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113th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 113-554
======================================================================
TRANSPARENT AIRFARES ACT OF 2014
_______
July 24, 2014.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 4156]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 4156) to amend title 49, United
States Code, to allow advertisements and solicitations for
passenger air transportation to state the base airfare of the
transportation, and for other purposes, having considered the
same, report favorably thereon without amendment and recommend
that the bill do pass.
CONTENTS
Page
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Legislative History and Consideration............................ 2
Committee Votes.................................................. 2
Committee Oversight Findings..................................... 3
New Budget Authority and Tax Expenditures........................ 3
Congressional Budget Office Cost Estimate........................ 3
Performance Goals and Objectives................................. 4
Advisory of Earmarks............................................. 4
Duplication of Federal Programs.................................. 4
Disclosure of Directed Rulemakings............................... 4
Federal Mandate Statement........................................ 4
Preemption Clarification......................................... 4
Advisory Committee Statement..................................... 5
Applicability of Legislative Branch.............................. 5
Section-by-Section Analysis of Legislation....................... 5
Changes in Existing Law Made by the Bill, As Reported............ 5
Purpose of Legislation
H.R. 4156, the ``Airfare Transparency Act of 2014,''
clarifies that it is not an unfair or deceptive practice to
state in an advertisement or solicitation the base fare for
passenger air transportation as long as the government-imposed
taxes and fees and the total cost of the air transportation are
clearly and separately disclosed in the advertisement or
solicitation.
Background and Need for Legislation
Virtually all consumer products are sold at a base price,
with taxes added on at the point of purchase. However, in
January 2012, the United States Department of Transportation
(DOT) fundamentally changed U.S. airline advertising practices
by implementing a rule that prohibits air carriers and ticket
agents from providing full disclosure of government imposed
taxes and fees in advertised prices. DOT's previous advertising
rules had been in effect for 25 years. The DOT's 2012
advertising rule requires air carriers and ticket agents to
include all government imposed taxes and fees in the advertised
price of a ticket. As a result, government imposed taxes and
fees may not always be apparent to the traveling public.
H.R. 4156 will allow air carriers and ticket agents to
display the actual cost of air travel in a clear and
transparent way--enabling passengers to see the base airfare as
well as the government-imposed taxes and fees. It does this by
amending section 41712 of title 49, United States Code, to
clarify that it is not an unfair or deceptive practice to
display, in an advertisement or solicitation, the base fare for
the air transportation as long as the taxes, fees and total
cost are clearly and separately disclosed in the advertisement
or solicitation.
Hearings
No hearings were held on H.R. 4156.
Legislative History and Consideration
On March, 6, 2014, Rep. Bill Shuster introduced H.R. 4156,
along with original cosponsors Representatives Peter DeFazio,
Tom Graves, Rick Larsen, Frank LoBiondo, and Nick Rahall.
On April 9, 2014, the Committee on Transportation and
Infrastructure met in open session and ordered the bill
reported favorably to the House by voice vote with a quorum
present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no record votes taken in connection
with consideration of H.R. 4156 or ordering the measure
reported. A motion to order H.R. 4156 reported favorably to the
House was agreed to by voice vote with a quorum present.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in the report.
Congressional Budget Office Cost Estimate
With respect to the requirement of clause 3(c)(3) of rule
XII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 4156 from the
Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 18, 2014.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4156, the
Transparent Airfares Act of 2014.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Megan
Carroll.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 4156--Transparent Airfares Act of 2014
H.R. 4156 would require the Department of Transportation
(DOT) to promulgate a rule related to how prices for certain
types of air transportation are advertised. Under current
policies, DOT requires that advertised prices for air travel
reflect the total price per passenger to be paid by customers,
including government-imposed taxes and fees. Under H.R. 4156,
sellers of air transportation could instead advertise base
airfares, provided that advertisements also disclose the amount
of additional government-imposed taxes and fees that customers
would pay.
