsection (a), with the exception of--
          (1) section 2302(b), relating to whistleblower 
        protection;
          (2) sections 3308-3320, relating to veterans' 
        preference;
          (3) section 7116(b)(7), relating to limitations on 
        the right to strike;
          (4) section 7204, relating to antidiscrimination;
          (5) chapter 73, relating to suitability, security, 
        and conduct;
          (6) chapter 81, relating to compensation for work 
        injury; [and]
          (7) chapters 83-85, 87, and 89, relating to 
        retirement, unemployment compensation, and insurance 
        [coverage.] coverage; and
          (8) sections 1204, 1211-1218, 1221, and 7701-7703, 
        relating to the Merit Systems Protection Board.
    [(c) This section shall take effect on April 1, 1996.]
    (c) Appeals to Merit Systems Protection Board.--Under the 
new personnel management system developed and implemented under 
subsection (a), an employee of the Federal Aviation 
Administration may submit an appeal to the Merit Systems 
Protection Board and may seek judicial review of any resulting 
final orders or decisions of the Board from any action that was 
appealable to the Board under any law, rule, or regulation as 
of March 31, 1996.

                        TITLE 49. TRANSPORTATION

                 SUBTITLE IV. INTERSTATE TRANSPORTATION

                       PART C. PIPELINE CARRIERS

     CHAPTER 159. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES

Sec. 15904. Rights and remedies of persons injured by pipeline carriers

    (a) Enforcement of Orders.--A person injured because a 
pipeline carrier providing transportation or service subject to 
this part does not obey an order of the Board, except an order 
for the payment of money, may bring a civil action to enforce 
that order under this subsection.
    (b) Liability of Carrier.--
          (1) Excessive charges.--A pipeline carrier providing 
        transportation subject to this part is liable to a 
        person for amounts charged that exceed the applicable 
        rate for the transportation.
          (2) Damages.--A pipeline carrier providing 
        transportation subject to this part is liable for 
        damages sustained by a person as a result of an act or 
        omission of that carrier in violation of this part.
    (c) Complaints.--
          (1) Filing.--A person may file a complaint with the 
        Board under 15901(b) or bring a civil action under 
        subsection (b) to enforce liability against a pipeline 
        carrier providing transportation subject to this part.
          (2) Payment deadline.--When the Board makes an award 
        under subsection (b), the Board shall order the carrier 
        to pay the amount awarded by a specific date. The Board 
        may order a carrier providing transportation subject to 
        this part to pay damages only when the proceeding is on 
        complaint. The person for whose benefit an order of the 
        Board requiring the payment of money is made may bring 
        a civil action to enforce that order under this 
paragraph if the carrier does not pay the amount awarded by the date 
payment was ordered to be made.
    (d) Civil Actions.--
          (1) Complaint.--When a person begins a civil action 
        under subsection (b) to enforce an order of the Board 
        requiring the payment of damages by a pipeline carrier 
        providing transportation subject to this part, the text 
        of the order of the Board must be included in the 
        complaint. In addition to the district courts of the 
        United States, a State court of general jurisdiction 
        having jurisdiction of the parties has jurisdiction to 
        enforce an order under this paragraph. The findings and 
        order of the Board are competent evidence of the facts 
        stated in them. Trial in a civil action brought in a 
        district court of the United States under this 
        paragraph is in the judicial district in which the 
        plaintiff resides or in which the principal operating 
        office of the carrier is located. In a civil action 
        under this paragraph, the plaintiff is liable for only 
        those costs that accrue on an appeal taken by the 
        plaintiff.
          (2) Attorney's fees.--The district court shall award 
        a reasonable attorney's fee as a part of the damages 
        for which a carrier is found liable under this 
        subsection. The district court shall tax and collect 
        that fee as a part of the costs of the action.

                    CHAPTER 401. GENERAL PROVISIONS

Sec. 40102. Definitions

    (a) General Definitions.--In this part--
          (1) ``aeronautics'' means the science and art of 
        flight.
          (2) ``air carrier'' means a citizen of the United 
        States undertaking by any means, directly or 
        indirectly, to provide air transportation.
          (3) ``air commerce'' means foreign air commerce, 
        interstate air commerce, the transportation of mail by 
        aircraft, the operation of aircraft within the limits 
        of a Federal airway, or the operation of aircraft that 
        directly affects, or may endanger safety in, foreign or 
        interstate air commerce.
          (4) ``air navigation facility'' means a facility 
        used, available for use, or designed for use, in aid of 
        air navigation, including--
                  (A) a landing area;
                  (B) a light;
                  (C) apparatus or equipment for distributing 
                weather information, signaling, radio-
                directional finding, or radio or other 
                electromagnetic communication; and
                  (D) another structure or mechanism for 
                guiding or controlling flight in the air or the 
                landing and takeoff of aircraft.
          (5) ``air transportation'' means foreign air 
        transportation, interstate air transportation, or the 
        transportation of mail by aircraft.
          (6) ``aircraft'' means any contrivance invented, 
        used, or designed to navigate, or fly in, the air.
          (7) ``aircraft engine'' means an engine used, or 
        intended to be used, to propel an aircraft, including a 
        part, appurtenance, and accessory of the engine, except 
        a propeller.
          (8) ``airman'' means an individual--
                  (A) in command, or as pilot, mechanic, or 
                member of the crew, who navigates aircraft when 
                under way;
                  (B) except to the extent the Administrator of 
                the Federal Aviation Administration may provide 
                otherwise for individuals employed outside the 
                United States, who is directly in charge of 
                inspecting, maintaining, overhauling, or 
                repairing aircraft, aircraft engines, 
                propellers, or appliances; or
                  (C) who serves as an aircraft dispatcher or 
                air traffic control-tower operator.
          (9) ``airport'' means a landing area used regularly 
        by aircraft for receiving or discharging passengers or 
        cargo.
          (10) ``all-cargo air transportation'' means the 
        transportation by aircraft in interstate air 
        transportation of only property or only mail, or both.
          (11) ``appliance'' means an instrument, equipment, 
        apparatus, a part, an appurtenance, or an accessory 
        used, capable of being used, or intended to be used, in 
        operating or controlling aircraft in flight, including 
        a parachute, communication equipment, and another 
        mechanism installed in or attached to aircraft during 
        flight, and not a part of an aircraft, aircraft engine, 
        or propeller.
          (12) ``cargo'' means property, mail, or both.
          (13) ``charter air carrier'' means an air carrier 
        holding a certificate of public convenience and 
        necessity that authorizes it to provide charter air 
        transportation.
          (14) ``charter air transportation'' means charter 
        trips in air transportation authorized under this part.
          (15) ``citizen of the United States'' means--
                  (A) an individual who is a citizen of the 
                United States;
                  (B) a partnership each of whose partners is 
                an individual who is a citizen of the United 
                States; or
                  (C) a corporation or association organized 
                under the laws of the United States or a State, 
                the District of Columbia, or a territory or 
                possession of the United States, of which the 
                president and at least two-thirds of the board 
                of directors and other managing officers are 
                citizens of the United States, and in which at 
                least 75 percent of the voting interest is 
                owned or controlled by persons that are 
                citizens of the United States.
          (16) ``civil aircraft'' means an aircraft except a 
        public aircraft.
          (17) ``civil aircraft of the United States'' means an 
        aircraft registered under chapter 441 of this title.
          (18) ``conditional sales contract'' means a 
        contract--
                  (A) for the sale of an aircraft, aircraft 
                engine, propeller, appliance, or spare part, 
                under which the buyer takes possession of the 
                property but title to the property vests in the 
                buyer at a later time on--
                          (i) paying any part of the purchase 
                        price;
                          (ii) performing another condition; or
                          (iii) the happening of a contingency; 
                        or
                  (B) to bail or lease an aircraft, aircraft 
                engine, propeller, appliance, or spare part, 
                under which the bailee or lessee--
                          (i) agrees to pay an amount 
                        substantially equal to the value of the 
                        property; and
                          (ii) is to become, or has the option 
                        of becoming, the owner of the property 
                        on complying with the contract.
          (19) ``conveyance'' means an instrument, including a 
        conditional sales contract, affecting title to, or an 
        interest in, property.
          (20) ``Federal airway'' means a part of the navigable 
        airspace that the Administrator designates as a Federal 
        airway.
          (21) ``foreign air carrier'' means a person, not a 
        citizen of the United States, undertaking by any means, 
        directly or indirectly, to provide foreign air 
        transportation.
          (22) ``foreign air commerce'' means the 
        transportation of passengers or property by aircraft 
        for compensation, the transportation of mail by 
        aircraft, or the operation of aircraft in furthering a 
        business or vocation, between a place in the United 
        States and a place outside the United States when any 
        part of the transportation or operation is by aircraft.
          (23) ``foreign air transportation'' means the 
        transportation of passengers or property by aircraft as 
        a common carrier for compensation, or the 
        transportation of mail by aircraft, between a place in 
        the United States and a place outside the United States 
        when any part of the transportation is by aircraft.
          (24) ``interstate air commerce'' means the 
        transportation of passengers or property by aircraft 
        for compensation, the transportation of mail by 
        aircraft, or the operation of aircraft in furthering a 
        business or vocation--
                  (A) between a place in--
                          (i) a State, territory, or possession 
                        of the United States and a place in the 
                        District of Columbia or another State, 
                        territory, or possession of the United 
                        States;
                          (ii) a State and another place in the 
                        same State through the airspace over a 
                        place outside the State;
                          (iii) the District of Columbia and 
                        another place in the District of 
                        Columbia; or
                          (iv) a territory or possession of the 
                        United States and another place in the 
                        same territory or possession; and
                  (B) when any part of the transportation or 
                operation is by aircraft.
          (25) ``interstate air transportation'' means the 
        transportation of passengers or property by aircraft as 
        a common carrier for compensation, or the 
        transportation of mail by aircraft--
                  (A) between a place in--
                          (i) a State, territory, or possession 
                        of the United States and a place in the 
                        District of Columbia or another State, 
                        territory, or possession of the United 
                        States;
                          (ii) Hawaii and another place in 
                        Hawaii through the airspace over a 
                        place outside Hawaii;
                          (iii) the District of Columbia and 
                        another place in the District of 
                        Columbia; or
                          (iv) a territory or possession of the 
                        United States and another place in the 
                        same territory or possession; and
                  (B) when any part of the transportation is by 
                aircraft.
          (26) ``intrastate air carrier'' means a citizen of 
        the United States undertaking by any means to provide 
        only intrastate air transportation.
          (27) ``intrastate air transportation'' means the 
        transportation by a common carrier of passengers or 
        property for compensation, entirely in the same State, 
        by turbojet-powered aircraft capable of carrying at 
        least 30 passengers.
          (28) ``landing area'' means a place on land or water, 
        including an airport or intermediate landing field, 
        used, or intended to be used, for the takeoff and 
        landing of aircraft, even when facilities are not 
        provided for sheltering, servicing, or repairing 
        aircraft, or for receiving or discharging passengers or 
        cargo.
          (28A) ``limited incumbent air carrier'' has the 
        meaning given that term in subpart S of part 93 of 
        title 14, Code of Federal Regulations, except that 
        ``20'' shall be substituted for ``12'' in sections 
        93.213(a)(5), 93.223(c)(3), and 93.225(h) as such 
        sections were in effect on August 1, 1998.
          (29) ``mail'' means United States mail and foreign 
        transit mail.
          (30) ``navigable airspace'' means airspace above the 
        minimum altitudes of flight prescribed by regulations 
        under this subpart and subpart III of this part, 
        including airspace needed to ensure safety in the 
        takeoff and landing of aircraft.
          (31) ``navigate aircraft'' and ``navigation of 
        aircraft'' include piloting aircraft.
          (32) ``operate aircraft'' and ``operation of 
        aircraft'' mean using aircraft for the purposes of air 
        navigation, including--
                  (A) the navigation of aircraft; and
                  (B) causing or authorizing the operation of 
                aircraft with or without the right of legal 
                control of the aircraft.
          (33) ``person'', in addition to its meaning under 
        section 1 of title 1, includes a governmental authority 
        and a trustee, receiver, assignee, and other similar 
        representative.
          (34) ``predatory'' means a practice that violates the 
        antitrust laws as defined in the first section of the 
        Clayton Act (15 U.S.C. 12).
          (35) ``price'' means a rate, fare, or charge.
          (36) ``propeller'' includes a part, appurtenance, and 
        accessory of a propeller.
          (37) ``public aircraft''--
                  (A) means an aircraft--
                          (i) used only for the United States 
                        Government;
                          (ii) owned by the United States 
                        Government and operated by any person 
                        for purposes related to crew training, 
                        equipment development, or 
                        demonstration; or
                          (iii) owned and operated (except for 
                        commercial purposes), or exclusively 
                        leased for at least 90 continuous days, 
                        by a government (except the United 
                        States Government), including a State, 
                        the District of Columbia, or a 
                        territory or possession of the United 
                        States, or political subdivision of 
                        that government; but
                  (B) does not include a government-owned 
                aircraft--
                          (i) transporting property for 
                        commercial purposes; or
                          (ii) transporting passengers other 
                        than--
                                  (I) transporting (for other 
                                than commercial purposes) 
                                crewmembers or other persons 
                                aboard the aircraft whose 
                                presence is required to 
                                perform, or is associated with 
                                the performance of, a 
                                governmental function such as 
                                firefighting, search and 
                                rescue, law enforcement, 
                                aeronautical research, or 
                                biological or geological 
                                resource management; [or]
                                  (II) transporting (for other 
                                than commercial purposes) 
                                persons aboard the aircraft if 
                                the aircraft is operated by the 
                                Armed Forces or an intelligence 
                                agency of the United [States.] 
                                States; or
                                  (III) transporting persons 
                                aboard the aircraft if the 
                                aircraft is operated for the 
                                purpose of prisoner transport.
An aircraft described in the preceding sentence shall, 
notwithstanding any limitation relating to use of the aircraft 
for commercial purposes, be considered to be a public aircraft 
for the purposes of this part without regard to whether the 
aircraft is operated by a unit of government on behalf of 
another unit of government, pursuant to a cost reimbursement 
agreement between such units of government, if the unit of 
government on whose behalf the operation is conducted certifies 
to the Administrator of the Federal Aviation Administration 
that the operation was necessary to respond to a significant 
and imminent threat to life or property (including natural 
resources) and that no service by a private operator was 
reasonably available to meet the threat.
          (38) ``spare part'' means an accessory, appurtenance, 
        or part of an aircraft (except an aircraft engine or 
        propeller), aircraft engine (except a propeller), 
        propeller, or appliance, that is to be installed at a 
        later time in an aircraft, aircraft engine, propeller, 
        or appliance.
          (39) ``State authority'' means an authority of a 
        State designated under State law--
                  (A) to receive notice required to be given a 
                State authority under subpart II of this part; 
                or
                  (B) as the representative of the State before 
                the Secretary of Transportation in any matter 
                about which the Secretary is required to 
                consult with or consider the views of a State 
                authority under subpart II of this part.
          (40) ``ticket agent'' means a person (except an air 
        carrier, a foreign air carrier, or an employee of an 
        air carrier or foreign air carrier) that as a principal 
        or agent sells, offers for sale, negotiates for, or 
        holds itself out as selling, providing, or arranging 
        for, air transportation.
          (41) ``United States'' means the States of the United 
        States, the District of Columbia, and the territories 
        and possessions of the United States, including the 
        territorial sea and the overlying airspace.
    (b) Limited definition. In subpart II of this part, 
``control'' means control by any means.

Sec. 40113. Administrative

    (a) General Authority.--The Secretary of Transportation (or 
the Administrator of the Federal Aviation Administration with 
respect to aviation safety duties and powers designated to be 
carried out by the Administrator) may take action the Secretary 
or Administrator, as appropriate, considers necessary to carry 
out this part, including conducting investigations, prescribing 
regulations, standards, and procedures, and issuing orders.
    (b) Hazardous Material.--In carrying out this part, the 
Secretary has the same authority to regulate the transportation 
of hazardous material by air that the Secretary has under 
section 5103 of this title. However, this subsection does not 
prohibit or regulate the transportation of a firearm (as 
defined in section 232 of title 18) or ammunition for a 
firearm, when transported by an individual for personal use.
    (c) Governmental Assistance.--The Secretary (or the 
Administrator of the Federal Aviation Administration with 
respect to aviation safety duties and powers designated to be 
carried out by the Administrator) may use the assistance of the 
Administrator of the National Aeronautics and Space 
Administration and any research or technical department, 
agency, or instrumentality of the United States Government on 
matters related to aircraft fuel and oil, and to the design, 
material, workmanship, construction, performance, maintenance, 
and operation of aircraft, aircraft engines, propellers, 
appliances, and air navigation facilities. Each department, 
agency, and instrumentality may conduct scientific and 
technical research, investigations, and tests necessary to 
assist the Secretary or Administrator of the Federal Aviation 
Administration in carrying out this part. This part does not 
authorize duplicating laboratory research activities of a 
department, agency, or instrumentality.
    (d) Indemnification.--The Administrator of the Federal 
Aviation Administration may indemnify an officer or employee of 
the Administration against a claim or judgment arising out of 
an act that the Administrator decides was committed within the 
scope of the official duties of the officer or employee.
    (e) Assistance to Foreign Aviation Authorities.--
          (1) Safety-related training and operational 
        services.--The Administrator may provide safety-related 
        training and operational services to foreign aviation 
        authorities with or without reimbursement, if the 
        Administrator determines that providing such services 
        promotes aviation safety. To the extent practicable, 
        air travel reimbursed under this subsection shall be 
        conducted on United States air carriers.
          (2) Reimbursement sought.--The Administrator shall 
        actively seek reimbursement for services provided under 
        this subsection from foreign aviation authorities 
        capable of providing such reimbursement.
          (3) Crediting appropriations.--Funds received by the 
        Administrator pursuant to this section shall be 
        credited to the appropriation from which the expenses 
        were incurred in providing such services.
          (4) Reporting.--Not later than December 31, 1995, and 
        annually thereafter, the Administrator shall transmit 
        to Congress a list of the foreign aviation authorities 
        to which the Administrator provided services under this 
        subsection in the preceding fiscal year. Such list 
        shall specify the dollar value of such services and any 
        reimbursement received for such services.
    (f) Application of Certain Regulations to Alaska.--In 
amending 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. 40117. Passenger facility fees

    (a) Definitions.--In this section--
          (1) ``airport'', ``commercial service airport'', and 
        ``public agency'' have the same meanings given those 
        terms in section 47102 of this title.
          (2) ``eligible agency'' means a public agency that 
        controls a commercial service airport.
          (3) ``eligible airport-related project'' means a 
        project--
                  (A) for airport development or airport 
                planning under subchapter I of chapter 471 of 
                this title;
                  (B) for terminal development described in 
                section 47110(d) of this title;
                  (C) for airport noise capability planning 
                under section 47505 of this title;
                  (D) to carry out noise compatibility measures 
                eligible for assistance under section 47504 of 
                this title, whether or not a program for those 
                measures has been approved under section 47504; 
                and
                  (E) for constructing gates and related areas 
                at which passengers board or exit aircraft.
          (4) ``passenger facility fee'' means a fee imposed 
        under this section.
          (5) ``passenger facility revenue'' means revenue 
        derived from a passenger facility fee.
    (b) General Authority.--
          (1) The Secretary of Transportation may authorize 
        under this section an eligible agency to impose a 
        passenger facility fee of $1, $2, or $3 on each paying 
        passenger of an air carrier or foreign air carrier 
        boarding an aircraft at an airport the agency controls 
        to finance an eligible airport-related project, 
        including making payments for debt service on 
        indebtedness incurred to carry out the project, to be 
        carried out in connection with the airport or any other 
        airport the agency controls.
          (2) A State, political subdivision of a State, or 
        authority of a State or political subdivision that is 
        not the eligible agency may not regulate or prohibit 
        the imposition or collection of a passenger facility 
        fee or the use of the passenger facility revenue.
          (3) A passenger facility fee may be imposed on a 
        passenger of an air carrier or foreign air carrier 
        originating or connecting at the commercial service 
        airport that the agency controls.
    (c) Applications.--
          (1) An eligible agency must submit to the Secretary 
        an application for authority to impose a passenger 
        facility fee. The application shall contain information 
        and be in the form that the Secretary may require by 
        regulation.
          (2) Before submitting an application, the eligible 
        agency must provide reasonable notice to, and an 
        opportunity for consultation with, air carriers and 
        foreign air carriers operating at the airport. The 
        Secretary shall prescribe regulations that define 
        reasonable notice and contain at least the following 
        requirements:
                  (A) The agency must provide written notice of 
                individual projects being considered for 
                financing by a passenger facility fee and the 
                date and location of a meeting to present the 
                projects to air carriers and foreign air 
                carriers operating at the airport.
                  (B) Not later than 30 days after written 
                notice is provided under subparagraph (A) of 
                this paragraph, each air carrier and foreign 
                air carrier operating at the airport must 
                provide to the agency written notice of receipt 
                of the notice. Failure of a carrier to provide 
                the notice may be deemed certification of 
                agreement with the project by the carrier under 
                subparagraph (D) of this paragraph.
                  (C) Not later than 45 days after written 
                notice is provided under subparagraph (A) of 
                this paragraph, the agency must conduct a 
                meeting to provide air carriers and foreign air 
                carriers with descriptions of projects and 
                justifications and a detailed financial plan 
                for projects.
                  (D) Not later than 30 days after the meeting, 
                each air carrier and foreign air carrier must 
                provide to the agency certification of 
                agreement or disagreement with projects (or 
                total plan for the projects). Failure to 
                provide the certification is deemed 
                certification of agreement with the project by 
                the carrier. A certification of disagreement is 
                void if it does not contain the reasons for the 
                disagreement.
          (3) After receiving an application, the Secretary 
        shall provide notice and an opportunity to air 
        carriers, foreign air carriers, and other interested 
        persons to comment on the application. The Secretary 
        shall make a final decision on the application not 
        later than 120 days after receiving it.
    (d) Limitations on Approving Applications.--The Secretary 
may approve an application that an eligible agency has 
submitted under subsection (c) of this section to finance a 
specific project only if the Secretary finds, based on the 
application, that--
          (1) the amount and duration of the proposed passenger 
        facility fee will result in revenue (including interest 
        and other returns on the revenue) that is not more than 
        the amount necessary to finance the specific project;
          (2) each project is an eligible airport-related 
        project that will--
                  (A) preserve or enhance capacity, safety, or 
                security of the national air transportation 
                system;
                  (B) reduce noise resulting from an airport 
                that is part of the system; or
                  (C) provide an opportunity for enhanced 
                competition between or among air carriers and 
                foreign air carriers; and
          (3) the application includes adequate justification 
        for each of the specific projects.
    (e) Limitations on Imposing Fees.--
          (1) An eligible agency may impose a passenger 
        facility fee only--
                  (A) if the Secretary approves an application 
                that the agency has submitted under subsection 
                (c) of this section; and
                  (B) subject to terms the Secretary may 
                prescribe to carry out the objectives of this 
                section.
          (2) A passenger facility fee may not be collected 
        from a passenger--
                  (A) for more than 2 boardings on a one-way 
                trip or a trip in each direction of a round 
                trip;
                  (B) for the boarding to an eligible place 
                under subchapter II of chapter 417 of this 
                title for which essential air service 
                compensation is paid under subchapter II; [and]
                  (C) enplaning at an airport if the passenger 
                did not pay for the air transportation which 
                resulted in such enplanement, including any 
                case in which the passenger obtained the ticket 
                for the air transportation with a frequent 
                flier award coupon without monetary [payment.] 
                payment; and
                  (D) in Alaska aboard an aircraft having a 
                seating capacity of less than 20 passengers; 
                and
                  (E) on flights, including flight segments, 
                between 2 or more points in Hawaii.
    (f) Limitations on Contracts, Leases, and Use Agreements.--
          (1) A contract between an air carrier or foreign air 
        carrier and an eligible agency made at any time may not 
        impair the authority of the agency to impose a 
        passenger facility fee or to use the passenger facility 
        revenue as provided in this section.
          (2) A project financed with a passenger facility fee 
        may not be subject to an exclusive long-term lease or 
        use agreement of an air carrier or foreign air carrier, 
        as defined by regulations of the Secretary.
          (3) A lease or use agreement of an air carrier or 
        foreign air carrier related to a project whose 
        construction or expansion was financed with a passenger 
        facility fee may not restrict the eligible agency from 
        financing, developing, or assigning new capacity at the 
        airport with passenger facility revenue.
    (g) Treatment of Revenue.--
          (1) Passenger facility revenue is not airport revenue 
        for purposes of establishing a price under a contract 
        between an eligible agency and an air carrier or 
        foreign air carrier.
          (2) An eligible agency may not include in its price 
        base the part of the capital costs of a project paid 
        for by using passenger facility revenue to establish a 
        price under a contract between the agency and an air 
        carrier or foreign air carrier.
          (3) For a project for terminal development, gates and 
        related areas, or a facility occupied or used by at 
        least one air carrier or foreign air carrier on an 
        exclusive or preferential basis, a price payable by an 
        air carrier or foreign air carrier using the facilities 
        must at least equal the price paid by an air carrier or 
        foreign air carrier using a similar facility at the 
        airport that was not financed with passenger facility 
        revenue.
          (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.
    (h) Compliance.--
          (1) As necessary to ensure compliance with this 
        section, the Secretary shall prescribe regulations 
        requiring recordkeeping and auditing of accounts 
        maintained by an air carrier or foreign air carrier and 
        its agent collecting a passenger facility fee and by 
        the eligible agency imposing the fee.
          (2) The Secretary periodically shall audit and review 
        the use by an eligible agency of passenger facility 
        revenue. After review and a public hearing, the 
        Secretary may end any part of the authority of the 
        agency to impose a passenger facility fee to the extent 
        the Secretary decides that the revenue is not being 
        used as provided in this section.
          (3) The Secretary may set off amounts necessary to 
        ensure compliance with this section against amounts 
        otherwise payable to an eligible agency under 
        subchapter I of chapter 471 of this title if the 
        Secretary decides a passenger facility fee is excessive 
        or that passenger facility revenue is not being used as 
        provided in this section.
    (i) Regulations.--The Secretary shall prescribe regulations 
necessary to carry out this section. The regulations--
          (1) may prescribe the time and form by which a 
        passenger facility fee takes effect; [and]
          (2) shall--
                  (A) require an air carrier or foreign air 
                carrier and its agent to collect a passenger 
                facility fee that an eligible agency imposes 
                under this section;
                  (B) establish procedures for handling and 
                remitting money collected;
                  (C) ensure that the money, less a uniform 
                amount the Secretary determines reflects the 
                average necessary and reasonable expenses (net 
                of interest accruing to the carrier and agent 
                after collection and before remittance) 
                incurred in collecting and handling the fee, is 
                paid promptly to the eligible agency for which 
                they are collected; and
                  (D) require that the amount collected for any 
                air transportation be noted on the ticket for 
                that air [transportation.] transportation; and
          (3) may permit a public agency to request that 
        collection of a passenger facility fee be waived for--
                  (A) passengers enplaned by any class of air 
                carrier or foreign air carrier if the number of 
                passengers enplaned by the carriers in the 
                class constitutes not more than one percent of 
                the total number of passengers enplaned 
                annually at the airport at which the fee is 
                imposed; or
                  (B) passengers enplaned on a flight to an 
                airport--
                          (i) that has fewer than 2,500 
                        passenger boardings each year and 
                        receives scheduled passenger service; 
                        or
                          (ii) in a community which has a 
                        population of less than 10,000 and is 
                        not connected by a land highway or 
                        vehicular way to the land-connected 
                        National Highway System within a State.
    (j) Shell of Terminal Building.--In order to enable 
additional air service by an air carrier with less than 50 
percent of the scheduled passenger traffic at an airport, the 
Secretary may consider the shell of a terminal building 
(including heating, ventilation, and air conditioning) and 
aircraft fueling facilities adjacent to an airport terminal 
building to be an eligible airport-related project under 
subsection (a)(3)(E).

           *       *       *       *       *       *       *


Sec. 40125. Severable services contracts for periods crossing fiscal 
                    years

    (a) In General.--The Administrator of the Federal Aviation 
Administration may enter into a contract for procurement of 
severable services for a period that begins in one fiscal year 
and ends in the next fiscal year if (without regard to any 
option to extend the period of the contract) the contract 
period does not exceed one year.
    (b) Obligation of Funds.--Funds made available for a fiscal 
year may be obligated for the total amount of a contract 
entered into under the authority of subsection (a) of this 
section.

