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115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 115-296

======================================================================
  
  21ST CENTURY AVIATION INNOVATION, REFORM, AND REAUTHORIZATION ACT

                               ----------                              

                                 REPORT

                                 OF THE

                      COMMITTEE ON TRANSPORTATION
                           AND INFRASTRUCTURE

                             together with

                            DISSENTING VIEWS

                        [TO ACCOMPANY H.R. 2997]
                        

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               September 6, 2017.--Ordered to be printed


-----------------------------------------------------------------------------
                                                
          

21ST CENTURY AVIATION INNOVATION, REFORM, AND REAUTHORIZATION ACT


-----------------------------------------------------------------------------

115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 115-296

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

   21ST CENTURY AVIATION INNOVATION, REFORM, AND REAUTHORIZATION ACT

                               ----------                              

                                 REPORT

                                 OF THE

                      COMMITTEE ON TRANSPORTATION
                           AND INFRASTRUCTURE

                             together with

                            DISSENTING VIEWS

                        [TO ACCOMPANY H.R. 2997]
                        

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               September 6, 2017.--Ordered to be printed



                                 __________
                               

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
26-747 PDF                  WASHINGTON : 2017      



_______________________________________________________________________

              
               
115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 115-296               
               
======================================================================

 
   21ST CENTURY AVIATION INNOVATION, REFORM, AND REAUTHORIZATION ACT

                                _______
                                

 September 6, 2017.--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

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2997]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 2997) to transfer operation of air 
traffic services currently provided by the Federal Aviation 
Administration to a separate not-for-profit corporate entity, 
to reauthorize programs of the Federal Aviation Administration, 
and for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................   102
Background and Need for Legislation..............................   102
Hearings and Roundtables.........................................   123
Legislative History and Consideration............................   127
Committee Votes..................................................   130
Committee Oversight Findings.....................................   151
New Budget Authority and Tax Expenditures........................   151
Congressional Budget Office Cost Estimate........................   151
Performance Goals and Objectives.................................   168
Advisory of Earmarks.............................................   169
Duplication of Federal Programs..................................   169
Disclosure of Directed Rulemakings...............................   169
Federal Mandate Statement........................................   171
Preemption Clarification.........................................   171
Advisory Committee Statement.....................................   171
Applicability of Legislative Branch..............................   172
Section-by-Section Analysis of Legislation.......................   172
Changes in Existing Law Made by the Bill, as Reported............   213
Dissenting Views.................................................   458

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``21st Century 
Aviation Innovation, Reform, and Reauthorization Act'' or the ``21st 
Century AIRR Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Effective date.

                        TITLE I--AUTHORIZATIONS

                  Subtitle A--Funding of FAA Programs

Sec. 101. Airport planning and development and noise compatibility 
planning and programs.
Sec. 102. Facilities and equipment.
Sec. 103. FAA operations.
Sec. 104. Adjustment to AIP program funding.
Sec. 105. Funding for aviation programs.
Sec. 106. Applicability.

                 Subtitle B--Passenger Facility Charges

Sec. 111. Passenger facility charge modernization.
Sec. 112. Pilot program for passenger facility charge authorizations.

         Subtitle C--Airport Improvement Program Modifications

Sec. 121. Clarification of airport obligation to provide FAA airport 
space.
Sec. 122. Mothers' rooms at airports.
Sec. 123. Extension of competitive access reports.
Sec. 124. Grant assurances.
Sec. 125. Government share of project costs.
Sec. 126. Updated veterans' preference.
Sec. 127. Special rule.
Sec. 128. Marshall Islands, Micronesia, and Palau.
Sec. 129. Nondiscrimination.
Sec. 130. State block grant program expansion.
Sec. 131. Midway Island Airport.
Sec. 132. Property conveyance releases.
Sec. 133. Minority and disadvantaged business participation.
Sec. 134. Contract tower program.
Sec. 135. Airport access roads in remote locations.
Sec. 136. Buy America requirements.

        Subtitle D--Airport Noise and Environmental Streamlining

Sec. 151. Recycling plans for airports.
Sec. 152. Pilot program sunset.
Sec. 153. Extension of grant authority for compatible land use planning 
and projects by State and local governments.
Sec. 154. Updating airport noise exposure maps.
Sec. 155. Stage 3 aircraft study.
Sec. 156. Addressing community noise concerns.
Sec. 157. Study on potential health impacts of overflight noise.
Sec. 158. Environmental mitigation pilot program.
Sec. 159. Aircraft noise exposure.
Sec. 160. Community involvement in FAA NextGen projects located in 
metroplexes.
Sec. 161. Critical habitat on or near airport property.
Sec. 162. Clarification of reimbursable allowed costs of FAA memoranda 
of agreement.

         TITLE II--AMERICAN AIR NAVIGATION SERVICES CORPORATION

Sec. 201. Purposes.

       Subtitle A--Establishment of Air Traffic Services Provider

Sec. 211. American Air Navigation Services Corporation.

            Subtitle B--Amendments to Federal Aviation Laws

Sec. 221. Definitions.
Sec. 222. Sunset of FAA air traffic entities and officers.
Sec. 223. Role of Administrator.
Sec. 224. Emergency powers.
Sec. 225. Presidential transfers in time of war.
Sec. 226. Airway capital investment plan before date of transfer.
Sec. 227. Aviation facilities before date of transfer.
Sec. 228. Judicial review.
Sec. 229. Civil penalties.

                       Subtitle C--Other Matters

Sec. 241. Use of Federal technical facilities.
Sec. 242. Ensuring progress on NextGen priorities before date of 
transfer.
Sec. 243. Severability.
Sec. 244. Prohibition on receipt of Federal funds.

               TITLE III--FAA SAFETY CERTIFICATION REFORM

                     Subtitle A--General Provisions

Sec. 301. Definitions.
Sec. 302. Safety Oversight and Certification Advisory Committee.

               Subtitle B--Aircraft Certification Reform

Sec. 311. Aircraft certification performance objectives and metrics.
Sec. 312. Organization designation authorizations.
Sec. 313. ODA review.
Sec. 314. Type certification resolution process.
Sec. 315. Safety enhancing equipment and systems for small general 
aviation airplanes.
Sec. 316. Review of certification process for small general aviation 
airplanes.

                  Subtitle C--Flight Standards Reform

Sec. 331. Flight standards performance objectives and metrics.
Sec. 332. FAA task force on flight standards reform.
Sec. 333. Centralized safety guidance database.
Sec. 334. Regulatory Consistency Communications Board.

                      Subtitle D--Safety Workforce

Sec. 341. Safety workforce training strategy.
Sec. 342. Workforce review.

                   Subtitle E--International Aviation

Sec. 351. Promotion of United States aerospace standards, products, and 
services abroad.
Sec. 352. Bilateral exchanges of safety oversight responsibilities.
Sec. 353. FAA leadership abroad.
Sec. 354. Registration, certification, and related fees.

                            TITLE IV--SAFETY

                     Subtitle A--General Provisions

Sec. 401. FAA technical training.
Sec. 402. Safety critical staffing.
Sec. 403. International efforts regarding tracking of civil aircraft.
Sec. 404. Aircraft data access and retrieval systems.
Sec. 405. Advanced cockpit displays.
Sec. 406. Marking of towers.
Sec. 407. Cabin evacuation.
Sec. 408. ODA staffing and oversight.
Sec. 409. Funding for additional safety needs.
Sec. 410. Funding for additional FAA licensing needs.
Sec. 411. Emergency medical equipment on passenger aircraft.
Sec. 412. HIMS program.
Sec. 413. Acceptance of voluntarily provided safety information.
Sec. 414. Flight attendant duty period limitations and rest 
requirements.
Sec. 415. Secondary cockpit barriers.
Sec. 416. Aviation maintenance industry technical workforce.
Sec. 417. Critical airfield markings.

                 Subtitle B--Unmanned Aircraft Systems

Sec. 431. Definitions.
Sec. 432. Codification of existing law; additional provisions.
Sec. 433. Unmanned aircraft test ranges.
Sec. 434. Sense of Congress regarding unmanned aircraft safety.
Sec. 435. UAS privacy review.
Sec. 436. Public UAS operations by Tribal governments.
Sec. 437. Evaluation of aircraft registration for small unmanned 
aircraft.
Sec. 438. Study on roles of governments relating to low-altitude 
operation of small unmanned aircraft.
Sec. 439. Study on financing of unmanned aircraft services.
Sec. 440. Update of FAA comprehensive plan.
Sec. 441. Cooperation related to certain counter-UAS technology.

                   TITLE V--AIR SERVICE IMPROVEMENTS

           Subtitle A--Airline Customer Service Improvements

Sec. 501. Reliable air service in American Samoa.
Sec. 502. Cell phone voice communication ban.
Sec. 503. Advisory committee for aviation consumer protection.
Sec. 504. Improved notification of insecticide use.
Sec. 505. Advertisements and disclosure of fees for passenger air 
transportation.
Sec. 506. Involuntarily bumping passengers after aircraft boarded.
Sec. 507. Availability of consumer rights information.
Sec. 508. Consumer complaints hotline.
Sec. 509. Widespread disruptions.
Sec. 510. Involuntarily denied boarding compensation.
Sec. 511. Consumer information on actual flight times.
Sec. 512. Advisory committee for transparency in air ambulance 
industry.
Sec. 513. Air ambulance complaints.
Sec. 514. Passenger rights.

            Subtitle B--Aviation Consumers With Disabilities

Sec. 541. Select subcommittee.
Sec. 542. Aviation consumers with disabilities study.
Sec. 543. Feasibility study on in-cabin wheelchair restraint systems.
Sec. 544. Access advisory committee recommendations.

                Subtitle C--Small Community Air Service

Sec. 551. Essential air service authorization.
Sec. 552. Extension of final order establishing mileage adjustment 
eligibility.
Sec. 553. Study on essential air service reform.
Sec. 554. Small community air service.
Sec. 555. Air transportation to noneligible places.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Review of FAA strategic cybersecurity plan.
Sec. 602. Consolidation and realignment of FAA services and facilities.
Sec. 603. FAA review and reform.
Sec. 604. Aviation fuel.
Sec. 605. Right to privacy when using air traffic control system.
Sec. 606. Air shows.
Sec. 607. Part 91 review, reform, and streamlining.
Sec. 608. Aircraft registration.
Sec. 609. Air transportation of lithium cells and batteries.
Sec. 610. Remote tower pilot program for rural and small communities.
Sec. 611. Ensuring FAA readiness to provide seamless oceanic 
operations.
Sec. 612. Sense of Congress regarding women in aviation.
Sec. 613. Obstruction evaluation aeronautical studies.
Sec. 614. Aircraft leasing.
Sec. 615. Report on obsolete test equipment.
Sec. 616. Retired military controllers.
Sec. 617. Pilots sharing flight expenses with passengers.
Sec. 618. Aviation rulemaking committee for part 135 pilot rest and 
duty rules.
Sec. 619. Metropolitan Washington Airports Authority.
Sec. 620. Terminal Aerodrome Forecast.
Sec. 621. Federal Aviation Administration employees stationed on Guam.
Sec. 622. Technical corrections.
Sec. 623. Application of veterans' preference to Federal Aviation 
Administration personnel management system.
Sec. 624. Public aircraft eligible for logging flight times.
Sec. 625. Federal Aviation Administration workforce review.
Sec. 626. State taxation.
Sec. 627. Aviation and aerospace workforce of the future.
Sec. 628. Future aviation and aerospace workforce study.
Sec. 629. FAA leadership on civil supersonic aircraft.
Sec. 630. Oklahoma registry office.
Sec. 631. Foreign air transportation under United States-European Union 
Air Transport Agreement.
Sec. 632. Training on human trafficking for certain staff.
Sec. 633. Part 107 implementation improvements.
Sec. 634. Part 107 transparency and technology improvements.
Sec. 635. Prohibitions against smoking on passenger flights.
Sec. 636. Consumer protection requirements relating to large ticket 
agents.
Sec. 637. Agency procurement reporting requirements.
Sec. 638. Zero-emission vehicles and technology.
Sec. 639. Employee Assault Prevention and Response Plans.
Sec. 640. Study on training of customer-facing air carrier employees.
Sec. 641. Minimum dimensions for passenger seats.
Sec. 642. Study of ground transportation options.

SEC. 2. EFFECTIVE DATE.

  Except as otherwise expressly provided, this Act and the amendments 
made by this Act shall take effect on the date of enactment of this 
Act.

                        TITLE I--AUTHORIZATIONS

                  Subtitle A--Funding of FAA Programs

SEC. 101. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY 
                    PLANNING AND PROGRAMS.

  (a) Authorization.--Section 48103(a) of title 49, United States Code, 
is amended by striking ``section 47504(c)'' and all that follows 
through the period at the end and inserting the following: ``section 
47504(c)--
          ``(1) $3,597,000,000 for fiscal year 2018;
          ``(2) $3,666,000,000 for fiscal year 2019;
          ``(3) $3,746,000,000 for fiscal year 2020;
          ``(4) $3,829,000,000 for fiscal year 2021;
          ``(5) $3,912,000,000 for fiscal year 2022; and
          ``(6) $3,998,000,000 for fiscal year 2023.''.
  (b) Obligation Authority.--Section 47104(c) of title 49, United 
States Code, is amended in the matter preceding paragraph (1) by 
striking ``September 30, 2017,'' and inserting ``September 30, 2023,''.

SEC. 102. FACILITIES AND EQUIPMENT.

  (a) Authorization of Appropriations From Airport and Airway Trust 
Fund.--Section 48101(a) of title 49, United States Code, is amended by 
striking paragraphs (1) through (5) and inserting the following:
          ``(1) $2,920,000,000 for fiscal year 2018.
          ``(2) $2,984,000,000 for fiscal year 2019.
          ``(3) $3,049,000,000 for fiscal year 2020.''.
  (b) Set Asides.--Section 48101(d) of title 49, United States Code, is 
amended by inserting ``, carried out using amounts appropriated under 
subsection (a),'' after ``air traffic control modernization project''.
  (c) Authorization of Appropriations From General Fund.--
          (1) In general.--Title 49, United States Code, is amended by 
        inserting after section 48101 the following:

``Sec. 48101a. Other facilities and equipment

  ``There is authorized to be appropriated to the Secretary of 
Transportation to acquire, establish, and improve facilities and 
equipment (other than facilities and equipment relating to air traffic 
services)--
          ``(1) $189,000,000 for fiscal year 2021;
          ``(2) $193,000,000 for fiscal year 2022; and
          ``(3) $198,000,000 for fiscal year 2023.''.
          (2) Clerical amendment.--The analysis for chapter 481 of 
        title 49, United States Code, is amended by inserting after the 
        item relating to section 48101 the following:

``48101a. Other facilities and equipment.''.

          (3) Conforming amendments.--
                  (A) Submission of budget information and legislative 
                recommendations and comments.--Section 48109 of title 
                49, United States Code, is amended by inserting ``, 
                48101a,'' before ``or 48102''.
                  (B) Reprogramming notification requirement.--Section 
                48113 of title 49, United States Code, is amended by 
                inserting ``48101a,'' before ``or 48103''.

SEC. 103. FAA OPERATIONS.

  (a) Authorization of Appropriations From General Fund.--Section 
106(k)(1) of title 49, United States Code, is amended--
          (1) in the paragraph heading by inserting ``from general 
        fund'' after ``maintenance''; and
          (2) by striking subparagraphs (A) through (E) and inserting 
        the following:
                  ``(A) $2,059,000,000 for fiscal year 2018;
                  ``(B) $2,126,000,000 for fiscal year 2019;
                  ``(C) $2,197,000,000 for fiscal year 2020;
                  ``(D) $1,957,000,000 for fiscal year 2021;
                  ``(E) $2,002,000,000 for fiscal year 2022; and
                  ``(F) $2,047,000,000 for fiscal year 2023.''.
  (b) Authorization of Appropriations From Airport and Airway Trust 
Fund.--Section 106(k)(2) of title 49, United States Code, is amended to 
read as follows:
          ``(2) Salaries, operations, and maintenance from airport and 
        airway trust fund.--There is authorized to be appropriated to 
        the Secretary out of the Airport and Airway Trust Fund 
        established under section 9502 of the Internal Revenue Code of 
        1986 for salaries, operations, and maintenance of the 
        Administration--
                  ``(A) $8,073,000,000 for fiscal year 2018;
                  ``(B) $8,223,000,000 for fiscal year 2019; and
                  ``(C) $8,374,000,000 for fiscal year 2020.''.
  (c) Authority To Transfer Funds.--Section 106(k)(3) of title 49, 
United States Code, is amended--
          (1) by striking ``fiscal years 2012 through 2017'' and 
        inserting ``fiscal years 2018 through 2020''; and
          (2) by striking ``paragraph (1)'' each place it appears and 
        inserting ``paragraphs (1) and (2)''.

SEC. 104. ADJUSTMENT TO AIP PROGRAM FUNDING.

  Section 48112 of title 49, United States Code, and the item relating 
to such section in the analysis for chapter 481 of such title, are 
repealed.

SEC. 105. FUNDING FOR AVIATION PROGRAMS.

  Section 48114(a)(1)(A)(ii) of title 49, United States Code, is 
amended by striking ``in fiscal year 2014 and each fiscal year 
thereafter'' and inserting ``in fiscal years 2014 through 2017''.

SEC. 106. APPLICABILITY.

  This subtitle, and the amendments made by this subtitle, shall apply 
only to fiscal years beginning after September 30, 2017.

                 Subtitle B--Passenger Facility Charges

SEC. 111. PASSENGER FACILITY CHARGE MODERNIZATION.

  Section 40117(b) of title 49, United States Code, is amended--
          (1) in paragraph (1) by striking ``or $3'' and inserting 
        ``$3, $4, or $4.50'';
          (2) by repealing paragraph (4);
          (3) in paragraph (6)--
                  (A) by striking ``specified in paragraphs (1) and 
                (4)'' and inserting ``specified in paragraph (1)''; and
                  (B) by striking ``imposed under paragraph (1) or 
                (4)'' and inserting ``imposed under paragraph (1)''; 
                and
          (4) in paragraph (7)(A)--
                  (A) by striking ``specified in paragraphs (1), (4), 
                and (6)'' and inserting ``specified in paragraphs (1) 
                and (6)''; and
                  (B) by striking ``imposed under paragraph (1) or 
                (4)'' and inserting ``imposed under paragraph (1)''.

SEC. 112. PILOT PROGRAM FOR PASSENGER FACILITY CHARGE AUTHORIZATIONS.

  Section 40117(l) of title 49, United States Code, is amended--
          (1) in the subsection heading by striking  ``at Nonhub 
        Airports''; and
          (2) in paragraph (1) by striking ``nonhub''.

         Subtitle C--Airport Improvement Program Modifications

SEC. 121. CLARIFICATION OF AIRPORT OBLIGATION TO PROVIDE FAA AIRPORT 
                    SPACE.

  Section 44502 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(f) Airport Space.--
          ``(1) In general.--Except as provided in paragraph (2), the 
        Administrator of the Federal Aviation Administration may not 
        require an airport owner, operator, or sponsor (as defined in 
        section 47102) to provide building construction, maintenance, 
        utilities, administrative support, or space on airport property 
        to the Federal Aviation Administration without adequate 
        compensation.
          ``(2) Exceptions.--Paragraph (1) does not apply in any case 
        in which an airport owner, operator, or sponsor--
                  ``(A) provides land or buildings without compensation 
                prior to the date of transfer (as defined in section 
                90101(a)) to the Federal Aviation Administration for 
                facilities used to carry out activities related to air 
                traffic control or navigation pursuant to a grant 
                assurance; or
                  ``(B) provides goods or services to the Federal 
                Aviation Administration without compensation or at 
                below-market rates pursuant to a negotiated agreement 
                between the owner, operator, or sponsor and the 
                Administrator.''.

SEC. 122. MOTHERS' ROOMS AT AIRPORTS.

  (a) Lactation Area Defined.--Section 47102 of title 49, United States 
Code, is amended by adding at the end the following:
          ``(29) `lactation area' means a room or other location in a 
        commercial service airport that--
                  ``(A) provides a location for members of the public 
                to express breast milk that is shielded from view and 
                free from intrusion from the public;
                  ``(B) has a door that can be locked;
                  ``(C) includes a place to sit, a table or other flat 
                surface, and an electrical outlet;
                  ``(D) is readily accessible to and usable by 
                individuals with disabilities, including individuals 
                who use wheelchairs; and
                  ``(E) is not located in a restroom.''.
  (b) Project Grant Written Assurances for Large and Medium Hub 
Airports.--
          (1) In general.--Section 47107(a) of title 49, United States 
        Code, is amended--
                  (A) in paragraph (20) by striking ``and'' at the end;
                  (B) in paragraph (21) by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(22) with respect to a medium or large hub airport, the 
        airport owner or operator will maintain a lactation area in 
        each passenger terminal building of the airport in the sterile 
        area (as defined in section 1540.5 of title 49, Code of Federal 
        Regulations) of the building.''.
          (2) Applicability.--
                  (A) In general.--The amendment made by paragraph (1) 
                shall apply to a project grant application submitted 
                for a fiscal year beginning on or after the date that 
                is 2 years after the date of enactment of this Act.
                  (B) Special rule.--The requirement in the amendment 
                made by paragraph (1) that a lactation area be located 
                in the sterile area of a passenger terminal building 
                shall not apply with respect to a project grant 
                application for a period of time, determined by the 
                Secretary of Transportation, if the Secretary 
                determines that construction or maintenance activities 
                make it impracticable or unsafe for the lactation area 
                to be located in the sterile area of the building.
  (c) Terminal Development Costs.--Section 47119(a) of title 49, United 
States Code, is amended by adding at the end the following:
          ``(3) Lactation areas.--In addition to the projects described 
        in paragraph (1), the Secretary may approve a project for 
        terminal development for the construction or installation of a 
        lactation area at a commercial service airport.''.
  (d) Pre-Existing Facilities.--On application by an airport sponsor, 
the Secretary may determine that a lactation area in existence on the 
date of enactment of this Act complies with the requirement of section 
47107(a)(22) of title 49, United States Code, as added by this section, 
notwithstanding the absence of one of the facilities or characteristics 
referred to in the definition of the term ``lactation area'' in section 
47102 of such title, as added by this section.

SEC. 123. EXTENSION OF COMPETITIVE ACCESS REPORTS.

  Section 47107(r)(3) of title 49, United States Code, is amended by 
striking ``October 1, 2017'' and inserting ``October 1, 2023''.

SEC. 124. GRANT ASSURANCES.

  (a) Construction of Recreational Aircraft.--Section 47107 is amended 
by adding at the end the following:
  ``(u) Construction of Recreational Aircraft.--
          ``(1) In general.--The construction of a covered aircraft 
        shall be treated as an aeronautical activity for purposes of--
                  ``(A) determining an airport's compliance with a 
                grant assurance made under this section or any other 
                provision of law; and
                  ``(B) the receipt of Federal financial assistance for 
                airport development.
          ``(2) Covered aircraft defined.--In this subsection, the term 
        `covered aircraft' means an aircraft--
                  ``(A) used or intended to be used exclusively for 
                recreational purposes; and
                  ``(B) constructed or under construction by a private 
                individual at a general aviation airport.''.
  (b) Community Use of Airport Land.--Section 47107 of title 49, United 
States Code, as amended by this section, is further amended by adding 
at the end the following:
  ``(v) Community Use of Airport Land.--
          ``(1) In general.--Notwithstanding subsection (a)(13), and 
        subject to paragraph (2), the sponsor of a public-use airport 
        shall not be considered to be in violation of this subtitle, or 
        to be found in violation of a grant assurance made under this 
        section, or under any other provision of law, as a condition 
        for the receipt of Federal financial assistance for airport 
        development, solely because the sponsor has entered into an 
        agreement, including a revised agreement, with a local 
        government providing for the use of airport property for an 
        interim compatible recreational purpose at below fair market 
        value.
          ``(2) Restrictions.--This subsection shall apply only--
                  ``(A) to an agreement regarding airport property that 
                was initially entered into before the publication of 
                the Federal Aviation Administration's Policy and 
                Procedures Concerning the Use of Airport Revenue, dated 
                February 16, 1999;
                  ``(B) if the agreement between the sponsor and the 
                local government is subordinate to any existing or 
                future agreements between the sponsor and the 
                Secretary, including agreements related to a grant 
                assurance under this section;
                  ``(C) to airport property that was acquired under a 
                Federal airport development grant program;
                  ``(D) if the airport sponsor has provided a written 
                statement to the Administrator that the property made 
                available for a recreational purpose will not be needed 
                for any aeronautical purpose during the next 10 years;
                  ``(E) if the agreement includes a term of not more 
                than 2 years to prepare the airport property for the 
                interim compatible recreational purpose and not more 
                than 10 years of use for that purpose;
                  ``(F) if the recreational purpose will not impact the 
                aeronautical use of the airport;
                  ``(G) if the airport sponsor provides a certification 
                that the sponsor is not responsible for preparation, 
                start-up, operations, maintenance, or any other costs 
                associated with the recreational purpose; and
                  ``(H) if the recreational purpose is consistent with 
                Federal land use compatibility criteria under section 
                47502.
          ``(3) Statutory construction.--Nothing in this subsection may 
        be construed as permitting a diversion of airport revenue for 
        the capital or operating costs associated with the community 
        use of airport land.''.

SEC. 125. GOVERNMENT SHARE OF PROJECT COSTS.

  Section 47109(a) of title 49, United States Code, is amended--
          (1) in paragraph (1) by striking ``primary airport having at 
        least .25 percent of the total number of passenger boardings 
        each year at all commercial service airports;'' and inserting 
        ``medium or large hub airport;''; and
          (2) by striking paragraph (5) and inserting the following:
          ``(5) 95 percent for a project that--
                  ``(A) the Administrator determines is a successive 
                phase of a multi-phase construction project for which 
                the sponsor received a grant in fiscal year 2011; and
                  ``(B) for which the United States Government's share 
                of allowable project costs could otherwise be 90 
                percent under paragraph (2) or (3).''.

SEC. 126. UPDATED VETERANS' PREFERENCE.

  Section 47112(c)(1)(C) of title 49, United States Code, is amended--
          (1) by striking ``or Operation New Dawn for more'' and 
        inserting ``Operation New Dawn, Operation Inherent Resolve, 
        Operation Freedom's Sentinel, or any successor contingency 
        operation to such operations for more''; and
          (2) by striking ``or Operation New Dawn (whichever is 
        later)'' and inserting ``Operation New Dawn, Operation Inherent 
        Resolve, Operation Freedom's Sentinel, or any successor 
        contingency operation to such operations (whichever is 
        later)''.

SEC. 127. SPECIAL RULE.

  Section 47114(d)(3) of title 49, United States Code, is amended by 
adding at the end the following:
                  ``(C) During fiscal years 2018 through 2020--
                          ``(i) an airport that accrued apportionment 
                        funds under subparagraph (A) in fiscal year 
                        2013 that is listed as having an unclassified 
                        status under the most recent national plan of 
                        integrated airport systems shall continue to 
                        accrue apportionment funds under subparagraph 
                        (A) at the same amount the airport accrued 
                        apportionment funds in fiscal year 2013, 
                        subject to the conditions of this paragraph;
                          ``(ii) notwithstanding the period of 
                        availability as described in section 47117(b), 
                        an amount apportioned to an airport under 
                        clause (i) shall be available to the airport 
                        only during the fiscal year in which the amount 
                        is apportioned; and
                          ``(iii) notwithstanding the waiver permitted 
                        under section 47117(c)(2), an airport receiving 
                        apportionment funds under clause (i) may not 
                        waive its claim to any part of the apportioned 
                        funds in order to make the funds available for 
                        a grant for another public-use airport.
                  ``(D) An airport that re-establishes its classified 
                status shall be eligible to accrue apportionment funds 
                pursuant to subparagraph (A) so long as such airport 
                retains its classified status.''.

SEC. 128. MARSHALL ISLANDS, MICRONESIA, AND PALAU.

  Section 47115 of title 49, United States Code, is amended--
          (1) by striking subsection (i);
          (2) by redesignating subsection (j) as subsection (i); and
          (3) in subsection (i) (as so redesignated) by striking 
        ``fiscal years 2012 through 2017'' and inserting ``fiscal years 
        2017 through 2023''.

SEC. 129. NONDISCRIMINATION.

  Section 47123 of title 49, United States Code, is amended--
          (1) by striking ``The Secretary of Transportation'' and 
        inserting the following:
  ``(a) In General.--The Secretary of Transportation''; and
          (2) by adding at the end the following:
  ``(b) Indian Employment.--
          ``(1) Tribal sponsor preference.--Consistent with section 
        703(i) of the Civil Rights Act of 1964 (42 U.S.C. 2000e-2(i)), 
        nothing in this section shall preclude the preferential 
        employment of Indians living on or near a reservation on a 
        project or contract at--
                  ``(A) an airport sponsored by an Indian tribal 
                government; or
                  ``(B) an airport located on an Indian reservation.
          ``(2) State preference.--A State may implement a preference 
        for employment of Indians on a project carried out under this 
        subchapter near an Indian reservation.
          ``(3) Implementation.--The Secretary shall cooperate with 
        Indian tribal governments and the States to implement this 
        subsection.
          ``(4) Indian tribal government defined.--In this section, the 
        term `Indian tribal government' has the same meaning given that 
        term in section 102 of the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5122).''.

SEC. 130. STATE BLOCK GRANT PROGRAM EXPANSION.

  Section 47128(a) of title 49, United States Code, is amended by 
striking ``not more than 9 qualified States for fiscal years 2000 and 
2001 and 10 qualified States for each fiscal year thereafter'' and 
inserting ``not more than 20 qualified States for each fiscal year''.

SEC. 131. MIDWAY ISLAND AIRPORT.

  Section 186(d) of the Vision 100--Century of Aviation Reauthorization 
Act (117 Stat. 2518) is amended in the first sentence by striking 
``fiscal years 2012 through 2017'' and inserting ``fiscal years 2017 
through 2023''.

SEC. 132. PROPERTY CONVEYANCE RELEASES.

  Section 817(a) of the FAA Modernization and Reform Act of 2012 (49 
U.S.C. 47125 note) is amended--
          (1) by striking ``or section 23'' and inserting ``, section 
        23''; and
          (2) by inserting ``, or section 47125 of title 49, United 
        States Code'' before the period at the end.

SEC. 133. MINORITY AND DISADVANTAGED BUSINESS PARTICIPATION.

  Congress finds the following:
          (1) While significant progress has occurred due to the 
        establishment of the airport disadvantaged business enterprise 
        program (49 U.S.C. 47107(e) and 47113), discrimination and 
        related barriers continue to pose significant obstacles for 
        minority- and women-owned businesses seeking to do business in 
        airport-related markets across the Nation. These continuing 
        barriers merit the continuation of the airport disadvantaged 
        business enterprise program.
          (2) Congress has received and reviewed testimony and 
        documentation of race and gender discrimination from numerous 
        sources, including congressional hearings and roundtables, 
        scientific reports, reports issued by public and private 
        agencies, news stories, reports of discrimination by 
        organizations and individuals, and discrimination lawsuits. 
        This testimony and documentation shows that race- and gender-
        neutral efforts alone are insufficient to address the problem.
          (3) This testimony and documentation demonstrates that 
        discrimination across the Nation poses a barrier to full and 
        fair participation in airport-related businesses of women 
        business owners and minority business owners in the racial 
        groups detailed in parts 23 and 26 of title 49, Code of Federal 
        Regulations, and has impacted firm development and many aspects 
        of airport-related business in the public and private markets.
          (4) This testimony and documentation provides a strong basis 
        that there is a compelling need for the continuation of the 
        airport disadvantaged business enterprise program and the 
        airport concessions disadvantaged business enterprise program 
        to address race and gender discrimination in airport-related 
        business.

SEC. 134. CONTRACT TOWER PROGRAM.

  (a) Air Traffic Control Contract Program.--
          (1) Special rule.--Section 47124(b)(1)(B) of title 49, United 
        States Code, is amended by striking ``exceeds the benefit for a 
        period of 18 months after such determination is made'' and 
        inserting the following: ``exceeds the benefit--
                          ``(i) for the 1-year period after such 
                        determination is made; or
                          ``(ii) if an appeal of such determination is 
                        requested, for the 1-year period described in 
                        subsection (d)(4)(D)''.
          (2) Funding of cost-share program.--Section 47124(b)(3)(E) of 
        title 49, United States Code, is amended to read as follows:
                  ``(E) Funding.--Amounts appropriated pursuant to 
                section 106(k)(1) may be used to carry out this 
                paragraph.''.
          (3) Construction of air traffic control towers.--
                  (A) Grants.--Section 47124(b)(4)(A) of title 49, 
                United States Code, is amended in each of clauses 
                (i)(III) and (ii)(III) by inserting ``, including 
                remote air traffic control tower equipment certified by 
                the Federal Aviation Administration'' after ``1996''.
                  (B) Eligibility.--Section 47124(b)(4)(B) of title 49, 
                United States Code, is amended to read as follows:
                  ``(B) Eligibility.--
                          ``(i) Before date of transfer.--Before the 
                        date of transfer (as defined in section 
                        90101(a)), an airport sponsor shall be eligible 
                        for a grant under this paragraph only if--
                                  ``(I)(aa) the sponsor is a 
                                participant in the Federal Aviation 
                                Administration contract tower program 
                                established under subsection (a) and 
                                continued under paragraph (1) or the 
                                pilot program established under 
                                paragraph (3); or
                                  ``(bb) construction of a nonapproach 
                                control tower would qualify the sponsor 
                                to be eligible to participate in such 
                                program;
                                  ``(II) the sponsor certifies that it 
                                will pay not less than 10 percent of 
                                the cost of the activities for which 
                                the sponsor is receiving assistance 
                                under this paragraph;
                                  ``(III) the Secretary affirmatively 
                                accepts the proposed contract tower 
                                into a contract tower program under 
                                this section and certifies that the 
                                Secretary will seek future 
                                appropriations to pay the Federal 
                                Aviation Administration's cost of the 
                                contract to operate the tower to be 
                                constructed under this paragraph;
                                  ``(IV) the sponsor certifies that it 
                                will pay its share of the cost of the 
                                contract to operate the tower to be 
                                constructed under this paragraph; and
                                  ``(V) in the case of a tower to be 
                                constructed under this paragraph from 
                                amounts made available under section 
                                47114(d)(2) or 47114(d)(3)(B), the 
                                Secretary certifies that--
                                          ``(aa) the Federal Aviation 
                                        Administration has consulted 
                                        the State within the borders of 
                                        which the tower is to be 
                                        constructed and the State 
                                        supports the construction of 
                                        the tower as part of its State 
                                        airport capital plan; and
                                          ``(bb) the selection of the 
                                        tower for funding is based on 
                                        objective criteria.
                          ``(ii) On and after date of transfer.--On and 
                        after the date of transfer (as defined in 
                        section 90101(a)), an airport sponsor shall be 
                        eligible for a grant under this paragraph only 
                        if--
                                  ``(I) the Secretary determines that 
                                the tower to be constructed at the 
                                sponsor's airport using the amounts of 
                                the grant will be operated pursuant to 
                                an agreement entered into by the 
                                American Air Navigation Services 
                                Corporation and an entity pursuant to 
                                section 90302(c)(3);
                                  ``(II) the sponsor certifies that it 
                                will pay not less than 10 percent of 
                                the cost of the activities for which 
                                the sponsor is receiving assistance 
                                under this paragraph; and
                                  ``(III) in the case of a tower to be 
                                constructed under this paragraph from 
                                amounts made available under section 
                                47114(d)(2) or 47114(d)(3)(B), the 
                                Secretary certifies that--
                                          ``(aa) the Federal Aviation 
                                        Administration has consulted 
                                        the State within the borders of 
                                        which the tower is to be 
                                        constructed and the State 
                                        supports the construction of 
                                        the tower as part of its State 
                                        airport capital plan; and
                                          ``(bb) the selection of the 
                                        tower for funding is based on 
                                        objective criteria.''.
                  (C) Limitation on federal share.--Section 47124(b)(4) 
                of title 49, United States Code, is amended by striking 
                subparagraph (C).
          (4) Benefit-to-cost calculation for program applicants.--
        Section 47124(b)(3) of title 49, United States Code, is amended 
        by adding at the end the following:
                  ``(G) Benefit-to-cost calculation.--Not later than 90 
                days after receiving an application to the Contract 
                Tower Program, the Secretary shall calculate a benefit-
                to-cost ratio (as described in subsection (d)) for the 
                applicable air traffic control tower for purposes of 
                selecting towers for participation in the Contract 
                Tower Program.''.
  (b) Safety Audits.--Section 47124(c) of title 49, United States Code, 
is amended--
          (1) by striking ``The Secretary'' and inserting the 
        following:
          ``(1) Before date of transfer.--Before the date of transfer 
        (as defined in section 90101(a)), the Secretary''; and
          (2) by adding at the end the following:
          ``(2) On and after date of transfer.--On and after the date 
        of transfer (as defined in section 90101(a)), oversight of air 
        traffic control towers that receive funding under this section 
        shall be carried out in accordance with performance-based 
        regulations and minimum safety standards prescribed under 
        section 90501.''.
  (c) Criteria To Evaluate Participants.--Section 47124 of title 49, 
United States Code, is amended by adding at the end the following:
  ``(d) Criteria To Evaluate Participants.--
          ``(1) Timing of evaluations.--
                  ``(A) Towers participating in cost-share program.--In 
                the case of an air traffic control tower that is 
                operated under the program established under subsection 
                (b)(3), the Secretary shall annually calculate a 
                benefit-to-cost ratio with respect to the tower.
                  ``(B) Towers participating in contract tower 
                program.--In the case of an air traffic control tower 
                that is operated under the program established under 
                subsection (a) and continued under subsection (b)(1), 
                the Secretary shall not calculate a benefit-to-cost 
                ratio after the date of enactment of this subsection 
                with respect to the tower unless the Secretary 
                determines that the annual aircraft traffic at the 
                airport where the tower is located has decreased--
                          ``(i) by more than 25 percent from the 
                        previous year; or
                          ``(ii) by more than 60 percent cumulatively 
                        in the preceding 3-year period.
          ``(2) Costs to be considered.--In establishing a benefit-to-
        cost ratio under this section with respect to an air traffic 
        control tower, the Secretary shall consider only the following 
        costs:
                  ``(A) The Federal Aviation Administration's actual 
                cost of wages and benefits of personnel working at the 
                tower.
                  ``(B) The Federal Aviation Administration's actual 
                telecommunications costs directly associated with the 
                tower.
                  ``(C) The Federal Aviation Administration's costs of 
                purchasing and installing any air traffic control 
                equipment that would not have been purchased or 
                installed except for the operation of the tower.
                  ``(D) The Federal Aviation Administration's actual 
                travel costs associated with maintaining air traffic 
                control equipment that is owned by the Administration 
                and would not be maintained except for the operation of 
                the tower.
          ``(3) Other criteria to be considered.--In establishing a 
        benefit-to-cost ratio under this section with respect to an air 
        traffic control tower, the Secretary shall add a 10 percentage 
        point margin of error to the benefit-to-cost ratio 
        determination to acknowledge and account for the direct and 
        indirect economic and other benefits that are not included in 
        the criteria the Secretary used in calculating that ratio.
          ``(4) Review of cost-benefit determinations.--In issuing a 
        benefit-to-cost ratio determination under this section with 
        respect to an air traffic control tower located at an airport, 
        the Secretary shall implement the following procedures:
                  ``(A) The Secretary shall provide the airport (or the 
                State or local government having jurisdiction over the 
                airport) at least 90 days following the date of receipt 
                of the determination to submit to the Secretary a 
                request for an appeal of the determination, together 
                with updated or additional data in support of the 
                appeal.
                  ``(B) Upon receipt of a request for an appeal 
                submitted pursuant to subparagraph (A), the Secretary 
                shall--
                          ``(i) transmit to the Administrator of the 
                        Federal Aviation Administration any updated or 
                        additional data submitted in support of the 
                        appeal; and
                          ``(ii) provide the Administrator not more 
                        than 90 days to review the data and provide a 
                        response to the Secretary based on the review.
                  ``(C) After receiving a response from the 
                Administrator pursuant to subparagraph (B), the 
                Secretary shall--
                          ``(i) provide the airport, State, or local 
                        government that requested the appeal at least 
                        30 days to review the response; and
                          ``(ii) withhold from taking further action in 
                        connection with the appeal during that 30-day 
                        period.
                  ``(D) If, after completion of the appeal procedures 
                with respect to the determination, the Secretary 
                requires the tower to transition into the program 
                established under subsection (b)(3), the Secretary 
                shall not require a cost-share payment from the 
                airport, State, or local government for 1 year 
                following the last day of the 30-day period described 
                in subparagraph (C).''.

SEC. 135. AIRPORT ACCESS ROADS IN REMOTE LOCATIONS.

  Notwithstanding section 47102 of title 49, United States Code, for 
fiscal years 2017 through 2020, the definition of the term ``terminal 
development'' under that section includes the development of an airport 
access road that--
          (1) is located in a noncontiguous State;
          (2) is not more than 3 miles in length;
          (3) connects to the nearest public roadways of not more than 
        the 2 closest census designated places; and
          (4) is constructed for the purpose of connecting the census 
        designated places with a planned or newly constructed airport.

SEC. 136. BUY AMERICA REQUIREMENTS.

  (a) Notice of Waivers.--If the Secretary of Transportation determines 
that it is necessary to waive the application of section 50101(a) of 
title 49, United States Code, based on a finding under section 50101(b) 
of that title, the Secretary, at least 10 days before the date on which 
the waiver takes effect, shall--
          (1) make publicly available, in an easily identifiable 
        location on the website of the Department of Transportation, a 
        detailed written justification of the waiver determination; and
          (2) provide an informal public notice and comment opportunity 
        on the waiver determination.
  (b) Annual Report.--For each fiscal year, the Secretary shall submit 
to the Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on waivers issued under section 
50101 of title 49, United States Code, during the fiscal year.

        Subtitle D--Airport Noise and Environmental Streamlining

SEC. 151. RECYCLING PLANS FOR AIRPORTS.

  Section 47106(a)(6) of title 49, United States Code, is amended by 
inserting ``that includes the project'' before ``, the master plan''.

SEC. 152. PILOT PROGRAM SUNSET.

  (a) In General.--Section 47140 of title 49, United States Code, is 
repealed.
  (b) Conforming Amendment.--Section 47140a of title 49, United States 
Code, is redesignated as section 47140.
  (c) Clerical Amendments.--The analysis for chapter 471 of title 49, 
United States Code, is amended--
          (1) by striking the items relating to sections 47140 and 
        47140a; and
          (2) by inserting after the item relating to section 47139 the 
        following:

``47140. Increasing the energy efficiency of airport power sources.''.

SEC. 153. EXTENSION OF GRANT AUTHORITY FOR COMPATIBLE LAND USE PLANNING 
                    AND PROJECTS BY STATE AND LOCAL GOVERNMENTS.

  Section 47141(f) of title 49, United States Code, is amended by 
striking ``September 30, 2017'' and inserting ``September 30, 2023''.

SEC. 154. UPDATING AIRPORT NOISE EXPOSURE MAPS.

  Section 47503(b) of title 49, United States Code, is amended to read 
as follows:
  ``(b) Revised Maps.--
          ``(1) In general.--An airport operator that submitted a noise 
        exposure map under subsection (a) shall submit a revised map to 
        the Secretary if, in an area surrounding an airport, a change 
        in the operation of the airport would establish a substantial 
        new noncompatible use, or would significantly reduce noise over 
        existing noncompatible uses, that is not reflected in either 
        the existing conditions map or forecast map currently on file 
        with the Federal Aviation Administration.
          ``(2) Timing.--A submission under paragraph (1) shall be 
        required only if the relevant change in the operation of the 
        airport occurs during--
                  ``(A) the forecast period of the applicable noise 
                exposure map submitted by an airport operator under 
                subsection (a); or
                  ``(B) the implementation period of the airport 
                operator's noise compatibility program.''.

SEC. 155. STAGE 3 AIRCRAFT STUDY.

  (a) Study.--Not later than 180 days after the date of enactment of 
this Act, the Comptroller General of the United States shall initiate a 
review of the potential benefits, costs, and other impacts that would 
result from a phaseout of covered stage 3 aircraft.
  (b) Contents.--The review shall include--
          (1) a determination of the number, types, frequency of 
        operations, and owners and operators of covered stage 3 
        aircraft;
          (2) an analysis of the potential benefits, costs, and other 
        impacts to air carriers, general aviation operators, airports, 
        communities surrounding airports, and the general public 
        associated with phasing out or reducing the operations of 
        covered stage 3 aircraft, assuming such a phaseout or reduction 
        is put into effect over a reasonable period of time;
          (3) a determination of lessons learned from the phaseout of 
        stage 2 aircraft that might be applicable to a phaseout or 
        reduction in the operations of covered stage 3 aircraft, 
        including comparisons between the benefits, costs, and other 
        impacts associated with the phaseout of stage 2 aircraft and 
        the potential benefits, costs, and other impacts determined 
        under paragraph (2);
          (4) a determination of the costs and logistical challenges 
        associated with recertifying stage 3 aircraft capable of 
        meeting stage 4 noise levels; and
          (5) a determination of stakeholder views on the feasibility 
        and desirability of phasing out covered stage 3 aircraft, 
        including the views of--
                  (A) air carriers;
                  (B) airports;
                  (C) communities surrounding airports;
                  (D) aircraft and avionics manufacturers;
                  (E) operators of covered stage 3 aircraft other than 
                air carriers; and
                  (F) such other stakeholders and aviation experts as 
                the Comptroller General considers appropriate.
  (c) Report.--Not later than 18 months after the date of enactment of 
this Act, the Comptroller General shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report on the results of the review.
  (d) Covered Stage 3 Aircraft Defined.--In this section, the term 
``covered stage 3 aircraft'' means an aircraft weighing more than 
75,000 pounds that is not capable of meeting the stage 4 noise levels 
in part 36 of title 14, Code of Federal Regulations.

SEC. 156. ADDRESSING COMMUNITY NOISE CONCERNS.

  When proposing a new area navigation departure procedure, or amending 
an existing procedure that would direct aircraft between the surface 
and 6,000 feet above ground level over noise sensitive areas, the 
Administrator of the Federal Aviation Administration shall consider the 
feasibility of dispersal headings or other lateral track variations to 
address community noise concerns, if--
          (1) the affected airport operator, in consultation with the 
        affected community, submits a request to the Administrator for 
        such a consideration;
          (2) the airport operator's request would not, in the judgment 
        of the Administrator, conflict with the safe and efficient 
        operation of the national airspace system; and
          (3) the effect of a modified departure procedure would not 
        significantly increase noise over noise sensitive areas, as 
        determined by the Administrator.

SEC. 157. STUDY ON POTENTIAL HEALTH IMPACTS OF OVERFLIGHT NOISE.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall enter into an agreement with an eligible institution of higher 
education to conduct a study on the health impacts of noise from 
aircraft flights on residents exposed to a range of noise levels from 
such flights.
  (b) Scope of Study.--The study shall--
          (1) include an examination of the incremental health impacts 
        attributable to noise exposure that result from aircraft 
        flights, including sleep disturbance and elevated blood 
        pressure;
          (2) be focused on residents in the metropolitan area of--
                  (A) Boston;
                  (B) Chicago;
                  (C) the District of Columbia;
                  (D) New York;
                  (E) the Northern California Metroplex;
                  (F) Phoenix;
                  (G) the Southern California Metroplex; or
                  (H) such other area as may be identified by the 
                Administrator;
          (3) consider, in particular, the incremental health impacts 
        on residents living partly or wholly underneath flight paths 
        most frequently used by aircraft flying at an altitude lower 
        than 10,000 feet, including during takeoff or landing; and
          (4) include an assessment of the relationship between a 
        perceived increase in aircraft noise, including as a result of 
        a change in flight paths that increases the visibility of 
        aircraft from a certain location, and an actual increase in 
        aircraft noise, particularly in areas with high or variable 
        levels of nonaircraft-related ambient noise.
  (c) Eligibility.--An institution of higher education is eligible to 
conduct the study if the institution--
          (1) has--
                  (A) a school of public health that has participated 
                in the Center of Excellence for Aircraft Noise and 
                Aviation Emissions Mitigation of the Federal Aviation 
                Administration; or
                  (B) a center for environmental health that receives 
                funding from the National Institute of Environmental 
                Health Sciences;
          (2) is located in one of the areas identified in subsection 
        (b);
          (3) applies to the Administrator in a timely fashion;
          (4) demonstrates to the satisfaction of the Administrator 
        that the institution is qualified to conduct the study;
          (5) agrees to submit to the Administrator, not later than 3 
        years after entering into an agreement under subsection (a), 
        the results of the study, including any source materials used; 
        and
          (6) meets such other requirements as the Administrator 
        determines necessary.
  (d) Report.--Not later than 90 days after the Administrator receives 
the results of the study, the Administrator shall submit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report containing the results.

SEC. 158. ENVIRONMENTAL MITIGATION PILOT PROGRAM.

  (a) In General.--The Secretary of Transportation shall carry out a 
pilot program involving not more than 6 projects at public-use airports 
in accordance with this section.
  (b) Grants.--In carrying out the program, the Secretary may make 
grants to sponsors of public-use airports from funds apportioned under 
section 47117(e)(1)(A) of title 49, United States Code.
  (c) Use of Funds.--Amounts from a grant received by the sponsor of a 
public-use airport under the program shall be used for environmental 
mitigation projects that will measurably reduce or mitigate aviation 
impacts on noise, air quality, or water quality at the airport or 
within 5 miles of the airport.
  (d) Eligibility.--Notwithstanding any other provision of chapter 471 
of title 49, United States Code, an environmental mitigation project 
approved under this section shall be treated as eligible for assistance 
under that chapter.
  (e) Selection Criteria.--In selecting from among applicants for 
participation in the program, the Secretary may give priority 
consideration to projects that--
          (1) will achieve the greatest reductions in aircraft noise, 
        airport emissions, or airport water quality impacts either on 
        an absolute basis or on a per dollar of funds expended basis; 
        and
          (2) will be implemented by an eligible consortium.
  (f) Federal Share.--The Federal share of the cost of a project 
carried out under the program shall be 50 percent.
  (g) Maximum Amount.--Not more than $2,500,000 may be made available 
by the Secretary in grants under the program for any single project.
  (h) Identifying Best Practices.--The Secretary may establish and 
publish information identifying best practices for reducing or 
mitigating aviation impacts on noise, air quality, and water quality at 
airports or in the vicinity of airports based on the projects carried 
out under the program.
  (i) Sunset.--The program shall terminate 5 years after the Secretary 
makes the first grant under the program.
  (j) Definitions.--In this section, the following definitions apply:
          (1) Eligible consortium.--The term ``eligible consortium'' 
        means a consortium that is comprised of 2 or more of the 
        following entities:
                  (A) Businesses incorporated in the United States.
                  (B) Public or private educational or research 
                organizations located in the United States.
                  (C) Entities of State or local governments in the 
                United States.
                  (D) Federal laboratories.
          (2) Environmental mitigation project.--The term 
        ``environmental mitigation project'' means a project that--
                  (A) introduces new environmental mitigation 
                techniques or technologies that have been proven in 
                laboratory demonstrations;
                  (B) proposes methods for efficient adaptation or 
                integration of new concepts into airport operations; 
                and
                  (C) will demonstrate whether new techniques or 
                technologies for environmental mitigation are--
                          (i) practical to implement at or near 
                        multiple public-use airports; and
                          (ii) capable of reducing noise, airport 
                        emissions, or water quality impacts in 
                        measurably significant amounts.

SEC. 159. AIRCRAFT NOISE EXPOSURE.

  (a) Review.--The Administrator of the Federal Aviation Administration 
shall conduct a review of the relationship between aircraft noise 
exposure and its effects on communities around airports.
  (b) Report.--
          (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Administrator shall submit to 
        Congress a report containing the results of the review.
          (2) Preliminary recommendations.--The report shall contain 
        such preliminary recommendations as the Administrator 
        determines appropriate for revising the land use compatibility 
        guidelines in part 150 of title 14, Code of Federal 
        Regulations, based on the results of the review and in 
        coordination with other agencies.

SEC. 160. COMMUNITY INVOLVEMENT IN FAA NEXTGEN PROJECTS LOCATED IN 
                    METROPLEXES.

  (a) Community Involvement Policy.--Not later than 180 days after the 
date of enactment of this Act, the Administrator of the Federal 
Aviation Administration shall complete a review of the Federal Aviation 
Administration's community involvement practices for Next Generation 
Air Transportation System (NextGen) projects located in metroplexes 
identified by the Administration. The review shall include, at a 
minimum, a determination of how and when to engage airports and 
communities in performance-based navigation proposals.
  (b) Report.--Not later than 60 days after completion of the review, 
the Administrator shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate a report on--
          (1) how the Administration will improve community involvement 
        practices for NextGen projects located in metroplexes;
          (2) how and when the Administration will engage airports and 
        communities in performance-based navigation proposals; and
          (3) lessons learned from NextGen projects and pilot programs 
        and how those lessons learned are being integrated into 
        community involvement practices for future NextGen projects 
        located in metroplexes.

SEC. 161. CRITICAL HABITAT ON OR NEAR AIRPORT PROPERTY.

  (a) Federal Agency Requirements.--The Secretary of Transportation, to 
the maximum extent practicable, shall work with the heads of 
appropriate Federal agencies to ensure that designations of critical 
habitat, as that term is defined in section 3 of the Endangered Species 
Act of 1973 (16 U.S.C. 1532), on or near airport property do not--
          (1) result in conflicting statutory, regulatory, or Federal 
        grant assurance requirements for airports or aircraft 
        operators;
          (2) interfere with the safe operation of aircraft; or
          (3) occur on airport-owned lands that have become attractive 
        habitat for a threatened or endangered species because such 
        lands--
                  (A) have been prepared for future development;
                  (B) have been designated as noise buffer land; or
                  (C) are held by the airport to prevent encroachment 
                of uses that are incompatible with airport operations.
  (b) State Requirements.--In a State where a State agency is 
authorized to designate land on or near airport property for the 
conservation of a threatened or endangered species in the State, the 
Secretary, to the maximum extent practicable, shall work with the State 
in the same manner as the Secretary works with the heads of Federal 
agencies under subsection (a).

SEC. 162. CLARIFICATION OF REIMBURSABLE ALLOWED COSTS OF FAA MEMORANDA 
                    OF AGREEMENT.

  Section 47504(c)(2) of title 49, United States Code, is amended--
          (1) in subparagraph (D) by striking ``and'' at the end;
          (2) in subparagraph (E) by striking the period at the end and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(F) to an airport operator of a congested airport (as 
        defined in section 47175) and a unit of local government 
        referred to in paragraph (1)(B) to carry out a project to 
        mitigate noise, if the project--
                  ``(i) consists of--
                          ``(I) replacement windows, doors, and the 
                        installation of through-the-wall air-
                        conditioning units; or
                          ``(II) a contribution of the equivalent costs 
                        to be used for reconstruction, if 
                        reconstruction is the preferred local solution;
                  ``(ii) is located at a school near the airport; and
                  ``(iii) is included in a memorandum of agreement 
                entered into before September 30, 2002, even if the 
                airport has not met the requirements of part 150 of 
                title 14, Code of Federal Regulations, and only if the 
                financial limitations of the memorandum are applied.''.

         TITLE II--AMERICAN AIR NAVIGATION SERVICES CORPORATION

SEC. 201. PURPOSES.

  It is declared to be the purpose of Congress in this title to 
transfer operation of air traffic services currently provided by the 
Federal Aviation Administration to a separate not-for-profit corporate 
entity to provide for the more efficient operation and improvement of 
air traffic services.

       Subtitle A--Establishment of Air Traffic Services Provider

SEC. 211. AMERICAN AIR NAVIGATION SERVICES CORPORATION.

  (a) In General.--Title 49, United States Code, is amended by adding 
at the end the following:

      ``Subtitle XI--American Air Navigation Services Corporation

``Chapter                                                          Sec.
``901. General Provisions...................................      90101
``903. Establishment of Air Traffic Services Provider;            90301
                            Transfer of Air Traffic 
                            Services.
``905. Regulation of Air Traffic Services Provider..........      90501
``907. General Rights of Access to Airspace, Airports, and        90701
                            Air Traffic Services Vital for 
                            Ensuring Safe Operations for All 
                            Users.
``909. Continuity of Air Traffic Services to Department of        90901
                            Defense and Other Public 
                            Agencies.
``911. Employee Management..................................      91101
``913. Other Matters........................................      91301
``915. Congressional Oversight of Air Traffic Services            91501
                            Provider.

                   ``CHAPTER 901--GENERAL PROVISIONS

``Sec.
``90101. Definitions.

``Sec. 90101. Definitions

  ``(a) In General.--In this subtitle, the following definitions apply:
          ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the FAA.
          ``(2) Air traffic services.--The term `air traffic services' 
        means services--
                  ``(A) used for the monitoring, directing, control, 
                and guidance of aircraft or flows of aircraft and for 
                the safe conduct of flight, including communications, 
                navigation, and surveillance services and provision of 
                aeronautical information; and
                  ``(B) provided directly, or contracted for, by the 
                FAA before the date of transfer.
          ``(3) Air traffic services user.--The term `air traffic 
        services user' means any individual or entity using air traffic 
        services provided by the Corporation within United States 
        airspace or international airspace delegated to the United 
        States.
          ``(4) Board.--The term `Board' means the Board of Directors 
        of the Corporation.
          ``(5) CEO.--The term `CEO' means the Chief Executive Officer 
        of the Corporation.
          ``(6) Charge; fee.--The terms `charge' and `fee' mean any 
        rate, charge, fee, or other service charge for the use of air 
        traffic services.
          ``(7) Corporation.--The term `Corporation' means the American 
        Air Navigation Services Corporation established under this 
        subtitle.
          ``(8) Date of transfer.--The term `date of transfer' means 
        the date on which the Corporation assumes operational control 
        of air traffic services from the FAA pursuant to this subtitle, 
        which shall be October 1, 2020.
          ``(9) Director.--The term `Director' means a Director of the 
        Board.
          ``(10) FAA.--The term `FAA' means the Federal Aviation 
        Administration.
          ``(11) Interim ceo.--The term `Interim CEO' means the Interim 
        Chief Executive Officer of the Corporation.
          ``(12) Regional air carrier.--The term `regional air carrier' 
        means an air carrier operating under part 121 of title 14, Code 
        of Federal Regulations, that--
                  ``(A) exclusively or primarily operates aircraft with 
                a seating capacity of 76 seats or fewer; and
                  ``(B) is not majority owned or controlled by any 
                other air carrier or air carrier holding company.
          ``(13) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
  ``(b) Applicability of Other Definitions.--Except with respect to the 
terms specifically defined in this subtitle, the definitions contained 
in section 40102(a) shall apply to the terms used in this subtitle.

``CHAPTER 903--ESTABLISHMENT OF AIR TRAFFIC SERVICES PROVIDER; TRANSFER 
                        OF AIR TRAFFIC SERVICES

``Sec.
``90301. Establishment of Corporation.
``90302. Transfer of air traffic services.
``90303. Role of Secretary in transferring air traffic services to 
Corporation.
``90304. Status and applicable laws.
``90305. Nomination Panels for Board.
``90306. Board of Directors.
``90307. Fiduciary duties and qualifications of Directors.
``90308. Bylaws and duties.
``90309. Committees of Board; independent auditors.
``90310. Advisory Board.
``90311. Officers and their responsibilities.
``90312. Authority of Corporation.
``90313. Charges and fees for air traffic services.
``90314. Preemption of authority over air traffic services.
``90315. Actions by and against Corporation.
``90316. Transfer of Federal personnel to Corporation.
``90317. Transfer of facilities to Corporation.
``90318. Approval of transferred air navigation facilities and other 
equipment.
``90319. Use of spectrum systems and data.
``90320. Transition plan.

``Sec. 90301. Establishment of Corporation

  ``(a) Federal Charter.--There is established a federally chartered, 
not-for-profit corporation to be known as the `American Air Navigation 
Services Corporation', which shall be incorporated in a State of its 
choosing.
  ``(b) Corporation Name.--
          ``(1) In general.--The Corporation may conduct its business 
        and affairs, and otherwise hold itself out, as the `American 
        Air Navigation Services Corporation' in any jurisdiction.
          ``(2) Exclusive right.--The Corporation shall have the 
        exclusive right to use the name `American Air Navigation 
        Services Corporation'.
          ``(3) Alternative name.--The Corporation may do business 
        under a name other than the `American Air Navigation Services 
        Corporation' at its choosing.

``Sec. 90302. Transfer of air traffic services

  ``(a) In General.--The Secretary shall transfer operational control 
over air traffic services within United States airspace and 
international airspace delegated to the United States to the 
Corporation on the date of transfer in a systematic and orderly manner 
that ensures continuity of safe air traffic services.
  ``(b) Management and Operation of Air Traffic Services.--Subject to 
section 90501, including the performance-based regulations and minimum 
safety standards prescribed under that section, the Corporation may 
establish and carry out plans for the management and operation of air 
traffic services within United States airspace and international 
airspace delegated to the United States.
  ``(c) Entities Authorized To Provide Air Traffic Services After Date 
of Transfer.--After the date of transfer, no entity, other than the 
Corporation, is authorized or permitted to provide air traffic services 
within United States airspace or international airspace delegated to 
the United States, except for--
          ``(1) the Department of Defense, as authorized by chapter 
        909;
          ``(2) entities to which the United States has delegated 
        certain air traffic services responsibilities;
          ``(3) entities with which the Corporation has contracted for 
        the provision of air traffic services; and
          ``(4) entities authorized to operate an unmanned aircraft 
        traffic management system or service pursuant to section 45506 
        or 45507.

``Sec. 90303. Role of Secretary in transferring air traffic services to 
                    Corporation

  ``(a) In General.--As appropriate, and except as otherwise provided, 
the Secretary shall manage and execute the transfer of operational 
control over air traffic services pursuant to section 90302(a) and any 
related transition processes and procedures.
  ``(b) Nondelegation.--Except as otherwise provided, the Secretary may 
not delegate any of the authority or requirements under this subtitle 
to the Administrator.

``Sec. 90304. Status and applicable laws

  ``(a) Non-Federal Entity.--The Corporation is not a department, 
agency, or instrumentality of the United States Government, and is not 
subject to title 31.
  ``(b) Liability.--The United States Government shall not be liable 
for the actions or inactions of the Corporation.
  ``(c) Not-For-Profit Corporation.--The Corporation shall maintain its 
status as a not-for-profit corporation exempt from taxation under the 
Internal Revenue Code of 1986.
  ``(d) No Federal Guarantee.--Any debt assumed by the Corporation 
shall not have an implied or explicit Federal guarantee.

``Sec. 90305. Nomination Panels for Board

  ``(a) In General.--The Nomination Panels described in subsection (b) 
shall be responsible for nominating individuals to serve as Directors 
pursuant to section 90306.
  ``(b) Nomination Panels.--The Nomination Panels shall be as follows:
          ``(1) Passenger air carrier nomination panel.--A Passenger 
        Air Carrier Nomination Panel composed of passenger air carrier 
        representatives, with each air carrier with more than 
        30,000,000 annual passenger enplanements designating 1 
        representative to the Panel.
          ``(2) Cargo air carrier nomination panel.--A Cargo Air 
        Carrier Nomination Panel composed of cargo air carrier 
        representatives, with each all-cargo air carrier with more than 
        1,000,000 total annual enplaned cargo revenue tons designating 
        1 representative to the Panel.
          ``(3) Regional air carrier nomination panel.--A Regional Air 
        Carrier Nomination Panel composed of regional air carrier 
        representatives, with each of the 3 largest regional air 
        carriers, as measured by annual passenger enplanements, 
        designating 1 representative to the Panel.
          ``(4) General aviation nomination panel.--A General Aviation 
        Nomination Panel composed of 6 representatives designated by 
        the principal organization representing noncommercial owners 
        and recreational operators of general aviation aircraft.
          ``(5) Business aviation nomination panel.--A Business 
        Aviation Nomination Panel composed of--
                  ``(A) 2 representatives designated by the principal 
                organization representing owners, operators, and users 
                of general aviation aircraft used exclusively in 
                furtherance of business enterprises;
                  ``(B) 2 representatives designated by the principal 
                organization representing aviation-related businesses, 
                including fixed-base operators; and
                  ``(C) 2 representatives designated by the principal 
                organization representing aerospace manufacturers of 
                general aviation aircraft and equipment.
          ``(6) Air traffic controller nomination panel.--An Air 
        Traffic Controller Nomination Panel composed of 6 
        representatives designated by the largest organization engaged 
        in collective bargaining on behalf of air traffic controllers 
        employed by the Corporation.
          ``(7) Airport nomination panel.--An Airport Nomination Panel 
        composed of--
                  ``(A) 3 representatives designated by the principal 
                organization representing commercial service airports; 
                and
                  ``(B) 3 representatives designated by the principal 
                organization representing airport executives.
          ``(8)  Commercial pilot nomination panel.--A Commercial Pilot 
        Nomination Panel composed of commercial pilot representatives, 
        with each organization engaged in collective bargaining on 
        behalf of air carrier pilots with more than 5,000 members 
        designating 1 member to the Panel.
  ``(c) Determination of Entities.--
          ``(1) Before date of transfer.--Before the date of transfer, 
        and not later than 30 days after the date of enactment of this 
        subtitle, the Secretary shall determine the entities referred 
        to in subsection (b).
          ``(2) After date of transfer.--On and after the date of 
        transfer, the Board shall determine the entities referred to in 
        subsection (b), in accordance with the bylaws of the 
        Corporation.
          ``(3) Statistics.--In determining annual statistics for 
        purposes of this subsection, the Secretary and the Board shall 
        utilize data published by the Department of Transportation for 
        the most recent calendar year.
          ``(4) Limitations.--
                  ``(A) Single designation.--No entity determined under 
                this subsection may designate a representative to more 
                than 1 Nomination Panel.
                  ``(B) Carriers owned or controlled by same holding 
                company.--If 2 or more air carriers determined under 
                this subsection are owned or controlled by the same 
                holding company, only 1 of those air carriers may 
                designate a representative to a Nomination Panel.
  ``(d) Terms.--An individual on a Nomination Panel shall serve at the 
pleasure of the entity that the individual is representing.
  ``(e) Qualifications.--Only an individual who is a citizen of the 
United States may be designated to a Nomination Panel.
  ``(f) Prohibitions.--An individual may not serve on a Nomination 
Panel if the individual is--
          ``(1) an officer or employee of the Corporation;
          ``(2) a Member of Congress or an elected official serving in 
        a State, local, or Tribal government; or
          ``(3) an officer or employee of the Federal Government or any 
        State, local, or Tribal government.
  ``(g) Largest Organization Engaged in Collective Bargaining on Behalf 
of Air Traffic Controllers Employed by the Corporation Defined.--Before 
the date of transfer, in this section, the term `largest organization 
engaged in collective bargaining on behalf of air traffic controllers 
employed by the Corporation' means the largest organization engaged in 
collective bargaining on behalf of air traffic controllers employed by 
the FAA.

``Sec. 90306. Board of Directors

  ``(a) Authority.--The powers of the Corporation shall be vested in a 
Board of Directors that governs the Corporation.
  ``(b) Composition of Board.--The Board shall be composed of the 
following Directors:
          ``(1) The CEO.
          ``(2) 2 Directors appointed by the Secretary.
          ``(3) 1 Director nominated by the Passenger Air Carrier 
        Nomination Panel.
          ``(4) 1 Director nominated by the Cargo Air Carrier 
        Nomination Panel.
          ``(5) 1 Director nominated by the Regional Air Carrier 
        Nomination Panel.
          ``(6) 1 Director nominated by the General Aviation Nomination 
        Panel.
          ``(7) 1 Director nominated by the Business Aviation 
        Nomination Panel.
          ``(8) 1 Director nominated by the Air Traffic Controller 
        Nomination Panel.
          ``(9) 1 Director nominated by the Airport Nomination Panel.
          ``(10) 1 Director nominated by the Commercial Pilot 
        Nomination Panel.
          ``(11) 2 Directors nominated and selected by the other 
        Directors.
  ``(c) Nominations and Appointments.--
          ``(1) Prior to date of transfer.--
                  ``(A) Submission of nomination lists.--Before the 
                date of transfer, and not later than 60 days after the 
                date of enactment of this subtitle, each Nomination 
                Panel shall submit to the Secretary a list, chosen by 
                consensus, of 4 individuals nominated to be Directors.
                  ``(B) Appointment and selection.--Not later than 30 
                days after the date on which the last nomination list 
                is submitted under subparagraph (A), the Secretary 
                shall--
                          ``(i) appoint 2 individuals to be Directors 
                        under subsection (b)(2); and
                          ``(ii) select, pursuant to subsection (b), 
                        the appropriate number of individuals to be 
                        Directors from each nomination list.
                  ``(C) Resubmission.--A Nomination Panel shall 
                resubmit a list submitted under subparagraph (A), not 
                later than 15 days after notification by the Secretary 
                of the need to resubmit the list, if the Secretary 
                determines that an individual on the list is--
                          ``(i) not qualified to serve as a Director 
                        under section 90307; or
                          ``(ii) otherwise not fit to serve as a 
                        Director.
                  ``(D) At-large directors.--Not later than 30 days 
                after the Secretary appoints and selects the Directors 
                pursuant to subparagraph (B), the Board shall nominate 
                and select the additional Directors under subsection 
                (b)(11) by a two-thirds vote.
          ``(2) After date of transfer.--
                  ``(A) Nomination.--As appropriate, a Nomination Panel 
                shall submit to the Board a list, chosen by consensus, 
                of 4 individuals nominated to be Directors.
                  ``(B) Selection.--The Board shall select, pursuant to 
                subsection (b), the appropriate number of individuals 
                to be Directors from a list submitted by a Nomination 
                Panel.
                  ``(C) Resubmission.--A Nomination Panel shall 
                resubmit a list submitted under subparagraph (A), not 
                later than 15 days after notification by the Board of 
                the need to resubmit the list, if the Board determines 
                that more than 1 individual on the list is--
                          ``(i) not qualified to serve as a Director 
                        under section 90307; or
                          ``(ii) otherwise not fit to serve as a 
                        Director.
                  ``(D) At-large directors.--The Board shall nominate 
                and select Directors under subsection (b)(11) in 
                accordance with the bylaws of the Corporation.
                  ``(E) Appointed directors.--None of the Directors 
                appointed by the Secretary under subsection (b)(2) 
                shall be subject to approval by the Board.
  ``(d) Chairperson.--The Chairperson of the Board shall--
          ``(1) be selected from among the Directors (other than the 
        CEO) by a majority vote of the Directors; and
          ``(2) subject to subsection (e), serve until replaced by a 
        majority vote of the Directors.
  ``(e) Terms.--
          ``(1) Initial terms.--The term of each Director appointed, or 
        nominated and selected, before the date of transfer (other than 
        the CEO) shall expire on the date that is 2 years after the 
        date of transfer.
          ``(2) Subsequent terms.--The term of each Director appointed, 
        or nominated and selected, on or after the date of transfer 
        (other than the CEO) shall be 4 years, except as provided by 
        paragraph (3).
          ``(3) Staggering.--The Board shall stagger the duration of 
        the terms of the initial Directors appointed, or nominated and 
        selected, after the date of transfer to promote the stability 
        of the Board.
          ``(4) Term limit.--Except as provided by subsection (f)(3), a 
        Director may not serve on the Board for more than 8 years.
  ``(f) Vacancies.--
          ``(1) Before date of transfer.--Before the date of transfer, 
        a vacancy on the Board shall be filled in the manner in which 
        the original appointment or selection was made.
          ``(2) After date of transfer.--After the date of transfer, a 
        vacancy on the Board shall be filled in the manner in which the 
        original appointment was made (in the case of Directors 
        appointed under subsection (b)(2)) or in the manner described 
        under subsection (c)(2) (in the case of Directors nominated by 
        Nomination Panels or the Board).
          ``(3) Service until successor takes office.--A Director may 
        serve after the expiration of the Director's term until a 
        successor has been appointed or nominated and selected.
  ``(g) Meetings and Quorum.--
          ``(1) Meetings.--
                  ``(A) In general.--The Board shall meet at the call 
                of the Chairperson (or as otherwise provided in the 
                bylaws) and, at a minimum, on a quarterly basis.
                  ``(B) Initial meeting.--Not later than 90 days after 
                the date of enactment of this subtitle, the Board shall 
                hold its initial meeting.
                  ``(C) In-person meeting.--At least 1 meeting of the 
                Board each year shall be conducted in person.
          ``(2) Quorum.--A quorum of the Board, consisting of a 
        majority of the Directors then in office, shall be required to 
        conduct any business of the Board.
          ``(3) Approval of board actions.--Except as otherwise 
        provided, the threshold for approving Board actions shall be as 
        set forth in the bylaws.
  ``(h) Removal of Directors.--A Director may be removed in accordance 
with section 90307(c) and the bylaws of the Corporation.

``Sec. 90307. Fiduciary duties and qualifications of Directors

  ``(a) Fiduciary Duties.--The fiduciary duties of a Director shall be 
solely and exclusively to the Corporation.
  ``(b) Qualifications.--
          ``(1) In general.--Only a citizen of the United States may be 
        appointed or nominated as a Director.
          ``(2) Prohibitions.--An individual may not serve as a 
        Director if the individual--
                  ``(A) is an officer, agent, or employee of the 
                Corporation (other than the CEO);
                  ``(B) is, or has been within the preceding 2 years, a 
                Member of Congress;
                  ``(C) is an elected official serving in a State, 
                local, or Tribal government;
                  ``(D) is an officer or employee of the Federal 
                Government or any State, local, or Tribal government;
                  ``(E) is a director, officer, trustee, agent, or 
                employee of--
                          ``(i) a bargaining agent that represents 
                        employees of the Corporation;
                          ``(ii) an entity that has a material interest 
                        as a supplier, client, or user of the 
                        Corporation's services; or
                          ``(iii) any of the entities determined under 
                        section 90305(c);
                  ``(F) receives any form of compensation or material 
                benefit from an entity that has a material interest as 
                a supplier, client, or user of the Corporation's 
                services, excluding compensation from a defined benefit 
                plan resulting from the individual's past employment; 
                or
                  ``(G) has or holds any other fiduciary duty, legal 
                obligation, office, employed position, or material 
                interest that would prevent the individual from 
                satisfying the requirements of subsection (a) under the 
                applicable laws of the State in which the Corporation 
                is incorporated.
          ``(3) Exception.--Subparagraphs (C) and (D) of paragraph (2) 
        shall not apply to an individual solely because the individual 
        is an elected member of a school board or is employed by an 
        institution of higher education (as defined in section 101 of 
        the Higher Education Act of 1965 (20 U.S.C. 1001)).
  ``(c) Breach of Fiduciary Duty to Corporation.--
          ``(1) In general.--The Board shall remove any Director who 
        breaches a fiduciary duty to the Corporation--
                  ``(A) pursuant to procedures to be established in the 
                bylaws of the Corporation; and
                  ``(B) not later than 30 days after determining that a 
                breach has occurred.
          ``(2) Limited private right of action.--The Corporation shall 
        have the exclusive right to seek injunctive or monetary relief 
        (or both) against a Director or former Director for a breach of 
        a fiduciary duty to the Corporation.
  ``(d) Prohibition on Indemnification and Certain Insurance.--
Notwithstanding section 90312 or any other provision of law, the 
Corporation shall neither indemnify nor procure insurance to indemnify 
any Director for liability relating to a breach of a fiduciary duty to 
the Corporation.