CBO estimates that enacting H.R. 4156 would have no
significant effect on the federal budget. Based on information
from DOT we estimate that any costs incurred to complete the
proposed rulemaking, which would be subject to the availability
of appropriated funds, would be insignificant. H.R. 4156 would
not affect direct spending or revenues; therefore, pay-as-you-
go procedures do not apply.
H.R. 4156 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Megan Carroll.
The estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goal and objective of this legislation is to
restore transparency to airline advertising by clarifying that
it is not an unfair or deceptive practice to display, in an
advertisement or solicitation, the base fare for the air
transportation as long as the taxes, fees and total cost are
clearly and separately disclosed in the advertisement or
solicitation.
Advisory of Earmarks
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. No
provision in the bill includes an earmark, limited tax benefit,
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of
rule XXI.
Duplication of Federal Programs
Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013),
the Committee finds that no provision of H.R. 4156 establishes
or reauthorizes a program of the Federal government known to be
duplicative of another Federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Disclosure of Directed Rulemakings
Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013),
the Committee estimates that enacting H.R. 4156 would require
the Secretary of Transportation, not later than 120 days after
enactment, to issue final regulations to carry out the
amendment made to section 41712 of title 49, United States
Code.
Federal Mandate Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 4156 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability of Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Section-by-Section Analysis of Legislation
Section 1. Short title is the ``Transparent Airfares Act of 2014''
Section 2. Full fare advertising
Subsection (a) amends section 41712 of title 49, United
States Code to clarify that it is not an unfair or deceptive
practice to state in an advertisement or solicitation for
passenger air transportation the base fare for the air
transportation as long as the government imposed taxes and fees
and total cost are clearly and separately disclosed in the
advertisement or solicitation. This subsection also sets forth
how the disclosure should be accomplished and defines the terms
``base airfare'' and ``covered entity''.
Subsection (b) clarifies that air carriers and ticket
agents must still disclose the total cost of the air
transportation, including government imposed taxes and fees,
prior to the purchase of the ticket.
Subsection (c) requires the Secretary of Transportation to
issue final regulations carrying out the amendment in
subsection (a) not later than 120 days after enactment.
Subsection (d) sets forth the effective date of the
amendments and Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
TITLE 49, UNITED STATES CODE
* * * * * * *
SUBTITLE VII--AVIATION PROGRAMS
* * * * * * *
PART A--AIR COMMERCE AND SAFETY
* * * * * * *
SUBPART II--ECONOMIC REGULATION
* * * * * * *
CHAPTER 417--OPERATIONS OF CARRIERS
* * * * * * *
SUBCHAPTER I--REQUIREMENTS
* * * * * * *
Sec. 41712. Unfair and deceptive practices and unfair methods of
competition
(a) * * *
* * * * * * *
(d) Full Fare Advertising.--
(1) In general.--It shall not be an unfair or
deceptive practice under subsection (a) for a covered
entity to state in an advertisement or solicitation for
passenger air transportation the base airfare for the
air transportation if the covered entity clearly and
separately discloses--
(A) the government-imposed taxes and fees
associated with the air transportation; and
(B) the total cost of the air transportation.
(2) Form of disclosure.--
(A) In general.--For purposes of paragraph
(1), the information described in paragraphs
(1)(A) and (1)(B) shall be disclosed in the
advertisement or solicitation in a manner that
clearly presents the information to the
consumer.
(B) Internet advertisements and
solicitations.--For purposes of paragraph (1),
with respect to an advertisement or
solicitation for passenger air transportation
that appears on an Internet Web site, the
information described in paragraphs (1)(A) and
(1)(B) may be disclosed through a link or pop-
up, as such terms may be defined by the
Secretary, that displays the information in a
manner that is easily accessible and viewable
by the consumer.
(3) Definitions.--In this subsection, the following
definitions apply:
(A) Base airfare.--The term ``base airfare''
means the cost of passenger air transportation,
excluding government-imposed taxes and fees.
(B) Covered entity.--The term ``covered
entity'' means an air carrier, including an
indirect air carrier, foreign carrier, ticket
agent, or other person offering to sell tickets
for passenger air transportation or a tour or
tour component that must be purchased with air
transportation.
* * * * * * *