Sec. 40126. Overflights of national parks

    (a) In General.--
          (1) General requirements.--A commercial air tour 
        operator may not conduct commercial air tour operations 
        over a national park or tribal lands except--
                  (A) in accordance with this section;
                  (B) in accordance with conditions and 
                limitations prescribed for that operator by the 
                Administrator; and
                  (C) in accordance with any effective air tour 
                management plan for that park or those tribal 
                lands.
          (2) Application for operating authority.--
                  (A) Application required.--Before commencing 
                commercial air tour operations over a national 
                park or tribal lands, a commercial air tour 
                operator shall apply to the Administrator for 
                authority to conduct the operations over that 
                park or those tribal lands.
                  (B) Competitive bidding for limited capacity 
                parks.--Whenever a commercial air tour 
                management plan limits the number of commercial 
                air tour flights over a national park area 
                during a specified time frame, the 
                Administrator, in cooperation with the 
                Director, shall authorize commercial air tour 
                operators to provide such service. The 
                authorization shall specify such terms and 
                conditions as the Administrator and the 
                Director find necessary for management of 
                commercial air tour operations over the 
                national park. The Administrator, in 
                cooperation with the Director, shall develop an 
                open competitive process for evaluating 
                proposals from persons interested in providing 
                commercial air tour services over the national 
                park. In making a selection from among various 
                proposals submitted, the Administrator, in 
                cooperation with the Director, shall consider 
                relevant factors, including--
                          (i) the safety record of the company 
                        or pilots;
                          (ii) any quiet aircraft technology 
                        proposed for use;
                          (iii) the experience in commercial 
                        air tour operations over other national 
                        parks or scenic areas;
                          (iv) the financial capability of the 
                        company;
                          (v) any training programs for pilots; 
                        and
                          (vi) responsiveness to any criteria 
                        developed by the National Park Service 
                        or the affected national park.
                  (C) Number of operations authorized.--In 
                determining the number of authorizations to 
                issue to provide commercial air tour service 
                over a national park, the Administrator, in 
                cooperation with the Director, shall take into 
                consideration the provisions of the air tour 
                management plan, the number of existing 
                commercial air tour operators and current level 
                of service and equipment provided by any such 
                companies, and the financial viability of each 
                commercial air tour operation.
                  (D) Cooperation with nps.--Before granting an 
                application under this paragraph, the 
                Administrator shall, in cooperation with the 
                Director, develop an air tour management plan 
                in accordance with subsection (b) and implement 
                such plan.
                  (E) Time limit on response to atmp 
                applications.--The Administrator shall act on 
                any such application and issue a decision on 
                the application not later than 24 months after 
                it is received or amended.
          (3) Exception.--Notwithstanding paragraph (1), 
        commercial air tour operators may conduct commercial 
        air tour operations over a national park under part 91 
        of the Federal Aviation Regulations (14 CFR 91.1 et 
        seq.) if--
                  (A) such activity is permitted under part 119 
                (14 CFR 119.1(e)(2));
                  (B) the operator secures a letter of 
                agreement from the Administrator and the 
                national park superintendent forthat national 
park describing the conditions under which the flight operations will 
be conducted; and
                  (C) the total number of operations under this 
                exception is limited to not more than 5 flights 
                in any 30-day period over a particular park.
          (4) Special rule for safety requirements.--
        Notwithstanding subsection (c), an existing commercial 
        air tour operator shall, not later than 90 days after 
        the date of enactment of the Air Transportation 
        Improvement Act, apply for operating authority under 
        part 119, 121, or 135 of the Federal Aviation 
        Regulations (14 CFR Pt. 119, 121, or 135). A new 
        entrant commercial air tour operator shall apply for 
        such authority before conducting commercial air tour 
        operations over a national park or tribal lands.
    (b) Air Tour Management Plans.--
          (1) Establishment of atmps.--
                  (A) In general.--The Administrator shall, in 
                cooperation with the Director, establish an air 
                tour management plan for any national park or 
                tribal land for which such a plan is not 
                already in effect whenever a person applies for 
                authority to operate a commercial air tour over 
                the park. The development of the air tour 
                management plan is to be a cooperative 
                undertaking between the Federal Aviation 
                Administration and the National Park Service. 
                The air tour management plan shall be developed 
                by means of a public process, and the agencies 
                shall develop information and analysis that 
                explains the conclusions that the agencies make 
                in the application of the respective criteria. 
                Such explanations shall be included in the 
                Record of Decision and may be subject to 
                judicial review.
                  (B) Objective.--The objective of any air tour 
                management plan shall be to develop acceptable 
                and effective measures to mitigate or prevent 
                the significant adverse impacts, if any, of 
                commercial air tours upon the natural and 
                cultural resources and visitor experiences and 
                tribal lands.
          (2) Environmental determination.--In establishing an 
        air tour management plan under this subsection, the 
        Administrator and the Director shall each sign the 
        environmental decision document required by section 102 
        of the National Environmental Policy Act of 1969 (42 
        U.S.C. 4332) which may include a finding of no 
        significant impact, an environmental assessment, or an 
        environmental impact statement, and the Record of 
        Decision for the air tour management plan.
          (3) Contents.--An air tour management plan for a 
        national park--
                  (A) may prohibit commercial air tour 
                operations in whole or in part;
                  (B) may establish conditions for the conduct 
                of commercial air tour operations, including 
                commercial air tour routes, maximum or minimum 
                altitudes, time-of-day restrictions, 
                restrictions for particular events, maximum 
                number of flights per unit of time, intrusions 
                on privacy on tribal lands, and mitigation of 
                noise, visual, or other impacts;
                  (C) shall apply to all commercial air tours 
                within \1/2\ mile outside the boundary of a 
                national park;
                  (D) shall include incentives (such as 
                preferred commercial air tour routes and 
                altitudes, relief from caps and curfews) for 
                the adoption of quiet aircraft technology by 
                commercial air tour operators conducting 
                commercial air tour operations at the park;
                  (E) shall provide for the initial allocation 
                of opportunities to conduct commercial air 
                tours if the plan includes a limitation on the 
                number of commercial air tour flights for any 
                time period; and
                  (F) shall justify and document the need for 
                measures taken pursuant to subparagraphs (A) 
                through (E).
          (4) Procedure.--In establishing a commercial air tour 
        management plan for a national park, the Administrator 
        and the Director shall--
                  (A) initiate at least one public meeting with 
                interested parties to develop a commercial air 
                tour management plan for the park;
                  (B) publish the proposed plan in the Federal 
                Register for notice and comment and make copies 
                of the proposed plan available to the public;
                  (C) comply with the regulations set forth in 
                sections 1501.3 and 1501.5 through 1501.8 of 
                title 40, Code of Federal Regulations (for 
                purposes of complying with those regulations, 
                the Federal Aviation Administration is the lead 
                agency and the National Park Service is a 
                cooperating agency); and
                  (D) solicit the participation of any Indian 
                tribe whose tribal lands are, or may be, 
                overflown by aircraft involved in commercial 
                air tour operations over a national park or 
                tribal lands, as a cooperating agency under the 
                regulations referred to in paragraph (4)(C).
          (5) Amendments.--Any amendment of an air tour 
        management plan shall be published in the Federal 
        Register for notice and comment. A request for 
        amendment of an air tour management plan shall be made 
        in such form and manner as the Administrator may 
        prescribe.
    (c) Interim Operating Authority.--
          (1) In general.--Upon application for operating 
        authority, the Administrator shall grant interim 
        operating authority under this paragraph to a 
        commercial air tour operator for a national park or 
        tribal lands for which the operator is an existing 
        commercial air tour operator.
          (2) Requirements and limitations.--Interim operating 
        authority granted under this subsection--
                  (A) shall provide annual authorization only 
                for the greater of--
                          (i) the number of flights used by the 
                        operator to provide such tours within 
                        the 12-month period prior to the date 
                        of enactment of the Air Transportation 
                        Improvement Act; or
                          (ii) the average number of flights 
                        per 12-month period used by the 
                        operator to provide such tours within 
                        the 36-month period prior to such date 
                        of enactment, and, for seasonal 
                        operations, the number of flights so 
                        used during the season or seasons 
                        covered by that 12-month period;
                  (B) may not provide for an increase in the 
                number of operations conducted during any time 
                period by the commercial air tour operator to 
                which it is granted unless the increase is 
                agreed to by the Administrator and the 
                Director;
                  (C) shall be published in the Federal 
                Register to provide notice and opportunity for 
                comment;
                  (D) may be revoked by the Administrator for 
                cause;
                  (E) shall terminate 180 days after the date 
                on which an air tour management plan is 
                established for that park or those tribal 
                lands; and
                  (F) shall--
                          (i) promote protection of national 
                        park resources, visitor experiences, 
                        and tribal lands;
                          (ii) promote safe operations of the 
                        commercial air tour;
                          (iii) promote the adoption of quiet 
                        technology, as appropriate; and
                          (iv) allow for modifications of the 
                        operation based on experience if the 
                        modification improves protection of 
                        national park resources and values and 
                        of tribal lands.
          (3) New entrant air tour operators.--
                  (A) In general.--The Administrator, in 
                cooperation with the Director, may grant 
                interim operating authority under this 
                paragraph to an air tour operator for a 
                national park for which that operator is a new 
                entrant air tour operator if the Administrator 
                determines the authority is necessary to ensure 
                competition in the provision of commercial air 
                tours over that national park or those tribal 
                lands.
                  (B) Safety limitation.--The Administrator may 
                not grant interim operating authority under 
                subparagraph (A) if the Administrator 
                determines that it would create a safety 
                problem at that park or on tribal lands, or the 
                Director determines that it would create a 
                noise problem at that park or on tribal lands.
                  (C) ATMP limitation.--The Administrator may 
                grant interim operating authority under 
                subparagraph (A) of this paragraph only if the 
                air tour management plan for the park or tribal 
                lands to which the application relates has not 
                been developed within 24 months after the date 
                of enactment of the Air Transportation 
                Improvement Act.
    (d) Definitions.--In this section, the following 
definitions apply:
          (1) Commercial air tour.--The term ``commercial air 
        tour'' means any flight conducted for compensation or 
        hire in a powered aircraft where a purpose of the 
        flight is sightseeing. If the operator of a flight 
        asserts that the flight is not a commercial air tour, 
        factors that can be considered by the Administrator in 
        making a determination of whether the flight is a 
        commercial air tour, include, but are not limited to--
                  (A) whether there was a holding out to the 
                public of willingness to conduct a sightseeing 
                flight for compensation or hire;
                  (B) whether a narrative was provided that 
                referred to areas or points of interest on the 
                surface;
                  (C) the area of operation;
                  (D) the frequency of flights;
                  (E) the route of flight;
                  (F) the inclusion of sightseeing flights as 
                part of any travel arrangement package; or
                  (G) whether the flight or flights in question 
                would or would not have been canceled based on 
                poor visibility of the surface.
          (2) Commercial air tour operator.--The term 
        ``commercial air tour operator'' means any person who 
        conducts a commercial air tour.
          (3) Existing commercial air tour operator.--The term 
        ``existing commercial air tour operator'' means a 
        commercial air tour operator that was actively engaged 
        in the business of providing commercial air tours over 
        a national park at any time during the 12-month period 
        ending on the date of enactment of the Air 
        Transportation Improvement Act.
          (4) New entrant commercial air tour operator.--The 
        term ``new entrant commercial air tour operator'' means 
        a commercial air tour operator that--
                  (A) applies for operating authority as a 
                commercial air tour operator for a national 
                park; and
                  (B) has not engaged in the business of 
                providing commercial air tours over that 
                national park or those tribal lands in the 12-
                month period preceding the application.
          (5) Commercial air tour operations.--The term 
        ``commercial air tour operations'' means commercial air 
        tour flight operations conducted--
                  (A) over a national park or within \1/2\ mile 
                outside the boundary of any national park;
                  (B) below a minimum altitude, determined by 
                the Administrator in cooperation with the 
                Director, above ground level (except solely for 
                purposes of takeoff or landing, or necessary 
                for safe operation of an aircraft as determined 
                under the rules and regulations of the Federal 
                Aviation Administration requiring the pilot-in-
                command to take action to ensure the safe 
                operation of the aircraft); and
                  (C) less than 1 mile laterally from any 
                geographic feature within the park (unless more 
                than \1/2\ mile outside the boundary).
          (6) National park.--The term ``national park'' means 
        any unit of the National Park System.
          (7) Tribal lands.--The term ``tribal lands'' means 
        ``Indian country'', as defined by section 1151 of title 
        18, United States Code, that is within or abutting a 
        national park.
          (8) Administrator.--The term ``Administrator'' means 
        the Administrator of the Federal Aviation 
        Administration.
          (9) Director.--The term ``Director'' means the 
        Director of the National Park Service.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                    SUBPART II. ECONOMIC REGULATION

                  CHAPTER 417. OPERATIONS OF CARRIERS

                       SUBCHAPTER I. REQUIREMENTS

Sec. 41705. Discrimination against handicapped individuals.

    (a) In General._In providing air transportation, an air 
carrier carrier, including any foreign air carrier doing 
business in the United States, may not discriminate against an 
otherwise qualified individual on the following grounds:
          (1) the individual has a physical or mental 
        impairment that substantially limits one or more major 
        life activities;
          (2) the individual has a record of such an 
        impairment; and
          (3) the individual is regarded as having such an 
        impairment.
    (b) Each Act Constitutes Separate Offense.--Each separate 
act of discrimination prohibited by subsection (a) constitutes 
a separate violation of that subsection.
    (c) Investigation of Complaints.--
          (1) In general.--The Secretary or a person designated 
        by the Secretary within the Office of Civil Rights 
        shall investigate each complaint of a violation of 
        subsection (a).
          (2) Publication of data.--The Secretary or a person 
        designated by the Secretary within the Office of Civil 
        Rights shall publish disability-related complaint data 
        in a manner comparable to other consumer complaint 
        data.
          (3) Employment.--The Secretary is authorized to 
        employ personnel necessary to enforce this section.
          (4) Review and report.--The Secretary or a person 
        designated by the Secretary within the Office of Civil 
        Rights shall regularly review all complaints received 
        by air carriers alleging discrimination on the basis of 
        disability, and report annually to Congress on the 
        results of such review.
          (5) Technical Assistant.--Not later than 180 days 
        after enactment of the Air Transportation and 
        Improvement Act, the Secretary shall--
                  (A) implement a plan, in consultation with 
                the Department of Justice, United States 
                Architectural and Transportation Barriers 
                Compliance Board, and the National Council on 
                Disability, to provide technical assistance to 
                air carriers and individuals with disabilities 
                in understanding the rights and 
                responsibilities of this section; and
                  (B) ensure the availability and provision of 
                appropriate technical assistance manuals to 
                individuals and entities with rights or duties 
                under this section.

Sec. 41712. Unfair and deceptive practices and unfair methods of 
                    competition

    (a) In General._On the initiative of the Secretary of 
Transportation or the complaint of an air carrier, foreign air 
carrier, or ticket agent, and if the Secretary considers it is 
in the public interest, the Secretary may investigate and 
decide whether an air carrier, foreign air carrier, or ticket 
agent has been or is engaged in an unfair or deceptive practice 
or an unfair method of competition in air transportation or the 
sale of air transportation. If the Secretary, after notice and 
an opportunity for a hearing, finds that an air carrier, 
foreign air carrier, or ticket agent is engaged in an unfair or 
deceptive practice or unfair method of competition, the 
Secretary shall order the air carrier, foreign air carrier, or 
ticket agent to stop the practice or method.
    (b) Marketing Practices That Adversely Affect Service to 
Small or Medium Communities.--Within 180 days after the date of 
enactment of the Air Transportation Improvement Act, the 
Secretary shall review the marketing practices of air carriers 
that may inhibit the availability of quality, affordable air 
transportation services to small and medium-sized communities, 
including--
          (1) marketing arrangements between airlines and 
        travel agents;
          (2) code-sharing partnerships;
          (3) computer reservation system displays;
          (4) gate arrangements at airports;
          (5) exclusive dealing arrangements; and
          (6) any other marketing practice that may have the 
        same effect.
    (c) Regulations.--If the Secretary finds, after conducting 
the review required by subsection (b), that marketing practices 
inhibit the availability of such service to such communities, 
then, after public notice and an opportunity for comment, the 
Secretary may promulgate regulations that address the problem, 
or take other appropriate action. Nothing in this section 
expands the authority or juridiction of the Secretary to 
promulgate regulations under the Federal Aviation Act or under 
any other Act.
    (d) E-Ticket Expiration Notice.--It shall be an unfair or 
deceptive practice under subsection (a) for any air carrier 
utilizing electronically transmitted tickets to fail to notify 
the purchaser of such a ticket of its expiration date, if any.

Sec. 41714. Availability of slots

    (a) Making Slots Available for Essential Air Service.--
          (1) Operational authority.--If basic essential air 
        service under subchapter II of this chapter is to be 
        provided from an eligible point to a high density 
        airport (other than Ronald Reagan Washington National 
        Airport), the Secretary of Transportation shall ensure 
        that the air carrier providing or selected to provide 
        such service has sufficient operational authority at 
        the high density airport to provide such service. The 
        operational authority shall allow flights at reasonable 
        times taking into account the needs of passengers with 
        connecting flights.
          (2) Exemptions.--If necessary to carry out the 
        objectives of paragraph (1), the Secretary shall by 
        order grant exemptions from the requirements of 
        subparts K and S of part 93 of title 14, Code of 
        Federal Regulations (pertaining to slots at high 
        density airports), to air carriers using Stage 3 
        aircraft or tocommuter air carriers, unless such an 
exemption would significantly increase operational delays.
          (3) Assurance of access.--If the Secretary finds that 
        an exemption under paragraph (2) would significantly 
        increase operational delays, the Secretary shall take 
        such action as may be necessary to ensure that an air 
        carrier providing or selected to provide basic 
        essential air service is able to obtain access to a 
        high density airport; except that the Secretary shall 
        not be required to make slots available at O'Hare 
        International Airport in Chicago, Illinois, if the 
        number of slots available for basic essential air 
        service (including slots specifically designated as 
        essential air service slots and slots used for such 
        purposes) to and from such airport is at least 132 
        slots.
          (4) Action by the Secretary.--The Secretary shall 
        issue a final order under this subsection on or before 
        the 60th day after receiving a request from an air 
        carrier for operational authority under this 
        subsection.
    (b) Slots for Foreign Air Transportation.--
          (1) Exemptions.--If the Secretary finds it to be in 
        the public interest at a high density airport (other 
        than Ronald Reagan Washington National Airport), the 
        Secretary may grant by order exemptions from the 
        requirements of subparts K and S of part 93 of title 
        14, Code of Federal Regulations (pertaining to slots at 
        high density airports), to enable air carriers and 
        foreign air carriers to provide foreign air 
        transportation using Stage 3 aircraft.
          (2) Slot withdrawals.--The Secretary may not withdraw 
        a slot from an air carrier in order to allocate that 
        slot to a carrier to provide foreign air transportation 
        if the withdrawal of that slot would result in the 
        withdrawal of slots from an air carrier at O'Hare 
        International Airport under section 93.223 of title 14, 
        Code of Federal Regulations, in excess of the total 
        withdrawn from that air carrier as of October 31, 1993.
          (3) Equivalent rights of access.--The Secretary shall 
        not take a slot at a high density airport from an air 
        carrier and award such slot to a foreign air carrier if 
        the Secretary determines that air carriers are not 
        provided equivalent rights of access to airports in the 
        country of which such foreign air carrier is a citizen.
          (4) Period of effectiveness.--This subsection and 
        exemptions issued under this subsection shall cease to 
        be in effect when the final rules issued under 
        subsection (f) become effective.
    (c) Slots for New Entrants.--
          (1) In general.--If the Secretary finds it to be in 
        the public interest and the circumstances to be 
        exceptional, the Secretary may by order grant 
        exemptions from the requirements under subparts K and S 
        of part 93 of title 14, Code of Federal Regulations 
        (pertaining to slots at high density airports), to 
        enable new entrant air carriers to provide air 
        transportation at high density airports (other than 
        Ronald Reagan Washington National Airport).
          (2) Period of effectiveness.--Exemptions issued under 
        this subsection shall cease to be in effect on or after 
        the date on which the final rules issued under 
        subsection (f) become effective.
    (d) Special Rules for Ronald Reagan Washington National 
Airport.--
          (1) In general.--Notwithstanding sections 49104(a)(5) 
        and 49111(e) of this title, or any provision of this 
        section, the Secretary may, only under circumstances 
        determined by the Secretary to be exceptional, grant by 
        order to an air carrier currently holding or operating 
        a slot at Ronald Reagan Washington National Airport an 
        exemption from requirements under subparts K and S of 
        part 93 of title 14, Code of Federal Regulations 
        (pertaining to slots at Ronald Reagan Washington 
        National Airport), to enable that carrier to provide 
        air transportation with Stage 3 aircraft at Ronald 
        Reagan Washington National Airport; except that such 
        exemption shall not--
                  (A) result in an increase in the total number 
                of slots per day at Ronald Reagan Washington 
                National Airport;
                  (B) result in an increase in the total number 
                of slots at Ronald Reagan Washington National 
                Airport from 7:00 ante meridiem to 9:59 post 
                meridiem;
                  (C) increase the number of operations at 
                Ronald Reagan Washington National Airport in 
                any 1-hour period by more than 2 operations;
                  (D) result in the withdrawal or reduction of 
                slots operated by an air carrier;
                  (E) result in a net increase in noise impact 
                on surrounding communities resulting from 
                changes in timing of operations permitted under 
                this subsection; and
                  (F) continue in effect on or after the date 
                on which the final rules issued under 
                subsection (f) become effective.
          (2) Limitation on applicability.--Nothing in this 
        subsection shall adversely affect Exemption No. 5133, 
        as from time-to-time amended and extended.
    (e) Study.--
          (1) Matters to be considered.--The Secretary shall 
        continue the Secretary's current examination of slot 
        regulations and shall ensure that the examination 
        includes consideration of--
                  (A) whether improvements in technology and 
                procedures of the air traffic control system 
                and the use of quieter aircraft make it 
                possible to eliminate the limitations on hourly 
                operations imposed by the high density rule 
                contained in part 93 of title 14 of the Code of 
                Federal Regulations or to increase the number 
                of operations permitted under such rule;
                  (B) the effects of the elimination of 
                limitations or an increase in the number of 
                operations allowed on each of the following:
                          (i) congestion and delay in any part 
                        of the national aviation system;
                          (ii) the impact of noise on persons 
                        living near the airport;
                          (iii) competition in the air 
                        transportation system;
                          (iv) the profitability of operations 
                        of airlines serving the airport; and
                          (v) aviation safety;
                  (C) the impact of the current slot allocation 
                process upon the ability of air carriers to 
                provide essential air service under subchapter 
                II of this chapter;
                  (D) the impact of such allocation process 
                upon the ability of new entrant air carriers to 
                obtain slots in time periods that enable them 
                to provide service;
                  (E) the impact of such allocation process on 
                the ability of foreign air carriers to obtain 
                slots;
                  (F) the fairness of such process to air 
                carriers and the extent to which air carriers 
                are provided equivalent rights of access to the 
                air transportation market in the countries of 
                which foreign air carriers holding slots are 
                citizens;
                  (G) the impact, on the ability of air 
                carriers to provide domestic and international 
                air service, of the withdrawal of slots from 
                air carriers in order to provide slots for 
                foreign air carriers; and
                  (H) the impact of the prohibition on slot 
                withdrawals in subsections (b)(2) and (b)(3) of 
                this section on the aviation relationship 
                between the United States Government and 
                foreign governments, including whether the 
                prohibition in such subsections will require 
                the withdrawal of slots from general and 
                military aviation in order to meet the needs of 
                air carriers and foreign air carriers providing 
                foreign air transportation (and the impact of 
                such withdrawal on general aviation and 
                military aviation) and whether slots will 
                become available to meet the needs of air 
                carriers and foreign air carriers to provide 
                foreign air transportation as a result of the 
                planned relocation of Air Force Reserve units 
                and the Air National Guard at O'Hare 
                International Airport.
          (2) Report.--Not later than January 31, 1995, the 
        Secretary shall complete the current examination of 
        slot regulations and shall transmit to the Committee on 
        Commerce, Science, and Transportation of the Senate and 
        the Committee on Transportation and Infrastructure of 
        the House of Representatives a report containing the 
        results of such examination.
    (f) Rulemaking.--The Secretary shall conduct a rulemaking 
proceeding based on the results of the study described in 
subsection (e). In the course of such proceeding, the Secretary 
shall issue a notice of proposed rulemaking not later than 
August 1, 1995, and shall issue a final rule not later than 90 
days after public comments are due on the notice of proposed 
rulemaking.
    (g) Weekend Operations.--The Secretary shall consider the 
advisability of revising section 93.227 of title 14, Code of 
Federal Regulations, so as to eliminate weekend schedules from 
the determination of whether the 80 percent standard of 
subsection (a)(1) of that section has been met.
    (h) Definitions.--In this section and section 41734(h), the 
following definitions apply:
          (1) Commuter air carrier.--The term ``commuter air 
        carrier'' means a commuter operator as defined or 
        applied in subpart K or S of part 93 of title 14, Code 
        of Federal Regulations.
          (2) High density airport.--The term ``high density 
        airport'' means an airport at which the Administrator 
        limits the number of instrument flight rule takeoffs 
        and landings of aircraft.
          (3) New entrant air carrier.--The term ``new entrant 
        air carrier'' means an air carrier that does not hold a 
        slot at the airport concerned and has never sold or 
        given up a slot at that airport after December 16, 
        1985, and a limited incumbent carrier as defined in 
        subpart S of part 93 of title 14, Code of Federal 
        Regulations.
          (4) Slot.--The term ``slot'' means a reservation for 
        an instrument flight rule takeoff or landing by an air 
        carrier of an aircraft in air transportation.

Sec. 41716. Joint venture agreements

    (a) Definitions.--In this section--
          (1) Joint venture agreement.--The term ``joint 
        venture agreement'' means an agreement entered into by 
        a major air carrier on or after January 1, 1998, with 
        regard to (A) code-sharing, blocked-space arrangements, 
        long-term wet leases (as defined in section 207.1 of 
        title 14, Code of Federal Regulations) of a substantial 
        number (as defined by the Secretary by regulation) of 
        aircraft, or frequent flyer programs, or (B) any other 
        cooperative working arrangement (as defined by the 
        Secretary by regulation) between 2 or more major air 
        carriers that affects more than 15 percent of the total 
        number of available seat miles offered by the major air 
        carriers.
          (2) Major air carrier.--The term ``major air 
        carrier'' means a passenger air carrier that is 
        certificated under chapter 411 of this title and 
        included in Carrier Group III under criteria contained 
        in section 04 of part 241 of title 14, Code of Federal 
        Regulations.
    (b) Submission of Joint Venture Agreement.--At least 30 
days before a joint venture agreement may take effect, each of 
the major air carriers that entered into the agreement shall 
submit to the Secretary--
          (1) a complete copy of the joint venture agreement 
        and all related agreements; and
          (2) other information and documentary material that 
        the Secretary may require by regulation.
    (c) Extension of Waiting Period.--
          (1) In general.--The Secretary may extend the 30-day 
        period referred to in subsection (b) until--
                  (A) in the case of a joint venture agreement 
                with regard to code-sharing, the 150th day 
                following the last day of such period; and
                  (B) in the case of any other joint venture 
                agreement, the 60th day following the last day 
                of such period.
          (2) Publication of reasons for extension.--If the 
        Secretary extends the 30-day period referred to in 
        subsection (b), the Secretary shall publish in the 
        Federal Register the reasons of the Secretary for 
        making the extension.
    (d) Termination of Waiting Period.--At any time after the 
date of submission of a joint venture agreement under 
subsection (b), the Secretary may terminate the waiting periods 
referred to in subsections (b) and (c) with respect to the 
agreement.
    (e) Regulations.--The effectiveness of a joint venture 
agreement may not be delayed due to any failure of the 
Secretary to issue regulations to carry out this subsection.
    (f) Memorandum To Prevent Duplicative Reviews.--Promptly 
after the date of enactment of this section, the Secretary 
shall consult with the Assistant Attorney General of the 
Antitrust Division of the Department of Justice in order to 
establish, through a written memorandum of understanding, 
preclearance procedures to prevent unnecessary duplication of 
effort by the Secretary and the Assistant Attorney General 
under this section and the United States antitrust laws, 
respectively.
    (g) Prior Agreements.--With respect to a joint venture 
agreement entered into before the date of enactment of this 
section as to which the Secretary finds that--
          (1) the parties have submitted the agreement to the 
        Secretary before such date of enactment; and
          (2) the parties have submitted any information on the 
        agreement requested by the Secretary,
the waiting period described in paragraphs (2) and (3) shall 
begin on the date, as determined by the Secretary, on which all 
such information was submitted and end on the last day to which 
the period could be extended under this section.
    (h) Limitation on Statutory Construction.--The authority 
granted to the Secretary under this subsection shall not in any 
way limit the authority of the Attorney General to enforce the 
antitrust laws as defined in the first section of the Clayton 
Act (15 U.S.C. 12).

           *       *       *       *       *       *       *


Sec. 41717. Interline agreements for domestic transportation

    (a) Nondiscriminatory Requirements.--If a major air carrier 
that provides air service to an essential airport facility has 
any agreement involving ticketing, baggage and ground handling, 
and terminal and gate access with another carrier, it shall 
provide the same services to any requesting air carrier that 
offers service to a community selected for participation in the 
program under section 41743 under similar terms and conditions 
and on a nondiscriminatory basis within 30 days after receiving 
the request, as long as the requesting air carrier meets such 
safety, service, financial, and maintenance requirements, if 
any, as the Secretary may by regulation establish consistent 
with public convenience and necessity. The Secretary must 
review any proposed agreement to determine if the requesting 
carrier meets operational requirements consistent with the 
rules, procedures, and policies of the major carrier. This 
agreement may be terminated by either party in the event of 
failure to meet the standards and conditions outlined in the 
agreement.
    (b) Definitions.--In this section the term ``essential 
airport facility'' means a large hub airport (as defined in 
section 41731(a)(3)) in the contiguous 48 States in which one 
carrier has more than 50 percent of such airport's total annual 
enplanements.

Sec. 41718. Slot exemptions for nonstop regional jet service.

    (a) In General.--Within 90 days after receiving an 
application for an exemption to provide nonstop regional jet 
air service between--
          (1) an airport with fewer than 2,000,000 annual 
        enplanements; and
          (2) a high density airport subject to the exemption 
        authority under section 41714(a),
the Secretary of Transportation shall grant or deny the 
exemption in accordance with established principles of safety 
and the promotion of competition.
    (b) Existing Slots Taken Into Account.--In deciding to 
grant or deny an exemption under subsection (a), the Secretary 
may take into consideration the slots and slot exemptions 
already used by the applicant.
    (c) Conditions.--The Secretary may grant an exemption to an 
air carrier under subsection (a)--
          (1) for a period of not less than 12 months;
          (2) for a minimum of 2 daily roundtrip flights; and
          (3) for a maximum of 3 daily roundtrip flights.
    (d) Change of Nonhub, Small Hub, or Medium Hub Airport; Jet 
Aircraft.--The Secretary may, upon application made by an air 
carrier operating under an exemption granted under subsection 
(a)--
          (1) authorize the air carrier or an affiliated air 
        carrier to upgrade service under the exemption to a 
        larger jet aircraft; or
          (2) authorize an air carrier operating under such an 
        exemption to change the nonhub airport or small hub 
        airport for which the exemption was granted to provide 
        the same service to a different airport that is smaller 
        than a large hub airport (as defined in section 
        47134(d)(2)) if--
                  (A) the air carrier has been operating under 
                the exemption for a period of not less than 12 
                months; and
                  (B) the air carrier can demonstrate 
                unmitigatable losses.
    (e) Forefeiture for Misuse.--Any exemption granted under 
subsection (a) shall be terminated immediately by the Secretary 
if the air carrier to which it was granted uses the slot for 
any purpose other than the purpose for which it was granted or 
in violation of the conditions under which it was granted.
    (f) Priority to New Entrants and Limited Incumbent 
Carriers.--
          (1) In general.--In granting slot exemptions under 
        this section the Secretary shall give priority 
        consideration to an application from an air carrier 
        that, as of July 1, 1998, operated or held fewer than 
        20 slots or slot exemptions at the high density airport 
        for which it filed an exemption application.
          (2) Limitation.--No priority may be given under 
        paragraph (1) to an air carrier that, at the time of 
        application, operates or holds 20 or more slots and 
        slot exemptions at the airport for which the exemption 
        application is filed.
          (3) Affiliated carriers.--The Secretary shall treat 
        all commuter air carriers that have cooperative 
        agreements, including code-share agreements, with other 
        air carriers equally for determining eligibility for 
        exemptions under this section regardless of the form of 
        the corporate relationship between the commuter air 
        carrier and the other air carrier.
    (g) Stage 3 Aircraft Required.--An exemption may not be 
granted under this section with respect to any aircraft that is 
not a Stage 3 aircraft (as defined by the Secretary).
    (h) Regional Jet Defined.--In this section, the term 
``regional jet'' means a passenger, turbofan-powered aircraft 
carrying not fewer than 30 and not more than 50 passengers.