``Sec. 90308. Bylaws and duties

  ``(a) In General.--The Board shall adopt and amend the bylaws of the 
Corporation.
  ``(b) Bylaws.--The bylaws of the Corporation shall include, at a 
minimum--
          ``(1) the duties and responsibilities of the Board (including 
        those described in subsection (c)), officers, Advisory Board, 
        and committees of the Corporation; and
          ``(2) the operational procedures of the Corporation.
  ``(c) Duties and Responsibilities of Board.--The Board shall be 
responsible for actions of the Corporation, including--
          ``(1) adoption of an annual budget;
          ``(2) approval of a strategic plan, including updates 
        thereto, and other plans supporting the strategy laid out in 
        the strategic plan;
          ``(3) adoption of an annual action plan;
          ``(4) authorization of any form or instrument of 
        indebtedness, including loans and bond issues;
          ``(5) assessment, modification, and collection of charges and 
        fees for air traffic services in accordance with the standards 
        described in section 90313;
          ``(6) hiring and supervision of the CEO;
          ``(7) establishment and maintenance of an appropriately 
        funded reserve fund;
          ``(8) adoption of a code of conduct and code of ethics for 
        Directors, officers, agents, and employees of the Corporation;
          ``(9) establishment of a process for ensuring that the 
        fiduciary duties of a Director are solely and exclusively to 
        the Corporation;
          ``(10) establishment of a process for the removal of a 
        Director, including the removal of a Director for breach of a 
        fiduciary duty to the Corporation; and
          ``(11) adoption of a process for filling vacancies on the 
        Board.

``Sec. 90309. Committees of Board; independent auditors

  ``(a) Committees of Board.--The Board shall establish and maintain a 
Safety Committee, a Compensation Committee, a Technology Committee, and 
such other committees as the Board determines are necessary or 
appropriate to carry out the responsibilities of the Board effectively. 
Such committees shall be composed solely of Directors.
  ``(b) Independent Auditors.--The Board shall retain independent 
auditors to conduct annual audits of the Corporation's financial 
statements and internal controls.

``Sec. 90310. Advisory Board

  ``(a) Establishment.--There shall be an Advisory Board of the 
Corporation.
  ``(b) Duties.--The Advisory Board--
          ``(1) shall conduct such activities as the Board determines 
        appropriate;
          ``(2) shall submit to the Board recommendations for Directors 
        to be nominated and selected under section 90306(b)(11); and
          ``(3) may, on its own initiative, study, report, and make 
        recommendations to the Board on matters relating to the 
        Corporation's provision of air traffic services and associated 
        safety considerations.
  ``(c) Membership.--
          ``(1) Number.--The Advisory Board shall consist of not more 
        than 15 individuals, who are citizens of the United States, 
        representing interested entities.
          ``(2) Representatives.--The members of the Advisory Board 
        shall include, at a minimum, representatives of the following:
                  ``(A) Air carriers.
                  ``(B) General aviation.
                  ``(C) Business aviation.
                  ``(D) Commercial service airports.
                  ``(E) Operators and manufacturers of commercial 
                unmanned aircraft systems.
                  ``(F) Appropriate labor organizations.
                  ``(G) The Department of Defense.
                  ``(H) Small communities, including at least 1 
                community primarily served by a nonhub airport.
  ``(d) Structure; Terms.--The membership and structure of the Advisory 
Board, including the duration that individuals may serve on the 
Advisory Board, shall be determined by the Board in accordance with the 
bylaws of the Corporation.

``Sec. 90311. Officers and their responsibilities

  ``(a) Chief Executive Officer.--
          ``(1) Hiring.--
                  ``(A) In general.--The Corporation shall have a Chief 
                Executive Officer, who shall be hired by the Board to 
                manage the Corporation.
                  ``(B) Qualifications.--The CEO shall be an individual 
                who--
                          ``(i) is a citizen of the United States;
                          ``(ii) satisfies the qualifications to serve 
                        as a Director under section 90307; and
                          ``(iii) by reason of professional background 
                        and experience, is especially qualified to 
                        manage the Corporation.
          ``(2) Duties.--The CEO shall--
                  ``(A) be responsible for the management and direction 
                of the Corporation, including its officers and 
                employees, and for the exercise of all powers and 
                responsibilities of the Corporation;
                  ``(B) establish Corporation offices and define the 
                responsibilities and duties of the offices, with full 
                authority to organize the Corporation as required; and
                  ``(C) designate an officer of the Corporation who is 
                vested with the authority to act in the capacity of the 
                CEO if the CEO is absent or incapacitated.
          ``(3) Scope of authority.--
                  ``(A) In general.--The CEO shall be subject to the 
                policy guidance of the Board, report to the Board, and 
                serve at the pleasure of the Board.
                  ``(B) Authority of board.--The Board may modify or 
                revoke actions of the CEO pursuant to procedures set 
                forth in the bylaws of the Corporation.
  ``(b) Other Officers and Employees.--
          ``(1) In general.--The CEO shall appoint such other officers 
        and employees of the Corporation as the CEO determines 
        appropriate.
          ``(2) Chief operating officer; chief financial officer.--An 
        appointment of an individual as chief operating officer or 
        chief financial officer by the CEO shall be subject to the 
        approval of the Board.
          ``(3) Delegation of functions.--The CEO may delegate to the 
        other officers and employees of the Corporation any of the 
        functions of the Corporation.
          ``(4) Compensation.--Compensation for the CEO, chief 
        operating officer, and chief financial officer shall be set by 
        the Board.
  ``(c) Interim CEO.--
          ``(1) Hiring.--Not later than 60 days after the date of the 
        Secretary's appointment and selection of Directors under 
        section 90306(c)(1)(B), the Board shall hire an Interim Chief 
        Executive Officer who meets the qualifications specified in 
        subsection (a)(1)(B).
          ``(2) Authority and term.--
                  ``(A) Authority.--The Interim CEO shall--
                          ``(i) exercise the same authority as the CEO, 
                        including serving on the Board;
                          ``(ii) carry out the same duties as the CEO; 
                        and
                          ``(iii) be subject to the same prohibitions 
                        and limitations as the CEO.
                  ``(B) Term.--The Interim CEO shall serve until the 
                Board hires a CEO.
          ``(3) Statutory construction.--Nothing in this subsection may 
        be construed to restrict the ability of the Board to hire the 
        individual serving as the Interim CEO to be the CEO.

``Sec. 90312. Authority of Corporation

  ``(a) General Authority.--Except as otherwise provided in this 
subtitle, the Corporation--
          ``(1) shall have perpetual succession in its corporate name 
        unless dissolved by law;
          ``(2) may adopt and use a corporate seal;
          ``(3) may own, lease, use, improve, and dispose of such 
        property as the Corporation considers necessary to carry out 
        the purposes of the Corporation;
          ``(4) may contract with other parties;
          ``(5) may sue or be sued;
          ``(6) may be held liable under civil and criminal law;
          ``(7) may indemnify the Directors, including the Interim CEO 
        or CEO, and other officers, agents, and employees of the 
        Corporation; and
          ``(8) shall have such other corporate powers as are necessary 
        or appropriate to carry out the purposes of this subtitle and 
        of the Corporation.
  ``(b) Limitations.--
          ``(1) Business activities.--The Corporation may only engage 
        in business activities that are--
                  ``(A) related to carrying out air traffic services; 
                or
                  ``(B) ancillary or incidental to carrying out such 
                services.
          ``(2) Equity shares.--The Corporation may not issue or sell 
        equity shares in the Corporation.

``Sec. 90313. Charges and fees for air traffic services

  ``(a) Assessment and Collection of Charges and Fees.--Beginning on 
the date of transfer, and subject to this section and section 90502, 
the Corporation may assess and collect charges and fees from air 
traffic services users for air traffic services provided by the 
Corporation in United States airspace or international airspace 
delegated to the United States.
  ``(b) Board Approval of Charges and Fees.--The Board shall--
          ``(1) approve a proposal for--
                  ``(A) an initial schedule of charges and fees 
                pursuant to subsection (g); and
                  ``(B) any change in the charges or fees;
          ``(2) provide air traffic services users and other interested 
        persons notice of a proposal approved under paragraph (1) in a 
        manner and form prescribed by the Secretary; and
          ``(3) submit a proposal approved under paragraph (1) (other 
        than a proposal to decrease a charge or fee) to the Secretary 
        90 days prior to the effective date of the proposal in a manner 
        and form prescribed by the Secretary.
  ``(c) Secretarial Review.--
          ``(1) Public comment.--Upon receiving a proposal from the 
        Corporation under subsection (b)(3), the Secretary shall 
        solicit public comments on the proposal for a 30-day period.
          ``(2) Secretarial approval.--
                  ``(A) In general.--Not later than 15 days after the 
                last day of the 30-day public comment period, the 
                Secretary shall--
                          ``(i) approve the proposal upon determining 
                        that the proposal complies with the standards 
                        in subsection (d); or
                          ``(ii) disapprove the proposal upon 
                        determining that the proposal does not comply 
                        with the standards in subsection (d).
                  ``(B) Effectiveness of proposal.--If the Secretary 
                does not issue a timely decision pursuant to 
                subparagraph (A), the proposal shall be deemed 
                approved.
  ``(d) Standards.--The Secretary shall apply the following standards 
in reviewing a proposal from the Corporation under subsection (c):
          ``(1) The amount or type of charges and fees paid by an air 
        traffic services user may not--
                  ``(A) be determinant of the air traffic services 
                provided to the user; or
                  ``(B) adversely impact the ability of the user to use 
                or access any part of the national airspace system.
          ``(2) Charges and fees shall be consistent with the document 
        titled `ICAO's Policies on Charges for Airports and Air 
        Navigation Services', Ninth Edition, 2012.
          ``(3) Charges and fees may not be discriminatory.
          ``(4) Charges and fees shall be consistent with United States 
        international obligations.
          ``(5) Certain categories of air traffic services users may be 
        charged on a flat fee basis so long as the charge or fee is 
        otherwise consistent with this subsection.
          ``(6) Charges and fees may not be imposed for air traffic 
        services provided with respect to operations of aircraft that 
        qualify as public aircraft under sections 40102(a) and 40125.
          ``(7) Charges and fees may not be imposed for air traffic 
        services provided with respect to aircraft operations conducted 
        pursuant to part 91, 133, 135, 136, or 137 of title 14, Code of 
        Federal Regulations.
          ``(8) Charges and fees may not be structured such that air 
        traffic services users have incentives to operate in ways that 
        diminish safety to avoid the charges and fees.
          ``(9) Charges and fees, based on reasonable and financially 
        sound projections, may not generate revenues exceeding the 
        Corporation's current and anticipated financial requirements in 
        relation to the provision of air traffic services.
  ``(e) Corporation's Financial Requirements.--In determining whether a 
proposal received from the Corporation under subsection (b) would 
generate revenues in compliance with subsection (d)(9), the Secretary 
shall consider costs and other liabilities of the Corporation, 
including--
          ``(1) costs incurred before the date of transfer;
          ``(2) operations and maintenance costs;
          ``(3) management and administrative costs;
          ``(4) depreciation costs;
          ``(5) interest costs and other expenses related to debt 
        servicing;
          ``(6) cash reserves or other requirements needed to maintain 
        credit ratings or comply with debt covenants; and
          ``(7) any tax liability.
  ``(f) Payment of Charges and Fees.--
          ``(1) In general.--An air traffic services user shall pay a 
        charge or fee assessed by the Corporation under subsection (a) 
        for services rendered and any interest and penalties assessed 
        under paragraph (2).
          ``(2) Late payment or nonpayment.--The Corporation may assess 
        and collect interest and penalties for late payment or 
        nonpayment of a charge or fee assessed by the Corporation under 
        subsection (a).
          ``(3) Private right of action.--The Corporation may file suit 
        in any district court of the United States having jurisdiction 
        over the parties, without respect to the amount in controversy 
        and without regard to the citizenship of the parties, to 
        enforce this subsection not later than 2 years after the date 
        on which a claim accrues. A claim accrues, under this 
        paragraph, upon the rendering of the relevant air traffic 
        services by the Corporation.
  ``(g) Initial Schedule.--Notwithstanding subsection (b)(3), the 
Corporation shall propose an initial schedule of charges and fees at 
least 180 days before the date of transfer.
  ``(h) Aircraft Operation Defined.--In this section, the term 
`aircraft operation' means the movement of an aircraft beginning with 
the take-off of the aircraft and ending with the landing of the 
aircraft.

``Sec. 90314. Preemption of authority over air traffic services

  ``(a) State Defined.--In this section, the term `State' means a 
State, the District of Columbia, and a territory or possession of the 
United States.
  ``(b) Preemption.--A State, political subdivision of a State, or 
political authority of at least 2 States may not enact or enforce a 
law, regulation, or other provision having the force and effect of law 
related to air traffic services.
  ``(c) Airport Owner or Operator.--Subsection (b) may not be construed 
to limit a State, political subdivision of a State, or political 
authority of at least 2 States that owns or operates a landing area 
from carrying out its proprietary powers and rights over the landing 
area.

``Sec. 90315. Actions by and against Corporation

  ``(a) Jurisdiction for Legal Actions Generally.--
          ``(1) Jurisdiction of united states district courts.--The 
        United States district courts shall have original jurisdiction 
        over all actions brought by or against the Corporation, except 
        as otherwise provided in this subtitle.
          ``(2) Removal of actions in state courts.--Any action brought 
        in a State court to which the Corporation is a party shall be 
        removed to the appropriate United States district court under 
        the provisions of chapter 89 of title 28.
  ``(b) Testimony of Corporation Employees.--
          ``(1) In general.--Except with the consent of the chief legal 
        officer of the Corporation, employees of the Corporation may 
        not provide expert opinion or expert testimony in civil 
        litigation related to the Corporation.
          ``(2) Exceptions.--The Corporation may prescribe the 
        circumstances, if any, under which employees of the Corporation 
        may provide expert opinion or expert testimony in civil 
        litigation related to the Corporation.

``Sec. 90316. Transfer of Federal personnel to Corporation

  ``(a) Transfer of FAA Employees to Corporation.--
          ``(1) Process.--Not later than 180 days after the date of 
        enactment of this subtitle, the Secretary, after meeting and 
        conferring with the CEO and representatives of the labor 
        organizations recognized under section 7111 of title 5 as 
        exclusive representatives of FAA employees, shall commence a 
        process to determine, consistent with the purposes of this 
        subtitle, which activities and employees, or categories of 
        employees, of the FAA shall be transferred to the Corporation 
        on or before the date of transfer.
          ``(2) Determination; transfer.--The Secretary shall--
                  ``(A) not later than 180 days prior to the date of 
                transfer, complete the determination of which 
                activities, employees, or categories of employees shall 
                be transferred to the Corporation under paragraph (1);
                  ``(B) upon completing the determination, notify the 
                CEO, the labor organizations recognized under section 
                7111 of title 5 as exclusive representatives of FAA 
                employees, and all affected employees of such 
                determination; and
                  ``(C) on or before the date of transfer, transfer 
                such activities, employees, or categories of employees.
  ``(b) Subsequent Transfer of Employees.--
          ``(1) In general.--
                  ``(A) Transfers from faa to corporation.--During the 
                180-day period beginning on the date of transfer, the 
                Secretary, after meeting and conferring with the CEO 
                and representatives of the certified labor 
                organizations recognized under section 91105 and labor 
                organizations recognized under section 7111 of title 5 
                as exclusive representatives of FAA employees, may 
                transfer an employee from the FAA to the Corporation if 
                the Secretary, after meeting and conferring with the 
                CEO and the representatives, finds that the 
                determination with respect to the employee under 
                subsection (a) was inconsistent with the purposes of 
                this subtitle.
                  ``(B) Transfers from corporation to faa.--During the 
                180-day period beginning on the date of transfer, the 
                Secretary, after meeting and conferring with the CEO 
                and representatives of the certified labor 
                organizations recognized under section 91105 and labor 
                organizations recognized under section 7111 of title 5 
                as exclusive representatives of FAA employees, may 
                transfer an employee from the Corporation to the FAA if 
                the Secretary, after the consultation with the CEO and 
                the representatives, finds that the determination with 
                respect to the employee under subsection (a) was 
                inconsistent with the purposes of this subtitle.
          ``(2) Reemployment of federal employees.--An employee 
        transferred from the Corporation to the FAA under this 
        subsection shall be entitled to the same rights and benefits, 
        and reemployment, in the same manner as if covered by section 
        3582 of title 5 notwithstanding section 8347(o), 8713, or 8914 
        of such title.
          ``(3) Election of benefits for employees subject to delayed 
        transfer to corporation.--In the case of an employee of the FAA 
        transferred to the Corporation under this subsection, such 
        employee shall be afforded the opportunity to make the election 
        provided under section 91102(b) with respect to benefits.
  ``(c) Corporation Employee Benefits.--At least 180 days before the 
date of transfer, the Corporation shall establish a compensation and 
benefits program for--
          ``(1) employees hired by the Corporation after the date of 
        transfer; and
          ``(2) employees that make the election under section 
        91102(b)(1)(A)(ii).
  ``(d) Protections for Employees Not Transferred to Corporation.--For 
those employees of the FAA directly involved in the operation of air 
traffic services who are not transferred to the Corporation pursuant to 
subsection (a) or who transferred back to the FAA pursuant to 
subsection (b), the Secretary shall provide to such employees 
compensation and benefits consistent with the applicable collective-
bargaining agreement that are not less than the level of compensation 
and benefits provided to such FAA employees prior to the date of 
transfer unless mutually agreed to by the FAA and representatives of 
the certified labor organization.
  ``(e) Suitability, Clearances, and Medical Qualifications.--All 
federally issued or federally required credentials, certificates, 
clearances, medical qualifications, access rights, substance testing 
results, and any other Federal permissions or approvals held by any 
employee of the FAA in the operation of air traffic services that are 
valid and effective on the day prior to the date of transfer shall 
remain valid and effective after the date of transfer--
          ``(1) unless revoked for cause; or
          ``(2) until equivalent or substantially equivalent 
        credentials, certificates, clearances, medical qualifications, 
        access rights, substance testing results, and any other Federal 
        permissions or approvals have been issued to the employee on or 
        after the date of transfer.
  ``(f) Transition Agreements.--
          ``(1) Bipartite agreement.--
                  ``(A) Meetings.--At least 180 days before the date of 
                transfer, the Corporation shall meet with the labor 
                organizations recognized under section 7111 of title 5 
                as exclusive representatives of FAA employees to 
                resolve employment-related transition matters that 
                affect employees represented by those labor 
                organizations and that are not otherwise covered under 
                this section.
                  ``(B) Duty to bargain in good faith.--The Corporation 
                and the labor organizations described in subparagraph 
                (A) (in this subsection referred to as the `parties') 
                shall be subject to the duty to bargain in good faith 
                under chapter 911 in any meetings pursuant to this 
                paragraph.
                  ``(C) Dispute resolution procedures.--If the parties 
                fail to reach an agreement over the initial or 
                subsequent employment-related transition issues not 
                otherwise covered under this section, the matters shall 
                be subject to the dispute resolution procedures 
                established under subsections (a), (b), and (e) of 
                section 91107.
          ``(2) Tripartite agreement.--
                  ``(A) Meetings.--At least 1 year before the date of 
                transfer, the Corporation and the FAA shall meet with 
                the labor organizations recognized under section 7111 
                of title 5 as exclusive representatives of FAA 
                employees to resolve transition matters related to the 
                separation of air traffic services from the FAA 
                pursuant to this subtitle that affect employees 
                represented by those labor organizations and that are 
                not otherwise covered under this section.
                  ``(B) Duty to bargain in good faith.--To the extent 
                applicable, the Corporation and the labor organizations 
                described in subparagraph (A) shall be subject to the 
                duty to bargain in good faith under chapter 911 in any 
                meetings pursuant to this paragraph.
                  ``(C) Dispute resolution procedures.--If the 
                Corporation and the certified labor organizations 
                described in subparagraph (A) fail to reach an 
                agreement over the initial or subsequent transition 
                issues related to the separation of air traffic 
                services from the FAA, not otherwise covered under this 
                section, the matters shall be subject to the dispute 
                resolution procedures established under subsections 
                (a), (b), and (e) of section 91107.

``Sec. 90317. Transfer of facilities to Corporation

  ``(a) Inventory of FAA Property and Facilities.--At least 1 year 
before the date of transfer, the Secretary, in consultation with the 
CEO, shall identify the licenses, patents, software rights, and real 
and personal property, including air navigation facilities (as defined 
in section 40102(a)) of the United States under FAA jurisdiction, that 
are necessary and appropriate for the Corporation to carry out the air 
traffic services transferred to the Corporation under this subtitle.
  ``(b) Transfer of Federal Property.--
          ``(1) Conveyance of property to corporation.--On the date of 
        transfer, the Secretary shall convey, without charge, all 
        right, title, and interest of the United States in, and the 
        use, possession, and control of, properties identified under 
        subsection (a).
          ``(2) Sale of property by corporation after date of 
        transfer.--If the Corporation sells any of the property 
        conveyed to the Corporation under paragraph (1), the 
        Corporation shall use the proceeds received from the sale of 
        such property for the acquisition or improvement of air 
        navigation facilities or other capital assets.
          ``(3) Reversionary interest.--Any conveyance of real property 
        under this section located at an FAA technical facility shall 
        be subject to the condition that all right, title, and interest 
        in the real property shall revert to the United States and be 
        placed under the administrative control of the Secretary if--
                  ``(A) the Corporation determines the real property is 
                no longer necessary to carry out the air traffic 
                services transferred to the Corporation under this 
                subtitle; and
                  ``(B) the Secretary determines the reversion is 
                necessary to protect the interests of the United 
                States.
          ``(4) Safety air traffic services equipment in remote 
        locations.--
                  ``(A) Maintenance by corporation.--Any equipment 
                identified pursuant to subsection (a) and conveyed to 
                the Corporation pursuant to paragraph (1) that is 
                located in a noncontiguous State of the United States 
                and is critical to the safe provision of air traffic 
                services in that State may not be sold and shall be 
                maintained and, as determined necessary by the 
                Corporation, upgraded by the Corporation.
                  ``(B) Equipment critical to safe provision of air 
                traffic services.--For purposes of this paragraph, 
                equipment critical to the safe provision of air traffic 
                services includes GPS receivers, data link 
                transceivers, ADS-B, multi-function displays, flight 
                information services, moving map displays, terrain 
                databases, airport lighting, and mountain pass cameras.
  ``(c) Consolidation and Realignment of Transferred Services and 
Facilities.--
          ``(1) In general.--At least 180 days before the date of 
        transfer, and subject to section 91107, the Corporation, in 
        consultation with representatives of labor organizations 
        representing operations and maintenance employees of the air 
        traffic control system, shall establish a process for the 
        realignment and consolidation of services and facilities to be 
        transferred to the Corporation from the FAA.
          ``(2) Moratorium.--Except as otherwise provided, there shall 
        be a moratorium on any effort by the Administrator or the 
        Corporation to consolidate or realign air traffic services or 
        facilities until the process required by paragraph (1) is 
        established.

``Sec. 90318. Approval of transferred air navigation facilities and 
                    other equipment

  ``On the date of transfer, the Corporation is authorized to operate 
all air navigation facilities and other equipment conveyed pursuant to 
section 90317 without additional approval or certification by the 
Secretary.

``Sec. 90319. Use of spectrum systems and data

  ``Beginning on the date of transfer, the Secretary shall provide the 
Corporation with such access to the spectrum systems used by the FAA 
before the date of transfer to provide air traffic services, and any 
successor spectrum systems, and to the data from such systems, as is 
necessary to enable the Corporation to provide air traffic services 
under this subtitle.

``Sec. 90320. Transition plan

  ``(a) Transition Team.--Not later than 120 days after the date of 
enactment of this subtitle, the Secretary, after meeting and conferring 
with the CEO or Interim CEO, shall establish a transition team to 
develop, consistent with this subtitle, a transition plan to be 
reviewed by the Secretary and, if approved, utilized by the Department 
of Transportation during the period in which air traffic services are 
transferred from the FAA to the Corporation.
  ``(b) Membership.--The transition team shall consist of 12 
individuals, who are citizens of the United States, as follows:
          ``(1) 5 representatives appointed by the Secretary, 
        including--
                  ``(A) the Deputy Administrator of the FAA;
                  ``(B) the Director of the FAA Mike Monroney 
                Aeronautical Center;
                  ``(C) the Director of the FAA William J. Hughes 
                Technical Center; and
                  ``(D) 2 representatives from the Office of Management 
                and Budget, appointed with the concurrence of the 
                Director of the Office of Management and Budget.
          ``(2) 1 representative appointed by the exclusive bargaining 
        representative of air traffic controllers certified under 
        section 7111 of title 5.
          ``(3) 1 representative appointed by the exclusive bargaining 
        representative for airway transportation systems specialists in 
        the Air Traffic Organization technical operations services 
        certified under section 7111 of title 5.
          ``(4) 5 representatives appointed by the CEO.
  ``(c) Transition Plan.--
          ``(1) In general.--Not later than 45 days after the 
        establishment of the transition team, the transition team shall 
        develop and submit to the Secretary an executable transition 
        plan.
          ``(2) Contents.--The transition plan shall set forth a plan 
        for the Secretary, in consultation with the CEO or Interim CEO, 
        to--
                  ``(A) identify property, facilities, equipment, and 
                obligations, contractual or otherwise, related to the 
                provision of air traffic services; and
                  ``(B) safely and efficiently transfer Federal 
                personnel, property, facilities, equipment, and 
                obligations, contractual and otherwise, related to the 
                provision of air traffic services to the Corporation on 
                or before the date of transfer.
  ``(d) Secretarial Review.--
          ``(1) In general.--Not later than 30 days after receipt of 
        the transition plan, the Secretary shall review and, if 
        appropriate, approve the plan.
          ``(2) Disapproval.--If the Secretary does not approve a 
        submitted transition plan, the transition team shall revise the 
        plan and resubmit it to the Secretary not later than 30 days 
        after receiving notice of the disapproval by the Secretary.
  ``(e) Termination.--The transition team shall terminate upon approval 
of a transition plan by the Secretary.

       ``CHAPTER 905--REGULATION OF AIR TRAFFIC SERVICES PROVIDER

``Sec.
``90501. Safety oversight and regulation of Corporation.
``90502. Resolution of disputes concerning air traffic services charges 
and fees.
``90503. International agreements and activities.
``90504. Availability of safety information.
``90505. Reporting of safety violations to FAA.
``90506. Insurance requirements.

``Sec. 90501. Safety oversight and regulation of Corporation

  ``(a) Performance-Based Regulations and Minimum Safety Standards.--
After consultation with the Corporation and the FAA's certified 
bargaining representatives and before the date of transfer, the 
Secretary shall--
          ``(1) prescribe performance-based regulations and minimum 
        safety standards for the operation of air traffic services by 
        the Corporation;
          ``(2) prescribe performance-based regulations and minimum 
        safety standards for the certification and operation of air 
        navigation facilities (other than facilities that may be 
        operated without additional approval or certification pursuant 
        to section 90318); and
          ``(3) identify policies and other administrative materials of 
        the FAA in effect before the date of transfer for providing air 
        traffic services that will apply to the Corporation.
  ``(b) Safety Management System.--
          ``(1) In general.--The regulations and standards prescribed 
        pursuant to subsection (a) shall include a safety management 
        system for air traffic services provided by the Corporation.
          ``(2) Foundation.--The safety management system shall be 
        based on the safety management system used by the Air Traffic 
        Organization of the FAA before the date of transfer.
          ``(3) Use by corporation.--Beginning on the date of transfer, 
        the Corporation shall use the safety management system, 
        including any changes thereto, when assessing and managing 
        risks in all procedures, processes, and practices necessary to 
        provide air traffic services.
          ``(4) FAA oversight.--To the maximum extent practicable, for 
        at least 2 years after the date of transfer, the Air Traffic 
        Safety Oversight Service of the FAA shall employ the same 
        oversight processes and procedures in use before the date of 
        transfer.
  ``(c) Proposals To Modify Air Traffic Management Procedures, 
Assignments, and Classifications of Airspace.--
          ``(1) Submission of proposals to secretary.--The Corporation 
        or another interested party may submit to the Secretary a 
        proposal to modify--
                  ``(A) air traffic management procedures, assignments, 
                classifications of airspace, or other actions affecting 
                airspace access that are developed pursuant to the 
                safety management system; and
                  ``(B) FAA policies and other administrative materials 
                identified under subsection (a)(2).
          ``(2) Review and approval of proposals.--The regulations and 
        standards prescribed under subsection (a)(1) shall include a 
        process for expedited review and approval of a proposal 
        received under paragraph (1).
          ``(3) Standard for approval.--The Secretary shall approve a 
        proposal received under paragraph (1) if the Secretary 
        determines that the proposal complies with the regulations and 
        standards prescribed under subsection (a)(1) and is otherwise 
        consistent with the public interest, including that the 
        proposal would not materially reduce access to a public-use 
        airport.
          ``(4) Approvals and disapprovals.--
                  ``(A) In general.--During the 45-day period beginning 
                on the date of receipt of a proposal under paragraph 
                (1), the Secretary shall approve or disapprove the 
                proposal.
                  ``(B) Written explanation.--If the Secretary 
                disapproves the proposal, the Secretary shall provide--
                          ``(i) a written explanation of the 
                        Secretary's decision, including--
                                  ``(I) any instances of inconsistency 
                                with the regulations and standards 
                                prescribed under subsection (a)(1); and
                                  ``(II) any other information that 
                                formed the basis for the Secretary's 
                                decision; and
                          ``(ii) a description of any modifications to 
                        the proposal that are necessary to obtain 
                        approval.
          ``(5) Failure to act.--If the Secretary fails to act on a 
        proposal received under paragraph (1) during the 45-day period 
        described in paragraph (4)(A), the Corporation or other party 
        making the proposal shall be entitled to a writ of mandamus in 
        a Federal district court with venue.
  ``(d) Judicial Review.--
          ``(1) In general.--Any decision made by the Secretary to 
        approve or disapprove a proposal received under subsection 
        (c)(1) shall be subject to judicial review pursuant to 
        subsections (a), (b), (d), and (e) of section 46110.
          ``(2) Standard of review.--
                  ``(A) Disapprovals.--In the case of a petition filed 
                under section 46110(a) to review a decision of the 
                Secretary that disapproves a proposal received from the 
                Corporation under subsection (c)(1), the court shall, 
                without deference to the Secretary's determination, 
                review de novo the record to determine if the 
                Secretary's determination is consistent with the 
                regulations and standards prescribed under subsection 
                (a)(1).
                  ``(B) Approvals.--In the case of a petition filed 
                under section 46110(a) to review a decision of the 
                Secretary that approves a proposal received from the 
                Corporation under subsection (c)(1), the court may 
                overturn the approval only upon a finding of clear 
                error or an abuse of discretion.
  ``(e) Compilation.--
          ``(1) Establishment.--The Corporation shall establish and 
        maintain a compilation of the policies and other materials 
        identified under subsection (a)(2).
          ``(2) Updates.--The Corporation shall update the compilation 
        each time a proposal described in subsection (c)(1)(B) is 
        approved.
          ``(3) Publication.--The Corporation shall make the 
        compilation available to the public.
  ``(f) Special Rules for Proposals Affecting Certain Airspace.--The 
regulations and standards prescribed under subsection (a)(1) shall 
include procedures (including advance submission of necessary 
supporting data, analysis, and documentation) for the Secretary to 
evaluate, at least 180 days before its submission under subsection 
(c)(1), a proposal for an airspace change that would affect airspace 
that is--
          ``(1) within an area designated as a `Metroplex' by the FAA 
        as of March 30, 2017;
          ``(2) within an area subject to a major, large-scale airspace 
        redesign project; or
          ``(3) adjacent to or containing special use airspace.
  ``(g) Exempted Airspace Actions.--The requirements of this section 
shall not apply to--
          ``(1) temporary airspace actions directed by the 
        Administrator or Secretary;
          ``(2) airspace actions as described in section 90904; or
          ``(3) certain emergency circumstances, as defined by the 
        Secretary by regulation.
  ``(h) Delegation.--Notwithstanding section 90303(b), and except for 
the process and procedures required by section 90703(b), the Secretary 
may delegate safety oversight functions to the Administrator.

``Sec. 90502. Resolution of disputes concerning air traffic services 
                    charges and fees

  ``(a) Authority To Request Secretary's Determination.--
          ``(1) In general.--The Secretary shall issue a determination 
        as to whether a charge or fee assessed by the Corporation for 
        the use of air traffic services in United States airspace or 
        international airspace delegated to the United States is 
        correct if a written complaint for such determination is filed 
        with the Secretary by an air traffic services user not later 
        than 60 days after the air traffic services user receives an 
        assessment or invoice from the Corporation.
          ``(2) Treatment of interest and penalties.--In this section, 
        the terms `charge' and `fee' include any interest and penalty 
        relating thereto.
  ``(b) Procedural Regulations.--At least 270 days before the date of 
transfer, the Secretary shall publish in the Federal Register final 
regulations, policy statements, or guidelines establishing the 
procedures for acting upon written complaints filed under subsection 
(a)(1) and requests of the Corporation pursuant to subsection (e)(3).
  ``(c) Determination of Correctness.--In determining under subsection 
(a)(1) whether a charge or fee is correct, the Secretary shall 
determine only if the charge or fee is consistent with approved charges 
or fees pursuant to section 90313.
  ``(d) Decisions by Secretary.--The final regulations, policy 
statements, or guidelines required in subsection (b) shall provide for 
the following:
          ``(1) Not later than 90 days after an air traffic services 
        user files with the Secretary a written complaint relating to 
        an assessed or invoiced air traffic services charge or fee, the 
        Secretary shall issue a final order determining whether the 
        charge or fee is correct.
          ``(2) Not later than 30 days after such complaint is filed 
        with the Secretary, the Secretary shall dismiss the complaint 
        if no significant dispute exists or shall assign the matter to 
        an administrative law judge. Thereafter, the matter shall be 
        handled in accordance with part 302 of title 14, Code of 
        Federal Regulations, or as modified by the Secretary, to ensure 
        an orderly disposition of the matter within the 90-day period 
        referred to in paragraph (1) and any specifically applicable 
        provisions of this section.
          ``(3) The administrative law judge shall issue a recommended 
        decision not later than 45 days after the complaint is assigned 
        or within such shorter period as the Secretary may specify.
          ``(4) If the Secretary, upon the expiration of 90 days after 
        the filing of the complaint, has not issued a final order, the 
        decision of the administrative law judge shall be deemed to be 
        the final order of the Secretary.
          ``(5) Any party to the dispute may seek review of a final 
        order of the Secretary under this subsection in the Circuit 
        Court of Appeals for the District of Columbia Circuit or the 
        court of appeals in the circuit with venue.
          ``(6) Any findings of fact in a final order of the Secretary 
        under this subsection, if supported by substantial evidence, 
        shall be conclusive if challenged in a court pursuant to this 
        subsection. No objection to such a final order may be 
        considered by the court unless objection was urged before an 
        administrative law judge or the Secretary at a proceeding under 
        this subsection or, if not so urged, unless there were 
        reasonable grounds for failure to do so.
  ``(e) Payment Under Protest; Guarantee of Air Traffic Services User 
Access.--
          ``(1) Payment under protest.--
                  ``(A) In general.--Any charge or fee that is the 
                subject of a complaint that is not dismissed by the 
                Secretary shall be paid by the complainant air traffic 
                services user to the Corporation under protest.
                  ``(B) Referral or credit.--Any amounts paid under 
                this subsection by a complainant air traffic services 
                user to the Corporation under protest shall be subject 
                to refund or credit to the air traffic services user in 
                accordance with directions in the final order of the 
                Secretary within 30 days of such order.
                  ``(C) Timely repayment.--In order to ensure the 
                timely repayment, with interest, of amounts in dispute 
                determined not to be correct by the Secretary, the 
                Corporation shall obtain a letter of credit, or surety 
                bond, or other suitable credit facility, equal to the 
                amount in dispute that is due during the 90-day period 
                referred to in subsection (d)(1), plus interest, unless 
                the Corporation and the air traffic services user agree 
                otherwise.
                  ``(D) Deadline.--The letter of credit, or surety 
                bond, or other suitable credit facility shall be 
                provided to the Secretary not later than 20 days after 
                the filing of the complaint and shall remain in effect 
                for 30 days after the issuance of a timely final order 
                by the Secretary determining whether such charge or fee 
                is correct.
          ``(2) Guarantee of air traffic services user access.--
        Contingent upon an air traffic services user's compliance with 
        the requirements of paragraph (1) and pending the issuance of a 
        final order by the Secretary determining the correctness of a 
        charge or fee that is the subject of a complaint filed under 
        subsection (a)(1), the Corporation may not withhold air traffic 
        services as a means of enforcing the charge or fee.
          ``(3) Noncompliance.--Prior to the issuance of a final order 
        by the Secretary determining the correctness of a charge or fee 
        that is the subject of a complaint filed under subsection 
        (a)(1), if an air traffic services user does not comply with 
        the requirements of paragraph (1), the Corporation shall 
        withhold air traffic services from the user if the Corporation 
        requests and receives approval from the Secretary to withhold 
        air traffic services.

``Sec. 90503. International agreements and activities

  ``(a) Consistency With International Obligations and Laws of Other 
Countries.--The Corporation shall provide air traffic services under 
this subtitle in a manner that is consistent with any obligation 
assumed by the United States in a treaty, convention, or agreement that 
may be in force between the United States and a foreign country or 
foreign countries or between the United States and an international 
organization, and shall take into consideration any applicable laws and 
requirements of foreign countries.
  ``(b) Prohibition.--The Corporation may not negotiate on behalf of or 
otherwise represent the United States before any foreign government or 
international organization.

``Sec. 90504. Availability of safety information

  ``(a) Safety Information.--The Corporation shall make available to 
air traffic services users and the public--
          ``(1) the same type of safety information made available by 
        the FAA before the date of transfer;
          ``(2) any additional safety information needed by air traffic 
        services users to operate safely; and
          ``(3) any updates or revisions to the safety information 
        referred to in paragraphs (1) and (2).
  ``(b) Meteorological Services; Aeronautical Charts.--The Corporation 
may provide for the dissemination of available aviation-related 
meteorological information and aeronautical charts to air traffic 
services users.

``Sec. 90505. Reporting of safety violations to FAA

  ``(a) In General.--In a manner, form, and process prescribed by the 
Administrator, the Corporation shall report to the Administrator 
complaints or instances of--
          ``(1) noncompliance with or deviations from air traffic 
        control clearances or instructions;
          ``(2) noncompliant operations in controlled airspace or 
        special use airspace; and
          ``(3) any other observed activities endangering persons or 
        property in the air or on the ground.
  ``(b) Assistance in Enforcement Actions.--The Corporation shall 
provide necessary assistance in any enforcement action taken by the 
Administrator resulting from a report of the Corporation or another 
person or entity.
  ``(c) Statutory Construction.--This section may not be construed to 
limit the authority of the Administrator to undertake enforcement 
actions upon the Administrator's initiative.

``Sec. 90506. Insurance requirements

  ``The Corporation shall maintain adequate liability insurance 
policies and coverages, as determined by the Secretary, including 
complete indemnification of employees of the Corporation for acts 
within the scope of employment.

``CHAPTER 907--GENERAL RIGHTS OF ACCESS TO AIRSPACE, AIRPORTS, AND AIR 
   TRAFFIC SERVICES VITAL FOR ENSURING SAFE OPERATIONS FOR ALL USERS

``Sec.
``90701. Access to airspace.
``90702. Access to airports.
``90703. Contract tower service after date of transfer.
``90704. Availability of safety information to general aviation 
operators.
``90705. Special rules and appeals process for air traffic management 
procedures, assignments, and classifications of airspace.
``90706. Definitions.

``Sec. 90701. Access to airspace

  ``The Secretary shall take such actions as are necessary to ensure 
that an air traffic services user is not denied access to airspace or 
air traffic services on the basis that the user is exempt from charges 
and fees under section 90313.

``Sec. 90702. Access to airports

  ``In carrying out section 90501(c)(3), the Secretary shall determine 
whether a proposal would materially reduce access to a public-use 
airport, including a general aviation or rural airport.

``Sec. 90703. Contract tower service after date of transfer

  ``(a) Transfer of Contract Tower Agreements to Corporation.--In 
carrying out section 91302(e), the Secretary shall take such actions as 
are necessary to ensure that the Corporation assumes the contract and 
other obligations associated with the operation of an air traffic 
control tower that, prior to the date of transfer, was operated under a 
contract pursuant to section 47124.
  ``(b) Special Rules for Proposals Relating to Operation of Contract 
Towers.--
          ``(1) In general.--The regulations and standards prescribed 
        under section 90501(a)(1) shall include procedures for the 
        Secretary to evaluate, under section 90501(c), a proposal for 
        an airspace change, including an airspace reclassification, 
        that results from the proposed closure of a tower that is 
        operating under a contract with the Corporation and that, prior 
        to the date of transfer, was operated under a contract with the 
        Secretary pursuant to section 47124.
          ``(2) Procedures.--The procedures required pursuant to 
        paragraph (1) shall include--
                  ``(A) the advance submission by the Corporation of 
                necessary supporting data, analysis, and documentation 
                related to--
                          ``(i) the safety risk management assessment 
                        of the proposed contract tower closure;
                          ``(ii) an assessment of the impact of the 
                        proposed closure on the operation of the 
                        national airspace system;
                          ``(iii) an assessment of the impact of the 
                        proposed closure on local communities, 
                        including with respect to air service;
                          ``(iv) an assessment, in consultation with 
                        the Secretary of Defense and the Secretary of 
                        Homeland Security, as appropriate, of any 
                        impact of the proposed closure on military 
                        aviation readiness and training, homeland 
                        security aviation operations, emergency 
                        management and disaster aviation operations, 
                        and law enforcement aviation operations; and
                          ``(v) any other safety or operational 
                        information the Secretary determines to be 
                        necessary to understand the safety impact of 
                        the proposed closure; and
                  ``(B) a process to receive input from the public, 
                impacted air traffic services users, local communities, 
                and the airport operator of the airport where the 
                contract tower proposed to be closed is located.

``Sec. 90704. Availability of safety information to general aviation 
                    operators

  ``In carrying out section 90504, the Corporation shall ensure that 
the safety information referenced in that section is made available to 
general aviation operators.

``Sec. 90705. Special rules and appeals process for air traffic 
                    management procedures, assignments, and 
                    classifications of airspace

  ``(a) In General.--If the Corporation proposes to modify, reduce, 
decommission, or eliminate an air traffic service or air navigation 
facility that would result in the loss of or material reduction in 
access to a public-use airport or adjacent airspace for any class, 
category, or type of aircraft or aircraft operation, as determined by 
the Secretary, the Secretary shall designate an officer to issue a 
notice in the Federal Register and establish a docket that includes--
          ``(1) a copy of the Corporation's proposal;
          ``(2) available data on the usage of the affected air traffic 
        service or air navigation facility;
          ``(3) an assessment of the designated officer on the effects 
        of the proposal; and
          ``(4) an assessment of the designated officer on any proposed 
        action to mitigate the loss of or material reduction in access 
        to the public-use airport or adjacent airspace.
  ``(b) Proceeding.--The designated officer shall provide an 
opportunity for public comment on the proposal for a period of at least 
60 days.
  ``(c) Decision.--Not later than 30 days after the last day of the 
public comment period, the designated officer shall--
          ``(1) determine whether the proposal is in the public 
        interest, including whether any material reduction in access to 
        a public-use airport or adjacent airspace has been mitigated to 
        the maximum extent practicable; and
          ``(2) approve or disapprove the proposal on that basis.
  ``(d) Relationship to Other Requirements.--Notwithstanding section 
90501(c), a proposal described in subsection (a)--
          ``(1) shall be subject to the process established in this 
        section; and
          ``(2) may not be implemented unless approved under this 
        section.
  ``(e) Appeals and Secretarial Review.--
          ``(1) Written petition for review.--A petition for an appeal 
        of a decision of the designated officer under subsection (c) 
        shall be submitted in writing to the Secretary not later than 
        30 days after the date of the decision.
          ``(2) Secretarial review.--The Secretary shall review and 
        make a determination with respect to a timely filed petition 
        under paragraph (1) not later than 30 days after the date of 
        receipt of the petition.
  ``(f) Decisional Standards.--In making a determination under this 
section, neither the Secretary nor the designated officer may consider 
any factor not directly germane to--
          ``(1) the safe operation or navigation of an aircraft; or
          ``(2) the sufficiency of mitigation efforts related to a 
        material reduction in access to a public-use airport or 
        adjacent airspace.
  ``(g) Judicial Review.--
          ``(1) In general.--Any determination made by the Secretary 
        under subsection (e)(2) shall be subject to judicial review 
        pursuant to subsections (a), (b), (d), and (e) of section 
        46110.
          ``(2) Standard of review.--
                  ``(A) Disapprovals.--In the case of a petition filed 
                under section 46110(a) to review a determination of the 
                Secretary that disapproves a proposal, the court shall, 
                without deference to the Secretary's determination, 
                review de novo the record to determine if the 
                Secretary's determination is in the public interest.
                  ``(B) Approvals.--In the case of a petition filed 
                under section 46110(a) to review a determination of the 
                Secretary that approves a proposal, the court may 
                overturn the approval only upon a finding of clear 
                error or an abuse of discretion.

``Sec. 90706. Definitions

  ``In this chapter, the following definitions apply:
          ``(1) Material reduction.--The term `material reduction' 
        means, with respect to access to a public-use airport, 
        including a general aviation or rural airport, a materially 
        diminished ability to safely operate or navigate to or from the 
        airport or adjacent airspace during a time of day, weather 
        condition, or season of the year.
          ``(2) Rural airport.--The term `rural airport' means a 
        public-use airport located in a rural area (as that term is 
        defined in section 520 of the Housing Act of 1949 (42 U.S.C. 
        1490)).

  ``CHAPTER 909--CONTINUITY OF AIR TRAFFIC SERVICES TO DEPARTMENT OF 
                   DEFENSE AND OTHER PUBLIC AGENCIES

``Sec.
``90901. Continuity of air traffic services provided by Department of 
Defense.
``90902. Military and other public aircraft exempt from user fees.
``90903. Air traffic services for Federal agencies.
``90904. Emergency powers of Armed Forces.
``90905. Adherence to international agreements related to operations of 
Armed Forces.
``90906. Primacy of Armed Forces in times of war.
``90907. Cooperation with Department of Defense and other Federal 
agencies after date of transfer.

``Sec. 90901. Continuity of air traffic services provided by Department 
                    of Defense

  ``After the date of transfer, the Department of Defense, as directed 
by the President, is authorized and permitted to provide air traffic 
services within United States airspace and international airspace 
delegated to the United States.

``Sec. 90902. Military and other public aircraft exempt from user fees

  ``The Corporation may not impose charges or fees for operations of 
aircraft owned or operated by the Armed Forces or other aircraft that 
qualify as public aircraft under sections 40102(a) and 40125.

``Sec. 90903. Air traffic services for Federal agencies

  ``Before the date of transfer, the Secretary shall establish 
processes, requirements, procedures, and regulations and take any other 
measure necessary, consistent with the purposes of this subtitle, to 
ensure that all United States Government activities supported by the 
FAA's operation of air traffic services as of the date of transfer 
receive support from the Corporation after the date of transfer and on 
an ongoing basis.

``Sec. 90904. Emergency powers of Armed Forces

  ``The requirements of section 90501 shall not apply to airspace 
actions necessitated by an exercise of authority under section 40106.

``Sec. 90905. Adherence to international agreements related to 
                    operations of Armed Forces

  ``In carrying out section 90503, the Corporation shall ensure that 
the obligations described in that section include obligations related 
to operations of the Armed Forces.

``Sec. 90906. Primacy of Armed Forces in times of war

  ``The President may make temporary transfers to the Secretary of 
Defense pursuant to section 40107(b).

``Sec. 90907. Cooperation with Department of Defense and other Federal 
                    agencies after date of transfer

  ``At least 1 year prior to the date of transfer, the Corporation, the 
Department of Transportation, and each Federal department or agency 
supported by the FAA's operation of air traffic services, including the 
Armed Forces, shall enter into a tripartite agreement to--
          ``(1) ensure cooperation between the Corporation and the 
        department or agency on the delivery of air traffic services;
          ``(2) facilitate the safe provision of air traffic services 
        to the department or agency; and
          ``(3) address how the Corporation and the department or 
        agency will coordinate and communicate on the day-to-day 
        operations of the national airspace system.

                   ``CHAPTER 911--EMPLOYEE MANAGEMENT

``Sec.
``91101. Definitions.
``91102. Employee management and benefits election.
``91103. Labor and employment policy.
``91104. Bargaining units.
``91105. Recognition of labor organizations.
``91106. Collective-bargaining agreements.
``91107. Collective-bargaining dispute resolution.
``91108. Potential and pending grievances, arbitrations, and 
settlements.
``91109. Prohibition on striking and other activities.
``91110. Legal action.

``Sec. 91101. Definitions

  ``In this chapter, the following definitions apply:
          ``(1) Agency.--The term `Agency' means, as the context 
        requires, the Department of Transportation or the FAA.
          ``(2) Air traffic controller.--
                  ``(A) In general.--The term `air traffic controller' 
                means an employee of the Corporation who, in an air 
                traffic control facility or flight service station 
                facility--
                          ``(i) is actively engaged--
                                  ``(I) in the separation and control 
                                of air traffic; or
                                  ``(II) in providing preflight, 
                                inflight, or airport advisory service 
                                to aircraft operators; or
                          ``(ii) is the immediate supervisor of any 
                        employee described in clause (i).
                  ``(B) Limitation.--Notwithstanding subparagraph (A), 
                the definition of `air traffic controller' for purposes 
                of section 8336(e) of chapter 83 of title 5 and section 
                8412(e) of chapter 84 of such title shall mean only 
                employees actively engaged in the separation of air 
                traffic and the immediate supervisors of such 
                employees, as set forth in section 8331(30) of such 
                title, and section 8401(35) of such title.
          ``(3) Authority.--The term `Authority' means the Federal 
        Labor Relations Authority, as described in section 7104(a) of 
        title 5.
          ``(4) Service.--The term `Service' means the Federal 
        Mediation and Conciliation Service established by section 202 
        of the Labor Management Relations Act, 1947 (29 U.S.C. 172).

``Sec. 91102. Employee management and benefits election

  ``(a) Authority of CEO.--
          ``(1) In general.--Except as otherwise provided by law, the 
        CEO shall classify and fix the compensation and benefits of 
        employees in the Corporation.
          ``(2) Negotiations.--In developing, making changes to, and 
        implementing wages, hours, and other terms and conditions of 
        employment, including when establishing the compensation and 
        benefits program under section 90316(c), the Corporation shall 
        negotiate with exclusive representatives recognized under 
        section 91105.
          ``(3) Before date of transfer.--For purposes of paragraph 
        (2), before the date of transfer, the term `exclusive 
        representatives recognized under section 91105' shall refer to 
        labor organizations recognized under section 7111 of title 5 as 
        exclusive representatives of FAA employees.
  ``(b) Former Federal Employees.--
          ``(1) Federal retirement benefits.--
                  ``(A) Election of retirement benefits.--At least 90 
                days before the date of transfer, an employee 
                transferring to the Corporation who will be subject to 
                either the Civil Service Retirement System under 
                chapter 83 of title 5 (in this section referred to as 
                `CSRS') or the Federal Employees Retirement System 
                under chapter 84 of title 5 (in this section referred 
                to as `FERS') on the day immediately preceding the date 
                of transfer shall elect either to--
                          ``(i) retain the employee's coverage under 
                        either CSRS or FERS, as applicable, in lieu of 
                        coverage by the Corporation's employee benefits 
                        system established under section 90316(c); or
                          ``(ii) receive a deferred annuity, lump-sum 
                        benefit, or any other benefit available to the 
                        employee under CSRS or FERS, in the same manner 
                        that would have been available to the employee 
                        if the employee had voluntarily separated from 
                        Federal employment on the day before the date 
                        of transfer.
                  ``(B) Thrift savings plan accounts.--An employee who 
                makes the election under subparagraph (A)(ii) shall 
                have the option to transfer the balance in the 
                employee's Thrift Savings Plan account to the plan 
                under the Corporation's retirement system, consistent 
                with applicable law and the terms of the Corporation's 
                plan.
                  ``(C) Periodic election.--The Corporation shall 
                provide for periodic election seasons during which an 
                employee who transferred to the Corporation on the date 
                of transfer may become eligible for retirement benefits 
                under the Corporation's employee benefits system 
                established under section 90316(c) by making an 
                election under subparagraph (A)(ii).
                  ``(D) Continuity of annuitant benefits.--
                Notwithstanding any other provision of law, any 
                individual who is receiving an annuity under chapter 83 
                or chapter 84 of title 5 may continue to receive such 
                annuity while employed by the Corporation.
                  ``(E) High-3 determination.--With respect to any 
                employee who retains CSRS or FERS coverage pursuant to 
                subparagraph (A), such employee's basic pay while with 
                the Corporation shall be included in any determination 
                of such employee's average pay under section 8331(4) or 
                8401(3), as the case may be, of title 5 when 
                calculating the annuity (if any) of such employee. For 
                purposes of this section, an employee's basic pay shall 
                be defined as such employee's total annual salary or 
                wages from the Corporation, including any location-
                based adjustment.
          ``(2) Payments to civil service retirement and disability 
        fund.--For employees of the Corporation who elect to retain 
        their coverage under either CSRS or FERS pursuant to paragraph 
        (1), the Corporation shall only be required to pay to the Civil 
        Service Retirement and Disability Fund--
                  ``(A) such employee deductions and agency 
                contributions as are required by sections 8334, 8422, 
                and 8423 of title 5; and
                  ``(B) such additional amounts, not to exceed 2 
                percent of the amounts under subparagraph (A), as are 
                determined necessary by the Office of Personnel 
                Management to pay the cost of administering retirement 
                benefits for employees who retire from the Corporation 
                after the date of transfer under either CSRS or FERS, 
                for their survivors, and for survivors of employees of 
                the Corporation who die after the date of transfer 
                (which amounts shall be available to the Office of 
                Personnel Management as provided in section 
                8348(a)(1)(B) of title 5).
          ``(3) Thrift savings fund.--The Corporation shall pay to the 
        Thrift Savings Fund such employee and agency contributions as 
        are required by section 8432 of title 5 for employees who elect 
        to retain their coverage under FERS pursuant to paragraph (1).
          ``(4) Health benefits plan election.--Any employee of the 
        Corporation who was subject to the Federal Employees Health 
        Benefits Program under chapter 89 of title 5 (in this section 
        referred to as `FEHBP') on the day immediately preceding the 
        date of transfer shall have the option to receive health 
        benefits from a health benefit plan established by the 
        Corporation under section 90316(c) or to continue coverage 
        under FEHBP without interruption.
          ``(5) Payments to employees health benefits fund.--For 
        employees of the Corporation who elect to retain their coverage 
        under FEHBP pursuant to paragraph (4), the Corporation shall 
        pay to the Employees Health Benefits Fund--
                  ``(A) such employee deductions and agency 
                contributions as are required by subsections (a) 
                through (f) of section 8906 of title 5; and
                  ``(B) such amounts as are determined necessary by the 
                Office of Personnel Management under paragraph (6) to 
                reimburse the Office of Personnel Management for 
                contributions under section 8906(g)(1) of title 5.
          ``(6) Reimbursement amounts.--The amounts required to be paid 
        by the Corporation under paragraph (5)(B) shall be equal to the 
        amount of Government contributions for retired employees who 
        retire from the Corporation after the date of transfer under 
        either CSRS or FERS, for survivors of such retired employees, 
        and for survivors of employees of the Corporation who die after 
        the date of transfer, with said amounts prorated to reflect 
        only that portion of the total service of such employees and 
        retired persons that was performed for the Corporation after 
        the date of transfer.
          ``(7) Additional benefits.--Subject to the provisions of this 
        chapter, any employee of the Corporation who was subject to the 
        provisions of subchapter I of chapter 85 (concerning 
        unemployment compensation) and chapters 87 (concerning life 
        insurance), 89A (concerning enhanced dental benefits), and 89B 
        (concerning enhanced vision benefits) of title 5 shall have the 
        option to continue coverage under such provisions without 
        interruption in lieu of applicable coverage by the 
        Corporation's employee benefits system established under 
        section 90316(c). The Corporation shall withhold from pay, and 
        shall make contributions, under the provisions of title 5 
        referred to in this subsection at the same rates applicable to 
        agencies of the Federal Government for such employees.
          ``(8) Workers compensation.--Officers and employees of the 
        Corporation shall be covered by, and shall be considered 
        employees for purposes of, subchapter I of chapter 81 of title 
        5 (concerning compensation for work injuries). The Corporation 
        shall make contributions to the Employees' Compensation Fund 
        under the provisions of section 8147 of title 5 at the same 
        rates applicable to agencies of the Federal Government.
          ``(9) Non-foreign area.--To the extent consistent with law, 
        the Non-Foreign Area Retirement Equity Assurance Act of 2009 
        shall apply to officers and employees of the Corporation 
        transferred under section 90316.
          ``(10) Transfer of leave.--Sick and annual leave, credit 
        hours, and compensatory time of officers and employees of the 
        Corporation, whether accrued before or after the date of 
        transfer, shall be obligations of the Corporation under the 
        provisions of this chapter.
          ``(11) Whistleblower protection.--Neither the Corporation, 
        nor any officer or employee of the Corporation, may take any 
        action described in subsection (b)(8), (b)(9), or (b)(13), or 
        the final paragraph of subsection (b), of section 2302 of title 
        5 (relating to whistleblower protection).

``Sec. 91103. Labor and employment policy

  ``(a) Application of Chapter 71 of Title 5.--To the extent not 
inconsistent with this chapter, labor-management relations shall be 
subject to the provisions of chapter 71 of title 5, provided that the 
obligation of the Corporation and an exclusive bargaining 
representative recognized under section 91105 to bargain collectively 
in good faith over conditions of employment shall mean to bargain over 
the same wages, hours, and other terms and conditions of employment as 
are negotiable under section 8(d) of the Act of July 5, 1935, as 
amended (29 U.S.C. 158(d)), and without application of section 
7103(a)(14) of title 5 and section 7117 of title 5, which shall not 
apply.
  ``(b) Applicability.--To the limited extent necessary for the 
implementation of this chapter, the Corporation shall have the rights 
and obligations of an agency under chapter 71 of title 5.
  ``(c) Application of Fair Labor Standards Act.--The provisions of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) shall apply to 
the Corporation and to its officers and employees.
  ``(d) Reporting and Disclosure.--The provisions of the Labor-
Management Reporting and Disclosure Act of 1959 (29 U.S.C. 401 et seq.) 
shall be applicable to labor organizations that have or are seeking to 
attain recognition under section 91105, and to such organizations' 
officers, agents, shop stewards, other representatives, and members.
  ``(e) Right To Collectively Bargain.--Each employee of the 
Corporation shall have the right, freely and without fear of penalty or 
reprisal, to form, join, and assist a labor organization or to refrain 
from any such activity, and each employee shall be protected in the 
exercise of this right. Such right shall include the right to engage in 
collective bargaining with respect to the same wages, hours, and other 
terms and conditions of employment as are negotiable under section 8(d) 
of the Act of July 5, 1935, as amended (29 U.S.C. 158(d)).

``Sec. 91104. Bargaining units

  ``(a) In General.--Pursuant to section 7112 of title 5 and subject to 
the requirements of this chapter, the Authority shall decide in each 
case the unit appropriate for collective bargaining with the 
Corporation.
  ``(b) Previously Certified Units.--Notwithstanding subsection (a), 
the Authority may not adopt, certify, or decide upon bargaining units 
that include employees in bargaining units previously certified by the 
Authority that are smaller in geographic scope than such previously 
certified bargaining units, unless the Authority finds by compelling 
evidence that such previously certified units would not, absent 
modification, remain units appropriate for collective bargaining with 
the Corporation.
  ``(c) Other Units.--
          ``(1) Previous certifications.--Notwithstanding subsection 
        (a) or (b), the Authority shall not recognize or certify any 
        bargaining unit different than the bargaining units previously 
        certified by the Authority prior to the date described in 
        section 91105(g).
          ``(2) Supervisors and management officials.--Notwithstanding 
        section 7135(a)(2) of title 5, a bargaining unit may not 
        include, or be modified to include, any supervisor or 
        management official, as those terms are defined in section 
        7103(a) of title 5.

``Sec. 91105. Recognition of labor organizations

  ``(a) Application of Chapter 71 of Title 5.--To the extent not 
inconsistent with this chapter, section 7111 of title 5 shall apply to 
the recognition and certification of labor organizations for the 
employees of the Corporation and the Corporation shall accord exclusive 
recognition to and bargain collectively with a labor organization when 
the organization has been selected by a majority of the employees in an 
appropriate unit as their representative.
  ``(b) Recognition of Exclusive Representative.--Notwithstanding 
subsection (a), each labor organization that, immediately before the 
date of transfer, was recognized as the exclusive representative for a 
bargaining unit of employees of the Agency shall be deemed to be 
recognized on the date of transfer or thereafter as the exclusive 
representative for those employees of the Corporation in the same or 
similar bargaining unit unless another representative for a bargaining 
unit of employees is certified pursuant to section 7111 of title 5 and 
this section.
  ``(c) Expiration of Term.--Every collective-bargaining agreement or 
arbitration award that applies to an employee of the Agency and that is 
in force immediately before the date of transfer continues in force 
until its term expires. To the extent that the Corporation assumes the 
functions and responsibilities that, prior to the date of transfer, 
were conducted by the Agency, agreements and supplements (including any 
arbitration award, as applicable) covering employees of the Agency that 
are in effect on the date of transfer shall continue to be recognized 
by and binding on the Corporation, the bargaining representative, and 
all covered employees until altered or amended pursuant to law. Any 
agreement, supplement, or arbitration award continued by this section 
is deemed to be an agreement, supplement, or arbitration award binding 
on the Corporation, the bargaining representative, and all covered 
employees for purposes of this chapter and title 5.
  ``(d) Limitation on Application.--Notwithstanding section 91103, 
sections 7106 and 7113 of title 5 shall not apply to this chapter.
  ``(e) Continuation of Bargaining.--If an exclusive representative and 
the Agency are engaged in bargaining (whether concerning a collective-
bargaining agreement, issues related to the transfer of functions and 
responsibilities from the Agency to the Corporation, or otherwise) 
prior to the date of transfer, such bargaining shall continue between 
the exclusive representative and the Corporation, and the Corporation 
shall be bound by any commitments made during bargaining by the Agency.
  ``(f) Statutory Construction.--Nothing in this section may be 
construed to prohibit the waiving of hearings by stipulation for the 
purpose of a consent election in conformity with regulations and rules 
of decision of the Authority.
  ``(g) Limitation.--Notwithstanding any other provision of this 
chapter or any provision of title 5, no bargaining unit or part of a 
bargaining unit consisting of employees of the Corporation represented 
by a labor organization pursuant to subsection (b) may be reviewed, 
rescinded, amended, altered, or varied, other than--
          ``(1) to include in the unit any employees who are not 
        represented by a labor organization, or
          ``(2) to merge bargaining units that are represented by the 
        same labor organization,
before the first day of the last 3 months of the first collective 
agreement entered into after the date of transfer that applies to those 
employees and that has resulted from collective bargaining between such 
labor organization and the Corporation.
  ``(h) Deduction.--
          ``(1) In general.--Notwithstanding section 91103, section 
        7115 of title 5 shall not apply to this chapter.
          ``(2) Dues.--When a labor organization holds exclusive 
        recognition, the Corporation shall deduct the regular and 
        periodic dues, initiation fees, and assessments (not including 
        fines and penalties) of the organization from the pay of all 
        members of the organization in the unit of recognition if the 
        Corporation (or, before the date of transfer, the Agency) has 
        received from each employee, on whose account such deductions 
        are made, a written assignment which shall be irrevocable for a 
        period of not more than 1 year.
          ``(3) Continuation.--Any agreement described in subsection 
        (c) that provides for deduction by the Agency of the regular 
        and periodic dues, initiation fees, and assessments (not 
        including fines and penalties) of the labor organization from 
        the pay of its members shall continue in full force and effect 
        and the obligation for such deductions shall be assumed by the 
        Corporation. No such deduction may be made from the pay of any 
        employee except on the employee's written assignment, which 
        shall be irrevocable for a period of not more than 1 year.

``Sec. 91106. Collective-bargaining agreements

  ``(a) In General.--Except as provided under section 91105(c), 
collective-bargaining agreements between the Corporation and bargaining 
representatives shall be effective for not less than 2 years.
  ``(b) Procedures.--Collective-bargaining agreements between the 
Corporation and bargaining representatives recognized under section 
91105 may include procedures for resolution by the parties of 
grievances and adverse actions arising under the agreement, including 
procedures culminating in binding third-party arbitration, or the 
parties may adopt such procedures by mutual agreement in the event of a 
dispute. Such procedures shall be applicable to disputes arising under 
section 91109.
  ``(c) Limitation on Application.--Notwithstanding section 91103, 
section 7121(c) of title 5 shall not apply to this chapter.
  ``(d) Dispute Resolution Procedures.--The Corporation and bargaining 
representatives recognized under section 91105 may by mutual agreement 
adopt procedures for the resolution of disputes or impasses arising in 
the negotiation of a collective-bargaining agreement.

``Sec. 91107. Collective-bargaining dispute resolution

  ``(a) Resolution of Disputes.--
          ``(1) In general.--If, prior to 90 days after the expiration 
        of the term collective-bargaining agreement or 90 days after 
        the parties begin mid-term negotiations, the Corporation and 
        the exclusive bargaining representative of the employees of the 
        Corporation (in this section referred to collectively as the 
        `parties') do not reach an agreement under sections 7114(a)(1), 
        7114(a)(4), and 7114(b) of title 5 (as such sections apply to 
        the Corporation under this chapter), or section 91106(d) of 
        this chapter, the Corporation and the bargaining representative 
        shall use the mediation services of the Service to attempt to 
        reach such agreement in accordance with part 1425 of title 29, 
        Code of Federal Regulations (as in effect on the date of 
        enactment of this subtitle).
          ``(2) Mediation period.--The mediation period under paragraph 
        (1) may not exceed 60 days unless extended by written agreement 
        of the parties.
  ``(b) Binding Arbitration for Term Bargaining.--
          ``(1) Three member private arbitration board.--If the 
        mediation services of the Service under subsection (a)(1) do 
        not lead to the resolution of issues in controversy arising 
        from the negotiation of a term collective-bargaining agreement, 
        the parties shall submit their issues in controversy to a 
        private arbitration board consisting of 3 members.
          ``(2) Appointment of arbitration board.--
                  ``(A) Preparation of list of arbitrators.--The 
                Director of the Service shall provide for the 
                appointment of the 3 members of an arbitration board 
                by--
                          ``(i) preparing a list of not fewer than 15 
                        names of arbitrators of nationwide reputation 
                        and professional stature with at least 20 years 
                        of experience in labor-management arbitration 
                        and considerable experience in interest 
                        arbitration in major industries; and
                          ``(ii) providing the list to the parties.
                  ``(B) Selection of arbitrators by parties.--Not later 
                than 10 days after receiving a list of names under 
                subparagraph (A), the parties shall each select one 
                arbitrator. The arbitrators selected by the parties do 
                not need to be arbitrators whose names appear on the 
                list.
                  ``(C) Selection of third arbitrator.--Not later than 
                7 days after the date on which the 2 arbitrators are 
                selected by the parties under subparagraph (B), the 2 
                arbitrators, acting jointly, shall select a third 
                person from the list prepared under subparagraph (A).
                  ``(D) Failure to act.--If either of the parties fails 
                to select a person or if the 2 arbitrators are unable 
                to agree on the third person in 7 days, the parties 
                shall make the selection by alternately striking names 
                on the list prepared under subparagraph (A), beginning 
                with the party chosen on a random basis, until one 
                arbitrator remains.
          ``(3) Framing issues in controversy.--If the parties do not 
        agree on the framing of the issues to be submitted for 
        arbitration, the arbitration board shall frame the issues.
          ``(4) Hearings.--The arbitration board shall give the parties 
        a full and fair hearing, including an opportunity to present 
        evidence and witnesses in support of their claims and an 
        opportunity to present their case in person, by counsel, or by 
        other representative as they may elect.
          ``(5) Decisions.--The arbitration board shall render its 
        written decision not later than 90 days after the date of its 
        appointment. Decisions of the arbitration board shall be 
        conclusive and binding upon the parties.
          ``(6) Evidence.--The arbitration board shall consider and 
        afford the proper weight to all of the evidence presented by 
        the parties.
          ``(7) Costs.--The parties shall share costs of the 
        arbitration equally.
  ``(c) Ratification of Agreements.--Upon reaching a voluntary 
agreement or at the conclusion of the binding arbitration under 
subsection (b), the final agreement, except for those matters decided 
by a private arbitration board, shall be--
          ``(1) subject to ratification by the exclusive bargaining 
        representative of the employees, if so requested by the 
        bargaining representative; and
          ``(2) subject to approval by the head of the Corporation in 
        accordance with section 7114(c) of title 5.
  ``(d) Mid-Term Bargaining.--
          ``(1) Preparation of list of arbitrators.--If the mediation 
        services of the Service under subsection (a) do not lead to the 
        resolution of issues in controversy arising from the 
        negotiation of a mid-term collective-bargaining agreement, the 
        Director shall provide the parties a list of not fewer than 10 
        names of arbitrators of nationwide reputation and professional 
        stature with at least 20 years of experience in labor-
        management arbitration and considerable experience in interest 
        arbitration in major industries.
          ``(2) Selection of arbitrator.--The parties shall alternately 
        strike names on the list, beginning with the party chosen on a 
        random basis, until one arbitrator remains.
          ``(3) Decision.--The arbitrator shall hold a hearing, and not 
        later than 90 days after date of the appointment of the 
        arbitrator, issue a written decision resolving the issues in 
        controversy. The decision shall be conclusive and binding upon 
        the parties.
  ``(e) Enforcement.--To enforce this section, either party may bring 
suit in the United States District Court for the District of Columbia, 
which shall hear and resolve the enforcement action on an expedited 
basis.
  ``(f) Application.--Notwithstanding section 91103(a), section 7119 of 
title 5 shall not apply to this chapter.

``Sec. 91108. Potential and pending grievances, arbitrations, and 
                    settlements

  ``(a) In General.--The Corporation is deemed to be the employer 
referred to in any agreement or supplement referred to in section 
91105(c) for the purpose of any arbitration proceeding or arbitration 
award. Any agreement concerning any employee that resolves a potential 
or filed grievance that is binding on the Agency shall, to the extent 
that the employee becomes an employee of the Corporation, become 
binding on the Corporation.
  ``(b) Existing Binding Agreements.--Any agreement or supplement 
referred to in section 91105(c) is binding on--
          ``(1) the Corporation as if it were the employer referred to 
        in such agreement or supplement;
          ``(2) the bargaining representative that is a party to the 
        agreement or supplement; and
          ``(3) the employees of the Corporation in the bargaining unit 
        with respect to whom that bargaining representative has been 
        certified.
  ``(c) Jurisdiction.--Subject to section 91103, the Authority shall 
retain jurisdiction over all matters arising before the date of 
transfer in relation to the interpretation and application of any 
agreement or supplement referred to in section 91105(c), whether or not 
such agreement or supplement has expired.
  ``(d) Existing Grievances or Arbitrations.--Grievances or 
arbitrations that were filed or commenced before the date of transfer 
with respect to any agreement or supplement referred to in section 
91105(c) shall be continued as though the Corporation were the employer 
referred to in the agreement or supplement.
  ``(e) Proceedings After Date of Transfer.--Where events giving rise 
to a grievance under any agreement or supplement referred to in section 
91105(c) occurred before the date of transfer but the proceedings had 
not commenced before that date, the proceedings may be commenced on or 
after the date of transfer in accordance with such agreement or 
supplement as though the Corporation were the employer referred to in 
such agreement or supplement.
  ``(f) Actions Deemed To Be by Corporation.--For the purposes of 
subsections (c), (d), and (e), anything done, or not done, by the 
Agency is deemed to have been done, or to have not been done, as the 
case may be, by the Corporation.
  ``(g) Exceptions to Arbitral Awards.--
          ``(1) In general.--Notwithstanding section 91103, section 
        7122 of title 5 shall not apply to this chapter.
          ``(2) Actions to vacate.--Either party to grievance 
        arbitration under this chapter may file an action pursuant to 
        section 91110(a) to enforce the arbitration process or to 
        vacate or enforce an arbitration award. An arbitration award 
        may only be vacated on the grounds, and pursuant to the 
        standards, that would be applicable to an action to vacate an 
        arbitration award brought in the Federal courts under section 
        301 of the Labor Management Relations Act, 1947 (29 U.S.C. 
        185).

``Sec. 91109. Prohibition on striking and other activities

  ``(a) In General.--Employees of the Corporation are prohibited from--
          ``(1) participating in a strike, work stoppage, or slowdown 
        against the Corporation; or
          ``(2) picketing the Corporation in a labor-management dispute 
        if such picketing interferes with the Corporation's operations.
  ``(b) Termination.--An employee who participates in an activity 
described in subsection (a) shall be terminated from employment with 
the Corporation.

``Sec. 91110. Legal action

  ``(a) In General.--Consistent with the requirements of section 90315, 
actions to enforce the arbitration process or vacate or enforce an 
arbitral award under section 91108(g)(2) between the Corporation and a 
labor organization representing Corporation employees, or between any 
such labor organizations, may be brought in any district court of the 
United States having jurisdiction of the parties, without respect to 
the amount in controversy.
  ``(b) Authorized Acts.--A labor organization recognized under section 
91105 and the Corporation shall be bound by the authorized acts of 
their agents. Any labor organization may sue or be sued as an entity 
and on behalf of the employees whom it represents in the courts of the 
United States. Any money judgment against a labor organization in a 
district court of the United States shall be enforceable only against 
the organization as an entity and against its assets, and shall not be 
enforceable against any individual member or his assets.
  ``(c) Jurisdiction.--Under this subtitle, for the purposes of actions 
and proceedings by or against labor organizations in the district 
courts of the United States, district courts shall be deemed to have 
jurisdiction of a labor organization--
          ``(1) in the district in which such organization maintains 
        its principal offices; or
          ``(2) in any district in which its duly authorized officers 
        or agents are engaged in representing or acting for employee 
        members.
  ``(d) Summons or Subpoena.--The service of summons, subpoena, or 
other legal process of any court of the United States upon an officer 
or agent of a labor organization, in his capacity as such, shall 
constitute service upon the labor organization.

                      ``CHAPTER 913--OTHER MATTERS

``Sec.
``91301. Termination of Government functions.
``91302. Savings provisions.