Sec. 41719. Special Rules for Ronald Reagan Washington National Airport

    (a) Beyond-Perimeter Exemptions.--The Secretary shall by 
order grant exemptions from the application of sections 
49104(a)(5), 49109, 49111(e), and 41714 of this title to air 
carriers to operate limited frequencies and aircraft on select 
routes between Ronald Reagan Washington National Airport and 
domestic hub airports of such carriers and exemptions from the 
requirements of subparts K and S of part 93, Code of Federal 
Regulations, if the Secretary finds that the exemptions will--
          (1) provide air transportation service with domestic 
        network benefits in areas beyond the perimeter 
        described in that section;
          (2) increase competition by new entrant air carriers 
        or in multiple markets;
          (3) not reduce travel options for communities served 
        by small hub airports and medium hub airports within 
        the perimeter described in section 49109 of title 49, 
        United States Code; and
          (4) not result in meaningfully increased travel 
        delays.
    (b) Within-Perimeter Exemptions.--The Secretary shall by 
order grant exemptions from the requirements of sections 
49104(a)(5), 49111(e), and 41714 of this title and subparts K 
and S of part 93 of title 14, Code of Federal Regulations, to 
commuter air carriers for service to airports with fewer than 
2,000,000 annual enplanements within the perimeter established 
for civil aircraft operations at Ronald Reagan Washington 
National Airport under section 49109. The Secretary shall 
develop criteria for distributing slot exemptions for flights 
within the perimeter to such airports under this paragraph in a 
manner consistent with the promotion of air transportation.
    (c) Limitations.--
          (1) Stage 3 aircraft required.--An exemption may not 
        be granted under this section with respect to any 
        aircraft that is not a Stage 3 aircraft (as defined by 
        the Secretary).
          (2) General exemptions.--The exemptions granted under 
        subsections (a) and (b) may not increase the number of 
        operations at Ronald Reagan Washington National Airport 
        in any 1-hour period during the hours between 7:00 a.m. 
        and 9:59 p.m. by more than 3 operations.
          (3) Additional exemptions.--The Secretary shall grant 
        exemptions under subsections (a) and (b) that--
                  (A) will result in 24 additional daily air 
                carrier slot exemptions at such airport for 
                long-haul service beyond the perimeter;
                  (B) will result in 12 additional daily 
                commuter slot exemptions at such airport; and
                  (C) will not result in additional daily 
                commuter slot exemptions for service to any 
                within-the-perimeter airport that has 2,000,000 
                or fewer annual enplanements.
          (4) Assessment of safety, noise and environmental 
        impacts.--The Secretary shall assess the impact of 
        granting exemptions, including the impacts of the 
        additional slots and flights at Ronald Reagan 
        Washington National Airport provided under subsections 
        (a) and (b) on safety, noise levels and the environment 
        within 90 days of the date of the enactment of this 
        Act. The environmental assessment shall be carried out 
        in accordance with parts 1500-1508 of title 40, Code of 
        Federal Regulations. Such environmental assessment 
        shall include a public meeting.
          (5) Applicability with exemption 5133.--Nothing in 
        this section affects Exemption No. 5133, as from time-
        to-time amended and extended.
    (d) Additional Within-Perimeter Slot Exemptions at Ronald 
Reagan Washington National Airport.--The Secretary shall by 
order grant 12 slot exemptions from the requirements of 
sections 49104(a)(5), 49111(e), and 41714 of this title and 
subparts K and S of part 93 of title 14, Code of Federal 
Regulations, to air carriers for flights to airports within the 
perimeter established for civil aircraft operations at Ronald 
Reagan Washington National Airport under section 49109. The 
Secretary shall develop criteria for distributing slot 
exemptions for flights within the perimeter to such airports 
under this subsection in a manner consistent with the promotion 
of air transportation.

Sec. 41720. Special Rules for Chicago O'Hare International Airport

    (a) In General.--The Secretary of Transportation shall 
grant 30 slot exemptions over a 3-year period beginning on the 
date of enactment of the Air Transportation Improvement Act at 
Chicago O'Hare International Airport.
    (b) Equipment and Service Requirements.--
          (1) Stage 3 aircraft required.--An exemption may not 
        be granted under this section with respect to any 
        aircraft that is not a Stage 3 aircraft (as defined by 
        the Secretary).
          (2) Service provided.--Of the exemptions granted 
        under subsection (a)--
                  (A) 18 shall be used only for service to 
                underserved markets, of which no fewer than 6 
                shall be designated as commuter slot 
                exemptions; and
                  (B) 12 shall be air carrier slot exemptions.
    (c) Procedural Requirements.--Before granting exemptions 
under subsection (a), the Secretary shall--
          (1) conduct an environmental review, taking noise 
        into account, and determine that the granting of the 
        exemptions will not cause a significant increase in 
        noise;
          (2) determine whether capacity is available and can 
        be used safely and, if the Secretary so determines then 
        so certify;
          (3) give 30 days notice to the public through 
        publication in the Federal Register of the Secretary's 
        intent to grant the exemptions; and
          (4) consult with appropriate officers of the State 
        and local government on any related noise and 
        environmental issues.
    (d) Underserved Market Defined.--In this section, the term 
``service to underserved markets'' means passenger air 
transportation service to an airport that is a nonhub airport 
or a small hub airport (as defined in paragraphs (4) and (5), 
respectively, of section 41731(a)).

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                    SUBPART II. ECONOMIC REGULATION

                  CHAPTER 417. OPERATIONS OF CARRIERS

               SUBCHAPTER II. SMALL COMMUNITY AIR SERVICE

Sec. 41736. Air transportation to noneligible places

    (a) Proposals and Decisions.--
          (1) A State or local government may propose to the 
        Secretary of Transportation that the Secretary provide 
        compensation to an air carrier to provide air 
        transportation to a place that is not an eligible place 
        under this subchapter. Not later than 90 days after 
        receiving a proposal under this section, the Secretary 
        shall--
                  (A) decide whether to designate the place as 
                eligible to receive compensation under this 
                section; and
                  (B)(i) approve the proposal if the State or 
                local government or a person is willing and 
                able to pay 50 percent of the compensation for 
                providing the transportation, and notify the 
                State or local government of the approval; or
                  (ii) disapprove the proposal if the Secretary 
                decides the proposal is not reasonable under 
                paragraph (2) of this subsection, and notify 
                the State or local government of the 
                disapproval and the reasons for the 
                disapproval.
          (2) In deciding whether a proposal is reasonable, the 
        Secretary shall consider, among other factors--
                  (A) the traffic-generating potential of the 
                place;
                  (B) the cost to the United States Government 
                of providing the proposed transportation; and
                  (C) the distance of the place from the 
                closest hub airport.
    (b) Approval for Certain Air Transportation.--
Notwithstanding subsection (a)(1)(B) of this section, the 
Secretary shall approve a proposal under this section to 
compensate an air carrier for providing air transportation to a 
place in the 48 contiguous States or the District of Columbia 
and designate the place as eligible for compensation under this 
section if--
          (1) at any time before October 23, 1978, the place 
        was served by a carrier holding a certificate under 
        section 401 of the Federal Aviation Act of 1958;
          (2) the place is more than 50 miles from the nearest 
        small hub airport or an eligible place;
          (3) the place is more than 150 miles from the nearest 
        hub airport; and
          (4) the State or local government submitting the 
        proposal or a person is willing and able to pay 25 
        percent of the cost of providing the compensated 
        transportation.
Paragraph (4) does not apply to any community approved for 
service under this section during the period beginning October 
1, 1991, and ending December 31, 1997.
    (c) Level of Air Transportation.--
          (1) If the Secretary designates a place under 
        subsection (a)(1) of this section as eligible for 
        compensation under this section, the Secretary shall 
        decide, not later than 6 months after the date of the 
        designation, on the level of air transportation to be 
        provided under this section. Before making a decision, 
        the Secretary shall consider the views of any 
        interested community, the appropriate State authority 
        of the State in which the place is located, and the 
        State or local government or person agreeing to pay 
        compensation for the transportation under subsection 
        (b)(4) of this section.
          (2) After making the decision under paragraph (1) of 
        this subsection, the Secretary shall provide notice 
        that any air carrier that is willing to provide the 
        level of air transportation established under paragraph 
        (1) for a place may submit an application to provide 
        the transportation. In selecting an applicant, the 
        Secretary shall consider, among other factors--
                  (A) the factors listed in section 41733(c)(1) 
                of this title; and
                  (B) the views of the State or local 
                government or person agreeing to pay 
                compensation for the transportation.
    (d) Compensation Payments.--
          (1) The Secretary shall pay compensation under this 
        section when and in the way the Secretary decides is 
        appropriate. The Secretary shall continue to pay 
        compensation under this section only as long as--
                  (A) the air carrier maintains the level of 
                air transportation established by the Secretary 
                under subsection (c)(1) of this section;
                  (B) the State or local government or person 
                agreeing to pay compensation for transportation 
                under this section continues to pay that 
                compensation; and
                  (C) the Secretary decides the compensation is 
                necessary to maintain the transportation to the 
                place.
          (2) The Secretary may require the State or local 
        government or person agreeing to pay compensation under 
        this section to make advance payments or provide other 
        security to ensure that timely payments are made.
    (e) Review.--The Secretary shall review periodically the 
level of air transportation provided under this section. Based 
on the review and consultation with any interested community, 
the appropriate State authority of the State in which the 
community is located, and the State or local government or 
person paying compensation under this section, the Secretary 
may make appropriate adjustments in the level of 
transportation.
    (f) Withdrawal of Eligibility Designations.--After 
providing notice and an opportunity for interested persons to 
comment, the Secretary may withdraw the designation of a place 
under subsection (a)(1) of this section as eligible to receive 
compensation under this section if the place has received air 
transportation under this section for at least 2 years and the 
Secretary decides the withdrawal would be in the public 
interest. The Secretary by regulation shall prescribe standards 
for deciding whether the withdrawal of a designation under this 
subsection is in the public interest. The standards shall 
include the factors listed in subsection (a)(2) of this 
section.
    (g) Ending, Suspending, and Reducing Air Transportation.--
An air carrier providing air transportation for compensation 
under this section may end, suspend, or reduce that 
transportation below the level of transportation established by 
the Secretary under this section only after giving the 
Secretary, the affected community, and the State or local 
government or person paying compensation under this section at 
least 30 days' notice before ending, suspending, or reducing 
the transportation.

Sec. 41743. Air service program for small communities

    (a) Communities Program.--Under advisory guidelines 
prescribed by the Secretary of Transportation, a small 
community or a consortia of small communities or a State may 
develop an assessment of its air service requirements, in such 
form as the program director designated by the Secretary under 
section 102(g) may require, and submit the assessment and 
service proposal to the program director.
    (b) Selection of Participants.--In selecting community 
programs for participation in the communities program under 
subsection (a), the program director shall apply criteria, 
including geographical diversity and the presentation of unique 
circumstances, that will demonstrate the feasibility of the 
program. For purposes of this subsection, the application of 
geographical diversity criteria means criteria that--
          (1) will promote the development of a national air 
        transportation system; and
          (2) will involve the participation of communities in 
        all regions of the country.
    (c) Carriers Program.--The program director shall invite 
part 121 air carriers and regional/commuter carriers (as such 
terms are defined in section 41715(d) of this title) to offer 
service proposals in response to, or in conjunction with, 
community aircraft service assessments submitted to the office 
under subsection (a). A service proposal under this paragraph 
shall include--
          (1) an assessment of potential daily passenger 
        traffic, revenues, and costs necessary for the carrier 
        to offer the service;
          (2) a forecast of the minimum percentage of that 
        traffic the carrier would require the community to 
        garner in order for the carrier to start up and 
        maintain the service; and
          (3) the costs and benefits of providing jet service 
        by regional or other jet aircraft.
    (d) Program Support Function.--The program director shall 
work with small communities and air carriers, taking into 
account their proposals and needs, to facilitate the initiation 
of service. The program director--
          (1) may work with communities to develop innovative 
        means and incentives for the initiation of service;
          (2) may obligate funds authorized under section 504 
        of the Air Transportation Improvement Act to carry out 
        this section;
          (3) shall continue to work with both the carriers and 
        the communities to develop a combination of community 
        incentives and carrier service levels that--
                  (A) are acceptable to communities and 
                carriers; and
                  (B) do not conflict with other Federal or 
                State programs to facilitate air transportation 
                to the communities;
          (4) designate an airport in the program as an Air 
        Service Development Zone and work with the community on 
        means to attract business to the area surrounding the 
        airport, to develop land use options for the area, and 
        provide data, working with the Department of Commerce 
        and other agencies;
          (5) take such other action under this chapter as may 
        be appropriate.
    (e) Limitations.--
          (1) Community support.--The program director may not 
        provide financial assistance under subsection (c)(2) to 
        any community unless the program director determines 
        that--
                  (A) a public-private partnership exists at 
                the community level to carry out the 
                community's proposal;
                  (B) the community will make a substantial 
                financial contribution that is appropriate for 
                that community's resources, but of not less 
                than 25 percent of the cost of the project in 
                any event;
                  (C) the community has established an open 
                process for soliciting air service proposals; 
                and
                  (D) the community will accord similar 
                benefits to air carriers that are similarly 
                situated.
          (2) Amount.--The program director may not obligate 
        more than $80,000,000 of the amounts authorized under 
        504 of the Air Transportation Improvement Act over the 
        4 years of the program.
          (3) Number of participants.--The program established 
        under subsection (a) shall not involve more than 40 
        communities or consortia of communities.
    (f) Report.--The program director shall report through the 
Secretary to the Congress annually on the progress made under 
this section during the preceding year in expanding commercial 
aviation service to smaller communities.

Sec. 41744. Pilot program project authority

    (a) In General.--The program director designated by the 
Secretary of Transportation under section 102(g)(1) shall 
establish a 4-year pilot program--
          (1) to assist communities and States with inadequate 
        access to the national transportation system to improve 
        their access to that system; and
          (2) to facilitate better air service link-ups to 
        support the improved access.
    (b) Project Authority.--Under the pilot program established 
pursuant to subsection (a), the program director may--
          (1) out of amounts authorized under section 504 of 
        the Air Transportation Improvement Act, provide 
        financial assistance by way of grants to small 
        communities or consortia of small communities under 
        section 41743 of up to $500,000 per year; and
          (2) take such other action as may be appropriate.
    (c) Other Action.--Under the pilot program established 
pursuant to subsection (a), the program director may facilitate 
service by--
          (1) working with airports and air carriers to ensure 
        that appropriate facilities are made available at 
        essential airports;
          (2) collecting data on air carrier service to small 
        communities; and
          (3) providing policy recommendations to the Secretary 
        to stimulate air service and competition to small 
        communities.
    (d) Additional Action.--Under the pilot program established 
pursuant to subsection (a), the Secretary shall work with air 
carriers providing service to participating communities and 
major air carriers serving large hub airports (as defined in 
section 41731(a)(3)) to facilitate joint fare arrangements 
consistent with normal industry practice.

Sec. 41745. Assistance to communities for service

    (a) In General.--Financial assistance provided under 
section 41743 during any fiscal year as part of the pilot 
program established under section 41744(a) shall be implemented 
for not more than--
          (1) 4 communities within any State at any given time; 
        and
          (2) 40 communities in the entire program at any time.
For purposes of this subsection, a consortium of communities 
shall be treated as a single community.
    (b) Eligibility.--In order to participate in a pilot 
project under this subchapter, a State, community, or group of 
communities shall apply to the Secretary in such form and at 
such time, and shall supply such information, as the Secretary 
may require, and shall demonstrate to the satisfaction of the 
Secretary that--
          (1) the applicant has an identifiable need for 
        access, or improved access, to the national air 
        transportation system that would benefit the public;
          (2) the pilot project will provide material benefits 
        to a broad section of the travelling public, 
        businesses, educational institutions, and other 
        enterprises whose access to the national air 
        transportation system is limited;
          (3) the pilot project will not impede competition; 
        and
          (4) the applicant has established, or will establish, 
        public-private partnerships in connection with the 
        pilot project to facilitate service to the public.
    (c) Coordination with Other Provisions of Subchapter.--The 
Secretary shall carry out the 4-year pilot program authorized 
by this subchapter in such a manner as to complement action 
taken under the other provisions of this subchapter. To the 
extent the Secretary determines to be appropriate, the 
Secretary may adopt criteria for implementation of the 4-year 
pilot program that are the same as, or similar to, the criteria 
developed under the preceding sections of this subchapter for 
determining which airports are eligible under those sections. 
The Secretary shall also, to the extent possible, provide 
incentives where no direct, viable, and feasible alternative 
service exists, taking into account geographical diversity and 
appropriate market definitions.
    (d) Maximization of Participation.--The Secretary shall 
structure the program established pursuant to section 41744(a) 
in a way designed to--
          (1) permit the participation of the maximum feasible 
        number of communities and States over a 4-year period 
        by limiting the number of years of participation or 
        otherwise; and
          (2) obtain the greatest possible leverage from the 
        financial resources available to the Secretary and the 
        applicant by--
                  (A) progressively decreasing, on a project-
                by-project basis, any Federal financial 
                incentives provided under this chapter over the 
                4-year period; and
                  (B) terminating as early as feasible Federal 
                financial incentives for any project determined 
                by the Secretary after its implementation to 
                be--
                          (i) viable without further support 
                        under this subchapter; or
                          (ii) failing to meet the purposes of 
                        this chapter or criteria established by 
                        the Secretary under the pilot program.
    (e) Success Bonus.--If Federal financial incentives to a 
community are terminated under subsection (d)(2)(B) because of 
the success of the program in that community, then that 
community may receive a one-time incentive grant to ensure the 
continued success of that program.
    (f) Program to Terminate in 4 Years.--No new financial 
assistance may be provided under this subchapter for any fiscal 
year beginning more than 4 years after the date of enactment of 
the Air Transportation Improvement Act.

Sec. 41746. Additional authority

    In carrying out this chapter, the Secretary--
          (1) may provide assistance to States and communities 
        in the design and application phase of any project 
        under this chapter, and oversee the implementation of 
        any such project;
          (2) may assist States and communities in putting 
        together projects under this chapter to utilize private 
        sector resources, other Federal resources, or a 
        combination of public and private resources;
          (3) may accord priority to service by jet aircraft;
          (4) take such action as may be necessary to ensure 
        that financial resources, facilities, and 
        administrative arrangements made under this chapter are 
        used to carry out the purposes of title V of the Air 
        Transportation Improvement Act; and
          (5) shall work with the Federal Aviation 
        Administration on airport and air traffic control needs 
        of communities in the program.

Sec. 41747. Air traffic control services pilot program

    (a) In General.--To further facilitate the use of, and 
improve the safety at, small airports, the Administrator of the 
Federal Aviation Administration shall establish a pilot program 
to contract for Level I air traffic control services at 20 
facilities not eligible for participation in the Federal 
Contract Tower Program.
    (b) Program Components.--In carrying out the pilot program 
established under subsection (a), the Administrator may--
          (1) utilize current, actual, site-specific data, 
        forecast estimates, or airport system plan data 
        provided by a facility owner or operator;
          (2) take into consideration unique aviation safety, 
        weather, strategic national interest, disaster relief, 
        medical and other emergency management relief services, 
        status of regional airline service, and related factors 
        at the facility;
          (3) approve for participation any facility willing to 
        fund a pro rata share of the operating costs used by 
        the Federal Aviation Administration to calculate, and, 
        as necessary, a 1:1 benefit-to-cost ratio, as required 
        for eligibility under the Federal Contract Tower 
        Program; and
          (4) approve for participation no more than 3 
        facilities willing to fund a pro rata share of 
        construction costs for an air traffic control tower so 
        as to achieve, at a minimum, a 1:1 benefit-to-cost 
        ratio, as required for eligibility under the Federal 
        Contract Tower Program, and for each of such facilities 
        the Federal share of construction costs does not exceed 
        $1,000,000.
    (c) Report.--One year before the pilot program established 
under subsection (a) terminates, the Administrator shall report 
to the Congress on the effectiveness of the program, with 
particular emphasis on the safety and economic benefits 
provided to program participants and the national air 
transportation system.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                    SUBPART II. ECONOMIC REGULATION

                CHAPTER 421. EMPLOYEE PROTECTION PROGRAM

            SUBCHAPTER III--WHISTLEBLOWER PROTECTION PROGRAM

Sec. 42121. Protection of employees providing air safety information

    (a) Discrimination Against Airline Employees.--No air 
carrier or contractor or subcontractor of an air carrier may 
discharge an employee of the air carrier or the contractor or 
subcontractor ofan air carrier or otherwise discriminate 
against any such employee with respect to compensation, terms, 
conditions, or privileges of employment because the employee (or any 
person acting pursuant to a request of the employee)--
          (1) provided, caused to be provided, or is about to 
        provide or cause to be provided to the Federal 
        Government information relating to any violation or 
        alleged violation of any order, regulation, or standard 
        of the Federal Aviation Administration or any other 
        provision of Federal law relating to air carrier safety 
        under this subtitle or any other law of the United 
        States;
          (2) has filed, caused to be filed, or is about to 
        file or cause to be filed a proceeding relating to any 
        violation or alleged violation of any order, 
        regulation, or standard of the Federal Aviation 
        Administration or any other provision of Federal law 
        relating to air carrier safety under this subtitle or 
        any other law of the United States;
          (3) testified or will testify in such a proceeding; 
        or
          (4) assisted or participated or is about to assist or 
        participate in such a proceeding.
    (b) Department of Labor Complaint Procedure.--
          (1) Filing and notification.--
                  (A) In general.--In accordance with this 
                paragraph, a person may file (or have a person 
                file on behalf of that person) a complaint with 
                the Secretary of Labor if that person believes 
                that an air carrier or contractor or 
                subcontractor of an air carrier discharged or 
                otherwise discriminated against that person in 
                violation of subsection (a).
                  (B) Requirements for filing complaints.--A 
                complaint referred to in subparagraph (A) may 
                be filed not later than 90 days after an 
                alleged violation occurs. The complaint shall 
                state the alleged violation.
                  (C) Notification.--Upon receipt of a 
                complaint submitted under subparagraph (A), the 
                Secretary of Labor shall notify the air 
                carrier, contractor, or subcontractor named in 
                the complaint and the Administrator of the 
                Federal Aviation Administration of the--
                          (i) filing of the complaint;
                          (ii) allegations contained in the 
                        complaint;
                          (iii) substance of evidence 
                        supporting the complaint; and
                          (iv) opportunities that are afforded 
                        to the air carrier, contractor, or 
                        subcontractor under paragraph (2).
          (2) Investigation; preliminary order.--
                  (A) In general.--
                          (i) Investigation.--Not later than 60 
                        days after receipt of a complaint filed 
                        under paragraph (1) and after affording 
                        the person named in the complaint an 
                        opportunity to submit to the Secretary 
                        of Labor a written response to the 
                        complaint and an opportunity to meet 
                        with a representative of the Secretary 
                        to present statements from witnesses, 
                        the Secretary of Labor shall conduct an 
                        investigation and determine whether 
                        there is reasonable cause to believe 
                        that the complaint has merit and notify 
                        in writing the complainant and the 
                        person alleged to have committed a 
                        violation of subsection (a) of the 
                        Secretary's findings.
                          (ii) Order.--Except as provided in 
                        subparagraph (B), if the Secretary of 
                        Labor concludes that there is 
                        reasonable cause to believe that a 
                        violation of subsection (a) has 
                        occurred, the Secretary shall accompany 
                        the findings referred to in clause (i) 
                        with a preliminary order providing the 
                        relief prescribed under paragraph 
                        (3)(B).
                          (iii) Objections.--Not later than 30 
                        days after the date of notification of 
                        findings under this paragraph, the 
                        person alleged to have committed the 
                        violation or the complainant may file 
                        objections to the findings or 
                        preliminary order and request a hearing 
                        on the record.
                          (iv) Effect of filing.--The filing of 
                        objections under clause (iii) shall not 
                        operate to stay any reinstatement 
                        remedy contained in the preliminary 
                        order.
                          (v) Hearings.--Hearings conducted 
                        pursuant to a request made under clause 
                        (iii) shall be conducted expeditiously 
                        and governed by the Federal Rules of 
                        Civil Procedure. If a hearing is not 
                        requested during the 30-day period 
                        prescribed in clause (iii), the 
                        preliminary order shall be deemed a 
                        final order that is not subject to 
                        judicial review.
                  (B) Requirements.--
                          (i) Required showing by 
                        complainant.--The Secretary of Labor 
                        shall dismiss a complaint filed under 
                        this subsection and shall not conduct 
                        an investigation otherwise required 
                        under subparagraph (A) unless the 
                        complainant makes a prima facie showing 
                        that any behavior described in 
                        paragraphs (1) through (4) of 
                        subsection (a) was a contributing 
                        factor in the unfavorable personnel 
                        action alleged in the complaint.
                          (ii) Showing by employer.--
                        Notwithstanding a finding by the 
                        Secretary that the complainant has made 
                        the showing required under clause (i), 
                        no investigation otherwise required 
                        under subparagraph (A) shall be 
                        conducted if the employer demonstrates, 
                        by clear and convincing evidence, that 
                        the employer would have taken the same 
                        unfavorable personnel action in the 
                        absence of that behavior.
                          (iii) Criteria for determination by 
                        secretary.--The Secretary may determine 
                        that a violation of subsection (a) has 
                        occurred only if the complainant 
                        demonstrates that any behavior 
                        described in paragraphs (1) through (4) 
                        of subsection (a) was a contributing 
                        factor in the unfavorable personnel 
                        action alleged in the complaint.
                          (iv) Prohibition.--Relief may not be 
                        ordered under subparagraph (A) if the 
                        employer demonstrates by clear and 
                        convincing evidence that the employer 
                        would have taken the same unfavorable 
                        personnel action in the absence of that 
                        behavior.
          (3) Final order.--
                  (A) Deadline for issuance; settlement 
                agreements.--
                          (i) In general.--Not later than 120 
                        days after conclusion of a hearing 
                        under paragraph (2), the Secretary of 
                        Labor shall issue a final order that--
                                  (I) provides relief in 
                                accordance with this paragraph; 
                                or
                                  (II) denies the complaint.
                          (ii) Settlement agreement.--At any 
                        time before issuance of a final order 
                        under this paragraph, a proceeding 
                        under this subsection may be terminated 
                        on the basis of a settlement agreement 
                        entered into by the Secretary of Labor, 
                        the complainant, and the air carrier, 
                        contractor, or subcontractor alleged to 
                        have committed the violation.
                  (B) Remedy.--If, in response to a complaint 
                filed under paragraph (1), the Secretary of 
                Labor determines that a violation of subsection 
                (a) has occurred, the Secretary of Labor shall 
                order the air carrier, contractor, or 
                subcontractor that the Secretary of Labor 
                determines to have committed the violation to--
                          (i) take action to abate the 
                        violation;
                          (ii) reinstate the complainant to the 
                        former position of the complainant and 
                        ensure the payment of compensation 
                        (including back pay) and the 
                        restoration of terms, conditions, and 
                        privileges associated with the 
                        employment; and
                          (iii) provide compensatory damages to 
                        the complainant.
                  (C) Costs of complaint.--If the Secretary of 
                Labor issues a final order that provides for 
                relief in accordance with this paragraph, the 
                Secretary of Labor, at the request of the 
                complainant, shall assess against the air 
                carrier, contractor, or subcontractor named in 
                the order an amount equal to the aggregate 
                amount of all costs and expenses (including 
                attorney and expert witness fees) reasonably 
                incurred by the complainant (as determined by 
                the Secretary of Labor) for, or in connection 
                with, the bringing of the complaint that 
                resulted in the issuance of the order.
          (4) Frivolous complaints.--Rule 11 of the Federal 
        Rules of Civil Procedure applies to any complaint 
        brought under this section that the Secretary finds to 
        be frivolous or to have been brought in bad faith.
          (5) Review.--
                  (A) Appeal to court of appeals.--
                          (i) In general.--Not later than 60 
                        days after a final order is issued 
                        under paragraph (3), a person adversely 
                        affected or aggrieved by that order may 
                        obtain review of the order in the 
                        United States court of appeals for the 
                        circuit in which the violation 
                        allegedly occurred or the circuit in 
                        which the complainant resided on the 
                        date of that violation.
                          (ii) Requirements for judicial 
                        review.--A review conducted under this 
                        paragraph shall be conducted 
inaccordance with chapter 7 of title 5. The commencement of proceedings 
under this subparagraph shall not, unless ordered by the court, operate 
as a stay of the order that is the subject of the review.
                  (B) Limitation on collateral attack.--An 
                order referred to in subparagraph (A) shall not 
                be subject to judicial review in any criminal 
                or other civil proceeding.
          (6) Enforcement of order by secretary of labor.--
                  (A) In general.--If an air carrier, 
                contractor, or subcontractor named in an order 
                issued under paragraph (3) fails to comply with 
                the order, the Secretary of Labor may file a 
                civil action in the United States district 
                court for the district in which the violation 
                occurred to enforce that order.
                  (B) Relief.--In any action brought under this 
                paragraph, the district court shall have 
                jurisdiction to grant any appropriate form of 
                relief, including injunctive relief and 
                compensatory damages.
          (7) Enforcement of order by parties.--
                  (A) Commencement of action.--A person on 
                whose behalf an order is issued under paragraph 
                (3) may commence a civil action against the air 
                carrier, contractor, or subcontractor named in 
                the order to require compliance with the order. 
                The appropriate United States district court 
                shall have jurisdiction, without regard to the 
                amount in controversy or the citizenship of the 
                parties, to enforce the order.
                  (B) Attorney fees.--In issuing any final 
                order under this paragraph, the court may award 
                costs of litigation (including reasonable 
                attorney and expert witness fees) to any party 
                if the court determines that the awarding of 
                those costs is appropriate.
    (c) Mandamus.--Any nondiscretionary duty imposed by this 
section shall be enforceable in a mandamus proceeding brought 
under section 1361 of title 28.
    (d) Nonapplicability To Deliberate Violations.--Subsection 
(a) shall not apply with respect to an employee of an air 
carrier, or contractor or subcontractor of an air carrier who, 
acting without direction from the air carrier (or an agent, 
contractor, or subcontractor of the air carrier), deliberately 
causes a violation of any requirement relating to air carrier 
safety under this subtitle or any other law of the United 
States.
    (e) Contractor Defined.--In this section, the term 
``contractor'' means a company that performs safety-sensitive 
functions by contract for an air carrier.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                         CHAPTER 443. INSURANCE

Sec. 44309. Civil actions

    (a) Losses.--
          (1) Actions against united states.--A person may 
        bring a civil action in a district court of the United 
        States or in the United States Court of Federal Claims 
        against the United States Government when--
                  (A) a loss insured under this chapter is in 
                dispute; or
                  (B)(i) the person is subrogated under a 
                contract between the person and a party insured 
                under this chapter (other than section 
                44305(b)) to the rights of the insured party 
                against the United States Government; and
                  (ii) the person has paid to the insured 
                party, with the approval of the Secretary of 
                Transportation, an amount for a physical damage 
                loss that the Secretary has determined is a 
                loss covered by insurance issued under this 
                chapter (other than section 44305(b)).
          (2) Limitation.--A civil action involving the same 
        matter (except the action authorized by this 
        subsection) may not be brought against an agent, 
        officer, or employee of the government carrying out 
        this chapter.
          (3) Procedure.--To the extent applicable, the 
        procedure in an action brought under section 1346(a)(2) 
        of title 28, United States Code, applies to an action 
        under this subsection.
    (b) Venue and Joinder.--
          (1) A civil action under subsection (a) of this 
        section may be brought in the judicial district for the 
        District of Columbia or in the judicial district in 
        which the plaintiff or the agent of the plaintiff 
        resides if the plaintiff resides in the United States. 
        If the plaintiff does not reside in the United States, 
        the action may be brought in the judicial district for 
        the District of Columbia or in the judicial district in 
        which the Attorney General agrees to accept service.
          (2) An interested person may be joined as a party to 
        a civil action brought under subsection (a) of this 
        section initially or on motion of either party to the 
        action.
    (c) Time Requirements.--When an insurance claim is made 
under this chapter, the period during which, under section 2401 
of title 28, a civil action must be brought under subsection 
(a) of this section is suspended until 60 days after the 
Secretary of Transportation denies the claim. The claim is 
deemed to be administratively denied if the Secretary does not 
act on the claim not later than 6 months after filing, unless 
the Secretary makes a different agreement with the claimant 
when there is good cause for an agreement.
    (d) Interpleader.--
          (1) If the Secretary admits the Government owes money 
        under an insurance claim under this chapter and there 
        is a dispute about the person that is entitled to 
        payment, the Government may bring a civil action of 
        interpleader in a district court of the United States 
        against the persons that may be entitled to payment. 
        The action may be brought in the judicial district for 
        the District of Columbia or in the judicial district in 
        which any party resides.
          (2) The district court may order a party not residing 
        or found in the judicial district in which the action 
        is brought to appear in a civil action under this 
        subsection. The order shall be served in a reasonable 
        manner decided by the district court. If the court 
        decides an unknown person might assert a claim under 
        the insurance that is the subject of the action, the 
        court may order service on that person by publication 
        in the Federal Register.
          (3) Judgment in a civil action under this subsection 
        discharges the Government from further liability to the 
        parties to the action and to all other persons served 
        by publication under paragraph (2) of this subsection.

Sec. 44310. Ending effective date

    The authority of the Secretary of Transportation to provide 
insurance and reinsurance under this chapter is not effective 
after [March 31, 1999.] December 31, 2003.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

            CHAPTER 445. FACILITIES, PERSONNEL, AND RESEARCH

Sec. 44502. General facilities and personnel authority

    (a) General Authority.--
          (1) The Administrator of the Federal Aviation 
        Administration may--
                  (A) acquire, establish, improve, operate, and 
                maintain air navigation facilities; and
                  (B) provide facilities and personnel to 
                regulate and protect air traffic.
          (2) The cost of site preparation work associated with 
        acquiring, establishing, or improving an air navigation 
        facility under paragraph (1)(A) of this subsection 
        shall be charged to amounts available for that purpose 
        appropriated under section 48101(a) of this title. The 
        Secretary of Transportation may make an agreement with 
        an airport owner or sponsor (as defined in section 
        47102 of this title) so that the owner or sponsor will 
        provide the work and be paid or reimbursed by the 
        Secretary from the appropriated amounts.
          (3) The Secretary of Transportation may authorize a 
        department, agency, or instrumentality of the United 
        States Government to carry out any duty or power under 
        this subsection with the consent of the head of the 
        department, agency, or instrumentality.
          (4) Purchase of instrument landing system.--
                  (A) Establishment of program.--The Secretary 
                shall purchase precision approach instrument 
                landing system equipment for installation at 
                airports on an expedited basis.
                  (B) Authorization.--No less than $30,000,000 
                of the amounts appropriated under section 
                48101(a) for each of [fiscal years 1995 and 
                1996] fiscal years 1999 and 2000 shall be used 
                for the purpose of carrying out this paragraph, 
                including [acquisition,] acquisition under new 
                or existing contracts, site preparation work, 
                installation, and related expenditures.
          (5) The Administrator may improve real property 
        leased for air navigation facilities without regard to 
        the costs of the improvements in relation to the cost 
        of the lease if--
                  (A) the improvements primarily benefit the 
                government;
                  (B) are essential for mission accomplishment; 
                and
                  (C) the government's interest in the 
                improvements is protected.
    (b) Certification of Necessity.--Except for Government 
money expended under this part or for a military purpose, 
Government money may be expended to acquire, establish, 
construct, operate, repair, alter, or maintain an air 
navigation facility only if the Administrator of the Federal 
Aviation Administration certifies in writing that the facility 
is reasonably necessary for use in air commerce or for the 
national defense. An interested person may apply for a 
certificate for a facility to be acquired, established, 
constructed, operated, repaired, altered, or maintained by or 
for the person.
    (c) Ensuring Conformity With Plans and Policies.--
          (1) To ensure conformity with plans and policies for, 
        and allocation of, airspace by the Administrator of the 
        Federal Aviation Administration under section 
        40103(b)(1) of this title, a military airport, military 
        landing area, or missile or rocket site may be 
        acquired, established, or constructed, or a runway may 
        be altered substantially, only if the Administrator of 
        the Federal Aviation Administration is given reasonable 
        prior notice so that the Administrator of the Federal 
        Aviation Administration may advise the appropriate 
        committees of Congress and interested departments, 
        agencies, and instrumentalities of the Government on 
        the effect of the acquisition, establishment, 
        construction, or alteration on the use of airspace by 
        aircraft. A disagreement between the Administrator of 
        the Federal Aviation Administration and the Secretary 
        of Defense or the Administrator of the National 
        Aeronautics and Space Administration may be appealed to 
        the President for a final decision.
          (2) To ensure conformity, an airport or landing area 
        not involving the expenditure of Government money may 
        be established or constructed, or a runway may be 
        altered substantially, only if the Administrator of the 
        Federal Aviation Administration is given reasonable 
        prior notice so that the Administrator may provide 
        advice on the effects of the establishment, 
        construction, or alteration on the use of airspace by 
        aircraft.
    (d) Public Use and Emergency Assistance.--
          (1) The head of a department, agency, or 
        instrumentality of the Government having jurisdiction 
        over an air navigation facility owned or operated by 
        the Government may provide, under regulations the head 
        of the department, agency, or instrumentality 
        prescribes, for public use of the facility.
          (2) The head of a department, agency, or 
        instrumentality of the Government having jurisdiction 
        over an airport or emergency landing field owned or 
        operated by the Government may provide, under 
        regulations the head of the department, agency, or 
        instrumentality prescribes, for assistance, and the 
        sale of fuel, oil, equipment, and supplies, to an 
        aircraft, but only when necessary, because of an 
        emergency, to allow the aircraft to continue to the 
        nearest airport operated by private enterprise. The 
        head of the department, agency, or instrumentality 
        shall provide for the assistance and sale at the 
        prevailing local fair market value as determined by the 
        head of the department, agency, or instrumentality. An 
        amount that the head decides is equal to the cost of 
        the assistance provided and the fuel, oil, equipment, 
        and supplies sold shall be credited to the 
        appropriation from which the cost was paid. The balance 
        shall be credited to miscellaneous receipts.
    (e) Transfers of Instrument Landing Systems.--An airport 
may transfer, without consideration, to the Administrator of 
the Federal Aviation Administration an instrument landing 
system (and associated approach lighting equipment and runway 
visual range equipment) that conforms to performance 
specifications of the Administrator if a Government airport aid 
program, airport development aid program, or airport 
improvement project grant was used to assist in purchasing the 
system. The Administrator shall accept the system and operate 
and maintain it under criteria of the Administrator.

           *       *       *       *       *       *       *


Sec. 44516. Human factors program

    (a) Oversight Committee.--The Administrator of the Federal 
Aviation Administration shall establish an advanced 
qualification program oversight committee to advise the 
Administrator on the development and execution of Advanced 
Qualification Programs for air carriers under this section, and 
to encourage their adoption and implementation.
    (b) Human Factors Training.--
          (1) Air traffic controllers.--The Administrator 
        shall--
                  (A) address the problems and concerns raised 
                by the National Research Council in its report 
                ``The Future of Air Traffic Control'' on air 
                traffic control automation; and
                  (B) respond to the recommendations made by 
                the National Research Council.
          (2) Pilots and flight crews.--The Administrator shall 
        work with the aviation industry to develop specific 
        training curricula, within 12 months after the date of 
        enactment of the Air Transportation Improvement Act, to 
        address critical safety problems, including problems of 
        pilots--
                  (A) in recovering from loss of control of the 
                aircraft, including handling unusual attitudes 
                and mechanical malfunctions;
                  (B) in deviating from standard operating 
                procedures, including inappropriate responses 
                to emergencies and hazardous weather;
                  (C) in awareness of altitude and location 
                relative to terrain to prevent controlled 
                flight into terrain; and
                  (D) in landing and approaches, including 
                nonprecision approaches and go-around 
                procedures.
    (c) Accident Investigations.--The Administrator, working 
with the National Transportation Safety Board and 
representatives of the aviation industry, shall establish a 
process to assess human factors training as part of accident 
and incident investigations.
    (d) Test Program.--The Administrator shall establish a test 
program in cooperation with United States air carriers to use 
model Jeppesen approach plates or other similar tools to 
improve nonprecision landing approaches for aircraft.
    (e) Advanced Qualification Program Defined.--For purposes 
of this section, the term ``advanced qualification program'' 
means an alternative method for qualifying, training, 
certifying, and ensuring the competency of flight crews and 
other commercial aviation operations personnel subject to the 
training and evaluation requirements of Parts 121 and 135 of 
title 14, Code of Federal Regulations.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                     CHAPTER 447. SAFETY REGULATION

Sec. 44701. General requirements

    (a) Promoting Safety.--The Administrator of the Federal 
Aviation Administration shall promote safe flight of civil 
aircraft in air commerce by prescribing--
          (1) minimum standards required in the interest of 
        safety for appliances and for the design, material, 
        construction, quality of work, and performance of 
        aircraft, aircraft engines, and propellers;
          (2) regulations and minimum standards in the interest 
        of safety for--
                  (A) inspecting, servicing, and overhauling 
                aircraft, aircraft engines, propellers, and 
                appliances;
                  (B) equipment and facilities for, and the 
                timing and manner of, the inspecting, 
                servicing, and overhauling; and
                  (C) a qualified private person, instead of an 
                officer or employee of the Administration, to 
                examine and report on the inspecting, 
                servicing, and overhauling;
          (3) regulations required in the interest of safety 
        for the reserve supply of aircraft, aircraft engines, 
        propellers, appliances, and aircraft fuel and oil, 
        including the reserve supply of fuel and oil carried in 
        flight;
          (4) regulations in the interest of safety for the 
        maximum hours or periods of service of airmen and other 
        employees of air carriers; and
          (5) regulations and minimum standards for other 
        practices, methods, and procedure the Administrator 
        finds necessary for safety in air commerce and national 
        security.
    (b) Prescribing Minimum Safety Standards. The Administrator 
may prescribe minimum safety standards for--
          (1) an air carrier to whom a certificate is issued 
        under section 44705 of this title; and
          (2) operating an airport serving any passenger 
        operation of air carrier aircraft designed for at least 
        31 passenger seats.
    (c) Reducing and Eliminating Accidents.--The Administrator 
shall carry out this chapter in a way that best tends to reduce 
or eliminate the possibility or recurrence of accidents in air 
transportation. However, the Administrator is not required to 
give preference either to air transportation or to other air 
commerce in carrying out this chapter.
    (d) Considerations and Classification of Regulations and 
Standards.--When prescribing a regulation or standard under 
subsection (a) or (b) of this section or any of sections 44702-
44716 of this title, the Administrator shall--
          (1) consider--
                  (A) the duty of an air carrier to provide 
                service with the highest possible degree of 
                safety in the public interest; and
                  (B) differences between air transportation 
                and other air commerce; and
          (2) classify a regulation or standard appropriate to 
        the differences between air transportation and other 
        air commerce.
    (e) Bilateral Exchanges of Safety Oversight 
Responsibilities.--
          (1) Notwithstanding the provisions of this chapter, 
        and pursuant to Article 83 bis of the Convention on 
        International Civil Aviation, the Administrator may, by 
        a bilateral agreement with the aeronautical authorities 
        of another country, exchange with that country all or 
        part of their respective functions and duties with 
        respect to aircraft described in subparagraphs (A) and 
        (B), under the following articles of the Convention:
                  (A) Article 12 (Rules of the Air).
                  (B) Article 31 (Certificates of 
                Airworthiness).
                  (C) Article 32a (Licenses of Personnel).
          (2) The agreement under paragraph (1) may apply to--
                  (A) aircraft registered in the United States 
                operated pursuant to an agreement for the 
                lease, charter, or interchange of the aircraft 
                or any similar arrangement by an operator that 
                has its principal place of business, or, if it 
                has no such place of business, its permanent 
                residence, in another country; or
                  (B) aircraft registered in a foreign country 
                operated under an agreement for the lease, 
                charter, or interchange of the aircraft or any 
                similar arrangement by an operator that has its 
                principal place of business, or, if it has no 
                such place of business, its permanent 
                residence, in the United States.
          (3) The Administrator relinquishes responsibility 
        with respect to the functions and duties transferred by 
        the Administrator as specified in the bilateral 
        agreement, under the Articles listed in paragraph (1) 
        of this subsection for United States-registered 
        aircraft transferred abroad as described in 
        subparagraph (A) of that paragraph, and accepts 
        responsibility with respect to the functions and duties 
        under those Articles for aircraft registered abroad 
        that are transferred to the United States as described 
        in subparagraph (B) of that paragraph.
          (4) The Administrator may, in the agreement under 
        paragraph (1), predicate the transfer of these 
        functions and duties on any conditions the 
        Administrator deems necessary and prudent.
    [(e)] (f) Exemptions.--The Administrator may grant an 
exemption from a requirement of a regulation prescribed under 
subsection (a) or (b) of this section or any of sections 44702-
44716 of this title if the Administrator finds the exemption is 
in the public interest.

Sec. 44703. Airman certificates

    (a) General.--The Administrator of the Federal Aviation 
Administration shall issue an airman certificate to an 
individual when the Administrator finds, after investigation, 
that the individual is qualified for, and physically able to 
perform the duties related to, the position to be authorized by 
the certificate.
    (b) Contents.--
          (1) An airman certificate shall--
                  (A) be numbered and recorded by the 
                Administrator of the Federal Aviation 
                Administration;
                  (B) contain the name, address, and 
                description of the individual to whom the 
                certificate is issued;
                  (C) contain terms the Administrator decides 
                are necessary to ensure safety in air commerce, 
                including terms on the duration of the 
                certificate, periodic or special examinations, 
                and tests of physical fitness;
                  (D) specify the capacity in which the holder 
                of the certificate may serve as an airman with 
                respect to an aircraft; and
                  (E) designate the class the certificate 
                covers.
          (2) A certificate issued to a pilot serving in 
        scheduled air transportation shall have the designation 
        ``airline transport pilot'' of the appropriate class.
    (c) Appeals.--
          (1) An individual whose application for the issuance 
        or renewal of an airman certificate has been denied may 
        appeal the denial to the National Transportation Safety 
        Board, except if the individual holds a certificate 
        that--
                  (A) is suspended at the time of denial; or
                  (B) was revoked within one year from the date 
                of the denial.
          (2) The Board shall conduct a hearing on the appeal 
        at a place convenient to the place of residence or 
        employment of the applicant. The Board is not bound by 
        findings of fact of the Administrator of the Federal 
        Aviation Administration but is bound by all validly 
        adopted interpretations of laws and regulations the 
        Administrator carries out unless the Board finds an 
        interpretation is arbitrary, capricious, or otherwise 
        not according to law. At the end of the hearing, the 
        Board shall decide whether the individual meets the 
        applicable regulations and standards. The Administrator 
        is bound by that decision.
    (d) Restrictions and Prohibitions.--The Administrator of 
the Federal Aviation Administration may--
          (1) restrict or prohibit issuing an airman 
        certificate to an alien; or
          (2) make issuing the certificate to an alien 
        dependent on a reciprocal agreement with the government 
        of a foreign country.
    (e) Controlled Substance Violations.--The Administrator of 
the Federal Aviation Administration may not issue an airman 
certificate to an individual whose certificate is revoked under 
section 44710 of this title except--
          (1) when the Administrator decides that issuing the 
        certificate will facilitate law enforcement efforts; 
        and
          (2) as provided in section 44710(e)(2) of this title.
    (f) Modifications in System.--
          (1) The Administrator of the Federal Aviation 
        Administration shall make modifications in the system 
        for issuing airman certificates necessary to make the 
        system more effective in serving the needs of pilots 
        and officials responsible for enforcing laws related to 
        the regulation of controlled substances (as defined in 
        section 102 of the Comprehensive Drug Abuse Prevention 
        and Control Act of 1970 (21 U.S.C. 802)). The 
        modifications shall ensure positive and verifiable 
        identification of each individual applying for or 
        holding a certificate and shall address at least each 
        of the following deficiencies in, and abuses of, the 
        existing system:
                  (A) the use of fictitious names and addresses 
                by applicants for those certificates.
                  (B) the use of stolen or fraudulent 
                identification in applying for those 
                certificates.
                  (C) the use by an applicant of a post office 
                box or ``mail drop'' as a return address to 
                evade identification of the applicant's 
                address.
                  (D) the use of counterfeit and stolen airman 
                certificates by pilots.
                  (E) the absence of information about physical 
                characteristics of holders of those 
                certificates.
          (2) The Administrator of the Federal Aviation 
        Administration shall prescribe regulations to carry out 
        paragraph (1) of this subsection and provide a written 
        explanation of how the regulations address each of the 
        deficiencies and abuses described in paragraph (1). In 
        prescribing the regulations, the Administrator of the 
        Federal Aviation Administration shall consult with the 
        Administrator of Drug Enforcement, the Commissioner of 
        Customs, other law enforcement officials of the United 
        States Government, representatives of State and local 
        law enforcement officials, representatives of the 
        general aviation aircraft industry, representatives of 
        users of general aviation aircraft, and other 
        interested persons.

Sec. 44710. Revocations of airman certificates for controlled substance 
                    violations

    (a) Definition.--In this section, ``controlled substance'' 
has the same meaning given that term in section 102 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 
U.S.C. 802).
    (b) Revocation.--
          (1) The Administrator of the Federal Aviation 
        Administration shall issue an order revoking a 
        certificate issued to an individual under section 44703 
        of this title after the individual is convicted, under 
        a law of the United States or a State related to a 
        controlled substance (except a law related to simple 
        possession of a controlled substance), of an offense 
        punishable by death or imprisonment for more than one 
        year if the Administrator finds that--
                  (A) an aircraft was used to commit, or 
                facilitate the commission of, the offense; and
                  (B) the individual served as an airman, or 
                was on the aircraft, in connection with 
                committing, or facilitating the commission of, 
                the offense.
          (2) The Administrator shall issue an order revoking 
        an airman certificate issued an individual under 
        section 44703 of this title if the Administrator finds 
        that--
                  (A) the individual knowingly carried out an 
                activity punishable, under a law of the United 
                States or a State related to a controlled 
                substance (except a law related to simple 
                possession of a controlled substance), by death 
                or imprisonment for more than one year;
                  (B) an aircraft was used to carry out or 
                facilitate the activity; and
                  (C) the individual served as an airman, or 
                was on the aircraft, in connection with 
                carrying out, or facilitating the carrying out 
                of, the activity.
          (3) The Administrator has no authority under 
        paragraph (1) of this subsection to review whether an 
        airman violated a law of the United States or a State 
        related to a controlled substance.
    (c) Advice to Holders and Opportunity to Answer.--Before 
the Administrator revokes a certificate under subsection (b) of 
this section, the Administrator must--
          (1) advise the holder of the certificate of the 
        charges or reasons on which the Administrator relies 
        for the proposed revocation; and
          (2) provide the holder of the certificate an 
        opportunity to answer the charges and be heard why the 
        certificate should not be revoked.
    (d) Appeals.--
          (1) An individual whose certificate is revoked by the 
        Administrator under subsection (b) of this section may 
        appeal the revocation order to the National 
        Transportation Safety Board. The Board shall affirm or 
        reverse the order after providing notice and an 
        opportunity for a hearing on the record. When 
        conducting the hearing, the Board is not bound by 
        findings of fact of the Administrator but shall be 
        bound by all validly adopted interpretations of laws 
        and regulations the Administrator carries out and of 
        written agency policy guidance available to the public 
        related to sanctions to be imposed under this section 
        unless the Board finds an interpretation is arbitrary, 
        capricious, or otherwise not according to law.
          (2) When an individual files an appeal with the Board 
        under this subsection, the order of the Administrator 
        revoking the certificate is stayed. However, if the 
        Administrator advises the Board that safety in air 
        transportation or air commerce requires the immediate 
        effectiveness of the order--
                  (A) the order remains effective; and
                  (B) the Board shall make a final disposition 
                of the appeal not later than 60 days after the 
                Administrator so advises the Board.
          (3) An individual substantially affected by an order 
        of the Board under this subsection, or the 
        Administrator when the Administrator decides that an 
        order of the Board will have a significant adverse 
        effect on carrying out this part, may obtain judicial 
        review of the order under section 46110 of this title. 
        The Administrator shall be made a party to the judicial 
        review proceedings. Findings of fact of the Board are 
        conclusive if supported by substantial evidence.
    (e) Acquittal.--
          (1) The Administrator may not revoke, and the Board 
        may not affirm a revocation of, an airman certificate 
        under subsection (b)(2) of this section on the basis of 
        an activity described in subsection (b)(2)(A) if the 
        holder of the certificate is acquitted of all charges 
        related to a controlled substance in an indictment or 
        information arising from the activity.
          (2) If the Administrator has revoked an airman 
        certificate under this section because of an activity 
        described in subsection (b)(2)(A) of this section, the 
        Administrator shall reissue a certificate to the 
        individual if--
                  (A) the individual otherwise satisfies the 
                requirements for a certificate under section 
                44703 of this title; and
                  (B)(i) the individual subsequently is 
                acquitted of all charges related to a 
                controlled substance in an indictment or 
                information arising from the activity; or
                  (ii) the conviction on which a revocation 
                under subsection (b)(1) of this section is 
                based is reversed.
    (f) Waivers.--The Administrator may waive the requirement 
of subsection (b) of this section that an airman certificate of 
an individual be revoked if--
          (1) a law enforcement official of the United States 
        Government or of a State requests a waiver; and
          (2) the Administrator decides that the waiver will 
        facilitate law enforcement efforts.

Sec. 44711. Prohibitions and exemption

    (a) Prohibitions.--A person may not--
          (1) operate a civil aircraft in air commerce without 
        an airworthiness certificate in effect or in violation 
        of a term of the certificate;
          (2) serve in any capacity as an airman with respect 
        to a civil aircraft, aircraft engine, propeller, or 
        appliance used, or intended for use, in air commerce--
                  (A) without an airman certificate authorizing 
                the airman to serve in the capacity for which 
                the certificate was issued; or
                  (B) in violation of a term of the certificate 
                or a regulation prescribed or order issued 
                under section 44701(a) or (b) or any of 
                sections 44702-44716 of this title;
          (3) employ for service related to civil aircraft used 
        in air commerce an airman who does not have an airman 
        certificate authorizing the airman to serve in the 
        capacity for which the airman is employed;
          (4) operate as an air carrier without an air carrier 
        operating certificate or in violation of a term of the 
        certificate;
          (5) operate aircraft in air commerce in violation of 
        a regulation prescribed or certificate issued under 
        section 44701(a) or (b) or any of sections 44702-44716 
        of this title;
          (6) operate a seaplane or other aircraft of United 
        States registry on the high seas in violation of a 
        regulation under section 3 of the International 
        Navigational Rules Act of 1977 (33 U.S.C. 1602);
          (7) violate a term of an air agency or production 
        certificate or a regulation prescribed or order issued 
        under section 44701(a) or (b) or any of sections 44702-
        44716 of this title related to the holder of the 
        certificate;
          (8) operate an airport without an airport operating 
        certificate required under section 44706 of this title 
        or in violation of a term of the certificate; or
          (9) manufacture, deliver, sell, or offer for sale any 
        aviation fuel or additive in violation of a regulation 
        prescribed under section 44714 of this title.
    (b) Exemption.--On terms the Administrator of the Federal 
Aviation Administration prescribes as being in the public 
interest, the Administrator may exempt a foreign aircraft and 
airmen serving on the aircraft from subsection (a) of this 
section. However, an exemption from observing air traffic 
regulations may not be granted.
    (c) Prohibition on Employment of Convicted Counterfeit Part 
Dealers.--No person subject to this chapter may employ anyone 
to perform a function related to the procurement, sale, 
production, or repair of a part or material, or the 
installation of a part into a civil aircraft, who has been 
convicted of a violation of any Federal or State law relating 
to the installation, production, repair, or sale of a 
counterfeit or falsely-represented aviation part or material.

Sec. 44712. Emergency locator transmitters

    (a) Installation.--An emergency locator transmitter must be 
installed on a fixed-wing powered civil aircraft for use in air 
commerce.
    [(b) Nonapplication.--Subsection (a) of this section does 
not apply to--
          [(1) turbojet-powered aircraft;
          [(2) aircraft when used in scheduled flights by 
        scheduled air carriers holding certificates issued by 
        the Secretary of Transportation under subpart II of 
        this part;
          [(3) aircraft when used in training operations 
        conducted entirely within a 50 mile radius of the 
        airport from which the training operations begin;
          [(4) aircraft when used in flight operations related 
        to design and testing, the manufacture, preparation, 
        and delivery of the aircraft, or the aerial application 
        of a substance for an agricultural purpose;
          [(5) aircraft holding certificates from the 
        Administrator of the Federal Aviation Administration 
        for research and development;
          [(6) aircraft when used for showing compliance with 
        regulations, crew training, exhibition, air racing, or 
        market surveys; and
          [(7) aircraft equipped to carry only one individual.]
    (b) Nonapplication.--Subsection (a) does not apply to 
aircraft when used in--
          (1) scheduled flights by scheduled air carriers 
        holding certificates issued by the Secretary of 
        Transportation under subpart II of this part;
          (2) training operations conducted entirely within a 
        50-mile radius of the airport from which the training 
        operations begin;
          (3) flight operations related to the design and 
        testing, manufacture, preparation, and delivery of 
        aircraft;
          (4) showing compliance with regulations, exhibition, 
        or air racing; or
          (5) the aerial application of a substance for an 
        agricultural purpose.
    (c) Compliance.--An aircraft is deemed to meet the 
requirement of subsection (a) if it is equipped with an 
emergency locator transmitter that transmits on the 121.5/243 
megahertz frequency or the 406 megahertz frequency, or with 
other equipment approved by the Secretary for meeting the 
requirement of subsection (a).
    [(c)] (d) Removal.--The Administrator shall prescribe 
regulations specifying the conditions under which an aircraft 
subject to subsection (a) of this section may operate when its 
emergency locator transmitter has been removed for inspection, 
repair, alteration, or replacement.

           *       *       *       *       *       *       *


Sec. 44725. Denial and revocation of certificate for counterfeit parts 
                    violations

    (a) Denial of Certificate.--
          (1) In general.--Except as provided in paragraph (2) 
        of this subsection and subsection (e)(2) of this 
        section, the Administrator may not issue a certificate 
        under this chapter to any person--
                  (A) convicted of a violation of a law of the 
                United States or of a State relating to the 
                installation, production, repair, or sale of a 
                counterfeit or falsely-represented aviation 
                part or material; or
                  (B) subject to a controlling or ownership 
                interest of an individual convicted of such a 
                violation.
          (2) Exception.--Notwithstanding paragraph (1), the 
        Administrator may issue a certificate under this 
        chapter to a person described in paragraph (1) if 
        issuance of the certificate will facilitate law 
        enforcement efforts.
    (b) Revocation of Certificate.--
          (1) In general.--Except as provided in subsections 
        (f) and (g) of this section, the Administrator shall 
        issue an order revoking a certificate issued under this 
        chapter if the Administrator finds that the holder of 
        the certificate, or an individual who has a controlling 
        or ownership interest in the holder--
                  (A) was convicted of a violation of a law of 
                the United States or of a State relating to the 
                installation, production, repair, or sale of a 
                counterfeit or falsely-represented aviation 
                part or material; or
                  (B) knowingly carried out or facilitated an 
                activity punishable under such a law.
          (2) No authority to review violation.--In carrying 
        out paragraph (1) of this subsection, the Administrator 
        may not review whether a person violated such a law.
    (c) Notice Requirement.--Before the Administrator revokes a 
certificate under subsection (b), the Administrator shall--
          (1) advise the holder of the certificate of the 
        reason for the revocation; and
          (2) provide the holder of the certificate an 
        opportunity to be heard on why the certificate should 
        not be revoked.
    (d) Appeal.--The provisions of section 44710(d) apply to 
the appeal of a revocation order under subsection (b). For the 
purpose of applying that section to such an appeal, ``person'' 
shall be substituted for ``individual'' each place it appears.
    (e) Aquittal or Reversal.--
          (1) In general.--The Administrator may not revoke, 
        and the Board may not affirm a revocation of, a 
        certificate under subsection (b)(1)(B) of this section 
        if the holder of the certificate, or the individual, is 
        acquitted of all charges related to the violation.
          (2) Reissuance.--The Administrator may reissue a 
        certificate revoked under subsection (b) of this 
        section to the former holder if--
                  (A) the former holder otherwise satisfies the 
                requirements of this chapter for the 
                certificate;
                  (B) the former holder, or individual, is 
                acquitted of all charges related to the 
                violation on which the revocation was based; or
                  (C) the conviction of the former holder, or 
                individual, of the violation on which the 
                revocation was based is reversed.
    (f) Waiver.--The Administrator may waive revocation of a 
certificate under subsection (b) of this section if--
          (1) a law enforcement official of the United States 
        Government, or of a State (with respect to violations 
        of State law), requests a waiver; or
          (2) the waiver will facilitate law enforcement 
        efforts.
    (g) Amendment of Certificate.--If the holder of a 
certificate issued under this chapter is other than an 
individual and the Administrator finds that--
          (1) an individual who had a controlling or ownership 
        interest in the holder committed a violation of a law 
        for the violation of which a certificate may be revoked 
        under this section, or knowingly carried out or 
        facilitated an activity punishable under such a law; 
        and
          (2) the holder satisfies the requirements for the 
        certificate without regard to that individual,
then the Administrator may amend the certificate to impose a 
limitation that the certificate will not be valid if that 
individual has a controlling or ownership interest in the 
holder. A decision by the Administrator under this subsection 
is not reviewable by the Board.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                         CHAPTER 449. SECURITY

                       SUBCHAPTER I. REQUIREMENTS

Sec. 44903. Air transportation security

    (a) Definition.--In this section, ``law enforcement 
personnel'' means individuals--
          (1) authorized to carry and use firearms;
          (2) vested with the degree of the police power of 
        arrest the Administrator of the Federal Aviation 
        Administration considers necessary to carry out this 
        section; and
          (3) identifiable by appropriate indicia of authority.
    (b) Protection Against Violence and Piracy.--The 
Administrator shall prescribe regulations to protect passengers 
and property on an aircraft operating in air transportation or 
intrastate air transportation against an act of criminal 
violence or aircraft piracy. When prescribing a regulation 
under this subsection, the Administrator shall--
          (1) consult with the Secretary of Transportation, the 
        Attorney General, the heads of other departments, 
        agencies, and instrumentalities of the United States 
        Government, and State and local authorities;
          (2) consider whether a proposed regulation is 
        consistent with--
                  (A) protecting passengers; and
                  (B) the public interest in promoting air 
                transportation and intrastate air 
                transportation;
          (3) to the maximum extent practicable, require a 
        uniform procedure for searching and detaining 
        passengers and property to ensure--
                  (A) their safety; and
                  (B) courteous and efficient treatment by an 
                air carrier, an agent or employee of an air 
                carrier, and Government, State, and local law 
                enforcement personnel carrying out this 
                section; and
          (4) consider the extent to which a proposed 
        regulation will carry out this section.
    (c) Security Programs.--
          (1) The Administrator shall prescribe regulations 
        under subsection (b) of this section that require each 
        operator of an airport regularly serving an air carrier 
        holding a certificate issued by the Secretary of 
        Transportation to establish an air transportation 
        security program that provides a law enforcement 
        presence and capability at each of those airports that 
        is adequate to ensure the safety of passengers. The 
        regulations shall authorize the operator to use the 
        services of qualified State, local, and private law 
        enforcement personnel. When the Administrator decides, 
        after being notified by an operator in the form the 
        Administrator prescribes, that not enough qualified 
        State, local, and private law enforcement personnel are 
        available to carry out subsection (b), the 
        Administrator may authorize the operator to use, on a 
        reimbursable basis, personnel employed by the 
        Administrator, or by another department, agency, or 
        instrumentality of the Government with the consent of 
        the head of the department, agency, or instrumentality, 
        to supplement State, local, and private law enforcement 
        personnel. When deciding whether additional personnel 
        are needed, the Administrator shall consider the number 
        of passengers boarded at the airport, the extent of 
        anticipated risk of criminal violence or aircraft 
        piracy at the airport or to the air carrier aircraft 
        operations at the airport, and the availability of 
        qualified State or local law enforcement personnel at 
        the airport.
          (2) (A) The Administrator may approve a security 
        program of an airport operator, or an amendment in an 
        existing program, that incorporates a security program 
        of an airport tenant (except an air carrier separately 
        complying with part 108 or 129 of title 14, Code of 
        Federal Regulations) having access to a secured area of 
        the airport, if the program or amendment incorporates--
                  (i) the measures the tenant will use, within 
                the tenant's leased areas or areas designated 
                for the tenant's exclusive use under an 
                agreement with the airport operator, to carry 
                out the security requirements imposed by the 
                Administrator on the airport operator under the 
                access control system requirements of section 
                107.14 of title 14, Code of Federal 
                Regulations, or under other requirements of 
                part 107 of title 14; and
                  (ii) the methods the airport operator will 
                use to monitor and audit the tenant's 
                compliance with the security requirements and 
                provides that the tenant will be required to 
                pay monetary penalties to the airport operator 
                if the tenant fails to carry out a security 
                requirement under a contractual provision or 
                requirement imposed by the airport operator.
          (B) If the Administrator approves a program or 
        amendment described in subparagraph (A) of this 
        paragraph, the airport operator may not be found to be 
        in violation of a requirement of this subsection or 
        subsection (b) of this section when the airport 
        operator demonstrates that the tenant or an employee, 
        permittee, or invitee of the tenant is responsible for 
        the violation and that the airport operator has 
        complied with all measures in its security program for 
        securing compliance with its security program by the 
        tenant.
    (d) Authorizing Individuals To Carry Firearms and Make 
Arrests.--With the approval of the Attorney General and the 
Secretary of State, the Secretary of Transportation may 
authorize an individual who carries out air transportation 
security duties--
          (1) to carry firearms; and
          (2) to make arrests without warrant for an offense 
        against the United States committed in the presence of 
        the individual or for a felony under the laws of the 
        United States, if the individual reasonably believes 
        the individual to be arrested has committed or is 
        committing a felony.
    (e) Exclusive Responsibility Over Passenger Safety.--The 
Administrator has the exclusive responsibility to direct law 
enforcement activity related to the safety of passengers on an 
aircraft involved in an offense under section 46502 of this 
title from the moment all external doors of the aircraft are 
closed following boarding until those doors are opened to allow 
passengers to leave the aircraft. When requested by the 
Administrator, other departments, agencies, and 
instrumentalities of the Government shall provide assistance 
necessary to carry out this subsection.
    (f) Government and Industry Consortia.--The Administrator 
may establish at airports such consortia of government and 
aviation industry representatives as the Administrator may 
designate to provide advice on matters related to aviation 
security and safety. Such consortia shall not be considered 
federal advisory committees for purposes of the Federal 
Advisory Committee Act (5 U.S.C. App.).