``Sec. 91301. Termination of Government functions

  ``Except as otherwise provided in this subtitle, whenever any 
function vested by law in the Secretary, Administrator, Department of 
Transportation, or FAA has been transferred to the Corporation pursuant 
to this subtitle, it shall no longer be a function of the Government.

``Sec. 91302. Savings provisions

  ``(a) Completed Administrative Actions.--
          ``(1) In general.--Completed administrative actions of the 
        Department of Transportation or the FAA shall not be affected 
        by the enactment of this subtitle, but shall continue in effect 
        according to their terms until amended, modified, superseded, 
        terminated, set aside, or revoked in accordance with law.
          ``(2) Completed administrative action defined.--In paragraph 
        (1), the term `completed administrative action' includes 
        orders, determinations, rules, regulations, personnel actions, 
        permits, agreements, grants, contracts, certificates, licenses, 
        registrations, and privileges.
  ``(b) Continued Effectiveness of Pending Actions.--
          ``(1) Pending actions and proceedings.--The provisions of 
        this subtitle shall not affect any proceedings of the 
        Department of Transportation or the FAA pending on the date of 
        transfer, including--
                  ``(A) notices of proposed rulemaking related to 
                activities of the FAA, without regard to whether the 
                activities are transferred to the Corporation; and
                  ``(B) an application for a license, a permit, a 
                certificate, or financial assistance pending on the 
                date of transfer before the Department of 
                Transportation or the FAA, or any officer thereof, with 
                respect to activities of the Department or the FAA, 
                without regard to whether the activities are 
                transferred to the Corporation.
          ``(2) Effect of orders.--Orders issued in any proceedings 
        referred to in paragraph (1) shall continue in effect until 
        modified, terminated, superseded, or revoked in accordance with 
        law. Nothing in this subsection prohibits the discontinuance or 
        modification of any such proceeding under the same terms and 
        conditions and to the same extent that such proceeding could 
        have been discontinued or modified if this subtitle had not 
        been enacted.
  ``(c) Continued Effectiveness of Administrative and Judicial 
Actions.--No causes of action or actions by or against the Department 
of Transportation or the FAA arising from acts or omissions occurring 
before the date of transfer shall abate by reason of the enactment of 
this subtitle.
  ``(d) Substitution or Addition of Parties to Judicial Actions.--
Except as provided by subsection (e)(2), if, on the date of transfer, 
the Department of Transportation or the FAA, or any officer thereof in 
the officer's capacity, is a party to an action and, under this 
subtitle, the performance of that activity of the Department, FAA, or 
officer is transferred to the Corporation, such action shall be 
continued with the CEO substituted or added as a party.
  ``(e) Air Traffic Services Liabilities and Obligations.--
          ``(1) Assumption of obligations.--Except as provided in 
        paragraph (2), the Corporation shall assume--
                  ``(A) all obligations (tangible and incorporeal, 
                present, and executory) associated with the air traffic 
                services transferred under this subtitle on the date of 
                transfer, including leases, permits, licenses, 
                contracts, agreements, accounts receivable, and 
                accounts payable; and
                  ``(B) all claims and liabilities associated with the 
                air traffic services transferred under this subtitle 
                pending on the date of transfer.
          ``(2) Claims and actions that remain liabilities of united 
        states.--
                  ``(A) Claims and actions arising in tort.--All claims 
                and actions arising in tort pending on the date of 
                transfer and arising out of the alleged acts or 
                omissions of employees of the FAA who transfer to the 
                Corporation shall remain liabilities of the United 
                States.
                  ``(B) Contingent liabilities.--All contingent 
                liabilities existing on the date of transfer shall 
                remain with the United States, including (without 
                limitation) environmental and intellectual property 
                infringement claims.
                  ``(C) Other claims and liabilities.--All other claims 
                and liabilities arising out of the alleged acts or 
                omissions of the United States before the date of 
                transfer (including those arising under an agreement 
                referred to in section 91105(c)) whose remedy is 
                financial or monetary in nature shall remain 
                liabilities of the United States.
                  ``(D) Access of federal representatives to employees 
                and records.--The Secretary shall ensure that, before 
                the date of transfer, the Corporation has agreed to 
                allow representatives of the Secretary and the Attorney 
                General such access as they may require to employees 
                and records of the Corporation for all purposes 
                relating to the handling of such claims under this 
                paragraph.

``CHAPTER 915--CONGRESSIONAL OVERSIGHT OF AIR TRAFFIC SERVICES PROVIDER

``Sec.
``91501. Inspector General reports to Congress on transition.
``91502. State of air traffic services.
``91503. Submission of annual financial report.
``91504. Submission of strategic plan.
``91505. Submission of annual action plan.

``Sec. 91501. Inspector General reports to Congress on transition

  ``(a) In General.--Before the date of transfer, the Inspector General 
of the Department of Transportation shall submit regular reports to 
Congress on the progress of the preparation of the Department of 
Transportation and of the Corporation for the transfer of operational 
control of air traffic services under this subtitle.
  ``(b) Timing.--The reports described in subsection (a) shall be 
submitted, at a minimum, on a quarterly basis until the date of 
transfer.
  ``(c) Sunset.--This section shall expire on the date of transfer.
  ``(d) Statutory Construction.--Nothing in this section may be 
construed to limit the authority of the Inspector General of the 
Department of Transportation to conduct oversight of the Department of 
Transportation's interactions with the Corporation after the date of 
transfer.

``Sec. 91502. State of air traffic services

  ``(a) Report.--Not later than 2 years after the date of transfer, and 
on or before March 31 of every second year beginning thereafter--
          ``(1) the Corporation shall submit to the Secretary a report 
        on the state of air traffic services; and
          ``(2) the Secretary shall submit the report to Congress.
  ``(b) Contents.--The report shall include, as appropriate, 
information on--
          ``(1) access to airports and services for all users, 
        including access with respect to rural areas;
          ``(2) charges and fees, safety, and areas in which the 
        Corporation has identified efficiencies in the system, 
        including staffing and facilities realignment or consolidation;
          ``(3) the safe, fair, and timely provision of air traffic 
        services by the Corporation;
          ``(4) the sound operation of the Corporation and the impact 
        of any activities of the Corporation on United States airspace;
          ``(5) the cooperation and interaction of the Corporation with 
        the Department of Defense, the Department of Transportation, 
        the FAA, and other Federal departments and agencies, including 
        any agreements between the Corporation and those departments 
        and agencies;
          ``(6) compliance of the Corporation with United States 
        obligations under international treaties and agreements;
          ``(7) compliance of the Corporation with Federal safety, 
        environmental, corporate, and tax laws and regulations;
          ``(8) compliance of the Corporation with Federal laws related 
        to employees of the Corporation;
          ``(9) follow-up on Inspector General and Government 
        Accountability Office audits, investigations, and reports 
        involving the Corporation, including any recommendations 
        included in such reports;
          ``(10) compliance of the Corporation with other Federal 
        requirements, including requirements relating to public 
        disclosure, publication of fees, annual reporting, and 
        establishment of the Advisory Board and other committees;
          ``(11) actions and activities of the CEO and Board and their 
        adherence to their duties and responsibilities;
          ``(12) compliance of the Corporation with requirements 
        related to rural, remote, and small community air traffic 
        services;
          ``(13) compliance of the Corporation with requirements 
        related to claims of incorrect fees and resolution of fee 
        disputes;
          ``(14) compliance of the Corporation with requirements to 
        report safety violations to the FAA, cooperate with FAA 
        investigations, and assist in FAA enforcement actions;
          ``(15) actions in times of emergencies and times of war;
          ``(16) progress made by the Corporation in implementing 
        system modernization efforts and ongoing capital investments, 
        plans of the Corporation for next steps in implementing such 
        efforts and investments, current efficiencies and benefits of 
        previously implemented systems improvements, and current needs 
        for improvement; and
          ``(17) such other matters as the Secretary, in consultation 
        with the Administrator, determines appropriate.

``Sec. 91503. Submission of annual financial report

  ``(a) Annual Financial Report.--
          ``(1) In general.--Not later than 1 year after the date of 
        transfer, and annually thereafter, the Corporation shall 
        publish a report on the activities of the Corporation during 
        the prior year.
          ``(2) Contents; availability.--The annual report shall 
        contain financial and operational performance information 
        regarding the Corporation, as well as information on the 
        compensation (including bonuses and other financial incentives) 
        of each Director, the CEO, and officers of the Corporation, and 
        shall be made publicly available.
          ``(3) Propriety information.--The Corporation shall ensure 
        that any propriety information that may be contained in the 
        annual report is not made public.
  ``(b) Submission.--Each year, on the date the annual report required 
pursuant to subsection (a) is published--
          ``(1) the Corporation shall submit the report to the 
        Secretary; and
          ``(2) the Secretary shall submit the report to Congress.

``Sec. 91504. Submission of strategic plan

  ``(a) Submission of Strategic Plan.--Not later than 15 days after the 
initial strategic plan is approved by the Board pursuant to section 
90308(c)--
          ``(1) the Corporation shall submit the strategic plan to the 
        Secretary; and
          ``(2) the Secretary shall submit the strategic plan to 
        Congress.
  ``(b) Updates to Strategic Plan.--Not later than 15 days after an 
update to the strategic plan is approved by the Board pursuant to 
section 90308(c)--
          ``(1) the Corporation shall submit the updated strategic plan 
        to the Secretary; and
          ``(2) the Secretary shall submit the updated strategic plan 
        to Congress.

``Sec. 91505. Submission of annual action plan

  ``(a) In General.--The Corporation shall develop an annual report on 
the goals of the Corporation for the following year.
  ``(b) Contents.--The report shall contain goals for the Corporation 
to meet that are specific, tangible, and actionable, in order to 
expedite improvements to, and maintain the integrity of, air traffic 
services provided by the Corporation.
  ``(c) Submission.--Not later than 1 year after the date of transfer, 
and annually thereafter--
          ``(1) the Corporation shall submit the report to the 
        Secretary; and
          ``(2) the Secretary shall submit the report to Congress.
  ``(d) Public Availability.--The Corporation shall publish, and make 
available to the public, each report submitted to the Secretary under 
subsection (c).
  ``(e) Proprietary Information.--In carrying out this section, the 
Corporation may take necessary actions to prevent the public disclosure 
of proprietary information.''.
  (b) Analysis for Title 49.--The analysis for title 49, United States 
Code, is amended by adding at the end the following:

``XI. American Air Navigation Services Corporation..........   90101''.

            Subtitle B--Amendments to Federal Aviation Laws

SEC. 221. DEFINITIONS.

  Section 40102(a) of title 49, United States Code, is amended by 
adding at the end the following:
          ``(48) `American Air Navigation Services Corporation' means 
        the American Air Navigation Services Corporation established by 
        subtitle XI.''.

SEC. 222. SUNSET OF FAA AIR TRAFFIC ENTITIES AND OFFICERS.

  (a) Air Traffic Services Committee.--Section 106(p) of title 49, 
United States Code, is amended--
          (1) in paragraph (7) by adding at the end the following:
                  ``(I) Sunset.--The Committee shall terminate and this 
                paragraph shall cease to be effective beginning on the 
                date of transfer (as defined in section 90101(a)).''; 
                and
          (2) by adding at the end the following:
          ``(9) Sunset of air traffic advisory role.--Beginning on the 
        date of transfer (as defined in section 90101(a)), the Council 
        shall not develop or submit comments, recommended 
        modifications, or dissenting views directly regarding the 
        American Air Navigation Services Corporation or air traffic 
        services.''.
  (b) Chief Operating Officer.--Section 106(r) of title 49, United 
States Code, is amended by adding at the end the following:
          ``(6) Sunset.--The position of Chief Operating Officer shall 
        terminate and this subsection shall cease to be effective 
        beginning on the date of transfer (as defined in section 
        90101(a)).''.
  (c) Chief NextGen Officer.--Section 106(s) of title 49, United States 
Code, is amended by adding at the end the following:
          ``(8) Sunset.--The position of Chief NextGen Officer shall 
        terminate and this subsection shall cease to be effective 
        beginning on the date of transfer (as defined in section 
        90101(a)).''.

SEC. 223. ROLE OF ADMINISTRATOR.

  Section 40103(b) of title 49, United States Code, is amended--
          (1) in paragraph (1) by striking ``The Administrator'' each 
        place it appears and inserting ``Before the date of transfer 
        (as defined in section 90101(a)), the Administrator'';
          (2) by striking paragraph (2) and inserting the following:
  ``(2) The Administrator shall--
          ``(A) before the date of transfer (as defined in section 
        90101(a)), prescribe air traffic regulations on the flight of 
        aircraft (including regulations on safe altitudes) for--
                  ``(i) navigating, protecting, and identifying 
                aircraft;
                  ``(ii) protecting individuals and property on the 
                ground;
                  ``(iii) using the navigable airspace efficiently; and
                  ``(iv) preventing collisions between aircraft, 
                between aircraft and land or water vehicles, and 
                between aircraft and airborne objects; and
          ``(B) on and after the date of transfer (as defined in 
        section 90101(a)), prescribe safety regulations on the flight 
        of aircraft (including regulations on safe altitudes) for--
                  ``(i) navigating, protecting, and identifying 
                aircraft;
                  ``(ii) protecting individuals and property on the 
                ground;
                  ``(iii) ensuring equitable access to and use of 
                airspace; and
                  ``(iv) preventing collisions between aircraft, 
                between aircraft and land or water vehicles, and 
                between aircraft and airborne objects.''; and
          (3) in paragraph (3) by striking ``Administrator'' each place 
        it appears and inserting ``Secretary''.

SEC. 224. EMERGENCY POWERS.

  Section 40106(a) of title 49, United States Code, is amended--
          (1) in the matter preceding paragraph (1) by striking ``air 
        traffic'';
          (2) in paragraph (1) by inserting ``and the American Air 
        Navigation Services Corporation'' after ``Administration''; and
          (3) in paragraph (2) by inserting ``and the American Air 
        Navigation Services Corporation'' after ``Administrator''.

SEC. 225. PRESIDENTIAL TRANSFERS IN TIME OF WAR.

  Section 40107(b) of title 49, United States Code, is amended to read 
as follows:
  ``(b) During War.--If war occurs, the President by Executive order 
may temporarily transfer to the Secretary of Defense a duty, power, 
activity, or facility of the Administrator or the American Air 
Navigation Services Corporation. In making the transfer, the President 
may temporarily transfer records, property, officers, and employees of 
the Administration or the American Air Navigation Services Corporation 
to the Department of Defense.''.

SEC. 226. AIRWAY CAPITAL INVESTMENT PLAN BEFORE DATE OF TRANSFER.

  Section 44501(b) of title 49, United States Code, is amended--
          (1) in the first sentence by striking ``The Administrator'' 
        and inserting ``Before the date of transfer (as defined in 
        section 90101(a)), the Administrator'';
          (2) in paragraph (4)(B) by striking ``and'' at the end;
          (3) in paragraph (5) by striking the period at the end and 
        inserting ``; and''; and
          (4) by adding at the end the following:
          ``(6) for fiscal years 2017 through 2020, a process under 
        which the Administrator shall continue to comply with the 
        requirements of this section before the date of transfer (as 
        defined in section 90101(a)).''.

SEC. 227. AVIATION FACILITIES BEFORE DATE OF TRANSFER.

  (a) General Authority.--Section 44502(a) of title 49, United States 
Code, is amended--
          (1) in paragraph (1) by striking ``The Administrator of the 
        Federal Aviation Administration may'' and inserting ``Before 
        the date of transfer (as defined in section 90101(a)), the 
        Secretary of Transportation may'';
          (2) in paragraph (2) by striking ``The cost'' and inserting 
        ``Before the date of transfer (as defined in section 90101(a)), 
        the cost'';
          (3) in paragraph (3) by striking ``The Secretary'' and 
        inserting ``Before the date of transfer (as defined in section 
        90101(a)), the Secretary'';
          (4) by striking paragraph (4);
          (5) by redesignating paragraph (5) as paragraph (4); and
          (6) in paragraph (4) (as so redesignated) by striking ``The 
        Administrator'' and inserting ``Before the date of transfer (as 
        defined in section 90101(a)), the Secretary of 
        Transportation''.
  (b) Certification of Necessity.--Section 44502(b) of title 49, United 
States Code, is amended--
          (1) by striking ``Except'' and inserting ``Before the date of 
        transfer (as defined in section 90101(a)), except''; and
          (2) by striking ``the Administrator of the Federal Aviation 
        Administration'' and inserting ``the Secretary of 
        Transportation''.
  (c) Ensuring Conformity With Plans and Policies.--Section 44502(c) of 
title 49, United States Code, is amended--
          (1) in paragraph (1)--
                  (A) by striking ``Administrator of the Federal 
                Aviation Administration'' the second, third, and fourth 
                places it appears and inserting ``Secretary of 
                Transportation'';
                  (B) by striking ``by the Administrator of the Federal 
                Aviation Administration under section 40103(b)(1) of 
                this title''; and
                  (C) by striking ``Congress'' and inserting 
                ``Congress, the American Air Navigation Services 
                Corporation,''; and
          (2) in paragraph (2)--
                  (A) by striking ``Administrator of the Federal 
                Aviation Administration'' and inserting ``Secretary of 
                Transportation''; and
                  (B) by striking ``that the Administrator'' and 
                inserting ``that the Secretary''.
  (d) Transfers of Instrument Landing Systems.--Section 44502(e) of 
title 49, United States Code, is amended by striking ``An airport may 
transfer'' and inserting ``Before the date of transfer (as defined in 
section 90101(a)), an airport may transfer''.

SEC. 228. JUDICIAL REVIEW.

  Section 46110(a) of title 49, United States Code, is amended by 
striking ``or subsection (l) or (s) of section 114'' and inserting 
``subsection (l) or (s) of section 114, or section 90501''.

SEC. 229. CIVIL PENALTIES.

  Section 46301(a)(1)(A) of title 49, United States Code, is amended by 
striking ``or section 47133'' and inserting ``section 47133, or section 
90501(b)(3)''.

                       Subtitle C--Other Matters

SEC. 241. USE OF FEDERAL TECHNICAL FACILITIES.

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall make Administration technical facilities available 
to the American Air Navigation Services Corporation for air traffic 
control research and development projects.
  (b) Cooperative Agreement.--
          (1) In general.--To ensure the safe transition of air traffic 
        services, not later than 180 days prior to the date of transfer 
        (as defined in section 90101(a) of title 49, United States 
        Code, as added by this Act), the Administrator shall enter into 
        an agreement with the American Air Navigation Services 
        Corporation, for a period of not less than 5 years, concerning 
        services that could be provided at the Federal Aviation 
        Administration technical center, including the integrated air 
        traffic control laboratories.
          (2) Services defined.--In this subsection, the term 
        ``services'' includes--
                  (A) activities associated with the approval of a 
                safety management system under chapter 905 of title 49, 
                United States Code, as added by this Act; and
                  (B) any other activity the Secretary considers 
                necessary to promote safety in air traffic services, 
                including verification of the safety functions of new 
                air traffic control technologies.
  (c) Statutory Construction.--Nothing in this title, or the amendments 
made by this title, may be construed to limit the safety regulatory 
authority of the Department of Transportation, including the research 
and development functions of the Department.
  (d) Safety.--Before the date of transfer (as defined by section 
90101(a) of title 49, United States Code, as added by this Act) all 
operational testing and integration of air traffic control systems 
conducted by the Administration shall continue.

SEC. 242. ENSURING PROGRESS ON NEXTGEN PRIORITIES BEFORE DATE OF 
                    TRANSFER.

  (a) Near-Term NextGen Priorities.--Prior to the date of transfer (as 
defined by section 90101(a) of title 49, United States Code, as added 
by this Act), the Administrator of the Federal Aviation Administration, 
in consultation with the NextGen Advisory Committee, shall prioritize 
the implementation of the following programs:
          (1) Multiple runway operations.
          (2) Performance-based navigation.
          (3) Surface operations and data sharing.
          (4) Data communications.
  (b) Near-Term NextGen Performance Goals.--
          (1) In general.--The Administrator, in consultation with the 
        NextGen Advisory Committee, shall establish quantifiable near-
        term NextGen performance goals for each of the programs 
        prioritized under subsection (a).
          (2) Tracking.--The Administrator shall track the performance 
        goals in a publicly available and transparent manner.
          (3) Measuring benefits.--The Administrator shall establish 
        the performance goals in a manner that allows Congress, 
        stakeholders, and the public to clearly measure the delivery of 
        NextGen benefits between 2018 and 2020, including with respect 
        to--
                  (A) increasing safety;
                  (B) reducing aviation's impact on the environment;
                  (C) enhancing controller productivity; and
                  (D) increasing predictability, airspace capacity, and 
                efficiency.
  (c) NextGen Metrics Report.--Section 106(s)(5) of title 49, United 
States Code, is amended by adding at the end the following:
                  ``(I) Developing, as part of the annual report 
                required under paragraph (4), a description of the 
                progress made in meeting the near-term NextGen 
                performance goals required pursuant to section 242 of 
                the 21st Century AIRR Act and delivering near-term 
                NextGen benefits.''.
  (d) Chief NextGen Officer Responsibility for Meeting Near-Term 
NextGen Goals.--Section 106(s)(3) of title 49, United States Code, is 
amended by adding at the end the following: ``In evaluating the 
performance of the Chief NextGen Officer, the Administrator shall 
consider the progress made in meeting the near-term NextGen performance 
goals required pursuant to section 242 of the 21st Century AIRR Act and 
delivering near-term NextGen benefits.''.

SEC. 243. SEVERABILITY.

  If a provision of this title (including any amendment made by this 
title) or its application to any person or circumstance is held 
invalid, neither the remainder of this title nor the application of the 
provision to other persons or circumstances shall be affected.

SEC. 244. PROHIBITION ON RECEIPT OF FEDERAL FUNDS.

  Notwithstanding any other provision of law, the Corporation 
established under section 90301 of title 49, United States Code, as 
added by this Act, may not accept or receive any funds from the 
uncommitted balance of the Airport and Airway Trust Fund established 
under section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
9502).

               TITLE III--FAA SAFETY CERTIFICATION REFORM

                     Subtitle A--General Provisions

SEC. 301. DEFINITIONS.

  In this title, the following definitions apply:
          (1) FAA.--The term ``FAA'' means the Federal Aviation 
        Administration.
          (2) Safety oversight and certification advisory committee.--
        The term ``Safety Oversight and Certification Advisory 
        Committee'' means the Safety Oversight and Certification 
        Advisory Committee established under section 302.
          (3) Systems safety approach.--The term ``systems safety 
        approach'' means the application of specialized technical and 
        managerial skills to the systematic, forward-looking 
        identification and control of hazards throughout the lifecycle 
        of a project, program, or activity.

SEC. 302. SAFETY OVERSIGHT AND CERTIFICATION ADVISORY COMMITTEE.

  (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Secretary of Transportation shall establish a Safety 
Oversight and Certification Advisory Committee (in this section 
referred to as the ``Advisory Committee'').
  (b) Duties.--The Advisory Committee shall provide advice to the 
Secretary on policy-level issues facing the aviation community that are 
related to FAA certification and safety oversight programs and 
activities, including, at a minimum, the following:
          (1) Aircraft and flight standards certification processes, 
        including efforts to streamline those processes.
          (2) Implementation and oversight of safety management 
        systems.
          (3) Risk-based oversight efforts.
          (4) Utilization of delegation and designation authorities.
          (5) Regulatory interpretation standardization efforts.
          (6) Training programs.
          (7) Expediting the rulemaking process and giving priority to 
        rules related to safety.
  (c) Functions.--The Advisory Committee shall carry out the following 
functions (as the functions relate to FAA certification and safety 
oversight programs and activities):
          (1) Foster industry collaboration in an open and transparent 
        manner.
          (2) Consult with, and ensure participation by--
                  (A) the private sector, including representatives 
                of--
                          (i) general aviation;
                          (ii) commercial aviation;
                          (iii) aviation labor;
                          (iv) aviation maintenance;
                          (v) aviation, aerospace, and avionics 
                        manufacturing;
                          (vi) unmanned aircraft systems operators and 
                        manufacturers; and
                          (vii) the commercial space transportation 
                        industry;
                  (B) members of the public; and
                  (C) other interested parties.
          (3) Establish consensus national goals, strategic objectives, 
        and priorities for the most efficient, streamlined, and cost-
        effective certification and oversight processes in order to 
        maintain the safety of the aviation system and, at the same 
        time, allow the FAA to meet future needs and ensure that 
        aviation stakeholders remain competitive in the global 
        marketplace.
          (4) Provide policy guidance for the FAA's certification and 
        safety oversight efforts.
          (5) Provide ongoing policy reviews of the FAA's certification 
        and safety oversight efforts.
          (6) Make appropriate legislative, regulatory, and guidance 
        recommendations for the air transportation system and the 
        aviation safety regulatory environment.
          (7) Establish performance objectives for the FAA and 
        industry.
          (8) Establish performance metrics and goals for the FAA and 
        the regulated aviation industry to be tracked and reviewed as 
        streamlining and certification reform and regulation 
        standardization efforts progress.
          (9) Provide a venue for tracking progress toward national 
        goals and sustaining joint commitments.
          (10) Develop recruiting, hiring, training, and continuing 
        education objectives for FAA aviation safety engineers and 
        aviation safety inspectors.
          (11) Provide advice and recommendations to the FAA on how to 
        prioritize safety rulemaking projects.
          (12) Improve the development of FAA regulations by providing 
        information, advice, and recommendations related to aviation 
        issues.
          (13) Facilitate the validation of United States products 
        abroad.
  (d) Membership.--
          (1) In general.--The Advisory Committee shall be composed of 
        the following members:
                  (A) The Administrator of the FAA (or the 
                Administrator's designee).
                  (B) Individuals appointed by the Secretary to 
                represent the following interests:
                          (i) Aircraft and engine manufacturers.
                          (ii) Avionics and equipment manufacturers.
                          (iii) Labor organizations, including 
                        collective bargaining representatives of FAA 
                        aviation safety inspectors and aviation safety 
                        engineers.
                          (iv) General aviation operators.
                          (v) Air carriers.
                          (vi) Business aviation operators.
                          (vii) Unmanned aircraft systems manufacturers 
                        and operators.
                          (viii) Aviation safety management expertise.
                          (ix) Aviation maintenance.
          (2) Nonvoting members.--
                  (A) In general.--In addition to the members appointed 
                under paragraph (1), the Advisory Committee shall be 
                composed of nonvoting members appointed by the 
                Secretary from among individuals representing FAA 
                safety oversight program offices.
                  (B) Duties.--The nonvoting members shall--
                          (i) take part in deliberations of the 
                        Advisory Committee; and
                          (ii) provide input with respect to any final 
                        reports or recommendations of the Advisory 
                        Committee.
                  (C) Limitation.--The nonvoting members may not 
                represent any stakeholder interest other than FAA 
                safety oversight program offices.
          (3) Terms.--Each member and nonvoting member of the Advisory 
        Committee appointed by the Secretary shall be appointed for a 
        term of 2 years.
          (4) Committee characteristics.--The Advisory Committee shall 
        have the following characteristics:
                  (A) An executive-level membership, with members who 
                can represent and enter into commitments for their 
                organizations.
                  (B) The ability to obtain necessary information from 
                experts in the aviation and aerospace communities.
                  (C) A membership size that enables the Committee to 
                have substantive discussions and reach consensus on 
                issues in a timely manner.
                  (D) Appropriate expertise, including expertise in 
                certification and risked-based safety oversight 
                processes, operations, policy, technology, labor 
                relations, training, and finance.
          (5) Limitation on statutory construction.--Public Law 104-65 
        (2 U.S.C. 1601 et seq.) may not be construed to prohibit or 
        otherwise limit the appointment of any individual as a member 
        of the Advisory Committee.
  (e) Chairperson.--
          (1) In general.--The Chairperson of the Advisory Committee 
        shall be appointed by the Secretary from among those members of 
        the Advisory Committee that are executive-level members of the 
        aviation industry.
          (2) Term.--Each member appointed under paragraph (1) shall 
        serve a term of 1 year as Chairperson.
  (f) Meetings.--
          (1) Frequency.--The Advisory Committee shall meet at least 
        twice each year at the call of the Chairperson.
          (2) Public attendance.--The meetings of the Advisory 
        Committee shall be open to the public.
  (g) Special Committees.--
          (1) Establishment.--The Advisory Committee may establish 
        special committees composed of private sector representatives, 
        members of the public, labor representatives, and other 
        interested parties in complying with consultation and 
        participation requirements under this section.
          (2) Rulemaking advice.--A special committee established by 
        the Advisory Committee may--
                  (A) provide rulemaking advice and recommendations to 
                the Administrator with respect to aviation-related 
                issues;
                  (B) afford the FAA additional opportunities to obtain 
                firsthand information and insight from those parties 
                that are most affected by existing and proposed 
                regulations; and
                  (C) expedite the development, revision, or 
                elimination of rules without circumventing public 
                rulemaking processes and procedures.
          (3) Applicable law.--Public Law 92-463 shall not apply to a 
        special committee established by the Advisory Committee.
  (h) Sunset.--The Advisory Committee shall terminate on the last day 
of the 6-year period beginning on the date of the initial appointment 
of the members of the Advisory Committee.
  (i) Termination of Air Traffic Procedures Advisory Committee.--The 
Air Traffic Procedures Advisory Committee established by the FAA shall 
terminate on the date of the initial appointment of the members of the 
Advisory Committee.

               Subtitle B--Aircraft Certification Reform

SEC. 311. AIRCRAFT CERTIFICATION PERFORMANCE OBJECTIVES AND METRICS.

  (a) In General.--Not later than 120 days after the date on which the 
Safety Oversight and Certification Advisory Committee is established 
under section 302, the Administrator of the FAA shall establish 
performance objectives and apply and track metrics for the FAA and the 
aviation industry relating to aircraft certification in accordance with 
this section.
  (b) Collaboration.--The Administrator shall carry out this section in 
collaboration with the Safety Oversight and Certification Advisory 
Committee.
  (c) Performance Objectives.--In carrying out subsection (a), the 
Administrator shall establish performance objectives for the FAA and 
the aviation industry to ensure that, with respect to aircraft 
certification, progress is made toward, at a minimum--
          (1) eliminating certification delays and improving cycle 
        times;
          (2) increasing accountability for both FAA and industry 
        entities;
          (3) achieving full utilization of FAA delegation and 
        designation authorities;
          (4) fully implementing risk management principles and a 
        systems safety approach;
          (5) reducing duplication of effort;
          (6) increasing transparency;
          (7) establishing and providing training, including recurrent 
        training, in auditing and a systems safety approach to 
        certification oversight;
          (8) improving the process for approving or accepting 
        certification actions between the FAA and bilateral partners;
          (9) maintaining and improving safety;
          (10) streamlining the hiring process for--
                  (A) qualified systems safety engineers to support FAA 
                efforts to implement a systems safety approach; and
                  (B) qualified systems engineers to guide the 
                engineering of complex systems within the FAA; and
          (11) maintaining the leadership of the United States in 
        international aviation and aerospace.
  (d) Performance Metrics.--In carrying out subsection (a), the 
Administrator shall apply and track performance metrics for the FAA and 
the regulated aviation industry established by the Safety Oversight and 
Certification Advisory Committee.
  (e) Data Generation.--
          (1) Baselines.--Not later than 1 year after the date on which 
        the Safety Oversight and Certification Advisory Committee 
        establishes initial performance metrics for the FAA and the 
        regulated aviation industry under section 302, the 
        Administrator shall generate initial data with respect to each 
        of the metrics applied and tracked under this section.
          (2) Measuring progress toward goals.--The Administrator shall 
        use the metrics applied and tracked under this section to 
        generate data on an ongoing basis and to measure progress 
        toward the achievement of national goals established by the 
        Safety Oversight and Certification Advisory Committee.
  (f) Publication.--The Administrator shall make data generated using 
the metrics applied and tracked under this section available to the 
public in a searchable, sortable, and downloadable format through the 
internet website of the FAA and other appropriate methods and shall 
ensure that the data is made available in a manner that--
          (1) does not provide identifying information regarding an 
        individual or entity; and
          (2) protects proprietary information.

SEC. 312. ORGANIZATION DESIGNATION AUTHORIZATIONS.

  (a) In General.--Chapter 447 of title 49, United States Code, is 
amended by adding at the end the following:

``Sec. 44736. Organization designation authorizations

  ``(a) Delegations of Functions.--
          ``(1) In general.--Except as provided in paragraph (3), when 
        overseeing an ODA holder, the Administrator of the FAA shall--
                  ``(A) require, based on an application submitted by 
                the ODA holder and approved by the Administrator (or 
                the Administrator's designee), a procedures manual that 
                addresses all procedures and limitations regarding the 
                functions to be performed by the ODA holder;
                  ``(B) delegate fully to the ODA holder each of the 
                functions to be performed as specified in the 
                procedures manual, unless the Administrator determines, 
                after the date of the delegation and as a result of an 
                inspection or other investigation, that the public 
                interest and safety of air commerce requires a 
                limitation with respect to 1 or more of the functions; 
                and
                  ``(C) conduct regular oversight activities by 
                inspecting the ODA holder's delegated functions and 
                taking action based on validated inspection findings.
          ``(2) Duties of oda holders.--An ODA holder shall--
                  ``(A) perform each function delegated to the ODA 
                holder in accordance with the approved procedures 
                manual for the delegation;
                  ``(B) make the procedures manual available to each 
                member of the appropriate ODA unit; and
                  ``(C) cooperate fully with oversight activities 
                conducted by the Administrator in connection with the 
                delegation.
          ``(3) Existing oda holders.--With regard to an ODA holder 
        operating under a procedures manual approved by the 
        Administrator before the date of enactment of this section, the 
        Administrator shall--
                  ``(A) at the request of the ODA holder and in an 
                expeditious manner, approve revisions to the ODA 
                holder's procedures manual;
                  ``(B) delegate fully to the ODA holder each of the 
                functions to be performed as specified in the 
                procedures manual, unless the Administrator determines, 
                after the date of the delegation and as a result of an 
                inspection or other investigation, that the public 
                interest and safety of air commerce requires a 
                limitation with respect to one or more of the 
                functions; and
                  ``(C) conduct regular oversight activities by 
                inspecting the ODA holder delegated functions and 
                taking action based on validated inspection findings.
  ``(b) ODA Office.--
          ``(1) Establishment.--Not later than 90 days after the date 
        of enactment of this section, the Administrator of the FAA 
        shall identify, within the FAA Office of Aviation Safety, a 
        centralized policy office to be known as the Organization 
        Designation Authorization Office or the ODA Office.
          ``(2) Purpose.--The purpose of the ODA Office shall be to 
        oversee and ensure the consistency of the FAA's audit functions 
        under the ODA program across the FAA.
          ``(3) Functions.--The ODA Office shall--
                  ``(A) improve performance and ensure full utilization 
                of the authorities delegated under the ODA program;
                  ``(B) create a more consistent approach to audit 
                priorities, procedures, and training under the ODA 
                program;
                  ``(C) review, in a timely fashion, a random sample of 
                limitations on delegated authorities under the ODA 
                program to determine if the limitations are 
                appropriate;
                  ``(D) ensure national consistency in the 
                interpretation and application of the requirements of 
                the ODA program, including any limitations, and in the 
                performance of the ODA program; and
                  ``(E) at the request of an ODA holder, review and 
                approve new limitations to ODA functions.
  ``(c) Definitions.--In this section, the following definitions apply:
          ``(1) FAA.--The term `FAA' means the Federal Aviation 
        Administration.
          ``(2) ODA holder.--The term `ODA holder' means an entity 
        authorized to perform functions pursuant to a delegation made 
        by the Administrator of the FAA under section 44702(d).
          ``(3) ODA unit.--The term ``ODA unit'' means a group of 2 or 
        more individuals who perform, under the supervision of an ODA 
        holder, authorized functions under an ODA.
          ``(4) Organization.--The term ``organization'' means a firm, 
        partnership, corporation, company, association, joint-stock 
        association, or governmental entity.
          ``(5) Organization designation authorization; oda.--The term 
        `Organization Designation Authorization' or `ODA' means an 
        authorization by the FAA under section 44702(d) for an 
        organization comprised of 1 or more ODA units to perform 
        approved functions on behalf of the FAA.''.
  (b) Clerical Amendment.--The analysis for chapter 447 of title 49, 
United States Code, is amended by adding at the end the following:

``44736. Organization designation authorizations.''.

SEC. 313. ODA REVIEW.

  (a) Establishment of Expert Review Panel.--
          (1) Expert panel.--Not later than 60 days after the date of 
        enactment of this Act, the Administrator of the FAA shall 
        convene a multidisciplinary expert review panel (in this 
        section referred to as the ``Panel'').
          (2) Composition of panel.--
                  (A) Appointment of members.--The Panel shall be 
                composed of not more than 20 members appointed by the 
                Administrator.
                  (B) Qualifications.--The members appointed to the 
                Panel shall--
                          (i) each have a minimum of 5 years of 
                        experience in processes and procedures under 
                        the ODA program; and
                          (ii) represent, at a minimum, ODA holders, 
                        aviation manufacturers, safety experts, and FAA 
                        labor organizations, including labor 
                        representatives of FAA aviation safety 
                        inspectors and aviation safety engineers.
  (b) Survey.--The Panel shall conduct a survey of ODA holders and ODA 
program applicants to document and assess FAA certification and 
oversight activities, including use of the ODA program and the 
timeliness and efficiency of the certification process.
  (c) Assessment and Recommendations.--The Panel shall assess and make 
recommendations concerning--
          (1) the FAA's processes and procedures under the ODA program 
        and whether the processes and procedures function as intended;
          (2) the best practices of and lessons learned by ODA holders 
        and individuals who provide oversight of ODA holders;
          (3) performance incentive policies related to the ODA program 
        for FAA personnel;
          (4) training activities related to the ODA program for FAA 
        personnel and ODA holders;
          (5) the impact, if any, that oversight of the ODA program has 
        on FAA resources and the FAA's ability to process applications 
        for certifications outside of the ODA program; and
          (6) the results of the survey conducted under subsection (b).
  (d) Report.--Not later than 180 days after the date the Panel is 
convened under subsection (a), the Panel shall submit to the 
Administrator, the Safety Oversight and Certification Advisory 
Committee, the Committee on Transportation and Infrastructure of the 
House of Representatives, and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the findings and 
recommendations of the Panel.
  (e) Definitions.--The definitions contained in section 44736 of title 
49, United States Code, as added by this Act, apply to this section.
  (f) Applicable Law.--Public Law 92-463 shall not apply to the Panel.
  (g) Sunset.--The Panel shall terminate on the date of submission of 
the report under subsection (d), or on the date that is 1 year after 
the Panel is convened under subsection (a), whichever occurs first.

SEC. 314. TYPE CERTIFICATION RESOLUTION PROCESS.

  (a) In General.--Section 44704(a) of title 49, United States Code, is 
amended by adding at the end the following:
          ``(6) Type certification resolution process.--
                  ``(A) In general.--Not later than 15 months after the 
                date of enactment of this paragraph, the Administrator 
                shall establish an effective, timely, and milestone-
                based issue resolution process for type certification 
                activities under this subsection.
                  ``(B) Process requirements.--The resolution process 
                shall provide for--
                          ``(i) resolution of technical issues at pre-
                        established stages of the certification 
                        process, as agreed to by the Administrator and 
                        the type certificate applicant;
                          ``(ii) automatic elevation to appropriate 
                        management personnel of the Federal Aviation 
                        Administration and the type certificate 
                        applicant of any major certification process 
                        milestone that is not completed or resolved 
                        within a specific period of time agreed to by 
                        the Administrator and the type certificate 
                        applicant; and
                          ``(iii) resolution of a major certification 
                        process milestone elevated pursuant to clause 
                        (ii) within a specific period of time agreed to 
                        by the Administrator and the type certificate 
                        applicant.
                  ``(C) Major certification process milestone 
                defined.--In this paragraph, the term `major 
                certification process milestone' means a milestone 
                related to a type certification basis, type 
                certification plan, type inspection authorization, 
                issue paper, or other major type certification activity 
                agreed to by the Administrator and the type certificate 
                applicant.''.
  (b) Technical Amendment.--Section 44704 of title 49, United States 
Code, is amended in the section heading by striking ``airworthiness 
certificates,,'' and inserting ``airworthiness certificates,''.

SEC. 315. SAFETY ENHANCING EQUIPMENT AND SYSTEMS FOR SMALL GENERAL 
                    AVIATION AIRPLANES.

  (a) Policy.--Not later than 180 days after the date of enactment of 
this Act, the Administrator of the FAA shall establish and begin 
implementation of a risk-based policy that streamlines the installation 
of safety enhancing equipment and systems for small general aviation 
airplanes in a manner that reduces regulatory delays and significantly 
improves safety.
  (b) Inclusion of Certain Equipment and Systems.--The safety enhancing 
equipment and systems for small general aviation airplanes referred to 
in subsection (a) shall include, at a minimum, the replacement or 
retrofit of primary flight displays, auto pilots, engine monitors, and 
navigation equipment.
  (c) Collaboration.--In carrying out this section, the Administrator 
shall collaborate with general aviation operators, general aviation 
manufacturers, and appropriate FAA labor groups, including 
representatives of FAA aviation safety inspectors and aviation safety 
engineers certified under section 7111 of title 5, United States Code.
  (d) Small General Aviation Airplane Defined.--In this section, the 
term ``small general aviation airplane'' means an airplane that--
          (1) is certified to the standards of part 23 of title 14, 
        Code of Federal Regulations;
          (2) has a seating capacity of fewer than 9 passengers; and
          (3) is not used in scheduled passenger-carrying operations 
        under part 121 or 135 of title 14, Code of Federal Regulations.

SEC. 316. REVIEW OF CERTIFICATION PROCESS FOR SMALL GENERAL AVIATION 
                    AIRPLANES.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Inspector General of the Department of Transportation 
shall initiate a review of the Federal Aviation Administration's 
implementation of the final rule titled ``Revision of Airworthiness 
Standards for Normal, Utility, Acrobatic, and Commuter Category 
Airplanes'' (81 Fed. Reg. 96572).
  (b) Considerations.--In carrying out the review, the Inspector 
General shall assess--
          (1) how the rule puts into practice the Administration's 
        efforts to implement performance and risk-based safety 
        standards;
          (2) whether the Administration's implementation of the rule 
        has improved safety and reduced the regulatory cost burden for 
        the Administration and the aviation industry; and
          (3) if there are lessons learned from, and best practices 
        developed as a result of, the rule that could be applied to 
        airworthiness standards for other categories of aircraft.
  (c) Report.--Not later than 180 days after the date of initiation of 
the review, the Inspector General shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report on the results of the review, including findings and 
recommendations.

                  Subtitle C--Flight Standards Reform

SEC. 331. FLIGHT STANDARDS PERFORMANCE OBJECTIVES AND METRICS.

  (a) In General.--Not later than 120 days after the date on which the 
Safety Oversight and Certification Advisory Committee is established 
under section 302, the Administrator of the FAA shall establish 
performance objectives and apply and track metrics for the FAA and the 
aviation industry relating to flight standards activities in accordance 
with this section.
  (b) Collaboration.--The Administrator shall carry out this section in 
collaboration with the Safety Oversight and Certification Advisory 
Committee.
  (c) Performance Objectives.--In carrying out subsection (a), the 
Administrator shall establish performance objectives for the FAA and 
the aviation industry to ensure that, with respect to flight standards 
activities, progress is made toward, at a minimum--
          (1) eliminating delays with respect to such activities;
          (2) increasing accountability for both FAA and industry 
        entities;
          (3) achieving full utilization of FAA delegation and 
        designation authorities;
          (4) fully implementing risk management principles and a 
        systems safety approach;
          (5) reducing duplication of effort;
          (6) eliminating inconsistent regulatory interpretations and 
        inconsistent enforcement activities;
          (7) improving and providing greater opportunities for 
        training, including recurrent training, in auditing and a 
        systems safety approach to oversight;
          (8) developing and allowing utilization of a single master 
        source for guidance;
          (9) providing and utilizing a streamlined appeal process for 
        the resolution of regulatory interpretation questions;
          (10) maintaining and improving safety; and
          (11) increasing transparency.
  (d) Metrics.--In carrying out subsection (a), the Administrator shall 
apply and track performance metrics for the FAA and the regulated 
aviation industry established by the Safety Oversight and Certification 
Advisory Committee.
  (e) Data Generation.--
          (1) Baselines.--Not later than 1 year after the date on which 
        the Safety Oversight and Certification Advisory Committee 
        establishes initial performance metrics for the FAA and the 
        regulated aviation industry under section 302, the 
        Administrator shall generate initial data with respect to each 
        of the metrics applied and tracked under this section.
          (2) Measuring progress toward goals.--The Administrator shall 
        use the metrics applied and tracked under this section to 
        generate data on an ongoing basis and to measure progress 
        toward the achievement of national goals established by the 
        Safety Oversight and Certification Advisory Committee.
  (f) Publication.--The Administrator shall make data generated using 
the metrics applied and tracked under this section available to the 
public in a searchable, sortable, and downloadable format through the 
internet website of the FAA and other appropriate methods and shall 
ensure that the data is made available in a manner that--
          (1) does not provide identifying information regarding an 
        individual or entity; and
          (2) protects proprietary information.

SEC. 332. FAA TASK FORCE ON FLIGHT STANDARDS REFORM.

  (a) Establishment.--Not later than 90 days after the date of 
enactment of this Act, the Administrator of the FAA shall establish the 
FAA Task Force on Flight Standards Reform (in this section referred to 
as the ``Task Force'').
  (b) Membership.--
          (1) Appointment.--The membership of the Task Force shall be 
        appointed by the Administrator.
          (2) Number.--The Task Force shall be composed of not more 
        than 20 members.
          (3) Representation requirements.--The membership of the Task 
        Force shall include representatives, with knowledge of flight 
        standards regulatory processes and requirements, of--
                  (A) air carriers;
                  (B) general aviation;
                  (C) business aviation;
                  (D) repair stations;
                  (E) unmanned aircraft systems operators;
                  (F) flight schools;
                  (G) labor unions, including those representing FAA 
                aviation safety inspectors; and
                  (H) aviation safety experts.
  (c) Duties.--The duties of the Task Force shall include, at a 
minimum, identifying best practices and providing recommendations, for 
current and anticipated budgetary environments, with respect to--
          (1) simplifying and streamlining flight standards regulatory 
        processes;
          (2) reorganizing Flight Standards Services to establish an 
        entity organized by function rather than geographic region, if 
        appropriate;
          (3) FAA aviation safety inspector training opportunities;
          (4) FAA aviation safety inspector standards and performance; 
        and
          (5) achieving, across the FAA, consistent--
                  (A) regulatory interpretations; and
                  (B) application of oversight activities.
  (d) Report.--Not later than 1 year after the date of enactment of 
this Act, the Task Force shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report detailing--
          (1) the best practices identified and recommendations 
        provided by the Task Force under subsection (c); and
          (2) any recommendations of the Task Force for additional 
        regulatory action or cost-effective legislative action.
  (e) Applicable Law.--Public Law 92-463 shall not apply to the Task 
Force.
  (f) Termination.--The Task Force shall terminate on the earlier of--
          (1) the date on which the Task Force submits the report 
        required under subsection (d); or
          (2) the date that is 18 months after the date on which the 
        Task Force is established under subsection (a).

SEC. 333. CENTRALIZED SAFETY GUIDANCE DATABASE.

  (a) Establishment.--Not later than 1 year after the date of enactment 
of this Act, the Administrator of the FAA shall establish a centralized 
safety guidance database that will--
          (1) encompass all of the regulatory guidance documents of the 
        FAA Office of Aviation Safety;
          (2) contain, for each such guidance document, a link to the 
        Code of Federal Regulations provision to which the document 
        relates; and
          (3) be publicly available in a manner that--
                  (A) does not provide identifying information 
                regarding an individual or entity; and
                  (B) protects proprietary information.
  (b) Data Entry Timing.--
          (1) Existing documents.--Not later than 14 months after the 
        date of enactment of this Act, the Administrator shall begin 
        entering into the database established under subsection (a) all 
        of the regulatory guidance documents of the Office of Aviation 
        Safety that are in effect and were issued before the date on 
        which the Administrator begins such entry process.
          (2) New documents and changes.--On and after the date on 
        which the Administrator begins the document entry process under 
        paragraph (1), the Administrator shall ensure that all new 
        regulatory guidance documents of the Office of Aviation Safety 
        and any changes to existing documents are included in the 
        database established under subsection (a).
  (c) Consultation Requirement.--In establishing the database under 
subsection (a), the Administrator shall consult and collaborate with 
appropriate stakeholders, including labor organizations (including 
those representing aviation workers and FAA aviation safety inspectors) 
and industry stakeholders.
  (d) Regulatory Guidance Documents Defined.--In this section, the term 
``regulatory guidance documents'' means all forms of written 
information issued by the FAA that an individual or entity may use to 
interpret or apply FAA regulations and requirements, including 
information an individual or entity may use to determine acceptable 
means of compliance with such regulations and requirements.

SEC. 334. REGULATORY CONSISTENCY COMMUNICATIONS BOARD.

  (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the FAA shall establish a 
Regulatory Consistency Communications Board (in this section referred 
to as the ``Board'').
  (b) Consultation Requirement.--In establishing the Board, the 
Administrator shall consult and collaborate with appropriate 
stakeholders, including FAA labor organizations (including labor 
organizations representing FAA aviation safety inspectors) and industry 
stakeholders.
  (c) Membership.--The Board shall be composed of FAA representatives, 
appointed by the Administrator, from--
          (1) the Flight Standards Service;
          (2) the Aircraft Certification Service; and
          (3) the Office of the Chief Counsel.
  (d) Functions.--The Board shall carry out the following functions:
          (1) Establish, at a minimum, processes by which--
                  (A) FAA personnel and regulated entities may submit 
                anonymous regulatory interpretation questions without 
                fear of retaliation; and
                  (B) FAA personnel may submit written questions, and 
                receive written responses, as to whether a previous 
                approval or regulatory interpretation issued by FAA 
                personnel in another office or region is correct or 
                incorrect.
          (2) Meet on a regular basis to discuss and resolve questions 
        submitted pursuant to paragraph (1) and the appropriate 
        application of regulations and policy with respect to each 
        question.
          (3) Provide to an individual or entity that submitted a 
        question pursuant to paragraph (1) a timely response to the 
        question.
          (4) Establish a process to make resolutions of common 
        regulatory interpretation questions publicly available to FAA 
        personnel and regulated entities without providing any 
        identifying data of the individuals or entities that submitted 
        the questions and in a manner that protects any proprietary 
        information.
          (5) Ensure the incorporation of resolutions of questions 
        submitted pursuant to paragraph (1) into regulatory guidance 
        documents.
  (e) Performance Metrics, Timelines, and Goals.--Not later than 180 
days after the date on which the Safety Oversight and Certification 
Advisory Committee establishes performance metrics for the FAA and the 
regulated aviation industry under section 302, the Administrator, in 
collaboration with the Advisory Committee, shall--
          (1) establish performance metrics, timelines, and goals to 
        measure the progress of the Board in resolving regulatory 
        interpretation questions submitted pursuant to subsection 
        (d)(1); and
          (2) implement a process for tracking the progress of the 
        Board in meeting the metrics, timelines, and goals established 
        under paragraph (1).

                      Subtitle D--Safety Workforce

SEC. 341. SAFETY WORKFORCE TRAINING STRATEGY.

  (a) Safety Workforce Training Strategy.--Not later than 60 days after 
the date of enactment of this Act, the Administrator of the FAA shall 
establish a safety workforce training strategy that--
          (1) allows employees participating in organization management 
        teams or conducting ODA program audits to complete, in a timely 
        fashion, appropriate training, including recurrent training, in 
        auditing and a systems safety approach to oversight;
          (2) seeks knowledge-sharing opportunities between the FAA and 
        the aviation industry regarding new equipment and systems, best 
        practices, and other areas of interest;
          (3) functions within the current and anticipated budgetary 
        environments; and
          (4) includes milestones and metrics for meeting the 
        requirements of paragraphs (1), (2), and (3).
  (b) Report.--Not later than 270 days after the date of establishment 
of the strategy required under subsection (a), the Administrator shall 
submit to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the implementation of the 
strategy and progress in meeting any milestones and metrics included in 
the strategy.
  (c) Definitions.--In this section, the following definitions apply:
          (1) ODA; oda holder.--The terms ``ODA'' and ``ODA holder'' 
        have the meanings given those terms in section 44736 of title 
        49, United States Code, as added by this Act.
          (2) Organization management team.--The term ``organization 
        management team'' means a team consisting of FAA aviation 
        safety engineers, flight test pilots, and aviation safety 
        inspectors overseeing an ODA holder and its certification 
        activity.

SEC. 342. WORKFORCE REVIEW.

  (a) Workforce Review.--Not later than 90 days after the date of 
enactment of this Act, the Comptroller General of the United States 
shall conduct a review to assess the workforce and training needs of 
the FAA Office of Aviation Safety in the anticipated budgetary 
environment.
  (b) Contents.--The review required under subsection (a) shall 
include--
          (1) a review of current aviation safety inspector and 
        aviation safety engineer hiring, training, and recurrent 
        training requirements;
          (2) an analysis of the skills and qualifications required of 
        aviation safety inspectors and aviation safety engineers for 
        successful performance in the current and future projected 
        aviation safety regulatory environment, including the need for 
        a systems engineering discipline within the FAA to guide the 
        engineering of complex systems, with an emphasis on auditing 
        designated authorities;
          (3) a review of current performance incentive policies of the 
        FAA, as applied to the Office of Aviation Safety, including 
        awards for performance;
          (4) an analysis of ways the FAA can work with industry and 
        labor, including labor groups representing FAA aviation safety 
        inspectors and aviation safety engineers, to establish 
        knowledge-sharing opportunities between the FAA and the 
        aviation industry regarding new equipment and systems, best 
        practices, and other areas of interest; and
          (5) recommendations on the most effective qualifications, 
        training programs (including e-learning training), and 
        performance incentive approaches to address the needs of the 
        future projected aviation safety regulatory system in the 
        anticipated budgetary environment.
  (c) Report.--Not later than 270 days after the date of enactment of 
this Act, the Comptroller General shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report on the results of the review required under subsection (a).

                   Subtitle E--International Aviation

SEC. 351. PROMOTION OF UNITED STATES AEROSPACE STANDARDS, PRODUCTS, AND 
                    SERVICES ABROAD.

  Section 40104 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(d) Promotion of United States Aerospace Standards, Products, and 
Services Abroad.--The Administrator shall take appropriate actions to--
          ``(1) promote United States aerospace safety standards 
        abroad;
          ``(2) facilitate and vigorously defend approvals of United 
        States aerospace products and services abroad;
          ``(3) with respect to bilateral partners, utilize bilateral 
        safety agreements and other mechanisms to improve validation of 
        United States type certificated aeronautical products and 
        appliances and enhance mutual acceptance in order to eliminate 
        redundancies and unnecessary costs; and
          ``(4) with respect to foreign safety authorities, streamline 
        validation and coordination processes.''.

SEC. 352. BILATERAL EXCHANGES OF SAFETY OVERSIGHT RESPONSIBILITIES.

  Section 44701(e) of title 49, United States Code, is amended by 
adding at the end the following:
          ``(5) Foreign airworthiness directives.--
                  ``(A) Acceptance.--The Administrator may accept an 
                airworthiness directive issued by an aeronautical 
                safety authority of a foreign country, and leverage 
                that authority's regulatory process, if--
                          ``(i) the country is the state of design for 
                        the product that is the subject of the 
                        airworthiness directive;
                          ``(ii) the United States has a bilateral 
                        safety agreement relating to aircraft 
                        certification with the country;
                          ``(iii) as part of the bilateral safety 
                        agreement with the country, the Administrator 
                        has determined that such aeronautical safety 
                        authority has a certification system relating 
                        to safety that produces a level of safety 
                        equivalent to the level produced by the system 
                        of the Federal Aviation Administration;
                          ``(iv) the aeronautical safety authority of 
                        the country utilizes an open and transparent 
                        notice and comment process in the issuance of 
                        airworthiness directives; and
                          ``(v) the airworthiness directive is 
                        necessary to provide for the safe operation of 
                        the aircraft subject to the directive.
                  ``(B) Alternative approval process.--Notwithstanding 
                subparagraph (A), the Administrator may issue a Federal 
                Aviation Administration airworthiness directive instead 
                of accepting an airworthiness directive otherwise 
                eligible for acceptance under such subparagraph, if the 
                Administrator determines that such issuance is 
                necessary for safety or operational reasons due to the 
                complexity or unique features of the Federal Aviation 
                Administration airworthiness directive or the United 
                States aviation system.
                  ``(C) Alternative means of compliance.--The 
                Administrator may--
                          ``(i) accept an alternative means of 
                        compliance, with respect to an airworthiness 
                        directive accepted under subparagraph (A), that 
                        was approved by the aeronautical safety 
                        authority of the foreign country that issued 
                        the airworthiness directive; or
                          ``(ii) notwithstanding subparagraph (A), and 
                        at the request of any person affected by an 
                        airworthiness directive accepted under such 
                        subparagraph, approve an alternative means of 
                        compliance with respect to the airworthiness 
                        directive.
                  ``(D) Limitation.--The Administrator may not accept 
                an airworthiness directive issued by an aeronautical 
                safety authority of a foreign country if the 
                airworthiness directive addresses matters other than 
                those involving the safe operation of an aircraft.''.

SEC. 353. FAA LEADERSHIP ABROAD.

  (a) In General.--To promote United States aerospace safety standards, 
reduce redundant regulatory activity, and facilitate acceptance of FAA 
design and production approvals abroad, the Administrator of the FAA 
shall--
          (1) attain greater expertise in issues related to dispute 
        resolution, intellectual property, and export control laws to 
        better support FAA certification and other aerospace regulatory 
        activities abroad;
          (2) work with United States companies to more accurately 
        track the amount of time it takes foreign authorities, 
        including bilateral partners, to validate United States type 
        certificated aeronautical products;
          (3) provide assistance to United States companies that have 
        experienced significantly long foreign validation wait times;
          (4) work with foreign authorities, including bilateral 
        partners, to collect and analyze data to determine the 
        timeliness of the acceptance and validation of FAA design and 
        production approvals by foreign authorities and the acceptance 
        and validation of foreign-certified products by the FAA;
          (5) establish appropriate benchmarks and metrics to measure 
        the success of bilateral aviation safety agreements and to 
        reduce the validation time for United States type certificated 
        aeronautical products abroad; and
          (6) work with foreign authorities, including bilateral 
        partners, to improve the timeliness of the acceptance and 
        validation of FAA design and production approvals by foreign 
        authorities and the acceptance and validation of foreign-
        certified products by the FAA.
  (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Administrator of the FAA shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report that--
          (1) describes the FAA's strategic plan for international 
        engagement;
          (2) describes the structure and responsibilities of all FAA 
        offices that have international responsibilities, including the 
        Aircraft Certification Office, and all the activities conducted 
        by those offices related to certification and production;
          (3) describes current and forecasted staffing and travel 
        needs for the FAA's international engagement activities, 
        including the needs of the Aircraft Certification Office in the 
        current and forecasted budgetary environment;
          (4) provides recommendations, if appropriate, to improve the 
        existing structure and personnel and travel policies supporting 
        the FAA's international engagement activities, including the 
        activities of the Aviation Certification Office, to better 
        support the growth of United States aerospace exports; and
          (5) identifies cost-effective policy initiatives, regulatory 
        initiatives, or legislative initiatives needed to improve and 
        enhance the timely acceptance of United States aerospace 
        products abroad.
  (c) International Travel.--The Administrator of the FAA, or the 
Administrator's designee, may authorize international travel for any 
FAA employee, without the approval of any other person or entity, if 
the Administrator determines that the travel is necessary--
          (1) to promote United States aerospace safety standards; or
          (2) to support expedited acceptance of FAA design and 
        production approvals.

SEC. 354. REGISTRATION, CERTIFICATION, AND RELATED FEES.

  Section 45305 of title 49, United States Code, is amended--
          (1) in subsection (a) by striking ``Subject to subsection 
        (b)'' and inserting ``Subject to subsection (c)'';
          (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
          (3) by inserting after subsection (a) the following:
  ``(b) Certification Services.--Subject to subsection (c), and 
notwithstanding section 45301(a), the Administrator may establish and 
collect a fee from a foreign government or entity for services related 
to certification, regardless of where the services are provided, if the 
fee--
          ``(1) is established and collected in a manner consistent 
        with aviation safety agreements; and
          ``(2) does not exceed the estimated costs of the services.''.

                            TITLE IV--SAFETY

                     Subtitle A--General Provisions

SEC. 401. FAA TECHNICAL TRAINING.

  (a) E-Learning Training Pilot Program.--Not later than 90 days after 
the date of enactment of this Act, the Administrator of the Federal 
Aviation Administration, in collaboration with the exclusive bargaining 
representatives of covered FAA personnel, shall establish an e-learning 
training pilot program in accordance with the requirements of this 
section.
  (b) Curriculum.--The pilot program shall--
          (1) include a recurrent training curriculum for covered FAA 
        personnel to ensure that the personnel receive instruction on 
        the latest aviation technologies, processes, and procedures;
          (2) focus on providing specialized technical training for 
        covered FAA personnel, as determined necessary by the 
        Administrator;
          (3) include training courses on applicable regulations of the 
        Federal Aviation Administration; and
          (4) consider the efficacy of instructor-led online training.
  (c) Pilot Program Termination.--The pilot program shall terminate 1 
year after the date of establishment of the pilot program.
  (d) E-Learning Training Program.--Upon termination of the pilot 
program, the Administrator shall establish an e-learning training 
program that incorporates lessons learned for covered FAA personnel as 
a result of the pilot program.
  (e) Definitions.--In this section, the following definitions apply:
          (1) Covered faa personnel.--The term ``covered FAA 
        personnel'' means airway transportation systems specialists and 
        aviation safety inspectors of the Federal Aviation 
        Administration.
          (2) E-learning training.--The term ``e-learning training'' 
        means learning utilizing electronic technologies to access 
        educational curriculum outside of a traditional classroom.

SEC. 402. SAFETY CRITICAL STAFFING.

  (a) Update of FAA's Safety Critical Staffing Model.--Not later than 
270 days after the date of enactment of this Act, and at least 2 years 
before the date of transfer, the Administrator of the Federal Aviation 
Administration shall update the safety critical staffing model of the 
Administration to determine the number of aviation safety inspectors 
that will be needed to fulfill the safety oversight mission of the 
Administration before and after the date of transfer, including safety 
oversight of the American Air Navigation Services Corporation.
  (b) Audit by DOT Inspector General.--
          (1) In general.--Not later than 90 days after the date on 
        which the Administrator has updated the safety critical 
        staffing model under subsection (a), the Inspector General of 
        the Department of Transportation shall conduct an audit of the 
        staffing model.
          (2) Contents.--The audit shall include, at a minimum--
                  (A) a review of the assumptions and methodologies 
                used in devising and implementing the staffing model to 
                assess the adequacy of the staffing model in predicting 
                the number of aviation safety inspectors needed--
                          (i) to properly fulfill the mission of the 
                        Administration before and after the date of 
                        transfer;
                          (ii) to meet the future growth of the 
                        aviation industry; and
                          (iii) to provide proper oversight of air 
                        traffic services after the date of transfer; 
                        and
                  (B) a determination on whether the staffing model 
                takes into account the Administration's authority to 
                fully utilize designees before and after the date of 
                transfer.
          (3) Report on audit.--
                  (A) Report to secretary.--Not later than 30 days 
                after the date of completion of the audit, the 
                Inspector General shall submit to the Secretary a 
                report on the results of the audit.
                  (B) Report to congress.--Not later than 60 days after 
                the date of receipt of the report, the Secretary shall 
                submit to the Committee on Transportation and 
                Infrastructure of the House of Representatives and the 
                Committee on Commerce, Science, and Transportation of 
                the Senate a copy of the report, together with, if 
                appropriate, a description of any actions taken or to 
                be taken to address the results of the audit.
  (c) Date of Transfer Defined.--In this section, the term ``date of 
transfer'' has the meaning given that term in section 90101(a) of title 
49, United States Code, as added by this Act.

SEC. 403. INTERNATIONAL EFFORTS REGARDING TRACKING OF CIVIL AIRCRAFT.

  The Administrator of the Federal Aviation Administration shall 
exercise leadership on creating a global approach to improving aircraft 
tracking by working with--
          (1) foreign counterparts of the Administrator in the 
        International Civil Aviation Organization and its subsidiary 
        organizations;
          (2) other international organizations and fora; and
          (3) the private sector.

SEC. 404. AIRCRAFT DATA ACCESS AND RETRIEVAL SYSTEMS.

  (a) Assessment.--Not later than 90 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall initiate an assessment of aircraft data access and retrieval 
systems for part 121 air carrier aircraft that are used in extended 
overwater operations to--
          (1) determine if the systems provide improved access and 
        retrieval of aircraft data and cockpit voice recordings in the 
        event of an aircraft accident; and
          (2) assess the cost effectiveness of each system assessed.
  (b) Systems To Be Examined.--The systems to be examined under this 
section shall include, at a minimum--
          (1) automatic deployable flight recorders;
          (2) emergency locator transmitters; and
          (3) satellite-based solutions.
  (c) Report.--Not later than 1 year after the date of initiation of 
the assessment, the Administrator shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report on the results of the assessment.
  (d) Part 121 Air Carrier Defined.--In this section, the term ``part 
121 air carrier'' means an air carrier that holds a certificate issued 
under part 121 of title 14, Code of Federal Regulations.

SEC. 405. ADVANCED COCKPIT DISPLAYS.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall initiate a review of heads-up display systems, heads-down display 
systems employing synthetic vision systems, and enhanced vision systems 
(in this section referred to as ``HUD systems'', ``SVS'', and ``EVS'', 
respectively).
  (b) Contents.--The review shall--
          (1) evaluate the impacts of single- and dual-installed HUD 
        systems, SVS, and EVS on the safety and efficiency of aircraft 
        operations within the national airspace system; and
          (2) review a sufficient quantity of commercial aviation 
        accidents or incidents in order to evaluate if HUD systems, 
        SVS, and EVS would have produced a better outcome in that 
        accident or incident.
  (c) Consultation.--In conducting the review, the Administrator shall 
consult with aviation manufacturers, representatives of pilot groups, 
aviation safety organizations, and any government agencies the 
Administrator considers appropriate.
  (d) Report.--Not later than 1 year after the date of enactment of 
this Act, the Administrator shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report containing the results of the review, the actions the 
Administrator plans to take with respect to the systems reviewed, and 
the associated timeline for such actions.

SEC. 406. MARKING OF TOWERS.

  Section 2110 of the FAA Extension, Safety, and Security Act of 2016 
(49 U.S.C. 44718 note) is amended--
          (1) by striking subsections (a) through (c) and inserting the 
        following:
  ``(a) Application.--
          ``(1) In general.--Except as provided by paragraph (2), not 
        later than 1 year after the date of enactment of the 21st 
        Century AIRR Act or the availability of the database developed 
        by the Administrator of the Federal Aviation Administration 
        pursuant to subsection (c), whichever is later, all covered 
        towers shall be either--
                  ``(A) clearly marked consistent with applicable 
                guidance in the advisory circular of the Federal 
                Aviation Administration issued December 4, 2015 (AC 70/
                7460-IL); or
                  ``(B) included in the database described in 
                subsection (c).
          ``(2) Meteorological evaluation tower.--A covered tower that 
        is a meteorological evaluation tower shall be subject to the 
        requirements of paragraphs (1)(A) and (1)(B).'';
          (2) by redesignating subsections (d) and (e) as subsections 
        (b) and (c), respectively;
          (3) in subsection (b)(1)(A) (as so redesignated)--
                  (A) in clause (i)(I) by striking ``self-standing or'' 
                and inserting ``a meteorological evaluation tower or 
                tower''; and
                  (B) in clause (ii)--
                          (i) in subclause (IV) by striking ``or'' at 
                        the end;
                          (ii) in subclause (V) by striking the period 
                        at the end and inserting a semicolon; and
                          (iii) by adding at the end the following:
                                  ``(VI) is located within the right-
                                of-way of a rail carrier, including 
                                within the boundaries of a rail yard, 
                                and is used for a railroad purpose;
                                  ``(VII) is determined by the 
                                Administrator to pose no hazard to air 
                                navigation; or
                                  ``(VIII) has already mitigated any 
                                hazard to aviation safety in accordance 
                                with Federal Aviation Administration 
                                guidance or as otherwise approved by 
                                the Administrator.''; and
          (4) in subsection (c) (as so redesignated)--
                  (A) by striking paragraph (1) and inserting the 
                following:
          ``(1) develop a database that contains the location and 
        height of each covered tower that, pursuant to subsection (a), 
        the owner or operator of such tower elects not to mark, except 
        that meteorological evaluation towers shall be marked and 
        contained in the database;'';
                  (B) in paragraph (3) by striking ``and'' at the end;
                  (C) in paragraph (4) by striking the period at the 
                end and inserting a semicolon; and
                  (D) by adding at the end the following:
          ``(5) ensure that the tower information in the database is 
        de-identified and that the information only includes the 
        location and height of covered towers; and
          ``(6) make the database available for use not later than 1 
        year after the date of enactment of the 21st Century AIRR 
        Act.''.

SEC. 407. CABIN EVACUATION.

  (a) Review.--The Administrator of the Federal Aviation Administration 
shall review--
          (1) evacuation certification of transport-category aircraft 
        used in air transportation, with regard to--
                  (A) emergency conditions, including impacts into 
                water;
                  (B) crew procedures used for evacuations under actual 
                emergency conditions; and
                  (C) any relevant changes to passenger demographics 
                and legal requirements (including the Americans with 
                Disabilities Act of 1990) that affect emergency 
                evacuations; and
          (2) recent accidents and incidents where passengers evacuated 
        such aircraft.
  (b) Consultation; Review of Data.--In conducting the review, the 
Administrator shall--
          (1) consult with the National Transportation Safety Board, 
        transport-category aircraft manufacturers, air carriers, and 
        other relevant experts and Federal agencies, including groups 
        representing passengers, airline crewmembers, maintenance 
        employees, and emergency responders; and
          (2) review relevant data with respect to evacuation 
        certification of transport-category aircraft.
  (c) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall submit to the Committee 
on Transportation and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of the 
Senate a report on the results of the review and related 
recommendations, if any, including any recommendations for revisions to 
the assumptions and methods used for assessing evacuation certification 
of transport-category aircraft.

SEC. 408. ODA STAFFING AND OVERSIGHT.

  (a) Report to Congress.--Not later than 270 days after the date of 
enactment of this Act, the Administrator of the Federal Aviation 
Administration shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate a report on the 
Administration's progress with respect to--
          (1) determining what additional model inputs and labor 
        distribution codes are needed to identify ODA oversight 
        staffing needs prior to and after the date of transfer;
          (2) developing and implementing system-based evaluation 
        criteria and risk-based tools to aid ODA team members in 
        targeting their oversight activities;
          (3) developing agreements and processes for sharing resources 
        to ensure adequate oversight of ODA personnel performing 
        certification and inspection work at supplier and company 
        facilities; and
          (4) ensuring full utilization of ODA authority prior to and 
        after the date of transfer.
  (b) Definitions.--In this section, the following definitions apply:
          (1) Date of transfer.--The term ``date of transfer'' has the 
        meaning given that term in section 90101(a) of title 49, United 
        States Code, as added by this Act.
          (2) ODA.--the term ``ODA'' has the meaning given that term in 
        section 44736 of title 49, United States Code, as added by this 
        Act.

SEC. 409. FUNDING FOR ADDITIONAL SAFETY NEEDS.

  Section 44704 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(f) Funding for Additional Safety Needs.--
          ``(1) Acceptance of applicant-provided funds.--
        Notwithstanding any other provision of law, the Administrator 
        may accept funds from an applicant for a certificate under this 
        section to hire additional staff or obtain the services of 
        consultants and experts to facilitate the timely processing, 
        review, and issuance of certificates under this section.
          ``(2) Rules of construction.--
                  ``(A) In general.--Nothing in this section may be 
                construed as permitting the Administrator to grant 
                priority or afford any preference to an applicant 
                providing funds under paragraph (1).
                  ``(B) Policies and procedures.--The Administrator 
                shall implement such policies and procedures as may be 
                required to ensure that the acceptance of funds under 
                paragraph (1) does not prejudice the Administrator in 
                the issuance of any certificate to an applicant.
          ``(3) Receipts credited as offsetting collections.--
        Notwithstanding section 3302 of title 31, any funds accepted 
        under this subsection--
                  ``(A) shall be credited as offsetting collections to 
                the account that finances the activities and services 
                for which the funds are accepted;
                  ``(B) shall be available for expenditure only to pay 
                the costs of activities and services for which the 
                funds are accepted; and
                  ``(C) shall remain available until expended.''.

SEC. 410. FUNDING FOR ADDITIONAL FAA LICENSING NEEDS.

  (a) In General.--Chapter 509 of title 51, United States Code, is 
amended by adding at the end the following:

``Sec. 50924. Funding to facilitate FAA licensing

  ``(a) In General.--Notwithstanding any other provision of law, the 
Secretary of Transportation may accept funds from a person applying for 
a license or permit under this chapter to hire additional staff or 
obtain the services of consultants and experts--
          ``(1) to facilitate the timely processing, review, and 
        issuance of licenses or permits issued under this chapter;
          ``(2) to conduct environmental activities, studies, or 
        reviews associated with such licenses or permits; or
          ``(3) to conduct additional activities associated with or 
        necessitated by such licenses or permits, including pre-
        application consultation, hazard area determination, or on-site 
        inspection.
  ``(b) Rules of Construction.--
          ``(1) In general.--Nothing in this section may be construed 
        as permitting the Secretary to grant priority or afford any 
        preference to an applicant providing funds under subsection 
        (a).
          ``(2) Policies and procedures.--The Secretary shall implement 
        such policies and procedures as may be required to ensure that 
        the acceptance of funds under subsection (a) does not prejudice 
        the Secretary in the issuance of any license or permit to an 
        applicant.
  ``(c) Receipts Credited as Offsetting Collections.--Notwithstanding 
section 3302 of title 31, any funds accepted under this section--
          ``(1) shall be credited as offsetting collections to the 
        account that finances the activities and services for which the 
        funds are accepted;
          ``(2) shall be available for expenditure only to pay the 
        costs of activities and services for which the funds are 
        accepted; and
          ``(3) shall remain available until expended.''.
  (b) Clerical Amendment.--The analysis for chapter 509 of title 51, 
United States Code, is amended by adding at the end the following:

``50924. Funding to facilitate FAA licensing.''.

SEC. 411. EMERGENCY MEDICAL EQUIPMENT ON PASSENGER AIRCRAFT.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Administrator of the Federal Aviation Administration 
shall evaluate and revise, as appropriate, regulations in part 121 of 
title 14, Code of Federal Regulations, regarding emergency medical 
equipment, including the contents of first-aid kits, applicable to all 
certificate holders operating passenger aircraft under that part.
  (b) Consideration.--In carrying out subsection (a), the Administrator 
shall consider whether the minimum contents of approved emergency 
medical kits, including approved first-aid kits, include appropriate 
medications and equipment to meet the emergency medical needs of 
children.