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                         CHAPTER 449. SECURITY

                       SUBCHAPTER I. REQUIREMENTS

Sec. 44909. Passenger manifests

    (a) Air Carrier Requirements.--
          (1) Not later than March 16, 1991, the Secretary of 
        Transportation shall require each air carrier to 
        provide a passenger manifest for a flight to an 
        appropriate representative of the Secretary of State--
                  (A) not later than one hour after that 
                carrier is notified of an aviation disaster 
                outside the United States involving that 
                flight; or
                  (B) if it is not technologically feasible or 
                reasonable to comply with clause (A) of this 
                paragraph, then as expeditiously as possible, 
                but not later than 3 hours after the carrier is 
                so notified.
          (2) The passenger manifest [shall] should include the 
        following information:
                  (A) the full name of each passenger.
                  (B) the passport number of each passenger, if 
                required for travel.
                  (C) the name and telephone number of a 
                contact for each passenger.
          (3) In carrying out this subsection, the Secretary of 
        Transportation shall consider the necessity and 
        feasibility of requiring air carriers to collect 
        passenger manifest information as a condition for 
        passengers boarding a flight of the carrier.
    (b) Foreign Air Carrier Requirements.--The Secretary of 
Transportation shall consider imposing a requirement on foreign 
air carriers comparable to that imposed on air carriers under 
subsection (a)(1) and (2) of this section.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                         CHAPTER 449. SECURITY

              SUBCHAPTER II. ADMINISTRATION AND PERSONNEL

Sec. 44936. Employment investigations and restrictions

    (a) Employment Investigation Requirement.--
          (1) (A) The Administrator of the Federal Aviation 
        Administration shall require by regulation that an 
        employment investigation, including a criminal history 
        record check, shall be conducted, as the Administrator 
        decides is necessary to ensure air transportation 
        security, of each individual employed in, or applying 
        for, a position in which the individual has unescorted 
        access, or may permit other individuals to have 
        unescorted access, to--
                  (i) aircraft of an air carrier or foreign air 
                carrier; or
                  (ii) a secured area of an airport in the 
                United States the Administrator designates that 
                serves an air carrier or foreign air carrier.
          (B) The Administrator shall require by regulation 
        that an employment investigation (including a criminal 
        history record check in any case described in 
        [subparagraph (C))] subparagraph (C), or in the case of 
        passenger, baggage, or property screening at airports, 
        the Administrator decides it is necessary to ensure air 
        transportation security) 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.
          (2) An air carrier, foreign air carrier, or airport 
        operator that employs, or authorizes or makes a 
        contract for the services of, an individual in a 
        position described in paragraph (1) of this subsection 
        shall ensure that the investigation the Administrator 
        requires is conducted.
          (3) The Administrator shall provide for the periodic 
        audit of the effectiveness of criminal history record 
        checks conducted under paragraph (1) of this 
        subsection.
    (b) Prohibited Employment.--
          (1) Except as provided in paragraph (3) of this 
        subsection, an air carrier, foreign air carrier, or 
        airport operator may not employ, or authorize or make a 
        contract for the services of, an individual in a 
        position described in subsection (a)(1) of this section 
        if--
                  (A) the investigation of the individual 
                required under this section has not been 
                conducted; or
                  (B) the results of that investigation 
                establish that, in the 10-year period ending on 
                the date of the investigation, the individual 
                was convicted of--
                          (i) a crime referred to in section 
                        46306, 46308, 46312, 46314, or 46315 or 
                        chapter 465 of this title or section 32 
                        of title 18;
                          (ii) murder;
                          (iii) assault with intent to murder;
                          (iv) espionage;
                          (v) sedition;
                          (vi) treason;
                          (vii) rape;
                          (viii) kidnapping;
                          (ix) unlawful possession, sale, 
                        distribution, or manufacture of an 
                        explosive or weapon;
                          (x) extortion;
                          (xi) armed robbery;
                          (xii) distribution of, or intent to 
                        distribute, a controlled substance; or
                          (xiii) conspiracy to commit any of 
                        the acts referred to in clauses (i)-
                        (xii) of this paragraph.
          (2) The Administrator may specify other factors that 
        are sufficient to prohibit the employment of an 
        individual in a position described in subsection (a)(1) 
        of this section.
          (3) An air carrier, foreign air carrier, or airport 
        operator may employ, or authorize or contract for the 
        services of, an individual in a position described in 
        subsection (a)(1) of this section without carrying out 
        the investigation required under this section, if the 
        Administrator approves a plan to employ the individual 
        that provides alternate security arrangements.
    (c) Fingerprinting and Record Check Information.--
          (1) If the Administrator requires an identification 
        and criminal history record check, to be conducted by 
        the Attorney General, as part of an investigation under 
        this section, the Administrator shall designate an 
        individual to obtain fingerprints and submit those 
        fingerprints to the Attorney General. The Attorney 
        General may make the results of a check available to an 
        individual the Administrator designates. Before 
        designating an individual to obtain and submit 
        fingerprints or receive results of a check, the 
        Administrator shall consult with the Attorney General.
          (2) The Administrator shall prescribe regulations 
        on--
                  (A) procedures for taking fingerprints; and
                  (B) requirements for using information 
                received from the Attorney General under 
                paragraph (1) of this subsection--
                          (i) to limit the dissemination of the 
                        information; and
                          (ii) to ensure that the information 
                        is used only to carry out this section.
          (3) If an identification and criminal history record 
        check is conducted as part of an investigation of an 
        individual under this section, the individual--
                  (A) shall receive a copy of any record 
                received from the Attorney General; and
                  (B) may complete and correct the information 
                contained in the check before a final 
                employment decision is made based on the check.
    (d) Fees and Charges.--The Administrator and the Attorney 
General shall establish reasonable fees and charges to pay 
expenses incurred in carrying out this section. The employer of 
the individual being investigated shall pay the costs of a 
record check of the individual. Money collected under this 
section shall be credited to the account in the Treasury from 
which the expenses were incurred and are available to the 
Administrator and the Attorney General for those expenses.
    (e) When Investigation or Record Check Not Required.--This 
section does not require an investigation or record check when 
the investigation or record check is prohibited by a law of a 
foreign country.
    (f) Records of Employment of Pilot Applicants.--
          (1) In general.--Subject to paragraph (14), before 
        allowing an individual to begin service 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 as a pilot of a civil or public 
                aircraft 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] individual's performance 
                        as a pilot 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)(8) of this 
                title, 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 and air carriers shall maintain pilot 
        records described in paragraphs (1)(A) and (1)(B) 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 
        subsection 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 who is or has been employed by such 
        carrier, make available, within a reasonable time, but 
        not later than 30 days after the date 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).
          (14) Special rules with respect to certain pilots.--
                  (A) Pilots of certain small aircraft.--
                Notwithstanding paragraph (1), an air carrier, 
                before receiving information requested about an 
                individual under paragraph (1), may allow the 
                individual to begin service for a period not to 
                exceed 90 days as a pilot of an aircraft with a 
                maximum payload capacity (as defined in section 
                119.3 of title 14, Code of Federal Regulations) 
                of 7,500 pounds or less, or a helicopter, on a 
                flight that is not a scheduled operation (as 
                defined in such section). Before the end of the 
                90-day period, the air carrier shall obtain and 
                evaluate such information. The contract between 
                the carrier and the individual shall contain a 
                term that provides that the continuation of the 
                individual's employment, after the last 90-day 
                period, depends on a satisfactory evaluation.
                  (B) Good faith exception.--Notwithstanding 
                paragraph (1), an air carrier, without 
                obtaining information about an individual under 
                paragraph (1)(B) from an air carrier or other 
                person that no longer exists, or from a foreign 
                government or entity that employed the 
                individual, may allow the individual to begin 
                service as a pilot if the air carrier required 
                to request the information has made a 
                documented good faith attempt to obtain such 
                information.
    (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 concerningan accident or incident conducted by 
the Administrator, the National Transportation Safety Board, or a 
court.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                           CHAPTER 453. FEES

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.]
          (2) Services provided to a foreign government or to 
        any entity obtaining services outside the United States 
        other than--
                  (A) air traffic control services; and
                  (B) fees for production-certification-related 
                service (as defined in Appendix C of part 187 
                of title 14, Code of Federal Regulations) 
                performed outside the United States.
    (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.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                 SUBPART IV. ENFORCEMENT AND PENALTIES

                         CHAPTER 463. PENALTIES

Sec. 46301. Civil penalties

    (a) General Penalty.--
          (1) A person is liable to the United States 
        Government for a civil penalty of not more than $1,000 
        for violating--
                  (A) chapter 401 (except sections 40103(a) and 
                (d), 40105, 40116, and 40117), chapter 411, 
                chapter 413 (except sections 41307 and 
                41310(b)-(f)), chapter 415 (except sections 
                41502, 41505, and 41507-41509), chapter 417 
                (except sections 41703, 41704, 41705, 41710, 
                41713, and 41714), chapter 419, [subchapter II 
                of chapter 421,] subchapter II or III of 
                chapter 421, chapter 441 (except section 
                44109), 44502(b) or (c), chapter 447 (except 
                sections 44717 and 44719-44723), chapter 449 
                (except sections 44902, 44903(d), 44904, 
                44907(a)-(d)(1)(A) and (d)(1)(C)-(f), and 
                44908), or section [46302, 46303, or] 47107(b) 
                (including any assurance made under such 
                section) of this title;
                  (B) a regulation prescribed or order issued 
                under any provision to which clause (A) of this 
                paragraph applies;
                  (C) any term of a certificate or permit 
                issued under section 41102, 41103, or 41302 of 
                this title; or
                  (D) a regulation of the United States Postal 
                Service under this part .
          (2) A person operating an aircraft for the 
        transportation of passengers or property for 
        compensation (except an airman serving as an airman) is 
        liable to the Government for a civil penalty of not 
        more than $10,000 for violating--
                  (A) chapter 401 (except sections 40103(a) and 
                (d), 40105, 40106(b), 40116, and 40117), 
                section 44502(b) or (c), chapter 447 (except 
                sections 44717-44723), or chapter 449 (except 
                sections 44902, 44903(d), 44904, and 44907-
                44909) of this title; or
                  (B) a regulation prescribed or order issued 
                under any provision to which clause (A) of this 
                paragraph applies.
          (3) A civil penalty of not more than $10,000 may be 
        imposed for each violation under paragraph (1) of this 
        subsection related to--
                  (A) the transportation of hazardous material; 
                or
                  (B) the registration or recordation under 
                chapter 441 of this title of an aircraft not 
                used to provide air transportation.
          (4) A separate violation occurs under this subsection 
        for each day the violation (other than a violation of 
        section 41715) continues or, if applicable, for each 
        flight involving the violation (other than a violation 
        of section 41715).
          (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.
          (6) Notwithstanding paragraph (1), the maximum civil 
        penalty for violating section 41715 shall be $5,000 
        instead of $1,000.
          (7) Violation of section 41705.--
                  (A) Credit; voucher; civil penalty.-- Unless 
                an individual accepts a credit or voucher for 
                the purchase of a ticket on an air carrier or 
                any affiliated air carrier for a violation of 
                subsection (a) in an amount (determined by the 
                Secretary) of--
                          (i) not less than $500 and not more 
                        than $2,500 for the first violation; or
                          (ii) not less than $2,500 and not 
                        more than $5,000 for any subsequent 
                        violation,
                then that air carrier is liable to the United 
                States Government for a civil penalty, 
                determined by the Secretary, of not more than 
                100 percent of the amount of the credit or 
                voucher so determined.
                  (B) Remedy not exclusive.--Nothing in 
                subparagraph (A) precludes or affects the right 
                of persons with disabilities to file private 
                rights of action under section 41705 or to 
                limit claims for compensatory or punitive 
                damages asserted in such cases.
                  (C) Attorney's fees.--In addition to the 
                penalty provided by subparagraph (A), an 
                individual who--
                          (i) brings a civil action against an 
                        air carrier to enforce this section; 
                        and
                          (ii) who is awarded damages by the 
                        court in which the action is brought,
                may be awarded reasonable attorneys' fees and 
                costs of litigation reasonably incurred in 
                bringing the action if the court deems it 
                appropriate.
    (b) Smoke Alarm Device Penalty.--
          (1) A passenger may not tamper with, disable, or 
        destroy a smoke alarm device located in a lavatory on 
        an aircraft providing air transportation or intrastate 
        air transportation.
          (2) An individual violating this subsection is liable 
        to the Government for a civil penalty of not more than 
        $2,000.
    (c) Procedural Requirements.--
          (1) The Secretary of Transportation may impose a 
        civil penalty for the following violations only after 
        notice and an opportunity for a hearing:
                  (A) a violation of subsection (b) of this 
                section or chapter 411, chapter 413 (except 
                sections 41307 and 41310(b)-(f)),chapter 415 
(except sections 41502, 41505, and 41507-41509), chapter 417 (except 
sections 41703, 41704, 41710, 41713, and 41714), chapter 419, 
subchapter II of chapter 421, or section 44909 of this title .
                  (B) a violation of a regulation prescribed or 
                order issued under any provision to which 
                clause (A) of this paragraph applies.
                  (C) a violation of any term of a certificate 
                or permit issued under section 41102, 41103, or 
                41302 of this title.
                  (D) a violation under subsection (a)(1) of 
                this section related to the transportation of 
                hazardous material.
          (2) The Secretary shall give written notice of the 
        finding of a violation and the civil penalty under 
        paragraph (1) of this subsection.
    (d) Administrative Imposition of Penalties.--
          (1) In this subsection--
                  (A) ``flight engineer'' means an individual 
                who holds a flight engineer certificate issued 
                under part 63 of title 14, Code of Federal 
                Regulations.
                  (B) ``mechanic'' means an individual who 
                holds a mechanic certificate issued under part 
                65 of title 14, Code of Federal Regulations.
                  (C) ``pilot'' means an individual who holds a 
                pilot certificate issued under part 61 of title 
                14, Code of Federal Regulations.
                  (D) ``repairman'' means an individual who 
                holds a repairman certificate issued under part 
                65 of title 14, Code of Federal Regulations.
          (2) The Administrator of the Federal Aviation 
        Administration may impose a civil penalty for a 
        violation of chapter 401 (except sections 40103(a) and 
        (d), 40105, 40106(b), 40116, and 40117), chapter 441 
        (except section 44109), section 44502(b) or (c), 
        chapter 447 (except sections 44717 and 44719-44723), 
        chapter 449 (except sections 44902, 44903(d), 44904, 
        44907(a)-(d)(1)(A) and (d)(1)(C)-(f), 44908, and 
        44909), or section 46302, 46303, or 47107(b) (as 
        further defined by the Secretary under section 47107(l) 
        and including any assurance made under section 
        47107(b)) of this title or a regulation prescribed or 
        order issued under any of those provisions. The 
        Administrator shall give written notice of the finding 
        of a violation and the penalty.
          (3) In a civil action to collect a civil penalty 
        imposed by the Administrator under this subsection, the 
        issues of liability and the amount of the penalty may 
        not be reexamined.
          (4) Notwithstanding paragraph (2) of this subsection, 
        the district courts of the United States have exclusive 
        jurisdiction of a civil action involving a penalty the 
        Administrator initiates if--
                  (A) the amount in controversy is more than 
                $50,000;
                  (B) the action is in rem or another action in 
                rem based on the same violation has been 
                brought;
                  (C) the action involves an aircraft subject 
                to a lien that has been seized by the 
                Government; or
                  (D) another action has been brought for an 
                injunction based on the same violation.
          (5) (A) The Administrator may issue an order imposing 
        a penalty under this subsection against an individual 
        acting as a pilot, flight engineer, mechanic, or 
        repairman only after advising the individual of the 
        charges or any reason the Administrator relied on for 
        the proposed penalty and providing the individual an 
        opportunity to answer the charges and be heard about 
        why the order shall not be issued.
          (B) An individual acting as a pilot, flight engineer, 
        mechanic, or repairman may appeal an order imposing a 
        penalty under this subsection to the National 
        Transportation Safety Board. After notice and an 
        opportunity for a hearing on the record, the Board 
        shall affirm, modify, or reverse the order. The Board 
        may modify a civil penalty imposed to a suspension or 
        revocation of a certificate.
          (C) When conducting a hearing under this paragraph, 
        the Board is not bound by findings of fact of the 
        Administrator but is bound by all validly adopted 
        interpretations of laws and regulations the 
        Administrator carries out and of written agency policy 
        guidance available to the public related to sanctions 
        to be imposed under this section unless the Board finds 
        an interpretation is arbitrary, capricious, or 
        otherwise not according to law.
          (D) When an individual files an appeal with the Board 
        under this paragraph, the order of the Administrator is 
        stayed.
          (6) An individual substantially affected by an order 
        of the Board under paragraph (5) of this subsection, or 
        the Administrator when the Administrator decides that 
        an order of the Board under paragraph (5) will have a 
        significant adverse impact on carrying out this part, 
        may obtain judicial review of the order under section 
        46110 of this title. The Administrator shall be made a 
        party to the judicial review proceedings. Findings of 
        fact of the Board are conclusive if supported by 
        substantial evidence.
          (7) (A) The Administrator may impose a penalty on [an 
        individual] a person (except an individual acting as a 
        pilot, flight engineer, mechanic, or repairman) only 
        after notice and an opportunity for a hearing on the 
        record.
          (B) In an appeal from a decision of an administrative 
        law judge as the result of a hearing under subparagraph 
        (A) of this paragraph, the Administrator shall consider 
        only whether--
                  (i) each finding of fact is supported by a 
                preponderance of reliable, probative, and 
                substantial evidence;
                  (ii) each conclusion of law is made according 
                to applicable law, precedent, and public 
                policy; and
                  (iii) the judge committed a prejudicial error 
                that supports the appeal.
          (C) Except for good cause, a civil action involving a 
        penalty under this paragraph may not be initiated later 
        than 2 years after the violation occurs.
          (D) In the case of a violation of section 47107(b) of 
        this title or any assurance made under such section--
                  (i) a civil penalty shall not be assessed 
                against an individual;
                  (ii) a civil penalty may be compromised as 
                provided under subsection (f); and
                  (iii) judicial review of any order assessing 
                a civil penalty may be obtained only pursuant 
                to section 46110 of this title.
          (8) The maximum civil penalty the Administrator or 
        Board may impose under this subsection is $50,000.
          (9) This subsection applies only to a violation 
        occurring after August 25, 1992.
    (e) Penalty Considerations.--In determining the amount of a 
civil penalty under subsection (a)(3) of this section related 
to transportation of hazardous material, the Secretary shall 
consider--
          (1) the nature, circumstances, extent, and gravity of 
        the violation;
          (2) with respect to the violator, the degree of 
        culpability, any history of prior violations, the 
        ability to pay, and any effect on the ability to 
        continue doing business; and
          (3) other matters that justice requires.
    (f) Compromise and Setoff.--
          (1) (A) The Secretary may compromise the amount of a 
        civil penalty imposed for violating--
                  (i) chapter 401 (except sections 40103(a) and 
                (d), 40105, 40116, and 40117), chapter 441 
                (except section 44109), section 44502(b) or 
                (c), chapter 447 (except 44717 and 44719-
                44723), or chapter 449 (except sections 44902, 
                44903(d), 44904, 44907(a)-(d)(1)(A) and 
                (d)(1)(C)-(f), 44908, and 44909) of this title; 
                or
                  (ii) a regulation prescribed or order issued 
                under any provision to which clause (i) of this 
                subparagraph applies.
          (B) The Postal Service may compromise the amount of a 
        civil penalty imposed under subsection (a)(1)(D) of 
        this section.
          (2) The Government may deduct the amount of a civil 
        penalty imposed or compromised under this subsection 
        from amounts it owes the person liable for the penalty.
    (g) Judicial Review.--An order of the Secretary or the 
Administrator imposing a civil penalty may be reviewed 
judicially only under section 46110 of this title.
    (h) Nonapplication.--
          (1) This section does not apply to the following when 
        performing official duties:
                  (A) a member of the armed forces of the 
                United States.
                  (B) a civilian employee of the Department of 
                Defense subject to the Uniform Code of Military 
                Justice.
          (2) The appropriate military authority is responsible 
        for taking necessary disciplinary action and submitting 
        to the Secretary (or the Administrator with respect to 
        aviation safety duties and powers designated to be 
        carried out by the Administrator) a timely report on 
        action taken.

           *       *       *       *       *       *       *


Sec. 46317. Criminal penalty for pilots operating in air transportation 
                    without an airman's certificate

    (a) Application.--This section applies only to aircraft 
used to provide air transportation.
    (b) General Criminal Penalty.--An individual shall be fined 
under title 18, imprisoned for not more than 3 years, or both, 
if that individual--
          (1) knowingly and willfully serves or attempts to 
        serve in any capacity as an airman without an airman's 
        certificate authorizing the individual to serve in that 
        capacity; or
          (2) knowingly and willfully employs for service or 
        uses in any capacity as an airman an individual who 
        does not have an airman's certificate authorizing the 
        individual to serve in that capacity.
    (c) Controlled Substance Criminal Penalty.--(1) In this 
subsection, the term ``controlled substance'' has the same 
meaning given that term in section 102 of the Comprehensive 
Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 802).
    (2) An individual violating subsection (b) shall be fined 
under title 18, imprisoned for not more than 5 years, or both, 
if the violation is related to transporting a controlled 
substance by aircraft or aiding or facilitating a controlled 
substance violation and that transporting, aiding, or 
facilitating--
          (A) is punishable by death or imprisonment of more 
        than 1 year under a Federal or State law; or
          (B) is related to an act punishable by death or 
        imprisonment for more than 1 year under a Federal or 
        State law related to a controlled substance (except a 
        law related to simple possession (as that term is used 
        in section 46306(c)) of a controlled substance).
    (3) A term of imprisonment imposed under paragraph (2) 
shall be served in addition to, and not concurrently with, any 
other term of imprisonment imposed on the individual subject to 
the imprisonment.

Sec. 46318. Interference with cabin or flight crew

    (a) In General.--An individual who interferes with the 
duties or responsibilities of the flight crew or cabin crew of 
a civil aircraft, or who poses an imminent threat to the safety 
of the aircraft or other individuals on the aircraft, is liable 
to the United States Government for a civil penalty of not more 
than $10,000, which shall be paid to the Federal Aviation 
Administration and deposited in the account established by 
section 45303(c).
    (b) Compromise and Setoff.--
          (1) The Secretary of Transportation or the 
        Administrator may compromise the amount of a civil 
        penalty imposed under subsection (a).
          (2) The Government may deduct the amount of a civil 
        penalty imposed or compromised under this section from 
        amounts it owes the individual liable for the penalty.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                 PART B. AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471. AIRPORT DEVELOPMENT

                   SUBCHAPTER I. AIRPORT IMPROVEMENT

Sec. 47101. Policies.

    (a) General.--It is the policy of the United States--
          (1) that the safe operation of the airport and airway 
        system is the highest aviation priority;
          (2) that aviation facilities be constructed and 
        operated to minimize current and projected noise impact 
        on nearby communities;
          (3) to give special emphasis to developing reliever 
        airports;
          (4) that appropriate provisions should be made to 
        make the development and enhancement of cargo hub 
        airports easier;
          (5) to encourage the development of transportation 
        systems that use various modes of transportation in a 
        way that will serve the States and local communities 
        efficiently and effectively;
          (6) that airport development projects under this 
        subchapter provide for the protection and enhancement 
        of natural resources and the quality of the environment 
        of the United States;
          (7) that airport construction and improvement 
        projects that increase the capacity of facilities to 
        accommodate passenger and cargo traffic be undertaken 
        to the maximum feasible extent so that safety and 
        efficiency increase and delays decrease;
          (8) to ensure that nonaviation usage of the navigable 
        airspace be accommodated but not allowed to decrease 
        the safety and capacity of the airspace and airport 
        system;
          (9) that artificial restrictions on airport 
        capacity--
                  (A) are not in the public interest;
                  (B) should be imposed to alleviate air 
                traffic delays only after other reasonably 
                available and less burdensome alternatives have 
                been tried; and
                  (C) should not discriminate unjustly between 
                categories and classes of aircraft;
          (10) that special emphasis should be placed on 
        converting appropriate former military air bases to 
        civil use and identifying and improving additional 
        joint-use facilities;
          (11) that the airport improvement program should be 
        administered to encourage projects that employ 
        innovative technology, concepts, and approaches that 
        will promote safety, capacity, and efficiency 
        improvements in the construction of airports and in the 
        air transportation system (including the development 
        and use of innovative concrete and other materials in 
        the construction of airport facilities to minimize 
        initial laydown costs, minimize time out of service, 
        and maximize lifecycle durability) and to encourage and 
        solicit innovative technology proposals and activities 
        (including integrated in-pavement lighting systems for 
        runways and taxiways and other runway and taxiway 
        incursion prevention devices) in the expenditure of 
        funding pursuant to this subchapter;
          (12) that airport fees, rates, and charges must be 
        reasonable and may only be used for purposes not 
        prohibited by this subchapter; and
          (13) that airports should be as self-sustaining as 
        possible under the circumstances existing at each 
        particular airport and in establishing new fees, rates, 
        and charges, and generating revenues from all sources, 
        airport owners and operators should not seek to create 
        revenue surpluses that exceed the amounts to be used 
        for airport system purposes and for other purposes for 
        which airport revenues may be spent under section 
        47107(b)(1) of this title, including reasonable 
        reserves and other funds to facilitate financing and 
        cover contingencies.
    (b) National Transportation Policy.--
          (1) It is a goal of the United States to develop a 
        national intermodal transportation system that 
        transports passengers and property in an efficient 
        manner. The future economic direction of the United 
        States depends on its ability to confront directly the 
        enormous challenges of the global economy, declining 
        productivity growth, energy vulnerability, air 
        pollution, and the need to rebuild the infrastructure 
        of the United States.
          (2) United States leadership in the world economy, 
        the expanding wealth of the United States, the 
        competitiveness of the industry of the United States, 
        the standard of living, and the quality of life are at 
        stake.
          (3) A national intermodal transportation system is a 
        coordinated, flexible network of diverse but 
        complementary forms of transportation that transports 
        passengers and property in the most efficient manner. 
        By reducing transportation costs, these intermodal 
        systems will enhance the ability of the industry of the 
        United States to compete in the global marketplace.
          (4) All forms of transportation, including aviation 
        and other transportation systems of the future, will be 
        full partners in the effort to reduce energy 
        consumption and air pollution while promoting economic 
        development.
          (5) An intermodal transportation system consists of 
        transportation hubs that connect different forms of 
        appropriate transportation and provides users with the 
        most efficient means of transportation and with access 
        to commercial centers, business locations, population 
        centers, and the vast rural areas of the United States, 
        as well as providing links to other forms of 
        transportation and to intercity connections.
          (6) Intermodality and flexibility are paramount 
        issues in the process of developing an integrated 
        system that will obtain the optimum yield of United 
        States resources.
          (7) The United States transportation infrastructure 
        must be reshaped to provide the economic underpinnings 
        for the United States to compete in the 21st century 
        global economy. The United States can no longer rely on 
        the sheer size of its economy to dominate international 
        economic rivals and must recognize fully that its 
        economy is no longer a separate entity but is part of 
        the global marketplace. The future economic prosperity 
        of the United States depends on its ability to compete 
        inan international marketplace that is teeming with 
competitors but in which a full one-quarter of the economic activity of 
the United States takes place.
          (8) The United States must make a national commitment 
        to rebuild its infrastructure through development of a 
        national intermodal transportation system. The United 
        States must provide the foundation for its industries 
        to improve productivity and their ability to compete in 
        the global economy with a system that will transport 
        passengers and property in an efficient manner.
    (c) Capacity Expansion and Noise Abatement.--It is in the 
public interest to recognize the effects of airport capacity 
expansion projects on aircraft noise. Efforts to increase 
capacity through any means can have an impact on surrounding 
communities. Noncompatible land uses around airports must be 
reduced and efforts to mitigate noise must be given a high 
priority.
    (d) Consistency with Air Commerce and Safety Policies.--
Each airport and airway program should be carried out 
consistently with section 40101(a), (b), (d), and (f) of this 
title to foster competition, prevent unfair methods of 
competition in air transportation, maintain essential air 
transportation, and prevent unjust and discriminatory 
practices, including as the practices may be applied between 
categories and classes of aircraft.
    (e) Adequacy of Navigation Aids and Airport Facilities.--
This subchapter should be carried out to provide adequate 
navigation aids and airport facilities for places at which 
scheduled commercial air service is provided. The facilities 
provided may include--
          (1) reliever airports; and
          (2) heliports designated by the Secretary of 
        Transportation to relieve congestion at commercial 
        service airports by diverting aircraft passengers from 
        fixed-wing aircraft to helicopter carriers.
    (f) Maximum Use of Safety Facilities.--This subchapter 
should be carried out consistently with a comprehensive 
airspace system plan, giving highest priority to commercial 
service airports, to maximize the use of safety facilities, 
including installing, operating, and maintaining, to the extent 
possible with available money and considering other safety 
needs--
          (1) electronic or visual vertical guidance on each 
        runway;
          (2) grooving or friction treatment of each primary 
        and secondary runway;
          (3) distance-to-go signs for each primary and 
        secondary runway;
          (4) a precision approach system, a vertical visual 
        guidance system, and a full approach light system for 
        each primary runway;
          (5) a nonprecision instrument approach for each 
        secondary runway;
          (6) runway end identifier lights on each runway that 
        does not have an approach light system;
          (7) a surface movement radar system at each category 
        III airport;
          (8) a taxiway lighting and sign system;
          (9) runway edge lighting and marking; [and]
          (10) radar approach coverage for each airport 
        terminal [area.] area; and
          (11) runway and taxiway incursion prevention devices, 
        including integrated in-pavement lighting systems for 
        runways and taxiways.
    (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.
    (h) Consultation.--To carry out the policy of subsection 
(a)(6) of this section, the Secretary of Transportation shall 
consult with the Secretary of the Interior and the 
Administrator of the Environmental Protection Agency about any 
project included in a project grant application involving the 
location of an airport or runway, or a major runway extension, 
that may have a significant effect on--
          (1) natural resources, including fish and wildlife;
          (2) natural, scenic, and recreation assets;
          (3) water and air quality; or
          (4) another factor affecting the environment.

Sec. 47102. Definitions

    In this subchapter--
          (1) ``air carrier airport'' means a public airport 
        regularly served by--
                  (A) an air carrier certificated by the 
                Secretary of Transportation under section 41102 
                of this title (except a charter air carrier); 
                or
                  (B) at least one air carrier--
                          (i) operating under an exemption from 
                        section 41101(a)(1) of this title that 
                        the Secretary grants; and
                          (ii) having at least 2,500 passenger 
                        boardings at the airport during the 
                        prior calendar year.
          (2) ``airport''--
                  (A) means--
                          (i) an area of land or water used or 
                        intended to be used for the landing and 
                        taking off of aircraft;
                          (ii) an appurtenant area used or 
                        intended to be used for airport 
                        buildings or other airport facilities 
                        or rights of way; and
                          (iii) airport buildings and 
                        facilities located in any of those 
                        areas; and
                  (B) includes a heliport.
          (3) ``airport development'' means the following 
        activities, if undertaken by the sponsor, owner, or 
        operator of a public-use airport:
                  (A) constructing, repairing, or improving a 
                public-use airport, including--
                          (i) removing, lowering, relocating, 
                        marking, and lighting an airport 
                        hazard; and
                          (ii) preparing a plan or 
                        specification, including carrying out a 
                        field investigation.
                  (B) acquiring for, or installing at, a 
                public-use airport--
                          (i) a navigation aid or another aid 
                        (including a precision approach system) 
                        used by aircraft for landing at or 
                        taking off from the airport, including 
                        preparing the site as required by the 
                        acquisition or installation;
                          (ii) safety or security equipment, 
                        including explosive detection devices 
                        and universal access systems, the 
                        Secretary requires by regulation for, 
                        or approves as contributing 
                        significantly to, the safety or 
                        security of individuals and property at 
                        the airport and including integrated 
                        in-pavement lighting systems for 
                        runways and taxiways and other runway 
                        and taxiway incursion prevention 
                        devices;
                          (iii) equipment to remove snow, to 
                        measure runway surface friction, or for 
                        aviation-related weather reporting;
                          (iv) firefighting and rescue 
                        equipment at an airport that serves 
                        scheduled passenger operations of air 
                        carrier aircraft designed for more than 
                        20 passenger seats;
                          (v) aircraft deicing equipment and 
                        structures (except aircraft deicing 
                        fluids and storage facilities for the 
                        equipment and fluids); and
                          (vi) interactive training systems.
                  (C) acquiring an interest in land or 
                airspace, including land for future airport 
                development, that is needed--
                          (i) to carry out airport development 
                        described in subclause (A) or (B) of 
                        this clause; or
                          (ii) to remove or mitigate an 
                        existing airport hazard or prevent or 
                        limit the creation of a new airport 
                        hazard.
                  (D) acquiring land for, or constructing, a 
                burn area training structure on or off the 
                airport to provide live fire drill training for 
                aircraft rescue and firefighting personnel 
                required to receive the training under 
                regulations the Secretary prescribes, including 
                basic equipment and minimum structures to 
                support the training under standards the 
                Administrator of the Federal Aviation 
                Administration prescribes.
                  (E) relocating after December 31, 1991, an 
                air traffic control tower and any navigational 
                aid (including radar) if the relocation is 
                necessary to carry out a project approved by 
                the Secretary under this subchapter or under 
                section 40117.
                  (F) constructing, reconstructing, repairing, 
                or improving an airport, or purchasing capital 
                equipment for an airport, if necessary for 
                compliance with the responsibilities of the 
                operator or owner of the airport under the 
                Americans with Disabilities Act of 1990 (42 
                U.S.C. 12101 et seq.), the Clean Air Act (42 
                U.S.C. 7401 et seq.), and the Federal Water 
                Pollution Control Act (33 U.S.C. 1251 et seq.), 
                except constructing or purchasing capital 
                equipment that would benefit primarily a 
                revenue-producing area of the airport used by a 
                nonaeronautical business.
                  (G) acquiring land for, or work necessary to 
                construct, a pad suitable for deicing aircraft 
                before takeoff at a commercial service airport, 
                including constructing or reconstructing paved 
                areas, drainage collection structures, 
                treatment and discharge systems, appropriate 
                lighting, paved access for deicing vehicles and 
                aircraft, but not including acquiring aircraft 
                deicing fluids or constructing or 
                reconstructing storage facilities for aircraft 
                deicing equipment or fluids.
          (4) ``airport hazard'' means a structure or object of 
        natural growth located on or near a public-use airport, 
        or a use of land near the airport, that obstructs or 
        otherwise is hazardous to the landing or taking off of 
        aircraft at or from the airport.
          (5) ``airport planning'' means planning as defined by 
        regulations the Secretary prescribes and includes 
        integrated airport system planning.
          (6) ``amount made available under section 48103 of 
        this title'' means the amount authorized for grants 
        under section 48103 of this title as reduced by any law 
        enacted after September 3, 1982.
          (7) ``commercial service airport'' means a public 
        airport in a State that the Secretary determines has at 
        least 2,500 passenger boardings each year and is 
        receiving scheduled passenger aircraft service.
          (8) ``integrated airport system planning'' means 
        developing for planning purposes information and 
        guidance to decide the extent, kind, location, and 
        timing of airport development needed in a specific area 
        to establish a viable, balanced, and integrated system 
        of public-use airports, including--
                  (A) identifying system needs;
                  (B) developing an estimate of systemwide 
                development costs;
                  (C) conducting studies, surveys, and other 
                planning actions, including those related to 
                airport access, needed to decide which 
                aeronautical needs should be met by a system of 
                airports; and
                  (D) standards prescribed by a State, except 
                standards for safety of approaches, for airport 
                development at nonprimary public-use airports.
          (9) ``landed weight'' means the weight of aircraft 
        transporting only cargo in intrastate, interstate, and 
        foreign air transportation, as the Secretary determines 
        under regulations the Secretary prescribes.
          (10) ``passenger boardings''--
                  (A) means revenue passenger boardings on an 
                aircraft in service in air commerce as the 
                Secretary determines under regulations the 
                Secretary prescribes; and
                  (B) includes passengers who continue on an 
                aircraft in international flight that stops at 
                an airport in the 48 contiguous States, Alaska, 
                or Hawaii for a nontraffic purpose.
          (11) ``primary airport'' means a commercial service 
        airport the Secretary determines to have more than 
        10,000 passenger boardings each year.
          (12) ``project'' means a project, separate projects 
        included in one project grant application, or all 
        projects to be undertaken at an airport in a fiscal 
        year, to achieve airport development or airport 
        planning.
          (13) ``project cost'' means a cost involved in 
        carrying out a project.
          (14) ``project grant'' means a grant of money the 
        Secretary makes to a sponsor to carry out at least one 
        project.
          (15) ``public agency'' means--
                  (A) a State or political subdivision of a 
                State;
                  (B) a tax-supported organization; or
                  (C) an Indian tribe or pueblo.
          (16) ``public airport'' means an airport used or 
        intended to be used for public purposes--
                  (A) that is under the control of a public 
                agency; and
                  (B) of which the area used or intended to be 
                used for the landing, taking off, or surface 
                maneuvering of aircraft is publicly owned.
          (17) ``public-use airport'' means--
                  (A) a public airport; or
                  (B) a privately-owned airport used or 
                intended to be used for public purposes that 
                is--
                          (i) a reliever airport; [or]
                          (ii) a privately-owned airport that, 
                        as a reliever airport, received Federal 
                        aid for airport development prior to 
                        October 9, 1996, but only if the 
                        Administrator issues revised 
                        administrative guidance after July 1, 
                        1998, for the designation of reliever 
                        airports; or
                          [(ii)] (iii) determined by the 
                        Secretary to have at least 2,500 
                        passenger boardings each year and to 
                        receive scheduled passenger aircraft 
                        service.
          (18) ``reliever airport'' means an airport the 
        Secretary designates to relieve congestion at a 
        commercial service airport and to provide more general 
        aviation access to the overall community.
          (19) ``sponsor'' means--
                  (A) a public agency that submits to the 
                Secretary under this subchapter an application 
                for financial assistance; and
                  (B) a private owner of a public-use airport 
                that submits to the Secretary under this 
                subchapter an application for financial 
                assistance for the airport.
          (20) ``State'' means a State of the United States, 
        the District of Columbia, Puerto Rico, the Virgin 
        Islands, American Samoa, the Northern Mariana Islands, 
        the Trust Territory of the Pacific Islands, and Guam.

Sec. 47104. Project grant authority

    (a) General Authority.--To maintain a safe and efficient 
nationwide system of public-use airports that meets the present 
and future needs of civil aeronautics, the Secretary of 
Transportation may make project grants under this subchapter 
from the Airport and Airway Trust Fund.
    (b) Incurring Obligations.--The Secretary may incur 
obligations to make grants from amounts made available under 
section 48103 of this title as soon as the amounts are 
apportioned under section 47114(c) and (d)(2) of this title.
    (c) Expiration of Authority.--After [March 31, 1999,] 
September 30, 2000, the Secretary may not incur obligations 
under subsection (b) of this section, except for obligations of 
amounts--
          (1) remaining available after that date under section 
        47117(b) of this title; or
          (2) recovered by the United States Government from 
        grants made under this chapter if the amounts are 
        obligated only for increases under section 47108(b)(2) 
        and (3) of this title in the maximum amount of 
        obligations of the Government for any other grant made 
        under this title.

Sec. 47107. Project grant application approval conditioned on 
                    assurances about airport operations.

    (a) General Written Assurances.--The Secretary of 
Transportation may approve a project grant application under 
this subchapter for an airport development project only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that--
          (1) the airport will be available for public use on 
        reasonable conditions and without unjust 
        discrimination;
          (2) air carriers making similar use of the airport 
        will be subject to substantially comparable charges--
                  (A) for facilities directly and substantially 
                related to providing air transportation; and
                  (B) regulations and conditions, except for 
                differences based on reasonable 
                classifications, such as between--
                          (i) tenants and nontenants; and
                          (ii) signatory and nonsignatory 
                        carriers;
          (3) the airport operator will not withhold 
        unreasonably the classification or status of tenant or 
        signatory from an air carrier that assumes obligations 
        substantially similar to those already imposed on air 
        carriers of that classification or status;
          (4) a person providing, or intending to provide, 
        aeronautical services to the public will not be given 
        an exclusive right to use the airport, with a right 
        given to only one fixed-base operator to provide 
        services at an airport deemed not to be an exclusive 
        right if--
                  (A) the right would be unreasonably costly, 
                burdensome, or impractical for more than one 
                fixed-base operator to provide the services; 
                and
                  (B) allowing more than one fixed-base 
                operator to provide the services would require 
                reducing the space leased under an existing 
                agreement between the one fixed-base operator 
                and the airport owner or operator;
          (5) fixed-base operators similarly using the airport 
        will be subject to the same charges;
          (6) an air carrier using the airport may service 
        itself or use any fixed-base operator allowed by the 
        airport operator to service any carrier at the airport;
          (7) the airport and facilities on or connected with 
        the airport will be operated and maintained suitably, 
        with consideration given to climatic and flood 
        conditions;
          (8) a proposal to close the airport temporarily for a 
        nonaeronautical purpose must first be approved by the 
        Secretary;
          (9) appropriate action will be taken to ensure that 
        terminal airspace required to protect instrument and 
        visual operations to the airport (including operations 
        at established minimum flight altitudes) will be 
        cleared and protected by mitigating existing, and 
        preventing future, airport hazards;
          (10) appropriate action, including the adoption of 
        zoning laws, has been or will be taken to the extent 
        reasonable to restrict the use of land next to or near 
        the airport to uses that are compatible with normal 
        airport operations;
          (11) each of the airport's facilities developed with 
        financial assistance from the United States Government 
        and each of the airport's facilities usable for the 
        landing and taking off of aircraft always will be 
        available without charge for use by Government aircraft 
        in common with other aircraft, except that if the use 
        is substantial, the Government may be charged a 
        reasonable share, proportionate to the use, of the cost 
        of operating and maintaining the facility used;
          (12) the airport owner or operator will provide, 
        without charge to the Government, property interests of 
        the sponsor in land or water areas or buildings that 
        the Secretary decides are desirable for, and that will 
        be used for, constructing at Government expense, 
        facilities for carrying out activities related to air 
        traffic control or navigation;
          (13) the airport owner or operator will maintain a 
        schedule of charges for use of facilities and services 
        at the airport--
                  (A) that will make the airport as self-
                sustaining as possible under the circumstances 
                existing at the airport, including volume of 
                traffic and economy of collection; and
                  (B) without including in the rate base used 
                for the charges the Government's share of costs 
                for any project for which a grant is made under 
                this subchapter or was made under the Federal 
                Airport Act or the Airport and Airway 
                Development Act of 1970;
          (14) the project accounts and records will be kept 
        using a standard system of accounting that the 
        Secretary, after consulting with appropriate public 
        agencies, prescribes;
          (15) the airport owner or operator will submit any 
        annual or special airport financial and operations 
        reports to the Secretary that the Secretary reasonably 
        requests and make such reports available to the public;
          (16) the airport owner or operator will maintain a 
        current layout plan of the airport that meets the 
        following requirements:
                  (A) the plan will be in a form the Secretary 
                prescribes;
                  (B) the Secretary will approve the plan and 
                any revision or modification before the plan, 
                revision, or modification takes effect;
                  (C) the owner or operator will not make or 
                allow any alteration in the airport or any of 
                its facilities if the alteration does not 
                comply with the plan the Secretary approves, 
                and the Secretary is of the opinion that the 
                alteration may affect adversely the safety, 
                utility, or efficiency of the airport; and
                  (D) when an alteration in the airport or its 
                facility is made that does not conform to the 
                approved plan and that the Secretary decides 
                adversely affects the safety, utility, or 
                efficiency of any property on or off the 
                airport that is owned, leased, or financed by 
                the Government, the owner or operator, if 
                requested by the Secretary, will--
                          (i) eliminate the adverse effect in a 
                        way the Secretary approves; or
                          (ii) bear all cost of relocating the 
                        property or its replacement to a site 
                        acceptable to the Secretary and of 
                        restoring the property or its 
                        replacement to the level of safety, 
                        utility, efficiency, and cost of 
                        operation that existed before the 
                        alteration was made;
          (17) each contract and subcontract for program 
        management, construction management, planning studies, 
        feasibility studies, architectural services, 
        preliminary engineering, design, engineering, 
        surveying, mapping, and related services will be 
        awarded in the same way that a contract for 
        architectural and engineering services is negotiated 
        under title IX of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 541 et 
        seq.) or an equivalent qualifications-based requirement 
        prescribed for or by the sponsor;
          (18) the airport and each airport record will be 
        available for inspection by the Secretary on reasonable 
        request, and a report of the airport budget will be 
        available to the public at reasonable times and places;
          (19) the airport owner or operator will submit to the 
        Secretary and make available to the public an annual 
        report listing in detail--
                  (A) all amounts paid by the airport to any 
                other unit of government and the purposes for 
                which each such payment was made; and
                  (B) all services and property provided to 
                other units of government and the amount of 
                compensation received for provision of each 
                such service and property; and
          (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.
    (b) Written Assurances on Use of Revenue.--
          (1) The Secretary of Transportation may approve a 
        project grant application under this subchapter for an 
        airport development project only if the Secretary 
        receives written assurances, satisfactory to the 
        Secretary, that local taxes on aviation fuel (except 
        taxes in effect on December 30, 1987) and the revenues 
        generated by a public airport will be expended for the 
        capital or operating costs of--
                  (A) the airport;
                  (B) the local airport system; or
                  (C) other local facilities owned or operated 
                by the airport owner or operator and directly 
                and substantially related to the air 
                transportation of passengers or property.
          (2) Paragraph (1) of this subsection does 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.
          (3) This subsection does not 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.
    (c) Written Assurances on Acquiring Land.--
          (1) In this subsection, land is needed for an airport 
        purpose (except a noise compatibility purpose) if--
                  (A)(i) the land may be needed for an 
                aeronautical purpose (including runway 
                protection zone) or serves as noise buffer 
                land; and
                  (ii) revenue from interim uses of the land 
                contributes to the financial self-sufficiency 
                of the airport; and
                  (B) for land purchased with a grant the owner 
                or operator received not later than December 
                30, 1987, the Secretary of Transportation or 
                the department, agency, or instrumentality of 
                the Government that made the grant was notified 
                by the owner or operator of the use of the land 
                and did not object to the use and the land is 
                still being used for that purpose.
          (2) The Secretary of Transportation may approve an 
        application under this subchapter for an airport 
        development project grant only if the Secretary 
        receives written assurances, satisfactory to the 
        secretary, that if an airport owner or operator has 
        received or will receive a grant for acquiring land 
        and--
                  (A) if the land was or will be acquired for a 
                noise compatibility purpose--
                          (i) the owner or operator will 
                        dispose of the land at fair market 
                        value at the earliest practicable time 
                        after the land no longer is needed for 
                        a noise compatibility purpose;
                          (ii) the disposition will be subject 
                        to retaining or reserving an interest 
                        in the land necessary to ensure that 
                        the land will be used in a way that is 
                        compatible with noise levels associated 
                        with operating the airport; and
                          (iii) the part of the proceeds from 
                        disposing of the land that is 
                        proportional to the Government's share 
                        of the cost of acquiring the land will 
                        be paid to the Secretary 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) or, as the Secretary 
                        prescribes, reinvested in an approved 
                        noise compatibility project; or
                  (B) if the land was or will be acquired for 
                an airport purpose (except a noise 
                compatibility purpose)--
                          (i) the owner or operator, when the 
                        land no longer is needed for an airport 
                        purpose, will dispose of the land at 
                        fair market value or make available to 
                        the Secretary an amount equal to the 
                        Government's proportional share of the 
                        fair market value;
                          (ii) the disposition will be subject 
                        to retaining or reserving an interest 
                        in the land necessary to ensure that 
                        the land will be used in a way that is 
                        compatible with noise levels associated 
                        with operating the airport; and
                          (iii) the part of the proceeds from 
                        disposing of the land that is 
                        proportional to the Government's share 
                        of the cost of acquiring the land will 
                        be reinvested, on application to the 
                        Secretary, in another eligible airport 
                        development project the Secretary 
                        approves under this subchapter or paid 
                        to the Secretary for deposit in the 
                        Fund if another eligible project does 
                        not exist.
          (3) Proceeds referred to in paragraph (2)(A)(iii) and 
        (B)(iii) of this subsection and deposited in the 
        Airport and Airway Trust Fund are available as provided 
        in subsection (f) of this section.
    (d) Assurances of Continuation as Public-use Airport.--The 
Secretary of Transportation may approve an application under 
this subchapter for an airport development project grant for a 
privately owned public-use airport only if the Secretary 
receives appropriate assurances that the airport will continue 
to function as a public-use airport during the economic life 
(that must be at least 10 years) of any facility at the airport 
that was developed with Government financial assistance under 
this subchapter.
    (e) Written Assurances of Opportunities for Small Business 
Concerns.--
          (1) The Secretary of Transportation may approve a 
        project grant application under this subchapter for an 
        airport development project only if the Secretary 
        receives written assurances, satisfactory to the 
        Secretary, that the airport owner or operator will take 
        necessary action to ensure, to the maximum extent 
        practicable, that at least 10 percent of all businesses 
        at the airport selling consumer products or providing 
        consumer services to the public are small business 
        concerns (as defined by regulations of the Secretary) 
        owned and controlled by a socially and economically 
        disadvantaged individual (as defined in section 
        47113(a) of this title) or qualified HUBZone small 
        business concerns (as defined in section 3(p) of the 
        Small Business Act.
          (2) An airport owner or operator may meet the 
        percentage goal of paragraph (1) of this subsection by 
        including any business operated through a management 
        contract or subcontract. The dollar amount of a 
        management contract or subcontract with a disadvantaged 
        business enterprise shall be added to the total 
        participation by disadvantaged business enterprises in 
        airport concessions and to the base from which the 
        airport's percentage goal is calculated. The dollar 
        amount of a management contract or subcontract with a 
        non-disadvantaged business enterprise and the gross 
        revenue of business activities to which the management 
        contract or subcontract pertains may not be added to 
        this base.
          (3) Except as provided in paragraph (4) of this 
        subsection, an airport owner or operator may meet the 
        percentage goal of paragraph (1) of this subsection by 
        including the purchase from disadvantaged business 
        enterprises of goods and services used in businesses 
        conducted at the airport, but the owner or operator and 
        the businesses conducted at the airport shall make good 
        faith efforts to explore all available options to 
        achieve, to the maximum extent practicable, compliance 
        with the goal through direct ownership arrangements, 
        including joint ventures and franchises.
          (4)(A) In complying with paragraph (1) of this 
        subsection, an airport owner or operator shall include 
        the revenues of car rental firms at the airport in the 
        base from which the percentage goal in paragraph (1) is 
        calculated.
          (B) An airport owner or operator may require a car 
        rental firm to meet a requirement under paragraph (1) 
        of this subsection by purchasing or leasing goods or 
        services from a disadvantaged business enterprise. If 
        an owner or operator requires such a purchase or lease, 
        a car rental firm shall be permitted to meet the 
        requirement by including purchases or leases of 
        vehicles from any vendor that qualifies as a small 
        business concern owned and controlled by a socially and 
        economically disadvantaged individual or as a qualified 
        HUBZone small business concern (as defined in section 
        3(p) of the Small Business Act.
          (C) This subsection does not require a car rental 
        firm to change its corporate structure to provide for 
        direct ownership arrangements to meet the requirements 
        of this subsection.
          (5) This subsection does not preempt--
                  (A) a State or local law, regulation, or 
                policy enacted by the governing body of an 
                airport owner or operator; or
                  (B) the authority of a State or local 
                government or airport owner or operator to 
                adopt or enforce a law, regulation, or policy 
                related to disadvantaged business enterprises.
          (6) An airport owner or operator may provide 
        opportunities for a small business concern owned and 
        controlled by a socially and economically disadvantaged 
        individual or a qualified HUBZone small business 
        concern (as defined in section 3(p) of the Small 
        Business Act) to participate through direct contractual 
        agreement with that concern.
          (7) An air carrier that provides passenger or 
        property-carrying services or another business that 
        conducts aeronautical activities at an airport may not 
        be included in the percentage goal of paragraph (1) of 
        this subsection for participation of small business 
        concerns at the airport.
          (8) Not later than April 29, 1993, the Secretary of 
        Transportation shall prescribe regulations to carry out 
        this subsection.
    (f) Availability of Amounts.--An amount deposited in the 
Airport and Airway Trust Fund under--
          (1) subsection (c)(2)(A)(iii) of this section is 
        available to the Secretary of Transportation to make a 
        grant for airport development or airport planning under 
        section 47104 of this title;
          (2) subsection (c)(2)(B)(iii) of this section is 
        available to the Secretary--
                  (A) to make a grant for a purpose described 
                in section 47115(b) of this title; and
                  (B) for use under section 47114(d)(2) of this 
                title at another airport in the State in which 
                the land was disposed of under subsection 
                (c)(2)(B)(ii) of this section; and
          (3) subsection (c)(2)(B)(iii) of this section is in 
        addition to an amount made available to the Secretary 
        under section 48103 of this title and not subject to 
        apportionment under section 47114 of this title.
    (g) Ensuring Compliance.--
          (1) To ensure compliance with this section, the 
        Secretary of Transportation--
                  (A) shall prescribe requirements for sponsors 
                that the Secretary considers necessary; and
                  (B) may make a contract with a public agency.
          (2) The Secretary of Transportation may approve an 
        application for a project grant only if the Secretary 
        is satisfied that the requirements prescribed under 
        paragraph (1)(A) of this subsection have been or will 
        be met.
    (h) Modifying Assurances and Requiring Compliance With 
Additional Assurances.--Before modifying an assurance required 
of a person receiving a grant under this subchapter and in 
effect after December 29, 1987, or to require compliance with 
an additional assurance from the person, the Secretary of 
Transportation must--
          (1) publish notice of the proposed modification in 
        the Federal Register; and
          (2) provide an opportunity for comment on the 
        proposal.
    (i) Relief from Obligation to Provide Free Space.--When a 
sponsor provides a property interest in a land or water area or 
a building that the Secretary of Transportation uses to 
construct a facility at Government expense, the Secretary may 
relieve the sponsor from an obligation in a contract made under 
this chapter, the Airport and Airway Development Act of 1970, 
or the Federal Airport Act to provide free space to the 
Government in an airport building, to the extent the Secretary 
finds that the free space no longer is needed to carry out 
activities related to air traffic control or navigation.
    (j) Use of Revenue in Hawaii.--
          (1) In this subsection--
                  (A) ``duty-free merchandise'' and ``duty-free 
                sales enterprise'' have the same meanings given 
                those terms in section 555(b)(8) of the Tariff 
                Act of 1930 (19 U.S.C. 1555(b)(8)).
                  (B) ``highway'' and ``Federal-aid system'' 
                have the same meanings given those terms in 
                section 101(a) of title 23.
          (2) Notwithstanding subsection (b)(1) of this 
        section, Hawaii may use, for a project for construction 
        or reconstruction of a highway on a Federal-aid system 
        that is not more than 10 miles by road from an airport 
        and that will facilitate access to the airport, revenue 
        from the sales at off-airport locations in Hawaii of 
        duty-free merchandise under a contract between Hawaii 
        and a duty-free sales enterprise. However, the revenue 
        resulting during a Hawaiian fiscal year may be used 
        only if the amount of the revenue, plus amounts Hawaii 
        receives in the fiscal year from all other sources for 
        costs Hawaii incurs for operating all airports it 
        operates and for debt service related to capital 
        projects for the airports (including interest and 
        amortization of principal costs), is more than 150 
        percent of the projected costs for the fiscal year.
          (3)(A) Revenue from sales referred to in paragraph 
        (2) of this subsection in a Hawaiian fiscal year that 
        Hawaii may use may not be more than the amount that is 
        greater than 150 percent as determined under paragraph 
        (2).
          (B) The maximum amount of revenue Hawaii may use 
        under paragraph (2) of this subsection is $ 
        250,000,000.
          (4) If a fee imposed or collected for rent, landing, 
        or service from an aircraft operator by an airport 
        operated by Hawaii is increased during the period from 
        May 4, 1990, through December 31, 1994, by more than 
        the percentage change in the Consumer Price Index of 
        All Urban Consumers for Honolulu, Hawaii, that the 
        Secretary of Labor publishes during that period and if 
        revenue derived from the fee increases because the fee 
        increased, the amount under paragraph(3)(B) of this 
        subsection shall be reduced by the amount of the 
        projected revenue increase in the period less the part 
        of the increase attributable to changes in the Index in 
        the period.
          (5) Hawaii shall determine costs, revenue, and 
        projected revenue increases referred to in this 
        subsection and shall submit the determinations to the 
        Secretary of Transportation. A determination is 
        approved unless the Secretary disapproves it not later 
        than 30 days after it is submitted.
          (6) Hawaii is not eligible for a grant under section 
        47115 of this title in a fiscal year in which Hawaii 
        uses under paragraph (2) of this subsection revenue 
        from sales referred to in paragraph (2). Hawaii shall 
        repay amounts it receives in a fiscal year under a 
        grant it is not eligible to receive because of this 
        paragraph to the Secretary of Transportation for 
        deposit in the discretionary fund established under 
        section 47115.
          (7)(A) This subsection applies only to revenue from 
        sales referred to in paragraph (2) of this subsection 
        from May 5, 1990, through December 30, 1994,and to 
        amounts in the Airport Revenue Fund of Hawaii that are 
        attributable to revenue before May 4, 1990, on sales 
        referred to in paragraph (2).
          (B) Revenue from sales referred to in paragraph (2) 
        of this subsection from May 5, 1990, through December 
        30, 1994, may be used under paragraph (2) in any 
        Hawaiian fiscal year, including a Hawaiian fiscal year 
        beginning after December 31, 1994.
    (k) Annual Summaries of Financial Reports.--The Secretary 
shall provide to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives an annual summary of the reports submitted to 
the Secretary under subsection(a)(19) of this section and under 
section 111(b) of the Federal Aviation Administration 
Authorization Act of 1994 [note to this section].
    (l) Policies and Procedures To Ensure Enforcement Against 
Illegal Diversion of Airport Revenue.--
          (1) In general.--Not later than 90 days after August 
        23, 1994, the Secretary of Transportation shall 
        establish policies and procedures that will assure the 
        prompt and effective enforcement of subsections (a)(13) 
        and (b) of this section and grant assurances made under 
        such subsections. Such policies and procedures shall 
        recognize the exemption provision in subsection (b)(2) 
        of this section and shall respond to the information 
        contained in the reports of the Inspector General of 
        the Department of Transportation on airport revenue 
        diversion and such other relevant information as the 
        Secretary may by law consider.
          (2) Revenue diversion.-- Policies and procedures to 
        be established pursuant to paragraph (1) of this 
        subsection shall prohibit, at a minimum, the diversion 
        of airport revenues (except as authorized under 
        subsection (b) of this section) through--
                  (A) direct payments or indirect payments, 
                other than payments reflecting the value of 
                services and facilities provided to the 
                airport;
                  (B) use of airport revenues for general 
                economic development, marketing, and 
                promotional activities unrelated to airports or 
                airport systems;
                  (C) payments in lieu of taxes or other 
                assessments that exceed the value of services 
                provided; or
                  (D) payments to compensate nonsponsoring 
                governmental bodies for lost tax revenues 
                exceeding stated tax rates.
          (3) Efforts to be self-sustaining.--With respect to 
        subsection (a)(13) of this section, policies and 
        procedures to be established pursuant to paragraph (1) 
        of this subsection shall take into account, at a 
        minimum, whether owners and operators of airports, when 
        entering into new or revised agreements or otherwise 
        establishing rates, charges, and fees, have undertaken 
        reasonable efforts to make their particular airports as 
        self-sustaining as possible under the circumstances 
        existing at such airports.
          (4) Administrative safeguards.--Policies and 
        procedures to be established pursuant to paragraph (1) 
        shall mandate internal controls, auditing requirements, 
        and increased levels of Department of Transportation 
        personnel sufficient to respond fully and promptly to 
        complaints received regarding possible violations of 
        subsections (a)(13) and (b) of this section and grant 
        assurances made under such subsections and to alert the 
        Secretary to such possible violations.
          (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).
    (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 fact finding; 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.
    (q) Denial of Access.--
          (1) Effect of denial.--If an owner or operator of an 
        airport described in paragraph (2) denies access to an 
        air carrier described in paragraph (3), that denial 
        shall not be considered to be unreasonable or unjust 
        discrimination or a violation of this section.
          (2) Airports to which subsection applies.--An airport 
        is described in this paragraph if it--
                  (A) is designated as a reliever airport by 
                the Administrator of the Federal Aviation 
                Administration;
                  (B) does not have an operating certificate 
                issued under part 139 of title 14, Code of 
                Federal Regulations (or any subsequent similar 
                regulations); and
                  (C) is located within a 35-mile radius of an 
                airport that has--
                          (i) at least 0.05 percent of the 
                        total annual boardings in the United 
                        States; and
                          (ii) current gate capacity to handle 
                        the demands of a public charter 
                        operation.
          (3) Air carriers described.--An air carrier is 
        described in this paragraph if it conducts operations 
        as a public charter under part 380 of title 14, Code of 
        Federal Regulations (or any subsequent similar 
        regulations) with aircraft that is designed to carry 
        more than 9 passengers per flight.
          (4) Definitions.--In this subsection:
                  (A) Air carrier; air transportation; 
                aircraft; airport.--The terms ``air carrier'', 
                ``air transportation'', ``aircraft'', and 
                ``airport'' have the meanings given those terms 
                in section 40102 of this title.
                  (B) Public charter.--The term ``public 
                charter'' means charter air transportation for 
                which the general public is provided in advance 
                a schedule containing the departure location, 
                departure time, and arrival location of the 
                flights.