SEC. 412. HIMS PROGRAM.

  Not later than 180 days after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall conduct a 
human intervention motivation study (HIMS) program for flight 
crewmembers employed by commercial air carriers operating in United 
States airspace.

SEC. 413. ACCEPTANCE OF VOLUNTARILY PROVIDED SAFETY INFORMATION.

  (a) In General.--There shall be a presumption that an individual's 
voluntary disclosure of an operational or maintenance issue related to 
aviation safety under an aviation safety action program meets the 
criteria for acceptance as a valid disclosure under such program.
  (b) Disclaimer Required.--Any dissemination of a disclosure that was 
submitted and accepted under an aviation safety action program pursuant 
to the presumption under subsection (a), but that has not undergone 
review by an event review committee, shall be accompanied by a 
disclaimer stating that the disclosure--
          (1) has not been reviewed by an event review committee tasked 
        with reviewing such disclosures; and
          (2) may subsequently be determined to be ineligible for 
        inclusion in the aviation safety action program.
  (c) Rejection of Disclosure.--A disclosure described under subsection 
(a) shall be rejected from an aviation safety action program if, after 
a review of the disclosure, an event review committee tasked with 
reviewing such disclosures determines that the disclosure fails to meet 
the criteria for acceptance under such program.
  (d) Aviation Safety Action Program Defined.--In this section, the 
term ``aviation safety action program'' means a program established in 
accordance with Federal Aviation Administration Advisory Circular 120-
66B, issued November 15, 2002 (including any similar successor advisory 
circular), to allow an individual to voluntarily disclose operational 
or maintenance issues related to aviation safety.

SEC. 414. FLIGHT ATTENDANT DUTY PERIOD LIMITATIONS AND REST 
                    REQUIREMENTS.

  (a) Modification of Final Rule.--
          (1) In general.--Not later than 30 days after the date of 
        enactment of this Act, the Secretary of Transportation shall 
        modify the final rule of the Federal Aviation Administration 
        published in the Federal Register on August 19, 1994 (59 Fed. 
        Reg. 42974; relating to flight attendant duty period 
        limitations and rest requirements) in accordance with the 
        requirements of this subsection.
          (2) Contents.--The final rule, as modified under paragraph 
        (1), shall ensure that--
                  (A) a flight attendant scheduled to a duty period of 
                14 hours or less is given a scheduled rest period of at 
                least 10 consecutive hours; and
                  (B) the rest period is not reduced under any 
                circumstances.
  (b) Fatigue Risk Management Plan.--
          (1) Submission of plan by part 121 air carriers.--Not later 
        than 90 days after the date of enactment of this Act, each air 
        carrier operating under part 121 of title 14, Code of Federal 
        Regulations (in this section referred to as a ``part 121 air 
        carrier''), shall submit to the Administrator of the Federal 
        Aviation Administration for review and acceptance a fatigue 
        risk management plan for the carrier's flight attendants.
          (2) Contents of plan.--A fatigue risk management plan 
        submitted by a part 121 air carrier under paragraph (1) shall 
        include the following:
                  (A) Current flight time and duty period limitations.
                  (B) A rest scheme consistent with such limitations 
                that enables the management of flight attendant 
                fatigue, including annual training to increase 
                awareness of--
                          (i) fatigue;
                          (ii) the effects of fatigue on flight 
                        attendants; and
                          (iii) fatigue countermeasures.
                  (C) Development and use of a methodology that 
                continually assesses the effectiveness of 
                implementation of the plan, including the ability of 
                the plan--
                          (i) to improve alertness; and
                          (ii) to mitigate performance errors.
          (3) Review.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall review and 
        accept or reject each fatigue risk management plan submitted 
        under this subsection. If the Administrator rejects a plan, the 
        Administrator shall provide suggested modifications for 
        resubmission of the plan.
          (4) Plan updates.--
                  (A) In general.--A part 121 air carrier shall update 
                its fatigue risk management plan under paragraph (1) 
                every 2 years and submit the update to the 
                Administrator for review and acceptance.
                  (B) Review.--Not later than 1 year after the date of 
                submission of a plan update under subparagraph (A), the 
                Administrator shall review and accept or reject the 
                update. If the Administrator rejects an update, the 
                Administrator shall provide suggested modifications for 
                resubmission of the update.
          (5) Compliance.--A part 121 air carrier shall comply with the 
        fatigue risk management plan of the air carrier that is 
        accepted by the Administrator under this subsection.
          (6) Civil penalties.--A violation of this subsection by a 
        part 121 air carrier shall be treated as a violation of chapter 
        447 of title 49, United States Code, for purposes of the 
        application of civil penalties under chapter 463 of that title.

SEC. 415. SECONDARY COCKPIT BARRIERS.

  Not later than 1 year after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall issue an 
order requiring the installation of a secondary cockpit barrier on each 
aircraft that is manufactured for delivery to a passenger air carrier 
in the United States operating under the provisions of part 121 of 
title 14, Code of Federal Regulations.

SEC. 416. AVIATION MAINTENANCE INDUSTRY TECHNICAL WORKFORCE.

  (a) Study.--The Comptroller General of the United States shall 
conduct a study on technical workers in the aviation maintenance 
industry.
  (b) Contents.--In conducting the study, the Comptroller General 
shall--
          (1) analyze the current Standard Occupational Classification 
        system with regard to the aviation profession, particularly 
        technical workers in the aviation maintenance industry;
          (2) analyze how changes to the Federal employment 
        classification of aviation maintenance industry workers might 
        affect government data on unemployment rates and wages;
          (3) analyze how changes to the Federal employment 
        classification of aviation maintenance industry workers might 
        affect projections for future aviation maintenance industry 
        workforce needs and project technical worker shortfalls;
          (4) analyze the impact of Federal regulation, including 
        Federal Aviation Administration oversight of certification, 
        testing, and education programs, on employment of technical 
        workers in the aviation maintenance industry;
          (5) develop recommendations on how Federal Aviation 
        Administration regulations and policies could be improved to 
        address aviation maintenance industry needs for technical 
        workers; and
          (6) develop recommendations for better coordinating actions 
        by government, educational institutions, and businesses to 
        support workforce growth in the aviation maintenance industry.
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report on the results of the study.
  (d) Definitions.-- In this section, the following definitions apply:
          (1) Aviation maintenance industry.--The term ``aviation 
        maintenance industry'' means repair stations certificated under 
        part 145 of title 14, Code of Federal Regulations.
          (2) Technical worker.--The term ``technical worker'' means an 
        individual authorized under part 43 of title 14, Code of 
        Federal Regulations, to maintain, rebuild, alter, or perform 
        preventive maintenance on an aircraft, airframe, aircraft 
        engine, propeller, appliance, or component part or employed by 
        an entity so authorized to perform such a function.

SEC. 417. CRITICAL AIRFIELD MARKINGS.

   Not later than 180 days after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall issue a 
request for proposal for a study that includes--
          (1) an independent, third party study to assess the 
        durability of Type III and Type I glass beads applied to 
        critical markings over a 2-year period at not fewer than 2 
        primary airports in varying weather conditions to measure the 
        retroflectivity levels of such markings on a quarterly basis; 
        and
          (2) a study at 2 other airports carried out by applying Type 
        III beads on half of the centerline and Type I beads to the 
        other half and providing for assessments from pilots through 
        surveys administered by a third party as to the visibility and 
        performance of the Type III glass beads as compared to the Type 
        I glass beads over a 1-year period.

                 Subtitle B--Unmanned Aircraft Systems

SEC. 431. DEFINITIONS.

  Except as otherwise provided, the definitions contained in section 
45501 of title 49, United States Code (as added by this Act), shall 
apply to this subtitle.

SEC. 432. CODIFICATION OF EXISTING LAW; ADDITIONAL PROVISIONS.

  (a) In General.--Subtitle VII of title 49, United States Code, is 
amended by inserting after chapter 453 the following:

                ``CHAPTER 455--UNMANNED AIRCRAFT SYSTEMS

``Sec.
``45501. Definitions.
``45502. Integration of civil unmanned aircraft systems into national 
airspace system.
``45503. Risk-based permitting of unmanned aircraft systems.
``45504. Public unmanned aircraft systems.
``45505. Special rules for certain unmanned aircraft systems.
``45506. Certification of new air navigation facilities for unmanned 
aircraft and other aircraft.
``45507. Special rules for certain UTM and low-altitude CNS.
``45508. Operation of small unmanned aircraft.
``45509. Special rules for model aircraft.
``45510. Carriage of property for compensation or hire.
``45511. Micro UAS operations.

``Sec. 45501. Definitions

  ``In this chapter, the following definitions apply:
          ``(1) Aerial data collection.--The term `aerial data 
        collection' means the gathering of data by a device aboard an 
        unmanned aircraft during flight, including imagery, sensing, 
        and measurement by such device.
          ``(2) Arctic.--The term `Arctic' means the United States zone 
        of the Chukchi Sea, Beaufort Sea, and Bering Sea north of the 
        Aleutian chain.
          ``(3) Certificate of waiver; certificate of authorization.--
        The terms `certificate of waiver' and `certificate of 
        authorization' mean a Federal Aviation Administration grant of 
        approval for a specific flight operation.
          ``(4) CNS.--The term `CNS' means a communication, navigation, 
        or surveillance system or service.
          ``(5) Model aircraft.--the term `model aircraft' means an 
        unmanned aircraft that is--
                  ``(A) capable of sustained flight in the atmosphere;
                  ``(B) flown within visual line of sight of the person 
                operating the aircraft; and
                  ``(C) flown for hobby or recreational purposes.
          ``(6) Permanent areas.--The term `permanent areas' means 
        areas on land or water that provide for launch, recovery, and 
        operation of small unmanned aircraft.
          ``(7) Public unmanned aircraft system.--The term `public 
        unmanned aircraft system' means an unmanned aircraft system 
        that meets the qualifications and conditions required for 
        operation of a public aircraft (as defined in section 
        40102(a)).
          ``(8) Sense-and-avoid capability.--The term `sense-and-avoid 
        capability' means the capability of an unmanned aircraft to 
        remain a safe distance from and to avoid collisions with other 
        airborne aircraft.
          ``(9) Small unmanned aircraft.--The term `small unmanned 
        aircraft' means an unmanned aircraft weighing less than 55 
        pounds, including everything that is on board the aircraft.
          ``(10) Unmanned aircraft.--The term `unmanned aircraft' means 
        an aircraft that is operated without the possibility of direct 
        human intervention from within or on the aircraft.
          ``(11) Unmanned aircraft system.--The term `unmanned aircraft 
        system' means an unmanned aircraft and associated elements 
        (including communication links and the components that control 
        the unmanned aircraft) that are required for the pilot in 
        command to operate safely and efficiently in the national 
        airspace system.
          ``(12) UTM.--The term `UTM' means an unmanned aircraft 
        traffic management system or service.

``Sec. 45502. Integration of civil unmanned aircraft systems into 
                    national airspace system

  ``(a) Required Planning for Integration.--
          ``(1) Comprehensive plan.--Not later than November 10, 2012, 
        the Secretary of Transportation, in consultation with 
        representatives of the aviation industry, Federal agencies that 
        employ unmanned aircraft systems technology in the national 
        airspace system, and the unmanned aircraft systems industry, 
        shall develop a comprehensive plan to safely accelerate the 
        integration of civil unmanned aircraft systems into the 
        national airspace system.
          ``(2) Contents of plan.--The plan required under paragraph 
        (1) shall contain, at a minimum, recommendations or projections 
        on--
                  ``(A) the rulemaking to be conducted under subsection 
                (b), with specific recommendations on how the 
                rulemaking will--
                          ``(i) define the acceptable standards for 
                        operation and certification of civil unmanned 
                        aircraft systems;
                          ``(ii) ensure that any civil unmanned 
                        aircraft system includes a sense-and-avoid 
                        capability; and
                          ``(iii) establish standards and requirements 
                        for the operator and pilot of a civil unmanned 
                        aircraft system, including standards and 
                        requirements for registration and licensing;
                  ``(B) the best methods to enhance the technologies 
                and subsystems necessary to achieve the safe and 
                routine operation of civil unmanned aircraft systems in 
                the national airspace system;
                  ``(C) a phased-in approach to the integration of 
                civil unmanned aircraft systems into the national 
                airspace system;
                  ``(D) a timeline for the phased-in approach described 
                under subparagraph (C);
                  ``(E) creation of a safe airspace designation for 
                cooperative manned and unmanned flight operations in 
                the national airspace system;
                  ``(F) establishment of a process to develop 
                certification, flight standards, and air traffic 
                requirements for civil unmanned aircraft systems at 
                test ranges where such systems are subject to testing;
                  ``(G) the best methods to ensure the safe operation 
                of civil unmanned aircraft systems and public unmanned 
                aircraft systems simultaneously in the national 
                airspace system; and
                  ``(H) incorporation of the plan into the annual 
                NextGen Implementation Plan document (or any successor 
                document) of the Federal Aviation Administration.
          ``(3) Deadline.--The plan required under paragraph (1) shall 
        provide for the safe integration of civil unmanned aircraft 
        systems into the national airspace system as soon as 
        practicable, but not later than September 30, 2015.
          ``(4) Report to congress.--Not later than February 14, 2013, 
        the Secretary shall submit to Congress a copy of the plan 
        required under paragraph (1).
          ``(5) Roadmap.--Not later than February 14, 2013, the 
        Secretary shall approve and make available in print and on the 
        Administration's internet website a 5-year roadmap for the 
        introduction of civil unmanned aircraft systems into the 
        national airspace system, as coordinated by the Unmanned 
        Aircraft Program Office of the Administration. The Secretary 
        shall update the roadmap annually.
  ``(b) Rulemaking.--Not later than 18 months after the date on which 
the plan required under subsection (a)(1) is submitted to Congress 
under subsection (a)(4), the Secretary shall publish in the Federal 
Register--
          ``(1) a final rule on small unmanned aircraft systems that 
        will allow for civil operation of such systems in the national 
        airspace system, to the extent the systems do not meet the 
        requirements for expedited operational authorization under 
        section 45508;
          ``(2) a notice of proposed rulemaking to implement the 
        recommendations of the plan required under subsection (a)(1), 
        with the final rule to be published not later than 16 months 
        after the date of publication of the notice; and
          ``(3) an update to the Administration's most recent policy 
        statement on unmanned aircraft systems, contained in Docket No. 
        FAA-2006-25714.
  ``(c) Expanding Use of Unmanned Aircraft Systems in Arctic.--
          ``(1) In general.--Not later than August 12, 2012, the 
        Secretary shall develop a plan and initiate a process to work 
        with relevant Federal agencies and national and international 
        communities to designate permanent areas in the Arctic where 
        small unmanned aircraft may operate 24 hours per day for 
        research and commercial purposes. The plan for operations in 
        these permanent areas shall include the development of 
        processes to facilitate the safe operation of unmanned aircraft 
        beyond line of sight. Such areas shall enable over-water 
        flights from the surface to at least 2,000 feet in altitude, 
        with ingress and egress routes from selected coastal launch 
        sites.
          ``(2) Agreements.--To implement the plan under paragraph (1), 
        the Secretary may enter into an agreement with relevant 
        national and international communities.
          ``(3) Aircraft approval.--Not later than 1 year after the 
        entry into force of an agreement necessary to effectuate the 
        purposes of this subsection, the Secretary shall work with 
        relevant national and international communities to establish 
        and implement a process, or may apply an applicable process 
        already established, for approving the use of unmanned aircraft 
        in the designated permanent areas in the Arctic without regard 
        to whether an unmanned aircraft is used as a public aircraft, a 
        civil aircraft, or a model aircraft.

``Sec. 45503. Risk-based permitting of unmanned aircraft systems

  ``(a) In General.--Not later than 120 days after the date of 
enactment of this section, the Administrator of the Federal Aviation 
Administration shall establish procedures for issuing permits under 
this section with respect to certain unmanned aircraft systems and 
operations thereof.
  ``(b) Permitting Standards.--Upon the submission of an application in 
accordance with subsection (d), the Administrator shall issue a permit 
with respect to the proposed operation of an unmanned aircraft system 
if the Administrator determines that the unmanned aircraft system and 
the proposed operation achieve a level of safety that is equivalent 
to--
          ``(1) other unmanned aircraft systems and operations 
        permitted under regulation, exemption, or other authority 
        granted by the Administrator; or
          ``(2) any other aircraft operation approved by the 
        Administrator with similar risk characteristics or profiles.
  ``(c) Safety Criteria for Consideration.--In determining whether a 
proposed operation meets the standards described in subsection (b), the 
Administrator shall consider the following safety criteria:
          ``(1) The kinetic energy of the unmanned aircraft system.
          ``(2) The location of the proposed operation, including the 
        proximity to--
                  ``(A) structures;
                  ``(B) congested areas;
                  ``(C) special-use airspace; and
                  ``(D) persons on the ground.
          ``(3) The nature of the operation, including any proposed 
        risk mitigation.
          ``(4) Any known hazard of the proposed operation and the 
        severity and likelihood of such hazard.
          ``(5) Any known failure modes of the unmanned aircraft 
        system, failure mode effects and criticality, and any 
        mitigating features or capabilities.
          ``(6) The operational history of relevant technologies, if 
        available.
          ``(7) Any history of civil penalties or certificate actions 
        by the Administrator against the applicant seeking the permit.
          ``(8) Any other safety criteria the Administrator considers 
        appropriate.
  ``(d) Application.--An application under this section shall include 
evidence that the unmanned aircraft system and the proposed operation 
thereof meet the standards described in subsection (b) based on the 
criteria described in subsection (c).
  ``(e) Scope of Permit.--A permit issued under this section shall--
          ``(1) be valid for 5 years;
          ``(2) constitute approval of both the airworthiness of the 
        unmanned aircraft system and the proposed operation of such 
        system;
          ``(3) be renewable for additional 5-year periods; and
          ``(4) contain any terms necessary to ensure aviation safety.
  ``(f) Notice.--Not later than 120 days after the Administrator 
receives a complete application under subsection (d), the Administrator 
shall provide the applicant written notice of a decision to approve or 
disapprove of the application or to request a modification of the 
application that is necessary for approval of the application.
  ``(g) Permitting Process.--The Administrator shall issue a permit 
under this section without regard to subsections (b) through (d) of 
section 553 of title 5 and chapter 35 of title 44 if the Administrator 
determines that the operation permitted will not occur near a congested 
area.
  ``(h) Exemption From Certain Requirements.--To the extent consistent 
with aviation safety, the Administrator may exempt applicants under 
this section from paragraphs (1) through (3) of section 44711(a).
  ``(i) Withdrawal.--The Administrator may, at any time, modify or 
withdraw a permit issued under this section.
  ``(j) Applicability.--This section shall not apply to small unmanned 
aircraft systems and operations authorized by the final rule on small 
unmanned aircraft systems issued pursuant to section 45502(b)(1).
  ``(k) Expedited Review.--The Administrator shall review and act upon 
applications under this section on an expedited basis for unmanned 
aircraft systems and operations thereof to be used primarily in, or 
primarily in direct support of, emergency preparedness, emergency 
response, or disaster recovery efforts, including efforts in connection 
with natural disasters and severe weather events.

``Sec. 45504. Public unmanned aircraft systems

  ``(a) Guidance.--Not later than November 10, 2012, the Secretary of 
Transportation shall issue guidance regarding the operation of public 
unmanned aircraft systems to--
          ``(1) expedite the issuance of a certificate of authorization 
        process;
          ``(2) provide for a collaborative process with public 
        agencies to allow for an incremental expansion of access to the 
        national airspace system as technology matures and the 
        necessary safety analysis and data become available, and until 
        standards are completed and technology issues are resolved;
          ``(3) facilitate the capability of public agencies to develop 
        and use test ranges, subject to operating restrictions required 
        by the Federal Aviation Administration, to test and operate 
        unmanned aircraft systems; and
          ``(4) provide guidance on a public entity's responsibility 
        when operating an unmanned aircraft without a civil 
        airworthiness certificate issued by the Administration.
  ``(b) Standards for Operation and Certification.--Not later than 
December 31, 2015, the Administrator shall develop and implement 
operational and certification requirements for the operation of public 
unmanned aircraft systems in the national airspace system.
  ``(c) Agreements With Government Agencies.--
          ``(1) In general.--Not later than May 14, 2012, the Secretary 
        shall enter into agreements with appropriate government 
        agencies to simplify the process for issuing certificates of 
        waiver or authorization with respect to applications seeking 
        authorization to operate public unmanned aircraft systems in 
        the national airspace system.
          ``(2) Contents.--The agreements shall--
                  ``(A) with respect to an application described in 
                paragraph (1)--
                          ``(i) provide for an expedited review of the 
                        application;
                          ``(ii) require a decision by the 
                        Administrator on approval or disapproval within 
                        60 business days of the date of submission of 
                        the application; and
                          ``(iii) allow for an expedited appeal if the 
                        application is disapproved;
                  ``(B) allow for a one-time approval of similar 
                operations carried out during a fixed period of time; 
                and
                  ``(C) allow a government public safety agency to 
                operate unmanned aircraft weighing 4.4 pounds or less, 
                if operated--
                          ``(i) within the line of sight of the 
                        operator;
                          ``(ii) less than 400 feet above the ground;
                          ``(iii) during daylight conditions;
                          ``(iv) within Class G airspace; and
                          ``(v) outside of 5 statute miles from any 
                        airport, heliport, seaplane base, spaceport, or 
                        other location with aviation activities.

``Sec. 45505. Special rules for certain unmanned aircraft systems

  ``(a) In General.--Notwithstanding any other requirement of this 
subtitle, and not later than August 12, 2012, the Secretary of 
Transportation shall determine if certain unmanned aircraft systems may 
operate safely in the national airspace system before completion of the 
plan and rulemaking required by section 45502 or the guidance required 
under section 45504.
  ``(b) Assessment of Unmanned Aircraft Systems.--In making the 
determination under subsection (a), the Secretary shall determine, at a 
minimum--
          ``(1) which types of unmanned aircraft systems, if any, as a 
        result of their size, weight, speed, operational capability, 
        proximity to airports and populated areas, and operation within 
        visual line of sight do not create a hazard to users of the 
        national airspace system or the public or pose a threat to 
        national security; and
          ``(2) whether a certificate of waiver, certificate of 
        authorization, or airworthiness certification under section 
        44704 is required for the operation of unmanned aircraft 
        systems identified under paragraph (1).
  ``(c) Requirements for Safe Operation.--If the Secretary determines 
under this section that certain unmanned aircraft systems may operate 
safely in the national airspace system, the Secretary shall establish 
requirements for the safe operation of such aircraft systems in the 
national airspace system.

``Sec. 45506. Certification of new air navigation facilities for 
                    unmanned aircraft and other aircraft

  ``(a) In General.--Not later than 18 months after the date of 
enactment of this section, and notwithstanding section 2208 of the FAA 
Extension, Safety, and Security Act of 2016 (49 U.S.C. 40101 note), the 
Administrator of the Federal Aviation Administration shall initiate a 
rulemaking to establish procedures for issuing air navigation facility 
certificates pursuant to section 44702 to operators of--
          ``(1) UTM for unmanned aircraft operations that occur 
        primarily or exclusively in airspace 400 feet above ground 
        level and below; and
          ``(2) low-altitude CNS for aircraft operations that occur 
        primarily or exclusively in airspace 400 feet above ground 
        level and below.
  ``(b) Minimum Requirements.--In issuing a final rule pursuant to 
subsection (a), the Administrator, at a minimum, shall provide for the 
following:
          ``(1) Certification standards.--The Administrator shall issue 
        an air navigation facility certificate under the final rule if 
        the Administrator determines that a UTM or low-altitude CNS 
        facilitates or improves the safety of unmanned aircraft or 
        other aircraft operations that occur primarily or exclusively 
        in airspace 400 feet above ground level and below, including 
        operations conducted under a waiver issued pursuant to subpart 
        D of part 107 of title 14, Code of Federal Regulations.
          ``(2) Criteria for consideration.--In determining whether a 
        UTM or low-altitude CNS meets the standard described in 
        paragraph (1), the Administrator shall, as appropriate, 
        consider--
                  ``(A) protection of persons and property on the 
                ground;
                  ``(B) remote identification of aircraft;
                  ``(C) collision avoidance with respect to obstacles 
                and aircraft;
                  ``(D) deconfliction of aircraft trajectories;
                  ``(E) safe and reliable interoperability or 
                noninterference with air traffic control and other 
                systems operated in the national airspace system;
                  ``(F) detection of noncooperative aircraft;
                  ``(G) geographic and local factors;
                  ``(H) aircraft equipage; and
                  ``(I) qualifications, if any, necessary to operate 
                the UTM or low-altitude CNS.
          ``(3) Application.--An application for an air navigation 
        facility certificate under the final rule shall include 
        evidence that the UTM or low-altitude CNS meets the standard 
        described in paragraph (1) based on the criteria described in 
        paragraph (2).
          ``(4) Scope of certificate.--The Administrator shall ensure 
        that an air navigation facility certificate issued under the 
        final rule--
                  ``(A) constitutes approval of the UTM or low-altitude 
                CNS for the duration of the term of the certificate;
                  ``(B) constitutes authorization to operate the UTM or 
                low-altitude CNS for the duration of the term of the 
                certificate; and
                  ``(C) contains such limitations and conditions as may 
                be necessary to ensure aviation safety.
          ``(5) Notice.--Not later than 120 days after the 
        Administrator receives a complete application under the final 
        rule, the Administrator shall provide the applicant with a 
        written approval, disapproval, or request to modify the 
        application.
          ``(6) Low risk areas.--Under the final rule, the 
        Administrator shall establish expedited procedures for approval 
        of UTM or low-altitude CNS operated in--
                  ``(A) airspace away from congested areas; or
                  ``(B) other airspace above areas in which operations 
                of unmanned aircraft pose very low risk.
          ``(7) Exemption from certain requirements.--To the extent 
        consistent with aviation safety, the Administrator may exempt 
        applicants under the final rule from requirements under 
        sections 44702, 44703, and 44711.
          ``(8) Certificate modifications and revocations.--A 
        certificate issued under the final rule may, at any time, be 
        modified or revoked by the Administrator.
  ``(c) Consultation.--In carrying out this section, the Administrator 
shall consult with other Federal agencies, as appropriate.

``Sec. 45507. Special rules for certain UTM and low-altitude CNS

  ``(a) In General.--Notwithstanding any other requirement of this 
chapter, and not later than 120 days after the date of enactment of 
this section, the Secretary of Transportation shall determine if 
certain UTM and low-altitude CNS may operate safely in the national 
airspace system before completion of the rulemaking required by section 
45506.
  ``(b) Assessment of UTM and Low-Altitude CNS.--In making the 
determination under subsection (a), the Secretary shall determine, at a 
minimum, which types of UTM and low-altitude CNS, if any, as a result 
of their operational capabilities, reliability, intended use, and areas 
of operation, and the characteristics of the aircraft involved, do not 
create a hazard to users of the national airspace system or the public.
  ``(c) Requirements for Safe Operation.--If the Secretary determines 
that certain UTM and low-altitude CNS may operate safely in the 
national airspace system, the Secretary shall establish requirements 
for their safe operation in the national airspace system.
  ``(d) Expedited Procedures.--The Secretary shall provide expedited 
procedures for reviewing and approving UTM or low-altitude CNS operated 
to monitor or control aircraft operated primarily or exclusively in 
airspace above--
          ``(1) croplands;
          ``(2) areas other than congested areas; and
          ``(3) other areas in which the operation of unmanned aircraft 
        poses very low risk.
  ``(e) Consultation.--In carrying out this section, the Administrator 
shall consult with other Federal agencies, as appropriate.

``Sec. 45508. Operation of small unmanned aircraft

  ``(a) Exemption and Certificate of Waiver or Authorization for 
Certain Operations.--Not later than 270 days after the date of 
enactment of this section, the Administrator of the Federal Aviation 
Administration shall establish a procedure for granting an exemption 
and issuing a certificate of waiver or authorization for the operation 
of a small unmanned aircraft system in United States airspace for the 
purposes described in section 45501(1).
  ``(b) Operation of Exemption and Certificate of Waiver or 
Authorization.--
          ``(1) Exemption.--An exemption granted under this section 
        shall--
                  ``(A) exempt the operator of a small unmanned 
                aircraft from the provisions of title 14, Code of 
                Federal Regulations, that are exempted in Exemption No. 
                11687, issued on May 26, 2015, Regulatory Docket Number 
                FAA-2015-0117, or in a subsequent exemption; and
                  ``(B) contain conditions and limitations described in 
                paragraphs 3 through 31 of such Exemption No. 11687, or 
                conditions and limitations of a subsequent exemption.
          ``(2) Certificate of waiver or authorization.--A certificate 
        of waiver or authorization issued under this section shall 
        allow the operation of small unmanned aircraft according to--
                  ``(A) the standard provisions and air traffic control 
                special provisions of the certificate of waiver or 
                authorization FAA Form 7711-1 (7-74); or
                  ``(B) the standard and special provisions of a 
                subsequent certificate of waiver or authorization.
  ``(c) Notice to Administrator.--Before operating a small unmanned 
aircraft pursuant to a certificate of waiver or authorization granted 
under this section, the operator shall provide written notice to the 
Administrator, in a form and manner specified by the Administrator, 
that contains such information and assurances as the Administrator 
determines necessary in the interest of aviation safety and the 
efficiency of the national airspace system, including a certification 
that the operator has read, understands, and will comply with all 
terms, conditions, and limitations of the certificate of waiver or 
authorization.
  ``(d) Waiver of Airworthiness Certificate.--Notwithstanding section 
44711(a)(1), the holder of a certificate of waiver or authorization 
granted under this section may operate a small unmanned aircraft under 
the terms, conditions, and limitations of such certificate without an 
airworthiness certificate.
  ``(e) Procedure.--The granting of an exemption or the issuance of a 
certificate of waiver or authorization, or any other action authorized 
by this section, shall be made without regard to--
          ``(1) section 553 of title 5; or
          ``(2) chapter 35 of title 44.
  ``(f) Statutory Construction.--Nothing in this section may be 
construed to--
          ``(1) affect the issuance of a rule by or any other activity 
        of the Secretary of Transportation or the Administrator under 
        any other provision of law; or
          ``(2) invalidate an exemption or certificate of waiver or 
        authorization issued by the Administrator before the date of 
        enactment of this section.
  ``(g) Effective Periods.--An exemption or certificate of waiver or 
authorization issued under this section, or an amendment of such 
exemption or certificate, shall cease to be valid on the effective date 
of a final rule on small unmanned aircraft systems issued under section 
45502(b)(1).

``Sec. 45509. Special rules for model aircraft

  ``(a) In General.--Notwithstanding any other provision of law 
relating to the incorporation of unmanned aircraft systems into Federal 
Aviation Administration plans and policies, including this subtitle, 
the Administrator of the Federal Aviation Administration may not 
promulgate any rule or regulation regarding a model aircraft or an 
aircraft being developed as a model aircraft (other than the 
registration of certain model aircraft pursuant to section 44103), if--
          ``(1) the aircraft is flown strictly for hobby or 
        recreational use;
          ``(2) the aircraft is operated in accordance with a 
        community-based set of safety guidelines and within the 
        programming of a community-based organization;
          ``(3) the aircraft is limited to not more than 55 pounds 
        unless otherwise certified through a design, construction, 
        inspection, flight test, and operational safety program 
        administered by a community-based organization;
          ``(4) the aircraft is operated in a manner that does not 
        interfere with and gives way to any manned aircraft;
          ``(5) the aircraft is not operated over or within the 
        property of a fixed site facility that operates amusement rides 
        available for use by the general public or the property 
        extending 500 lateral feet beyond the perimeter of such 
        facility unless the operation is authorized by the owner of the 
        amusement facility; and
          ``(6) when flown within 5 miles of an airport, the operator 
        of the aircraft provides the airport operator and the airport 
        air traffic control tower (when an air traffic facility is 
        located at the airport) with prior notice of the operation 
        (model aircraft operators flying from a permanent location 
        within 5 miles of an airport should establish a mutually agreed 
        upon operating procedure with the airport operator and the 
        airport air traffic control tower (when an air traffic facility 
        is located at the airport)).
  ``(b) Commercial Operation for Instructional or Educational 
Purposes.--A flight of an unmanned aircraft shall be treated as a 
flight of a model aircraft for purposes of subsection (a) (regardless 
of any compensation, reimbursement, or other consideration exchanged or 
incidental economic benefit gained in the course of planning, 
operating, or supervising the flight), if the flight is--
          ``(1) conducted for instructional or educational purposes; 
        and
          ``(2) operated or supervised by a member of a community-based 
        organization recognized pursuant to subsection (e).
  ``(c) Statutory Construction.--Nothing in this section may be 
construed to limit the authority of the Administrator to pursue 
enforcement action against persons operating model aircraft who 
endanger the safety of the national airspace system.
  ``(d) Community-Based Organization Defined.--In this section, the 
term `community-based organization' means an entity that--
          ``(1) is described in section 501(c)(3) of the Internal 
        Revenue Code of 1986;
          ``(2) is exempt from tax under section 501(a) of the Internal 
        Revenue Code of 1986;
          ``(3) the mission of which is demonstrably the furtherance of 
        model aviation;
          ``(4) provides a comprehensive set of safety guidelines for 
        all aspects of model aviation addressing the assembly and 
        operation of model aircraft and that emphasize safe 
        aeromodeling operations within the national airspace system and 
        the protection and safety of individuals and property on the 
        ground;
          ``(5) provides programming and support for any local charter 
        organizations, affiliates, or clubs; and
          ``(6) provides assistance and support in the development and 
        operation of locally designated model aircraft flying sites.
  ``(e) Recognition of Community-Based Organizations.--Not later than 
180 days after the date of enactment of this section, the Administrator 
shall establish, and make available to the public, a process for 
recognizing community-based organizations that meet the eligibility 
criteria under subsection (d).

``Sec. 45510. Carriage of property for compensation or hire

  ``(a) In General.--Not later than 1 year after the date of enactment 
of this section, the Secretary of Transportation shall issue a final 
rule authorizing the carriage of property by operators of small 
unmanned aircraft systems for compensation or hire within the United 
States.
  ``(b) Contents.--The final rule required under subsection (a) shall 
provide for the following:
          ``(1) Small uas air carrier certificate.--The Administrator 
        of the Federal Aviation Administration, at the direction of the 
        Secretary, shall establish a small UAS air carrier certificate 
        for persons that undertake directly, or by lease or other 
        arrangement, the operation of small unmanned aircraft systems 
        to carry property in air transportation, including commercial 
        fleet operations with highly automated unmanned aircraft 
        systems. The requirements to obtain a small UAS air carrier 
        certificate shall--
                  ``(A) account for the unique characteristics of 
                highly automated small unmanned aircraft systems; and
                  ``(B) include only those obligations necessary for 
                the safe operation of small unmanned aircraft systems.
          ``(2) Small uas air carrier certification process.--The 
        Administrator, at the direction of the Secretary, shall 
        establish a process for the issuance of a small UAS air carrier 
        certificate described in paragraph (1) that is streamlined, 
        simple, performance-based, and risk-based. Such certification 
        process shall consider--
                  ``(A) safety and the mitigation of operational risks 
                from highly automated small unmanned aircraft systems 
                to the safety of other aircraft, and persons and 
                property on the ground;
                  ``(B) the safety and reliability of highly automated 
                small unmanned aircraft system design, including 
                technological capabilities and operational limitations 
                to mitigate such risks; and
                  ``(C) the competencies and compliance programs of 
                manufacturers, operators, and companies that both 
                manufacture and operate small unmanned aircraft systems 
                and components.
          ``(3) Small uas air carrier classification.--The Secretary 
        shall develop a classification system for small unmanned 
        aircraft systems air carriers to establish economic authority 
        for the carriage of property by small unmanned aircraft systems 
        for compensation or hire. Such classification shall only 
        require--
                  ``(A) registration with the Department of 
                Transportation; and
                  ``(B) a valid small UAS air carrier certificate as 
                described in paragraph (1).

``Sec. 45511. Micro UAS operations

  ``(a) In General.--Not later than 60 days after the date of enactment 
of this section, the Administrator of the Federal Aviation 
Administration shall charter an aviation rulemaking advisory committee 
to develop recommendations for regulations under which any person may 
operate a micro unmanned aircraft system, the aircraft component of 
which weighs 4.4 pounds or less, including payload, without the person 
operating the system being required to pass any airman certification 
requirement, including any requirements under section 44703, part 61 of 
title 14, Code of Federal Regulations, or any other rule or regulation 
relating to airman certification.
  ``(b) Considerations.--In developing recommendations for the 
operation of micro unmanned aircraft systems under subsection (a), the 
members of the aviation rulemaking advisory committee shall consider 
rules for operation of such systems--
          ``(1) at an altitude of less than 400 feet above ground 
        level;
          ``(2) with an airspeed of not greater than 40 knots;
          ``(3) within the visual line of sight of the operator;
          ``(4) during the hours between sunrise and sunset;
          ``(5) by an operator who has passed an aeronautical knowledge 
        and safety test administered by the Federal Aviation 
        Administration online specifically for the operation of micro 
        unmanned aircraft systems, with such test being of a length and 
        difficulty that acknowledges the reduced operational complexity 
        and low risk of micro unmanned aircraft systems;
          ``(6) not over unprotected persons uninvolved in its 
        operation; and
          ``(7) at least 5 statute miles from the geographic center of 
        a tower-controlled airport or airport denoted on a current 
        Federal Aviation Administration-published aeronautical chart, 
        except that a micro unmanned aircraft system may be operated 
        closer than 5 statute miles to the airport if the operator--
                  ``(A) provides prior notice to the airport operator; 
                and
                  ``(B) receives, for a tower-controlled airport, prior 
                approval from the air traffic control facility located 
                at the airport.
  ``(c) Consultation.--
          ``(1) In general.--In developing recommendations for 
        recommended regulations under subsection (a), the aviation 
        rulemaking advisory committee shall consult with--
                  ``(A) unmanned aircraft systems stakeholders, 
                including manufacturers of micro unmanned aircraft 
                systems;
                  ``(B) community-based aviation organizations;
                  ``(C) the Center of Excellence for Unmanned Aircraft 
                Systems; and
                  ``(D) appropriate Federal agencies.
          ``(2) FACA.--The Federal Advisory Committee Act (5 U.S.C. 
        App.) shall not apply to an aviation rulemaking advisory 
        committee chartered under this section.
  ``(d) Rulemaking.--Not later than 180 days after the date of receipt 
of the recommendations under subsection (a), the Administrator shall 
issue regulations incorporating recommendations of the aviation 
rulemaking advisory committee that provide for the operation of micro 
unmanned aircraft systems in the United States--
          ``(1) without an airman certificate; and
          ``(2) without an airworthiness certificate for the associated 
        unmanned aircraft.
  ``(e) Scope of Regulations.--
          ``(1) In general.--In determining whether a person may 
        operate an unmanned aircraft system under 1 or more of the 
        circumstances described under paragraphs (1) through (3) of 
        subsection (b), the Administrator shall use a risk-based 
        approach and consider, at a minimum, the physical and 
        functional characteristics of the unmanned aircraft system.
          ``(2) Limitation.--The Administrator may only issue 
        regulations under this section for unmanned aircraft systems 
        that the Administrator determines may be operated safely in the 
        national airspace system pursuant to those regulations.
  ``(f) Rules of Construction.--Nothing in this section may be 
construed--
          ``(1) to prohibit a person from operating an unmanned 
        aircraft system under a circumstance described under paragraphs 
        (1) through (3) of subsection (b) if--
                  ``(A) the circumstance is allowed by regulations 
                issued under this section; and
                  ``(B) the person operates the unmanned aircraft 
                system in a manner prescribed by the regulations; or
          ``(2) to limit or affect in any way the Administrator's 
        authority to conduct a rulemaking, make a determination, or 
        carry out any activity related to unmanned aircraft or unmanned 
        aircraft systems under any other provision of law.''.
  (b) Conforming Amendments.--
          (1) Repeals.--
                  (A) In general.--Sections 332(a), 332(b), 332(d), 
                333, 334, and 336 of the FAA Modernization and Reform 
                Act of 2012 (49 U.S.C. 40101 note) are repealed.
                  (B) Clerical amendment.--The items relating to 
                sections 333, 334, and 336 of the FAA Modernization and 
                Reform Act of 2012 (49 U.S.C. 40101 note) in the table 
                of contents contained in section 1(b) of that Act are 
                repealed.
          (2) Penalties.--Section 46301 of title 49, United States 
        Code, is amended--
                  (A) in subsection (a)--
                          (i) in paragraph (1)(A) by inserting 
                        ``chapter 455,'' after ``chapter 451,''; and
                          (ii) in paragraph (5)(A)(i) by striking ``or 
                        chapter 451,'' and inserting ``chapter 451, 
                        chapter 455,'';
                  (B) in subsection (d)(2) by inserting ``chapter 
                455,'' after ``chapter 451,''; and
                  (C) in subsection (f)(1)(A)(i) by striking ``or 
                chapter 451'' and inserting ``chapter 451, or chapter 
                455''.
          (3) Clerical amendment.--The analysis for subtitle VII of 
        title 49, United States Code, is amended by inserting after the 
        item relating to chapter 453 the following:

``455. Unmanned aircraft systems............................   45501''.

SEC. 433. UNMANNED AIRCRAFT TEST RANGES.

  (a) Extension of Program.--Section 332(c)(1) of the FAA Modernization 
and Reform Act of 2012 (49 U.S.C. 40101 note) is amended by striking 
``September 30, 2019'' and inserting ``the date that is 6 years after 
the date of enactment of the 21st Century AIRR Act''.
  (b) Sense-and-Avoid and Beyond Line of Sight Systems at Test 
Ranges.--
          (1) In general.--To the extent consistent with aviation 
        safety, the Administrator of the Federal Aviation 
        Administration shall permit and encourage flights of unmanned 
        aircraft equipped with sense-and-avoid and beyond line of sight 
        systems at the 6 test ranges designated under section 332(c) of 
        the FAA Modernization and Reform Act of 2012.
          (2) Waivers.--In carrying out paragraph (1), the 
        Administrator may waive the requirements of section 44711 of 
        title 49, United States Code, including related regulations, to 
        the extent consistent with aviation safety.
  (c)  Test Range Defined.--In this section, the term ``test range'' 
means a defined geographic area where research and development are 
conducted.

SEC. 434. SENSE OF CONGRESS REGARDING UNMANNED AIRCRAFT SAFETY.

  It is the sense of Congress that--
          (1) the unauthorized operation of unmanned aircraft near 
        airports presents a serious hazard to aviation safety;
          (2) a collision between an unmanned aircraft and a 
        conventional aircraft in flight could jeopardize the safety of 
        persons aboard the aircraft and on the ground;
          (3) Federal aviation regulations, including sections 91.126 
        through 91.131 of title 14, Code of Federal Regulations, 
        prohibit unauthorized operation of an aircraft in controlled 
        airspace near an airport;
          (4) Federal aviation regulations, including section 91.13 of 
        title 14, Code of Federal Regulations, prohibit the operation 
        of an aircraft in a careless or reckless manner so as to 
        endanger the life or property of another;
          (5) the Administrator of the Federal Aviation Administration 
        should pursue all available civil and administrative remedies 
        available to the Administrator, including referrals to other 
        government agencies for criminal investigations, with respect 
        to persons who operate unmanned aircraft in an unauthorized 
        manner;
          (6) the Administrator should place particular priority on 
        continuing measures, including partnerships with 
        nongovernmental organizations, to educate the public about the 
        dangers to the public safety of operating unmanned aircraft 
        near airports without the appropriate approvals or 
        authorizations; and
          (7) manufacturers and retail sellers of small unmanned 
        aircraft systems should take steps to educate consumers about 
        the safe and lawful operation of such systems.

SEC. 435. UAS PRIVACY REVIEW.

  (a) Review.--The Secretary of Transportation, in consultation with 
the heads of appropriate Federal agencies, appropriate State and local 
officials, and subject-matter experts and in consideration of relevant 
efforts led by the National Telecommunications and Information 
Administration, shall carry out a review to identify any potential 
reduction of privacy specifically caused by the integration of unmanned 
aircraft systems into the national airspace system.
  (b) Consultation.--In carrying out the review, the Secretary shall 
consult with the National Telecommunications and Information 
Administration of the Department of Commerce on its ongoing efforts 
responsive to the Presidential memorandum titled ``Promoting Economic 
Competitiveness While Safeguarding Privacy, Civil Rights, and Civil 
Liberties in Domestic Use of Unmanned Aircraft Systems'' and dated 
February 15, 2015.
  (c) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Transportation 
and Infrastructure of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate a report on the 
results of the review required under subsection (a).

SEC. 436. PUBLIC UAS OPERATIONS BY TRIBAL GOVERNMENTS.

  (a) Public UAS Operations by Tribal Governments.--Section 
40102(a)(41) of title 49, United States Code, is amended by adding at 
the end the following:
                  ``(F) An unmanned aircraft that is owned and operated 
                by, or exclusively leased for at least 90 continuous 
                days by, an Indian Tribal government, as defined in 
                section 102 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5122), except 
                as provided in section 40125(b).''.
  (b) Conforming Amendment.--Section 40125(b) of title 49, United 
States Code, is amended by striking ``or (D)'' and inserting ``(D), or 
(F)''.

SEC. 437. EVALUATION OF AIRCRAFT REGISTRATION FOR SMALL UNMANNED 
                    AIRCRAFT.

  (a) Metrics.--Beginning not later than 180 days after the date of 
enactment of this Act, the Administrator of the Federal Aviation 
Administration shall develop and track metrics to assess compliance 
with and effectiveness of the registration of small unmanned aircraft 
systems by the Federal Aviation Administration pursuant to the interim 
final rule issued on December 16, 2015, entitled ``Registration and 
Marking Requirements for Small Unmanned Aircraft'' (80 Fed. Reg. 78593) 
and any subsequent final rule, including metrics with respect to--
          (1) the levels of compliance with the interim final rule and 
        any subsequent final rule;
          (2) the number of enforcement actions taken by the 
        Administration for violations of or noncompliance with the 
        interim final rule and any subsequent final rule, together with 
        a description of the actions; and
          (3) the effect of the interim final rule and any subsequent 
        final rule on compliance with any fees associated with the use 
        of small unmanned aircraft systems.
  (b) Evaluation.--The Inspector General of the Department of 
Transportation shall evaluate--
          (1) the Administration's progress in developing and tracking 
        the metrics set forth in subsection (a); and
          (2) the reliability, effectiveness, and efficiency of the 
        Administration's registration program for small unmanned 
        aircraft.
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Inspector General of the Department of Transportation 
shall submit to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Commerce, Science, 
and Transportation of the Senate a report containing--
          (1) the results of the evaluation required under subsection 
        (b); and
          (2) recommendations to the Administrator and Congress for 
        improvements to the registration process for small unmanned 
        aircraft.

SEC. 438. STUDY ON ROLES OF GOVERNMENTS RELATING TO LOW-ALTITUDE 
                    OPERATION OF SMALL UNMANNED AIRCRAFT.

  (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Inspector General of the Department of Transportation 
shall initiate a study on--
          (1) the regulation and oversight of the low-altitude 
        operations of small unmanned aircraft and small unmanned 
        aircraft systems; and
          (2) the appropriate roles and responsibilities of Federal, 
        State, local, and Tribal governments in regulating and 
        overseeing the operations of small unmanned aircraft in 
        airspace 400 feet above ground level and below.
  (b) Considerations.--In carrying out the study, the Inspector General 
shall consider, at a minimum--
          (1) the recommendations of Task Group 1 of the Drone Advisory 
        Committee chartered by the Federal Aviation Administration on 
        August 31, 2016;
          (2) the legal and policy requirements necessary for the safe 
        and financially viable development and growth of the unmanned 
        aircraft industry;
          (3) the interests of Federal, State, local, and Tribal 
        governments affected by low-altitude operations of small 
        unmanned aircraft;
          (4) the existing authorities of Federal, State, local, and 
        Tribal governments to protect the interests referenced in 
        paragraph (3);
          (5) the degree of regulatory consistency required for the 
        safe and financially viable growth and development of the 
        unmanned aircraft industry;
          (6) the degree of local variance possible among regulations 
        consistent with the safe and financially viable growth and 
        development of the unmanned aircraft industry;
          (7) the appropriate roles of State, local, and Tribal 
        governments in regulating the operations of small unmanned 
        aircraft within the lateral boundaries of their jurisdiction in 
        the categories of airspace described in subsection (a)(2);
          (8) the subjects and types of regulatory authority that 
        should remain with the Federal Government;
          (9) the infrastructure requirements necessary for monitoring 
        the low-altitude operations of small unmanned aircraft and 
        enforcing applicable laws;
          (10) the number of small businesses involved in the various 
        sectors of the unmanned aircraft industry and operating as 
        primary users of small unmanned aircraft; and
          (11) any best practices, lessons learned, or policies of 
        jurisdictions outside the United States relating to local or 
        regional regulation and oversight of small unmanned aircraft 
        and other emergent technologies.
  (c) Report to Congress.--Not later than 180 days after initiating the 
study, the Inspector General shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report on the results of the study.

SEC. 439. STUDY ON FINANCING OF UNMANNED AIRCRAFT SERVICES.

  (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Comptroller General of the United States shall 
initiate a study on appropriate fee mechanisms to recover the costs 
of--
          (1) the regulation and safety oversight of unmanned aircraft 
        and unmanned aircraft systems; and
          (2) the provision of air navigation services to unmanned 
        aircraft and unmanned aircraft systems.
  (b) Considerations.--In carrying out the study, the Comptroller 
General shall consider, at a minimum--
          (1) the recommendations of Task Group 3 of the Drone Advisory 
        Committee chartered by the Federal Aviation Administration on 
        August 31, 2016;
          (2) the total annual costs incurred by the Federal Aviation 
        Administration for the regulation and safety oversight of 
        activities related to unmanned aircraft;
          (3) the annual costs attributable to various types, classes, 
        and categories of unmanned aircraft activities;
          (4) air traffic services provided to unmanned aircraft 
        operating under instrument flight rules, excluding public 
        aircraft;
          (5) the number of full-time Federal Aviation Administration 
        employees dedicated to unmanned aircraft programs;
          (6) the use of privately operated UTM and other privately 
        operated unmanned aircraft systems;
          (7) the projected growth of unmanned aircraft operations for 
        various applications and the estimated need for regulation, 
        oversight, and other services;
          (8) the number of small businesses involved in the various 
        sectors of the unmanned aircraft industry and operating as 
        primary users of unmanned aircraft; and
          (9) any best practices or policies utilized by jurisdictions 
        outside the United States relating to partial or total recovery 
        of regulation and safety oversight costs related to unmanned 
        aircraft and other emergent technologies.
  (c) Report to Congress.--Not later than 180 days after initiating the 
study, the Comptroller General shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report containing recommendations on appropriate fee mechanisms to 
recover the costs of regulating and providing air navigation services 
to unmanned aircraft and unmanned aircraft systems.

SEC. 440. UPDATE OF FAA COMPREHENSIVE PLAN.

  (a) In General.--Not later than 270 days after the date of enactment 
of this Act, the Secretary of Transportation shall update the 
comprehensive plan required by section 332 of the FAA Modernization and 
Reform Act of 2012 (49 U.S.C. 40101 note) to develop a concept of 
operations for the integration of unmanned aircraft into the national 
airspace system.
  (b) Considerations.--In carrying out the update, the Secretary shall 
consider, at a minimum--
          (1) the potential use of UTM and other technologies to ensure 
        the safe and lawful operation of unmanned aircraft in the 
        national airspace system;
          (2) the appropriate roles, responsibilities, and authorities 
        of government agencies and the private sector in identifying 
        and reporting unlawful or harmful operations and operators of 
        unmanned aircraft;
          (3) the use of models, threat assessments, probabilities, and 
        other methods to distinguish between lawful and unlawful 
        operations of unmanned aircraft; and
          (4) appropriate systems, training, intergovernmental 
        processes, protocols, and procedures to mitigate risks and 
        hazards posed by unlawful or harmful operations of unmanned 
        aircraft systems.
  (c) Consultation.--The Secretary shall carry out the update in 
consultation with representatives of the aviation industry, Federal 
agencies that employ unmanned aircraft systems technology in the 
national airspace system, and the unmanned aircraft systems industry.

SEC. 441. COOPERATION RELATED TO CERTAIN COUNTER-UAS TECHNOLOGY.

  In matters relating to the use of systems in the national airspace 
system intended to mitigate threats posed by errant or hostile unmanned 
aircraft system operations, the Secretary of Transportation shall 
consult with the Secretary of Defense to streamline deployment of such 
systems by drawing upon the expertise and experience of the Department 
of Defense in acquiring and operating such systems consistent with the 
safe and efficient operation of the national airspace system.

                   TITLE V--AIR SERVICE IMPROVEMENTS

           Subtitle A--Airline Customer Service Improvements

SEC. 501. RELIABLE AIR SERVICE IN AMERICAN SAMOA.

  Section 40109(g) of title 49, United States Code, is amended--
          (1) in paragraph (2) by striking subparagraph (C) and 
        inserting the following:
          ``(C) review the exemption at least every 30 days (or, in the 
        case of an exemption that is necessary to provide and sustain 
        air transportation in American Samoa between the islands of 
        Tutuila and Manu'a, at least every 180 days) to ensure that the 
        unusual circumstances that established the need for the 
        exemption still exist.''; and
          (2) by striking paragraph (3) and inserting the following:
          ``(3) Renewal of exemptions.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), the Secretary may renew an exemption (including 
                renewals) under this subsection for not more than 30 
                days.
                  ``(B) Exception.--The Secretary may renew an 
                exemption (including renewals) under this subsection 
                that is necessary to provide and sustain air 
                transportation in American Samoa between the islands of 
                Tutuila and Manu'a for not more than 180 days.
          ``(4) Continuation of exemptions.--An exemption granted by 
        the Secretary under this subsection may continue for not more 
        than 5 days after the unusual circumstances that established 
        the need for the exemption cease.''.

SEC. 502. CELL PHONE VOICE COMMUNICATION BAN.

  (a) In General.--Subchapter I of chapter 417 of title 49, United 
States Code, is amended by adding at the end the following:

``Sec. 41725. Prohibition on certain cell phone voice communications

  ``(a) Prohibition.--The Secretary of Transportation shall issue 
regulations--
          ``(1) to prohibit an individual on an aircraft from engaging 
        in voice communications using a mobile communications device 
        during a flight of that aircraft in scheduled passenger 
        interstate or intrastate air transportation; and
          ``(2) that exempt from the prohibition described in paragraph 
        (1) any--
                  ``(A) member of the flight crew on duty on an 
                aircraft;
                  ``(B) flight attendant on duty on an aircraft; and
                  ``(C) Federal law enforcement officer acting in an 
                official capacity.
  ``(b) Definitions.--In this section, the following definitions apply:
          ``(1) Flight.--The term `flight' means, with respect to an 
        aircraft, the period beginning when the aircraft takes off and 
        ending when the aircraft lands.
          ``(2) Mobile communications device.--
                  ``(A) In general.--The term `mobile communications 
                device' means any portable wireless telecommunications 
                equipment utilized for the transmission or reception of 
                voice data.
                  ``(B) Limitation.--The term `mobile communications 
                device' does not include a phone installed on an 
                aircraft.''.
  (b) Clerical Amendment.--The analysis for chapter 417 of title 49, 
United States Code, is amended by inserting after the item relating to 
section 41724 the following:

``41725. Prohibition on certain cell phone voice communications.''.

SEC. 503. ADVISORY COMMITTEE FOR AVIATION CONSUMER PROTECTION.

  Section 411 of the FAA Modernization and Reform Act of 2012 (49 
U.S.C. 42301 prec. note) is amended--
          (1) in subsection (b)--
                  (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively; and
                  (B) by inserting after paragraph (2) the following:
          ``(3) independent distributors of travel;'';
          (2) in subsection (g) by striking ``first 2 calendar years'' 
        and inserting ``first 6 calendar years''; and
          (3) in subsection (h) by striking ``September 30, 2017'' and 
        inserting ``September 30, 2023''.

SEC. 504. IMPROVED NOTIFICATION OF INSECTICIDE USE.

  Section 42303(b) of title 49, United States Code, is amended to read 
as follows:
  ``(b) Required Disclosures.--An air carrier, foreign air carrier, or 
ticket agent selling, in the United States, a ticket for a flight in 
foreign air transportation to a country listed on the internet website 
established under subsection (a) shall--
          ``(1) disclose, on its own internet website or through other 
        means, that the destination country may require the air carrier 
        or foreign air carrier to treat an aircraft passenger cabin 
        with insecticides prior to the flight or to apply an aerosol 
        insecticide in an aircraft cabin used for such a flight when 
        the cabin is occupied with passengers; and
          ``(2) refer the purchaser of the ticket to the internet 
        website established under subsection (a) for additional 
        information.''.

SEC. 505. ADVERTISEMENTS AND DISCLOSURE OF FEES FOR PASSENGER AIR 
                    TRANSPORTATION.

  (a) Full Fare Advertising.--
          (1) In general.--Section 41712 of title 49, United States 
        Code, is amended by adding at the end the following:
  ``(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 fees and taxes 
                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 website or a 
                mobile application, 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 fees and taxes.
                  ``(B) Covered entity.--The term `covered entity' 
                means an air carrier, including an indirect air 
                carrier, foreign air 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.''.
          (2) Limitation on statutory construction.--Nothing in the 
        amendment made by paragraph (1) may be construed to affect any 
        obligation of a person that sells air transportation to 
        disclose the total cost of the air transportation, including 
        government-imposed fees and taxes, prior to purchase of the air 
        transportation.
          (3) Regulations.--Not later than 120 days after the date of 
        enactment of this Act, the Secretary of Transportation shall 
        issue final regulations to carry out the amendment made by 
        paragraph (1).
          (4) Effective date.--This subsection, and the amendments made 
        by this subsection, shall take effect on the earlier of--
                  (A) the effective date of regulations issued under 
                paragraph (3); and
                  (B) the date that is 180 days after the date of 
                enactment of this Act.
  (b) Disclosure of Fees.--Section 41712 of title 49, United States 
Code, as amended by this section, is further amended by adding at the 
end the following:
  ``(e) Disclosure of Fees.--
          ``(1) In general.--It shall be an unfair or deceptive 
        practice under subsection (a) for any air carrier, foreign air 
        carrier, or ticket agent to fail to include, in an internet 
        fare quotation for a specific itinerary in air transportation 
        selected by a consumer--
                  ``(A) a clear and prominent statement that additional 
                fees for checked baggage and carry-on baggage may 
                apply; and
                  ``(B) a prominent link that connects directly to a 
                list of all such fees.
          ``(2) Savings provision.--Nothing in this subsection may be 
        construed to derogate or limit any responsibilities of an air 
        carrier, foreign air carrier, or ticket agent under section 
        399.85 of title 14, Code of Federal Regulations, or any 
        successor provision.''.

SEC. 506. INVOLUNTARILY BUMPING PASSENGERS AFTER AIRCRAFT BOARDED.

  Section 41712 of title 49, United States Code, as amended by this 
Act, is further amended by adding at the end the following:
  ``(f) Involuntarily Denied Boarding After Aircraft Boarded.--
          ``(1) In general.--It shall be an unfair or deceptive 
        practice under subsection (a) for an air carrier or foreign air 
        carrier subject to part 250 of title 14, Code of Federal 
        Regulations, to involuntarily deplane a revenue passenger 
        onboard an aircraft, if the revenue passenger--
                  ``(A) is traveling on a confirmed reservation; and
                  ``(B) checked-in for the relevant flight prior to the 
                check-in deadline.
          ``(2) Savings provision.--Nothing in this subsection may be 
        construed to limit the authority of an air carrier, foreign air 
        carrier, or airman to remove a passenger in accordance with--
                  ``(A) section 91.3, 121.533(d), or 121.580 of title 
                14, Code of Federal Regulations, or any successor 
                provision; or
                  ``(B) any other applicable Federal, State, or local 
                law.''.

SEC. 507. AVAILABILITY OF CONSUMER RIGHTS INFORMATION.

  Section 42302(b) of title 49, United States Code, is amended--
          (1) in the matter preceding paragraph (1) by striking ``on 
        the'' and inserting ``in a prominent place on the homepage of 
        the primary'';
          (2) in paragraph (2) by striking ``and'' at the end;
          (3) in paragraph (3) by striking the period at the end and 
        inserting ``; and''; and
          (4) by adding at the end the following:
          ``(4) the air carrier's customer service plan.''.

SEC. 508. CONSUMER COMPLAINTS HOTLINE.

  Section 42302 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(d) Use of New Technologies.--The Secretary shall periodically 
evaluate the benefits of using mobile phone applications or other 
widely used technologies to provide new means for air passengers to 
communicate complaints in addition to the telephone number established 
under subsection (a) and shall provide such new means as the Secretary 
determines appropriate.''.

SEC. 509. WIDESPREAD DISRUPTIONS.

  (a) In General.--Chapter 423 of title 49, United States Code, is 
amended by adding at the end the following:

``Sec. 42304. Widespread disruptions

  ``(a) General Requirements.--In the event of a widespread disruption, 
a covered air carrier shall immediately publish, via a prominent link 
on the air carrier's public internet website, a clear statement 
indicating whether, with respect to a passenger of the air carrier 
whose travel is interrupted as a result of the widespread disruption, 
the air carrier will--
          ``(1) provide for hotel accommodations;
          ``(2) arrange for ground transportation;
          ``(3) provide meal vouchers;
          ``(4) arrange for air transportation on another air carrier 
        or foreign air carrier to the passenger's destination; and
          ``(5) provide for sleeping facilities inside the airport 
        terminal.
  ``(b) Definitions.--In this section, the following definitions apply:
          ``(1) Widespread disruption.--The term `widespread 
        disruption' means, with respect to a covered air carrier, the 
        interruption of all or the overwhelming majority of the air 
        carrier's systemwide flight operations, including flight delays 
        and cancellations, as the result of the failure of 1 or more 
        computer systems or computer networks of the air carrier.
          ``(2) Covered air carrier.--The term `covered air carrier' 
        means an air carrier that provides scheduled passenger air 
        transportation by operating an aircraft that as originally 
        designed has a passenger capacity of 30 or more seats.
  ``(c) Savings Provision.--Nothing in this section may be construed to 
modify, abridge, or repeal any obligation of an air carrier under 
section 42301.''.
  (b) Conforming Amendment.--The analysis for chapter 423 of title 49, 
United States Code, is amended by adding at the end the following:

``42304. Widespread disruptions.''.

SEC. 510. INVOLUNTARILY DENIED BOARDING COMPENSATION.

  Not later than 60 days after the date of enactment of this Act, the 
Secretary of Transportation shall issue a final rule to revise part 250 
of title 14, Code of Federal Regulations, to clarify that--
          (1) there is not a maximum level of compensation an air 
        carrier or foreign air carrier may pay to a passenger who is 
        involuntarily denied boarding as the result of an oversold 
        flight;
          (2) the compensation levels set forth in that part are the 
        minimum levels of compensation an air carrier or foreign air 
        carrier must pay to a passenger who is involuntarily denied 
        boarding as the result of an oversold flight; and
          (3) an air carrier or foreign air carrier must proactively 
        offer to pay compensation to a passenger who is voluntarily or 
        involuntarily denied boarding on an oversold flight, rather 
        than waiting until the passenger requests the compensation.

SEC. 511. CONSUMER INFORMATION ON ACTUAL FLIGHT TIMES.

  (a) Study.--The Secretary of Transportation shall conduct a study on 
the feasibility and advisability of modifying regulations contained in 
section 234.11 of title 14, Code of Federal Regulations, to ensure 
that--
          (1) a reporting carrier (including its contractors), during 
        the course of a reservation or ticketing discussion or other 
        inquiry, discloses to a consumer upon reasonable request the 
        projected period between the actual wheels-off and wheels-on 
        times for a reportable flight; and
          (2) a reporting carrier displays, on the public internet 
        website of the carrier, information on the actual wheels-off 
        and wheels-on times during the most recent calendar month for a 
        reportable flight.
  (b) Definitions.--In this section, the terms ``reporting carrier'' 
and ``reportable flight'' have the meanings given those terms in 
section 234.2 of title 14, Code of Federal Regulations (as in effect on 
the date of enactment of this Act).
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Transportation 
and Infrastructure of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate a report on the 
results of the study.

SEC. 512. ADVISORY COMMITTEE FOR TRANSPARENCY IN AIR AMBULANCE 
                    INDUSTRY.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary of Transportation shall establish an 
advisory committee to make recommendations for a rulemaking--
          (1) to require air ambulance operators to clearly disclose 
        charges for air transportation services separately from charges 
        for non-air transportation services within any invoice or bill; 
        and
          (2) to provide other consumer protections for customers of 
        air ambulance operators.
  (b) Composition of the Advisory Committee.--The advisory committee 
shall be composed of the following members:
          (1) The Secretary of Transportation.
          (2) 1 representative, to be appointed by the Secretary, of 
        each of the following:
                  (A) Each relevant Federal agency, as determined by 
                the Secretary.
                  (B) Air ambulance operators.
                  (C) State insurance regulators.
                  (D) Health insurance providers.
                  (E) Consumer groups.
  (c) Recommendations.--The advisory committee shall make 
recommendations with respect to each of the following:
          (1) Cost-allocation methodologies needed to ensure that 
        charges for air transportation services are separated from 
        charges for non-air transportation services.
          (2) Cost- or price-allocation methodologies to prevent 
        commingling of charges for air transportation services and 
        charges for non-air transportation services in bills and 
        invoices.
          (3) Formats for bills and invoices to ensure that customers 
        and State insurance regulators can clearly distinguish between 
        charges for air transportation services and charges for non-air 
        transportation services.
          (4) Data or industry references related to aircraft operating 
        costs to be used in determining the proper allocation of 
        charges for air transportation services and charges for non-air 
        transportation services.
          (5) Guidance materials to instruct States, political 
        subdivisions of States, and political authorities of 2 or more 
        States on referring to the Secretary allegations of unfair or 
        deceptive practices or unfair methods of competition by air 
        ambulance operators.
          (6) Protections for customers of air ambulance operators, 
        after consideration of the circumstances in which the services 
        of air ambulance operators are used.
          (7) Protections of proprietary cost data from inappropriate 
        public disclosure.
          (8) Such other matters as the Secretary determines necessary 
        or appropriate.
  (d) Report.--Not later than 180 days after the date of the first 
meeting of the advisory committee, the advisory committee shall submit 
to the Secretary, the Committee on Transportation and Infrastructure of 
the House of Representatives, and the Committee on Commerce, Science, 
and Transportation of the Senate a report containing the 
recommendations made under subsection (c).
  (e) Rulemaking.--Not later than 180 days after the date of receipt of 
the report under subsection (d), the Secretary shall consider the 
recommendations of the advisory committee and issue a final rule--
          (1) to require air ambulance operators to clearly disclose 
        charges for air transportation services separately from charges 
        for non-air transportation services within any invoice or bill; 
        and
          (2) to provide other consumer protections for customers of 
        air ambulance operators.
  (f) Definitions.--In this section, the following definitions apply:
          (1) Air ambulance operator.--The term ``air ambulance 
        operator'' means an air carrier operating pursuant to part 135 
        of title 14, Code of Federal Regulations, that provides 
        medical, ambulance, or related services.
          (2) Non-air transportation services.--The term ``non-air 
        transportation services'' means those services provided by air 
        ambulance operators but not other air carriers operating 
        pursuant to part 135 of title 14, Code of Federal Regulations.
  (g) Termination.--The advisory committee shall terminate on the date 
of submission of the report under subsection (d).
  (h) Nature of Air Ambulance Services.--The non-air transportation 
services of air ambulance operators and prices thereof are neither 
services nor prices of an air carrier for purposes of section 41713 of 
title 49, United States Code.

SEC. 513. AIR AMBULANCE COMPLAINTS.

  (a) Consumer Complaints.--Section 42302 of title 49, United States 
Code, is amended--
          (1) in subsection (a) by inserting ``(including 
        transportation by air ambulance)'' after ``air 
        transportation'';
          (2) in subsection (b)--
                  (A) in the matter preceding paragraph (1)--
                          (i) by inserting ``, and an air ambulance 
                        operator,'' after ``passenger seats''; and
                          (ii) by inserting ``or operator'' after 
                        ``Internet Web site of the carrier''; and
                  (B) in paragraph (2) by inserting ``or operator'' 
                after ``mailing address of the air carrier''; and
          (3) by striking subsection (c) and inserting the following:
  ``(c) Notice to Passengers on Boarding or Billing Documentation.--
          ``(1) Air carriers and foreign air carriers.--An air carrier 
        or foreign air carrier providing scheduled air transportation 
        using any aircraft that as originally designed has a passenger 
        capacity of 30 or more passenger seats shall include the 
        hotline telephone number established under subsection (a) on--
                  ``(A) prominently displayed signs of the carrier at 
                the airport ticket counters in the United States where 
                the air carrier operates; and
                  ``(B) any electronic confirmation of the purchase of 
                a passenger ticket for air transportation issued by the 
                air carrier.
          ``(2) Air ambulance operators.--An air ambulance operator 
        shall include the hotline telephone number established under 
        subsection (a) on any invoice, bill, or other communication 
        provided to a passenger or customer of the operator.''.
  (b) Unfair and Deceptive Practices and Unfair Methods of 
Competition.--Section 41712(a) of title 49, United States Code, is 
amended--
          (1) by inserting ``air ambulance customer,'' after ``foreign 
        air carrier,'' the first place it appears; and
          (2) by adding at the end the following: ``In this subsection, 
        the term `air carrier' includes an air ambulance operator and 
        the term `air transportation' includes any transportation 
        provided by an air ambulance.''.

SEC. 514. PASSENGER RIGHTS.

  (a) Guidelines.--Not later than 90 days after the date of enactment 
of this Act, the Secretary of Transportation shall require each air 
carrier to submit for approval a 1-page document that accurately 
describes the rights of passengers in air transportation, including 
guidelines for the following:
          (1) Compensation (regarding rebooking options, refunds, 
        meals, and lodging) for flight delays of various lengths.
          (2) Compensation (regarding rebooking options, refunds, 
        meals, and lodging) for flight cancellations.
          (3) Compensation for mishandled baggage, including delayed, 
        damaged, pilfered, or lost baggage.
          (4) Voluntary relinquishment of a ticketed seat due to 
        overbooking or priority of other passengers.
          (5) Involuntary denial of boarding and forced removal for 
        whatever reason, including for safety and security reasons.
  (b) Approval of Guidelines.--Not later than 90 days after each air 
carrier submits its guidelines for approval to the Secretary under 
subsection (a), the air carrier shall make available such 1-page 
document on its website.

            Subtitle B--Aviation Consumers With Disabilities

SEC. 541. SELECT SUBCOMMITTEE.

  Section 411 of the FAA Modernization and Reform Act of 2012 (49 
U.S.C. 42301 prec. note), as amended by this Act, is further amended--
          (1) by redesignating subsections (g) and (h) as subsections 
        (h) and (i), respectively; and
          (2) by inserting after subsection (f) the following:
  ``(g) Select Subcommittee for Aviation Consumers With Disabilities.--
          ``(1) In general.--The Secretary shall establish a select 
        subcommittee of the advisory committee to advise the Secretary 
        and the advisory committee on issues related to the air travel 
        needs of passengers with disabilities.
          ``(2) Duties.--The select subcommittee shall--
                  ``(A) identify the disability-related access barriers 
                encountered by passengers with disabilities;
                  ``(B) determine the extent to which the programs and 
                activities of the Department of Transportation are 
                addressing the barriers identified under subparagraph 
                (A);
                  ``(C) recommend consumer protection improvements 
                related to the air travel experience of passengers with 
                disabilities;
                  ``(D) advise the Secretary with regard to the 
                implementation of section 41705 of title 49, United 
                States Code; and
                  ``(E) conduct such other activities as the Secretary 
                considers necessary to carry out this subsection.
          ``(3) Membership.--
                  ``(A) Composition.--The select subcommittee shall be 
                composed of members appointed by the Secretary, 
                including at least 1 individual representing each of 
                the following:
                          ``(i) National disability organizations.
                          ``(ii) Air carriers and foreign air carriers 
                        with flights in air transportation.
                          ``(iii) Airport operators.
                          ``(iv) Contractor service providers.
                  ``(B) Inclusion.--A member of the select subcommittee 
                may also be a member of the advisory committee.
          ``(4) Reports.--
                  ``(A) In general.--Not later than 1 year after the 
                date of establishment of the select subcommittee, the 
                select subcommittee shall submit to the advisory 
                committee and the Secretary a report on the air travel 
                needs of passengers with disabilities that includes--
                          ``(i) an assessment of existing disability-
                        related access barriers and any emerging 
                        disability-related access barriers that will 
                        likely be an issue in the next 5 years;
                          ``(ii) an evaluation of the extent to which 
                        the programs and activities of the Department 
                        of Transportation are eliminating disability-
                        related access barriers;
                          ``(iii) a description of consumer protection 
                        improvements related to the air travel 
                        experience of passengers with disabilities; and
                          ``(iv) any recommendations for legislation, 
                        regulations, or other actions that the select 
                        subcommittee considers appropriate.
                  ``(B) Report to congress.--Not later than 60 days 
                after the date on which the Secretary receives the 
                report under subparagraph (A), the Secretary shall 
                submit to Congress a copy of the report, including any 
                additional findings or recommendations that the 
                Secretary considers appropriate.
          ``(5) Chairperson.--The Secretary shall designate, from among 
        the individuals appointed under paragraph (3), an individual to 
        serve as chairperson of the select subcommittee.
          ``(6) Vacancies and travel expenses.--Subsections (c) and (d) 
        shall apply to the select subcommittee.
          ``(7) Termination.--The select subcommittee established under 
        this subsection shall terminate upon submission of the report 
        required under paragraph (4)(A).''.

SEC. 542. AVIATION CONSUMERS WITH DISABILITIES STUDY.

  (a) Study.--Not later than 180 days after the date of enactment of 
this Act, the Comptroller General of the United States shall conduct a 
study that includes--
          (1) a review of airport accessibility best practices for 
        individuals with disabilities, including best practices that 
        improve infrastructure facilities and communications methods, 
        including those related to wayfinding, amenities, and passenger 
        care;
          (2) a review of air carrier and airport training policies 
        related to section 41705 of title 49, United States Code;
          (3) a review of air carrier training policies related to 
        properly assisting passengers with disabilities; and
          (4) a review of accessibility best practices that exceed 
        those recommended under Public Law 90-480 (popularly known as 
        the Architectural Barriers Act of 1968; 42 U.S.C. 4151 et 
        seq.), the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), 
        the Air Carrier Access Act of 1986 (Public Law 99-435; 100 
        Stat. 1080 et seq.), and the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12101 et seq.).
  (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General shall submit to the Secretary of 
Transportation, the Committee on Transportation and Infrastructure of 
the House of Representatives, and the Committee on Commerce, Science, 
and Transportation of the Senate a report on the study, including 
findings and recommendations.

SEC. 543. FEASIBILITY STUDY ON IN-CABIN WHEELCHAIR RESTRAINT SYSTEMS.