Sec. 47108. Project grant agreements

    (a) Offer and Acceptance.--On approving a project grant 
application under this subchapter, the Secretary of 
Transportation shall offer the sponsor a grant to pay the 
United States Government's share of the project costs allowable 
under section 47110 of this title. The Secretary may impose 
terms on the offer that the Secretary considers necessary to 
carry out this subchapter and regulations prescribed under this 
subchapter. An offer shall state the obligations to be assumed 
by the sponsor and the maximum amount the Government will pay 
for the project from the amounts authorized under chapter 481 
of this title (except sections 48102(e), 48106, 48107, and 
48110). At the request of the sponsor, an offer of a grant for 
a project that will not be completed in one fiscal year shall 
provide for the obligation of amounts apportioned or to be 
apportioned to a sponsor under section 47114(c) of this title 
for the fiscal years necessary to pay the Government's share of 
the cost of the project. An offer that is accepted in writing 
by the sponsor is an agreement binding on the Government and 
the sponsor. The Government may pay or be obligated to pay a 
project cost only after a grant agreement for the project is 
signed.
    (b) Increasing Government's Share Under This Subchapter or 
Chapter 475.--
          (1) When an offer has been accepted in writing, the 
        amount stated in the offer as the maximum amount the 
        Government will pay may be increased only as provided 
        in paragraphs (2) and (3) of this subsection.
          (2)(A) For a project receiving assistance under a 
        grant approved under the Airport and Airway Improvement 
        Act of 1982 before October 1, 1987, the amount may be 
        increased by not more than--
                  (i) 10 percent for an airport development 
                project, except a project for acquiring an 
                interest in land; and
                  (ii) 50 percent of the total increase in 
                allowable project costs attributable to 
                acquiring an interest in land, based on current 
                creditable appraisals.
          (B) An increase under subparagraph (A) of this 
        paragraph may be paid only from amounts the Government 
        recovers from other grants made under this subchapter.
          (3) For a project receiving assistance under a grant 
        approved under the Act, this subchapter, or chapter 475 
        of this title after September 30, 1987, the amount may 
        be increased--
                  (A) for an airport development project, by 
                not more than 15 percent; and
                  (B) for a grant after September 30, 1992, to 
                acquire an interest in land for an airport 
                (except a primary airport), by not more than 
                the greater of the following, based on current 
                creditable appraisals or a court award in a 
                condemnation proceeding:
                          (i) 15 percent; or
                          (ii) 25 percent of the total increase 
                        in allowable project costs attributable 
                        to acquiring an interest in land.
    (c) Increasing Government's Share Under Airport and Airway 
Development Act of 1970.--For a project receiving assistance 
under a grant made under the Airport and Airway Development Act 
of 1970, the maximum amount the Government will pay may be 
increased by not more than 10 percent. An increase under this 
subsection may be paid only from amounts the Government 
recovers from other grants made under the Act.
    (d) Changing Workscope.--With the consent of the sponsor, 
the Secretary may amend a grant agreement made under this 
subchapter to change the workscope of a project financed under 
the grant if the amendment does not result in an increase in 
the maximum amount the Government may pay under subsection (b) 
of this section.
    (e) Change in Airport Status.--If the status of a primary 
airport changes to a nonprimary airport at a time when a 
development project under a multiyear agreement under 
subsection (a) is not yet completed, the project shall remain 
eligible for funding from discretionary funds under section 
47115 of this title at the funding level and under the terms 
provided by the agreement, subject to the availability of 
funds.

Sec. 47109. United States Government's share of project costs

    (a) General.--Except as provided in subsection (b) of this 
section, the United States Government's share of allowable 
project costs is--
          (1) 75 percent for a project at a primary airport 
        having at least .25 percent of the total number of 
        passenger boardings each year at all commercial service 
        airports;
          (2) not more than 90 percent for a project at any 
        other airport; and
          (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.
    (b) Increased Government Share.--If, under subsection (a) 
of this section, the Government's share of allowable costs of a 
project in a State containing unappropriated and unreserved 
public lands and nontaxable Indian lands (individual and 
tribal) of more than 5 percent of the total area of all lands 
in the State, is less than the share applied on June 30, 1975, 
under section 17(b) of the Airport and Airway Development Act 
of 1970, the Government's share under subsection (a) of this 
section shall be increased by the lesser of--
          (1) 25 percent;
          (2) one-half of the percentage that the area of 
        unappropriated and unreserved public lands and 
        nontaxable Indian lands in the State is of the total 
        area of the State; or
          (3) the percentage necessary to increase the 
        Government's share to the percentage that applied on 
        June 30, 1975, under section 17(b) of the Act.
    (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. 47110. Allowable project costs

    (a) General Authority.--Except as provided in section 47111 
of this title, the United States Government may pay or be 
obligated to pay, from amounts appropriated to carry out this 
subchapter, a cost incurred in carrying out a project under 
this subchapter only if the Secretary of Transportation decides 
the cost is allowable.
    (b) Allowable Cost Standards.--A project cost is 
allowable--
          (1) if the cost necessarily is incurred in carrying 
        out the project in compliance with the grant agreement 
        made for the project under this subchapter, including 
        any cost a sponsor incurs related to an audit the 
        Secretary requires under section 47121(b) or (d) of 
        this title;
          (2)(A) if the cost is incurred after the grant 
        agreement is executed and is for airport development or 
        airport planning carried out after the grant agreement 
        is executed;
          (B) if the cost is incurred after June 1, 1989, by 
        the airport operator (regardless of when the grant 
        agreement is executed) as part of a Government-approved 
        noise compatability program (including project 
        formulation costs) and is consistent with all 
        applicable statutory and administrative requirements; 
        or
          (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;
          (3) to the extent the cost is reasonable in amount;
          (4) if the cost is not incurred in a project for 
        airport development or airport planning for which other 
        Government assistance has been granted; and
          (5) if the total costs allowed for the project are 
        not more than the amount stated in the grant agreement 
        as the maximum the Government will pay (except as 
        provided in section 47108(b) of this title).
    (c) Certain Prior Costs as Allowable Costs.--The Secretary 
may decide that a project cost under subsection (b)(2)(A) of 
this section incurred after May 13, 1946, and before the date 
the grant agreement is executed is allowable if it is--
          (1) necessarily incurred in formulating an airport 
        development project, including costs incurred for field 
        surveys, plans and specifications, property interests 
        in land or airspace, and administration or other 
        incidental items that would not have been incurred 
        except for the project; or
          (2) necessarily and directly incurred in developing 
        the work scope of an airport planning project.
    (d) Terminal Development Costs.--
          (1) The Secretary may decide that the cost of 
        terminal development (including multi-modal terminal 
        development) in a nonrevenue-producing public-use area 
        of a commercial service airport is allowable for an 
        airport development project at the airport--
                  (A) if the sponsor certifies that the 
                airport, on the date the grant application is 
                submitted to the Secretary, has--
                          (i) all the safety equipment required 
                        for certification of the airport under 
                        section 44706 of this title;
                          (ii) all the security equipment 
                        required by regulation; and
                          (iii) provided for access, to the 
                        area of the airport for passengers for 
                        boarding or exiting aircraft, to those 
                        passengers boarding or exiting 
                        aircraft, except air carrier aircraft;
                  (B) if the cost is directly related to moving 
                passengers and baggage in air commerce within 
                the airport, including vehicles for moving 
                passengers between terminal facilities and 
                between terminal facilities and aircraft; and
                  (C) under terms necessary to protect the 
                interests of the Government.
          (2) In making a decision under paragraph (1) of this 
        subsection, the Secretary may approve as allowable 
        costs the expenses of terminal development in a 
        revenue-producing area and construction, 
        reconstruction, repair, and improvement in a 
        nonrevenue-producing parking lot if--
                  (A) the airport does not have more than .05 
                percent of the total annual passenger boardings 
                in the United States; and
                  (B) the sponsor certifies that any needed 
                airport development project affecting safety, 
                security, or capacity will not be deferred 
                because of the Secretary's approval.
    (e) Letters of Intent.--
          (1) The Secretary may issue a letter of intent to the 
        sponsor stating an intention to obligate from future 
        budget authority an amount, not more than the 
        Government's share of allowable project costs, for an 
        airport development project (including costs of 
        formulating the project) at a primary [or reliever] 
        airport. The letter shall establish a schedule under 
        which the Secretary will reimburse the sponsor for the 
        Government's share of allowable project costs, as 
        amounts become available, if the sponsor, after the 
        Secretary issues the letter, carries out the project 
        without receiving amounts under this subchapter.
          (2) Paragraph (1) of this subsection applies to a 
        project--
                  (A) about which the sponsor notifies the 
                Secretary, before the project begins, of the 
                sponsor's intent to carry out the project;
                  (B) that will comply with all statutory and 
                administrative requirements that would apply to 
                the project if it were carried out with amounts 
                made available under this subchapter; and
                  (C) the Secretary decides will enhance 
                system-wide airport capacity significantly and 
                meets the criteria of section 47115(d) of this 
                title.
          (3) A letter of intent issued under paragraph (1) of 
        this subsection is not an obligation of the Government 
        under section 1501 of title 31, and the letter is not 
        deemed to be an administrative commitment for 
        financing. An obligation or administrative commitment 
        may be made only as amounts are provided in 
        authorization and appropriation laws.
          (4) The total estimated amount of future Government 
        obligations covered by all outstanding letters of 
        intent under paragraph (1) of this subsection may not 
        be more than the amount authorized to carry out section 
        48103 of this title, less an amount reasonably 
        estimated by the Secretary to be needed for grants 
        under section 48103 that are not covered by a letter.
          (5) A letter of intent issued under paragraph (1) of 
        this subsection may not condition the obligation of 
        amounts on the imposition of a passenger facility fee.
          (6) Limitation on statutory construction.--Nothing in 
        this section shall be construed to prohibit the 
        obligation of amounts pursuant to a letter of intent 
        under this subsection in the same fiscal year as the 
        letter of intent is issued.
    (f) Nonallowable Costs.--Except as provided in subsection 
(d) of this section and section 47118(f) of this title, a cost 
is not an allowable airport development project cost if it is 
for--
          (1) constructing a public parking facility for 
        passenger automobiles;
          (2) constructing, altering, or repairing part of an 
        airport building, except to the extent the building 
        will be used for facilities or activities directly 
        related to the safety of individuals at the airport;
          (3) decorative landscaping; or
          (4) providing or installing sculpture or art works.
    (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. 47114. Apportionments

    (a) Definition.--In this section, ``amount subject to 
apportionment'' means the amount newly made available under 
section 48103 of this title for a fiscal year.
    (b) Apportionment Date.--On the first day of each fiscal 
year, the Secretary of Transportation shall apportion the 
amount subject to apportionment for that fiscal year as 
provided in this section.
    (c) Amounts Apportioned to Sponsors.--
          (1) (A) The Secretary shall apportion to the sponsor 
        of each primary airport for each fiscal year an amount 
        equal to--
                  (i) $7.80 for each of the first 50,000 
                passenger boardings at the airport during the 
                prior calendar year;
                  (ii) $5.20 for each of the next 50,000 
                passenger boardings at the airport during the 
                prior calendar year;
                  (iii) $2.60 for each of the next 400,000 
                passenger boardings at the airport during the 
                prior calendar year;
                  (iv) $.65 for each of the next 500,000 
                passenger boardings at the airport during the 
                prior calendar year.
                  (v) $.50 for each additional passenger 
                boarding at the airport during the prior 
                calendar year.
          (B) Not less than $500,000 nor more than $22,000,000 
        may be apportioned under subparagraph (A) of this 
        paragraph to an airport sponsor for a primary airport 
        for each fiscal year. For fiscal years beginning after 
        fiscal year 1999, the preceding sentence shall be 
        applied by substituting ``$650,000'' for ``$500,000''.
          (C) The Secretary may, notwithstanding subparagraph 
        (A), apportion to an airport sponsor in a fiscal year 
        an amount equal to the amount apportioned to that 
        sponsor in the previous fiscal year if the Secretary 
        finds that--
                  (i) passenger boardings at the airport fell 
                below 10,000 in the calendar year used to 
                calculate the apportionment;
                  (ii) the airport had at least 10,000 
                passenger boardings in the calendar year prior 
                to the calendar year used to calculate 
                apportionments to airport sponsors in a fiscal 
                year; and
                  (iii) the cause of the shortfall in passenger 
                boardings was a temporary but significant 
                interruption in service by an air carrier to 
                that airport due to an employment action, 
                natural disaster, or other event unrelated to 
                the demand for air transportation at the 
                affected airport.
          (2) Cargo only airports.--
                  (A) Apportionment.--Subject to subparagraph 
                (D), the Secretary shall apportion an amount 
                equal to [2.5 percent] 3 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)] (C) 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.
    (d) Amounts Apportioned to States.--
          (1) In this subsection--
                  (A) ``area'' includes land and water.
                  (B) ``population'' means the population 
                stated in the latest decennial census of the 
                United States.
          (2) The Secretary shall apportion to the States 18.5 
        percent of the amount subject to apportionment for each 
        fiscal year as follows:
                  (A) 0.66 percent of the apportioned amount to 
                Guam, American Samoa, the Northern Mariana 
                Islands, the Trust Territory of the Pacific 
                Islands, and the Virgin Islands.
                  (B) except as provided in paragraph (3) of 
                this subsection, 49.67 percent of the 
                apportioned amount for airports, excluding 
                primary airports but including reliever and 
                nonprimary commercial service airports, in 
                States not named in clause (A) of this 
                paragraph in the proportion that the population 
                of each of those States bears to the total 
                population of all of those States.
                  (C) except as provided in paragraph (3) of 
                this subsection, 49.67 percent of the 
                apportioned amount for airports, excluding 
                primary airports but including reliever and 
                nonprimary commercial service airports, in 
                States not named in clause (A) of this 
                paragraph in the proportion that the area of 
                each of those States bears to the total area of 
                all of those States.
          [(3) An amount apportioned under paragraph (2) of 
        this subsection for an airport in--
                  [(A) Alaska may be made available by the 
                Secretary for a public airport described in 
                section 47117(e)(1)(C)(ii) of this title to 
                which section 15(a)(3)(A)(II) of the Airport 
                and Airway Development Act of 1970 applied 
                during the fiscal year that ended September 30, 
                1981; and
                  [(B) Puerto Rico may be made available by the 
                Secretary for a primary airport and an airport 
                described in section 47117(e)(1)(C) of this 
                title.]
          (3) An amount apportioned under paragraph (2) of this 
        subsection for airports in Alaska, Hawaii, or Puerto 
        Rico may be made available by the Secretary for any 
        public airport in those respective jurisdictions.
          (4) The Secretary may permit the use of State highway 
        specifications for airfield pavement construction using 
        funds made available under this subsection at 
        nonprimary airports with runways of 5,000 feet or 
        shorter serving aircraft that do not exceed 60,000 
        pounds gross weight, if the Secretary determines that--
                  (A) safety will not be negatively affected; 
                and
                  (B) the life of the pavement will not be 
                shorter than it would be if constructed using 
                Administration standards.
        An airport may not seek funds under this subchapter for 
        runway rehabilitation or reconstruction of any such 
        airfield pavement constructed using State highway 
        specifications for a period of 10 years after 
        construction is completed.
    (e) [Alternative] Supplemental Apportionment for 
Alaska.--
          (1) [Instead of apportioning amounts for airports in 
        Alaska under] Notwithstanding subsections (c) and (d) 
        of this section, the Secretary may apportion amounts 
        for [those airports] airports in Alaska in the way in 
        which amounts were apportioned in the fiscal year 
        ending September 30, 1980, under section 15(a) of the 
        Act. However, in apportioning amounts for a fiscal year 
        under this subsection, the Secretary shall apportion--
                  (A) for each primary airport at least as much 
                as would be apportioned for the airport under 
                subsection (c)(1) of this section; and
                  (B) a total amount at least equal to the 
                minimum amount required to be apportioned to 
                airports in Alaska in the fiscal year ending 
                September 30, 1980, under section 15(a)(3)(A) 
                of the Act.
          (2) This subsection does not prohibit the Secretary 
        from making project grants for airports in Alaska from 
        the discretionary fund under section 47115 of this 
        title.
          [(3) Airports referred to in this subsection include 
        those public airports that received scheduled service 
        as of September 3, 1982, but were not apportioned 
        amounts in the fiscal year ending September 30, 1980, 
        under section 15(a) of the Act because the airports 
        were not under the control of a State or local public 
        agency.]
          (3) An amount apportioned under this subsection may 
        be used for any public airport in Alaska.
    (f) Reducing Apportionments.--An amount that would be 
apportioned under this section (except subsection (c)(2)) in a 
fiscal year to the sponsor of an airport having at least .25 
percent of the total number of boardings each year in the 
United States and for which a fee is imposed in the fiscal year 
under section 40117 of thistitle shall be reduced by an amount 
equal to 50 percent of the projected revenues from the fee in the 
fiscal year but not by more than 50 percent of the amount that 
otherwise would be apportioned under this section.

Sec. 47115. Discretionary fund

    (a) Existence and Amounts in Fund.--The Secretary of 
Transportation has a discretionary fund. The fund consists of--
          (1) amounts subject to apportionment for a fiscal 
        year that are not apportioned under section 47114(c)-
        (e) of this title; and
          (2) [25] 12.5 percent of amounts not apportioned 
        under section 47114 of this title because of section 
        47114(f).
    (b) Availability of Amounts.--Subject to subsection (c) of 
this section and section 47117(e) of this title, the fund is 
available for making grants for any purpose for which amounts 
are made available under section 48103 of this title that the 
Secretary considers most appropriate to carry out this 
subchapter. [However, 50 percent of amounts not apportioned 
under section 47114 of this title because of section 47114(f) 
and added to the fund is available for making grants for 
projects at small hub airports (as defined in section 41731 of 
this title).]
    (c) Minimum Percentage for Primary and Reliever Airports.--
At least 75 percent of the amount in the fund and distributed 
by the Secretary in a fiscal year shall be used for making 
grants--
          (1) to preserve and enhance capacity, safety, and 
        security at primary and reliever airports; and
          (2) to carry out airport noise compatibility planning 
        and programs at primary and reliever airports.
    (d) Considerations.--In selecting a project for a grant to 
preserve and enhance capacity as described in subsection (c)(1) 
of this section, the Secretary shall consider--
          (1) the effect the project will have on the overall 
        national air transportation system capacity;
          (2) the project benefit and cost, 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;
          (3) the financial commitment from non-United States 
        Government sources to preserve or enhance airport 
        capacity;
          (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.
    (e) Waiving Percentage Requirement.--If the Secretary 
decides the Secretary cannot comply with the percentage 
requirement of subsection (c) of this section in a fiscal year 
because there are insufficient qualified grant applications to 
meet that percentage, the amount the Secretary determines will 
not be distributed as required by subsection (c) is available 
for obligation during the fiscal year without regard to the 
requirement.
    (f) Consideration of Diversion of Revenues in Awarding 
Discretionary Grants.--
          (1) General rule.-- Subject to paragraph (2), in 
        deciding whether or not to distribute funds to an 
        airport from the discretionary funds established by 
        subsection (a) of this section and section 47116 of 
        this title, the Secretary shall consider as a factor 
        militating against the distribution of such funds to 
        the airport the fact that the airport is using revenues 
        generated by the airport or by local taxes on aviation 
        fuel for purposes other than capital or operating costs 
        of the airport or the local airports system or other 
        local facilities which are owned or operated by the 
        owner or operator of the airport and directly and 
        substantially related to the actual air transportation 
        of passengers or property.
          (2) Required finding.--Paragraph (1) shall apply only 
        when the Secretary finds that the amount of revenues 
        used by the airport for purposes other than capital or 
        operating costs in the airport's fiscal year preceding 
        the date of the application for discretionary funds 
        exceeds the amount of such revenues in the airport's 
        first fiscal year ending after August 23, 1994, 
        adjusted by the Secretary for changes in the Consumer 
        Price Index of All Urban Consumers published by the 
        Bureau of Labor Statistics of the Department of Labor.
    (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.
    (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.  47116. Small airport fund

    (a) Existence and Amounts in Fund.--The Secretary of 
Transportation has a small airport fund. The fund consists of 
[75] 87.5 percent of amounts not apportioned under section 
47114 of this title because of section 47114(f).
    (b) Distribution of Amounts.--The Secretary may distribute 
amounts in the fund in each fiscal year for any purpose for 
which amounts are made available under section 48103 of this 
title as follows:
          (1) one-seventh for grants for projects at small hub 
        airports (as defined in section 41731 of this title); 
        and
          (2) the remaining amounts based on the following:
                  [(1)] (A) one-third for grants to sponsors of 
                public-use airports (except commercial service 
                airports).
                  [(2)] (B) two-thirds for grants to sponsors 
                of each commercial service airport that each 
                year has less than .05 percent of the total 
                boardings in the United States in that year.
    (c) Authority To Receive Grant Not Dependent on 
Participation in Block Grant Pilot Program.--An airport in a 
State participating in the State block grant pilot program 
under section 47128 of this title may receive a grant under 
this section to the same extent the airport may receive a grant 
if the State were not participating in the program.
    (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. 47117. Use of apportioned amounts

    (a) Grant Purpose.--Except as provided in this section, an 
amount apportioned under section 47114(c)(1) or (d)(2) of this 
title is available for making grants for any purpose for which 
amounts are made available under section 48103 of this title.
    (b) Period of Availability.--An amount apportioned under 
section 47114 of this title is available to be obligated for 
grants under the apportionment only during the fiscal year for 
which the amount was apportioned and the 2 fiscal years 
immediately after that year 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. If the amount is not 
obligated under the apportionment within that time, it shall be 
added to the discretionary fund.
    (c) Primary Airports.--
          (1) An amount apportioned to a sponsor of a primary 
        airport under section 47114(c)(1) of this title is 
        available for grants for any public-use airport of the 
        sponsor included in the national plan of integrated 
        airport systems.
          (2) A sponsor of a primary airport may make an 
        agreement with the Secretary of Transportation waiving 
        any part of the amount apportioned for the airport 
        under section 47114(c)(1) of this title if the 
        Secretary makes the waived amount available for a grant 
        for another public-use airport in the same State or 
        geographical area as the primary airport.
    (d) State Use.--An amount apportioned to a State under--
          (1) section 47114(d)(2)(A) of this title is available 
        for grants for airports located in the State; and
          (2) section 47114(d)(2)(B) or (C) of this title is 
        available for grants for airports described in section 
        47114(d)(2)(B) or (C) and located in the State.
    (e) Special Apportionment Categories.--
          (1) The Secretary shall use amounts available to the 
        discretionary fund under section 47115 of this title 
        for each fiscal year as follows:
                  (A) At least [31] 35 percent for grants for 
                airport noise compatibility planning under 
                section 47505(a)(2) of this title and for 
                carrying out noise compatibility programs under 
                section 47504(c) of this title. 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] 35 percent 
                requirement is being met in that fiscal year.
                  (B) [At] at least 4 percent for each of 
                fiscal years 1997 and 1998 to sponsors of 
                current or former military airports designated 
                by the Secretary under section 47118(a) of this 
                title for grants for developing current and 
                former military airports to improve the 
                capacity of the national air transportation 
                system 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.
          (2) If the Secretary decides that an amount required 
        to be used for grants under paragraph (1) of this 
        subsection cannot be used for a fiscal year because 
        there are insufficient qualified grant applications, 
        the amount the Secretary determines cannot be used is 
        available during the fiscal year for grants for other 
        airports or for other purposes for which amounts are 
        authorized for grants under section 48103 of this 
        title.
          (3) The Secretary shall give priority in making 
        grants under paragraph (1)(A) to applications for 
        airport noise compatibility planning and programs at 
        and around airports where operations increase under 
        title V of the Air Transportation Improvement Act and 
        the amendments made by that title.
    [(f) Limitation for Commercial Service Airport in Alaska.--
The Secretary may not make a grant for a commercial service 
airport in Alaska of more than 110 percent of the amount 
apportioned for the airport for a fiscal year under section 
47114(e) of this title.]
    [(g)] (f) Discretionary Use of Apportionments.--
          (1) Subject to paragraph (2) of this subsection, if 
        the Secretary finds, based on the notices the Secretary 
        receives under section 47105(f) of this title or 
        otherwise, that an amount apportioned under section 
        47114 of this title will not be used for grants during 
        a fiscal year, the Secretary may use an equal amount 
        for grants during that fiscal year for any of the 
        purposes for which amounts are authorized for grants 
        under section 48103 of this title.
          (2) The Secretary may make a grant under paragraph 
        (1) of this subsection only if the Secretary decides 
        that--
                  (A) the total amount used for grants for the 
                fiscal year under section 48103 of this title 
                will not be more than the amount made available 
                under section 48103 for that fiscal year; and
                  (B) the amounts authorized for grants under 
                section 48103 of this title for later fiscal 
                years are sufficient for grants of the 
                apportioned amounts that were not used for 
                grants under the apportionment during the 
                fiscal year and that remain available under 
                subsection (b) of this section.
    [(h)] (g) Limiting Authority of Secretary.--The authority 
of the Secretary to make grants during a fiscal year from 
amounts that were apportioned for a prior fiscal year and 
remain available for approved airport development project 
grants under subsection (b) of this section may be impaired 
only by a law enacted after September 3, 1982, that expressly 
limits that authority.

Sec. 47120. Grant priority

    (a)  In General._In making a grant under this subchapter, 
the Secretary of Transportation may give priority to a project 
that is consistent with an integrated airport system plan.
    (b) Discretionary Funding To Be Used for Higher Priority 
Projects.--The Administrator of the Federal Aviation 
Administration shall discourage airport sponsors and airports 
from using entitlement funds for lower priority projects by 
giving lower priority to discretionary projects submitted by 
airport sponsors and airports that have used entitlement funds 
for projects that have a lower priority than the projects for 
which discretionary funds are being requested.

Sec. 47125. Conveyances of United States Government land

    [(a) Conveyances to Public Agencies.--Except as provided in 
subsection (b) of this section, the Secretary of Transportation 
shall request the head of the department, agency, or 
instrumentality of the United States Government owning or 
controlling land or airspace to convey a property interest in 
the land or airspace to the public agency sponsoring the 
project or owning or controlling the airport when necessary to 
carry out a project under this subchapter at a public airport, 
to operate a public airport, or for the future development of 
an airport under the national plan of integrated airport 
systems. The head of the department, agency, or instrumentality 
shall decide whether the requested conveyance is consistent 
with the needs of the department, agency, or instrumentality 
and shall notify the Secretary of that decision not later than 
4 months after receiving the request. If the head of the 
department, agency, or instrumentality decides that the 
requested conveyance is consistent with its needs, the head of 
the department, agency, or instrumentality, with the approval 
of the Attorney General and without cost to the Government, 
shall make the conveyance. A conveyance may be made only on the 
condition that the property interest conveyed reverts to the 
Government, at the option of the Secretary, to the extent it is 
not developed for an airport purpose or used consistently with 
the conveyance.]
    (a) Conveyances to Public Agencies.--
          (1) Request for conveyance.--Except as provided in 
        subsection (b) of this section, the Secretary of 
        Transportation--
                  (A) shall request the head of the department, 
                agency, or instrumentality of the United States 
                Government owning or controlling land or 
                airspace to convey a property interest in the 
                land or airspace to the public agency 
                sponsoring the project or owning or controlling 
                the airport when necessary to carry out a 
                project under this subchapter at a public 
                airport, to operate a public airport, or for 
                the future development of an airport under the 
                national plan of integrated airport systems; 
                and
                  (B) may request the head of such a 
                department, agency, or instrumentality to 
                convey a property interest in the land or 
                airspace to such a public agency for a use that 
                will complement, facilitate, or augment airport 
                development, including the development of 
                additional revenue from both aviation and 
                nonaviation sources.
          (2) Response to request for certain conveyances.--
        Within 4 months after receiving a request from the 
        Secretary under paragraph (1), the head of the 
        department, agency, or instrumentality shall--
                  (A) decide whether the requested conveyance 
                is consistent with the needs of the department, 
                agency, or instrumentality;
                  (B) notify the Secretary of the decision; and
                  (C) make the requested conveyance if--
                          (i) the requested conveyance is 
                        consistent with the needs of the 
                        department, agency, or instrumentality;
                          (ii) the Attorney General approves 
                        the conveyance; and
                          (iii) the conveyance can be made 
                        without cost to the United States 
                        Government.
          (3) Reversion.--Except as provided in subsection (b), 
        a conveyance under this subsection may only be made on 
        the condition that the property interest conveyed 
        reverts to the Government, at the option of the 
        Secretary, to the extent it is not developed for an 
        airport purpose or used consistently with the 
        conveyance.
    (b) Release of Certain Conditions.--The Secretary may grant 
a release from any term, condition, reservation, or restriction 
contained in any conveyance executed under this section, 
section 16 of the Federal Airport Act, section 23 of the 
Airport and Airway Development Act of 1970, or section 516 of 
the Airport and Airway Improvement Act of 1982, to facilitate 
the development of additional revenue from aeronautical and 
nonaeronautical sources if the Secretary--
          (1) determines that the property is no longer needed 
        for aeronautical purposes;
          (2) determines that the property will be used solely 
        to generate revenue for the public airport;
          (3) provides preliminary notice to the head of the 
        department, agency, or instrumentality that conveyed 
        the property interest at least 30 days before executing 
        the release;
          (4) provides notice to the public of the requested 
        release;
          (5) includes in the release a written justification 
        for the release of the property; and
          (6) determines that release of the property will 
        advance civil aviation in the United States.
    [(b)] (c) Nonapplication.--Except as specifically provided 
by law, subsection (a) of this section does not apply to land 
or airspace owned or controlled by the Government within--
          (1) a national park, national monument, national 
        recreation area, or similar area under the 
        administration of the National Park Service;
          (2) a unit of the National Wildlife Refuge System or 
        similar area under the jurisdiction of the United 
        States Fish and Wildlife Service; or
          (3) a national forest or Indian reservation.--

Sec. 47135. 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 this subchapter for 
not more than 20 projects for which grants received under the 
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.
    (c) Limitation--In no case shall the implementation of an 
innovative financing technique under this section be used in a 
manner giving rise to a direct or indirect guarantee of any 
airport debt instrument by the United States Government.
    (d) Innovative Financing Technique Defined.--In this 
section, the term ``innovative financing technique'' includes 
methods of financing projects that the Secretary determines may 
be beneficial to airport development, including--
          (1) payment of interest;
          (2) commercial bond insurance and other credit 
        enhancement associated with airport bonds for eligible 
        airport development; and
          (3) flexible non-Federal matching requirements.