  (a) Study.--Not later than 2 years after the date of enactment of 
this Act, the Secretary of Transportation, in consultation with the 
Architectural and Transportation Barriers Compliance Board, aircraft 
manufacturers, and air carriers, shall conduct a study to determine--
          (1) the feasibility of in-cabin wheelchair restraint systems; 
        and
          (2) if feasible, the ways in which individuals with 
        significant disabilities using wheelchairs, including power 
        wheelchairs, can be accommodated with in-cabin wheelchair 
        restraint systems.
  (b) Report.--Not later than 1 year after the initiation of the study 
under subsection (a), the Secretary of Transportation shall submit to 
the Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the findings of the study.

SEC. 544. ACCESS ADVISORY COMMITTEE RECOMMENDATIONS.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Transportation shall issue a notice of 
proposed rulemaking addressing--
          (1) accommodations for air travelers with disabilities with 
        respect to in-flight entertainment;
          (2) accessible lavatories on single-aisle aircraft; and
          (3) service animals.
  (b) Rulemaking.--Not later than 1 year after the date on which the 
notice of proposed rulemaking is issued, the Secretary shall publish a 
final rule based on such notice.

                Subtitle C--Small Community Air Service

SEC. 551. ESSENTIAL AIR SERVICE AUTHORIZATION.

  Section 41742(a)(2) of title 49, United States Code, is amended by 
striking ``$150,000,000 for fiscal year 2011'' and all that follows 
before ``to carry out'' and inserting ``$178,000,000 for fiscal year 
2018, $182,000,000 for fiscal year 2019, $185,000,000 for fiscal year 
2020, $327,000,000 for fiscal year 2021, $337,000,000 for fiscal year 
2022, and $347,000,000 for fiscal year 2023''.

SEC. 552. EXTENSION OF FINAL ORDER ESTABLISHING MILEAGE ADJUSTMENT 
                    ELIGIBILITY.

  Section 409(d) of the Vision 100--Century of Aviation Reauthorization 
Act (49 U.S.C. 41731 note) is amended by striking ``September 30, 
2017'' and inserting ``September 30, 2023''.

SEC. 553. STUDY ON ESSENTIAL AIR SERVICE REFORM.

  (a) Study.--
          (1) In general.--The Comptroller General of the United States 
        shall conduct a study on the effects of section 6 of the 
        Airport and Airway Extension Act of 2011, Part IV (Public Law 
        112-27), section 421 of the FAA Modernization and Reform Act of 
        2012 (Public Law 112-95), and other relevant Federal laws 
        enacted after 2010, including the amendments made by those 
        laws, on the Essential Air Service program.
          (2) Scope.--In conducting the study under paragraph (1), the 
        Comptroller General shall analyze, at a minimum--
                  (A) the impact of each relevant Federal law, 
                including the amendments made by each law, on the 
                Essential Air Service program;
                  (B) what actions communities and air carriers have 
                taken to reduce ticket prices or increase enplanements 
                as a result of each law;
                  (C) the issuance of waivers by the Secretary under 
                section 41731(e) of title 49, United States Code;
                  (D) whether budgetary savings resulted from each law; 
                and
                  (E) options for further reform of the Essential Air 
                Service program.
  (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Comptroller General shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report on the results of the study conducted under subsection (a).

SEC. 554. SMALL COMMUNITY AIR SERVICE.

  (a) Eligibility.--Section 41743(c) of title 49, United States Code, 
is amended--
          (1) by striking paragraph (1) and inserting the following:
          ``(1) Size.--On the date of submission of the relevant 
        application under subsection (b), the airport serving the 
        community or consortium--
                  ``(A) is not larger than a small hub airport, as 
                determined using the Department of Transportation's 
                most recently published classification; and
                  ``(B) has--
                          ``(i) insufficient air carrier service; or
                          ``(ii) unreasonably high air fares.'';
          (2) in paragraph (4)--
                  (A) by striking ``once,'' and inserting ``once in a 
                10-year period,''; and
                  (B) by inserting ``at any time'' after ``different 
                project''; and
          (3) in paragraph (5)--
                  (A) by redesignating subparagraphs (E) and (F) as 
                subparagraphs (F) and (G), respectively; and
                  (B) by inserting after subparagraph (D) the 
                following:
                  ``(E) the assistance will be used to help restore 
                scheduled passenger air service that has been 
                terminated;''.
  (b) Authorization of Appropriations.--Section 41743(e)(2) of title 
49, United States Code, is amended to read as follows:
          ``(2) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary $10,000,000 for each of 
        fiscal years 2018 through 2023 to carry out this section, of 
        which $4,800,000 per fiscal year shall be used to carry out the 
        pilot program established under subsection (i). Such sums shall 
        remain available until expended.''.
  (c) Regional Air Transportation Pilot Program.--Section 41743 of 
title 49, United States Code, is amended by adding at the end the 
following:
  ``(i) Regional Air Transportation Pilot Program.--
          ``(1) Establishment.--The Secretary shall establish a 
        regional air transportation pilot program to provide operating 
        assistance to air carriers in order to provide air service to 
        communities not receiving sufficient air carrier service.
          ``(2) Grants.--The Secretary shall provide grants under the 
        program to encourage and maintain air service at reasonable 
        airfares between communities that have experienced, as 
        determined by the Secretary, significant declines in air 
        service.
          ``(3) Application required.--In order to participate in the 
        program, a State, local government, economic development 
        authority, or other public entity shall submit to the Secretary 
        an application, in a manner that the Secretary prescribes, that 
        contains--
                  ``(A) an identification of an air carrier that has 
                provided a written agreement to provide the air service 
                in partnership with the applicant;
                  ``(B) assurances that the applicant will provide the 
                non-Federal share and that the non-Federal share is not 
                derived from airport revenue;
                  ``(C) a proposed route structure serving not more 
                than 8 communities; and
                  ``(D) a timeline for commencing the air service to 
                the communities within the proposed route structure.
          ``(4) Criteria for participation.--The Secretary may approve 
        up to 3 applications each fiscal year, subject to the 
        availability of funds, if the Secretary determines that--
                  ``(A) the proposal of the applicant can reasonably be 
                expected to encourage and improve levels of air service 
                between the relevant communities;
                  ``(B) the applicant has adequate financial resources 
                to ensure the commitment to the communities;
                  ``(C) the airports serving the communities are 
                nonhub, small hub, or medium hub airports, as 
                determined using the Department of Transportation's 
                most recently published classifications; and
                  ``(D) the air carrier commits to serving the 
                communities for at least 2 years.
          ``(5) Priorities.--The Secretary shall prioritize 
        applications that--
                  ``(A) would initiate new or reestablish air service 
                in communities where air fares are higher than the 
                average air fares for all communities;
                  ``(B) are more likely to result in self-sustaining 
                air service at the end of the program;
                  ``(C) request a Federal share lower than 50 percent; 
                and
                  ``(D) propose to use grant funds in a timely fashion.
          ``(6) Federal share.--The Federal share of the cost of 
        operating assistance provided under the program may not exceed 
        50 percent.
          ``(7) Sunset.--This subsection shall cease to be effective on 
        October 1, 2023.''.

SEC. 555. AIR TRANSPORTATION TO NONELIGIBLE PLACES.

  (a) Definitions.--Section 41731(a)(1)(A)(ii) of title 49, United 
States Code, is amended by striking ``Wendell H. Ford Aviation 
Investment and Reform Act for the 21st Century,'' and inserting ``FAA 
Extension, Safety, and Security Act of 2016 (Public Law 114-190),''.
  (b) Program Sunset.--Section 41736 of title 49, United States Code, 
is amended by adding at the end the following:
  ``(h) Sunset.--
          ``(1) Proposals.--No proposal under subsection (a) may be 
        accepted by the Secretary after the date of enactment of this 
        subsection.
          ``(2) Program.--The Secretary may not provide any 
        compensation under this section after the date that is 2 years 
        after the date of enactment of this subsection.''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. REVIEW OF FAA STRATEGIC CYBERSECURITY PLAN.

  (a) In General.--Not later than 120 days after the date on which the 
Interim Chief Executive Officer (CEO) of the American Air Navigation 
Services Corporation is hired, the Administrator of the Federal 
Aviation Administration, in consultation with the Interim CEO (or the 
CEO of the American Air Navigation Services Corporation, as 
appropriate), shall initiate a review of the comprehensive and 
strategic framework of principles and policies (referred to in this 
section as the ``framework'') developed pursuant to section 2111 of the 
FAA Extension, Safety, and Security Act of 2016 (49 U.S.C. 44903 note).
  (b) Contents.--In undertaking the review, the Administrator shall--
          (1) determine how the framework should be updated to reflect 
        the transfer from the Federal Aviation Administration to the 
        American Air Navigation Services Corporation of operational 
        control of air traffic services within United States airspace 
        and international airspace delegated to the United States; and
          (2) modify the framework to support the Federal Aviation 
        Administration in establishing cybersecurity standards to 
        assist the American Air Navigation Services Corporation in 
        responsibilities associated with managing air traffic services 
        in a secure manner after the date of transfer (as defined in 
        section 90101(a) of title 49, United States Code, as added by 
        this Act).
  (c) Report to Congress.--Not later than 120 days after initiating the 
review required by subsection (a), the Administrator shall submit to 
the Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the results of the review, 
including a description of any modifications made to the framework.

SEC. 602. CONSOLIDATION AND REALIGNMENT OF FAA SERVICES AND FACILITIES.

  (a) In General.--Section 804(a) of the FAA Modernization and Reform 
Act of 2012 (49 U.S.C. 44501 note) is amended--
          (1) in paragraph (2) by striking ``The purpose of the report 
        shall be--'' and all that follows through ``(B) to reduce'' and 
        inserting ``The purpose of the report shall be to reduce''; and
          (2) by striking paragraph (4) and inserting the following:
          ``(4) Input.--The report shall be prepared by the 
        Administrator (or the Administrator's designee) with the 
        participation of--
                  ``(A) representatives of labor organizations 
                representing air traffic control system employees of 
                the FAA; and
                  ``(B) industry stakeholders.''.
  (b) FAA Air Traffic Control Facility Consolidation and Realignment 
Projects.--Notwithstanding section 90317(c) of title 49, United States 
Code, as added by this Act, the Secretary of Transportation shall 
continue to carry out any consolidation or realignment project 
commenced under section 804 of the FAA Modernization and Reform Act of 
2012.

SEC. 603. FAA REVIEW AND REFORM.

  (a) Agency Report.--Not later than 60 days after the date of 
enactment of this Act, the Administrator of the Federal Aviation 
Administration shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate a detailed analysis 
of any actions taken to address the findings and recommendations 
included in the report required under section 812(d) of the FAA 
Modernization and Reform Act of 2012 (49 U.S.C. 106 note), including--
          (1) consolidating, phasing-out, or eliminating duplicative 
        positions, programs, roles, or offices;
          (2) eliminating or streamlining wasteful practices;
          (3) eliminating or phasing-out redundant, obsolete, or 
        unnecessary functions;
          (4) reforming and streamlining inefficient processes so that 
        the activities of the Administration are completed in an 
        expedited and efficient manner; and
          (5) reforming or eliminating ineffectual or outdated 
        policies.
  (b) Additional Review.--Not later than 1 year after the date of 
transfer, as defined in section 90101(a) of title 49, United States 
Code, as added by this Act, the Administrator shall undertake and 
complete a thorough review of each program, office, and organization 
within the Administration to identify--
          (1) duplicative positions, programs, roles, or offices;
          (2) wasteful practices;
          (3) redundant, obsolete, or unnecessary functions;
          (4) inefficient processes; and
          (5) ineffectual or outdated policies.
  (c) Actions To Streamline and Reform FAA.--Not later than 60 days 
after the date of completion of the review under subsection (b), the 
Administrator shall undertake such actions as may be necessary to 
address the findings of the Administrator under such subsection.
  (d) Report to Congress.--Not later than 120 days after the date of 
completion of the review under subsection (b), the Administrator shall 
submit to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the actions taken by the 
Administrator pursuant to subsection (c), including any recommendations 
for legislative or administrative actions.

SEC. 604. AVIATION FUEL.

  (a) Use of Unleaded Aviation Gasoline.--The Administrator of the 
Federal Aviation Administration shall allow the use of an unleaded 
aviation gasoline in an aircraft as a replacement for a leaded gasoline 
if the Administrator--
          (1) determines that an unleaded aviation gasoline qualifies 
        as a replacement for an approved leaded gasoline;
          (2) identifies the aircraft and engines that are eligible to 
        use the qualified replacement unleaded gasoline; and
          (3) adopts a process (other than the traditional means of 
        certification) to allow eligible aircraft and engines to 
        operate using qualified replacement unleaded gasoline in a 
        manner that ensures safety.
  (b) Timing.--The Administrator shall adopt the process described in 
subsection (a)(3) not later than 180 days after the later of--
          (1) the date of completion of the Piston Aviation Fuels 
        Initiative of the Administration; or
          (2) the date of publication of an American Society for 
        Testing and Materials Production Specification for an unleaded 
        aviation gasoline.
  (c) Sense of Congress.--It is the sense of Congress that the Piston 
Aviation Fuels Initiative of the Administration and the American 
Society for Testing and Materials should work to find an appropriate 
unleaded aviation gasoline by January 1, 2023.

SEC. 605. RIGHT TO PRIVACY WHEN USING AIR TRAFFIC CONTROL SYSTEM.

  Notwithstanding any other provision of law, the Administrator of the 
Federal Aviation Administration shall, upon request of a private 
aircraft owner or operator, block the registration number of the 
aircraft of the owner or operator from any public dissemination or 
display, except in data made available to a Government agency, for the 
noncommercial flights of the owner or operator.

SEC. 606. AIR SHOWS.

  On an annual basis, the Administrator of the Federal Aviation 
Administration shall work with representatives of Administration-
approved air shows, the general aviation community, and stadiums and 
other large outdoor events and venues to identify and resolve, to the 
maximum extent practicable, scheduling conflicts between 
Administration-approved air shows and large outdoor events and venues 
where--
          (1) flight restrictions will be imposed pursuant to section 
        521 of title V of division F of Public Law 108-199 (118 Stat. 
        343); or
          (2) any other restriction will be imposed pursuant to Federal 
        Aviation Administration Flight Data Center Notice to Airmen 4/
        3621 (or any successor notice to airmen).

SEC. 607. PART 91 REVIEW, REFORM, AND STREAMLINING.

  (a) Establishment of Task Force.--Not later than 90 days after the 
date of enactment of this Act, the Administrator of the Federal 
Aviation Administration shall establish a task force comprised of 
representatives of the general aviation industry who regularly perform 
part 91 operations, labor unions (including those representing FAA 
aviation safety inspectors and FAA aviation safety engineers), 
manufacturers, and the Government to--
          (1) conduct an assessment of the FAA oversight and 
        authorization processes and requirements for aircraft under 
        part 91; and
          (2) make recommendations to streamline the applicable 
        authorization and approval processes, improve safety, and 
        reduce regulatory cost burdens and delays for the FAA and 
        aircraft owners and operators who operate pursuant to part 91.
  (b) Contents.--In conducting the assessment and making 
recommendations under subsection (a), the task force shall consider--
          (1) process reforms and improvements to allow the FAA to 
        review and approve applications in a fair and timely fashion;
          (2) the appropriateness of requiring an authorization for 
        each experimental aircraft rather than using a broader all 
        makes and models approach;
          (3) ways to improve the timely response to letters of 
        authorization applications for aircraft owners and operators 
        who operate pursuant to part 91, including setting deadlines 
        and granting temporary or automatic authorizations if deadlines 
        are missed by the FAA;
          (4) methods for enhancing the effective use of delegation 
        systems;
          (5) methods for training the FAA's field office employees in 
        risk-based and safety management system oversight; and
          (6) such other matters related to streamlining part 91 
        authorization and approval processes as the task force 
        considers appropriate.
  (c) Report to Congress.--
          (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall submit to the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate a report on the results of the 
        task force's assessment.
          (2) Contents.--The report shall include an explanation of how 
        the Administrator will--
                  (A) implement the recommendations of the task force;
                  (B) measure progress in implementing the 
                recommendations; and
                  (C) measure the effectiveness of the implemented 
                recommendations.
  (d) Implementation of Recommendations.--Not later than 18 months 
after the date of enactment of this Act, the Administrator shall 
implement the recommendations made under this section.
  (e) Definitions.--In this section, the following definitions apply:
          (1) FAA.--The term ``FAA'' means the Federal Aviation 
        Administration.
          (2) Part 91.--The term ``part 91'' means part 91 of title 14, 
        Code of Federal Regulations.
  (f) Applicable Law.--Public Law 92-463 shall not apply to the task 
force.
  (g) Sunset.--The task force shall terminate on the day the 
Administrator submits the report required under subsection (c).

SEC. 608. AIRCRAFT REGISTRATION.

  Not later than 180 days after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall initiate a 
rulemaking to increase the duration of aircraft registrations for 
noncommercial general aviation aircraft to 10 years.

SEC. 609. AIR TRANSPORTATION OF LITHIUM CELLS AND BATTERIES.

  (a) Cooperative Efforts To Ensure Compliance With Safety 
Regulations.--
          (1) In general.--The Secretary of Transportation, in 
        coordination with appropriate Federal agencies, shall carry out 
        cooperative efforts to ensure that shippers who offer lithium 
        ion and lithium metal batteries for air transport to or from 
        the United States comply with U.S. Hazardous Materials 
        Regulations and ICAO Technical Instructions.
          (2) Cooperative efforts.--The cooperative efforts the 
        Secretary shall carry out pursuant to paragraph (1) include the 
        following:
                  (A) Encouraging training programs at locations 
                outside the United States from which substantial cargo 
                shipments of lithium ion or lithium metal batteries 
                originate for manufacturers, freight forwarders, and 
                other shippers and potential shippers of lithium ion 
                and lithium metal batteries.
                  (B) Working with Federal, regional, and international 
                transportation agencies to ensure enforcement of U.S. 
                Hazardous Materials Regulations and ICAO Technical 
                Instructions with respect to shippers who offer 
                noncompliant shipments of lithium ion and lithium metal 
                batteries.
                  (C) Sharing information, as appropriate, with 
                Federal, regional, and international transportation 
                agencies regarding noncompliant shipments.
                  (D) Pursuing a joint effort with the international 
                aviation community to develop a process to obtain 
                assurances that appropriate enforcement actions are 
                taken to reduce the likelihood of noncompliant 
                shipments, especially with respect to jurisdictions in 
                which enforcement activities historically have been 
                limited.
                  (E) Providing information in brochures and on the 
                internet in appropriate foreign languages and dialects 
                that describes the actions required to comply with U.S. 
                Hazardous Materials Regulations and ICAO Technical 
                Instructions.
                  (F) Developing joint efforts with the international 
                aviation community to promote a better understanding of 
                the requirements of and methods of compliance with U.S. 
                Hazardous Materials Regulations and ICAO Technical 
                Instructions.
          (3) Reporting.--Not later than 120 days after the date of 
        enactment of this Act, and annually thereafter for 2 years, the 
        Secretary shall submit to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of the 
        Senate a report on compliance with the policy set forth in 
        subsection (e) and the cooperative efforts carried out, or 
        planned to be carried out, under this subsection.
  (b) Lithium Battery Air Safety Advisory Committee.--
          (1) Establishment.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary shall establish, in 
        accordance with the requirements of the Federal Advisory 
        Committee Act (5 U.S.C. App.), a lithium ion and lithium metal 
        battery air safety advisory committee (in this subsection 
        referred to as the ``Committee'').
          (2) Duties.--The Committee shall--
                  (A) facilitate communication between manufacturers of 
                lithium ion and lithium metal cells and batteries, 
                manufacturers of products incorporating both large and 
                small lithium ion and lithium metal batteries, air 
                carriers, and the Federal Government regarding the safe 
                air transportation of lithium ion and lithium metal 
                cells and batteries and the effectiveness and economic 
                and social impacts of the regulation of such 
                transportation;
                  (B) provide the Secretary, the Federal Aviation 
                Administration, and the Pipeline and Hazardous 
                Materials Safety Administration with timely information 
                about new lithium ion and lithium metal battery 
                technology and transportation safety practices and 
                methodologies;
                  (C) provide a forum for the Secretary to provide 
                information on and to discuss the activities of the 
                Department of Transportation relating to lithium ion 
                and lithium metal battery transportation safety, the 
                policies underlying the activities, and positions to be 
                advocated in international forums;
                  (D) provide a forum for the Secretary to provide 
                information and receive advice on--
                          (i) activities carried out throughout the 
                        world to communicate and enforce relevant 
                        United States regulations and the ICAO 
                        Technical Instructions; and
                          (ii) the effectiveness of the activities;
                  (E) provide advice and recommendations to the 
                Secretary with respect to lithium ion and lithium metal 
                battery air transportation safety, including how best 
                to implement activities to increase awareness of 
                relevant requirements and their importance to travelers 
                and shippers; and
                  (F) review methods to decrease the risk posed by air 
                shipment of undeclared hazardous materials and efforts 
                to educate those who prepare and offer hazardous 
                materials for shipment via air transport.
          (3) Membership.--The Committee shall be composed of the 
        following members:
                  (A) Individuals appointed by the Secretary to 
                represent--
                          (i) large volume manufacturers of lithium ion 
                        and lithium metal cells and batteries;
                          (ii) domestic manufacturers of lithium ion 
                        and lithium metal batteries or battery packs;
                          (iii) manufacturers of consumer products 
                        powered by lithium ion and lithium metal 
                        batteries;
                          (iv) manufacturers of vehicles powered by 
                        lithium ion and lithium metal batteries;
                          (v) marketers of products powered by lithium 
                        ion and lithium metal batteries;
                          (vi) cargo air service providers based in the 
                        United States;
                          (vii) passenger air service providers based 
                        in the United States;
                          (viii) pilots and employees of air service 
                        providers described in clauses (vi) and (vii);
                          (ix) shippers of lithium ion and lithium 
                        metal batteries for air transportation;
                          (x) manufacturers of battery-powered medical 
                        devices or batteries used in medical devices; 
                        and
                          (xi) employees of the Department of 
                        Transportation, including employees of the 
                        Federal Aviation Administration and the 
                        Pipeline and Hazardous Materials Safety 
                        Administration.
                  (B) Representatives of such other Government 
                departments and agencies as the Secretary determines 
                appropriate.
                  (C) Any other individuals the Secretary determines 
                are appropriate to comply with Federal law.
          (4) Report.--
                  (A) In general.--Not later than 180 days after the 
                establishment of the Committee, the Committee shall 
                submit to the Secretary, the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives, and the Committee on Commerce, 
                Science, and Transportation of the Senate a report 
                that--
                          (i) describes and evaluates the steps being 
                        taken in the private sector and by 
                        international regulatory authorities to 
                        implement and enforce requirements relating to 
                        the safe transportation by air of bulk 
                        shipments of lithium ion cells and batteries; 
                        and
                          (ii) identifies any areas of enforcement or 
                        regulatory requirements for which there is 
                        consensus that greater attention is needed.
                  (B) Independent statements.--Each member of the 
                Committee shall be provided an opportunity to submit an 
                independent statement of views with the report 
                submitted pursuant to subparagraph (A).
          (5) Meetings.--
                  (A) In general.--The Committee shall meet at the 
                direction of the Secretary and at least twice a year.
                  (B) Preparation for icao meetings.--Notwithstanding 
                subparagraph (A), the Secretary shall convene a meeting 
                of the Committee in connection with and in advance of 
                each meeting of the International Civil Aviation 
                Organization, or any of its panels or working groups, 
                addressing the safety of air transportation of lithium 
                ion and lithium metal batteries to brief Committee 
                members on positions to be taken by the United States 
                at such meeting and provide Committee members a 
                meaningful opportunity to comment.
          (6) Termination.--The Committee shall terminate on the date 
        that is 6 years after the date on which the Committee is 
        established.
          (7) Termination of future of aviation advisory committee.--
        The Future of Aviation Advisory Committee shall terminate on 
        the date on which the lithium ion battery air safety advisory 
        committee is established.
  (c) Medical Device Batteries.--
          (1) Limited exceptions to restrictions on air transportation 
        of medical device batteries.--The Secretary shall issue limited 
        exceptions to the restrictions on transportation of lithium ion 
        and lithium metal batteries to allow the shipment on a 
        passenger aircraft of not more than 2 replacement batteries 
        specifically used for a medical device if--
                  (A) the intended destination of the batteries is not 
                serviced daily by cargo aircraft if a battery is 
                required for medically necessary care; or
                  (B) with regard to a shipper of lithium ion or 
                lithium metal batteries for medical devices that cannot 
                comply with a charge limitation in place at the time, 
                each battery is--
                          (i) individually packed in an inner packaging 
                        that completely encloses the battery;
                          (ii) placed in a rigid outer packaging; and
                          (iii) protected to prevent a short circuit.
          (2) Medical device defined.--ln this subsection, the term 
        ``medical device'' means an instrument, apparatus, implement, 
        machine, contrivance, implant, or in vitro reagent, including 
        any component, part, or accessory thereof, which is intended 
        for use in the diagnosis of disease or other conditions, or in 
        the cure, mitigation, treatment, or prevention of disease, in a 
        person.
          (3) Savings clause.--Nothing in this subsection may be 
        construed as expanding or restricting any authority of the 
        Secretary under section 828 of the FAA Modernization and Reform 
        Act of 2012 (49 U.S.C. 44701 note).
  (d) Packaging Improvements.--Not later than 180 days after the date 
of enactment of this Act, the Secretary, in consultation with 
interested stakeholders, shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate an 
evaluation of current practices for the packaging of lithium ion 
batteries and cells for air transportation, including recommendations, 
if any, to improve the packaging of such batteries and cells for air 
transportation in a safe, efficient, and cost-effective manner.
  (e) Department of Transportation Policy on International 
Representation.--It shall be the policy of the Department of 
Transportation to support the participation of industry in all panels 
and working groups of the Dangerous Goods Panel of the International 
Civil Aviation Organization and any other international test or 
standard setting organization that considers proposals on the safety or 
transportation of lithium ion and lithium metal batteries in which the 
United States participates.
  (f) Harmonization With ICAO Technical Instructions.--Pursuant to 
section 828 of the FAA Modernization and Reform Act of 2012 (49 U.S.C. 
44701 note), not later than 30 days after the date of enactment of this 
Act, the Secretary shall conform United States regulations on the air 
transport of lithium cells and batteries with the lithium cells and 
batteries requirements in the 2015-2016 edition of the ICAO Technical 
Instructions (including all addenda), including the revised standards 
adopted by the International Civil Aviation Organization that became 
effective on April 1, 2016.
  (g) Definitions.--In this section, the following definitions apply:
          (1) ICAO technical instructions.--The term ``ICAO Technical 
        Instructions'' has the meaning given that term in section 
        828(c) of the FAA Modernization and Reform Act of 2012 (49 
        U.S.C. 44701 note).
          (2) U.S. hazardous materials regulations.--The term ``U.S. 
        Hazardous Materials Regulations'' means the regulations in 
        parts 100 through 177 of title 49, Code of Federal Regulations 
        (including amendments adopted after the date of enactment of 
        this Act).

SEC. 610. REMOTE TOWER PILOT PROGRAM FOR RURAL AND SMALL COMMUNITIES.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Secretary of Transportation shall establish a pilot 
program under which, upon approval of an application submitted by an 
operator of a public-use airport, the Secretary shall install and 
operate at the airport a remote air traffic control tower in order to 
assess the operational benefits of remote air traffic control towers.
  (b) Applications.--The operator of an airport seeking to participate 
in the pilot program shall submit to the Secretary for approval an 
application that is in such form and contains such information as the 
Secretary may require.
  (c) Selection Criteria.--
          (1) Selection of airports.--From among the applications 
        submitted under subsection (b), the Secretary, after 
        consultation with representatives of labor organizations 
        representing operators and employees of the air traffic control 
        system, shall select for participation in the pilot program 7 
        airports as follows:
                  (A) 1 nonhub, primary airport.
                  (B) 3 nonprimary airports without existing air 
                traffic control towers.
                  (C) 2 airports with air traffic control towers 
                participating in a program established under section 
                47124 of title 49, United States Code.
                  (D) 1 airport selected at the discretion of the 
                Secretary.
          (2) Priority selection.--In selecting from among the 
        applications submitted under subsection (b), the Secretary 
        shall give priority to applicants that can best demonstrate the 
        capabilities and potential of remote air traffic control 
        towers, including applicants proposing to operate multiple 
        remote air traffic control towers from a single facility.
          (3) Authority to reallocate airport selection.--If the 
        Secretary receives an insufficient number of applications, the 
        Secretary may reallocate the distribution of airport sites 
        described in paragraph (1).
  (d) Asset Classification.--For purposes of section 90317 of title 49, 
United States Code, as added by this Act, a remote air traffic control 
tower, including ancillary equipment, installed with Government funds 
pursuant to this section shall be considered to be an air navigation 
facility.
  (e) Safety Risk Management Panel.--
          (1) Safety risk management panel meeting.--Prior to the 
        operational use of a remote air traffic control tower, the 
        Secretary shall convene a safety risk management panel for the 
        tower to address any safety issues with respect to the tower.
          (2) Safety risk management panel best practices.--The safety 
        risk management panels shall be created and utilized in a 
        manner similar to that of safety risk management panels 
        previously established for remote air traffic control towers, 
        taking into account--
                  (A) best practices that have been developed; and
                  (B) operational data from remote air traffic control 
                towers located in the United States.
  (f) Airport Improvement Program.--The pilot program shall be eligible 
for airport improvement funding under chapter 471 of title 49, United 
States Code.
  (g) Possible Expansion of Program.--Not later than 30 days after the 
date that the first remote air traffic control tower is commissioned, 
the Administrator of the Federal Aviation Administration shall 
establish a repeatable process by which future certified remote air 
traffic control tower systems may be commissioned at additional 
airports.
  (h) Definitions.--
          (1) In general.--In this section, the following definitions 
        apply:
                  (A) Air navigation facility.--The term ``air 
                navigation facility'' has the meaning given that term 
                in section 40102(a) of title 49, United States Code.
                  (B) Remote air traffic control tower.--The term 
                ``remote air traffic control tower'' means a remotely 
                operated air navigation facility, including all 
                necessary system components, that provides the 
                functions and capabilities of an air traffic control 
                tower.
          (2) Applicability of other definitions.--The terms ``nonhub 
        airport'', ``primary airport'', and ``public-use airport'' have 
        the meanings given such terms in section 47102 of title 49, 
        United States Code.
  (i) Sunset.--The pilot program shall terminate on the day before the 
date of transfer, as defined in section 90101(a) of title 49, United 
States Code, as added by this Act.

SEC. 611. ENSURING FAA READINESS TO PROVIDE SEAMLESS OCEANIC 
                    OPERATIONS.

  Not later than September 30, 2018, the Secretary of Transportation 
shall make a final investment decision for the implementation of a 
reduced oceanic separation capability that, by March 31, 2019, shall be 
operational and in use providing capabilities at least equivalent to 
that offered in neighboring airspace, and such service shall be 
provided in the same manner as terrestrial surveillance is provided.

SEC. 612. SENSE OF CONGRESS REGARDING WOMEN IN AVIATION.

  It is the sense of Congress that the aviation industry should explore 
all opportunities, including pilot training, science, technology, 
engineering, and mathematics education, and mentorship programs, to 
encourage and support female students and aviators to pursue a career 
in aviation.

SEC. 613. OBSTRUCTION EVALUATION AERONAUTICAL STUDIES.

  The Secretary of Transportation may implement the policy set forth in 
the notice of proposed policy titled ``Proposal to Consider the Impact 
of One Engine Inoperative Procedures in Obstruction Evaluation 
Aeronautical Studies'' published by the Department of Transportation on 
April 28, 2014 (79 Fed. Reg. 23300), only if the policy is adopted 
pursuant to a notice and comment rulemaking and, for purposes of 
Executive Order 12866 (5 U.S.C. 601 note; relating to regulatory 
planning and review), is treated as a significant regulatory action 
within the scope of section 3(f)(1) of such Order.

SEC. 614. AIRCRAFT LEASING.

  Section 44112(b) of title 49, United States Code, is amended--
          (1) by striking ``on land or water''; and
          (2) by inserting ``operational'' before ``control''.

SEC. 615. REPORT ON OBSOLETE TEST EQUIPMENT.

  (a) Report.--Not later than 180 days after the date of enactment of 
this Act, the Administrator of the Federal Aviation Administration 
shall submit to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Commerce, Science, 
and Transportation of the Senate a report on the National Test 
Equipment Program of the Federal Aviation Administration (in this 
section referred to as the ``Program'').
  (b) Contents.--The report shall include--
          (1) a list of all known outstanding requests for test 
        equipment, cataloged by type and location, under the Program;
          (2) a description of the current method under the Program of 
        ensuring calibrated equipment is in place for utilization;
          (3) a plan by the Administrator for appropriate inventory of 
        such equipment;
          (4) the Administrator's recommendations for increasing 
        multifunctionality in future test equipment and all known and 
        foreseeable manufacturer technological advances; and
          (5) a plan to replace, as appropriate, obsolete test 
        equipment throughout the service areas.

SEC. 616. RETIRED MILITARY CONTROLLERS.

  Section 44506(f) of title 49, United States Code, is amended--
          (1) in paragraph (3) by inserting ``except for individuals 
        covered by a program described in paragraph (4),'' after 
        ``section 3307 of title 5,''; and
          (2) by adding at the end the following:
          ``(4) Retired military controllers.--The Administrator may 
        establish a program to provide an original appointment to a 
        position as an air traffic controller for individuals who--
                  ``(A) are on terminal leave pending retirement from 
                active duty military service or have retired from 
                active duty military service within 5 years of applying 
                for the appointment; and
                  ``(B) within 5 years of applying for the appointment, 
                have held either an air traffic control specialist 
                certification or a facility rating according to 
                Administration standards.''.

SEC. 617. PILOTS SHARING FLIGHT EXPENSES WITH PASSENGERS.

  (a) Guidance.--
          (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator of the Federal 
        Aviation Administration shall make publicly available, in a 
        clear and concise format, advisory guidance that describes how 
        a pilot may share flight expenses with passengers in a manner 
        consistent with Federal law, including regulations.
          (2) Examples included.--The guidance shall include examples 
        of--
                  (A) flights for which pilots and passengers may share 
                expenses;
                  (B) flights for which pilots and passengers may not 
                share expenses;
                  (C) the methods of communication that pilots and 
                passengers may use to arrange flights for which 
                expenses are shared; and
                  (D) the methods of communication that pilots and 
                passengers may not use to arrange flights for which 
                expenses are shared.
  (b) Report.--
          (1) In general.--Not later than 180 days after the date on 
        which guidance is made publicly available under subsection (a), 
        the Comptroller General of the United States shall submit to 
        the Committee on Transportation and Infrastructure of the House 
        of Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate a report analyzing Federal policy 
        with respect to pilots sharing flight expenses with passengers.
          (2) Evaluations included.--The report submitted under 
        paragraph (1) shall include an evaluation of--
                  (A) the rationale for such Federal policy;
                  (B) safety and other concerns related to pilots 
                sharing flight expenses with passengers; and
                  (C) benefits related to pilots sharing flight 
                expenses with passengers.

SEC. 618. AVIATION RULEMAKING COMMITTEE FOR PART 135 PILOT REST AND 
                    DUTY RULES.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall convene an aviation rulemaking committee to review, and develop 
findings and recommendations regarding, pilot rest and duty rules under 
part 135 of title 14, Code of Federal Regulations.
  (b) Duties.--The Administrator shall--
          (1) not later than 2 years after the date of enactment of 
        this Act, submit to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of the 
        Senate a report based on the findings of the aviation 
        rulemaking committee; and
          (2) not later than 1 year after the date of submission of the 
        report under paragraph (1), issue a notice of proposed 
        rulemaking based on any consensus recommendations reached by 
        the aviation rulemaking committee.
  (c) Composition.--The aviation rulemaking committee shall consist of 
members appointed by the Administrator, including--
          (1) representatives of industry;
          (2) representatives of aviation labor organizations, 
        including collective bargaining units representing pilots who 
        are covered by part 135 of title 14, Code of Federal 
        Regulations, and subpart K of part 91 of such title; and
          (3) aviation safety experts with specific knowledge of flight 
        crewmember education and training requirements under part 135 
        of such title.
  (d) Considerations.--The Administrator shall direct the aviation 
rulemaking committee to consider--
          (1) recommendations of prior part 135 rulemaking committees;
          (2) accommodations necessary for small businesses;
          (3) scientific data derived from aviation-related fatigue and 
        sleep research;
          (4) data gathered from aviation safety reporting programs;
          (5) the need to accommodate the diversity of operations 
        conducted under part 135; and
          (6) other items, as appropriate.

SEC. 619. METROPOLITAN WASHINGTON AIRPORTS AUTHORITY.

  (a) Findings.--Congress finds that--
          (1) the Metropolitan Washington Airports Authority (in this 
        section referred to as ``MWAA''), which operates Ronald Reagan 
        Washington National Airport and Dulles International Airport by 
        lease with the Department of Transportation, has routinely 
        performed poorly on audits conducted by the Inspector General 
        of the Department of Transportation;
          (2) the responsible stewardship of taxpayer-owned assets by 
        MWAA is of great concern to Congress;
          (3) a March 20, 2015, audit conducted by the Inspector 
        General titled ``MWAA's Office of Audit Does Not Have an 
        Adequate Quality Assurance and Improvement Program'' (Report 
        No. ZA-2015-035) found that MWAA's quality assurance and 
        improvement program did not conform with the standards of the 
        Institute of Internal Auditors; and
          (4) the Inspector General's audit made 7 recommendations to 
        strengthen MWAA governance, its Office of Audit, and its 
        quality assurance and improvement program.
  (b) Implementing Audit Recommendations.--
          (1) Study.--The Inspector General of the Department of 
        Transportation shall conduct a study on MWAA's progress in 
        implementing the recommendations of the audit referred to in 
        subsection (a).
          (2) Report.--The Inspector General shall submit to the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate a report on the study, including 
        the Inspector General's findings, conclusions, and 
        recommendations for strengthening and improving MWAA's Office 
        of Audit.

SEC. 620. TERMINAL AERODROME FORECAST.

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall permit a covered air carrier to operate to or from 
a location in a noncontiguous State without a Terminal Aerodrome 
Forecast or Meteorological Aerodrome Report if--
          (1) such location is determined to be under visual 
        meteorological conditions;
          (2) a current Area Forecast, supplemented by other local 
        weather observations or reports, is available; and
          (3) an alternate airport that has an available Terminal 
        Aerodrome Forecast and weather report is specified.
  (b) Procedures.--A covered air carrier shall--
          (1) have approved procedures for dispatch or release and 
        enroute weather evaluation; and
          (2) operate under instrument flight rules enroute to the 
        destination.
  (c) Covered Air Carrier Defined.--In this section, the term ``covered 
air carrier'' means an air carrier operating in a noncontiguous State 
under part 121 of title 14, Code of Federal Regulations.

SEC. 621. FEDERAL AVIATION ADMINISTRATION EMPLOYEES STATIONED ON GUAM.

  It is the sense of Congress that--
          (1) the Administrator of the Federal Aviation Administration 
        and the Secretary of Defense should seek an agreement that 
        would enable Federal Aviation Administration employees 
        stationed on Guam to have access to Department of Defense 
        hospitals, commissaries, and exchanges on Guam;
          (2) access to these facilities is important to ensure the 
        health and well-being of Federal Aviation Administration 
        employees and their families; and
          (3) in exchange for this access, the Federal Aviation 
        Administration should make payments to cover the applicable 
        administrative costs incurred by the Department of Defense in 
        carrying out the agreement.

SEC. 622. TECHNICAL CORRECTIONS.

  (a) Airport Capacity Enhancement Projects at Congested Airports.--
Section 40104(c) of title 49, United States Code, is amended by 
striking ``section 47176'' and inserting ``section 47175''.
  (b) Passenger Facility Charges.--Section 40117(a)(5) of title 49, 
United States Code, is amended by striking ``charge or charge'' and 
inserting ``charge''.
  (c) Overflights of National Parks.--Section 40128(a)(3) of title 49, 
United States Code, is amended by striking ``under part 91 of the title 
14,'' and inserting ``under part 91 of title 14,''.
  (d) Plans To Address Needs of Families of Passengers Involved in 
Foreign Air Carrier Accidents.--Section 41313(c)(16) of title 49, 
United States Code, is amended by striking ``An assurance that the 
foreign air carrier'' and inserting ``An assurance that''.
  (e) Operations of Carriers.--The analysis for chapter 417 of title 
49, United States Code, is amended by striking the item relating to 
section 41718 and inserting the following:

``41718. Special rules for Ronald Reagan Washington National 
Airport.''.

  (f) Schedules for Certain Transportation of Mail.--Section 41902(a) 
of title 49, United States Code, is amended by striking ``section 
41906'' and inserting ``section 41905''.
  (g) Weighing Mail.--Section 41907 of title 49, United States Code, is 
amended by striking ``and -administrative'' and inserting ``and 
administrative''.
  (h) Structures Interfering With Air Commerce or National Security.--
Section 44718(b)(1) of title 49, United States Code, is amended--
          (1) in the matter preceding subparagraph (A) by striking 
        ``air navigation facilities and equipment'' and inserting ``air 
        or space navigation facilities and equipment''; and
          (2) in subparagraph (A)--
                  (A) in clause (v) by striking ``and'' at the end;
                  (B) by redesignating clause (vi) as clause (vii); and
                  (C) by inserting after clause (v) the following:
                          ``(vi) the impact on launch and reentry for 
                        launch and reentry vehicles arriving or 
                        departing from a launch site or reentry site 
                        licensed by the Secretary of Transportation; 
                        and''.
  (i) Fees Involving Aircraft Not Providing Air Transportation.--
Section 45302 of title 49, United States Code, is amended by striking 
``44703(f)(2)'' each place it appears and inserting ``44703(g)(2)''.
  (j) Chapter 465.--The analysis for chapter 465 of title 49, United 
States Code, is amended by striking the following:

``46503. Repealed.''.

  (k) Solicitation and Consideration of Comments.--Section 47171(l) of 
title 49, United States Code, is amended by striking ``4371'' and 
inserting ``4321''.
  (l) Adjustments to Compensation for Significantly Increased Costs.--
Section 426 of the FAA Modernization and Reform Act of 2012 is 
amended--
          (1) in subsection (a) (49 U.S.C. 41737 note) by striking 
        ``Secretary'' and inserting ``Secretary of Transportation''; 
        and
          (2) in subsection (c) (49 U.S.C. 41731 note) by striking 
        ``the Secretary may waive'' and inserting ``the Secretary of 
        Transportation may waive''.
  (m) Aircraft Departure Queue Management Pilot Program.--Section 
507(a) of the FAA Modernization and Reform Act of 2012 (49 U.S.C. 44505 
note) is amended by striking ``section 48101(a)'' and inserting 
``section 48101(a) of title 49, United States Code,''.

SEC. 623. APPLICATION OF VETERANS' PREFERENCE TO FEDERAL AVIATION 
                    ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM.

  Section 40122(g)(2)(B) of title 49, United States Code, is amended--
          (1) by inserting ``3304(f),'' before ``3308-3320''; and
          (2) by inserting ``3330a, 3330b, 3330c, and 3330d,'' before 
        ``relating''.

SEC. 624. PUBLIC AIRCRAFT ELIGIBLE FOR LOGGING FLIGHT TIMES.

  The Administrator of the Federal Aviation Administration shall issue 
regulations modifying section 61.51(j)(4) of title 14, Code of Federal 
Regulations, so as to include aircraft under the direct operational 
control of forestry and fire protection agencies as public aircraft 
eligible for logging flight times.

SEC. 625. FEDERAL AVIATION ADMINISTRATION WORKFORCE REVIEW.

  (a) In General.--Not later than 120 days after the date of enactment 
of this Act, the Comptroller General of the United States shall conduct 
a review to assess the workforce and training needs of the Federal 
Aviation Administration (in this section referred to as the ``FAA'') in 
the anticipated budgetary environment.
  (b) Contents.--In conducting the review, the Comptroller General 
shall--
          (1) identify the long-term workforce and training needs of 
        the FAA workforce;
          (2) assess the impact of automation, digitalization, and 
        artificial intelligence on the FAA workforce;
          (3) analyze the skills and qualifications required of the FAA 
        workforce for successful performance in the current and future 
        projected aviation environment;
          (4) review current performance incentive policies of the FAA, 
        including awards for performance;
          (5) analyze ways in which the FAA can work with industry and 
        labor, including labor groups representing the FAA workforce, 
        to establish knowledge-sharing opportunities between the FAA 
        and the aviation industry regarding new equipment and systems, 
        best practices, and other areas of interest; and
          (6) develop recommendations on the most effective 
        qualifications, training programs (including e-learning 
        training), and performance incentive approaches to address the 
        needs of the future projected aviation regulatory system in the 
        anticipated budgetary environment.
  (c) Report.--Not later than 270 days after the date of enactment of 
this Act, the Comptroller General shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report on the results of the review.

SEC. 626. STATE TAXATION.

  Section 40116(d)(2)(A) of title 49, United States Code, is amended by 
adding at the end the following:
          ``(v) except as otherwise provided under section 47133, levy 
        or collect a tax, fee, or charge, first taking effect after the 
        date of enactment of this clause, upon any business located at 
        a commercial service airport or operating as a permittee of 
        such an airport that is not generally imposed on sales or 
        services by that State, political subdivision, or authority 
        unless wholly utilized for airport or aeronautical purposes.''.

SEC. 627. AVIATION AND AEROSPACE WORKFORCE OF THE FUTURE.

  (a) Findings.--Congress finds that--
          (1) in 2016, United States air carriers carried a record high 
        number of passengers on domestic flights, 719 million 
        passengers;
          (2) the United States aerospace and defense industry employed 
        1.7 million workers in 2015, or roughly 2 percent of the 
        Nation's total employment base;
          (3) the average salary of an employee in the aerospace and 
        defense industry is 44 percent above the national average;
          (4) in 2015, the aerospace and defense industry contributed 
        nearly $202.4 billion in value added to the United States 
        economy;
          (5) an effective aviation industry relies on individuals with 
        unique skill sets, many of which can be directly obtained 
        through career and technical education opportunities; and
          (6) industry and the Federal Government have taken some 
        actions to attract qualified individuals to careers in aviation 
        and aerospace and to retain qualified individuals in such 
        careers.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) public and private education institutions should make 
        available to students and parents information on approved 
        programs of study and career pathways, including career 
        exploration, work-based learning opportunities, dual and 
        concurrent enrollment opportunities, and guidance and 
        advisement resources;
          (2) public and private education institutions should partner 
        with aviation and aerospace companies to promote career paths 
        available within the industry and share information on the 
        unique benefits and opportunities the career paths offer;
          (3) aviation companies, including air carriers, 
        manufacturers, commercial space companies, unmanned aircraft 
        system companies, and repair stations, should create 
        opportunities, through apprenticeships or other mechanisms, to 
        attract young people to aviation and aerospace careers and to 
        enable individuals to gain the critical skills needed to thrive 
        in such professions; and
          (4) the Federal Government should consider the needs of men 
        and women interested in pursuing careers in the aviation and 
        aerospace industry, the long-term personnel needs of the 
        aviation and aerospace industry, and the role of aviation in 
        the United States economy in the creation and administration of 
        educational and financial aid programs.

SEC. 628. FUTURE AVIATION AND AEROSPACE WORKFORCE STUDY.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Comptroller General of the United States shall conduct 
a study--
          (1) to identify the factors influencing the supply of 
        individuals pursuing a career in the aviation or aerospace 
        industry; and
          (2) to identify best practices or programs to incentivize, 
        recruit, and retain young people in aviation and aerospace 
        professions.
  (b) Consultation.--The Comptroller General shall conduct the study in 
consultation with--
          (1) appropriate Federal agencies; and
          (2) the aviation and aerospace industry, institutions of 
        higher education, and labor stakeholders.
  (c) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Comptroller General shall submit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the results of the study and 
related recommendations.

SEC. 629. FAA LEADERSHIP ON CIVIL SUPERSONIC AIRCRAFT.

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall exercise leadership in the creation of Federal and 
international policies, regulations, and standards relating to the 
certification and safe and efficient operation of civil supersonic 
aircraft.
  (b) Exercise of Leadership.--In carrying out subsection (a), the 
Administrator shall--
          (1) consider the needs of the aerospace industry and other 
        stakeholders when creating policies, regulations, and standards 
        that enable the safe commercial deployment of civil supersonic 
        aircraft technology and the safe and efficient operation of 
        civil supersonic aircraft; and
          (2) obtain the input of aerospace industry stakeholders 
        regarding--
                  (A) the appropriate regulatory framework and timeline 
                for permitting the safe and efficient operation of 
                civil supersonic aircraft within United States 
                airspace, including updating or modifying existing 
                regulations on such operation;
                  (B) issues related to standards and regulations for 
                the type certification and safe operation of civil 
                supersonic aircraft, including noise certification, 
                including--
                          (i) the operational differences between 
                        subsonic aircraft and supersonic aircraft;
                          (ii) costs and benefits associated with 
                        landing and takeoff noise requirements for 
                        civil supersonic aircraft, including impacts on 
                        aircraft emissions;
                          (iii) public and economic benefits of the 
                        operation of civil supersonic aircraft and 
                        associated aerospace industry activity; and
                          (iv) challenges relating to ensuring that 
                        standards and regulations aimed at relieving 
                        and protecting the public health and welfare 
                        from aircraft noise and sonic booms are 
                        economically reasonable, technologically 
                        practicable, and appropriate for civil 
                        supersonic aircraft; and
                  (C) other issues identified by the Administrator or 
                the aerospace industry that must be addressed to enable 
                the safe commercial deployment and safe and efficient 
                operation of civil supersonic aircraft.
  (c) International Leadership.--The Administrator, in the appropriate 
international forums, shall take actions that--
          (1) demonstrate global leadership under subsection (a);
          (2) address the needs of the aerospace industry identified 
        under subsection (b); and
          (3) protect the public health and welfare.
  (d) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall submit to the Committee 
on Transportation and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of the 
Senate a report detailing--
          (1) the Administrator's actions to exercise leadership in the 
        creation of Federal and international policies, regulations, 
        and standards relating to the certification and safe and 
        efficient operation of civil supersonic aircraft;
          (2) planned, proposed, and anticipated actions to update or 
        modify existing policies and regulations related to civil 
        supersonic aircraft, including those identified as a result of 
        industry consultation and feedback; and
          (3) a timeline for any actions to be taken to update or 
        modify existing policies and regulations related to civil 
        supersonic aircraft.

SEC. 630. OKLAHOMA REGISTRY OFFICE.

  The Administrator of the Federal Aviation Administration shall 
consider the aircraft registry office in Oklahoma City, Oklahoma, as 
excepted during a Government shutdown or emergency (as it provides 
excepted services) to ensure that it remains open during any Government 
shutdown or emergency.

SEC. 631. FOREIGN AIR TRANSPORTATION UNDER UNITED STATES-EUROPEAN UNION 
                    AIR TRANSPORT AGREEMENT.

  (a) Certain Foreign Air Transportation Permits.--The Secretary of 
Transportation may not issue a permit under section 41302 of title 49, 
United States Code, or an exemption under section 40109 of such title, 
authorizing a person to provide foreign air transportation as a foreign 
air carrier under the United States-European Union Air Transport 
Agreement of April 2007 (as amended) in a proceeding in which the 
applicability of Article 17 bis of such Agreement has been raised by an 
interested person, unless the Secretary--
          (1) finds that issuing the permit or exemption would be 
        consistent with the intent set forth in Article 17 bis of the 
        Agreement, that opportunities created by the Agreement do not 
        undermine labor standards or the labor-related rights and 
        principles contained in the laws of the respective parties to 
        the Agreement; and
          (2) imposes on the permit or exemption such conditions as may 
        be necessary to ensure that the person complies with the intent 
        of Article 17 bis.
  (b) Public Interest Test.--Section 41302(2) of title 49, United 
States Code, is amended--
          (1) in subparagraph (A) by striking ``under an agreement with 
        the United States Government; or'' and inserting ``; and''; and
          (2) in subparagraph (B) by striking ``the foreign air 
        transportation'' and inserting ``after considering the totality 
        of the circumstances, including the factors set forth in 
        section 40101(a), the foreign air transportation''.
  (c) Public Interest Requirements.--
          (1) Policy.--Section 40101(a) of title 49, United States 
        Code, is amended by adding at the end the following:
          ``(17) preventing entry into United States markets by flag of 
        convenience carriers.''.
          (2) International air transportation.--Section 40101(e)(9) of 
        title 49, United States Code, is amended--
                  (A) in subparagraph (D) by striking ``and'' at the 
                end;
                  (B) in subparagraph (E) by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(F) erosion of labor standards associated with flag 
                of convenience carriers.''.
          (3) Flag of convenience carrier defined.--Section 40102(a) of 
        title 49, United States Code, as amended by this Act, is 
        further amended by adding at the end the following:
          ``(49) `flag of convenience carrier' means a foreign air 
        carrier that is established in a country other than the home 
        country of its majority owner or owners in order to avoid 
        regulations of the home country.''.

SEC. 632. TRAINING ON HUMAN TRAFFICKING FOR CERTAIN STAFF.

  (a) In General.--Chapter 447 of title 49, United States Code, as 
amended by this Act, is further amended by adding at the end the 
following:

``Sec. 44737. Training on human trafficking for certain staff

  ``In addition to other training requirements, each air carrier shall 
provide training--
          ``(1) to ticket counter agents, gate agents, and other air 
        carrier workers whose jobs require regular interaction with 
        passengers; and
          ``(2) on recognizing and responding to potential human 
        trafficking victims.''.
  (b) Clerical Amendment.--The analysis for chapter 447 of title 49, 
United States Code, as amended by this Act, is further amended by 
adding at the end the following:

``44737. Training on human trafficking for certain staff.''.

SEC. 633. PART 107 IMPLEMENTATION IMPROVEMENTS.

  (a) In General.--Not later than 30 days after the date of enactment 
of this section, the Administrator of the Federal Aviation 
Administration shall publish a direct final rule--
          (1) revising section 107.205 of title 14, Code of Federal 
        Regulations, by striking the second sentence of subsections (a) 
        and (c); and
          (2) revising section 107.25 of such title by striking ``and 
        is not transporting another person's property for compensation 
        or hire''.
  (b) Determination of Waiver.--In determining whether to grant a 
waiver under part 107 of title 14, Code of Federal Regulations, to 
authorize transportation of another's property for compensation or hire 
beyond the visual line of sight of the remote pilot, from a moving 
vehicle, or over people, the Administrator shall consider the 
technological capabilities of the unmanned aircraft system, the 
qualifications of the remote pilot, and the operational environment.

SEC. 634. PART 107 TRANSPARENCY AND TECHNOLOGY IMPROVEMENTS.

  (a) Transparency.--Not later than 30 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall publish on the Federal Aviation Administration website a 
representative sample of the safety justifications, offered by 
applicants for small unmanned aircraft system waivers and airspace 
authorizations, that have been approved by the Administration for each 
regulation waived or class of airspace authorized, except that any 
published justification shall not reveal proprietary or commercially 
sensitive information.
  (b) Technology Improvements.--Not later than 90 days after the date 
of enactment of this Act, the Administrator shall revise the online 
waiver and certificates of authorization processes--
          (1) to provide real time confirmation that an application 
        filed online has been received by the Administration; and
          (2) to provide an applicant with an opportunity to review the 
        status of the applicant's application.

SEC. 635. PROHIBITIONS AGAINST SMOKING ON PASSENGER FLIGHTS.

  Section 41706 of title 49, United States Code, is amended--
          (1) by redesignating subsection (d) as subsection (e); and
          (2) by inserting after subsection (c) the following:
  ``(d) Electronic Cigarettes.--
          ``(1) Inclusion.--The use of an electronic cigarette shall be 
        treated as smoking for purposes of this section.
          ``(2) Electronic cigarette defined.--In this section, the 
        term `electronic cigarette' means a device that delivers 
        nicotine to a user of the device in the form of a vapor that is 
        inhaled to simulate the experience of smoking.''.

SEC. 636. CONSUMER PROTECTION REQUIREMENTS RELATING TO LARGE TICKET 
                    AGENTS.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary of Transportation shall issue a final rule 
to require large ticket agents to adopt minimum customer service 
standards.
  (b) Purpose.--The purpose of the final rule shall be to ensure that, 
to the maximum extent practicable, there is a consistent level of 
consumer protection regardless of where consumers purchase air fares 
and related air transportation services.
  (c) Standards.--In issuing the final rule, the Secretary shall 
consider, at a minimum, establishing standards for--
          (1) providing prompt refunds when ticket refunds are due, 
        including fees for optional services that consumers purchased 
        but were not able to use due to a flight cancellation or 
        oversale situation;
          (2) providing an option to hold a reservation at the quoted 
        fare without payment, or to cancel without penalty, for 24 
        hours;
          (3) disclosing cancellation policies, seating configurations, 
        and lavatory availability with respect to flights;
          (4) notifying customers in a timely manner of itinerary 
        changes; and
          (5) responding promptly to customer complaints.
  (d) Definitions.--In this section, the following shall apply:
          (1) Ticket agent.--
                  (A) In general.--Subject to subparagraph (B), the 
                term ``ticket agent'' has the meaning given that term 
                in section 40102(a) of title 49, United States Code.
                  (B) Inclusion.--The term ``ticket agent'' includes a 
                person who acts as an intermediary involved in the sale 
                of air transportation directly or indirectly to 
                consumers, including by operating an electronic airline 
                information system, if the person--
                          (i) holds the person out as a source of 
                        information about, or reservations for, the air 
                        transportation industry; and
                          (ii) receives compensation in any way related 
                        to the sale of air transportation.
          (2) Large ticket agent.--The term ``large ticket agent'' 
        means a ticket agent with annual revenues of $100,000,000 or 
        more.

SEC. 637. AGENCY PROCUREMENT REPORTING REQUIREMENTS.

  Section 40110(d) of title 49, United States Code, is amended by 
adding at the end the following:
          ``(5) Annual report on the purchase of foreign manufactured 
        articles.--
                  ``(A) Report.--Not later than 90 days after the end 
                of the fiscal year, the Secretary of Transportation 
                shall submit a report to Congress on the dollar amount 
                of the acquisitions made by the agency from entities 
                that manufacture the articles, materials, or supplies 
                outside of the United States in such fiscal year.
                  ``(B) Contents.--The report required by subparagraph 
                (A) shall separately indicate--
                          ``(i) the dollar value of any articles, 
                        materials, or supplies purchased that were 
                        manufactured outside of the United States; and
                          ``(ii) a summary of the total procurement 
                        funds spent on goods manufactured in the United 
                        States versus funds spent on goods manufactured 
                        outside of the United States.
                  ``(C) Availability of report.--The Secretary shall 
                make the report under subparagraph (A) publicly 
                available on the agency's website not later than 30 
                days after submission to Congress.''.

SEC. 638. ZERO-EMISSION VEHICLES AND TECHNOLOGY.

  (a) Passenger Facility Charge Eligibility.--Section 40117(a)(3) of 
title 49, United States Code, is amended by adding at the end the 
following:
                  ``(H) A project for--
                          ``(i) converting or retrofitting vehicles and 
                        ground support equipment into eligible zero-
                        emission vehicles and equipment (as defined in 
                        section 47102); or
                          ``(ii) acquiring, by purchase or lease, 
                        eligible zero-emission vehicles and equipment 
                        (as defined in section 47102).''.
  (b) Airport Improvement Program Eligibility.--
          (1) Airport development defined.--Section 47102(3) of title 
        49, United States Code, is amended by adding at the end the 
        following:
                  ``(P) converting or retrofitting vehicles and ground 
                support equipment into eligible zero-emission vehicles 
                and equipment or acquiring, by purchase or lease, 
                eligible zero-emission vehicles and equipment.
                  ``(Q) constructing or modifying airport facilities to 
                install a microgrid in order to provide increased 
                resilience to severe weather, terrorism, and other 
                causes of grid failures.''.
          (2) Additional definitions.--Section 47102 of title 49, 
        United States Code, as amended by this Act, is further amended 
        by adding at the end the following:
          ``(30) `eligible zero-emission vehicle and equipment' means a 
        zero-emission vehicle, equipment related to such a vehicle, and 
        ground support equipment that includes zero-emission technology 
        that is--
                  ``(A) used exclusively at a commercial service 
                airport; or
                  ``(B) used exclusively to transport people or 
                materials to and from a commercial service airport.
          ``(31) `microgrid' means a localized grouping of electricity 
        sources and loads that normally operates connected to and 
        synchronous with the traditional centralized electrical grid, 
        but can disconnect and function autonomously as physical or 
        economic conditions dictate.
          ``(32) `zero-emission vehicle' means a zero-emission vehicle 
        as defined in section 88.102-94 of title 40, Code of Federal 
        Regulations, or a vehicle that produces zero exhaust emissions 
        of any criteria pollutant (or precursor pollutant) under any 
        possible operational modes and conditions.''.
          (3) Special apportionment categories.--Section 47117(e)(1)(A) 
        of title 49, United States Code, is amended by inserting ``for 
        airport development described in section 47102(3)(P),'' after 
        ``under section 47141,''.
  (c) Zero-Emission Program.--Chapter 471 of title 49, United States 
Code, is amended--
          (1) by striking section 47136;
          (2) by redesignating section 47136a as section 47136; and
          (3) in section 47136, as so redesignated, by striking 
        subsections (a) and (b) and inserting the following:
  ``(a) In General.--The Secretary of Transportation may establish a 
pilot program under which the sponsors of not less than 10 public-use 
airports may use funds made available under this chapter or section 
48103 for use at such airports to carry out--
          ``(1) activities associated with the acquisition, by purchase 
        or lease, and operation of zero-emission vehicles, including 
        removable power sources for such vehicles; and
          ``(2) the construction or modification of infrastructure to 
        facilitate the delivery of fuel and services necessary for the 
        use of such vehicles.
  ``(b) Eligibility.--A public-use airport is eligible for 
participation in the program if the vehicles or ground support 
equipment are--
          ``(1) used exclusively at the airport; or
          ``(2) used exclusively to transport people or materials to 
        and from the airport.'';
          (4) in section 47136, as so redesignated, by striking 
        subsections (d) and (e) and inserting the following:
  ``(d) Federal Share.--The Federal share of the cost of a project 
carried out under the program shall be the Federal share specified in 
section 47109.
  ``(e) Technical Assistance.--
          ``(1) In general.--The sponsor of a public-use airport may 
        use not more than 10 percent of the amounts made available to 
        the sponsor under the program in any fiscal year for--
                  ``(A) technical assistance; and
                  ``(B) project management support to assist the 
                airport with the solicitation, acquisition, and 
                deployment of zero-emission vehicles, related 
                equipment, and supporting infrastructure.
          ``(2) Providers of technical assistance.--To receive the 
        technical assistance or project management support described in 
        paragraph (1), participants in the program may use--
                  ``(A) a nonprofit organization selected by the 
                Secretary; or
                  ``(B) a university transportation center receiving 
                grants under section 5505 in the region of the 
                airport.'';
          (5) in section 47136, as so redesignated, in subsection (f) 
        by striking ``section 47136'' and inserting ``the inherently 
        low emission airport vehicle pilot program''; and
          (6) in section 47136, as so redesignated, by adding at the 
        end the following:
  ``(g) Allowable Project Cost.--The allowable project cost for the 
acquisition of a zero-emission vehicle shall be the total cost of 
purchasing or leasing the vehicle, including the cost of technical 
assistance or project management support described in subsection (e).
  ``(h) Flexible Procurement.--A sponsor of a public-use airport may 
use funds made available under the program to acquire, by purchase or 
lease, a zero-emission vehicle and a removable power source in separate 
transactions, including transactions by which the airport purchases the 
vehicle and leases the removable power source.
  ``(i) Testing Required.--A sponsor of a public-use airport may not 
use funds made available under the program to acquire a zero-emission 
vehicle unless that make, model, or type of vehicle has been tested by 
a Federal vehicle testing facility acceptable to the Secretary.
  ``(j) Removable Power Source Defined.--In this section, the term 
`removable power source' means a power source that is separately 
installed in, and removable from, a zero-emission vehicle and may 
include a battery, a fuel cell, an ultra-capacitor, or other advanced 
power source used in a zero-emission vehicle.''.
  (d) Clerical Amendment.--The analysis for chapter 471 of title 49, 
United States Code, is amended by striking the items relating to 
sections 47136 and 47136a and inserting the following:

``47136. Zero-emission airport vehicles and infrastructure.''.

SEC. 639. EMPLOYEE ASSAULT PREVENTION AND RESPONSE PLANS.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, each air carrier operating under part 121 of title 14, 
Code of Federal Regulations (in this section referred to as a ``part 
121 air carrier''), shall submit to the Administrator of the Federal 
Aviation Administration for review and acceptance an Employee Assault 
Prevention and Response Plan related to the customer service agents of 
the air carrier and that is developed in consultation with the labor 
union representing such agents.
  (b) Contents of Plan.--An Employee Assault Prevention and Response 
Plan submitted under subsection (a) shall include the following:
          (1) Reporting protocols for air carrier customer service 
        agents who have been the victim of a verbal or physical 
        assault.
          (2) Protocols for the immediate notification of law 
        enforcement after an incident of verbal or physical assault 
        committed against an air carrier customer service agent.
          (3) Protocols for informing Federal law enforcement with 
        respect to violations of section 46503 of title 49, United 
        States Code.
          (4) Protocols for ensuring that a passenger involved in a 
        violent incident with a customer service agent of an air 
        carrier is not allowed to move through airport security or 
        board an aircraft until appropriate law enforcement has had an 
        opportunity to assess the incident and take appropriate action.
          (5) Protocols for air carriers to inform passengers of 
        Federal laws protecting Federal, airport, and air carrier 
        employees who have security duties within an airport.
  (c) Employee Training.--A part 121 air carrier shall conduct initial 
and recurrent training for all employees, including management, of the 
air carrier with respect to the plan required under subsection (a), 
which shall include training on de-escalating hostile situations, 
written protocols on dealing with hostile situations, and the reporting 
of relevant incidents.

SEC. 640. STUDY ON TRAINING OF CUSTOMER-FACING AIR CARRIER EMPLOYEES.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Secretary of Transportation shall conduct a study on 
the training received by customer-facing employees of air carriers.
  (b) Contents.--The study shall include--
          (1) an analysis of the training received by customer-facing 
        employees with respect to the management of disputes on 
        aircraft; and
          (2) an examination of how institutions of higher learning, in 
        coordination with air carriers, customer-facing employees and 
        their representatives, consumer advocacy organizations, and 
        other stakeholders, could--
                  (A) review such training and related practices;
                  (B) produce recommendations; and
                  (C) if determined appropriate, provide supplemental 
                training.
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Transportation 
and Infrastructure of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate a report on the 
results of the study.

SEC. 641. MINIMUM DIMENSIONS FOR PASSENGER SEATS.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, and after providing notice and an opportunity for comment, 
the Administrator of the Federal Aviation Administration shall issue 
regulations that establish minimum dimensions for passenger seats on 
aircraft operated by air carriers in interstate air transportation or 
intrastate air transportation, including minimums for seat pitch, 
width, and length, and that are necessary for the safety and health of 
passengers.
  (b) Definitions.--The definitions contained in section 40102(a) of 
title 49, United States Code, apply to this section.

SEC. 642. STUDY OF GROUND TRANSPORTATION OPTIONS.

  Not later than 1 year after the date of enactment of this Act, the 
Comptroller General of the United States shall conduct a study that 
examines the ground transportation options at the Nation's 10 busiest 
airports in order to--
          (1) understand the impact of new and emerging transportation 
        options for travelers to get into and out of airports;
          (2) determine whether it is appropriate to use airport 
        improvement funds and revenues from passenger facility charges 
        to address traffic congestion and passenger travel times 
        between urban commercial centers and airports; and
          (3) review guidelines and requirements for airport 
        improvement funds and passenger facility charges to determine 
        under what conditions such funds may be used to address traffic 
        congestion in urban commercial centers for travel to airports.

                         Purpose of Legislation

    H.R. 2997, the 21st Century Aviation Innovation, Reform, 
and Reauthorization Act (21st Century AIRR Act), as amended, 
reauthorizes the Nation's aviation programs, including the 
Federal Aviation Administration's (FAA) safety and 
infrastructure programs, the Department of Transportation's 
(DOT) aviation consumer protection programs, and other 
aviation-related programs. It transfers operation of air 
traffic control (ATC) services currently provided by the FAA to 
an independent, not-for-profit corporate entity. H.R. 2997, as 
amended, establishes a stable, self-sustaining, cost-based user 
fee structure to finance the entity. The bill includes 
provisions to guide the transition from an FAA-operated service 
to one provided by the new entity. H.R. 2997, as amended, also 
reforms and streamlines the FAA's various safety, oversight, 
and certification programs to foster the more efficient use of 
government and private sector resources and makes various 
conforming amendments for purposes of consistency.

                  Background and Need for Legislation

    Aviation is a major driver of economic growth and the ATC 
system is an essential component of this important sector of 
the economy. According to the FAA, civil aviation contributes 
roughly $1.6 trillion in total economic activity and supports 
over 11 million jobs.\1\ United States airspace, the busiest 
and most expansive in the world, covers roughly 30 million 
square miles--constituting more than 17 percent of the world's 
airspace.\2\ The ATC system is operated by the FAA's more than 
14,000 federal air traffic controllers in 317 air traffic 
control facilities.\3\ Every day, air traffic controllers 
safely handle more than 50,000 operations.\4\ The FAA also has 
safety oversight of civil aviation, including regulatory 
oversight of airlines, airports, aviation manufacturers, 
pilots, controllers, flight attendants, general aviation 
operators, commercial space operators and launch sites, and 
unmanned aircraft systems and their operators.
---------------------------------------------------------------------------
    \1\Federal Aviation Administration, The Economic Impact of Civil 
Aviation on the U.S. Economy, November 2016, p. 3, available at https:/
/www.faa.gov/air_traffic/publications/media/2016-economic-impact-
report_FINAL.pdf.
    \2\Federal Aviation Administration, The Economic Impact of Civil 
Aviation on the U.S. Economy, January 2015, p. 1. https://www.faa.gov/
air_traffic/publications/media/2015-economic-impact-report.pdf.
    \3\Federal Aviation Administration, A Plan for the Future: 10-Year 
Strategy for the Air Traffic Control Workforce, 2015-2014, p. 10, and 
https://www.faa.gov/jobs/career_fields/aviation_careers/atc_roles.
    \4\FAA Press Release, July 6, 2011. https://www.faa.gov/news/
press_releases/news_story.cfm?newsId=12903.
---------------------------------------------------------------------------
    While the United States has one of the safest ATC systems 
in the world, the system has struggled to keep up with 
increasing demand. According to the FAA, airline delays and 
cancellations cost passengers, shippers, and airlines nearly 
$33 billion annually.\5\ The FAA projects passenger growth to 
average two percent per year, reaching one billion passengers 
by 2029.\6\ To help the ATC system better prepare for this 
forecasted growth, the FAA has been working for decades to 
modernize the system, which remains based on World War II-era 
radar technology. Without modernization, controllers and 
aircraft operators will continue to be forced to use the 
airspace in a very inefficient way.
---------------------------------------------------------------------------
    \5\Nextor, Total Delay Impact Study: A Comprehensive Assessment of 
the Costs and Impacts of Flight Delay in the United States, Final 
Report, October 2010, p. vii http://www.isr.umd.edu/NEXTOR/pubs/
TDI_Report_Final_10_18_10_V3.pdf.
    \6\FAA Press Release, March 16, 2015. https://www.faa.gov/news/
press_releases/news_story.cfm?newsId=18434.
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                                NEXTGEN

    In 2003, the FAA began its most recent effort to modernize 
the Nation's ATC system, known as ``NextGen.'' Originally, 
NextGen was intended to transform the ATC system from a radar-
based system to a satellite-based system. However, according to 
government reports, NextGen, initially marketed as a 20-year, 
$40 billion program, has been plagued by decades of cost and 
schedule overruns and has produced only incremental 
improvements in capacity and safety. Passengers and aircraft 
operators have seen limited benefits from recent FAA 
modernization programs and those benefits are certainly not in 
line with taxpayer dollars invested in NextGen--over $7 billion 
to date.\7\
---------------------------------------------------------------------------
    \7\Letter from Calvin Scovel, Inspector General, U.S. Department of 
Transportation, to Bill Shuster, Chairman, House Committee on 
Transportation and Infrastructure, September 30, 2016.
---------------------------------------------------------------------------
    According to the Department of Transportation Inspector 
General (DOT IG), ``since its inception a decade ago, FAA's 
progress in implementing NextGen has not met the expectations 
of Congress and industry stakeholders, and key modernization 
efforts have experienced significant cost increases and 
schedule delays.''\8\ In looking at what the FAA has promised 
NextGen would achieve over the years, Calvin Scovel, the DOT 
IG, has warned, ``the initial estimates from nine or 10 years 
back called for $20 billion in federal investments, $20 billion 
in private investments with a stated goal of completing 
implementation of the program by 2025. . . . We're clearly not 
going to make it with a total of $40 billion in investments, 
federal and private. We're probably looking at years beyond 
2025--perhaps another 10 even. We're probably also looking at 
total expenditures on the magnitude two to three times that of 
the initial $40 billion.''\9\
---------------------------------------------------------------------------
    \8\Office of Inspector General, U.S. Department of Transportation, 
FAA Made Limited Progress in Implementing NextGen Provisions of the FAA 
Modernization and Reform Act of 2012, AV-2014-027, Jan. 28, 2014, p. 2.
    \9\Statement of Calvin Scovel, Inspector General, U.S. Department 
of Transportation, before the House Aviation Subcommittee, Hearing on 
ATC Modernization, February 5, 2014; see also, Statement of Calvin 
Scovel, Inspector General, U.S. Department of Transportation, before 
the House Transportation and Infrastructure Committee, The Need to 
Reform FAA and Air Traffic Control to Build a 21st Century Aviation 
System for America, May 17, 2017.
---------------------------------------------------------------------------
    Government auditing reports outline ongoing troubles with 
the FAA's delivery and implementation of ATC modernization 
programs. In a 2016 report, the DOT IG found that eight of 
FAA's 15 ongoing major system acquisitions experienced a 
cumulative cost increase of $3.8 billion beyond original 
estimates and delays ranging from seven to 174 months, with an 
average delay of 51 months.\10\ Similarly, according to the 
Government Accountability Office (GAO), ``[t]he three [ATC] 
programs with the largest cost increases--more than $4 
billion--are key to ATC modernization.''\11\ Most recently, the 
DOT IG testified before the Transportation and Infrastructure 
Committee stating, ``FAA's reforms have also fallen short in 
improving its delivery of new technologies and capabilities. 
Major projects--including some critical to NextGen--have 
experienced cost increases and schedule slips . . . several 
systemic issues underlie FAA's problems in delivering new 
technologies on time and within budget. These include 
overambitious plans, unreliable cost and schedule estimates, 
unstable requirements, software development problems, poorly 
defined benefits, and ineffective contract and program 
management.''\12\
---------------------------------------------------------------------------
    \10\Office of the Inspector General, U.S. Department of 
Transportation, FAA Reforms Have Not Achieved Expected Cost, Efficiency 
and Modernization Outcomes, AV-2016-15, January 20, 2016, p. 13.
    \11\U.S. Government Accountability Office, Air Traffic Control 
Modernization: Management Challenges Associated with Program Costs and 
Schedules Could Hinder NextGen Implementation, GAO-12-223, February 
2012, p. 12.
    \12\Statement of Calvin Scovel, Inspector General, U.S. Department 
of Transportation, before the House Transportation and Infrastructure 
Committee, The Need to Reform FAA and Air Traffic Control to Build a 
21st Century Aviation System for America, May 17, 2017.
---------------------------------------------------------------------------
    The extent to which FAA realigns and consolidates ATC 
facilities is another important component of the agency's 
NextGen implementation efforts. To comply with the law, the FAA 
provided Congress with a plan for consolidating and realigning 
its facilities. The DOT IG found that the plan is 
``significantly less comprehensive than previous consolidation 
plans . . . ,'' and does not include a process for realigning 
and consolidating facilities that manage high-altitude 
traffic.\13\ Further, in another report, the DOT IG found that 
despite the fact that FAA's air traffic operations dropped 23 
percent between fiscal years 2000 and 2012, the FAA's ATC 
facility footprint has remained essentially unchanged.\14\
---------------------------------------------------------------------------
    \13\Office of the Inspector General, U.S. Department of 
Transportation, FAA's Implementation of the FAA Modernization and 
Reform Act of 2012 Remains Incomplete, CC-2014-010, February 5, 2014, 
p. 3.
    \14\Office of the Inspector General, U.S. Department of 
Transportation, FAA Reforms Have Not Achieved Expected Cost, 
Efficiency, and Modernization Outcomes, January 15, 2016, AV-2016-015, 
pp. 8-9.
---------------------------------------------------------------------------
    Finally, the DOT IG found ``. . . FAA's organizational 
culture . . . has been slow to embrace NextGen's 
transformational vision.''\15\ Gaps in leadership have further 
undermined the Agency's efforts to advance NextGen.''\16\ A 
recent GAO survey found that aviation stakeholders lack 
confidence in FAA's ability to implement ATC modernization.\17\ 
More than three times as many of the stakeholders said that 
FAA's overall implementation of NextGen was not going well than 
those who said it was going well.\18\
---------------------------------------------------------------------------
    \15\Id.
    \16\Supra note 12, p. 3.
    \17\U.S. Government Accountability Office, Air Traffic Control 
System: Selected Stakeholders' Perspectives on Operations, 
Modernization, and Structure, September 2014, GAO-14-770, p. 11.
    \18\Id.
---------------------------------------------------------------------------

 OVERVIEW OF PREVIOUS AIR TRAFFIC CONTROL REFORM EFFORTS IN THE UNITED 
                                 STATES

    In 1981, the FAA began an effort to modernize the ATC 
system by updating facilities and equipment to meet the 
anticipated demands of a growing volume of post-deregulation 
air traffic.\19\ At the time, the modernization was estimated 
to cost roughly $12 billion\20\ and take more than 10 years to 
complete.\21\ However, in the ensuing years the effort 
encountered cost overruns, schedule delays, and performance 
shortfalls, which resulted in calls to reform the FAA. There 
have been previous bipartisan ATC reform recommendations 
calling for an independent, nongovernmental, self-financing 
entity, including:
---------------------------------------------------------------------------
    \19\This included plans to replace the computers at air route 
traffic control centers with new software, consoles and displays, 
facility consolidation, new secondary radars, upgraded weather services 
and a new landing system. U.S. Government Accountability Office, FAA's 
Plan to Improve the Air Traffic Control System, AFMD-83-34, 1983 
available at: http://www.gao.gov/assets/140/139683.pdf.
    \20\U.S. Government Accountability Office, Transportation: 
Examination of the Federal Aviation Administration's Plan for the 
National Airspace System--Interim Report, AFMD-82-66, 1982, p.2. This 
report claims initial estimates to be roughly $10 billion; however, a 
later GAO report states the $12 billion figure.
    \21\Gerald L. Dillingham, U.S. Government Accountability Office, 
Testimony before the Subcommittee on Aviation, Committee on 
Transportation and Infrastructure, House of Representatives, FAA's 
Modernization Efforts--Past, President and Future, October 30, 2003, p. 
1.
---------------------------------------------------------------------------
          --In 1988, the Aviation Safety Commission urged 
        creation of a self-financing air navigation service 
        provider free of federal personnel and procurement 
        rules, to be overseen by a board that would include 
        industry stakeholders.\22\
---------------------------------------------------------------------------
    \22\Aviation Safety Commission, Aviation Safety Commission Final 
Report and Recommendations, April 1988, p. 1 The Aviation Safety 
Commission was created under the Aviation Safety Commission Act of 1986 
(P.L. 99-591). The Commission was created to conduct an intensive 
inquiry into the safety of the nation's aviation system.
---------------------------------------------------------------------------
          --In its 1993 report, the National Commission to 
        Ensure a Strong Competitive Airline Industry, chaired 
        by former Virginia Governor Gerald Baliles, recommended 
        that the FAA be ``reinvented'' and restructured as an 
        independent federal corporate entity, with its 
        expenditures and revenues removed from the federal 
        budget.\23\
---------------------------------------------------------------------------
    \23\The National Commission to Ensure a Strong Competitive Airline 
Industry, Change, Challenge and Competition: A Report to the President 
and Congress, August 1993, pp. 8-9.
---------------------------------------------------------------------------
          --Also in 1993, then-Vice President Al Gore's task 
        force on government reorganization proposed a detailed 
        plan for shifting ATC to a user-fee supported 
        government corporation to be called the U.S. Air 
        Traffic Services Corporation (USATS).
          --In 1997, the National Civil Aviation Review 
        Commission, chaired by former Secretary of 
        Transportation Norman Mineta, recommended a financially 
        self-supporting ATC entity within the FAA.\24\ Cost-
        based user fees from airlines would provide a revenue 
        stream outside the federal budget process and support 
        bonding to finance large-scale modernization.\25\
---------------------------------------------------------------------------
    \24\National Civil Aviation Review Commission, Avoiding Aviation 
Gridlock and Reducing the Accident Rate, December 1997.
    \25\Id. at 144.
---------------------------------------------------------------------------
          --In 2007, the Bush administration called for a 
        hybrid, cost-based system for financing FAA programs, 
        under which commercial airlines and business jet 
        operators would pay direct charges for ATC services 
        while general aviation (GA) non-jet operators would 
        continue to pay the GA fuel tax.\26\
---------------------------------------------------------------------------
    \26\Gerald L. Dillingham, U.S. Government Accountability Office, 
Testimony Before the Subcommittee on Aviation, Committee on 
Transportation and Infrastructure, Observations on Selected Changes to 
FAA's Funding and Budget Structure in the Administration's 
Reauthorization Program, GAO-07625T, March 21, 2007, p. 5.
---------------------------------------------------------------------------
    Congress responded by enacting only portions of the Baliles 
and Mineta commissions' recommendations.\27\ In 1995, Congress 
passed legislation exempting FAA from most federal personnel 
rules and allowed the agency to implement a new personnel 
management system that provided greater flexibility in hiring, 
training, and compensating personnel.\28\ In 1996, other 
legislation was passed that included additional personnel 
reforms and required the agency to establish a cost accounting 
system.\29\ In 1995, Congress also granted FAA relief from 
principal federal acquisition laws and regulations.\30\ All of 
the reforms were intended to allow the FAA to act more like a 
business. In April 2000, Congress required the appointment of a 
Chief Operating Officer to oversee the day-to-day operation and 
modernization of the ATC system.\31\ However, Congress rejected 
the proposal to shift from excise taxes to user fees.\32\ 
Similarly, the 110th Congress did not include the Bush 
administration's finance reform proposal in the FAA 
reauthorization legislation.
---------------------------------------------------------------------------
    \27\Robert W. Poole, The Urgent Need to Reform the FAA's Air 
Traffic Control System, March 2007, p. 18.
    \28\Fiscal Year 1996 Department of Transportation and Related 
Agencies Appropriations Act, Section 347(a), P.L. 104-50, Nov. 15, 
1995.
    \29\Federal Aviation Reauthorization Act of 1996, Sections 253 & 
276, P.L. 104-264, Oct. 9, 1996.
    \30\Fiscal Year 1996 Department of Transportation and Related 
Agencies Appropriations Act, Section 347(a), P.L. 104-50, Nov. 15, 
1995.
    \31\Wendell H. Ford Aviation Investment and Reform Act for the 21st 
Century, Section 303, P.L. 106-181, Apr. 5, 2000.
    \32\Robert W. Poole, The Urgent Need to Reform the FAA's Air 
Traffic Control System, March 2007, p. 18.
---------------------------------------------------------------------------
    In February 2016, an FAA reauthorization bill was 
introduced in the House of Representatives that included a 
proposal to divest ATC to a not-for-profit corporation subject 
to arms-length federal oversight and regulation.\33\ The 
proposal addressed matters including corporate governance, 
labor and employment policy, and transition processes. H.R. 
2997, as amended, includes many of the same provisions and 
also, based upon feedback from stakeholder groups and those 
with expertise, adds or changes other provisions related to 
specific oversight processes, governance, and continuity of 
service.
---------------------------------------------------------------------------
    \33\H.R. 4441, 114th Cong. (2016).
---------------------------------------------------------------------------

        THE CONTINUING NEED FOR ATC REFORM IN THE UNITED STATES

    In a January 2016 report, the DOT IG found that previous 
efforts by both the executive and legislative branches to 
reform the FAA have failed.\34\ Since the implementation of FAA 
personnel and procurement reforms in the 1990's, costs to 
operate the ATC system have continued to rise while operational 
productivity has declined.\35\ Between fiscal years 1996 and 
2012, the DOT IG found that FAA's total budget grew by 95 
percent, from $8.1 billion to $15.9 billion, and its total 
costs for personnel, compensation, and benefits increased by 98 
percent, from $3.7 billion to $7.3 billion, while air traffic 
dropped 23 percent.\36\ The DOT IG attributed FAA's 
disappointing personnel and procurement reform outcomes largely 
to the agency's failure to take full advantage of its 
authorities when implementing new personnel systems, and not 
using business like practices to improve its operational 
efficiency and cost effectiveness.\37\ In addition, FAA's 
workforce levels have remained relatively constant over the 
past two decades and the number of air traffic facilities the 
FAA operates has not changed since 2000 despite the drop in air 
traffic.\38\ The DOT IG stated that FAA's organizational 
culture, which has been resistant to change, further deters its 
reform efforts.\39\
---------------------------------------------------------------------------
    \34\Department of Transportation, Office of Inspector General, FAA 
Reforms Have Not Achieved Expected Cost, Efficiency, and Modernization 
Outcomes, January 15, 2016, AV-2016-015, p. 2.
    \35\Id. at 8.
    \36\Id.
    \37\Id. at 2.
    \38\Id. at 8.
    \39\Id. at 2.
---------------------------------------------------------------------------
    Today, the FAA, like other federal agencies, must conduct 
capital project planning, including efforts to modernize the 
ATC system, on the basis of an annual congressional 
appropriations cycle. The agency is likewise impacted by 
sequestration, extensions, continuing resolutions, and 
government shutdowns. Three years of federal budget disputes; 
the FAA's decision in April 2013 to furlough ten percent of its 
air traffic controller workforce to meet sequester-driven 
budgetary cuts; the partial shutdown of the FAA in August 2011 
due to the lapse of FAA's operating authority; and the 
continuing schedule delays and cost overruns that have plagued 
FAA's efforts to modernize the ATC system, have all helped 
rekindle the debate over ATC reform. The lack of a steady, 
predictable funding stream, as well as short-term authorization 
extensions, are not conducive to the long-term planning needed 
to deliver large, multi-year capital projects like ATC 
modernization.
    The Reason Foundation, the Brookings Institution, and the 
Cato Institute have all found that aviation safety and 
efficiency would be enhanced by providing a steady, predictable 
funding stream (via direct charges paid by users) for ATC 
modernization, as well as more effective management.\40\ 
Proponents of ATC reform argue that, under some reform 
scenarios, a self-financed ATC service provider would access 
capital through the private markets.\41\ In addition, a self-
financed ATC service provider would be free from federal 
procurement regulations that, according to some observers, have 
prevented the FAA from purchasing and deploying new 
technologies in a timely, cost-efficient manner in some 
cases.\42\
---------------------------------------------------------------------------
    \40\Robert W. Poole, Why An Air Traffic Control Corporation Makes 
Sense, Reason Foundation Policy Study No. 278, February 2001, p. 15, 
available at: http://reason.org/files/
c1a82c766aec1c5b8ee55404ca00fb30.pdf; Chris Edwards, Privatize the 
FAA!, Cato Institute, April 24, 2013; and Dorothy Robyn, Air Support: 
Creating a Safer and More Reliable Air Traffic Control System, The 
Brookings Institution, July 2008, pp. 18-19, available at: http://
www.cato.org/publications/commentary/privatize-faa.
    \41\Robert W. Poole, Organization and Innovation in Air Traffic 
Control, Hudson Institute Initiative on Future Innovation, 2013, p. 5.
    \42\Id.
---------------------------------------------------------------------------
    At a March 24, 2015 Subcommittee on Aviation hearing, 
witnesses urged Congress to consider comprehensive reform of 
how the FAA is governed and financed.\43\ Dorothy Robyn, a 
former Clinton administration official, citing ongoing problems 
with NextGen implementation, declining budget projections for 
FAA, and the prospect of another sequester-related shutdown, 
recommended that Congress move the Air Traffic Organization out 
of the FAA and replace the aviation excise taxes with cost-
based charges on commercial and business aircraft 
operators.\44\ Citing the success of commercialized ATC service 
providers abroad, all the witnesses supported separating ATC 
services from the FAA and establishing an independent, not-for-
profit corporation governed by stakeholders and financed by 
user fees to manage the Nation's ATC system.
---------------------------------------------------------------------------
    \43\Statements by Robert Poole, the Reason Foundation; Doug Parker, 
President and CEO, American Airlines, on behalf of A4A; Dorothy Robyn; 
and David Grizzle, former COO of the FAA, before the Subcommittee on 
Aviation, House Transportation and Infrastructure Committee, ``Options 
for FAA Air Traffic Control Reform'', March 24, 2015, available at: 
http://transport.house.gov/calendar/eventsingle.aspx?EventID=398745.
    \44\Statement of Dorothy Robyn, House Committee on Transportation 
and Infrastructure, Subcommittee on Aviation, ``Options for FAA Air 
Traffic Control Reform'', March 24, 2015, available at: http://
transport.house.gov/calendar/eventsingle.aspx?EventID=398745.
---------------------------------------------------------------------------
    Similarly, a wide range of aviation stakeholder groups have 
called for governance and/or finance reform of the FAA's ATC 
operations. In May 2015, the Eno Center for Transportation's 
NextGen Working Group issued a report on options for ATC reform 
in the United States.\45\ The Eno report recommended that ATC 
services should be taken out of the direct control of the 
federal government and be provided by a more independent 
organization, be it a non-profit organization or a government 
corporation.\46\ Under the Eno proposal, the entity would have 
a non-profit mandate, and all key stakeholders would be 
represented in a governing board.\47\ The Eno report called for 
replacing the current funding of the ATC system, with direct 
payments to the ATC provider.\48\
---------------------------------------------------------------------------
    \45\Eno Center for Transportation NextGen Working Group, Final 
Report, May 2015, available at: https://www.enotrans.org/wp-content/
uploads/wpsc/downloadables/NextGen-Final-Report-12am2.pdf.
    \46\Id. at 61.
    \47\Id.
    \48\Id.
---------------------------------------------------------------------------
    On February 1, 2016, a bipartisan group of former federal 
officials sent a letter to the House Committee on 
Transportation and Infrastructure calling for ``bipartisan 
support for transformational change'' of the ATC system, 
specifically the establishment of a federally chartered, non-
profit organization that would be governed and funded by the 
stakeholders and users of the aviation system.\49\ The 
officials asserted that Congress should enact reforms now given 
the fact that ATC infrastructure and technology are falling 
behind the world's ATC providers.\50\
---------------------------------------------------------------------------
    \49\ Letter from former Senators Byron Dorgan (D-ND) and Trent Lott 
(R-MS); former Secretaries of Transportation James Burnley, Norman 
Mineta, and Mary Peters; former FAA Administrator Randy Babbitt; former 
FAA Chief Operating Officers Russell Chew, Hank Krakowski, and David 
Grizzle; and former White House National Economic Council Special 
Assistant Dorothy Robyn to Bill Shuster, Chairman, Committee on 
Transportation and Infrastructure (Feb. 1, 2016).
    \50\ Id.
---------------------------------------------------------------------------
    At a May 17, 2017 Full Committee hearing, witnesses 
presented views in favor of separating ATC from the government 
and cited the FAA's performance record in support of ATC 
reform. Dorothy Robyn, the former Clinton Administration 
official, cited the incongruity of housing a technology service 
business within a federal safety regulator.\51\ Calvin Scovel 
III, the DOT IG, testified that targeted reforms of FAA 
programs and processes did not lead to the intended 
results.\52\ Finally, Paul Rinaldi, President of the National 
Air Traffic Controllers Association, indicated that unstable 
funding of the current system had resulted in systemic problems 
such as staffing shortfalls.\53\
---------------------------------------------------------------------------
    \51\ Statement of Dorothy Robyn, House Committee on Transportation 
and Infrastructure, ``The Need to Reform FAA and Air Traffic Control to 
Build a 21st Century Aviation System for America'', May 17, 2017, 
available at: https://transportation.house.gov/uploadedfiles/2017-05-
17_-_robyn_testimony.pdf.
    \52\ Statement of Calvin Scovel III, House Committee on 
Transportation and Infrastructure, ``The Need to Reform FAA and Air 
Traffic Control to Build a 21st Century Aviation System for America'', 
May 17, 2017, available at: https://transportation.house.gov/
uploadedfiles/2017-05-17_-_scovel_testimony.pdf.
    \53\ Statement of Paul Rinaldi, House Committee on Transportation 
and Infrastructure, ``The Need to Reform FAA and Air Traffic Control to 
Build a 21st Century Aviation System for America'', May 17, 2017, 
available at: https://transportation.house.gov/uploadedfiles/2017-05-
17_-_rinaldi_testimony.pdf.
---------------------------------------------------------------------------
    At a June 8, 2017 Full Committee hearing, Secretary of 
Transportation Elaine Chao provided testimony about the need 
for a nimble air traffic service provider. Secretary Chao cited 
the lack of flexibility within government and the problems 
caused by reliance upon federal appropriations and procurement 
as impediments to modernization. She also indicated that 
shifting ATC out of government is necessary to realize the 
continued innovation and modernization required to ensure U.S. 
leadership.\54\
---------------------------------------------------------------------------
    \54\ Statement of Secretary Elaine Chao, House Committee on 
Transportation and Infrastructure, ``Building a 21st Century 
Infrastructure for America: Federal Aviation Administration 
Authorization'', June 8, 2017, available at: https://
transportation.house.gov/uploadedfiles/2017-06-08_-
_secretary_chao_testimony.pdf.
---------------------------------------------------------------------------

         OVERVIEW OF FOREIGN AIR TRAFFIC CONTROL REFORM EFFORTS

    Since 1987, more than 60 nations have shifted the 
responsibility for providing ATC services from the aviation 
safety regulator to an independent, self-financed ATC service 
provider.\55\ While some of these service providers are 
government corporations, the ATC service providers of Canada 
(non-profit) and the United Kingdom (for profit) are private, 
and their respective governments regulate them, but do not run 
their day-to-day operations.\56\
---------------------------------------------------------------------------
    \55\Robert W. Poole, Reason Foundation, Testimony before the 
Committee on Transportation and Infrastructure, House of 
Representatives, Review of Air Traffic Control Reform Proposals, 
February 10, 2016, p. 3.
    \56\Robert W. Poole, Jr., The Urgent Need to Reform the FAA's Air 
Traffic Control System, Reason Foundation, March 2007, p. 12.
---------------------------------------------------------------------------
    The DOT IG conducted a study on the performance of four Air 
Navigation Service Providers (ANSPs).\57\ According to the DOT 
IG, since these countries separated their respective ANSPs, 
there has been no evidence of any degradation in aviation 
safety levels.\58\ Similarly, in a 2005 report that studied 
five independent, self-financed ATC service providers, the GAO 
found that the safety of ATC services ``remained the same or 
improved''; the nongovernmental, self-financing ATC service 
providers had lowered their costs and ``improved efficiency''; 
and all ATC service providers also invested in new technologies 
and equipment.\59\
---------------------------------------------------------------------------
    \57\Office of the Inspector General, U.S. Department of 
Transportation, There Are Significant Differences Between FAA and 
Foreign Countries' Processes for Operating Air Navigation Systems, AV-
2015-084, September 2, 2015. The ANSPs studied by the DOT IG included: 
Canada, France, Germany, and the United Kingdom.
    \58\Id. at 8.
    \59\ U.S. Government Accountability Office, Air Traffic Control: 
Characteristics and Performance of Selected International Air 
Navigation Service Providers and Lessons Learned from Their 
Commercialization, GAO-05-769, July 2005, p. 4. ANSPs studied included: 
Australia, Canada, Germany, New Zealand and the United Kingdom.
---------------------------------------------------------------------------
    In October 2014, the MITRE Corporation (MITRE) prepared a 
report at the request of the FAA on six international civil 
aviation authorities (CAAs).\60\ The six countries shared the 
experience of separating the ANSP from the government.\61\ In 
all cases, MITRE found that the separation of the ANSP from the 
CAA was reasonably successful.\62\ While there were 
difficulties in the shift to an independent regulator of a 
corporatized ANSP, adjustments were made in response to the 
difficulties encountered.\63\ The CAAs interviewed by MITRE 
were unanimous in stating that the separation of the ATC from 
the CAA was worth it.\64\ The benefits outlined in the study 
included increased focus on safety by the regulator and the 
ANSP, improved efficiency of the ANSP, reduction in total cost 
to users, and improved participation by aviation 
stakeholders.\65\
---------------------------------------------------------------------------
    \60\Dan Brown, Tom Berry, Steve Welman and E.J. Spear, The MITRE 
Corporation, CAA International Structures, October 2014.
    \61\Studied Canada, New Zealand, Australia, France, Germany, and 
the United Kingdom. The CAAs were selected because their level of 
technological sophistication is similar to the FAA's and because their 
countries share many common economic and political characteristics with 
the United States.
    \62\ Id. at 9.
    \63\Id.
    \64\Id.
    \65\Id. at 9-10.
---------------------------------------------------------------------------

21st Century Aviation Innovation, Reform, and Reauthorization Act

    The 21st Century AIRR Act creates the American Air 
Navigation Services Corporation (Corporation), an independent, 
federally chartered, not-for-profit corporation to operate and 
modernize ATC services.

Corporation and Governance

    The Corporation will be an independent entity completely 
outside the government and exempt from taxation as a not-for-
profit corporation. The federal government will not be liable 
for any action or inaction of the Corporation and will not 
explicitly or implicitly guarantee any debt or obligation of 
the Corporation. The Corporation, which will have all the 
powers and authorities of any other private corporation, will 
be responsible for providing ATC services and necessary safety 
information to ATC service users to ensure the safe and 
efficient management of air traffic.
    The Corporation will be governed by a Board of Directors. 
There will be 13 Directors, consisting of two appointed by the 
Secretary of Transportation (Secretary), two ``at-large'' 
Directors nominated by a two-thirds vote of the other 
Directors, the CEO, and eight Directors nominated by eight 
different aviation stakeholder panels, called Nomination 
Panels. With regard to the Nomination Panels, the Secretary, 
within 30 days of enactment, will identify stakeholder groups 
that will appoint representatives to the eight Nomination 
Panels. Each of the following eight aviation stakeholder 
communities will have a Nomination Panel: passenger air 
carriers, cargo air carriers, regional air carriers, general 
aviation (GA), business aviation, airports, air traffic 
controllers, and commercial pilots.
    The Board of Directors will be populated through a two-step 
process by which the Nomination Panels will nominate Directors 
to the Board. Before the date of transfer, each nomination 
panel submits to the Secretary a list, chosen by consensus, of 
four qualified individuals nominated to be Directors. The 
Secretary is required, no later than 30 days after the last 
nomination list submission, to appoint two individuals to be 
Directors, and select the appropriate number of individuals to 
be Directors from each list submitted by the nomination panels. 
After the date of transfer, the lists of four qualified 
individuals nominated to be Directors is submitted to the Board 
of Directors for selection. The Secretary continues the 
appointment of two Directors as needed to fill vacant seats.
    The Board's composition will be:
          --Two Directors appointed by the Secretary of 
        Transportation;
          --The Chief Executive Officer (CEO) of the 
        Corporation;
          --One Director nominated by the Passenger Air Carrier 
        Nomination Panel;
          --One Director nominated by the Cargo Air Carrier 
        Nomination Panel;
          --One Director nominated by the Regional Air Carrier 
        Nomination Panel;
          --One Director nominated by the General Aviation 
        Nomination Panel;
          --One Director nominated by the Business Aviation 
        Nomination Panel;
          --One Director nominated by the Air Traffic 
        Controller Nomination Panel;
          --One Director nominated by the Airport Nomination 
        Panel;
          --One Director nominated by the Commercial Pilot 
        Nomination Panel; and
          --Two ``at-large'' Directors nominated and selected 
        by the other Directors on the Board.
    The terms of the first Directors will expire two years 
after the date of transfer. Following the date of transfer, 
Directors will serve staggered terms. A Director can serve 
after the expiration of the Director's term until a successor 
has taken office. Directors are term-limited to eight years.
    The fiduciary duties of the Directors will be to the 
Corporation, not to the stakeholder groups that nominated them 
or the Nomination Panels. If a Director breaches the fiduciary 
duty to the Corporation, the Director must be removed, and the 
Board may pursue legal action. There are also certain 
qualifications for individuals to serve as Directors. Directors 
must be American citizens and are subject to restrictions that 
prohibit individuals with possible conflicts of interest from 
serving on the Board. No employees of the Corporation (except 
the CEO), government officials or employees, employees of any 
bargaining agent representing employees of the Corporation, or 
employees of any entity with a material interest as a user or 
supplier of the Corporation services can serve as a Director.
    A Director may be removed by the Board in accordance with 
the Corporation's bylaws. The Board is responsible for hiring a 
CEO to manage and direct the day-to-day operations of the 
Corporation, a Chief Financial Officer, and a Chief Operating 
Officer. The CEO, who must be an American citizen, will also be 
responsible for all officers and employees of the Corporation, 
and will serve at the pleasure of the Board. Compensation, 
including bonuses and other financial incentives, for the Board 
and CEO will be set forth in the bylaws and included in the 
Corporation's annual financial report. The Corporation is also 
required to establish a Compensation Committee.
    The Board will be responsible for corporate governance of 
the Corporation, and has the sole authority to amend corporate 
bylaws, adopt annual budgets, approve strategic plans, approve 
the issuance of bonds, and to hire a CEO. The Board will be 
required to maintain a Safety Committee composed of Directors 
to ensure the Corporation will maintain and improve upon the 
current high level of safety in the ATC system. The Board will 
also establish a Technology Committee.
    The Corporation will have an Advisory Board consisting of 
no more than 15 individuals representing interested persons, 
including: air carriers, GA, business aviation, commercial 
service airports; operators and manufacturers of commercial 
unmanned aircraft systems; appropriate labor organizations; the 
Department of Defense (DOD); and small communities. The 
Advisory Board will conduct activities directed by the Board of 
Directors and may on its own initiative study, report, and make 
ATC services-related recommendations to the Board of Directors. 
The Advisory Board will also make recommendations to the Board 
on the selection of ``at-large'' Directors.

Transition

    The Secretary will manage and oversee the transfer of ATC 
services to the Corporation to ensure that the transition 
receives the proper level of attention and to ensure that the 
FAA Administrator remains focused on the safe operation of the 
ATC services, near-term NextGen projects, and other important 
responsibilities. The transfer of operational control of ATC 
services, as well as all federal personnel, facilities, and 
activities needed to provide those services, will occur on 
October 1, 2020.
    Between date of enactment and date of transfer, there will 
be formal processes for determining which activities and 
personnel will move to the Corporation or be retained at the 
FAA. These processes include a transition team made up of 
different representatives from the FAA and the Corporation, to 
recommend processes for how the transition will be carried out. 
Other more informal processes will be taking place as well to 
ensure that inward-facing FAA protocols for ATC services are 
either carried over to the Corporation or rewritten as outward-
facing safety regulations. The processes and negotiations will 
involve the Corporation, the Secretary, the FAA, and 
appropriate labor organizations. To ensure Congress is kept 
well-informed on the transition, the DOT IG will submit 
quarterly reports on the progress of the transition.

Safety oversight and regulation of the Corporation

    The Secretary will be responsible for the performance-based 
safety oversight of the Corporation. Prior to the date of 
transfer, the Secretary will prescribe performance-based 
regulations and minimum safety standards for the Corporation's 
operation of ATC services. The regulations will include a 
safety management system (SMS) for the assessment and 
management of risk in all procedures, processes, and practices 
necessary to operate ATC services. Initially, this SMS will be 
based on the one currently used by the FAA, but specific safety 
review processes with the Secretary's approval will allow the 
Corporation to modify the SMS as needed over time. The safety 
standards combined with the SMS will ensure that the 
Corporation continues and improves upon the safety the ATC 
system currently enjoys.
    The Corporation will be required to maintain adequate 
levels of insurance and coverage to provide complete 
indemnification of the Corporation's employees and protect the 
Corporation from financial harm. As part of the safety 
oversight of the Corporation, the Secretary will determine what 
constitutes adequate levels of insurance.
    The Corporation, as an independent, not-for-profit, private 
corporation, will not exercise any regulatory authority, 
meaning the Secretary will be responsible for taking any 
regulatory action related to ATC services, including the 
reclassification of airspace or imposition of required equipage 
standards. The Corporation, as the provider of ATC services, 
will be in a unique position of being able to analyze how 
airspace or an air route should be configured. As part of the 
transition, the Secretary will establish a process for the 
expeditious review of proposed changes to the airspace by the 
Corporation. To be clear, the Corporation will only be able to 
suggest changes to airspace classifications or other similar 
changes, and the Secretary will be solely responsible for 
exercising regulatory power to enact those changes. The 
National airspace will remain a federally regulated, sovereign 
domain of the United States. The Corporation will simply 
provide ATC services to the users of the National airspace.

Financing

    The Corporation will be funded entirely through charges and 
fees assessed and collected from air traffic services users. 
The charges and fees must be consistent with a set of statutory 
charging principles including the following:
          --Charges and fees must be consistent with the 
        International Civil Aviation Organization's (ICAO) 
        Policies on Charges for Air Navigation Services, Ninth 
        Edition, 2012;
          --Charges for certain categories of users may be 
        charged on a flat-fee basis;
          --Charges and fees may not be discriminatory;
          --Charges and fees may not be structured in a manner 
        that incentivizes unsafe operations to avoid charges 
        and fees;
          --Access to airspace cannot be based on the level of 
        charges a user pays or whether the user is subject to 
        charges at all; and
          --Charges and fees may not violate any international 
        obligation of the United States.
          --Charges and fees may not be imposed for air traffic 
        services provided to public use aircraft under sections 
        40102(a) and 40125.
          --Charges may not be imposed on GA aircraft 
        operations under Parts 91, 135, 136, and 137 of Title 
        14, Code of Federal Regulations.
          --Charges and fees must be based on reasonable and 
        financially sound projections of what is needed to 
        provide the current and projected provision of air 
        traffic services.
    To reiterate, charges may not be imposed on aircraft 
operations under Parts 91, 135, 136, and 137 of Title 14, Code 
of Federal Regulations. These operations include private 
aviation, air ambulance, air taxi, agricultural, air tours, and 
certain industrial flights. GA users will support the aviation 
system just as they always have, through fuel taxes that are 
controlled by Congress. Further, military and other public 
aircraft flights will also be exempt from the charges.
    The Corporation's Board of Directors will be responsible 
for setting and approving the charges and fees for ATC 
services. The Secretary must approve initial charges and fees 
as well as any increases to the charges and fees following a 
public comment period. The Secretary must apply statutory 
criteria in reviewing such charges and fees proposals by the 
Corporation and the Secretary will also review any charge and 
fee assessments under dispute. Disputed decisions of the 
Secretary are subject to judicial review.
    As an independent, not-for-profit Corporation, the 
Corporation will be able to issue revenue bonds and other debt 
instruments in the private markets, providing more stable and 
effective capital financing, however, the Corporation will not 
be permitted to issue or sell equity shares or stock in the 
Corporation.

Employee Management

    Over 30,000 federal personnel will transfer from the FAA to 
the Corporation, including more than 14,000 air traffic 
controllers. A central tenant of the bill is that federal 
employees who transfer to the Corporation will be kept whole in 
terms of the benefits or compensation they received and were 
promised as federal employees. Transferred federal employees 
may retain their federal retirement and health insurance plans 
or opt for the benefit plans offered by the Corporation. For 
employees retaining their federal retirement and health 
insurance plans, the Corporation will pay any required 
deductions and employer contributions.
    To ensure total system continuity, many aspects of existing 
federal labor-management relations will be preserved through 
partial application of the laws that currently apply to the FAA 
and its labor organizations. The rights of air traffic 
controllers and other employees to participate in labor 
organizations and to collectively bargain will also be 
preserved. The Corporation must recognize and bargain with the 
labor organizations selected by the employees and comply with 
the terms of collective-bargaining agreements (CBAs) and 
arbitration awards in effect on the date of transfer until such 
agreements and awards expire or are lawfully altered or 
amended. CBAs must be effective for no less than two years.
    Because ATC services are so vital to the national economy, 
the Corporation's employees are prohibited from engaging in any 
strike or other organized disruption. Disputes arising from 
CBAs must be resolved through mediation. If mediation fails, 
the dispute will be resolved through binding arbitration. There 
is an absolute ban on striking.

Continuity of Air Service and Access

    Preserving air service and airspace access for all users of 
the National Airspace System (NAS), especially general and 
business aviation users, is critical to ensuring the success of 
American aviation. No airspace user may be denied access to 
airspace or air traffic services on the basis that a user is 
exempt from paying charges or fees.
    If the Corporation proposes an airspace or other change 
that materially reduces access to airspace or an airport, it 
triggers a multi-step review process by the Corporation and DOT 
to ensure that the reduction in access is mitigated, and the 
change is in the public interest. The process also includes the 
ability for users and communities to appeal the decision to the 
Secretary and the judicial system.
    The bill also directs the Secretary to develop a process 
for the Secretary to review any proposals to close an air 
traffic control tower that prior to the date of transfer was 
operated under the FAA's Contract Tower Program. The process 
would apply when the proposed closure would result in an 
airspace change and at the request of the airport sponsor. 
There are other types of changes or locations where changes may 
occur, that will merit special attention by the Secretary. For 
example, changes near major airports or specific national 
security or defense designations will have a longer review 
period than other airspace modification proposals.

                         BENEFITS OF ATC REFORM

    ATC reform would separate air traffic services from the 
federal regulator (the FAA) by transferring it to a federally 
chartered, independent, not-for-profit Corporation. Under the 
21st Century AIRR Act, ATC service would be provided by a not-
for-profit entity, while oversight and all regulation of the 
airspace would continue to be provided by the FAA. ATC reform 
will result in real benefits to the flying public, taxpayers, 
and other users of the aviation system, including--
          --Reducing the size of the Federal government. ATC 
        reform will result in more than 30,000 Federal 
        employees moving to the private sector, reducing the 
        size of the FAA significantly. The Federal employees 
        will be held harmless in their transition to the 
        private sector. But, it is important to note that the 
        very same air traffic controllers who are providing ATC 
        services as federal employees on the day before 
        transition will be back at work providing ATC services 
        as employees of the new service provider on the day 
        after transition. Continuity of air services will be 
        maintained, but the federal bureaucracy will be greatly 
        reduced.
          --Ensuring the travelling public is not charged twice 
        for ATC facilities they have already paid for. ATC 
        reform transfers all ATC assets to the new entity 
        without any charge. This is because the users of the 
        airspace and the travelling public have largely funded 
        ATC facilities and equipment through the Airport and 
        Airway Trust Fund. The Trust Fund receives its revenue 
        from taxes on passengers, air cargo, and aviation 
        fuels, meaning the users of the airspace and the 
        travelling public have largely funded the construction 
        of the system. Requiring payment for any property 
        transferred to the new service provider would result in 
        double-charging the travelling public that already paid 
        for the property in the first place. The new service 
        provider should use its capital to invest in new and 
        modern technologies rather than crumbling buildings and 
        antiquated computers.
          --Resolving the inherent conflict of interest that 
        exists when the regulator regulates itself. With ATC 
        reform, the FAA will continue to regulate and be able 
        to focus on the safety of the U.S. aviation system and 
        airspace. The new entity will provide and modernize ATC 
        services, nothing more. Since 1987, over 60 nations 
        have successfully separated their ATC service provider 
        from their government safety regulator. Overwhelming 
        evidence from U.S. government and other reports shows 
        that separating ATC operations has led to better 
        performance on safety, modernization, service quality, 
        cost, and financial stability. In 2014, the FAA asked 
        MITRE to investigate six international regulators to 
        determine the impact on the regulator after the service 
        provider had been spun off. MITRE concluded, ``The 
        collective experience . . . is quite good.''\66\ 
        Additionally, MITRE found that ``. . .in each case the 
        safety record of the [service provider] was equal to, 
        or better than, the record prior to the separation. . . 
        . ''\67\ The regulators interviewed were ``unanimous in 
        stating that the separation of the [regulator] from air 
        traffic service provision was worth it. Among the 
        benefits they expressed were an increased focus on 
        safety by the Regulator and the [service provider], 
        improved efficiency of the [service provider], 
        reduction in total cost to users, and improved 
        participation by aviation stakeholders.''\68\
---------------------------------------------------------------------------
    \66\ CAA International Structures, MITRE Corporation, p. 7 (October 
2014).
    \67\ Id. at 7.
    \68\ Id. at 9-10.
---------------------------------------------------------------------------
          --Lowering the cost of flight and protecting the 
        taxpayer. International experience has shown that the 
        efficiencies gained through ATC reform result in lower 
        costs for all system users. In Canada, inflation-
        adjusted ATC fees are now 45% lower than the aviation 
        taxes they replaced.\69\ The new service provider will 
        not receive Federal appropriations nor will its debt be 
        considered to be backed by the Federal government. ATC 
        reform also incorporates best practices and lessons 
        learned from countries around the world by requiring 
        the service provider to maintain sufficient capital 
        reserves to mitigate unanticipated downturns in air 
        traffic.
---------------------------------------------------------------------------
    \69\ Canada's Air Traffic Provider Announces Lowered Fees; U.S. 
Should Embrace Same Model, Marc Scribner, Competitive Enterprise 
Institute, https://cei.org/blog/canadas-air-traffic-provider-announces-
lowered-fees-us-should-embrace-same-model, (May 30, 2017).
---------------------------------------------------------------------------
          --Reinstating the United States as the world leader 
        in ATC services. The United States has the most 
        expansive and safest airspace in the world and yet it 
        is still operating a system that is based on antiquated 
        technologies. ATC services in the United States are 
        certainly not the most efficient. While other countries 
        have separated their ATC service provider from their 
        government regulator, the United States has lagged 
        behind. Instead, the United States has kept its ATC 
        service provider within a government bureaucracy that 
        is vulnerable to political instabilities. Private ATC 
        service providers, such as UK NATS in the United 
        Kingdom or NavCanada in Canada, have already deployed 
        technologies that the FAA is still working to develop. 
        While the taxes that are used to fund the FAA's air 
        traffic organization have stayed the same over the 
        years, NavCanada has lowered its user fees on the 
        traveling public four times. Still, there are 
        significant differences between the FAA and other ATC 
        service providers. Other ATC service providers have 
        deployed new technologies, increased the efficiency and 
        safety of their systems, and reduced the cost to the 
        traveling public.\70\ The FAA, on the other hand, has 
        had a series of modernization programs over the past 
        three decades that have failed to deliver promised 
        efficiencies while its budget has increased by 95% in 
        roughly two decades.\71\
---------------------------------------------------------------------------
    \70\ Id.
    \71\Office of the Inspector General, U.S. Department of 
Transportation, FAA Reforms Have Not Achieved Expected Cost, Efficiency 
and Modernization Outcomes, AV-2016-15 (2016).
---------------------------------------------------------------------------
          --Removing ATC modernization from onerous and 
        bureaucratic government procurement processes and 
        dysfunctional budgetary cycles. Since 2003, the FAA has 
        been undergoing its modernization initiative known as 
        ``NextGen''. At its inception, the modernization 
        initiative was marketed as a way to fundamentally 
        transform how air traffic would be managed. Both the 
        National Research Council and the DOT IG have pointed 
        out that instead of fundamentally changing how air 
        traffic is managed, as initially promised, the FAA's 
        NextGen effort has shifted to replacing and updating 
        decades-old equipment and systems.\72\ The GAO has 
        documented instances where budget uncertainty has 
        affected FAA's ability to perform its mission.\73\ 
        Additionally, there are questions regarding how the FAA 
        manages NextGen programs. For instance, the DOT IG has 
        expressed concerns with the FAA's practice of dividing 
        its programs into multiple segments and funding each 
        segment separately.\74\ The DOT IG points out that 
        while this may minimize risk, it ``. . . masks how much 
        a program will ultimately cost. . .'' and ``. . . makes 
        it difficult to track what capabilities or benefits 
        will be delivered, total cost of the program, and when 
        the program will be complete.''\75\
---------------------------------------------------------------------------
    \72\ A Review of the Next Generation Air Transportation System: 
Implications and Importance of System Architecture, p. 3, National 
Research Council, The National Academies Press (2015); and Total Costs, 
Schedules, and Benefits of FAA's NextGen Transformational Programs 
Remain Uncertain, Department of Transportation Office of the Inspector 
General, p. 17, AV-2017-009 (November 10, 2016).
    \73\ Government Accountability Office, Aviation Finance: 
Observations on the Effects of Budget Uncertainty on FAA, GAO-16-198R 
p.3 (November 19, 2015).
    \74\ Total Costs, Schedules, and Benefits of FAA's NextGen 
Transformational Programs Remain Uncertain, Department of 
Transportation Office of the Inspector General, pp.4-5, AV-2017-009 
(November 10, 2016); see also, FAA Reforms Have Not Achieved Expected 
Cost, Efficiency, and Modernization Outcomes, Department of 
Transportation Office of the Inspector General, AV-2016-015, p. 12 
(January 15, 2016).
    \75\ Id.
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          ATC reform will help expedite long-term ATC system 
        modernization by freeing the new service provider from 
        government dysfunction, political interference, and the 
        growing unreliability of the annual appropriations 
        process. The new service provider will be able to avoid 
        the risks that accompany politically-driven Federal 
        budget and authorization processes, including resource 
        constraints, continuing resolutions, authorization 
        extensions, sequestration, and government shutdowns. 
        Free of the bureaucratic red tape of the FAA's 
        procurement processes, the new service provider will be 
        able to access the financial markets and leverage 
        private funding for multi-year capital projects. This 
        in turn will allow funding to transform ATC services 
        and still perform continuous technology refreshments to 
        keep the technology up-to-date and competitive with 
        that of our global peers.
          --Offering real reform rather than targeted reforms 
        that have already been tried and have failed: Since 
        1995, Congress has passed procurement, personnel, and 
        structural reforms granting the FAA unique authorities 
        to allow it to run more like a business. The FAA has 
        fundamentally failed to take advantage of these reforms 
        and its performance has simply not improved. The DOT IG 
        determined that the agency's total budget, operations 
        budget, and compensation costs have nearly doubled, 
        while productivity at its network of air traffic 
        facilities has decreased substantially.\76\ The DOT IG 
        also found that FAA has not accelerated delivery of new 
        technologies and has not reduced costs or schedule as 
        anticipated with its transition to the acquisition 
        management system. Giving the FAA greater budgetary and 
        procurement flexibilities would require Congress to 
        cede greater oversight and management of NextGen 
        programs to the very Agency that has failed to deliver 
        on NextGen promises and benefits in the first place.
---------------------------------------------------------------------------
    \76\Statement of Calvin Scovel III, House Committee on 
Transportation and Infrastructure, ``The Need to Reform FAA and Air 
Traffic Control to Build a 21st Century Aviation System for America'', 
May 17, 2017, available at: https://www.oig.dot.gov/sites/default/
files/DOT%20IG%20Scovel%20Statement%20for%20May%2017%20FAA%20hearing%5E5
-17-17.pdf
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          --Ensuring continuity of ATC services to GA. H.R. 
        2997 ensures the new service provider's entire mission 
        will be to provide the safest, most efficient, and 
        modern ATC services possible to all system users. GA is 
        a vital segment of our aviation community, which is why 
        the bill includes two GA seats on the Board of 
        Directors of the new corporation to ensure parity in 
        corporate governance. The new ATC service provider will 
        be legally prohibited from charging user fees to any 
        segment of GA. Instead, GA will support the aviation 
        system as it always has: through fuel taxes. The new 
        service provider will be prohibited from unilaterally 
        restricting airspace or airport access in any way. GA 
        operators will be guided through the National airspace 
        operating under the same rules that apply today--with 
        safety as the first priority. Any changes to ATC 
        procedures must be in accordance with the law and 
        approved by the FAA before they can be implemented. 
        H.R. 2997 requires that if the new service provider 
        proposes to alter the airspace in a way that might 
        restrict access, it would be subject to strict 
        governmental review and approval.
          --Ensuring national defense and continuity of ATC 
        services to public aircraft, including DoD aircraft. 
        Under the 21st Century AIRR Act, sole responsibility 
        for national defense, national intelligence, and the 
        national airspace remains with the Federal government. 
        The new entity will provide a service, nothing more. 
        The Corporation will support all United States 
        government flight activities currently supported by the 
        FAA. Every day, in the U.S. and overseas DOD and other 
        Government aircraft operate alongside civilian aircraft 
        in the same airspace operated by the same air traffic 
        controllers. Under H.R. 2997, none of this would change 
        unless approved by the FAA with the input of DOD and 
        other Federal government stakeholders. The DOD will 
        continue to provide ATC services within U.S. airspace 
        same as it does today. The Corporation, DOT, and other 
        Federal agencies supported by FAA's current operation 
        of ATC services, including DOD, will reach agreements 
        to ensure cooperation, facilitate the safe provision of 
        ATC services, and address coordination and 
        communication of day-to-day operations after the date 
        of transfer. The emergency powers of the Armed Forces 
        are preserved, as is the President's authority to 
        temporarily transfer ATC services to the Secretary of 
        Defense in times of war. The DOD will have a seat on 
        the Advisory Board of the Corporation. Lastly, DOD and 
        other government agencies are exempt from paying users 
        fees or charges for ATC services.

      STRUCTURE AND AUTHORITY OF THE PRIVATE ATC SERVICE PROVIDER

    In separating and transferring the provision of ATC 
services from the federal government, the bill respects the 
bounds of the Constitution by structuring the new ATC service 
provider as an independent, private entity and clearly 
delineating the commercial activities of the new service 
provider from the governmental functions that remain with the 
FAA and DOT. From a historical perspective, ATC began as a not-
for-profit business in the 1920s that was financed through 
private means. In the 1930s, the ATC service provider was taken 
over by the federal government. Since that time, the federal 
government has operated ATC services and simultaneously 
regulated its own operation of those services.
    H.R. 2997 divests the ATC service business from the 
government and returns it to the private sector, as a not-for-
profit private corporation, called the American Air Navigation 
Services Corporation.\77\ The Corporation is exclusively 
authorized to operate ATC services within United States 
airspace and international airspace delegated to the United 
States.\78\ The airspace itself remains a federally regulated, 
sovereign domain of the United States just as it is today. The 
bill essentially licenses the Corporation to provide such 
services subject to federal economic and safety regulation. 
Among other things, the Corporation is prohibited from 
discriminating in the provision of its services and may not 
deny a user its services without the approval of the Secretary, 
much akin to common carriers in the transportation sector.\79\
---------------------------------------------------------------------------
    \77\See H.R. 2997 section 211 (adding 49 U.S.C. 90301).
    \78\See H.R. 2997 section 211 (adding 49 U.S.C. 90302).
    \79\See, e.g., 49. U.S.C. 11101 (establishing the common carrier 
requirement for rail carriers that they provide service upon request); 
49 U.S.C. 14101 (establishing the common carrier requirement for water 
carriers that they provide service upon request); 49 U.S.C. 15701 
(establishing the common carrier requirement for certain pipeline 
carriers that they provide service upon request).
---------------------------------------------------------------------------
    From a Constitutional perspective, the bill ensures the 
Corporation will exist as a private commercial service provider 
subject to arms-length federal regulation and oversight in line 
with other sectors of aviation and aerospace industries. This 
structure is achieved by the precise construction of the 
Corporation and its authorized activities. This is evident in 
the Corporation's structure, ownership, oversight by the 
government, goals, management, and funding, all of which were 
crafted to ensure its private status.\80\
---------------------------------------------------------------------------
    \80\See Dept. of Transp. v. Ass'n of Am. R.R., 135 S. Ct. 1225, 
1231-32 (2015) (Dept. of Transp.) (setting forth the factors the Court 
considered to determine whether a statutorily created entity was 
governmental or private in nature).
---------------------------------------------------------------------------
    The Corporation is established as an independent not-for-
profit business that will be incorporated in a State of its 
choosing.\81\ It is not a department, agency, or 
instrumentality of the federal government, nor is it owned by 
the government.\82\ It would perform no governmental functions 
whatsoever. As such, the Corporation is governed by a Board of 
Directors made up of 13 disinterested, independent directors, 
none of which are appointed by the President and confirmed by 
the Senate.\83\ Of the 13 Board Members, nine are nominated by 
panels of stakeholders, two are selected by the Secretary of 
Transportation, and two selected at-large by the other Board 
members. All directors hold a fiduciary duty solely and 
exclusively to the Corporation, and are subject to removal from 
the Board for violating that duty. This structure will ensure 
the Board members, regardless of how or by whom they are 
selected, act in the interest of the Corporation. To further 
ensure its independence, the Corporation is also prohibited 
from issuing stock, so it will be neither owned nor controlled 
by the government or any other private entity.\84\ The 
Corporation therefore will not be governed or owned by any of 
the stakeholders, nor the government, but will be independent 
and privately managed as a not-for-profit corporation.\85\
---------------------------------------------------------------------------
    \81\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90304) 
(establishing the Corporation as a not-for-profit corporation) with 
Ass'n of Am. R.R. v. Dept. of Transp., 821 F.3d 19, 27 (D.C. Cir. 2016) 
(Ass'n of Am. R.R.) (noting that Amtrak was ``operated `as a for-profit 
corporation' charged with ``undertak[ing] initiatives . . . designed to 
maximize its revenues.''' when determining whether ``an economically 
self-interested entity [was] exercis[ing] regulatory authority over its 
rivals'' in violation of the Constitution).
    \82\See H.R. 2997 section 211 (adding 49 U.S.C. 90304). Further, as 
a private entity, the Corporation is prohibited from negotiating on 
behalf of the government before any international organization. See 
H.R. 2997 section 211 (adding 49 U.S.C. 90503).
    \83\See H.R. 2997 section 211 (adding 49 U.S.C. 90306). In Dept. of 
Transp., the Supreme Court, in finding Amtrak to be governmental in 
nature, looked at its Board composition, citing that eight of the nine 
members were appointed by the President and confirmed by the Senate. 
Dept. of Transp., 135 S. Ct. at 1231.
    \84\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90312 
(prohibiting the Corporation from issuing equity shares)), with Dept. 
of Transp., 135 S. Ct. at 1231 (explaining all preferred stock of 
Amtrak and a majority of its common stock was owned by the government).
    \85\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90304), with 
Dept. of Transp. 135 S. Ct. at 1231-32 (focusing on the ownership of 
Amtrak by the government, Amtrak's structure, and the government's role 
in appointing 8 of its 9 Directors in determining Amtrak was 
governmental).
---------------------------------------------------------------------------
    The Corporation is also free from the government's 
management of its day-to-day activities, and is free to operate 
and manage ATC services within the United States' airspace 
subject to federal regulation.\86\ In that regard, the 
Corporation will be no different than any other regulated 
company in the aviation and aerospace industry. For example the 
Secretary will prescribe performance-based regulations, similar 
to those applicable to other transportation companies, to 
govern safety and airspace management procedures.\87\ Further, 
the Corporation is required to report to the Secretary and 
Congress on safety performance and its financial 
conditions,\88\ however, such federal reporting requirements 
are commonplace among regulated industries.\89\ Finally, the 
Corporation will have no financial ties to the government, its 
debt will not be backed by the government and it will be 
precluded from receiving federal funding from the Airport and 
Airway Trust Fund, which is the primary source of funding for 
the FAA's current operation of ATC services and its safety 
oversight programs.\90\ Instead, like other private service 
providers, the Corporation will raise revenue through charging 
fees for its services.\91\ It will also be free to issue bonds, 
repaid by its fees for services.\92\ This structure will 
provide the Corporation with the commercial freedom necessary 
to reliably operate and maintain a technology business 
untethered from the politically driven, and uncertain, 
government budgetary processes.
---------------------------------------------------------------------------
    \86\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90302), with 
Dept. of Transp. 135 S. Ct. at 1232 (in determining Amtrak to be 
governmental, the Court focused on the significant government 
involvement in Amtrak's operations, including requiring certain routes, 
applying the Freedom of Information Act to Amtrak, requiring certain 
considerations when making improvements to the Northeast Corridor, and 
applying Buy American requirements to Amtrak purchases of $1 million or 
more).
    \87\See, generally, 49 U.S.C. Chapter 447 (establishing the federal 
government's regulation of aviation safety); 49 U.S.C. Subtitle VII, 
Part A, Subpart ii (establishing the federal government's economic 
regulation of air transportation); 49 U.S.C. Subtitle V, Part A 
(establishing the federal role in the safety regulation of rail 
carriers); 49 U.S.C. Chapter 601 (establishing the federal government's 
authority to regulate the safety of pipeline transportation and 
pipeline facilities); 49 U.S.C. Chapter 51 (establishing the federal 
government's authority to regulate the safe transportation of hazardous 
materials).
    \88\See H.R. 2997 section 211 (adding 49 U.S.C. 90501 (safety 
regulation of the new Corporation); 90505 (requiring safety violations 
be reported to the Secretary); 91502-91505 (requiring certain plans be 
submitted to the Secretary)).
    \89\See 49 U.S.C. 41708 (authorizing the Secretary of 
Transportation to require certain reports from air carriers); 49 U.S.C. 
11145 (requiring annual reports of rail carriers, lessors, and 
associations to be filed with the Surface Transportation Board); 49 
U.S.C. 11162 (requiring each rail carrier to have a cost accounting 
system that complies with Board rules); 49 U.S.C. 11163 (establishing 
uniform expense and revenue accounting and reporting for rail 
carriers).
    \90\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90304 
(prohibiting the government for being liable for the actions of the 
Corporation, prohibiting the government from being liable for the debt 
of the Corporation)) and section 244 (prohibiting the Corporation from 
receiving federal funds from the Airport and Airway Trust Fund), with 
Dept. of Transp., 135 S. Ct. at 1232 (explaining Amtrak is ``dependent 
on federal financial support'' receiving over $41 billion in federal 
subsidies over its then-43 year history, with ``recent years [] 
subsidies exceed[ing] $1 billion annually'').
    \91\See H.R. 2997 section 211 (adding 49 U.S.C. 90313).
    \92\See H.R. 2997 section 211 (adding 49 U.S.C. 90308).
---------------------------------------------------------------------------
    While created by the government, the Corporation would 
neither be controlled by the government, nor operated for the 
government's benefit.\93\ The Corporation is established as an 
``autonomous private enterprise''.\94\
---------------------------------------------------------------------------
    \93\Dept. of Transp., 135 S. Ct. at 1232 (``Amtrak was created by 
the Government, is controlled by the Government, and operates for the 
Government's benefit.'')
    \94\Id. (stating ``Amtrak is not an autonomous private 
enterprise'').
---------------------------------------------------------------------------
    As a private entity, the H.R. 2997 ensures a clear 
delineation of the Corporation's activities vis-a-vis the 
federal government. Currently, the government is acting as both 
the technology service-provider and the safety regulator--
regulating itself. The bill carefully separates the ATC 
business operations of the FAA, which are fundamentally 
commercial in nature, from the government regulator. Thus, all 
``significant'' or regulatory authority of the federal 
government remains solely with the DOT and FAA, while only 
those activities related to the provision of ATC service are 
removed from the federal government.
    The Corporation is authorized to manage and operate air 
traffic services within the federally regulated, sovereign 
domain of United States airspace and international airspace 
assigned to the United States.\95\ The federal government would 
continue in its traditional, longstanding role of aviation 
safety regulator. It would establish and approve performance-
based regulations and minimum safety standards for the 
provision of air traffic services, operation of air navigation 
facilities, and the enforcement of safety requirements.\96\ To 
the extent ATC service is currently legally necessary, that is 
because the obligation arises from congressionally authorized 
FAA regulations; it would not and cannot arise from any 
authority or power of the Corporation.\97\ That constitutional 
reality is acknowledged and honored in this bill. Under HR 
2997, while the Corporation, like any other private entity or 
individual, may propose changes to airspace management or 
related regulations, it cannot regulate when and where ATC 
service must be used.\98\ Indeed, there are certain flight 
operations for which the Secretary has determined no ATC 
service is required at all. But, like other common-carriers 
granted license by the government to operate, the Corporation 
must provide ATC services and may not deny them without 
governmental approval or authority to do so.\99\
---------------------------------------------------------------------------
    \95\See H.R. 2997 section 211 (adding 49 U.S.C. 90302).
    \96\See H.R. 2997 section 211 (adding 49 U.S.C. 90501 (continuing 
the Secretary's authority to establish airspace safety management and 
procedures); 90505 (clarifying that enforcement authority of 
noncompliance with air traffic procedures remains with the FAA)).
    \97\See 14 C.F.R. 91.130.
    \98\See H.R. 2997 section 211 (adding 49 U.S.C. 90501 (requiring 
the Secretary to prescribe and change the performance-based regulations 
and requiring the Corporation to following the safety regulations)).
    \99\See H.R. 2997 section 211 (adding 49 U.S.C. 90501-90502).
---------------------------------------------------------------------------
    Also, like other private entities, the Corporation is 
allowed to establish fees and charges, including late charges, 
for its services.\100\ However, this commercial discretion to 
set a price for service is subject to economic regulatory 
processes and approvals. Under H.R. 2997, the Board has a duty 
to establish its own fees and charges, including late fees, 
penalties, and interest, for the services the Corporation 
provides.\101\ Regardless of whether there are changes to 
increase or decrease fees and charges, the Board must approve 
all fees and charges taking into account certain standards, 
such as complying with international standards and obligations, 
complying with statutory fee principles, non-discrimination, 
not reducing airspace access, and not reducing safety.\102\
---------------------------------------------------------------------------
    \100\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90308 and 
90313 (requiring the Corporation to establish fees and charges for its 
services)), with 49 U.S.C. 10702 (requiring a rail carrier to establish 
rates for services).
    \101\See H.R. 2997 section 211 (adding 49 U.S.C. 90308 and 90313). 
It is important to note that the Corporation may only set fees and 
charges for its own services, not fees and charges for the services or 
products of other private entities. See Sunshine Anthracite Coal Co. v. 
Adkins, 310 U.S. 381, 398-99 (1940) (analyzing a private entity that 
proposed coal prices for the industry); Carter v. Carter Coal, 298 U.S. 
238, 310-311 (evaluating a delegation to a majority of coal producers 
of the power to fix the hours and wages for all producers in the entire 
coal industry); Pittston Co. v. United States, 368 F.3d 385, 395-96 
(4th Cir. 2004) (analyzing a private entity that was created to collect 
industry-wide assessments and premiums for benefits, and to manage the 
amount of benefits and who received the benefits for the industry).
    \102\See H.R. 2997 section 211 (adding 49 U.S.C. 90313). Section 
90308 in conjunction with 90313(d) applies principles and standards for 
the Board's establishment of fees and charges. Those standards include 
the following:
      ``(1) The amount or type of charges and fees paid by an air 
traffic services user may not--
        ``(A) be determinant of the air traffic services provided to 
the user; or
        ``(B) adversely impact the ability of the user to use or access 
any part of the national airspace system.
      ``(2) Charges and fees shall be consistent with the document 
titled 'ICAO's Policies on Charges for Airports and Air Navigation 
Services', Ninth Edition, 2012.
      ``(3) Charges and fees may not be discriminatory.
      ``(4) Charges and fees shall be consistent with United States 
international obligations.
      ``(5) Certain categories of air traffic services users may be 
charged on a flat fee basis so long as the charge or fee is otherwise 
consistent with this subsection.
      ``(6) Charges and fees may not be imposed for air traffic 
services provided with respect to operations of aircraft that qualify 
as public aircraft under sections 40102(a) and 40125.
      ``(7) Charges and fees may not be imposed for air traffic 
services provided with respect to aircraft operations conducted 
pursuant to part 91, 133, 135, 136, or 137 of title 14, Code of Federal 
Regulations.
      ``(8) Charges and fees may not be structured such that air 
traffic services users have incentives to operate in ways that diminish 
safety to avoid the charges and fees.
      ``(9) Charges and fees, based on reasonable and financially sound 
projections, may not generate revenues exceeding the Corporation's 
current and anticipated financial requirements in relation to the 
provision of air traffic services.''
---------------------------------------------------------------------------
Even where private entities are granted certain authority in statute, 
such power is permissible if the statute ``gives detailed guidance'' on 
how to carry-out those responsibilities. Pittston, 368 F.3d at 397. See 
also A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495, 
539-42 (1935) (holding that the delegation of authority to draw up 
binding codes of competition violated the nondelegation doctrine 
because the statute lacked adequate standards to develop the codes).
    For the initial schedule of fees and charges, which would 
include any proposed late fees, penalties, and interest, the 
Corporation must propose the schedule 180 days before the date 
of transfer to the Secretary.\103\ Then, the Secretary must 
review the schedule to ensure it complies with the standards of 
review and, if so, approve it, before the schedule takes 
effect.\104\ For any subsequent increase in fees and charges, 
the Secretary must also review and approve the schedule to 
determine if it complies with the standards outlined in 
statute. Furthermore, any fee or charge assessed by the 
Corporation may be challenged by the ATC service user through a 
complaint process established by the Secretary.\105\ The 
Secretary retains the authority to issue a final decision, 
however, it must be within 90 days of receiving the 
complaint.\106\ While many common carriers are free to 
establish their own fees for service, many still are subject to 
economic regulatory challenge by their customers, similar to 
the Corporation under the bill.
---------------------------------------------------------------------------
    \103\See H.R. 2997 section 211 (adding 49 U.S.C. 90313).
    \104\See Id.
    \105\See H.R. 2997 section 211 (adding 49 U.S.C. 90502).
    \106\See H.R. 2997 section 211 (adding 49 U.S.C. 90502 (requiring 
the Secretary to issue the final decision in a fee complaint)).
---------------------------------------------------------------------------
    The Corporation, like other private businesses, may seek 
redress in the courts for non-payment of fees and charges.\107\ 
This mechanism to collect delinquent payments is an exercise of 
a limited private right of action necessary to protect the 
economic interests of the Corporation; it is not the 
enforcement of a law of general applicability on behalf of the 
public or the United States.\108\ This distinction is 
important. The Corporation requires the same rights as other 
private commercial service providers, especially a common 
carrier, in the private sector. And, like any private person, 
the Corporation must be able to protect its own interests 
through the civil justice system. Such an exercise or 
invocation of a statutory, limited private right of action to 
protect an economic interest is not an exercise of sovereign 
governmental powers.
---------------------------------------------------------------------------
    \107\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90313 
(allowing the Corporation to sue to enforce failure to pay fees)), with 
49 U.S.C. 10743 (requiring shippers in the railroad industry to pay the 
rail carrier's rates, and allowing a rail carrier to bring an action to 
enforce payment of such rates) and 49 U.S.C. 11704 (granting a person 
injured by a rail carrier's failure to obey an order of the Surface 
Transportation Board the right to enforce orders of the Board in United 
States District Courts).
    \108\See Pittston, 368 F.3d at 396-397 (noting the private entity 
had the ``power to sue for monies owed to itself, which is not a 
governmental power, but a private one'' and holding that such powers 
``clearly do not violate the nondelegation doctrine'').
---------------------------------------------------------------------------
    Regardless of whether a user pays fees owed or not, the 
Corporation cannot deny service to any user for failure to pay 
fees or charges without the approval of the Secretary.\109\ 
Similar to other common carriers, the Corporation cannot deny 
any user of ATC services airspace access without governmental 
approval.\110\
---------------------------------------------------------------------------
    \109\See H.R. 2997 section 211 (adding 49 U.S.C. 90502).
    \110\See H.R. 2997 section 211 (adding 49 U.S.C. 90501-90502).
---------------------------------------------------------------------------
    The structures and mechanisms set forth in H.R. 2997 and 
outlined above recognize both the unique nature of the air 
traffic services the private Corporation will provide and the 
federal government's exclusive regulatory control over 
aviation, including ATC, and the sovereign domain of the 
National airspace. H.R. 2997 ensures a clear separation between 
the Corporation, a private entity, and the government with it's 
ongoing and exclusive role as a regulator, and as such respects 
the bounds of the Constitution.

                        Hearings and Roundtables

    The Committee on Transportation and Infrastructure and its 
Subcommittee on Aviation, held the following hearings on 
subjects related to matters addressed in H.R. 2997, as amended, 
during the 115th Congress:
          On June 8, 2017, the Committee on Transportation and 
        Infrastructure held a hearing entitled Building a 21st 
        Century Infrastructure for America: Federal Aviation 
        Administration Authorization. The purpose of this 
        hearing was to hear testimony from the Secretary of 
        Transportation Elaine Chao on issues related to the 
        FAA, the programs it administers, and FAA authorization 
        and reform.
          On May 17, 2017, the Committee on Transportation and 
        Infrastructure held a hearing entitled The Need to 
        Reform FAA and Air Traffic Control to Build a 21st 
        Century Aviation System for America. The purpose of 
        this hearing was to discuss the need for fundamental 
        reform of the ATC system and to receive testimony from 
        the DOT IG, the president of the National Air Traffic 
        Controllers Association, a former Clinton and Obama 
        administration official, the Director of Transportation 
        Policy of the Reason Foundation, and the president of 
        Hartzell Propeller.
          On May 2, 2017, the Committee on Transportation and 
        Infrastructure held a hearing entitled Oversight of 
        U.S. Airline Customer Service. The purpose of this 
        hearing was to hear testimony from major airlines and a 
        consumer group concerning the state of customer 
        services issues within the U.S. aviation system. The 
        Committee received testimony from representatives of 
        United Airlines, Southwest Airlines, American Airlines, 
        Alaska Airlines, and an aviation consultant from 
        Consumers Union.
          On April 4, 2017, the Subcommittee on Aviation held a 
        hearing entitled Building a 21st Century Infrastructure 
        for America: Enabling Innovation in the National 
        Airspace. The purpose of this hearing was to hear about 
        new aviation and aerospace technologies, users, and 
        business models, and to learn about the role of 
        innovation in building a 21st century aviation 
        transportation system. This hearing addressed any 
        potential challenges operators may face when 
        integrating new technology into the National airspace. 
        The Subcommittee received testimony from 
        representatives of the FAA, Amazon Prime Air, FlyGLO, 
        AirMap, Virgin Galactic, and VDOS Global.
          On March 8, 2017, the Subcommittee on Aviation held a 
        hearing entitled Building a 21st Century Infrastructure 
        for America: Air Transportation in the United States in 
        the 21st Century. The purpose of this hearing was to 
        hear about the current state of the U.S. air 
        transportation industry from a variety of perspectives. 
        The Subcommittee received testimony from 
        representatives of Alaska Air Group, Inc., SkyWest, 
        Inc., Air Transport Services Group, Association of 
        Flight Attendants-CWA, and Travelers United.
          On March 1, 2017, the Subcommittee on Aviation held a 
        hearing entitled Building a 21st Century Infrastructure 
        for America: State of American Airports. The purpose of 
        this hearing was to hear about the current state of 
        commercial service and general aviation airports across 
        the Nation and discuss the challenges and opportunities 
        associated with building a globally competitive 21st 
        century aviation infrastructure. The Subcommittee 
        received testimony from representatives of diversely 
        sized airports, including Dallas/Fort Worth 
        International Airport, Seattle-Tacoma International 
        Airport, Pittsburgh International Airport, Asheville 
        Regional Airport, and the Ventura County Department of 
        Airports.
          On February 15, 2017, the Subcommittee on Aviation 
        held a hearing entitled Building a 21st Century 
        Infrastructure for America: State of American Aviation 
        Manufacturing. The purpose of this hearing was to hear 
        about the current state of civil aviation 
        manufacturing, including the economic, regulatory, and 
        general health of American civil aviation 
        manufacturing. The Subcommittee also heard about the 
        challenges being faced in the industry. The 
        Subcommittee received testimony from representatives of 
        the FAA, Boeing Company, Pratt and Whitney, and Textron 
        Aviation.
    On February 1, 2017, the Committee on Transportation and 
Infrastructure held a hearing entitled Building a 21st Century 
Infrastructure for America. The purpose of this hearing was to 
hear about challenges facing our Nation's current 
transportation infrastructure and a vision for a modern 21st 
century transportation infrastructure. The Committee received 
testimony from representatives of FedEx Corporation, Cargill, 
BMW North America, Vermeer Corporation, and the AFL-CIO.
          The Committee on Transportation and Infrastructure 
        and its Subcommittee on Aviation, held the following 
        hearings and roundtables on subjects related to matters 
        addressed in H.R. 2997, as amended, during the 114th 
        Congress:
          On February 10, 2016, the Committee on Transportation 
        and Infrastructure held a hearing entitled Review of 
        ATC Reform Proposals. The purpose of this hearing was 
        to examine proposals to reform the ATC operations of 
        the FAA.
          On June 22, 2016, the Subcommittee on Aviation held a 
        hearing entitled FAA Oversight of Commercial Space 
        Transportation. The purpose of this hearing was to 
        explore issues related to the FAA's oversight of the 
        commercial space transportation industry.
          On June 15, 2016, the Subcommittee on Aviation held a 
        hearing entitled A Review of the Federal Aviation 
        Administration's Air Traffic Controller Hiring, 
        Staffing and Training Plans. The purpose of this 
        hearing was to review the FAA's air traffic controller 
        hiring, staffing, and training plans.
          On December 8, 2015, the Subcommittee on Aviation 
        held a roundtable entitled Review of Federal Aviation 
        Administration Air Traffic Controller Staffing. The 
        purpose of this roundtable was to examine concerns with 
        staffing levels at major ATC facilities and discuss if 
        the FAA's current training and hiring processes are 
        adequate.
          On May 21, 2015, the Subcommittee on Aviation held a 
        roundtable entitled FAA Reauthorization: Airport 
        Financing and Development. The purpose of this 
        roundtable was to discuss issues related to airport 
        financing and development.
          On April 30, 2015, the Subcommittee on Aviation held 
        a roundtable entitled Ensuring the Safety of Our 
        Nation's Aviation System. The purpose of this 
        roundtable was to discuss aviation safety issues and 
        policies as the Committee on Transportation and 
        Infrastructure works toward the reauthorization of the 
        FAA.
          On March 24, 2015, the Subcommittee on Aviation held 
        a roundtable entitled Options for FAA Air Traffic 
        Control Reform. The purpose of this hearing was to 
        discuss options for reforming ATC operations at the 
        FAA.
          On March 3, 2015, the Subcommittee on Aviation held a 
        roundtable entitled Federal Aviation Administration 
        Reauthorization: Enabling a 21st Century Aviation. The 
        purpose of the hearing was to receive testimony on 
        issues related to the FAA and federal aviation programs 
        with a view toward reauthorizing the programs before 
        they expire on September 30, 2015.
          On February 25, 2015, the Subcommittee on Aviation 
        held a roundtable entitled Issues Regarding Modernizing 
        and Operating the Nation's Airspace System held on 
        February 25, 2015. The purpose of this roundtable was 
        to discuss issues related to the FAA's modernization 
        and operation of the Nation's airspace system.
          On January 21, 2015, the Committee on Transportation 
        and Infrastructure held a hearing entitled FAA 
        Reauthorization: Reforming and Streamlining the FAA's 
        Regulatory Certification Processes. The purpose of this 
        hearing was to prepare for the FAA reauthorization, to 
        hear witnesses' testimony on FAA's certification 
        processes, to examine progress the FAA has made to 
        streamline the processes since the last 
        reauthorization, and to determine areas in need of 
        additional reform.
    The Committee on Transportation and Infrastructure and its 
Subcommittee on Aviation, held the following hearings on 
subjects related to matters addressed in H.R. 2997, as amended, 
during the 113th Congress:
          On July 23, 2014, the Subcommittee on Aviation held a 
        hearing entitled Domestic Aviation Manufacturing: 
        Challenges and Opportunities. The purpose of this 
        hearing was to review the state of American aviation 
        manufacturing. The Subcommittee heard about the 
        economic health of American aviation manufacturing and 
        challenges the industry is facing.
          On June 18, 2014, the Subcommittee on Aviation held a 
        hearing entitled Airport Finance and Development. The 
        hearing explored the current and future needs of 
        aviation infrastructure and how we can fund these 
        growing needs. Airports and airlines are at odds on 
        increasing or lifting the passenger facility charge 
        (PFC), so this hearing provided an opportunity to hear 
        various stakeholders' perspectives as the Committee 
        prepared for the next reauthorization bill.
          On February 5, 2014, the Subcommittee on Aviation 
        held a hearing entitled The FAA Modernization and 
        Reform Act of 2012: Two Years Later. After nearly two 
        years since the FAA Modernization and Reform Act of 
        2012 (FMRA) was signed into Public Law, the 
        Subcommittee heard from witnesses regarding the 
        progress the FAA had made in implementing provisions in 
        the FRMA over the two year period.
          On December 12, 2013, the Subcommittee on Aviation 
        held a hearing entitled The State of American Aviation. 
        The purpose of this hearing was to hear from 
        government, industry, and other stakeholders on the 
        state of American aviation and learn about any issues 
        or policy areas they believe need to be addressed in 
        the next FAA reauthorization.
          On October 30, 2013, the Subcommittee on Aviation 
        held a hearing entitled Review of the FAA's 
        Certification Process: Ensuring an Efficient, 
        Effective, and Safe Process. The purpose of the hearing 
        was to review the FAA's progress in implementing 
        provisions in the Reform Act, which required the agency 
        to develop plans to streamline their certification 
        process and address regional inconsistencies.
          On July 17, 2013, the Subcommittee on Aviation held a 
        hearing entitled Causes of Delays to the FAA's NextGen 
        Program. The purpose of the hearing was to address the 
        delays in the FAA's implementation of NextGen as 
        outlined in an audit conducted by the DOT IG.
          On May 16, 2013, the Subcommittee on Aviation held a 
        hearing entitled Review of the FAA's Progress in 
        Implementing the FAA Modernization and Reform Act. The 
        hearing was a continuation of the February 2013 hearing 
        addressing the FAA's progress in implementing the FMRA.
          On February 27, 2013, the Subcommittee on Aviation 
        held a hearing entitled Implementation of the FAA 
        Reauthorization and Reform Act: One Year Later. The 
        purpose of the hearing was to address the progress that 
        the FAA had made in the implementation of the FMRA.