Sec. 47136. Airport security program

    (a) General Authority.--To improve security at public 
airports in the United States, the Secretary of Transportation 
shall carry out not less than 1 project to test and evaluate 
innovative airport security systems and related technology.
    (b) Priority.--In carrying out this section, the Secretary 
shall give the highest priority to a request from an eligible 
sponsor for a grant to undertake a project that--
          (1) evaluates and tests the benefits of innovative 
        airport security systems or related technology, 
        including explosives detection systems, for the purpose 
        of improving airport and aircraft physical security and 
        access control; and
          (2) provides testing and evaluation of airport 
        security systems and technology in an operational, 
        testbed environment.
    (c) Matching Share.--Notwithstanding section 47109, the 
United States Government's share of allowable project costs for 
a project under this section is 100 percent.
    (d) Terms and Conditions.--The Secretary may establish such 
terms and conditions as the Secretary determines appropriate 
for carrying out a project under this section, including terms 
and conditions relating to the form and content of a proposal 
for a project, project assurances, and schedule of payments.
    (e) Eligible Sponsor Defined.--In this section, the term 
``eligible sponsor'' means a nonprofit corporation composed of 
a consortium of public and private persons, including a sponsor 
of a primary airport, with the necessary engineering and 
technical expertise to successfully conduct the testing and 
evaluation of airport and aircraft related security systems.
    (f) Authorization of Appropriations.--Of the amounts made 
available to the Secretary under section 47115 in a fiscal 
year, the Secretary shall make available not less than 
$5,000,000 for the purpose of carrying out this section.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                 PART B. AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471. AIRPORT DEVELOPMENT

          SUBCHAPTER II. SURPLUS PROPERTY FOR PUBLIC AIRPORTS

Sec. 47151. Authority to transfer an interest in surplus property

    (a) General Authority.--Subject to sections 47152 and 47153 
of this title, a department, agency, or instrumentality of the 
executive branch of the United States Government or a wholly 
owned Government corporation may [give] convey to a State, 
political subdivision of a State, or tax-supported organization 
any interest in surplus property--
          (1) that the Secretary of Transportation decides is--
                  (A) desirable for developing, improving, 
                operating, or maintaining a public airport (as 
                defined in section 47102 of this title);
                  (B) reasonably necessary to fulfill the 
                immediate and foreseeable future requirements 
                for developing, improving, operating, or 
                maintaining a public airport; or
                  (C) needed for developing sources of revenue 
                from nonaviation businesses at a public 
                airport; and
          (2) if the Administrator of General Services approves 
        the [gift] conveyance and decides the interest is not 
        best suited for industrial use.
    (b) Ensuring Compliance.--Only the Secretary may ensure 
compliance with an instrument [giving] conveying an interest in 
surplus property under this subchapter . The Secretary may 
amend the instrument to correct the instrument or to make the 
[gift] conveyance comply with law.
    (c) Disposing of Interests Not Given Under This 
Subchapter.--An interest in surplus property that could be used 
at a public airport but that is not given under this subchapter 
shall be disposed of under other applicable law.
    (d) Priority for Public Airports.--Except for requests from 
another Federal agency, a department, agency, or 
instrumentality of the Executive Branch of the United States 
Government shall give priority to a request by a public agency 
(as defined in section 47102 of this title) for surplus 
property described in subsection (a) of this section for use at 
a public airport.

Sec. 47152. Terms of [gifts] conveyances

    Except as provided in section 47153 of this title, the 
following terms apply to a [gift] conveyance of an interest in 
surplus property under this subchapter:
          (1) A State, political subdivision of a State, or 
        tax-supported organization receiving the interest may 
        use, lease, salvage, or dispose of the interest for 
        other than airport purposes only after the Secretary of 
        Transportation gives written consent that the interest 
        can be used, leased, salvaged, or disposed of without 
        materially and adversely affecting the development, 
        improvement, operation, or maintenance of the airport 
        at which the property is located.
          (2) The interest shall be used and maintained for 
        public use and benefit without unreasonable 
        discrimination.
          (3) A right may not be vested in a person, excluding 
        others in the same class from using the airport at 
        which the property is located--
                  (A) to conduct an aeronautical activity 
                requiring the operation of aircraft; or
                  (B) to engage in selling or supplying 
                aircraft, aircraft accessories, equipment, or 
                supplies (except gasoline and oil), or aircraft 
                services necessary to operate aircraft 
                (including maintaining and repairing aircraft, 
                aircraft engines, propellers, and appliances).
          (4) The State, political subdivision, or tax-
        supported organization accepting the interest shall 
        clear and protect the aerial approaches to the airport 
        by mitigating existing, and preventing future, airport 
        hazards.
          (5) During a national emergency declared by the 
        President or Congress, the United States Government is 
        entitled to use, control, or possess, without charge, 
        any part of the public airport at which the property is 
        located. However, the Government shall--
                  (A) pay the entire cost of maintaining the 
                part of the airport it exclusively uses, 
                controls, or possesses during the emergency;
                  (B) contribute a reasonable share, consistent 
                with the Government's use, of the cost of 
                maintaining the property it uses 
                nonexclusively, or over which the Government 
                has nonexclusive control or possession, during 
                the emergency; and
                  (C) pay a fair rental for use, control, or 
                possession of improvements to the airport made 
                without Government assistance.
          (6) The Government is entitled to the nonexclusive 
        use, without charge, of the landing area of an airport 
        at which the property is located. The Secretary may 
        limit the use of the landing area if necessary to 
        prevent unreasonable interference with use by other 
        authorized aircraft. However, the Government shall--
                  (A) contribute a reasonable share, consistent 
                with the Government's use, of the cost of 
                maintaining and operating the landing area; and
                  (B) pay for damages caused by its use of the 
                landing area if its use of the landing area is 
                substantial.
          (7) The State, political subdivision, or tax-
        supported organization accepting the interest shall 
        release the Government from all liability for damages 
        arising under an agreement that provides for Government 
        use of any part of an airport owned, controlled, or 
        operated by the State, political subdivision, or tax-
        supported organization on which, adjacent to which, or 
        in connection with which, the property is located.
          (8) When a term under this section is not satisfied, 
        any part of the interest in the property reverts to the 
        Government, at the option of the Government, as the 
        property then exists.

Sec. 47153. Waiving and adding terms

    (a) General Authority.--
          (1) The Secretary of Transportation may waive, 
        without charge, a term of a [gift] conveyance of an 
        interest in property under this subchapter if the 
        Secretary decides that--
                  (A) the property no longer serves the purpose 
                for which it was [given;] conveyed; or
                  (B) the waiver will not prevent carrying out 
                the purpose for which the [gift] conveyance was 
                made and is necessary to advance the civil 
                aviation interests of the United States.
          (2) The Secretary of Transportation shall waive a 
        term under paragraph (1) of this subsection on terms 
        the Secretary considers necessary to protect or advance 
        the civil aviation interests of the United States.
    (b) Waivers and inclusion of additional terms on request.--
On request of the Secretary of Transportation or the Secretary 
of a military department, a department, agency, or 
instrumentality of the executive branch of the United States 
Government or a wholly owned Government corporation may waive a 
term required by section 47152 of this title or add another 
term if the appropriate Secretary decides it is necessary to 
protect or advance the interests of the United States in civil 
aviation or for national defense.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                 PART B. AIRPORT DEVELOPMENT AND NOISE

                           CHAPTER 475. NOISE

             SUBCHAPTER II. NATIONAL AVIATION NOISE POLICY

Sec. 47528. Prohibition on operating certain aircraft not complying 
                    with stage 3 noise levels

    (a) Prohibition.--Except as provided in subsection (b) of 
this section and section 47530 of this title, a person may 
operate after December 31, 1999, a civil subsonic turbojet with 
a maximum weight of more than 75,000 pounds to or from an 
airport in the United States only if the Secretary of 
Transportation finds that the aircraft complies with the stage 
3 noise levels.
    (b) Waivers.--
          (1) If, not later than July 1, 1999, at least 85 
        percent of the aircraft used by an air carrier to 
        provide air transportation comply with the stage 3 
        noise levels, the carrier may apply for a waiver of 
        subsection (a) of this section for the remaining 
        aircraft used by the carrier to provide air 
        transportation. The application must be filed with the 
        Secretary not later than January 1, 1999, and must 
        include a plan with firm orders for making all aircraft 
        used by the carrier to provide air transportation 
        comply with the noise levels not later than December 
        31, 2003.
          (2) The Secretary may grant a waiver under this 
        subsection if the Secretary finds it would be in the 
        public interest. In making the finding, the Secretary 
        shall consider the effect of granting the waiver on 
        competition in the air carrier industry and on small 
        community air service.
          (3) A waiver granted under this subsection may not 
        permit the operation of stage 2 aircraft in the United 
        States after December 31, 2003.
    (c) Schedule for Phased-in Compliance.--The Secretary shall 
establish by regulation a schedule for phased-in compliance 
with subsection (a) of this section. The phase-in period shall 
begin on November 5, 1990, and end before December 31, 1999. 
The regulations shall establish interim compliance dates. The 
schedule for phased-in compliance shall be based on--
          (1) a detailed economic analysis of the impact of the 
        phaseout date for stage 2 aircraft on competition in 
        the airline industry, including--
                  (A) the ability of air carriers to achieve 
                capacity growth consistent with the projected 
                rate of growth for the airline industry;
                  (B) the impact of competition in the airline 
                and air cargo industries;
                  (C) the impact on nonhub and small community 
                air service; and
                  (D) the impact on new entry into the airline 
                industry; and
          (2) an analysis of the impact of aircraft noise on 
        individuals residing near airports.
    (d) Annual Report.--Beginning with calendar year 1992--
          (1) each air carrier shall submit to the Secretary an 
        annual report on the progress the carrier is making 
        toward complying with the requirements of this section 
        and regulations prescribed under this section; and
          (2) the Secretary shall submit to Congress an annual 
        report on the progress being made toward that 
        compliance.
    (e) Hawaiian Operations.--
          (1) In this subsection, ``turnaround service'' means 
        a flight between places only in Hawaii.
          (2) (A) An air carrier or foreign air carrier may not 
        operate in Hawaii, or between a place in Hawaii and a 
        place outside the 48 contiguous States, a greater 
        number of stage 2 aircraft with a maximum weight of 
        more than 75,000 pounds than it operated in Hawaii, or 
        between a place in Hawaii and a place outside the 48 
        contiguous States, on November 5, 1990.
          (B) An air carrier that provided turnaround service 
        in Hawaii on November 5, 1990, using stage 2 aircraft 
        with a maximum weight of more than 75,000 pounds may 
        include in the number of aircraft authorized under 
        subparagraph (A) of this paragraph all stage 2 aircraft 
        with a maximum weight of more than 75,000 pounds that 
        were owned or leased by that carrier on that date, 
        whether or not the aircraft were operated by the 
        carrier on that date.
          (3) An air carrier may provide turnaround service in 
        Hawaii using stage 2 aircraft with a maximum weight of 
        more than 75,000 pounds only if the carrier provided 
        the service on November 5, 1990.
          (4) An air carrier operating Stage 2 aircraft under 
        this subsection may transport Stage 2 aircraft to or 
        from the 48 contiguous States on a non-revenue basis in 
        order to--
                  (A) perform maintenance (including major 
                alterations) or preventative maintenance on 
                aircraft operated, or to be operated, within 
                the limitations of paragraph (2)(B); or
                  (B) conduct operations within the limitations 
                of paragraph (2)(B).

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                           PART C. FINANCING

       CHAPTER 481. AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

Sec. 48101. Air navigation facilities and equipment

    (a) General Authorization of Appropriations.--Not more than 
a total of the following amounts may be appropriated to the 
Secretary of Transportation out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502) to acquire, establish, and 
improve air navigation facilities under section 44502(a)(1)(A) 
of this title:
                  [(1) $2,068,000,000 for fiscal year 1997.
                  [(2) $2,129,000,000 for fiscal year 1998.]
          (1) for fiscal year 1999--
                  (A) $222,800,000 for engineering, 
                development, test, and evaluation: en route 
                programs;
                  (B) $74,700,000 for engineering, development, 
                test, and evaluation: terminal programs;
                  (C) $108,000,000 for engineering, 
                development, test, and evaluation: landing and 
                navigational aids;
                  (D) $17,790,000 for engineering, development, 
                test, and evaluation: research, test, and 
                evaluation equipment and facilities programs;
                  (E) $391,358,300 for air traffic control 
                facilities and equipment: en route programs;
                  (F) $492,315,500 for air traffic control 
                facilities and equipment: terminal programs;
                  (G) $38,764,400 for air traffic control 
                facilities and equipment: flight services 
                programs;
                  (H) $50,500,000 for air traffic control 
                facilities and equipment: other ATC facilities 
                programs;
                  (I) $162,400,000 for non-ATC facilities and 
                equipment programs;
                  (J) $14,500,000 for training and equipment 
                facilities programs;
                  (K) $280,800,000 for mission support 
                programs;
                  (L) $235,210,000 for personnel and related 
                expenses; and
          (2) $2,189,000,000 for fiscal year 2000.
          (b) Major Airway Capital Investment Plan Changes.--If 
        the Secretary decides that it is necessary to augment 
        or substantially modify elements of the Airway Capital 
        Investment Plan referred to in section 44501(b) of this 
        title (including a decision that it is necessary to 
        establish more than 23 area control facilities), not 
        more than $100,000,000 may be appropriated to the 
        Secretary out of the Fund for the fiscal year ending 
        September 30, 1994, to carry out the augmentation or 
        modification.
    (c) Availability of Amounts.--Amounts appropriated under 
this section remain available until expended.

Sec. 48103. Airport planning and development and noise compatibility 
                    planning and programs

    The total amounts which shall be available after September 
30, 1998, to the Secretary of Transportation out of the Airport 
and Airway Trust Fund established under section 9502 of the 
Internal Revenue Code of 1986 (26 U.S.C. 9502) to make grants 
for airport planning and airport development under section 
47104 of this title, airport noise compatibility planning under 
section 47505(a)(2) of this title, and carrying out noise 
compatibility programs under section 47504(c) of this title 
shall be [$1,205,000,000 for the six-month period beginning 
October 1, 1998.] $2,410,000,000 for fiscal years ending before 
October 1, 1999, and $4,885,000,000 for fiscal years ending 
before October 1, 2000.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                        PART D. PUBLIC AIRPORTS

             CHAPTER 491. METROPOLITAN WASHINGTON AIRPORTS

Sec. 49104. Lease of Metropolitan Washington Airports.

    (a) In General.--The lease between the Secretary of 
Transportation and the Metropolitan Washington Airports 
Authority under section 6005(a) of the Metropolitan Washington 
Airports Act of 1986 (Public Law 99-500; 100 Stat.1783-375; 
Public Law 99-591; 100 Stat. 3341-378), for the Metropolitan 
Washington Airports must provide during its 50-year term at 
least the following:
          (1) The Airports Authority shall operate, maintain, 
        protect, promote, and develop the Metropolitan 
        Washington Airports as a unit and as primary airports 
        serving the Metropolitan Washington area.
          (2)(A) In this paragraph, ``airport purposes'' means 
        a use of property interests (except a sale) for--
                  (i) aviation business or activities;
                  (ii) activities necessary or appropriate to 
                serve passengers or cargo in air commerce; or
                  (iii) nonprofit, public use facilities that 
                are not inconsistent with the needs of 
                aviation.
          (B) During the period of the lease, the real property 
        constituting the Metropolitan Washington Airports shall 
        be used only for airport purposes.
          (C) If the Secretary decides that any part of the 
        real property leased to the Airports Authority under 
        this chapter is used for other than airport purposes, 
        the Secretary shall--
                  (i) direct that the Airports Authority take 
                appropriate measures to have that part of the 
                property be used for airport purposes; and
                  (ii) retake possession of the property if the 
                Airports Authority fails to have that part of 
                the property be used for airport purposes 
                within a reasonable period of time, as the 
                Secretary decides.
          (3) The Airports Authority is subject to section 
        47107(a)-(c) and (e) of this title and to the 
        assurances and conditions required of grant recipients 
        under the Airport and Airway Improvement Act of 1982 
        (Public Law 97-248; 96 Stat. 671) as in effect on June 
        7, 1987. Notwithstanding section 47107(b) of this 
        title, all revenues generated by the Metropolitan 
        Washington Airports shall be expended for the capital 
        and operating costs of the Metropolitan Washington 
        Airports.
          (4) In acquiring by contract supplies or services for 
        an amount estimated to be more than $200,000, or 
        awarding concession contracts, the Airports Authority 
        to the maximum extent practicable shall obtain complete 
        and open competition through the use of published 
        competitive procedures. By a vote of 7 members, the 
        Airports Authority may grant exceptions to the 
        requirements of this paragraph.
          (5)(A) Except as provided in subparagraph (B) of this 
        paragraph, all regulations of the Metropolitan 
        Washington Airports (14 CFR part 159) become 
        regulations of the Airports Authority as of June 7, 
        1987, and remain in effect until modified or revoked by 
        the Airports Authority under procedures of the Airports 
        Authority.
          (B) Sections 159.59(a) and 159.191 of title 14, Code 
        of Federal Regulations, do not become regulations of 
        the Airports Authority.
          (C) The Airports Authority may not increase or 
        decrease the number of instrument flight rule takeoffs 
        and landings authorized by the High Density Rule (14 
        CFR 93.121 et seq.) at Ronald Reagan Washington 
        National Airport on October 18, 1986, and may not 
        impose a limitation on the number of passengers taking 
        off or landing at Ronald Reagan Washington National 
        Airport.
          (D) Subparagraph (C) does not apply to any increase 
        in the number of instrument flight rule takeoffs and 
        landings necessary to implement exemptions granted by 
        the Secretary under section 41719.
          (6)(A) Except as specified in subparagraph (B) of 
        this paragraph, the Airports Authority shall assume all 
        rights, liabilities, and obligations of the 
        Metropolitan Washington Airports on June 7, 1987, 
        including leases, permits, licenses, contracts, 
        agreements, claims, tariffs, accounts receivable, 
        accounts payable, and litigation related to those 
        rights and obligations, regardless whether judgment has 
        been entered, damages awarded, or appeal taken. The 
        Airports Authority must cooperate in allowing 
        representatives of the Attorney General and the 
        Secretary adequate access to employees and records when 
        needed for the performance of duties and powers related 
        to the period before June 7, 1987. The Airports 
        Authority shall assume responsibility for the Federal 
        Aviation Administration's Master Plans for the 
        Metropolitan Washington Airports.
          (B) The procedure for disputes resolution contained 
        in any contract entered into on behalf of the United 
        States Government before June 7, 1987, continues to 
        govern the performance of the contract unless otherwise 
        agreed to by the parties to the contract. Claims for 
        monetary damages founded in tort, by or against the 
        Government as the owner and operator of the 
Metropolitan Washington Airports, arising before June 7, 1987, shall be 
adjudicated as if the lease had not been entered into.
          (C) The Administration is responsible for reimbursing 
        the Employees' Compensation Fund, as provided in 
        section 8147 of title 5, for compensation paid or 
        payable after June 7, 1987, in accordance with chapter 
        81 of title 5 for any injury, disability, or death due 
        to events arising before June 7, 1987, whether or not a 
        claim was filed or was final on that date.
          (D) The Airports Authority shall continue all 
        collective bargaining rights enjoyed by employees of 
        the Metropolitan Washington Airports before June 7, 
        1987.
          (7) The Comptroller General may conduct periodic 
        audits of the activities and transactions of the 
        Airports Authority in accordance with generally 
        accepted management principles, and under regulations 
        the Comptroller General may prescribe. An audit shall 
        be conducted where the Comptroller General considers it 
        appropriate. All records and property of the Airports 
        Authority shall remain in possession and custody of the 
        Airports Authority.
          (8) The Airports Authority shall develop a code of 
        ethics and financial disclosure to ensure the integrity 
        of all decisions made by its board of directors and 
        employees. The code shall include standards by which 
        members of the board will decide, for purposes of 
        section 49106(d) of this title, what constitutes a 
        substantial financial interest and the circumstances 
        under which an exception to the conflict of interest 
        prohibition may be granted.
          (9) A landing fee imposed for operating an aircraft 
        or revenues derived from parking automobiles--
                  (A) at Washington Dulles International 
                Airport may not be used for maintenance or 
                operating expenses (excluding debt service, 
                depreciation, and amortization) at Ronald 
                Reagan Washington National Airport; and
                  (B) at Ronald Reagan Washington National 
                Airport may not be used for maintenance or 
                operating expenses (excluding debt service, 
                depreciation, and amortization) at Washington 
                Dulles International Airport.
          (10) The Airports Authority shall compute the fees 
        and charges for landing general aviation aircraft at 
        the Metropolitan Washington Airports on the same basis 
        as the landing fees for air carrier aircraft, except 
        that the Airports Authority may require a minimum 
        landing fee that is not more than the landing fee for 
        aircraft weighing 12,500 pounds.
          (11) The Secretary shall include other terms 
        applicable to the parties to the lease that are 
        consistent with, and carry out, this chapter.
    (b) Payments.--Under the lease, the Airports Authority must 
pay to the general fund of the Treasury annually an amount, 
computed using the GNP Price Deflator,equal to $ 3,000,000 in 
1987 dollars. The Secretary and the Airports Authority may 
renegotiate the level of lease payments attributable to 
inflation costs every 10 years.
    (c) Enforcement of Lease Provisions.--The district courts 
of the United States have jurisdiction to compel the Airports 
Authority and its officers and employees to comply with the 
terms of the lease. The Attorney General or an aggrieved party 
may bring an action on behalf of the Government.
    (d) Extension of Lease.--The Secretary and the Airports 
Authority may at anytime negotiate an extension of the lease.

Sec. 49106. Metropolitan Washington Airports Authority

    (a) Status.--The Metropolitan Washington Airports Authority 
shall be--
          (1) a public body corporate and politic with the 
        powers and jurisdiction--
                  (A) conferred upon it jointly by the 
                legislative authority of Virginia and the 
                District of Columbia or by either of them and 
                concurred in by the legislative authority of 
                the other jurisdiction; and
                  (B) that at least meet the specifications of 
                this section and section 49108 of this title;
          (2) independent of Virginia and its local 
        governments, the District of Columbia, and the United 
        States Government; and
          (3) a political subdivision constituted only to 
        operate and improve the Metropolitan Washington 
        Airports as primary airports serving the Metropolitan 
        Washington area.
    (b) General Authority.--
          (1) The Airports Authority shall be authorized--
                  (A) to acquire, maintain, improve, operate, 
                protect, and promote the Metropolitan 
                Washington Airports for public purposes;
                  (B) to issue bonds from time to time in its 
                discretion for public purposes, including 
                paying any part of the cost of airport 
                improvements, construction, and rehabilitation 
                and the acquisition of real and personal 
                property, including operating equipment for the 
                airports;
                  (C) to acquire real and personal property by 
                purchase, lease, transfer, or exchange;
                  (D) to exercise the powers of eminent domain 
                in Virginia that are conferred on it by 
                Virginia;
                  (E) to levy fees or other charges; and
                  (F) to make and maintain agreements with 
                employee organizations to the extent that the 
                Federal Aviation Administration was authorized 
                to do so on October 18, 1996.
          (2) Bonds issued under paragraph (1)(B) of this 
        subsection--
                  (A) are not a debt of Virginia, the District 
                of Columbia, or a political subdivision of 
                Virginia or the District of Columbia; and
                  (B) may be secured by the Airports 
                Authority's revenues generally, or exclusively 
                from the income and revenues of certain 
                designated projects whether or not any part of 
                the projects are financed from the proceeds of 
                the bonds.
    (c) Board of Directors.--
          (1) The Airports Authority shall be governed by a 
        board of directors composed of the following 13 
        members:
                  (A) 5 members appointed by the Governor of 
                Virginia;
                  (B) 3 members appointed by the Mayor of the 
                District of Columbia;
                  (C) 2 members appointed by the Governor of 
                Maryland; and
                  (D) 3 members appointed by the President with 
                the advice and consent of the Senate.
          (2) The chairman of the board shall be appointed from 
        among the members by majority vote of the members and 
        shall serve until replaced by majority vote of the 
        members.
          (3) Members of the board shall be appointed by the 
        board for 6 years, except that of the members first 
        appointed by the President after October 9, 1996, one 
        shall be appointed for 4 years. A member may serve 
        after the expiration of that member's term until a 
        successor has taken office.
          (4) A member of the board--
                  (A) may not hold elective or appointive 
                political office;
                  (B) serves without compensation except for 
                reasonable expenses incident to board 
                functions; and
                  (C) must reside within the Washington 
                Standard Metropolitan Statistical Area, except 
                that a member of the board appointed by the 
                President must be a registered voter of a State 
                other than Maryland, Virginia, or the District 
                of Columbia.
          (5) A vacancy in the board shall be filled in the 
        manner in which the original appointment was made. A 
        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 that term.
          (6) (A) Not more than 2 of the members of the board 
        appointed by the President may be of the same political 
        party.
                  (B) In carrying out their duties on the 
                board, members appointed by the President shall 
                ensure that adequate consideration is given to 
                the national interest.
                  (C) The members to be appointed under 
                paragraph (1)(D) of this subsection must be 
                appointed before October 1, 1997. If the 
                deadline is not met, the Secretary of 
                Transportation and the Airports Authority are 
                subject to the limitations of section 49108 of 
                this title until all members referred to in 
                paragraph (1)(D) are appointed.
                  (D) A member appointed by the President may 
                be removed by the President for cause.
          (7) Eight votes are required to approve bond issues 
        and the annual budget.
    (d) Conflicts of Interest.--Members of the board and their 
immediate families may not be employed by or otherwise hold a 
substantial financial interest in any enterprise that has or is 
seeking a contract or agreement with the Airports Authority or 
is an aeronautical, aviation services, or airport services 
enterprise that otherwise has interests that can be directly 
affected by the Airports Authority. The official appointing a 
member may make an exception if the financial interest is 
completely disclosed when the member is appointed and the 
member does not participate in board decisions that directly 
affect the interest.
    (e) Certain actions to be taken by regulation.--An action 
of the Airports Authority changing, or having the effect of 
changing, the hours of operation of, or the type of aircraft 
serving, either of the Metropolitan Washington Airports may be 
taken only by regulation of the Airports Authority.
    (f) Administrative.--To assist the Secretary in carrying 
out this chapter, the Secretary may hire 2 staff individuals to 
be paid by the Airports Authority. The Airports Authority shall 
provide clerical and support staff that the Secretary may 
require.
    (g) Review of Contracting Procedures.--The Comptroller 
General shall review contracts of the Airports Authority to 
decide whether the contracts were awarded by procedures that 
follow sound Government contracting principles and comply with 
section 49104(a)(4) of this title. The Comptroller General 
shall submit periodic reports of the conclusions reached as a 
result of the review to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate.

Sec. 49107. Federal employees at Metropolitan Washington Airports

    (a) Labor Agreements.--
          (1) The Metropolitan Washington Airports Authority 
        shall adopt all labor agreements that were in effect on 
        June 7, 1987. Unless the parties otherwise agree, the 
        agreements must be renegotiated before June 7, 1992.
          (2) Employee protection arrangements made under this 
        section shall ensure, during the 50-year lease term, 
        the continuation of all collective bargaining rights 
        enjoyed by transferred employees retained by the 
        Airports Authority.
    (b) Civil Service Retirement.--Any Federal employee who 
transferred to the Airports Authority and who on June 6, 1987, 
was subject to subchapter III of chapter 83 or chapter 84 of 
title 5, is subject to subchapter II of chapter 83 or chapter 
84 for so long as continually employed by the Airports 
Authority without a break in service. For purposes of 
subchapter III of chapter 83 and chapter 84, employment by the 
Airports Authority without a break in continuity of service is 
deemed to be employment by the United States Government. The 
Airports Authority is the employing agency for purposes of 
subchapter III of chapter 83 and chapter 84 and shall 
contribute to the Civil Service Retirement and Disability Fund 
amounts required by subchapter III of chapter 83 and chapter 
84.
    (c) Access to Records.--The Airports Authority shall allow 
representatives of the Secretary of Transportation adequate 
access to employees and employee records of the Airports 
Authority when needed to carry out a duty or power related to 
the period before June 7, 1987. The Secretary shall provide the 
Airports Authority access to employee records of transferring 
employees for appropriate purposes.

Sec. 49111. Relationship to and effect of other laws

    (a) Same Powers and Restrictions Under Other Laws.--To 
ensure that the Metropolitan Washington Airports Authority has 
the same proprietary powers and is subject to the same 
restrictions under United States law as any other airport 
except as otherwise provided in this chapter, during the period 
that the lease authorized by section 6005 of the Metropolitan 
Washington Airports Act of 1986 (Public Law 99-500; 100 Stat. 
1783-375; Public Law 99-591; 100 Stat. 3341-378) is in effect--
          (1) the Metropolitan Washington Airports are deemed 
        to be public airports for purposes of chapter 471 of 
        this title; and (2) the Act of June 29, 1940 (ch. 444, 
        54 Stat. 686), the First Supplemental Civil Functions 
        Appropriations Act, 1941 (ch. 780, 54 Stat. 1030), and 
        the Act of September 7, 1950 (ch. 905, 64 Stat. 770), 
        do not apply to the operation of the Metropolitan 
        Washington Airports, and the Secretary of 
        Transportation is relieved of all responsibility under 
        those Acts.
    (b) Inapplicability of Certain Laws.--The Metropolitan 
Washington Airports and the Airports Authority are not subject 
to the requirements of any law solely by reason of the 
retention of the United States Government of the fee simple 
title to those airports.
    (c) Police Power.--Virginia shall have concurrent police 
power authority over the Metropolitan Washington Airports, and 
the courts of Virginia may exercise jurisdiction over Ronald 
Reagan Washington National Airport.
    (d) Planning.--
          (1) The authority of the National Capital Planning 
        Commission under section 5 of the Act of June 6, 1924 
        (40 U.S.C. 71d), does not apply to the Airports 
        Authority.
          (2) The Airports Authority shall consult with--
                  (A) the Commission and the Advisory Council 
                on Historic Preservation before undertaking any 
                major alterations to the exterior of the main 
                terminal at Washington Dulles International 
                Airport; and
                  (B) the Commission before undertaking 
                development that would alter the skyline of 
                Ronald Reagan Washington National Airport when 
                viewed from the opposing shoreline of the 
                Potomac River or from the George Washington 
                Parkway.
    [(e) Operation Limitations.--The Administrator of the 
Federal Aviation Administration may not increase the number of 
instrument flight rule takeoffs and landings authorized for air 
carriers by the High Density Rule (14 CFR 93.121 et seq.) at 
Ronald Reagan Washington National Airport on October 18, 1986, 
and may not decrease the number of those takeoffs and landings 
except for reasons of safety.]