                 Legislative History and Consideration

    On June 22, 2017, House Committee on Transportation and 
Infrastructure Chairman Bill Shuster (R-PA), Subcommittee on 
Aviation Chairman Frank A. LoBiondo (R-NJ), Subcommittee on 
Highways and Transit Chairman Sam Graves (R-MO), Subcommittee 
on Aviation Vice Chairman Paul Mitchell (R-MI), Representative 
Colleen Hanabusa (D-HI), and Representative Kyrsten Sinema (D-
AZ) introduced H.R. 2997, the 21st Century AIRR Act. On June 
27, 2017, the Committee on Transportation and Infrastructure 
met in open session and ordered the bill reported, as amended, 
favorably to the House by a recorded vote of 32 to 25 with a 
quorum present.
    During consideration of the bill, the Committee dispensed 
with amendments as follows:
    The following amendments were approved by voice vote:
          An amendment offered by Representative Barletta 
        designated 015;
          An amendment offered by Representative Davis 
        designated 026;
          An amendment offered by Representative Mitchell 
        designated 014;
          An amendment offered by Representative Comstock 
        designated 018;
          An amendment offered by Representative Garamendi 
        designated 019;
          An amendment offered by Representative Carson 
        designated 013;
          Amendments considered en bloc and consisting of:
                  An amendment by Representative Brownley 
                designated 020;
                  An amendment by Representative Bustos 
                designated 020; Amendments by Representative 
                Huffman designated 055 and 057;
                  An amendment by Representative Johnson of 
                Georgia designated 033;
                  An amendment by Representative Lawrence 
                designated 024;
                  An amendment by Representative Lowenthal 
                designated 019;
                  An amendment by Delegate Norton designated 
                034;
                  An amendment by Representative Payne 
                designated 020;
                  An amendment by Representative Barletta 
                designated 016;
                  An amendment by Representative Comstock 
                designated 017;
                  An amendment by Representative Rodney Davis 
                of Illinois designated 025;
                  An amendment by Representative Lewis 
                designated 009;
                  An amendment by Representative Woodall 
                designated 003;
                  An amendment by Representative Sanford 
                designated 032;
                  An amendment by Representative Larsen 
                designated 023;
                  An amendment by Representative Young 
                designated 070;
                  An amendment by Representative Mast 
                designated 017;
                  An amendment by Representative Rokita 
                designated 023;
                  An amendment by Representative LoBiondo 
                designated 020;
                  An amendment by Representative Bustos 
                designated 021; and An amendment by 
                Representative Brownley designated 019;
          An amendment offered by Representative Perry 
        designated 050;
          An amendment offered by Delegate Norton designated 
        033;
          An amendment offered by Representative Lipinski 
        designated 027;
          Amendments considered en bloc and consisting of:
                  An amendment by Representative Lipinski 
                designated 043;
                  An amendment by Representative Bost 
                designated 001, as modified;
                  An amendment by Representative Rouzer 
                designated as 001;
                  An amendment by Representative Lipinski 
                designated 034;
                  An amendment by Representative Barletta 
                designated 017;
                  An amendment by Representative Garamendi 
                designated 026;
                  An amendment by Representative Cohen 
                designated 045;
                  An amendment by Representative Nolan 
                designated 037, as modified;
                  An amendment by Representative Nolan 
                designated 041, as modified;
                  An amendment by Representative Wilson 
                designated 027, as modified; and An amendment 
                by Representative DeSaulnier designated 023, as 
                modified.
    The following amendment was defeated by voice vote:
          An amendment offered by Representative Cohen 
        designated 043;
    The following amendments were approved by recorded vote:
          An amendment offered by Delegate Norton designated 
        033;
          An amendment offered by Representative Lipinski 
        designated 027;
    The following amendments were defeated by recorded vote:
          An amendment offered by Representative DeFazio 
        designated 045;
          An amendment offered by Delegate Norton designated 
        031;
          An amendment offered by Representative Perry 
        designated 051;
          An amendment offered by Representative Nadler 
        designated 022;
          An amendment offered by Representative Eddie Bernice 
        Johnson of Texas designated 016;
          An amendment offered by Representative Larsen 
        designated 021;
          An amendment offered by Representative Lipinski 
        designated 041;
          An amendment offered by Representative Nolan 
        designated 042;
          An amendment offered by Representative Titus 
        designated 013;
          An amendment offered by Representative Huffman 
        designated 056;
          An amendment offered by Representative DeFazio 
        designated 053;
          An amendment offered by Representative Lipinski 
        designated 039;
          An amendment offered by Representative Lowenthal 
        designated 018;
          An amendment offered by Representative Titus 
        designated 011;
          An amendment offered by Representative DeFazio 
        designated 051; and
          An amendment offered by Representative Titus 
        designated 012.
    The following amendments were offered and withdrawn:
          An amendment offered by Representative Rokita 
        designated 020;
          An amendment offered by Representative Rokita 
        designated 021;
          An amendment offered by Representative Rokita 
        designated 022;
          An amendment offered by Representative Rokita 
        designated 024;
          An amendment offered by Representative Capuano 
        designated 029;
          An amendment offered by Representative Lewis 
        designated 010;
          An amendment offered by Representative Johnson of 
        Georgia designated 034;
          An amendment offered by Representative Lowenthal 
        designated 017;
          An amendment offered by Representative Eddie Bernice 
        Johnson of Texas designated 013;
          An amendment offered by Representative Johnson of 
        Georgia designated 035;
          An amendment offered by Representative Johnson of 
        Texas designated 015;
          An amendment offered by Representative Cohen 
        designated 042;
          An amendment offered by Representative Garamendi 
        designated 021;
          An amendment offered by Representative Lipinski 
        designated 038;
          An amendment offered by Representative Nolan 
        designated 044;
          An amendment offered by Representative Lipinski 
        designated 042;
          An amendment offered by Representative Lipinski 
        designated 044;
          An amendment offered by Representative Lipinski 
        designated 037;
          An amendment offered by Representative Maloney 
        designated 029;
          An amendment offered by Representative Graves 
        designated 015; and An amendment offered by 
        Representative Sanford 28 designated 028.

                            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. During Committee consideration of H.R. 2997, 
record votes were taken on the following amendments and final 
passage:
          An amendment offered by Representative DeFazio 
        designated 045;
          An amendment offered by Delegate Norton designated 
        031;
          An amendment offered by Representative Perry 
        designated 051;
          An amendment offered by Representative Nadler 
        designated 022;
          An amendment offered by Representative Eddie Bernice 
        Johnson of Texas designated 016;
          An amendment offered by Representative Larsen 
        designated 021;
          An amendment offered by Representative Lipinski 
        designated 041;
          An amendment offered by Representative Nolan 
        designated 042;
          An amendment offered by Representative Titus 
        designated 013;
          An amendment offered by Representative Huffman 
        designated 056;
          An amendment offered by Representative DeFazio 
        designated 053;
          An amendment offered by Delegate Norton designated 
        033;
          An amendment offered by Representative Lipinski 
        designated 039;
          An amendment offered by Representative Lowenthal 
        designated 018;
          An amendment offered by Representative Titus 
        designated 011;
          An amendment offered by Representative DeFazio 
        designated 051;
          An amendment offered by Representative Titus 
        designated 012;
          An amendment offered by Representative Lipinski 
        designated 027; and Vote ordering H.R. 2997, as 
        amended, reported favorably.
    The Committee disposed of these votes as follows:
    
    
                      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 this report.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII 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. 2997, as amended, 
from the Director of the Congressional Budget Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 11, 2017.
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. 2997, the 21st 
Century Aviation Innovation, Reform, and Reauthorization Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                              Keith Hall, Director.
    Enclosure.

H.R. 2997--21st Century Aviation Innovation, Reform, and 
        Reauthorization Act

    Summary: H.R. 2997 would establish a federally chartered, 
not-for-profit corporation (known as the American Air 
Navigation Services (AANS) Corporation) to assume 
responsibility for operating the U.S. air traffic control 
system, a function currently performed by the Federal Aviation 
Administration (FAA). The proposed corporation would be 
governed by a 13-member board of directors composed of 
individuals representing certain aviation stakeholder groups. 
To finance the costs of providing air traffic services, the 
bill would authorize the corporation to charge fees to users of 
such services and to issue debt.
    The Secretary of Transportation would manage and oversee 
the transition of operational control over air traffic services 
to the proposed corporation, which would occur on October 1, 
2020. Until that time, the bill would authorize appropriations 
for the FAA to continue to operate, maintain, and modernize the 
air traffic control system and carry out the agency's other 
traditional responsibilities related to civil aviation. After 
the proposed transition of all air traffic control-related 
personnel and programs to the AANS Corporation, the bill would 
authorize additional appropriations for FAA and the Department 
of Transportation (DOT) to continue to meet traditional 
aviation-related responsibilities, such as performing certain 
regulatory and safety-related activities, making grants to 
airports to support capital projects, and subsidizing air 
service to certain rural communities.
    Although the proposed corporation would be independent and 
autonomous, in CBO's view it would effectively act as an agent 
of the federal government in carrying out a regulatory 
function. Hence, in keeping with guidance specified by the 1967 
President's Commission on Budget Concepts, the proposed 
corporation's cash flows should be recorded in the federal 
budget. More specifically, fees charged by the proposed 
corporation should be recorded as federal revenues, and its 
expenditures should be classified as federal direct spending.
    On that basis, CBO estimates that enacting H.R. 2997 would:
           Increase net direct spending by $90.7 
        billion over the 2018-2027 period;
           Increase net revenues by $70.0 billion over 
        the 2018-2027 period;
           Increase net deficits stemming from revenues 
        and direct spending by about $20.7 billion over the 
        2018-2027 period; and
           Result in discretionary outlays totaling 
        $52.3 billion over the 2018-2027 period, subject to the 
        appropriation of authorized amounts.
    Pay-as-you-go procedures apply because enacting the 
legislation would affect direct spending and revenues. CBO 
estimates that enacting H.R. 2997 would increase net direct 
spending and on-budget deficits by more than $5 billion in one 
or more of the four consecutive 10-year periods beginning in 
2028.
    The estimated changes in direct spending and revenues under 
H.R. 2997 reflect CBO's assessment of the budgetary effects of 
enacting H.R. 2997 as a stand-alone measure. Ultimately, 
however, the net budgetary impact of activities related to air 
traffic control under H.R. 2997 would depend on the details of 
additional legislation that lies beyond the scope of this cost 
estimate. H.R. 2997 does not address other important aspects of 
federal activities related to aviation--in particular, 
provisions of current law that govern aviation-related excise 
taxes that cover most of the FAA's costs related to air traffic 
services and other programs. Similarly, although H.R. 2997 
authorizes a marked reduction in future appropriations for the 
FAA that comport with the envisioned transfer of operational 
control over the air traffic control system to the AANS 
Corporation, whether subsequent reductions in future 
discretionary funding for the agency occur would depend on 
appropriations enacted by future Congresses. As a result, the 
ultimate net budgetary impact of corporatizing air traffic 
control under H.R. 2997 could differ considerably from the 
estimates presented in this analysis, but CBO cannot provide an 
analysis of such potential impacts because they would depend on 
the details of future legislation (see the discussion below 
under the heading ``Additional Information'').
    H.R. 2997 would impose intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
on operators of air ambulances. The bill also would preempt 
state authority over air traffic control services. Based on 
information from the FAA, public airport operators, and state 
aviation agencies, CBO estimates that the cost of the mandates 
on public entities would fall below the annual threshold 
established in UMRA for intergovernmental mandates ($78 million 
in 2017, adjusted annually for inflation). The bill would 
impose additional mandates on private entities including users 
of air traffic services, air carriers, manufacturers of 
aircraft, and ticket agents. CBO estimates that the aggregate 
cost of mandates on private entities would well exceed the 
annual threshold established in UMRA for private-sector 
mandates ($156 million in 2017, adjusted annually for 
inflation).
    Estimated Cost to the Federal Government: The estimated 
budgetary effect of H.R. 2997 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in billions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2017   2018   2019   2020   2021   2022   2023   2024   2025   2026   2027  2017-2022  2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              INCREASES IN DIRECT SPENDING
 
Estimated Budget Authority...........................    0.0    0.2    0.3    0.4   13.1   13.6   14.0   14.4   14.9   15.3   15.7      27.6      102.0
Estimated Outlays....................................    0.0    0.0    0.0      *    9.3   11.6   12.7   13.6   14.1   14.5   15.0      20.8       90.7
 
                                                                  INCREASES IN REVENUES
 
Estimated Revenues...................................    0.0    0.0    0.0    0.0    9.0    9.3    9.6   10.0   10.3   10.7   11.1      18.3       70.0
 
                                        NET INCREASE IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
 
Impact on Deficit....................................    0.0    0.0    0.0      *    0.3    2.3    3.1    3.6    3.8    3.8    3.9       2.6       20.7
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level........................    0.0   13.2   13.5   13.8    2.5    2.5    2.6    0.0    0.0    0.0    0.0      45.6       48.2
Estimated Outlays....................................    0.0   10.5   12.4   13.4    5.0    4.0    3.6    1.2    0.9    0.7    0.7      45.2       52.3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:Components may not sum to totals due to rounding. * = less than $50 million.

Background

    The FAA is responsible for most federal activities related 
to civil aviation under current law. The agency receives 
funding for most of its programs and activities--operations; 
maintaining air navigation facilities and equipment; and 
research, engineering, and development--in annual appropriation 
acts. The bulk of those funds are used to operate and maintain 
the air traffic control system. In addition, the FAA receives 
funding for the Airport Improvement Program (AIP), which makes 
grants to public-use airports for projects to enhance safety 
and increase their capacity; that funding is provided in 
authorization acts as contract authority (a mandatory form of 
budget authority). Finally, DOT receives annual appropriations 
to make payments to air carriers to subsidize their costs to 
provide service to certain small communities.
    Historically, the funds for aviation programs come from the 
general fund of the Treasury and the Airport and Airway Trust 
Fund. That trust fund is an accounting mechanism in the federal 
budget that records receipts from certain taxes paid by users 
of the air transportation system--primarily excise taxes on 
commercial airline tickets--and spending to cover a portion of 
the FAA's programs and DOT's payments to air carriers. Annual 
spending from the fund is not automatically triggered by the 
collection of tax revenues or transfers of interest earnings 
but is controlled by annual appropriation acts.
    In 2017, CBO estimates, revenues credited to the Airport 
and Airway Trust Fund will total $15.1 billion, slightly less 
than the $15.7 billion in new funding provided from the fund 
for FAA programs and DOT's payments to air carriers. The FAA 
also received $1 billion in appropriations from the general 
fund for 2017, bringing total discretionary funding (including 
appropriations and obligation limitations on AIP contract 
authority) to $16.6 billion. That amount includes:
           $10.7 billion for the full operating and 
        capital costs of providing air traffic control services 
        (including ancillary support services);
           $3.35 billion for AIP grants to airports;
           $2.4 billion for other FAA activities, 
        particularly those related to regulating the safety of 
        civil aviation; and
           $150 million for DOT to make payments to air 
        carriers that provide service to certain rural 
        communities through the Essential Air Service program.
    If discretionary resources for FAA and DOT aviation 
activities (including obligation limitations) were assumed to 
remain at the 2017 level adjusted for inflation, CBO projects 
that discretionary funding would grow to $20.4 billion in 2027. 
CBO also estimates that, if aviation-related excise taxes 
credited to the Airport and Airway Trust Fund are extended, 
they will grow at roughly the same rate as the economy and 
total $21.3 billion in 2027.\1\
---------------------------------------------------------------------------
    \1\Under current law, most aviation-related excise taxes that 
provide funding for federal aviation programs are scheduled to expire 
after September 30, 2017; however, under rules governing CBO's baseline 
projections, revenues from excise taxes that are credited to trust 
funds are assumed to continue in effect beyond their scheduled 
expiration date.
---------------------------------------------------------------------------

Major provisions

    H.R. 2997 would establish the AANS Corporation, a federally 
chartered, not-for-profit corporation to assume responsibility 
for operating the U.S. air traffic control system. A 13-member 
board of directors (including a board-appointed chief executive 
officer) would govern the proposed corporation. The Secretary 
of Transportation would appoint two directors; eight others 
would be nominated by panels of individuals representing 
certain aviation stakeholders.\2\ Those 10 board members would 
select two additional ``at large'' members.
---------------------------------------------------------------------------
    \2\The eight nominating panels established under S. 2997 would 
represent passenger, cargo, and regional air carriers; noncommercial 
owners and recreational operators of general aviation; business 
aviation (including users of general aviation aircraft exclusively to 
further business interests, aviation-related businesses, and aerospace 
manufacturers of aircraft and equipment used in general aviation); air 
traffic controllers; airports; and commercial pilots.
---------------------------------------------------------------------------
    Under H.R. 2997, the corporation would be the only entity 
authorized to provide air traffic services within U.S. airspace 
other than the Department of Defense and certain other entities 
with existing responsibilities. The corporation also would be 
responsible for maintaining and modernizing the infrastructure 
and equipment associated with the air traffic control system. 
To cover the costs of operating and managing that system, the 
bill would authorize the corporation to charge fees to users of 
air traffic control services, require users to pay such fees, 
and specify that the corporation could enforce that requirement 
in U.S. courts. In addition to funding from user fees, the 
corporation would be authorized to issue debt to finance its 
costs. The bill would prohibit the corporation from issuing or 
selling equity shares in the corporation.
    The Secretary of Transportation would manage and oversee 
the transition of operational control over air traffic services 
to the proposed corporation, which would occur on October 1, 
2020. The bill outlines procedures for identifying the federal 
personnel to be transferred to the corporation and specifies 
that certain provisions of laws related to labor-management 
relations that currently apply to the FAA and its labor 
organizations would continue to apply to all employees of the 
new corporation (including individuals hired after the date of 
transfer). Transferred employees would have the option to 
retain their existing federal health and retirement benefits or 
could choose to participate in benefit plans offered by the new 
corporation.
    The bill also would convey to the corporation, for no 
consideration, any real and personal property (including air 
navigation facilities), and related licenses, patents, software 
rights, and other items deemed necessary for providing air 
traffic services. The conveyance would include access to 
systems using the dedicated portion of the electromagnetic 
spectrum used by the FAA to provide air traffic services and 
data from such systems. Under the bill, ownership of real 
property at FAA's technical facilities would revert to the 
federal government if the corporation deemed such property to 
be no longer needed to provide air traffic services and the 
Secretary of Transportation determined that a reversion was 
necessary to protect the national interest. The bill would 
authorize the corporation to sell other real property (except 
for certain property located in noncontiguous states) and use 
the proceeds to make capital investments related to air traffic 
control infrastructure.
    Until fiscal year 2021, when the transfer would occur, the 
FAA would continue to operate, maintain, and modernize the air 
traffic control system and carry out the agency's other primary 
responsibilities related to regulating the safety of civil 
aviation and providing grants to airports to support capital 
projects. Starting in 2021, the corporation would assume 
responsibility for air traffic control. The FAA and DOT would 
continue to carry out certain activities related to regulating 
the safety of civil aviation (including air navigation services 
provided by the corporation), providing AIP grants to airports, 
and making payments to subsidize air service to rural 
communities.

Budgetary treatment of the AANS Corporation

    Although the proposed corporation would be independent and 
autonomous, in CBO's view it would effectively act as an agent 
of the federal government in carrying out a regulatory 
function. In particular:
           The AANS Corporation would be the only 
        entity authorized to provide air traffic services 
        within U.S. airspace other than the Department of 
        Defense and certain other entities with existing 
        responsibilities.
           The bill would authorize the corporation to 
        charge fees to users of air traffic control services, 
        require users to pay such fees, and specify that the 
        corporation could enforce that requirement in U.S. 
        courts.
    Hence, in keeping with guidance specified by the 1967 
President's Commission on Budget Concepts, the proposed 
corporation's cash flows should be recorded in the federal 
budget. Although the report issued by that commission has no 
legal status, it remains the primary authoritative statement on 
the scope of the federal budget. The commission recommended 
that, ``the budget should, as a general rule, be comprehensive 
of the full range of federal activities. Borderline agencies 
and transactions should be included . . . unless there are 
exceptionally persuasive reasons for exclusion.''\3\
---------------------------------------------------------------------------
    \3\President's Commission on Budget Concepts, Report of the 
President's Commission on Budget Concepts (October 1967), p.25.
---------------------------------------------------------------------------
    CBO has adhered to that principle since the Congressional 
budget process was established.\4\ For example, since the 1990s 
CBO and the Office of Management and Budget have included 
amounts collected and spent by the Universal Service Fund each 
year in the federal budget even though the company that manages 
the fund is not part of the federal government and the charges 
that telecommunications companies are required to pay do not 
flow through the U.S. Treasury.
---------------------------------------------------------------------------
    \4\See Congressional Budget Office, How CBO Determines Whether to 
Classify an Activity as Governmental When Estimating Its Budgetary 
Effects (June 2017), https://www.cbo.gov/publication/52803.
---------------------------------------------------------------------------
    More specifically, the user fees that would be assessed by 
the AANS Corporation should be classified as federal revenues, 
largely because of their compulsory nature. In CBO's view, 
subsequent spending of such fees, as well as any spending 
financed by debt issued by the corporation (which would be 
backed by the entity's authority to set fees at levels 
necessary to recover its costs and to compel users to pay such 
fees), should be classified as federal direct spending because 
that spending would not be contingent on any further 
legislation.
    Basis of Estimate: H.R. 2997 would effectively reclassify, 
from discretionary to mandatory, federal spending related to 
air traffic control. Broadly speaking, CBO expects that the 
amount of spending for air traffic control under H.R. 2997 
would be similar to the amount of spending for such activities 
reflected in CBO's baseline projections. In that sense, 
increases in direct spending for the proposed AANS Corporation 
would reduce the need for future appropriations to the FAA. 
However, in CBO's cost estimates for proposed legislation, 
changes in authorized spending subject to appropriation are not 
estimated relative to CBO's baseline projections; rather, we 
report the differences between amounts authorized to be 
appropriated under proposed legislation and authorization 
levels specified for future years under current law. Under 
current law, no authorizations for federal aviation programs 
are in place beyond 2017.
    For this estimate CBO assumes that H.R. 2997 will be 
enacted early in fiscal year 2018 and that appropriations will 
be provided as specified by the bill. Estimates of outlays are 
based on historical spending patterns for major activities 
carried out by the FAA. We also assume that the proposed 
transfer of operational control over air traffic control 
services would occur on the date specified in the legislation, 
that the AANS Corporation would begin to collect and spend user 
fees in fiscal year 2021, and that it would continue to 
administer spending of balances previously appropriated to the 
FAA for activities related to air traffic control.
    Over the next 10 years, CBO estimates that enacting H.R. 
2997 would increase direct spending by $90.7 billion and 
increase revenues by $70.0 billion. Additionally, discretionary 
spending to implement the bill would total $52.3 billion, 
subject to appropriation of the authorized amounts, CBO 
estimates (see Table 2).

                                            TABLE 2--EFFECTS ON DIRECT SPENDING AND REVENUES UNDER H.R. 2997
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in billions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              INCREASES IN DIRECT SPENDING
 
Operations of the AANS Corporation
    Estimated Budget Authority....................     0.0     0.0     0.0    12.6    13.0    13.4    13.8    14.2    14.6    15.1      25.6       96.7
    Estimated Outlays.............................     0.0     0.0     0.0     9.3    11.6    12.7    13.6    14.1    14.5    15.0      20.8       90.7
Civil Service Retirement and Health Benefits
    Estimated Budget Authority....................     0.0     0.0       *       *       *       *       *       *       *       *         *          *
    Estimated Outlays.............................     0.0     0.0       *       *       *       *       *       *       *       *         *          *
Airport Improvement Program
    Estimated Budget Authority....................     0.2     0.3     0.4     0.5     0.6     0.6     0.6     0.6     0.6     0.6       2.0        5.2
    Estimated Outlays.............................     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0       0.0        0.0
    Total Changes
    Estimated Budget Authority....................     0.2     0.3     0.4    13.1    13.6    14.0    14.4    14.9    15.3    15.7      27.6      102.0
    Estimated Outlays.............................     0.0     0.0       *     9.3    11.6    12.7    13.6    14.1    14.5    15.0      20.8       90.7
 
                                                         INCREASES AND DECREASES (-) IN REVENUES
 
Gross AANS Corporation Fees for Air Traffic            0.0     0.0     0.0    12.2    12.6    13.0    13.5    14.0    14.5    15.0      24.7       94.6
 Services.........................................
Reduced Revenues from Payroll and Income Taxes....     0.0     0.0     0.0    -3.2    -3.3    -3.4    -3.5    -3.6    -3.8    -3.9      -6.4      -24.6
    Net Changes in Revenues.......................     0.0     0.0     0.0     9.0     9.3     9.6    10.0    10.3    10.7    11.1      18.3       70.0
                                                            NET INCREASE IN THE DEFICIT FROM
                                                         CHANGES IN DIRECT SPENDING AND REVENUES
 
Impact on Deficit.................................     0.0     0.0       *     0.3     2.3     3.1     3.6     3.8     3.8     3.9       2.6       20.7
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: * = between -$50 million and $50 million; Components may not sum to totals due to rounding.
aBudget authority for the Airport Improvement Program is provided as contract authority, a mandatory form of budget authority; however outlays from that
  contract authority are subject to limitations on obligations specified in annual appropriation acts and are therefore considered discretionary.

Direct spending

    Nearly all of the estimated increase in direct spending 
under H.R. 2997 represents spending by the proposed 
corporation. In addition, CBO estimates that transferring FAA 
employees to the AANS Corporation would affect federal spending 
for health and retirement benefits for some people. In 
contrast, CBO expects that conveying property related to air 
traffic control to the proposed corporation and authorizing the 
corporation to sell such property and spend the proceeds would 
have no significant net effect on the federal budget. Finally, 
H.R. 2997 would increase mandatory contract authority for the 
Airport Improvement Program, but because FAA's authority to 
spend such contract authority would be subject to obligation 
limitations specified in annual appropriation acts, any 
resulting outlays would be considered discretionary.
    Operations of the AANS Corporation. Under H.R. 2997 the 
corporation would have authority to levy fees on users of air 
traffic services and to use those amounts to cover all of the 
entity's financial requirements, including debt service costs 
stemming from the corporation's authority to issue bonds. CBO 
estimates that resulting direct spending would total $90.7 
billion over the 2021-2027 period.
    For this estimate, CBO assumes that the corporation's 
annual funding requirements would largely remain in line with 
current estimates of the FAA's full operating and capital costs 
related to air traffic control. According to the FAA, funding 
related to air traffic control totals nearly $10.7 billion in 
2017. Assuming that spending for personnel, facilities and 
equipment, and other expenses grow at rates of anticipated 
growth for wages and infrastructure-related investments, CBO 
estimates that the corporation would obligate roughly $12.1 
billion in 2021 to assume control of those activities.
    In addition, CBO expects that the corporation would 
increase capital spending relative to that base amount, 
particularly to make additional investments in facilities, 
equipment, and technologies related to modernizing the air 
traffic control system, commonly referred to as NextGen. Over 
the past several years, a wide range of studies and reports 
prepared by the DOT's Inspector General, the Government 
Accountability Office (GAO), and aviation stakeholders 
generally characterize the FAA's existing efforts to implement 
projects related to NextGen as behind schedule, particularly 
compared to technologies used by providers of air navigation 
services in other countries.\5\ In addition, representatives of 
organizations that would be represented on the proposed 
corporation's board of directors have generally called for a 
reprioritization of modernization activities to accelerate the 
adoption of technologies that would increase the efficiency of 
air traffic operations.
---------------------------------------------------------------------------
    \5\See for example: Government Accountability Office, Air Traffic 
Control Modernization: Management Challenges Associated with Program 
Costs and Schedules Could Hinder NextGen Implementation, February 2012, 
GAO-12-223, http://www.gao.gov/assets/590/588627.pdf; and Office of 
Inspector General, Department of Transportation, Audit Report: FAA 
Reforms Have Not Achieved Expected Cost, Efficiency, and Modernization 
Outcomes (January 15, 2016), AV-2016-015, https://www.oig.dot.gov/
sites/default/files/FAA%20Organizational%20Structure-
Final%20Report%5E1-15-16.pdf
---------------------------------------------------------------------------
    According to the FAA, under current law, the agency plans 
to spend roughly $1 billion annually over the next several 
years for modernization activities. Under H.R. 2997, CBO 
expects that the corporation would exercise its authority to 
issue bonds to raise funds to make additional investments. The 
timing and magnitude of such investments is highly uncertain 
and would depend on priorities identified by the corporation. 
For this estimate, CBO assumes that additional capital spending 
related to modernization would average between $500 million and 
$600 million annually, bringing the total amount of 
modernization-related spending to about $1.5 billion per year 
over the 2021-2027 period.\6\
---------------------------------------------------------------------------
    \6\The authority to borrow directly from the public and then 
obligate amounts so borrowed is considered borrowing authority, a 
mandatory form of budget authority. In the case of the ATC Corporation, 
proceeds from the sale of bonds would be considered a means of 
financing and not reflected in budget totals. Rather, the budget would 
record obligations incurred against amounts borrowed at the time when 
such obligations occur, and outlays would reflect the timing and pace 
of capital acquisitions and related debt service costs.
---------------------------------------------------------------------------
    All told, CBO estimates that budget authority recorded for 
the corporation would total $12.6 billion in 2021 and gradually 
increase to $15.1 billion by 2027, for a total of nearly $96.7 
billion over the 2021-2027 period. That amount includes $4 
billion in borrowing authority stemming from the corporation's 
authority to issue bonds. CBO expects that most of the funding 
would be derived from fees that the corporation would charge 
for air traffic services, as discussed below under the heading 
``Revenues''. (In addition, CBO assumes that in the initial 
years following the transition, the corporation would oversee 
residual spending of amounts previously appropriated to the FAA 
for activities related to air traffic control.)
    In total, assuming that outlays of the AANS Corporation 
would follow historical spending patterns for the FAA, CBO 
estimates that resulting expenditures would total $91 billion 
over the 2021-2027 period. That amount includes $56 billion in 
personnel costs, $19 billion for capital spending related to 
air navigation facilities and equipment (including $3.5 billion 
in additional investments to modernize such facilities and 
equipment), and $16 billion in other costs and ongoing expenses 
related to providing air traffic services. (Those amounts do 
not include residual spending of appropriations provided to the 
FAA before the proposed transition; see the discussion under 
the heading ``Spending Subject to Appropriation.'')
    Changes in Civil Service Retirement and Health Benefits. 
For purposes of this estimate, CBO assumes that the AANS 
Corporation would provide salaries and benefits that are 
comparable to those offered to FAA employees under current law. 
However, the proposed transition could cause some retirement-
eligible employees to retire earlier than they would under 
current law. CBO estimates that about 5 percent of retirement-
eligible employees in 2020 and 2021 would retire an average of 
one year earlier than under current law. Accelerated retirement 
for that group of about 500 employees (approximately one 
quarter of whom are estimated to be air traffic controllers) 
would, on net, increase mandatory spending for retirement 
annuities and Federal Employees Health Benefit premiums for the 
period of time during which those early retirees would remain 
employees under current law. Over the long run, however, 
annuity payments to such individuals--which are based in part 
on years of service and salary levels--would be slightly lower 
than they otherwise would have been if those individuals had 
remained in service and continued to earn pay increases. CBO 
projects that net increases in mandatory spending would total 
about $23 million over the 2020-2027 period.
    Budgetary Effects of Conveying Property and Access to 
Spectrum-Related Data and Systems to the AANS Corporation. H.R. 
2997 would specify procedures for the Secretary of 
Transportation to convey to the AANS Corporation, for no 
consideration, any real and personal property (including air 
navigation facilities) deemed necessary for providing air 
traffic services. Once the property was conveyed, the 
corporation could sell it and use the proceeds to make capital 
investments related to air traffic control infrastructure.
    The proposed conveyances would affect the budget only to 
the extent that they would affect the timing or magnitude of 
cash flows that the affected assets would otherwise generate 
under current law. The FAA already has broad authority to sell 
such property and spend the proceeds; because any increase in 
receipts from property sales is offset by a corresponding 
increase in spending soon thereafter, the agency's use of such 
authority ultimately has no significant net effect on federal 
spending. Similarly, although the timing and magnitude of 
receipts and spending associated with transactions pursued by 
the corporation could differ from those that might occur under 
current law, CBO estimates that transactions under H.R. 2997 
would ultimately have no net effect on the federal budget.
    H.R. 2997 would retain the existing legal framework 
governing the use of the electromagnetic spectrum. As a result, 
the spectrum currently used by the FAA would continue to be 
managed as federal frequencies but would be used by the 
corporation. For this estimate, CBO assumes that requiring the 
Secretary to provide the corporation access to spectrum-related 
data and systems would have no significant effect on the use or 
disposition of FAA's spectrum assignments relative to current 
law. As a result, CBO estimates that the bill would have a 
negligible effect on direct spending for spectrum relocation or 
research activities and would not affect the timing or amount 
of offsetting receipts from future auctions of commercial 
licenses.
    Airport Improvement Program. Through the AIP, the FAA 
provides grants to public-use airports for projects to enhance 
safety and increase airports' capacity for passengers and 
aircraft. Under H.R. 2997, the FAA would continue to operate 
this program after transferring operational control over air 
traffic control to the AANS Corporation.
    H.R. 2997 would provide contract authority for the AIP 
through fiscal year 2023. The FAA Extension, Safety and 
Security Act of 2016 provided the FAA with $3.35 billion in 
contract authority through September 30, 2017. Pursuant to 
provisions of law that govern CBO's baseline projections, 
funding for certain expiring programs--such as contract 
authority for AIP--is assumed to continue beyond the scheduled 
expiration date for budget projection purposes. Consistent with 
that practice, CBO's baseline incorporates the assumption that 
AIP contract authority over the 2018-2027 period will remain at 
the 2017 level of $3.35 billion per year.
    Relative to current law, H.R. 2997 would provide $22.7 
billion in new contract authority. That amount includes $3.6 
billion in 2018 and amounts for subsequent years that would 
gradually increase to just under $4 billion by 2023. Consistent 
with CBO's methodology for projecting contract authority under 
proposed legislation, we assume that contract authority for AIP 
would continue to be provided after 2023 and would remain at 
about $4 billion annually.
    Under that assumption, CBO estimates that contract 
authority under H.R. 2997 would exceed the levels of contract 
authority already projected in the CBO baseline by $5.2 billion 
over the 2018-2027 period. (Because spending from contract 
authority is controlled by obligation limitations specified in 
annual appropriation acts, outlays of the AIP are considered 
discretionary.)

Revenues

    Upon assuming operational control over air traffic 
services, H.R. 2997 would authorize the AANS Corporation to 
charge fees to users of such services, require users to pay 
such fees, and allow the corporation to enforce that 
requirement in U.S. courts. The bill would specify certain 
requirements that the corporation must follow in setting such 
fees. In particular, fees must be consistent with certain 
policies set forth by the International Civil Aviation 
Organization, which generally relate the reasonableness of fees 
levied by providers of air navigation services to the cost of 
providing such services. Under H.R. 2997, fees could not be 
imposed for services provided for operations that involve 
aircraft owned or operated by the U.S. military or operations 
of aircraft that are considered public aircraft. The bill also 
would prohibit the corporation from charging fees for services 
to support operations of civil aircraft related to air tours; 
non-scheduled service; or recreational, private, agricultural, 
and certain industrial activities.
    The bill would require the AANS Corporation to publish the 
initial schedule of fees at least 180 days before the date when 
it would assume operational control over air traffic services 
and outline procedures through which users of such services 
could dispute the reasonableness of such fees. Under the bill, 
the Secretary of Transportation would have a role in overseeing 
any such disputes.
    For this estimate, CBO assumes that the corporation would 
begin collecting fees on October 1, 2020, and that such fees 
would be set as necessary to cover its annual funding 
requirements (including debt service on any bonds issued). CBO 
estimates those amounts would initially total about $12.2 
billion in 2021 and grow to $15.0 billion by 2027. We estimate 
that revenues from fees would be roughly equal to those 
amounts.\7\
---------------------------------------------------------------------------
    \7\Estimates of user fees under H.R. 2997 are equivalent to roughly 
70 percent of the total amount of aviation-related revenues included in 
CBO's baseline projections. H.R. 2997 would not extend those taxes 
beyond their scheduled expiration nor would it address whether the fees 
would be collected or terminated once the ATC Corporation assumes 
responsibility for air traffic control. Under current law, most 
aviation-related excise taxes are scheduled to expire after March 31, 
2016; however, pursuant to provisions of law that govern CBO's baseline 
projections, such taxes are assumed to continue beyond their scheduled 
expiration date for budget projection purposes (see Additional 
Information).
---------------------------------------------------------------------------
    Because excise taxes and other indirect business taxes 
(such as assessments by the AANS Corporation) reduce the base 
of income and payroll taxes, higher amounts of those indirect 
business taxes would lead to reductions in revenues from income 
and payroll taxes. As a result, revenues from the fees 
collected by the corporation would be partially offset in the 
federal budget by a loss of income and payroll tax receipts 
equal to about 26 percent of the fees each year. Thus, CBO 
estimates that enacting H.R. 2997 would increase net revenues 
by about $70 billion over the 2021-2027 period.

Spending subject to appropriation

    H.R. 2997 would authorize appropriations totaling $48.2 
billion over the 2018-2023 period for the FAA and related DOT 
activities. Most of that amount--$40.6 billion--would be 
specifically authorized for those agencies to continue to 
operate all functions, including those related to air traffic 
control, through fiscal year 2020. Starting in 2021, the AANS 
Corporation would assume operational control over the air 
traffic control system, and the FAA and other offices within 
the Department of Transportation would continue to perform 
certain regulatory and safety-related functions, provide grants 
to airports to support capital projects, make payments to air 
carriers that provide service to certain rural communities, and 
carry out other administrative requirements. For those 
activities, the bill would authorize appropriations totaling 
$7.6 billion over the 2021-2022 period.
    Assuming appropriation of the specified amounts (as well as 
the enactment of limitations on obligations of contract 
authority for the Airport Improvement Program that are 
consistent with funding levels provided under H.R. 2997), CBO 
estimates that discretionary spending to implement H.R. 2997 
would total $52.3 billion over the 2018-2027 period (see Table 
3).

                                          TABLE 3. CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2997
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in billions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
FAA Operations:
    Authorization Level...........................    10.1    10.3    10.6     2.0     2.0     2.0     0.0     0.0     0.0     0.0      35.0       37.1
    Estimated Outlays.............................     9.0    10.0    10.4     2.9     2.3     2.1     0.2     0.1       *       *      34.6       37.1
Air Navigation Facilities and Equipment:
    Authorization Level...........................     2.9     3.0     3.0     0.2     0.2     0.2     0.0     0.0     0.0     0.0       9.3        9.5
    Estimated Outlays.............................     1.3     2.0     2.5     1.5     0.9     0.6     0.3     0.1       *       *       8.2        9.3
Airport Improvement Programa:
    Authorization Level...........................     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0       0.0        0.0
    Estimated Outlays.............................       *     0.2     0.3     0.4     0.4     0.5     0.6     0.6     0.6     0.6       1.3        4.3
Essential Air Service and Other Activities:
    Estimated Authorization Level.................     0.2     0.2     0.2     0.3     0.3     0.4     0.0     0.0     0.0     0.0       1.3        1.6
    Estimated Outlays.............................     0.1     0.2     0.2     0.3     0.3     0.4     0.1       *     0.0     0.0       1.1        1.6
    Total Changes:
        Estimated Authorization Level.............    13.2    13.5    13.8     2.5     2.5     2.6     0.0     0.0     0.0     0.0      45.6       48.2
        Estimated Outlays.........................    10.5    12.4    13.4     5.0     4.0     3.6     1.2     0.9     0.7     0.7      45.2       52.3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: FAA = Federal Aviation Administration; * = less than $50 million.
a Budget authority for the Airport Improvement Program is provided as contract authority, a mandatory form of budget authority; however, outlays from
  that contract authority are subject to limitations on obligations specified in annual appropriation acts and are therefore considered discretionary.

    FAA Operations. H.R. 2997 would authorize appropriations 
totaling $31.1 billion over the 2018-2020 period for FAA 
operations, primarily for salaries and expenses related to 
operating the air traffic control system. (Funding for FAA 
operations in 2017 totals $9.6 billion.) Starting in 2021, 
responsibility for most activities funded through that account 
would shift to the AANS Corporation, and the FAA would remain 
responsible for a much smaller set of regulatory and safety-
related activities. For those remaining purposes the bill would 
authorize appropriations totaling $6.0 billion over the 2021-
2023 period. Assuming appropriation of the amounts authorized 
over the 2018-2023 period, CBO estimates that resulting outlays 
would total $37.1 billion over the 2018-2027 period.
    Air Navigation Facilities and Equipment. H.R. 2997 would 
authorize appropriations totaling $9.0 billion over the 2018-
2020 period for programs to maintain and modernize 
infrastructure and systems for communication, navigation, and 
surveillance related to air travel. (Funding for facilities and 
equipment totals nearly $2.9 billion in 2017.) Starting in 2021 
the AANS Corporation would assume primary responsibility for 
operating, maintaining, and modernizing such infrastructure and 
equipment. The bill would authorize additional appropriations 
totaling $580 million over the 2021-2023 period for the FAA to 
carry out residual responsibilities related to the safety of 
air navigation facilities and equipment that would not be 
performed by the AANS Corporation. Assuming appropriation of 
the authorized amounts, CBO estimates that resulting outlays 
would total $9.3 billion over the 2018-2027 period (and $243 
million in later years).
    Airport Improvement Program. The proposed transfer of 
control over air traffic control would not affect the AIP, 
which the FAA would continue to administer under H.R. 2997. CBO 
estimates that contract authority for AIP grants to airports 
under H.R. 2997 would exceed the amounts of contract authority 
already assumed in the CBO baseline by $5.2 billion over the 
2018-2027 period. Such grants support planning and development 
of capital projects to enhance the infrastructure and capacity 
of public-use airports.
    Assuming that annual appropriations acts set obligation 
limitations for AIP spending that are equal to the levels of 
contract authority projected under H.R. 2997, CBO estimates 
that discretionary outlays for the program over the 2018-2027 
period would total $4.3 billion more than amounts projected in 
CBO's baseline through 2027 (and $940 million in later years).
    Essential Air Service and Other Activities. H.R. 2997 would 
authorize appropriations totaling $178 million in 2018 and $1.6 
billion over the 2018-2023 period for the Essential Air Service 
program, through which DOT makes payments to air carriers that 
provide service to certain rural communities. (Discretionary 
funding for such payments in 2017 totals $150 million.) The 
bill also would authorize the appropriation of $10 million 
annually over the 2018-2023 period for grants to help small 
communities enhance air service and would require DOT and the 
Government Accountability Office to complete various studies, 
reports, and administrative requirements. Assuming 
appropriation of amounts specified and estimated to be 
necessary for required studies, reports and administrative 
activities, CBO estimates that resulting outlays would total 
$1.6 billion over the next 10 years.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

  CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2997, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE ON JUNE 27, 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         By fiscal year, in millions of dollars--
                                ------------------------------------------------------------------------------------------------------------------------
                                   2017     2018     2019     2020     2021     2022     2023     2024     2025     2026     2027   2017-2022  2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact.        0        0        0        9      296    2,253    3,099    3,585    3,751    3,830    3,898     2,557     20,721
Memorandum:
    Changes in Outlays.........        0        0        0        9    9,276   11,565   12,740   13,565   14,082   14,513   14,952    20,850     90,702
    Changes in Revenues........        0        0        0        0    8,981    9,312    9,641    9,980   10,331   10,683   11,054    18,292     69,980
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long term direct spending and deficits: CBO 
estimates that enacting the legislation would increase net 
direct spending and on-budget deficits by more than $5 billion 
in at least one of the four consecutive 10-year periods 
beginning in 2028. The effects in future years would be a 
continuation of the trends shown for the first decade.
    Additional information: The estimated changes in direct 
spending and revenues under H.R. 2997 reflect CBO's assessment 
of the budgetary impacts of enacting H.R. 2997 as a stand-alone 
measure. Ultimately, however, the net budgetary impact of 
activities related to air traffic control under H.R. 2997 would 
depend on the details of subsequent legislation that lies 
beyond the scope of this cost estimate. CBO cannot predict 
whether such additional legislation will be enacted pursuant to 
H.R. 2997, but expects that the overall net budgetary impact of 
shifting responsibility for air traffic control to the AANS 
Corporation would not necessarily increase future deficits by 
the amounts reflected in this cost estimate if additional 
legislation consistent with H.R. 2997 was enacted.
    Broadly speaking, while CBO estimates that the proposed 
corporation would spend more than the FAA otherwise will under 
current law for capital investments to modernize infrastructure 
and equipment related to the air traffic control system, CBO 
expects that underlying costs related to operating and 
maintaining that system would not change significantly under 
H.R. 2997. As a result, CBO expects that shifting 
responsibility for those costs to the proposed corporation 
would not materially change the magnitude of spending related 
to air traffic control if future appropriations for the FAA's 
retained responsibilities were reduced accordingly to reflect 
the shift--from mandatory to discretionary--of such spending. 
Under H.R. 2997, CBO expects that overall amounts of such 
federal spending would remain more or less the same, with 
incremental increases in spending stemming primarily from the 
AANS Corporation's authority to issue debt to finance 
additional investments related to modernization.
    Similarly, if future tax-related legislation separate from 
H.R. 2997 was enacted to reduce existing aviation-related 
excise taxes by amounts equivalent to new user fees that would 
be charged by the AANS Corporation under H.R. 2997, the 
resulting amount of revenues available to support air traffic 
control (and other aviation activities) would be largely 
unchanged and could continue to cover most, if not all 
aviation-related spending.
    Thus, if such additional legislation were enacted--
consistent with the proposed changes envisioned on H.R. 2997--
to effectively keep both aviation-related spending and revenues 
in line with current levels, CBO expects that resulting net 
increases in future deficits would largely reflect increased 
capital spending by the AANS Corporation to finance investments 
related to modernization, which CBO estimates will total about 
$3.5 billion over the period covered by this estimate. (That 
estimate of modernization spending is uncertain and could be 
higher or lower depending on future investment-related 
decisions of the AANS Corporation.)
    Intergovernmental and private-sector impact: The bill 
contains intergovernmental and private-sector mandates as 
defined in UMRA. CBO estimates that the aggregate cost of the 
mandates on public entities would fall below the annual 
threshold established in UMRA for intergovernmental mandates 
($78 million in 2017, adjusted annually for inflation). 
However, CBO estimates that the aggregate cost of the mandates 
on private entities would well exceed the annual threshold 
established in UMRA for private-sector mandates ($156 million 
in 2017, adjusted annually for inflation).

Mandates that apply to both public and private entities

    The bill would require operators of air ambulances to 
provide contact information on their website and in their 
communications to facilitate those consumers who may want to 
file complaints about service. The bill also would require air 
ambulance operators to disclose charges for air transportation 
services separately on invoices and provide consumer 
protections, if determined to be appropriate by the Secretary 
of Transportation. According to industry sources, there are 
about 300 air medical services in the United States. CBO 
estimates that the cost to comply with the requirements, which 
are mostly administrative, would be small.

Mandates and other effects on public entities

    The bill would preempt state and local authority over air 
traffic control services. Although the preemption would limit 
the application of state and local laws and regulations, CBO 
estimates that the bill would impose no duty on state or local 
governments that would result in additional spending or a loss 
of revenues.
    The bill would benefit public airports by expanding federal 
grant programs and the ability of airports to charge passenger 
fees that support airport improvement projects. Any costs those 
entities incur to meet grant requirements would result from 
complying with conditions of federal assistance.

Mandates that apply to private entities only

    User Fees for Air Traffic Control Services. The bill would 
require users of air traffic services provided by the American 
Air Navigation Services Corporation to pay fees for the use of 
those services. Such users would include air carriers and other 
private entities. CBO estimates that those fees would total 
about $12 billion in 2021 and gradually increase thereafter.
    Other Requirements for Air Carriers. The bill would impose 
several other mandates on air carriers. Specifically, the bill 
would require that air carriers:
           Prepare a fatigue risk management plan for 
        flight attendants, a document describing passengers' 
        rights, and an employee assault prevention and response 
        plan;
           Provide training to flight attendants and 
        other employees and comply with requirements for pilot 
        rest to be developed by an aviation rulemaking 
        committee;
           Provide information on company websites or 
        through other means about countries that may require an 
        airplane to be treated with insecticides;
           Include links to their customer service 
        plans on their websites and provide information about 
        baggage fees in internet fare quotations;
           Provide information about compensation and 
        accommodations in the event of a widespread disruption 
        of their operations;
           Ensure medical kits contain supplies for 
        treating children in emergencies, if determined to be 
        appropriate by the FAA;
           Comply with prohibitions on involuntarily 
        deplaning passengers and requirements for compensating 
        passengers denied boarding; and
           Comply with the bill's prohibitions against 
        in-flight voice communications on mobile devices.
    On the basis of information about existing training 
programs and current industry practices, CBO estimates that the 
cost of most of the other mandates in the above list would be 
small and that none would impose significant additional costs 
on air carriers relative to UMRA's threshold.
    The bill also would require air carriers to meet standards 
for seat dimensions established in a future FAA rulemaking. The 
cost of the mandate would include any loss of income stemming 
from a reduction in the number of seats available for 
passengers, which would depend on minimum dimensions that would 
be set forth in those regulations.

Requirements for other entities

    Manufacturers of Aircraft. The bill would impose a mandate 
on manufacturers by requiring them to install a secondary 
cockpit barrier on aircraft that are manufactured for delivery 
to passenger air carriers in the United States. Such barriers 
would include retractable screens and would have to be 
installed only on new aircraft delivered to passenger air 
carriers in the United States. Based on information from 
industry sources, CBO estimates that the cost of installing 
such barriers would total no more than $15 million annually.
    Ticket Agents. The bill would impose a mandate on ticket 
agents with annual revenues of $100 million or more by 
requiring them to meet minimum customer service standards to be 
established in future regulations. The bill would direct the 
Secretary of Transportation to consider standards for prompt 
refunds, options to hold fares at no cost, disclosures of 
cancellation policies, and notifications of itinerary changes. 
The cost of the mandate would depend on the standards set by 
the Secretary.
    Estimate prepared by: Federal costs and revenues: Megan 
Carroll (FAA, AANS Corporation spending and fees); Lori Housman 
(health benefits); Amber Marcellino (retirement benefits); and 
Kathleen Gramp (spectrum); Impact on state, local, and tribal 
governments: Jon Sperl; Impact on the private sector: Amy Petz.
    Estimate approved by: H. Samuel Papenfuss, 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 goals and objectives of this legislation, as 
amended, are to reauthorize federal aviation programs 
administered by the FAA, including operating and capital 
funding. The legislation, as amended, also seeks to reform and 
modernize the structure of the Nation's ATC system by 
transferring operation of ATC services and related personnel 
and assets from the FAA to an independent, not-for-profit 
corporate entity to provide for more efficient operation and 
development of air traffic services in the United States. The 
legislation, as amended, also reforms and streamlines the FAA's 
safety certification processes and improves various aviation 
safety programs. Finally, H.R. 2997, as amended, addresses 
airline consumer issues and continues the process of 
integrating unmanned aircraft systems (UAS) into the National 
Airspace.

                          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, as amended, 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 clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 2997, as amended, 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(i) of H. Res. 5, 115th Cong. (2017), 
the Committee estimates that enacting H.R. 2997, as amended, 
specifically directs the completion of specific rule makings 
within the meaning of section 551 of title 5, United States 
Code.
    Section 211 of H.R. 2997, as amended, requires the 
Secretary to establish procedures and regulations to ensure 
that all government activities supported by the FAA's provision 
of air traffic services will receive support from the 
Corporation.
    Section 211 of H.R. 2997, as amended, further requires the 
Secretary to issue performance-based regulations and safety 
standards for the operation of air traffic services by the 
Corporation, including the establishment of a safety management 
system. The Secretary must also establish procedures by which 
the Corporation would notify users of proposed charges and fees 
and also how the Secretary would review such proposals.
    Section 211 of H.R. 2997, as amended, also requires the 
Secretary to prescribe regulations establishing the procedures 
for acting upon a written complaint disputing air traffic 
services charges and fees.
    Section 411 of H.R. 2997, as amended, requires the 
Administrator to review and revise current regulations 
regarding first aid kits on Part 121 air carriers to ensure the 
needs of children are met.
    Section 414 of H.R. 2997, as amended, requires the 
Administrator to revise current regulations regarding the 
flight attendant duty period limitations and rest requirements.
    Section 416 of H.R. 2997, as amended, directs the 
Administrator to revise an ongoing rulemaking for the marking 
of covered towers as defined in the section.
    Section 432 of H.R. 2997, as amended, requires the 
Administrator to issue regulations for the certification of 
unmanned aircraft traffic management (UTM) systems as air 
navigation facilities.
    Section 432 of H.R. 2997, as amended, also requires the 
Secretary to issue safety and economic regulations for air 
carriers using small unmanned aircraft systems (UAS) to 
transport property.
    Section 432 of H.R. 2997, as amended, also requires the 
Administrator to establish a procedure for granting 
authorization for certain small unmanned aircraft.
    Section 432 of H.R. 2997, as amended, also requires the 
Administrator to issue regulations to authorize operation of 
small unmanned aircraft weighting 4.4 pounds or less without 
airman or airworthiness certifications.
    Section 502 of H.R. 2997, as amended, requires the 
Secretary to issue regulations to prohibit certain uses of 
mobile devices onboard aircraft.
    Section 505 of H.R. 2997, as amended, requires the 
Secretary to issue final regulations to amend section 41712 of 
title 49, United States Code, by clarifying that it is not an 
unfair or deceptive practice for an air carrier, 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, 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 costs of the 
air transportation are clearly and separately disclosed.
    Section 510 of H.R. 2997, as amended, requires the 
Secretary to issue such a final rule to clarify the levels of 
compensation that may be paid to passengers who are 
involuntarily denied boarding.
    Section 512 of H.R. 2997, as amended, requires the 
Secretary to issue regulations requiring air ambulance 
operators to disclose charges for air transportation services 
from charges for non-air transportation services and other 
consumer protections for users of air ambulance services.
    Section 514 of H.R. 2997, as amended, requires the 
Secretary to approve one-page submissions from air carriers 
that describe compensation or other customer service policies.
    Section 544 of H.R. 2997, as amended, requires the 
Secretary to issue regulations concerning accommodations for 
air travelers with disabilities relating to in-flight 
entertainment, accessible lavatories on single-aisle aircraft, 
and service animals.
    Section 608 requires the Administrator to carry out a 
rulemaking to increase the duration of aircraft registrations 
for noncommercial general aviation aircraft to ten years.
    Section 609 of H.R. 2997, as amended, requires the 
Secretary to promulgate a rulemaking to ensure that United 
States regulations on air transport of lithium cells and 
batteries are consistent with the requirements in the ICAO 
Technical Instructions.
    Section 613 of H.R. 2997, as amended, requires the 
Secretary to conduct a notice and comment rulemaking before DOT 
can implement the policy set forth in the notice of proposed 
policy entitled ``Proposal To Consider the Impact of One Engine 
Inoperative Procedures in Obstruction Evaluation Aeronautical 
Studies'' published by DOT on April 28, 2014.
    Section 618 of H.R. 2997, as amended, directs the 
Administrator to issue a notice of proposed rulemaking based on 
any consensus recommendations from the aviation rulemaking 
committee established in the section on flight and duty times 
for Part 135 pilots.
    Section 633 of H.R. 2997, as amended, requires the 
Secretary to publish a direct final rule on the expansion of 
waiver authority for the operation of UAS beyond visual line of 
sight, over people, or at night for the purposes of 
transporting property.
    Section 636 of H.R. 2997, as amended, directs the Secretary 
to issue a final rule to require large ticket agents to adopt 
minimum customer service standards.
    Section 641 of H.R. 2997, as amended, directs the 
Administrator to issue a rule that establishes minimum 
dimensions for passenger seats on aircraft operated by air 
carriers in interstate air transportation or intrastate air 
transportation, including minimums for seat pitch, width, and 
length, and that are necessary for the safety and health of 
passengers.

                       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 section 211 of H.R. 
2997, as amended, contains a new section 90314, title 49, 
United States Code that clarifies and continues preemption of 
authority over air traffic services. Civil aviation has long 
been exclusively regulated by the federal government. The 
application of myriad and inconsistent state, local, and tribal 
laws to aviation would be detrimental to the safe and efficient 
operation of the United States aviation system.

                      Advisory Committee Statement

    Sections 302, 512, and 609 of this legislation, as amended, 
each establish an advisory committee, as defined by section 2 
of the Federal Advisory Committee Act (5 U.S.C. app.). Pursuant 
to section 5 of the Federal Advisory Committee Act, the 
Committee determines that the functions of these advisory 
committees are not being carried out by existing agencies or 
advisory commissions. The Committee notes that section 302 
specifically terminates an existing advisory committee upon the 
appointment of members to the newly created advisory committee. 
The Committee also determines that the advisory committees have 
a clearly defined purpose, fairly balanced membership, and meet 
all of the other requirements of section 5(b) of the Federal 
Advisory Committee Act.

                  Applicability of Legislative Branch

    The Committee finds section 211 of the bill, as amended 
specifically chapter 911 of title 49, United States Code, as 
added by that sectionu does 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). However, these 
provisions are not made applicable to the legislative branch, 
but rather apply only to the Corporation, a federally 
chartered, private, not-for-profit Corporation created by 
section 211. Applying such provisions to the legislative branch 
would be duplicative of laws and regulations already applicable 
to the legislative branch.

               Section-by-Section Analysis of Legislation


                        Title I--Authorizations


                  SUBTITLE A--FUNDING OF FAA PROGRAMS

Section 101. Airport planning and development and noise compatibility 
        planning and programs

    This section authorizes from the Airport and Airway Trust 
Fund the following amounts for the FAA's Airport Improvement 
Program (AIP) account: $3.597 billion for fiscal year 2018; 
$3.666 billion for fiscal year 2019; $3.746 billion for fiscal 
year 2020; $3.829 billion for fiscal year 2021; $3.912 billion 
for fiscal year 2022; and $3.998 billion for fiscal year 2023. 
In addition, this section extends the obligation authority to 
September 30, 2023.
    The FAA has invested in an innovative and timely program 
known as the Airport Privatization Pilot Program (APPP). Given 
the current and anticipated budgetary environment, there has 
never been a time for greater emphasis on the need for private 
investment to work alongside the federal government to expedite 
and fund projects that are vital to the National Airspace 
System (NAS). The APPP offers such an opportunity. Project 
applications which have been preliminarily accepted will 
leverage considerable private capital, reduce the need for 
traditional federal investment in public-use infrastructure, 
and create new jobs for the Nation. To fulfill the intent of 
the APPP, FAA should expedite final processing of pending 
applications and provide priority funding for projects that are 
associated with the APPP and enable innovative financing of 
infrastructure projects.

Section 102. Facilities and equipment

    This section authorizes from the Airport and Airway Trust 
Fund the following amounts for FAA's Facilities & Equipment 
(F&E;) account: $2.920 billion for fiscal year 2018; $2.984 
billion for fiscal year 2019; and $3.049 billion for fiscal 
year 2020. Starting in fiscal year 2020, the Corporation will 
fund F&E; activities related to ATC services from fees collected 
by the Corporation. Starting in fiscal year 2021, F&E; 
activities, such as those related to safety oversight, that 
will remain with the FAA, will be funded from the General Fund. 
This section also authorizes from the General Fund the 
following for FAA's F&E; account: $189 million for fiscal year 
2021; $193 million for fiscal year 2022; and $198 million for 
fiscal year 2023.

Section 103. FAA operations

    This section authorizes from the General Fund the following 
for FAA's Operations account: $2.059 billion for fiscal year 
2018; $2.126 billion for fiscal year 2019; $2.197 billion for 
fiscal year 2020; $1.957 billion for fiscal year 2021; $2.002 
billion for fiscal year 2022; and $2.047 billion for fiscal 
year 2023. This section additionally authorizes from the 
Airport and Airway Trust Fund the following for FAA's 
Operations account: $8.073 billion for fiscal year 2018; $8.223 
billion for fiscal year 2019; and $8.374 billion for fiscal 
year 2020. Starting in fiscal year 2020, the Corporation will 
fund all Operations activities related to ATC services from 
fees collected by the Corporation.

Section 104. Adjustment to AIP program funding

    This section discontinues a formula required in the FAA 
Modernization and Reform Act of 2012 (Public Law 112-95) that 
created additional contract authority for AIP if the 
appropriated funding levels for the F&E; program were not equal 
to the authorized levels included in the Act.

Section 105. Funding for aviation programs

    This section discontinues the Airport and Airway Trust Fund 
guarantee included in the FAA Modernization and Reform Act of 
2012, which provided a formula to determine the amount to be 
made available from the aviation trust fund each year to fund 
the FAA.

Section 106. Applicability

    This section sets the effective date of subtitle A at 
October 1, 2017.

                 SUBTITLE B--PASSENGER FACILITY CHARGES

Section 111. Passenger facility charge modernization

    This section eliminates the following criteria imposed on a 
Passenger Facility Charge (PFC) of $4 or $4.50: (1) that the 
Secretary must find, for medium or large hub airports, that a 
PFC of $4 or $4.50 will be used to fund a project that makes a 
``significant contribution to improving air safety and 
security, increasing competition among air carriers, reducing 
current or anticipated congestion, or reducing the impact of 
aviation noise on people living near the airport;'' and (2) 
that the Secretary must find that a PFC of $4 or $4.50 will be 
used to fund a project that cannot be expected to be funded 
through AIP.

Section 112. Pilot program for PFC authorizations

    This section expands the pilot program expediting the 
authorization of a PFC at nonhub airports to all primary 
airports.

         SUBTITLE C--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

Section 121. Clarification of airport obligation to provide FAA airport 
        space

    This section prohibits the FAA from requiring airports to 
provide the agency with construction services or building space 
without compensation or reimbursement, with certain exceptions.

Section 122. Mothers' rooms at airports

    This section requires, within two years of enactment, 
medium and large airports to maintain a ``lactation area'' in 
the sterile areas of each passenger terminal building for 
mothers to feed their infants. This section also allows the 
Secretary to temporarily waive the requirement that the 
lactation area be located in the sterile area if construction 
activities make it impracticable or unsafe to do so. 
Additionally, it allows the construction or installation of 
lactation areas to be eligible for AIP funding at any 
commercial service airport.

Section 123. Extension of competitive access reports

    This section extends the sunset date of competition access 
reports in section 47107(r)(3) of title 49, United States Code, 
through fiscal year 2023.

Section 124. Grant assurances

    This section allows GA airports to permit the construction 
of exclusively recreational aircraft by private individuals in 
airport hangars without violating any grant assurances. 
Further, it permits the leasing of airport land not needed for 
aeronautical purposes to local governments for recreational 
use, provided the use is temporary and does not interfere with 
the safety of the airport.

Section 125. Government share of project costs

    This section corrects an unintentional effect of section 
137 of the FAA Modernization and Reform Act of 2012 by ensuring 
that small airports that received an AIP grant in fiscal year 
2011 for a multi-phased project will be able to complete that 
project with the 95 percent federal share that was assumed in 
the project planning.

Section 126. Updated veterans' preference

    This section updates the definition of ``Afghanistan-Iraq 
war veteran'' used for veteran's preference purposes when 
entering into contracts to carry out airport development 
projects.

Section 127. Special rule

    This section extends for fiscal years 2018 through 2020 
authority for airports without a classified status listed in 
the National Plan of Integrated Airport Systems to continue 
receiving the non-primary entitlement funding they received 
from AIP in fiscal year 2013.

Section 128. Marshall Islands, Micronesia, and Palau

    This section extends AIP eligibility for discretionary 
grants and funding from the Small Airport Fund to airports 
located in the Republic of the Marshall Islands, the Federated 
States of Micronesia, and Palau.

Section 129. Nondiscrimination

    This section ensures Indian tribes may establish employment 
and contracting preference for projects at tribally owned 
airports or airports located on Indian reservations, consistent 
with the Civil Rights Act of 1964.

Section 130. State Block Grant Program expansion

    This section expands the number of states allowed to 
participate in the State Block Grant Program from 10 states to 
20 states.

Section 131. Midway Island Airport

    This section extends the authority of the Secretary to 
enter into a reimbursable agreement with the Secretary of the 
Interior to provide AIP discretionary funds for airport 
development projects at Midway Island Airport.

Section 132. Property conveyance releases

    This section authorizes the Secretary to grant an airport, 
city, or county a release from any of the terms, conditions, 
reservations, or restrictions contained in a deed in which the 
United States conveyed certain property. The section also 
requires that the airport, city, or county receive fair market 
value for the sale of any property interest and dedicate any 
sale proceeds to airport development.

Section 133. Minority and disadvantaged business participation

    This section declares the findings of Congress that there 
remains a compelling need for the continuation of the airport 
disadvantaged business enterprise (DBE) program and the airport 
concessions DBE program.

Section 134. Contract Tower Program

    This section amends the FAA Contract Tower Programs in 
several ways. Before an airport is admitted into the contract 
tower program, the FAA performs a rigorous benefit-cost (b/c) 
analysis to ensure that the safety benefits will outweigh the 
economic costs. This section identifies the criteria that 
should be used to evaluate airports in the program as well as 
those applying to enter the program. The section also outlines 
the criteria that may not be used by the FAA in the b/c 
analysis. Additionally, except for airports in the contract 
tower cost-share program, it prohibits the Secretary from 
calculating a new b/c ratio for airports in the program unless 
the annual aircraft traffic at the airport decreases by more 
than 25 percent from the previous year or by more than 60 
percent cumulatively over a three-year period. Further, this 
section requires the Secretary, within 90 days of receiving an 
application to the program, to calculate a b/c ratio for the 
purposes of selecting towers for participation in the program. 
This section requires the Secretary to automatically add a 10-
percentage point margin of error to the b/c ratio to 
acknowledge and account for the direct and indirect economic 
effects and other factors that are not included in the criteria 
the Secretary used in calculating that ratio. This section 
outlines procedures to ensure that airports have an adequate 
opportunity to review and appeal the FAA's b/c analysis. The 
section clarifies that construction and improvement of towers 
whose airport sponsors participated in the FAA Contract Tower 
Program before the date of transfer of the operation of air 
traffic services to the Corporation will remain eligible for 
AIP grant funding and outlines what the eligibility 
requirements will be for such grant funding both before and 
after the date of transfer. This section, additionally, sets 
forth how safety oversight of contract towers will be conducted 
both before and after the date of transfer to the ATC 
Corporation. Lastly, it eliminates the cap on the federal share 
of contract tower construction costs.
    To ensure that airports with high levels of traffic are 
providing adequate levels of air traffic service, the Committee 
believes that the FAA should assess whether FAA contract towers 
at small or medium hub airports operating on the date of 
enactment would be more appropriately operated as FAA-staffed 
ATC Towers.

Section 135. Airport access roads in remote locations

    This section expands the permissible use of AIP funds for 
fiscal years 2017 through 2020 to include the development of an 
airport access road in a non-contiguous state for the purpose 
of enabling the construction of new airports.

Section 136. Buy America requirements

    This section requires the FAA to issue an informal public 
notice of any project-specific Buy America waiver within 10 
days prior to the issuing of the waiver. The justification of 
the waiver determination is required to be publicly available 
and easily accessible on the DOT's website and the Secretary is 
required to provide a public comment opportunity period.

        SUBTITLE D--AIRPORT NOISE AND ENVIRONMENTAL STREAMLINING

Section 151. Recycling plans for airports

    This section clarifies that projects appearing in an 
airport master plan must address the feasibility of solid waste 
recycling, which was a requirement under the FAA Modernization 
and Reform Act of 2012.

Section 152. Pilot program sunset

    This section repeals the airport ground support equipment 
emissions retrofit pilot program established under section 
47140 of title 49, United States Code.

Section 153. Extension of grant authority for compatible land use 
        planning and projects by state and local governments

    This section extends the grant program for the compatible 
land use planning and project program through September 30, 
2023.

Section 154. Updating airport noise exposure maps

    This section revises section 47503(b) of title 49, United 
States Code, to clarify when airports must submit updated noise 
exposure maps to the Secretary in order to encourage additional 
participation in the Part 150 noise mitigation program.

Section 155. Stage 3 aircraft study

    This section directs the Comptroller General to conduct a 
review of the benefits, costs, and other impacts of a phase out 
of stage 3 aircraft. The Comptroller General is required to 
submit a report to Congress no later than 18 months after the 
date of enactment.

Section 156. Addressing community noise concerns

    This section requires the FAA to consider the feasibility 
of dispersal headings or other lateral track variations to 
address noise concerns from affected communities when proposing 
new area navigation departure procedures or amending an 
existing procedure below 6,000 feet over noise sensitive areas.

Section 157. Study on potential health impact of overflight noise

    This section directs the Administrator to enter into an 
agreement with an eligible institution of higher education, to 
conduct a study on the health impacts of noise from aircraft 
flights on residents exposed to a range of noise levels 
focusing on a major metropolitan area. The areas that may be 
studied include, but are not limited to, Boston, Chicago, New 
York, the Northern California Metroplex, Phoenix, the Southern 
California Metroplex, and Washington, District of Columbia. The 
FAA is required to submit a report to Congress no later than 90 
days after it receives the results of the study.

Section 158. Environmental mitigation pilot program

    The section directs the Secretary to carry out a pilot 
program comprised of no more than six projects at public-use 
airports aimed at achieving the most cost-effective and 
measurable reductions in or mitigation of the impacts of 
aircraft noise, airport emissions, and water quality at the 
airport or within five miles of the airport.

Section 159. Airport noise exposure

    The section directs the Administrator to conduct a review 
of the relationship between aircraft noise and its effect on 
communities surrounding airports. FAA is required to submit a 
report to Congress no later than two years after the date of 
enactment containing preliminary recommendations the 
Administrator determines appropriate for revising the land use 
compatibility guidelines in Part 150 of title 14, Code of 
Federal Regulations.

Section 160. Community involvement in FAA NextGen projects located in 
        metroplexes

    The section directs the Administrator, no later than 180 
days after the date of enactment, to conduct a review of the 
FAA's community involvement in NextGen projects located in 
metroplexes. FAA is required to submit a report to Congress no 
later than 60 days after completion of the review on how they 
can improve community involvement, how they will engage 
airports and communities in projects, and lessons learned from 
NextGen projects and pilot programs.

Section 161. Critical habitat on or near airport property

    This section directs the Secretary to work with other 
federal agencies and states to ensure that designations of 
critical habitat on or near airports do not interfere with the 
safe operation of aircraft.

Section 162. Clarification of reimbursable allowed costs of FAA 
        memoranda of agreement

    The section amends existing law to clarify that certain 
noise mitigation projects are an eligible AIP expense under 
certain existing FAA memorandums of agreement.

         Title II--American Air Navigation Services Corporation


Section 201. Purposes

    This section establishes that the purpose of the title is 
to transfer air traffic services and related assets from the 
FAA to a separate not-for-profit corporate entity to provide 
more efficient operation and improvement of air traffic 
services in the United States.

       SUBTITLE A--ESTABLISHMENT OF AIR TRAFFIC SERVICES PROVIDER

Section 211. American Air Navigation Services Corporation

    This section amends title 49, United States Code, by 
inserting a new Subtitle XI--the American Air Navigation 
Services Corporation--at its end. The new Subtitle XI contains 
the following provisions:

Chapter 901--General provisions

    Section 211 of the bill also adds a new chapter 901 of 
title 49, United States Code, by adding the following new 
section:
            Section 90101. Definitions
    This section provides a number of definitions and sets 
October 1, 2020, as the date on which the Corporation assumes 
operational control of air traffic services from the FAA.

Chapter 903--Establishment of air traffic services provider; transfer 
        of air traffic services

    Section 211 of the bill also adds a new chapter 903 of 
title 49, United States Code, by adding the following new 
sections:
            Section 90301. Establishment of Corporation
    This section establishes the Corporation as a federally 
chartered, not-for-profit corporation; entitles the Corporation 
to exclusive use of the name American Air Navigation Services 
Corporation; allows the Corporation to be incorporated in a 
state of its choosing; and allows it to do business under a 
name of its choosing.
            Section 90302. Transfer of air traffic services
    This section directs the Secretary to transfer operational 
control over air traffic services within the United States 
airspace and airspace delegated the United States to the 
Corporation on the date of transfer. It grants the Corporation 
exclusive permission to provide air traffic services within 
United States airspace, except for the DOD (as determined by 
the President), entities to which the United States has 
delegated certain air traffic responsibilities, entities with 
which the Corporation has contracted, and certain providers of 
unmanned aircraft traffic management systems.
            Section 90303. Role of Secretary in transferring air 
                    traffic services to Corporation
    This section directs the Secretary to manage and execute 
the transfer of air traffic services to the Corporation. It 
prohibits the Secretary from delegating authority under the 
subtitle to the Administrator unless otherwise provided.
            Section 90304. Status and applicable laws
    This section establishes the legal status and laws 
applicable to the Corporation. The section also clarifies that 
the federal government is not liable for any actions or 
inactions of the Corporation. Additionally, it directs that the 
Corporation be required to maintain its not-for-profit status 
under the Internal Revenue Code of 1986. Lastly, it clarifies 
that the federal government does not implicitly or explicitly 
guarantee the Corporation's debt.
            Section 90305. Nomination Panels for Board
    This section defines the composition, terms and 
qualifications of the Nomination Panels for the Board of 
Directors of the Corporation. The Nomination Panels will be 
responsible for nominating qualified persons to serve on the 
Board of Directors of the Corporation. The Nomination Panels 
will be comprised of representatives appointed by the following 
aviation stakeholder groups: passenger air carriers, cargo air 
carriers, regional air carriers, GA, business aviation, air 
traffic controllers, airports, and commercial pilots.
            Section 90306. Board of Directors
    This section vests the powers of the Corporation in a Board 
of Directors that governs the Corporation. It establishes the 
following composition of the Board:
          --The Chief Executive Officer (CEO) of the 
        Corporation;
          --Two Directors appointed by the Secretary of 
        Transportation;
          --One Director nominated by the Passenger Air Carrier 
        Nomination Panel;
          --One Director nominated by the Cargo Air Carrier 
        Nomination Panel;
          --One Director nominated by the Regional Air Carrier 
        Nomination Panel;
          --One Director nominated by the General Aviation 
        Nomination Panel;
          --One Director nominated by the Business Aviation 
        Nomination Panel
          --One Director nominated by the Air Traffic 
        Controller Nomination Panel;
          --One Director nominated by the Airport Nomination 
        Panel;
          --One Director nominated by the Commercial Pilot 
        Nomination Panel; and
          --Two ``at-large'' Directors nominated and selected 
        by the other Directors on the Board.
    This section outlines the nomination and appointment 
processes for both before and after the date of transfer. 
Before the date of transfer, each nomination panel submits to 
the Secretary a list, chosen by consensus, of four qualified 
individuals nominated to be Directors. The Secretary is 
required, no later than 30 days after the last nomination list 
submission, to appoint two individuals to be Directors, and 
select the appropriate number of individuals to be Directors 
from each list submitted by the nomination panels. After the 
date of transfer, the lists of four qualified individuals 
nominated to be Directors is submitted to the Board of 
Directors for selection. The Secretary continues the 
appointment of two Directors as needed to fill vacant seats.
    The section also outlines multiple other duties of the 
Board; establishes the authority, terms, requirements, and 
certain processes of the Board; and outlines the reporting 
requirements and accountability of the Corporation.
    Lastly, this section directs that each Director will serve 
terms that are four years in duration and imposes a term 
limitation eight years.
            Section 90307. Fiduciary duties and qualifications of 
                    Directors
    This section outlines the qualifications necessary to serve 
on the Board and establishes the fiduciary duties of a Director 
to be solely and exclusively to the Corporation and not to the 
Nomination Panels, nor the stakeholder groups that nominated 
them. Directors must be United States citizens and may not be a 
government employee, employee of a union, or employee of a 
business that is a user of the Corporation's services or has a 
material interest in the Corporation. It also includes a 
private right of action for the Corporation in the event of 
breach of a Director's fiduciary duty.
            Section 90308. Bylaws and Duties
    This section outlines the required bylaws of the 
Corporation and the duties and responsibilities of the Board 
including:
          --Adoption of an annual budget;
          --Approval of a strategic plan and updates to that 
        plan;
          --Authorization for issuance of indebtedness;
          --Assessment, modification, and collection of air 
        traffic services charges and fees;
          --Hiring and supervision of the CEO;
          --Establishment and maintenance of an appropriately 
        funded reserve fund;
          --Establishment of a process to ensure the fiduciary 
        duty of a Director is solely and exclusively to the 
        Corporation;
          --Establishment of a process to remove a Director; 
        and
          --Adoption of a process for filling vacancies on the 
        Board.
            Section 90309. Committees of Board; independent auditors
    This section requires the Board of Directors to establish a 
Safety Committee, a Compensation Committee, a Technology 
Committee, and any other committee the Board deems necessary or 
appropriate to carry out the Corporation's responsibilities. It 
requires that the Corporation retain independent auditors to 
review financial statements and internal controls.
            Section 90310. Advisory Board
    This section establishes an Advisory Board to provide 
policy advice to the Board of Directors and gives the Advisory 
Board the authority to submit recommendations for independent 
Directors. The Advisory Board will include not more than 15 
members, including representatives of air carriers; GA; 
business aviation; commercial service airports; operators and 
manufacturers of commercial unmanned aircraft systems; 
appropriate labor organizations; DOD; and small communities, 
including those served by nonhub airports.
            Section 90311. Officers and their responsibilities
    This section requires the Board of Directors to select and 
hire a CEO, establishes the CEO's duties and scope of 
authority, and authorizes an interim CEO position to serve 
prior to the date of transfer and until the Board of Directors 
hires a CEO. It also sets forth the process for the CEO to 
appoint a Chief Operating Officer and a Chief Financial Officer 
subject to the approval of the Board.
            Section 90312. Authority of Corporation
    This section outlines the general corporate powers of the 
Corporation, including the ability to enter contracts, acquire 
property, indemnify employees, and be a party to lawsuits. The 
section also prohibits the Corporation from selling or issuing 
equity shares in the Corporation.
            Section 90313. Charges and fees for air traffic services
    This section allows the Corporation to assess and collect 
charges and fees from certain categories of air traffic service 
users beginning on the date of transfer. It also outlines the 
duties of the Board to approve air traffic charges and fees. 
The section establishes processes for providing air traffic 
services users notice of any changes in fees or charges. The 
section additionally requires the Corporation to publish an 
initial fee schedule at least 180 days before the date of 
transfer that must be approved by the Secretary. Increases in 
charges or fees also require Secretarial approval and must be 
submitted at least 90 days before the effective date. Further, 
the section establishes criteria for Secretarial reviews 
including consistency with the United States' international 
obligations, ICAO Policies on Charges for Air Navigation 
Services (Ninth Edition), non-discrimination, safety 
considerations, and the Corporation's financial requirements. 
Additionally, it prohibits charges and fees on public aircraft 
operations, including those operated by the armed services, and 
GA operations. The sections sets forth that users will incur an 
obligation to pay fees upon the rendering of air traffic 
services by the Corporation, allowing the Corporation to file 
suit to collect delinquent fees, and assess penalties and 
interest for delinquent payment.
            Section 90314. Preemption of authority over air traffic 
                    services
    This section preempts the application of state, local, and 
tribal law to ATC services.
            Section 90315. Actions by and against Corporation
    This section gives federal courts, rather than state or 
local courts, original jurisdiction over any lawsuit by or 
against the Corporation. This limits the ability of Corporation 
employees to provide expert testimony or expert opinion in 
certain circumstances.
            Section 90316. Transfer of federal personnel to Corporation
    This section establishes the processes and procedures for 
transferring federal employees to the Corporation. It is the 
intent of the Committee that employees who transfer from the 
FAA to the Corporation be guaranteed a continuation of their 
pay, benefits, and working conditions, unless and until they 
transfer into new programs that may be established or developed 
by the Corporation after meeting its bargaining obligations 
with the exclusive representatives of the employees of the 
Corporation.
    The process of determining which employees, categories of 
employees and activities that will be transferred to 
Corporation must be completed 180 days prior to the date of 
transfer. In order to ensure that the Secretary's assessments 
and determinations are thoroughly informed, the Secretary is 
directed to consult with the relevant labor organizations that 
have first-hand knowledge of the operational needs of air 
traffic services. It is also essential that the Secretary 
consult with the CEO who is ultimately responsible for 
Corporation's management and performance after the date of 
transfer. Towards that end, Section 90316 requires the FAA, the 
Corporation, and labor organizations representing their 
employees to be proactive to resolve all transition issues in 
an expeditious manner.
    Within 180 days of enactment, the Secretary is required to 
meet and confer with the Corporation and current labor 
organizations to determine which activities and categories of 
employees should be transferred to the Corporation. Similarly, 
during the transition to the new Corporation, Section 90316 
requires the parties to engage in negotiations and reach either 
bipartite or tripartite agreements, as appropriate, to ensure 
that their collective bargaining agreements and the other 
working conditions that apply to FAA employees are jointly 
updated to reflect that the Corporation is not a Federal entity 
and the employees working for the Corporation are no longer 
Federal employees. The parties also should be proactive in 
resolving transition issues related to the separation of air 
traffic services from the FAA, including, but not limited to: 
Air Traffic Safety Action Plan (ATSAP), Fatigue Risk 
Management, Professional Standards, technology development, 
approval, testing, training, and implementation.
    The parties are encouraged to work collaboratively to 
resolve all issues related to the transition and the workforce, 
and to implement the dispute resolution procedures on a timely 
basis should they be unable to reach agreement.
    As part of the transition process, the Committee 
anticipates that the Secretary, the CEO, or both, may revisit a 
determination to transfer employees to the Corporation or to 
retain them at the FAA should be revisited. It is important 
that flexibility exist during the initial phase of the 
Corporation's existence to ensure the proper allocation of 
functions, activities, resources and personnel. Therefore, this 
section provides for a process during the first 180 days 
following the date of transfer, by which employees may be 
transferred to Corporation from the FAA or vice versa if the 
Secretary determines that the placement of the employee was 
inconsistent with the purposes of the subtitle. The section 
also includes protections of employment rights and benefits for 
employees transferred between Corporation and the FAA. These 
protections extend to personnel whom the Secretary decides to 
retain within the FAA. The inclusion of these persons is 
intended to ensure that their rights are protected throughout 
the transition.
    Section 90316 includes other provisions to aid in a smooth 
transfer of employees to Corporation. FAA air traffic 
controllers and other key personnel work in restricted access 
environments that are owned or leased by the federal 
government. They are required to have specialized clearances, 
determinations of suitability, and medical qualifications in 
order to perform their duties. Therefore, in order to ensure a 
seamless transition and to mitigate any latent risks of lapses 
in credentialing, this section ensures the ongoing validity of 
all required credentials, certificates, clearances, and any 
other permissions or approvals necessary for employees 
transferred to Corporation to continue their work on the date 
of transfer and beyond. Such ``grandfathered'' credentials 
shall remain valid until equivalent or substantially equivalent 
credentials may be issued. However, the federal government may 
revoke any credential for cause.
            Section 90317. Transfer of facilities to Corporation
    This section sets forth a process by which the Secretary 
must identify and transfer assets necessary to carry out air 
traffic services to the Corporation without charge. The section 
requires that the Corporation use proceeds from the sale of any 
assets received from the government to acquire or improve new 
air navigation facilities or other assets. It requires 
maintenance by the Corporation of equipment that is located in 
a noncontiguous state of the United States that is determined 
necessary to the Corporation. It also establishes a moratorium 
on consolidation or realignment of air traffic services 
facilities until requisite processes are established, and 
directs the Corporation to establish a process for the 
consolidation or realignment of facilities, in consultation 
with labor, six months before the date of transfer.
            Section 90318. Approval of transferred air navigation 
                    facilities and other equipment
    This section authorizes the Corporation to operate air 
navigation facilities and other assets received from the FAA 
without separate certification or approval.
            Section 90319. Use of spectrum systems and data
    This section directs the Secretary to provide the 
Corporation with access to the spectrum systems (and any 
successor systems) and any data from those systems, that the 
FAA had been using before the date of transfer to provide air 
traffic services.
            Section 90320. Transition plan
    This section requires the Secretary, after conferring with 
the CEO of the Corporation, to establish a transition team 
whose purpose is to develop a transition plan consistent with 
this subtitle, to be reviewed by the Secretary, and if 
approved, utilized by DOT during the transition period of air 
traffic services from FAA to the Corporation.

Chapter 905--Regulation of Air Traffic Services Provider

    Section 211 of the bill also adds a new chapter 905 of 
title 49, United States Code, by adding the following new 
sections:
            Section 90501. Safety oversight and regulation of 
                    Corporation
    This section directs DOT to conduct safety oversight of the 
Corporation, including the issuance of performance-based 
regulations and minimum safety standards for the operation of 
air traffic services as well as for the certification and 
operation of air navigation facilities. It directs DOT to 
identify the policies and administrative materials of the FAA 
for providing air traffic services before the date of transfer 
that will apply to the Corporation after the date of transfer. 
The section requires the Corporation to submit any proposals to 
change airspace or traffic management procedures to DOT, who 
must approve, disapprove, or modify such proposals on an 
expedited basis. Additionally, it allows the Secretary to 
delegate safety oversight functions to the Administrator. 
Lastly, the section brings oversight of the Corporation in line 
with the rest of the aviation industry.
            Section 90502. Resolution of disputes concerning air 
                    traffic services charges and fees
    This section establishes a dispute resolution mechanism for 
fees assessed to users. It requires that the Secretary 
establish a process for the handling of complaints and make 
determinations of correctness of fees.
            Section 90503. International agreements and activities
    This section requires that the Corporation provide air 
traffic services in a manner consistent with the United States' 
sovereign obligations under various international agreements or 
applicable foreign laws. The section also clarifies that the 
Corporation cannot represent or negotiate on behalf of the 
United States before any foreign government or international 
organization.
            Section 90504. Availability of safety information
    This section requires that the Corporation provide users 
with the same safety information provided to users by the FAA 
before the date of transfer, as well as any additional safety 
information necessary for safe use of air traffic services. The 
section also permits the Corporation to provide weather 
information and maps used by flight crews.
            Section 90505. Reporting of safety violations to FAA
    This section requires the Corporation to report possible 
safety violations it observes to the FAA, and assist the FAA in 
any related enforcement action.
            Section 90506. Insurance requirements
    This section requires that the Corporation obtain insurance 
policies and coverages sufficient to cover the anticipated 
liability risks of its operations, including indemnification of 
employees acting within their scope of employment to protect 
them against legal actions that may be brought against them in 
their individual capacity.

Chapter 907--General Rights of Access to Airspace, Airports, and Air 
        Traffic Services Vital to Ensuring Safe Operations for All 
        Users

    Section 211 of the bill adds a new chapter 907 of title 49, 
United States Code, by adding the following new sections:
            Section 90701. Access to airspace
    This section directs the Secretary to ensure that no user 
is denied access to airspace on the basis of the user being 
exempt from charges and fees, pursuant to section 90313.
            Section 90702. Access to airports
    This section requires the Secretary to establish a 
determination, with respect to carrying out section 
90501(c)(3), on whether a proposal would materially reduce 
access to a public use airport, which includes GA airports or 
rural airports.
            Section 90703. Contract tower service after date of 
                    transfer
    This section directs the Secretary to take necessary 
actions to ensure the Corporation meets all contractual 
obligations of FAA contract towers that were in operation 
before the date of transfer. This section also outlines special 
rules governing the proposed closure of air traffic control 
towers that participated in FAA Contract Tower Program before 
the date of transfer when the proposed closure would result in 
an airspace change or reclassification. It also includes a 
process for meaningful analysis of potential impacts of such a 
closure and community involvement. The section outlines the 
impacts that must be analyzed by the Corporation as part of the 
review process.
    Existing contracts between contract tower operators and the 
FAA began on July 1, 2015, and continue for five years. The 
Committee is aware that current contracts may expire during the 
transition period to the Corporation. Given the importance of 
contract towers to over 250 smaller airports in rural America 
and major metropolitan areas, it is clear that the Contract 
Tower Program should continue without interruption during the 
transition period. As validated by the DOT IG, the Contract 
Tower Program is cost effective, saving the FAA and taxpayers 
millions of dollars each year. It plays a major role in the 
Nation's air transportation system, handling approximately 30 
percent of all tower aircraft operations in the United States, 
including almost half of all military operations at civilian 
airports. The Committee believes that FAA and the Corporation 
should consider the merits of renewing the current contracts 
that may expire during the transition period to ensure complete 
continuity of air service and access for all airspace users.
    Nothing in this section should be construed to limit the 
ability of the Corporation to convert a former FAA contract 
tower into the post-transfer equivalent of an FAA Air Traffic 
Control Tower in order to provide better air traffic services 
at an airport.
            Section 90704. Availability of safety information to 
                    general aviation operators
    This section requires the Corporation, in carrying out 
section 90504, to disclose all safety information to air 
traffic services users, including GA operators and the public.
            Section 90705. Special rules and appeals process for air 
                    traffic management procedures, assignments, and 
                    classifications of airspace
    This section sets forth special rules and decisional 
standards for the Secretary when reviewing a proposal by the 
Corporation to modify, reduce, decommission, or eliminate an 
air traffic service or navigation facility that would hinder 
access to a public-use airport or airspace for any class, 
category, or type of aircraft in operation. It outlines the 
judicial review process for such determinations.
            Section 90706. Definitions
    This section provides a number of definitions for this 
chapter.

Chapter 909--Continuity of Air Traffic Services to DOD and Other Public 
        Agencies

    Section 211 of the bill adds a new chapter 909 of title 49, 
United States Code, by adding the following new sections:
            Section 90901. Continuity of air traffic services provided 
                    by DOD
    As directed by the President, this section permits the DOD 
to provide air traffic services within United States airspace 
and international airspace delegated to the United States after 
the date of transfer.
            Section 90902. Military and other public aircraft exempt 
                    from user fees
    This section prohibits the Corporation from imposing any 
charges or fees on aircraft owned or operated by the Armed 
Forces and other public aircraft.
            Section 90903. Air traffic services for federal agencies
    This section requires the Secretary to establish processes 
ensuring that the Corporation supports all activities of the 
United States government supported by FAA before the date of 
transfer and on an ongoing basis thereafter.
            Section 90904. Emergency powers of armed forces
    This section clarifies that the safety oversight 
requirements outlined in section 90501 do not apply to airspace 
actions authorized under section 40106 of title 49, United 
States Code.
            Section 90905. Adherence to international agreements 
                    related to operations of armed forces
    This section requires the Corporation, in carrying out 
section 90503, to ensure that all obligations described in that 
section include obligations related to the operations of the 
Armed Forces.
            Section 90906. Primacy of armed forced in times of war
    This section allows for the temporary transfer of a duty, 
power, activity, or facility of the Administrator or the 
Corporation to DOD by the President during war.
            Section 90907. Cooperation with DOD and other federal 
                    agencies after date of transfer
    This section requires the Corporation, DOT, and all federal 
agencies supported by the FAA's operation of air traffic 
services enter into a tripartite agreement to ensure 
cooperation between the entities, facilitate the safe provision 
of services, and address coordination and communication of day-
to-day operations after the date of transfer.

Chapter 911--Employee Management

    Section 211 of the bill also adds a new chapter 911 of 
title 49, United States Code, by adding the following new 
sections:
            Section 91101. Definitions
    This section sets forth certain definitions relating to 
employee management.
            Section 91102. Employee management and benefits election
    This section establishes the CEO's authority to set wages, 
hours, and other terms of employment just like other private 
entities throughout the Nation. It ensures that employees 
initially transferred from the federal government to the 
Corporation are kept whole in terms of their benefits by 
allowing them to elect whether to retain federal benefits or 
opt for comparable benefits offered by the Corporation. To do 
so, the section substitutes the Corporation for the government, 
to ensure the government's employer obligations are transferred 
to the Corporation. This section also extends several important 
laws, including whistleblower safeguards, to the Corporation 
and its employees.
            Section 91103. Labor and employment policy
    This section applies much of the Federal Service Labor-
Management Relations Statute (FSLMRS) that governs labor-
management relations in the federal government to the 
Corporation and its employees. Primarily, this includes the 
union prohibition on the right to strike and other actions that 
would disrupt the operation of the air traffic control system. 
It preserves air traffic controllers' and other employees' 
existing right to participate in labor organizations or refrain 
from doing so, if desired, commonly referred to as an ``open 
shop.'' It also continues other laws as applicable to the 
Corporation and its labor organizations to ensure fairness and 
transparency in labor relations and reporting.
            Section 91104. Bargaining units
    This section preserves the existing structure of bargaining 
units to ensure the units are system-wide and not divided 
piecemeal across the country. Further, it clearly prohibits 
supervisors and managers from joining a union.
            Section 91105. Recognition of labor organizations
    This section requires the Corporation to recognize and 
bargain with the labor organizations selected by its employees. 
This section is designed to maintain continuity in labor-
management relations, ensure a smooth transition, and minimize 
the potential for disruption to the employees and the 
Corporation.
    This section also requires the employees and the 
Corporation to comply with the terms of collective-bargaining 
agreements and arbitration awards in effect on the date of 
transfer until such agreements and awards expire or are 
lawfully altered or amended. The Committee understands that 
this will ensure productive labor-management relations and 
seamless ATC service operations throughout the transition.
            Section 91106. Collective-bargaining agreements
    This section establishes certain requirements for 
collective bargaining agreements, including that such 
agreements be effective for no less than two years.
            Section 91107. Collective-bargaining dispute resolution
    This section establishes a process by which the Corporation 
and labor organizations will resolve their disputes arising in 
collective bargaining. The need for finality in the negotiation 
of collective-bargaining agreements between the Corporation and 
its employees is important to all stakeholders. Section 91107 
sets forth a process by which the Corporation and the labor 
organization will resolve disputes arising from negotiation 
impasses for both term collective-bargaining agreements and 
mid-term bargaining.
    The first step of the process for term bargaining or mid-
term bargaining is to negotiate in good faith. After 90 days of 
negotiation, the parties may invoke the mediation services of 
the Federal Mediation and Conciliation Service (FMCS). This 
mediation period shall last 60 days, unless extended by the 
parties. If no resolution is reached through negotiation, 
binding arbitration is invoked. This is where the term 
bargaining and mid-term bargaining differs slightly in process.
    For term bargaining, the binding arbitration is conducted 
by a three-member arbitration board with one arbitrator 
selected by each party, and the third selected by those two 
arbitrators from a list of 15 well-qualified arbitrators (e.g., 
the National Academy of Arbitrators, the American Arbitration 
Association) prepared by the Director of the FMCS. Once 
selected, the arbitration board must hold a hearing, including 
presentations of evidence and witnesses. The arbitration board 
must give proper weight to the evidence and, not later than 90 
days from appointment, issue its decision. The parties must 
share in the costs of arbitration. This section is enforceable 
in United States District Court for the District of Columbia.
    Unlike term bargaining, mid-term bargaining is resolved by 
a single arbitrator, instead of a board. The arbitrator must be 
of national reputation and significant experience, just as is 
required for the arbitration board for term bargaining. The 
selection process for the arbitrator begins with the 
development of a list of ten arbitrators by the FMCS, from 
which each party strikes a name until one is left. The 
arbitrator must hold a hearing and issue a written decision 
within 90 days. This section is also enforceable in United 
States District Court for the District of Columbia.
    Both processes for term and mid-term bargaining will help 
ensure peaceful labor-management relations through a 
prescriptive, conclusive, and binding process. The Committee 
prefers resolution of disputes and impasses through 
negotiations or mutually agreed to terms and processes; 
however, when such negotiations break down, the section 
provides for certainty in the resolution of disputes that will 
ensure the safe, efficient, and continuous provision of air 
traffic control services.
            Section 91108. Potential and pending grievances, 
                    arbitrations, and settlements
    This section transfers existing enforceable grievance 
awards and arbitration awards as obligations of the 
Corporation, and preserves employees' and management's rights 
in such agreements in effect on the date of transfer. Any 
grievances or arbitrations pending on the date of transfer are 
also transferred with the Corporation stepping into the shoes 
of the employer; however, to the extent such proceedings 
require financial or monetary reward, such financial or 
monetary liability remains with the government by operation of 
this section in conjunction with section 91302. The Committee 
does not want to burden the Corporation with financial or 
monetary liability arising from the acts or omissions of the 
federal government. However, where a grievance or arbitration 
award would require the Corporation to change its practices or 
to take actions as the successor to the FAA as an employer, 
such change in practice or action should be required of the 
Corporation. This section permits either party to an 
arbitration award to seek judicial action to vacate such an 
award pursuant to section 91110(a).
            Section 91109. Prohibition on striking and other activities
    This section strictly prohibits employees from engaging in 
strikes, work stoppages, slowdowns, and picketing of the 
Corporation and requires termination of employees who engage in 
such activity. The burden of proof and other standards 
established in Schapansky v. Department of Transportation, 735 
F.2d 477 (Fed. Cir. 1984) and its progeny shall apply to any 
resolution of disputes arising under this section.
            Section 91110. Legal action
    To ensure uniformity in legal actions and precedent across 
the country, given the national make-up of air traffic control 
services, this section establishes the jurisdiction of federal 
district courts to hear cases brought to enforce or vacate 
arbitration awards. It also establishes federal court 
jurisdiction for actions by and against labor organizations 
under this bill. In conjunction with section 90315, the federal 
courts shall have jurisdiction over all actions by and against 
the Corporation and all labor-related actions. Keeping the 
jurisdiction in the federal courts will ensure consistency by 
preventing state laws and courts from being invoked which would 
result in piecemeal and possibly inconsistent legal decisions. 
Furthermore, federal courts already have the requisite 
experience with regard to the federal labor statutes and 
processes involved in this chapter, and, therefore, are best 
equipped to continue interpreting and applying them.

Chapter 913--Other Matters

    Section 211 of the bill also adds a new chapter 913 of 
title 49, United States Code, by adding the following new 
sections:
            Section 91301. Termination of government functions
    This section clarifies that any activity vested in law in 
the Secretary, Administrator, DOT, or the FAA that has been 
transferred to the Corporation pursuant to this Act shall cease 
to be a function of the government after the date of transfer.
            Section 91302. Savings provisions
    This section ensures the continued effectiveness of the 
government's pending and completed administrative actions and 
proceedings, including rulemakings, licensing proceedings, 
certain contract obligations, and various applications, until 
they are amended, modified, superseded, terminated, set aside 
or revoked. It also ensures that certain legal claims, based on 
the government's acts or omissions before the date of transfer, 
will continue to be available after the date of transfer. The 
section requires the Corporation to assume air traffic services 
related assets and liabilities from the FAA, and ensures 
certain liabilities, such as torts claims arising from the acts 
of transferred FAA employees, and environmental claims, remain 
with the federal government.

Chapter 915--Congressional Oversight of Air Traffic Services Provider

    Section 211 of the bill also adds a new chapter 915 of 
title 49, United States Code, by adding the following new 
sections:
            Section 91501. Inspector General reports to congress on 
                    transition
    This section requires the DOT IG, up until the date of 
transfer, to submit quarterly reports to Congress on the 
progress of the preparation of the DOT and the Corporation for 
the transfer of operational control of air traffic services.
            Section 91502. State of air traffic services
    This section requires the Corporation, not later than two 
years after the date of transfer, and every two years 
thereafter, to submit a report on the state of air traffic 
services, covering charges and fees, safety, interaction 
between the Corporation and federal agencies, the Corporation's 
compliance with various laws, international treaties/
agreements, and more.
    The Committee has supported the FAA's efforts over the past 
decade to deploy proven, cost effective, commercial off-the-
shelf integrated control and monitoring systems to improve 
safety, efficiency and situational awareness for controllers. 
However, the Committee recognizes that the FAA has been unable 
to deploy cost effective, safe and modern off-the-shelf 
technology that could improve the efficiency and safety of the 
NAS. The transfer of responsibility of providing ATC services 
to the Corporation will enable the new service provider to 
utilize such off-the-shelf technology more quickly should it so 
choose.
            Section 91503. Submission of annual financial report
    Starting not later than one year after the date of 
transfer, this section requires the Corporation to annually 
submit a report on the financial and operational performance 
information of the Corporation during the previous year to the 
Secretary, which will subsequently be submitted to Congress.
            Section 91504. Submission of a strategic plan
    This section requires the Corporation, no later than 15 
days after the initial strategic plan of the Corporation is 
approved by the Board, to submit the strategic plan to the 
Secretary, who shall then submit it to Congress. Also, it 
requires a similar submittal process for any updates to the 
strategic plan.
            Section 91505. Submission of annual action plan
    This section requires the Corporation to develop an annual 
report on the goals of the Corporation for the following year, 
including specific and tangible goals to help expedite the 
improvement of the Corporation as a whole. Not later than one 
year after the date of transfer and on an annual basis 
thereafter, this section requires the Corporation to submit the 
report to the Secretary and the Secretary to submit the report 
to Congress.

            SUBTITLE B--AMENDMENTS TO FEDERAL AVIATION LAWS

Section 221. Definitions

    This section adds the definition of ``American Air 
Navigation Services Corporation'' to section 40102 of title 49, 
United States Code.

Section 222. Sunset of FAA air traffic entities and officers

    This section sunsets the FAA's Air Traffic Services 
Committee, the Air Traffic Organization Chief Operating Officer 
position, and the Chief NextGen Officer position on the date of 
transfer, and amends the authorities of the FAA's Management 
Advisory Council and Aircraft Noise Ombudsman to reflect the 
separation of air traffic services.

Section 223. Role of administrator

    This section clarifies that while the Corporation may 
conceive of and design changes to the airspace after the date 
of transfer as part of its provision of air traffic services, 
the FAA will continue prescribing regulations relating to the 
safe operation of aircraft, and will ensure equitable access to 
and use of airspace.

Section 224. Emergency powers

    This section requires appropriate military authorities to 
inform the Corporation as early as possible if military 
aircraft will deviate from safety regulations due to an 
emergency or urgent military necessity.

Section 225. Presidential transfers in time of war

    This section provides the President the same authority 
related to the Corporation as the President has related to the 
FAA if war should occur. It also clarifies that if war occurs, 
the President would have the power to temporarily transfer to 
the Secretary of Defense an activity or facility of the 
Corporation (or of the FAA).

Section 226. Airway Capital Investment Plan before date of transfer

    This section terminates the requirement that the 
Administrator produce an annual Airway Capital Investment Plan 
following the date of transfer. After the date of transfer, the 
Corporation will be responsible for such investment planning 
and will be required to provide an annual report containing 
financial and operational performance information and to retain 
independent auditors to conduct annual audits of the 
Corporation's financial statements and internal controls.

Section 227. Aviation facilities before date of transfer

    This section sunsets certain authorities of the 
Administrator relating to the purchase and maintenance of air 
navigation facilities on the date of transfer. Such activities 
will be conducted by the Corporation after the date of 
transfer. The section adds the Corporation to a list of 
entities that must be consulted before the establishment of 
military aviation facilities to ensure conformity with plans 
and policies regarding airspace.

Section 228. Judicial review

    This section amends existing law by allowing a person 
disclosing a substantial interest in an order issued by the 
Secretary or the Administrator with respect to aviation duties 
and powers designated to be carried out by the Administrator to 
apply for judicial review of the order.

Section 229. Civil penalties

    This section amends existing law to add section 90501 to 
the list of sections to which a civil penalty may be imposed. 
It also allows the Secretary to impose a civil penalty of not 
more than $25,000 for violations of 90501.

                       SUBTITLE C--OTHER MATTERS

Section 241. Use of federal technical facilities

    This section ensures the ongoing availability of the FAA's 
research facilities to the Corporation.

Section 242. Ensuring progress on NextGen priorities before date of 
        transfer

    This section directs the Administrator, in consultation 
with the NextGen Advisory Committee, to prioritize the 
implementation of the following programs: Multiple Runway 
Operations; Performance-Based Navigation; Surface Operations 
and Data Training; and Data Communications. The section also 
directs the Administrator to establish near-term NextGen goals 
and amends existing law to require a NextGen metrics report to 
be included as part of the annual report required under the 
law.

Section 243. Severability

    The section serves as the severability clause for the title 
in the event one or more parts of the title are found to be 
invalid.

Section 244. Prohibition on the receipt of federal funds

    The section prohibits the Corporation from accepting or 
receiving any of the uncommitted balance of the Airport and 
Airway Trust Fund.

               Title III--FAA Safety Certification Reform


                     SUBTITLE A--GENERAL PROVISIONS

Section 301. Definitions

    This section sets forth definitions applicable to this 
title.

Section 302. Safety Oversight and Certification Advisory Committee

    This section establishes the Safety Oversight and 
Certification Advisory Committee (SOCAC), comprised of industry 
stakeholders, including GA, commercial aviation, aviation 
labor, aviation maintenance, and more, and the Administrator. 
The SOCAC is responsible for providing advice to the Secretary 
on policy level issues related to FAA safety certification and 
oversight programs and activities, and establishing consensus 
national goals, strategic objectives and priorities to achieve 
the most efficient, streamlined and cost-effective 
certification and oversight processes. The SOCAC sunsets after 
six years.

               SUBTITLE B--AIRCRAFT CERTIFICATION REFORM

Section 311. Aircraft certification performance objectives and metrics

    This section directs the Administrator to work with the 
SOCAC to establish performance objectives for the FAA and the 
aviation industry related to aircraft certification, and apply 
and track performance metrics for both FAA and aviation 
industry. These performance objectives for aircraft 
certification shall ensure that progress is being made in 
eliminating delays, increasing accountability, and achieving 
full utilization of delegation, while maintaining leadership of 
the United States in international aviation. The data for the 
metrics will be publicly available on the FAA's website.

Section 312. Organization designation authorizations

    This section amends existing law by requiring that when 
overseeing an organization designation authorization (ODA) 
holder, the Administrator must require a procedures manual that 
addresses all procedures and limitations regarding the ODA's 
functions to ensure that such functions are delegated fully to 
the ODA (unless there is a safety or public interest reason to 
not delegate functions). This section establishes a centralized 
ODA policy office within the FAA's Office of Aviation Safety to 
oversee and ensure the consistency of audit functions under the 
ODA program across the FAA.

Section 313. ODA review

    This section establishes a multidisciplinary expert review 
panel consisting of members appointed by the Administrator to 
conduct a survey of ODA holders and applicants to obtain 
feedback on the FAA's efforts involving the ODA program and 
make recommendations to improve the FAA's ODA-related 
activities. Within six months of the Panel convening, they will 
submit a report to the FAA and relevant congressional 
committees on any findings and recommendations.

Section 314. Type certification resolution process

    This section requires the Administrator to establish a type 
certification resolution process, in which the certificate 
applicant and FAA will establish for each project specific 
certification milestones and timeframes for those milestones. 
If the milestones are not met within the specific timeframe, 
the milestone will be automatically elevated to the appropriate 
management levels of both the applicant and FAA and resolved 
within a specific period of time.

Section 315. Safety enhancing equipment and systems for small general 
        aviation airplanes

    This section requires, within 180 days of enactment, that 
the Administrator establish and begin implementation of a risk-
based policy that streamlines the installation of safety 
enhancing technologies for small GA aircraft so that the safety 
benefits of such technologies for small GA aircraft can be 
realized.

Section 316. Review of certification process for small general aviation 
        airplanes

    The section directs the DOT IG to review the final rule 
titled ``Revision of Airworthiness Standards for Normal, 
Utility, Acrobatic and Commuter Category Airplanes.'' In this 
review, the DOT IG will assess how the rule puts into practice 
the FAA's efforts to implement performance based safety 
standards, if the rule has improved safety and reduced 
regulatory cost burden and lessons learned.

                  SUBTITLE C--FLIGHT STANDARDS REFORM

Section 331. Flight standards performance objectives and metrics

    The section directs the Administrator, in collaboration 
with the SOCAC established in section 302, to establish 
performance objectives and to apply and track metrics for the 
FAA and aviation industry relating to flight standards 
activities, and achieving national goals established by the 
Advisory Committee.

Section 332. FAA Task Force on Flight Standards Reform

    This section directs the FAA to establish an FAA Task Force 
on Flight Standards Reform (Task Force). The Task Force will be 
comprised of 20 industry experts and stakeholders, and be 
responsible for identifying best practices and providing 
recommendations for simplifying and streamlining flight 
standards processes, training for aviation safety inspectors, 
and to achieve consistency in FAA regulatory interpretations 
and oversight.

Section 333. Centralized Safety Guidance Database

    The section directs the Administrator to establish a 
Central Safety Guidance Database that will include all 
regulatory guidance documents of the FAA Office of Aviation 
Safety within one year of enactment, and make the database 
available to the public.

Section 334. Regulatory Consistency Communications Board

    This section requires the Administrator to establish a 
Regional Consistency Communications Board that will be composed 
of FAA representatives from Flight Standards Service, Aircraft 
Certification Service and Office of the Chief Counsel. The 
Board will be responsible for establishing a process by which 
FAA personnel as well as regulated entities may submit 
regulatory interpretation questions anonymously without fear of 
retaliation. The SOCAC will establish performance metrics for 
both industry and the FAA in regard to the actions of the 
Board.

                      SUBTITLE D--SAFETY WORKFORCE

Section 341. Safety workforce training strategy

    This section directs the FAA to establish a safety 
workforce training strategy that addresses a number of goals. 
These goals include allowing employees participating in 
organization management teams or ODA program audits to complete 
appropriate training in auditing, identifying a systems safety 
approach to oversight, and seeking knowledge-sharing 
opportunities between the FAA and aviation industry.

Section 342. Workforce review

    This section directs the Comptroller General of the United 
States to conduct a study to assess the workforce and training 
needs of the FAA's Office of Aviation Safety. This study will 
look at current hiring and training requirements for inspectors 
and engineers, and analyze the skills and qualifications of 
safety inspectors and engineers.

                   SUBTITLE E--INTERNATIONAL AVIATION

Section 351. Promotion of United States aerospace standards, products, 
        and services abroad

    This section directs the Administrator to take appropriate 
actions to promote United States aerospace standards abroad, to 
defend approvals of United States aerospace products and 
services abroad and to utilize bilateral safety agreements to 
improve validation of United States certified products.

Section 352. Bilateral exchanges of safety oversight responsibilities

    This section grants the Administrator the ability to accept 
an airworthiness directive necessary to provide for safe 
operation of aircraft issued by the aeronautical authority of a 
foreign country and leverage their regulatory process, if 
certain criteria are met. The section also allows for an 
alternative approval process and alternative means of 
compliance under certain circumstances.

Section 353. FAA leadership abroad

    The section directs the Administrator to promote United 
States aerospace safety standards abroad and to work with 
foreign governments to facilitate the acceptance of FAA 
approvals and standards internationally. The Administrator is 
directed to further assist American companies who have 
experienced significantly long foreign validation wait times 
and work with foreign governments to improve the timeliness of 
their acceptance of FAA validations and approvals. This section 
requires FAA to track and analyze the amount of time it takes 
foreign authorities to validate certificated aeronautical 
product types certified in the United States and establish 
benchmarks and metrics to reduce the validation times.

Section 354. Registration, certification, and related fees

    This section amends existing law by allowing the 
Administrator to establish and collect a fee from a foreign 
government or entity for certification services if the fee is 
consistent with aviation safety agreements and does not exceed 
the cost of the services.

                            Title IV--Safety


                     SUBTITLE A--GENERAL PROVISIONS

Section 401. FAA technical training

    Within 90 days of enactment, this section requires the 
Administrator to establish an e-learning training pilot program 
to provide technical training for FAA personnel on the latest 
aviation technologies, processes, and procedures. The section 
terminates the pilot program one year after establishment. 
After elimination of the pilot program, the FAA will establish 
a permanent e-Learning program that utilizes lessons learned 
from the pilot.

Section 402. Safety critical staffing

    This section directs the Administrator to update the FAA's 
safety critical staffing model within 270 days of the date of 
enactment and at least two years before the date of transfer. 
This section requires the DOT IG to conduct a study of the 
staffing model used by the FAA to determine the number of 
aviation safety inspectors that are needed to fulfill the 
mission of the FAA and adequately ensure aviation safety. 
Lastly, this section requires reports on the audit to both the 
Secretary and to Congress.

Section 403. International efforts regarding tracking of civil aircraft

    This section directs the Administrator to exercise 
leadership on creating a global approach to improve aircraft 
tracking by working with foreign counterparts in the ICAO, 
other international organizations, and the private sector.

Section 404. Aircraft data access and retrieval systems

    This section requires the FAA to initiate a study of 
aircraft data access and retrieval technologies for Part 121 
commercial aircraft used in extended overwater operations to 
determine if such technologies provide improved access and 
retrieval of the data in the event of an accident. A report to 
Congress is required not later than one year after initiation 
of the study.

Section 405. Advanced cockpit displays

    This section requires the FAA to review heads-up display 
systems, heads-down display systems employing synthetic vision 
systems, and enhanced vision systems and the impacts of single 
and dual installed heads-up systems within 180 days of 
enactment. A report to Congress is required no later than one 
year after enactment.

Section 406. Marking of towers

    This section includes a technical correction to section 
2110 of the FAA Extension, Safety and Security Act of 2016 to 
clarify that the term ``covered towers'' does not include 
towers located within the right-of-way of a rail carrier, 
including within the boundaries of a rail yard, and are used 
for railroad purposes. Furthermore, to ensure safety while 
providing flexibility to covered tower operators, section 2110 
is revised to allow covered tower operators or owners to either 
submit the tower's information into the database established in 
the section or mark the tower according to FAA marking 
requirements. This option does not apply to Meterological 
Evaluations Towers, which must be both marked in accordance 
with FAA marking requirements and entered into the database.

Section 407. Cabin evacuation

    This section requires the FAA, in consultation with 
National Transportation Safety Board and appropriate 
stakeholders, to review evacuation certification of transport 
category aircraft, including emergency conditions, crew 
procedures, relevant changes to passenger demographics, legal 
requirements that affect emergency evacuations, and recent 
accidents and incidents where passengers had to evacuate. The 
section also requires, not later than one year after the date 
of enactment, a report to be submitted to Congress on the 
results of the review and any associated recommendations.

Section 408. ODA staffing and oversight

    This section directs the Administrator to report to 
Congress no later than 270 days after enactment on its progress 
in implementing specific DOT IG recommendations regarding the 
FAA's staffing and oversight of ODA prior to the date of 
transfer. The section requires the report to contain the FAA's 
progress with respect to ensuring full ODA utilization 
authority prior to and after the date of transfer.

Section 409. Funding for additional safety needs

    This section allows the Administrator to accept funds from 
an applicant for a certificate in order to hire additional 
support staff or to obtain the services of consultants and 
experts to help streamline the review and issuance of 
certificates. This section outlines other policies and 
procedures to be implemented by the Administrator to ensure 
that the acceptance of funds does not prejudice the 
Administrator in the issuance of any certificate. The section 
contains a clause requiring that any funds accepted under the 
section shall be credited as offsetting collections.

Section 410. Funding for additional FAA licensing needs

    This section allows the Secretary to accept funds from a 
person applying for a license or permit in order to hire 
additional staff or to obtain the services of consultants or 
experts to help streamline the issuances of licenses or 
permits. It outlines policies and procedures to be implemented 
by the Secretary and contains a clause requiring that any funds 
accepted under the section shall be credited as offsetting 
collections.

Section 411. Emergency medical equipment on passenger aircraft

    This section directs the Administrator to evaluate and 
revise existing regulations on emergency medical equipment, and 
consider whether the minimum contents of approved medical kits 
on passenger aircraft meet the emergency needs of children.

Section 412. HIMS program

    This section authorizes the existing human intervention 
motivation study (HIMS) program for flight crewmembers employed 
by commercial air carriers operating in the United States.

Section 413. Acceptance of voluntarily provided safety information

    This section requires the FAA to automatically accept 
voluntary disclosures submitted under the Aviation Safety 
Action Program into the program even if they have not undergone 
a review by the event review committee. This requires a 
disclaimer be attached to the disclosure that states the 
disclosure has not gone through an event review committee. If 
the event review committee determines that the disclosure fails 
to meet criteria for acceptance, the disclosure will be 
rejected from the program.

Section 414. Flight attendant duty period limitations and rest 
        requirements

    This section directs the Administrator to revise the final 
rule issued on August 19, 1994, related to flight attendant 
duty period limitations and rest requirements. The revised rule 
must ensure that a flight attendant has at least a scheduled 
rest period of 10 consecutive hours, and that the rest period 
cannot be reduced under any circumstances. This section 
requires, within 90 days after enactment, all Part 121 air 
carriers to submit to the Administrator a fatigue risk 
management plan. The Administrator is required to review and 
accept or reject the fatigue risk management plan for each Part 
121 carrier. If the Administrator rejects a plan, the 
Administrator must provide modifications needed for the 
resubmission of the plan. Part 121 air carriers must update 
their fatigue risk management plans every two years and 
resubmit them to the Administrator. If a Part 121 air carrier 
violates this subsection, it shall be subject to civil 
penalties.

Section 415. Secondary cockpit barriers

    This section requires, not later than one year after the 
date of enactment, the Administrator to issue an order 
requiring the installation of a secondary cockpit barrier on 
all new passenger air carrier aircraft.

Section 416. Aviation maintenance industry technical workforce

    This section requires the Comptroller General to conduct a 
study and issue recommendations on aviation workforce data and 
workforce needs in the aviation maintenance sector. It also 
requires a report to Congress no later than one year after the 
date of enactment.

Section 417. Critical airfield markings

    This section requires a study on the durability of and use 
of Type III and Type I retroflective glass beads on airport 
runways.

                 SUBTITLE B--UNMANNED AIRCRAFT SYSTEMS

Section 431. Definitions

    This section sets forth definitions applicable to this 
subtitle.

Section 432. Codification of existing law; additional provisions

    This section amends existing law by inserting a new Chapter 
455, ``Unmanned Aircraft Systems'' (UAS) in order to codify 
UAS-related provisions included in the FAA Modernization and 
Reform Act of 2012 and to add several new UAS-related 
provisions to the Chapter. Chapter 455 contains the following 
provisions:
            Section 45501. Definitions
    This section codifies definitions from section 331 of the 
FAA Modernization and Reform Act of 2012 and adds new 
definitions for terms used in this chapter.
            Section 45502. Integration of civil UAS into national 
                    airspace system
    This section codifies portions of section 332 of the FAA 
Modernization and Reform Act of 2012 that require the Secretary 
to develop a comprehensive plan and roadmap for UAS 
integration. The provisions also require the Secretary to 
conduct a rulemaking relating to the operation of small UAS 
(sUAS) and to take actions to expand use of UAS in Arctic 
regions.
            Section 45503. Risk-Based permitting of UAS
    This section establishes a new basis for licensing any UAS 
and UAS operations not covered by regulations applicable to the 
operation of sUAS. This section sets forth permitting standards 
and certain criteria that the Administrator must consider in 
assessing applications, and provides the FAA with flexibility 
to waive certain statutory requirements if the operations will 
occur away from congested areas. The permits issued under this 
section will have a validity of five years. Further, 
applications for UAS operations related to disaster recovery 
and emergency preparedness would be handled on an expedited 
basis.
            Section 45504. Public UAS
    This section codifies section 334 of the FAA Modernization 
and Reform Act of 2012, which directs the Secretary to take 
steps to facilitate operations of UAS by government entities.
            Section 45505. Special rules for certain UAS
    This section codifies section 333 of the FAA Modernization 
and Reform Act of 2012, which directs the Secretary to 
determine if certain UAS may operate in the NAS. Assessment of 
the UAS operations will determine which types of UAS do not 
create a hazard to users of the NAS or to national security, 
and will determine whether a certificate of waiver or 
authorization of airworthiness is required. If the Secretary 
determines certain UAS may operate safely in the NAS, the 
Secretary shall establish requirements for the safe operation 
of such systems.
            Section 45506. Certification of new air navigation 
                    facilities for unmanned aircraft and other aircraft
    This section establishes a rulemaking process to develop 
standards for unmanned aircraft traffic management system (UTM) 
and other communication, navigation, and surveillance systems 
for low altitude airspace including expedited procedures to 
authorize operations posing very low risk. In the long-term, 
the Committee believes that use of UTM should facilitate more 
advanced operations of UAS including beyond visual line of 
sight and nighttime operations on a routine basis. The 
Committee also anticipates that operators could cite UTM use in 
support of applications for waiver from provisions of Part 107, 
title 14 Code of Federal Regulations and other authorizations. 
The Committee believes that the final rule promulgated pursuant 
to this section will, in the long-run, result in comprehensive 
authorizations for the use of UTM in a variety of scenarios. 
The criteria for these rules are intended to facilitate safe 
operation of UAS and interoperability with air traffic control 
and other systems used in the National Airspace.
            Section 44507. Special rules for certain UTM and low 
                    altitude Communication, Navigation, Surveillance
    This section establishes a process for the FAA to approve 
certain UTM and low altitude Communication, Navigation, and 
Surveillance prior to the completion of the rulemaking required 
under section 45506. This section requires the FAA to create 
expedited procedures for approving systems operated in airspace 
above croplands and other areas in which the operation of 
unmanned aircraft pose very low risk. The Committee believes 
that the operators and the FAA could use the authority of 
section 45507 in the near-term to begin use of UTM to enhance 
operations of UAS, such as beyond visual line of sight flights 
and nighttime flights, on a routine basis. The knowledge and 
experience gained under this section will inform, and 
ultimately improve, the FAA's regulatory framework for UTM and 
UAS in the long-term, including the rules required under 
section 45506. Furthermore, the Committee believes that 
advanced operations and uses of UTM should be authorized on an 
expedited basis in airspace above croplands and other such 
areas in which the risks to persons and property is very low. 
Croplands and other agricultural areas are often sparsely 
inhabited or uninhabited expanses of land and the airspace 
above may be ideal for demonstrating the potential of UTM to 
facilitate advanced operations of UAS. The Committee notes 
that, in certain cases, airspace above such lands may be used 
by manned aviation operators. In such cases, the Committee 
expects that the FAA will take any necessary measures to ensure 
aviation safety. The knowledge formed and experience gained in 
authorizing and conducting such operations in these areas will 
enable government and industry to work towards use of UAS and 
UTM in more complex operating environments. The Committee also 
anticipates that operators could cite UTM use in support of 
applications for waiver from provisions of Part 107, title 14 
Code of Federal Regulations and other authorizations.
            Section 45508. Operation of small unmanned aircraft
    This section establishes a streamlined process for the FAA 
to permit the operation of sUAS used for aerial data collection 
prior to the agency's completion of the rulemaking for such 
aircraft. Aerial data collection includes applications such as 
imaging, measurement, and other forms of sensing.
            Section 45509. Special rules for model aircraft
    This section codifies, in part, section 336 of the FAA 
Modernization and Reform Act of 2012, which establishes 
criteria under which an aircraft may be operated as a model 
aircraft under certain conditions. It also allows certain 
qualified not-for-profit organizations to receive payment for 
instruction in the flight of model aircraft. The section 
includes conforming amendments, specifically provisions that 
would allow the FAA to assess civil penalties for violations 
under chapter 455. The section allows the FAA to require 
aircraft registration. The section clarifies that current 
certification processes will remain available pending 
completion of the air carrier rulemaking.
            Section 45510. Carriage of property for compensation or 
                    hire
    This section requires the Secretary to issue a final rule 
authorizing sUAS operators to carry property for compensation 
or hire within the United States. This section requires the 
Administrator to establish the sUAS air carrier certificate, 
establish a streamlined, performance-based, and risk-based 
certification process, and create a sUAS air carrier 
classification, all for the purposes of carriage of property 
for compensation or hire.
            Section 45511. Micro UAS operations
    This section charters an aviation rulemaking committee to 
develop recommendations for regulations under which any person 
may operate a micro unmanned aircraft system. It also requires 
the Secretary to charter the advisory committee no later than 
60 days after the date of enactment. Additionally, it requires 
the Secretary, no later than 180 days after receiving the 
recommendations, to issue regulations regarding the 
recommendations of the rulemaking committee.

Section 433. Unmanned aircraft test ranges

    This section includes several provisions relating to UAS 
test ranges established by the FAA Modernization and Reform Act 
of 2012, and extends the authorization of the test ranges for 
six years. This section directs the Administrator to permit the 
operation of aircraft equipped with sense-and-avoid and beyond 
line of sight technologies at the test ranges and, in 
furtherance of that objective, provides the Administrator the 
ability to waive certain statutory requirements.

Section 434. Sense of Congress regarding unmanned aircraft safety

    This section expresses the concern of Congress about the 
safety risks caused by unauthorized operation of UAS in 
proximity to airports and the safety risks of potential 
collisions between UAS and conventional passenger aircraft. It 
further expresses Congress' sense that the FAA should take 
measures to reduce such risks through enforcement actions and 
educational initiatives.

Section 435. UAS privacy review

    This section directs the Secretary to conduct a study to 
identify potential reductions in privacy caused specifically by 
UAS. It also directs the Secretary to consider the efforts led 
by and consult with the National Telecommunications and 
Information Administration relating to privacy and UAS 
integration. Additionally, the section requires the Secretary 
to submit a report to Congress on the study's findings within 
six months of enactment of this Act.

Section 436. Public UAS operations by tribal governments

    This section allows certain tribal governments to operate 
unmanned aircraft as public aircraft.

Section 437. Evaluation of aircraft registration for small unmanned 
        aircraft

    This section directs the Administrator to develop metrics, 
assess compliance and effectiveness of the agency's Interim 
Final Rule entitled ``Registration and Marking Requirements for 
Small Unmanned Aircraft. (80 Fed. Reg. 78,593). It directs the 
DOT IG to evaluate the Administration's progress in developing 
these metrics and also the reliability, effectiveness and 
efficiency of the program, and provide a report to Congress.

Section 438. Study on roles of governments relating to low-altitude 
        operation of small unmanned aircraft

    This section requires the DOT IG to study and report to 
Congress on the regulation of low-altitude operations of small 
unmanned aircraft and the appropriate roles and 
responsibilities of federal, state, local, and tribal 
governments in regulating such activity. It also requires the 
DOT IG to consider various factors including recommendations of 
the Drone Advisory Committee, the interests of various 
jurisdictions, the interests of industry, and other factors.

Section 439. Study on financing of unmanned aircraft services

    This section requires the Comptroller General to study 
appropriate fee mechanisms to recover the costs of the FAA 
regulation and oversight of unmanned aircraft. It requires the 
Comptroller General to consider a number of factors including 
resources necessary for safe unmanned aircraft operations and 
best practices or policies of other countries. The section 
requires the Comptroller General to report to Congress.

Section 440. Update of FAA comprehensive plan

    This section requires the FAA to update the comprehensive 
plan required by the FAA Modernization and Reform Act of 2012 
to include a concept of operations addressing unlawful or 
harmful operations of unmanned aircraft.

Section 441. Cooperation related to certain counter-UAS technology

    This section requires the Secretary to consult with the 
Secretary of Defense on matters related to the deployment of 
counter-UAS in the NAS by drawing upon the expertise and 
experience of the DOD.

                   Title V--Air Service Improvements


           SUBTITLE A--AIRLINE CUSTOMER SERVICE IMPROVEMENTS

Section 501. Reliable air service in American Samoa

    This section requires the Secretary to review the emergency 
air transportation by foreign carriers exemption, in the case 
of sustaining air transportation between the Islands of Tutuila 
and Manu'a in American Samoa, every 180 days instead of every 
30 days.

Section 502. Cell phone voice communication ban

    This section directs the Secretary to issue regulations 
prohibiting an individual on an aircraft from using a cell 
phone during a domestic scheduled passenger flight, with 
exemptions applying to any member of the flight crew or flight 
attendant on duty on an aircraft, as well as federal law 
enforcement acting in an official capacity.

Section 503. Advisory Committee for Aviation Consumer Protection

    This section adds independent distributors of travel to the 
Advisory Committee for Aviation Consumer Protection created 
under the FAA Modernization and Reform Act of 2012 and extends 
it through fiscal year 2023.

Section 504. Improved notification of insecticide use

    This section requires that air carriers disclose to 
passengers whether a country with which they are booking a 
ticket to may treat the aircraft with insecticide or apply an 
aerosol insecticide when the cabin is occupied with passengers.

Section 505. Advertisements and disclosure of fees for passenger air 
        transportation

    This section states that it is not an unfair and deceptive 
practice for an air carrier to post the base airfare for air 
transportation in an advertisement or solicitation if the 
additional taxes, fees, and total cost of the air 
transportation are disclosed clearly to the consumer via a link 
on the air carrier's website. The section requires the 
Secretary to issue a final regulation no later than four months 
after the date of enactment. It also makes it an unfair and 
deceptive practice to fail to disclose additional fees for 
checked or carry-on baggage in a link when providing an 
internet fare quotation to a consumer.

Section 506. Involuntarily bumping passengers after aircraft boarded

    This section amends existing law by making it an unfair and 
deceptive practice to involuntarily deplane a revenue 
passenger, who is traveling on a confirmed reservation, and 
checked-in prior to the check-in deadline of the flight, after 
they have boarded the aircraft.

Section 507. Availability of consumer rights information

    This section requires air carriers to post customer service 
and consumer information on the homepage of the air carrier's 
website.

Section 508. Consumer complaints hotline

    This section requires the Secretary to evaluate the 
benefits of mobile phone applications or other technologies and 
to utilize such technologies to supplement the consumer 
complaints hotline established under the FAA Modernization and 
Reform Act of 2012.

Section 509. Widespread disruptions

    This section adds a new section to existing law to require 
air carriers, in the event of a widespread disruption, to 
immediately publish on their website whether or not the air 
carrier will provide accommodations and other amenities for 
impacted passengers. The term ``widespread disruption'' is 
defined in the section.

Section 510. Involuntarily denied boarding compensation

    This section requires the Secretary, no later than 60 days 
after the date of enactment, to issue a final rule clarifying 
current regulation with respect to compensation offered in the 
event of an involuntary denied boarding of a revenue passenger.

Section 511. Consumer information on actual flight times

    This section directs the Secretary to conduct a study on 
the feasibility and advisability of modifying regulations 
regarding the actual wheels off and wheels on times for 
reportable flights. Requires a report to Congress no later than 
one year after the date of enactment.

Section 512. Advisory committee for transparency in air ambulance 
        industry

    This section establishes an advisory committee to improve 
transparency among air ambulances in a variety of ways and 
requires the advisory committee to produce recommendations on 
various methodologies to be included in a report to Congress. 
When appointing federal agency representatives, the Secretary 
may consider a representative from the Department of Health and 
Human Services and the Medicare Payment Advisory Commission. 
The section also requires the Secretary to issue a final rule 
on any recommendations on the disclosure of charges.

Section 513. Air ambulance complaints

    This section amends existing law to include air ambulance 
operators in the scope of certain consumer protection laws and 
to enable consumers to report alleged unfair and deceptive 
practices by air ambulances to the Secretary.

Section 514. Passenger rights

    This section requires air carriers to submit to the 
Secretary a one-page document outlining the rights of 
passengers. The document shall include the various forms of 
compensation in the event of flight delays and cancellations, 
compensation for mishandled or lost baggage, voluntary denied 
boarding practices due to overbooking, and involuntary denied 
boarding practices. This document will be made available on the 
air carrier's website.

            SUBTITLE B--AVIATION CONSUMERS WITH DISABILITIES

Section 541. Select subcommittee

    This section establishes a Select Subcommittee for Aviation 
Consumers with Disabilities to the Advisory Committee for 
Aviation Consumer Protection that was created by the FAA 
Modernization and Reform Act of 2012. The Select Subcommittee 
will advise the Secretary on issues related to air travel for 
consumers with disabilities and will be comprised of members 
appointed by the Secretary from national disability 
organizations, air carriers and foreign air carriers, airport 
operators, and contract service providers. This section 
requires both a report to the Advisory Committee and a report 
to Congress.

Section 542. Aviation consumers with disabilities study

    This section requires the Comptroller General to complete a 
study reviewing accessibility best practices for individuals 
with disabilities, specifically those recommended under the 
Architectural Barriers Act of 1960, the Rehabilitation Act of 
1973, the Air Carrier Access Act of 1986, and the Americans 
with Disabilities Act of 1990. This section also requires a 
report to be submitted no later than one year after the date of 
enactment to the Secretary and to Congress with findings and 
recommendations.

Section 543. Feasibility study on in-cabin wheelchair restraint systems

    This section requires the Secretary, no later than two 
years after enactment, to conduct a study on the feasibility of 
in-cabin wheelchair restraint systems and other ways air travel 
consumers with disabilities can be safely accommodated within 
them. It also requires the feasibility study to be done in 
consultation with the Architectural and Transportation Barriers 
Compliance Board, aircraft manufacturers, and air carriers, and 
requires a report no later than one year after the completion 
of the study.

Section 544. Access advisory committee recommendations

    This section directs the Secretary to issue a notice of 
proposed rulemaking addressing accommodations for travelers 
with disabilities, specifically with respect to accommodations 
for in-flight entertainment, accessible lavatories on single-
aisle aircraft, and service animals, and requires the Secretary 
to issue a final rule no later than one year thereafter.

                SUBTITLE C--SMALL COMMUNITY AIR SERVICE

Section 551. Essential Air Service authorization

    This section authorizes the Essential Air Service Program 
(EAS) at the following levels: $178 million for fiscal year 
2018; $182 million for fiscal year 2019; $185 million for 
fiscal year 2020; $327 million for fiscal year 2021; $337 
million for fiscal year 2022; and $347 million for fiscal year 
2023.

Section 552. Extension of final order establishing mileage adjustment 
        eligibility

    This section extends the effectiveness of a statutory 
clarification that the most commonly used route between an 
eligible place and the nearest medium or large hub airport is 
to be measured by highway mileage when reviewing any action to 
eliminate compensation for EAS to such place, or to terminate 
the location's compensation eligibility for such service.

Section 553. Study on essential air service reform

    This section requires the Comptroller General to conduct a 
report on the effectiveness and budgetary savings of reforms 
made to the EAS program over the past five years, and requires 
that the report contain options for further reform of the 
program.

Section 554. Small Community Air Service

    This section allows any airport that is a small hub or 
smaller to apply for a grant under the Small Community Air 
Service Development Program (SCASDP). Additionally, it directs 
the Secretary to give special consideration to communities 
seeking to restore scheduled air service that has been 
terminated. This section authorizes the appropriation for the 
SCASDP of $10 million in fiscal year 2018 through fiscal year 
2023, of which $4.8 million each year is made available for a 
new Regional Air Transportation Pilot Program. The pilot 
program will focus on establishing or reestablishing air 
service to communities that have experienced declines in 
service. Allows communities to reapply for SCASDP grants after 
10 years.

Section 555. Air Transportation to Noneligible Places

    This section amends existing law to extend the definition 
of what constitutes an ``eligible place'' to receive small 
community air service funding through the FAA Extension, 
Safety, and Security Act of 2016. This section also terminates 
the Air Transportation to Noneligible Places program two years 
after the date of enactment of the subsection.

                        Title VI--Miscellaneous


Section 601. Review of FAA strategic cybersecurity plan

    Not later than 120 days after the interim CEO of the 
Corporation is hired, the Administrator, in consultation with 
the interim CEO, is directed to conduct a review of the 
aviation cybersecurity framework that was developed as part of 
the FAA Extension, Safety and Security Act of 2016 (P.L. 114-
190). In conducting the review, the Administrator is tasked 
with considering how the framework should be updated to reflect 
the transfer of operational control of air traffic services 
from the FAA to the Corporation. This section requires a report 
to Congress no later than 120 days after the review is 
initiated.

Section 602. Consolidation and realignment of FAA services and 
        facilities

    This section amends section 804 of the FAA Modernization 
and Reform Act of 2012 by clarifying the input the 
Administrator should receive in preparing a National Facilities 
Realignment and Consolidation Report. Notwithstanding new 
section 90317(c), it directs the Secretary to continue to carry 
out any consolidation or realignment project commenced under 
Section 804.

Section 603. FAA review and reform

    This section requires the FAA to complete a report on 
actions the agency has taken to implement reforms to eliminate 
wasteful, inefficient, or redundant practices, procedures, or 
positions as required by section 812 of the FAA Modernization 
and Reform Act of 2012. Requires the FAA to conduct an 
additional review to identify additional wasteful, inefficient, 
or redundant practices, procedures, or positions in need of 
reform.

Section 604. Aviation fuel

    This section directs the Administrator to allow the use of 
qualified unleaded aviation gasoline in aircraft as a 
replacement for leaded gasoline, and identifies the aircraft 
and engines that are eligible to use the qualified replacement 
unleaded gasoline. It adopts a process that allows eligible 
aircraft and engines to operate safely with the qualified 
replacement unleaded gasoline. This section expresses that it 
is the Sense of Congress that the Piston Aviation Fuels 
Initiative of the Administration, in collaboration with the 
American Society for Testing and Materials, should work to find 
an appropriate unleaded fuel by January 1, 2023.

Section 605. Right to privacy when using air traffic control system

    This section ensures that the aircraft owners will continue 
to be able to request that their aircraft registration 
information not be publicly displayed in the Aircraft 
Situational Display.

Section 606. Air shows

    This section encourages the Administrator to work on an 
annual basis with airshows, GA communities, stadiums, and other 
large outdoor events and venues to identify and resolve 
scheduling conflicts between approved air shows and large 
outdoor events that have temporary flight restrictions imposed.

Section 607. Part 91 review, reform, and streamlining

    This section directs the FAA to establish a Task Force 
comprised of GA aircraft owners, operators, labor, and 
government representatives. The Task Force will assess the 
oversight and authorization processes and requirements for 
aircraft under Part 91, title 14, Code of Federal Regulations, 
and make recommendations to streamline the processes and reduce 
regulatory cost burdens and delays. The section sunsets the 
program on the day the report is submitted to Congress. The 
Administrator is directed to implement the recommendations of 
the Task Force.

Section 608. Aircraft registration

    This section directs the Administrator to initiate a 
rulemaking to increase the duration of registration for 
noncommercial GA aircraft to 10 years.

Section 609. Air transportation of lithium cells and batteries

    This section directs the Secretary, in coordination with 
appropriate federal agencies, to carry out cooperative efforts 
to ensure shippers of lithium ion and lithium metal batteries 
for air transport comply with ICAO Technical Instructions and 
Hazardous Material Regulations in the United States and work 
with appropriate federal agencies and international partners to 
ensure enforcement of existing applicable regulations. The 
section establishes the Lithium Ion Battery Safety Advisory 
Committee to facilitate communications between manufacturers of 
lithium ion cells and batteries, manufacturers whose products 
incorporate such batteries, and the federal government on the 
effectiveness and economic impacts of regulation of the 
transportation of lithium ion cells and batteries. This section 
requires a review of best practices for safe transportation of 
these batteries and how to reduce the risk and safety threats 
posed by the air transportation of undeclared hazardous 
materials. The Advisory Committee will be comprised of industry 
and government representatives appointed by the Secretary and 
will terminate six years after the Committee has been 
established.
    This section also directs the Secretary, in consultation 
with interested stakeholders, to submit to appropriate 
Congressional Committees an evaluation of current practices for 
packaging of lithium ion batteries and cells and any 
suggestions to improve the packaging in a safe, efficient, and 
cost effective manner. This section directs the Secretary to 
harmonize the regulations of the United States regarding air 
transport of lithium cells and batteries with ICAO technical 
standards. It additionally directs the Secretary to issue a 
limited exception on the restriction of the air transportation 
of medical device batteries with specific parameters. Lastly, 
this section establishes a policy for the DOT to support the 
participation of industry in working groups associated with 
ICAO addressing the safe air transportation of these batteries.

Section 610. Remote tower pilot program for rural or small communities

    This section directs the Secretary to establish a remote 
ATC tower pilot program to assess the benefits of such towers. 
This section sets forth the criteria the Secretary, after 
consultation with representatives of labor organizations 
representing employees of the ATC system, must use in the 
selection of sites where remote towers will be installed. The 
section additionally directs the Secretary to convene safety 
risk management panels for each remote tower site to review 
best practices that have already been developed and to analyze 
operational data from remote towers. This section requires that 
the pilot program established be eligible for airport 
improvement funding and that the Secretary establish a 
repeatable process to help expand the program.

Section 611. Ensuring FAA readiness to provide seamless oceanic 
        operations

    No later than September 30, 2018, this section requires the 
Secretary to make a final investment decision on the 
implementation of a reduced oceanic separation capability that 
shall be operational by March 31, 2019.

Section 612. Sense of Congress regarding women in aviation

    This section expresses the Sense of Congress on the 
importance of the aviation industry encouraging and supporting 
women pursuing careers in aviation.

Section 613. Obstruction evaluation aeronautical studies

    This section requires the Secretary to pursue adoption of 
the proposed policy titled ``Proposal to Consider the Impact of 
One Engine Inoperative Procedures in Obstruction Evaluation 
Aeronautical Studies'' only if the policy is treated as a 
significant regulatory action pursuant to Executive Order 
12866.

Section 614. Aircraft leasing

    This section clarifies existing law to say an aircraft 
lessor is only liable for losses and damages when the aircraft 
is in operational control of said lessor.

Section 615. Report on obsolete test equipment

    This section requires the Administrator to submit a report 
on the National Test Equipment Program of the FAA to identify 
obsolete test equipment and provide a plan to replace that 
equipment no later than 180 days after the date of enactment.

Section 616. Retired military controllers

    This section amends the current statutory hiring process 
for air traffic controllers. It directs the Administrator to 
establish a program that enables military controllers to be 
considered for an original appointment to an air traffic 
controller position when the individual: (1) is on terminal 
leave pending retirement from active duty military or retired 
from active duty military service within five years of applying 
to the air traffic controller position; and (2) within five 
years of applying to the air traffic controller position, has 
held either an air traffic control specialist certification or 
a facility rating.

Section 617. Pilots sharing flight expenses with passengers

    This section requires the Secretary to issue advisory 
guidance on how pilots can share flight expenses with other 
passengers within the parameters of existing federal law.

Section 618. Aviation rulemaking committee for Part 135 pilot rest and 
        duty rules

    This section establishes an aviation rulemaking committee 
(ARC), which will be comprised of industry representatives, 
labor organizations, and safety experts, to review and provide 
recommendations on pilot rest and duty rules for Part 135 
operations. It requires the Administrator to submit a report on 
it findings and issue a notice of proposed rulemaking based on 
the consensus recommendations of the ARC not later than one 
year after submittal of the report to Congress. Because the men 
and women who operate aircraft in this environment are most 
affected by these rules on a day-to-day basis and have the most 
direct knowledge of the limitations of current rules, the 
Committee believes such an evaluation should include the 
participation of Part 135/91k pilot labor from the largest 
private aviation operator in the world.

Section 619. Metropolitan Washington Airports Authority

    This section directs the DOT IG to conduct a study of the 
Metropolitan Washington Airports Authority (MWAA) to determine 
if MWAA has adopted previous DOT IG recommendations regarding 
MWAA's Office of Audit.

Section 620. Terminal aerodrome forecast

    This section directs the FAA to allow a Part 121 air 
carrier operating in a noncontiguous state to conduct 
operations to a destination in a noncontiguous state if certain 
operational weather requirements are met. This section 
clarifies flight rules for a non-contiguous state to ensure 
Alaska receives available weather information, and intends that 
without a written finding of necessity, based on objective 
evidence of imminent threat to safety, the Administrator shall 
not promulgate any Operation Specification, Policy or Guidance 
Document that is more restrictive or requires procedures which 
are not expressly stated in the regulations. Furthermore, when 
operating in Alaska it is the intent of this provision to 
include a variety of weather sources, including Modulated 
Automated Weather Systems, when determining a visual flight 
rule forecast for an airport or landing area in Alaska. Lastly, 
it clarifies flight rules for a non-contiguous state to ensure 
operators receive available weather information.

Section 621. Federal Aviation Administration employees stationed on 
        Guam

    This section states the Sense of Congress that the 
Administrator and the Secretary of Defense should seek an 
agreement that would enable FAA employees stationed on Guam to 
have access to DOD hospitals, commissaries, and exchanges in 
Guam.

Section 622. Technical corrections

    This section makes technical corrections to several 
provisions contained in the FAA Modernization and Reform Act of 
2012 and title 49, United States Code.

Section 623. Application of Veterans' Preference to Federal Aviation 
        Administration Personnel Management System

    This section applies title 5 veterans' hiring preference to 
the FAA.

Section 624. Public aircraft eligible for logging flight times

    This section directs the Administrator to update current 
regulations for logging of flight time to include aircraft 
under operational control of forest fire protection agencies.

Section 625. Federal Aviation Administration workforce review

    This section requires the Comptroller General to conduct a 
review and develop recommendations to assess the long-term 
workforce and training needs of the FAA. It additionally 
requires that the review be conducted no later than 120 days 
after the date of enactment, and requires a report to Congress 
on the recommendations no later than 270 days after the date of 
enactment.

Section 626. State taxation

    This section clarifies existing law to ensure non-generally 
applied taxes and fees generated at airports are wholly used 
for airport or aeronautical purposes.

Section 627. Aviation and aerospace workforce of the future

    This section expresses the Sense of Congress on how 
important it is to ensure the prevalence of programs and career 
pathway initiatives leading to employment in the aviation 
sector.

Section 628. Future Aviation and Aerospace workforce study

    This section requires the Comptroller General to conduct a 
study on various factors and best practices influencing the 
supply of young individuals in the aviation and aerospace 
industry. Additionally, it requires the study be conducted no 
later than 90 days after the date of enactment and that a 
report be submitted to Congress no later than one year after 
the date of enactment.

Section 629. FAA Leadership on Civil Supersonic Aircraft

    This section requires the FAA to exercise leadership and 
produce a report to Congress on the development of civil 
supersonic aircraft. Additionally, it requires the 
Administrator to submit the report to Congress no later than 
one year after the date of enactment.

Section 630. Oklahoma registry office

    This section directs the Administrator to consider the 
FAA's aircraft registry office located in Oklahoma City, 
Oklahoma, as excepted during a government shutdown or emergency 
to ensure it remains open.

Section 631. Foreign Air Transportation Under United States--European 
        Union Air Transport Agreement

    This section ensures that permits or exemptions issued by 
the Secretary to foreign air carriers do not undermine any 
labor standards and prevent market entry into the United States 
by ``flag of convenience carriers.'' If an interested person 
raises the applicability of Article 17 bis of the United 
States-European Union Air Transport Agreement of 2007, the 
Secretary would be prohibited from issuing a foreign air 
carrier permit or exemption unless the Secretary finds issuance 
would be consistent with Article 17 bis, and imposes additional 
conditions on such permit or exemption to ensure compliance 
with Article 17 bis. Also, the section adds to the necessary 
required findings before the Secretary may issue a permit to a 
foreign air carrier from any jurisdiction.

Section 632. Training on human trafficking for certain staff

    This section extends existing training requirements 
regarding human trafficking for flight attendants to other 
frontline airline personnel. The personnel in this section 
includes ticket counter agents, gate agents, and other 
employees who engage in regular interaction with passengers.

Section 633. Part 107 Implementation improvements

    This section gives the Administrator the authority to grant 
a waiver to operate beyond visual line of sight, over people, 
or at night for the purposes of transporting property. It 
requires the Secretary to publish a direct final rule on the 
expansion of waiver authority no later than 30 days after the 
date of enactment.

Section 634. Part 107 Transparency and technology improvements

    This section requires FAA to publish information on 
approved small UAS waivers and airspace authorizations and 
provide real time data on application status.

Section 635. Prohibitions against smoking on passenger flights

    This section amends the statutory definition of smoking to 
ban the use of e-cigarettes on commercial aircraft.

Section 636. Consumer protection requirements relating to large ticket 
        agents

    This section requires the Secretary to issue a final rule, 
no later than 90 days after the date of enactment, requiring 
large ticket agents to adopt minimum customer service 
standards. These standards include, issuing refunds for 
optional fees, disclosing policies on cancellation, and 
notifying passenger of itinerary changes, among others. This 
section defines the term ``large ticket agent'' to mean a 
ticket agent with an annual revenue of $100,000,000.00 or more.

Section 637. Agency procurement reporting requirements

    This section requires the Secretary to submit a report on 
the value of acquisitions made by the agency from entities that 
manufacture supplies outside of the United States. The report 
is required to indicate the dollar value of any materials or 
supplies purchased that were manufactured outside the United 
States as well as a summary of the total procurement of funds 
spent on said goods compared to goods manufactured in the 
United States. The report is required no later than 90 days 
after the end of the fiscal year.

Section 638. Zero-emission vehicles and technology

    This section reforms the FAA's Voluntary Airport Low 
Emissions and Zero Emissions Vehicle Programs and clarifies 
that airports have the option to use AIP or PFCs to fund 
projects under those programs.

Section 639. Employee assault prevention and response plans

    This section requires Part 121 air carriers, in 
collaboration with the FAA, to establish employee assault 
prevention and response plans. This section requires the plans 
to be developed in consultation with the labor union 
representing customer service agents. The section also directs 
that the plans include reporting protocols for customer service 
agents who have been assaulted, for notifying law enforcement, 
and for informing federal law enforcement of certain 
violations.

Section 640. Study on training of customer-facing air carrier employees

    This section requires the Secretary to conduct a study on 
training received by air carriers' customer-facing employees 
and take appropriate actions to address any shortcomings in the 
training by way of recommendations and, if determined 
appropriate, other supplemental training. Additionally, it 
requires the study to be conducted no later than 180 days after 
the date of enactment, and a report to Congress no later than 
one year thereafter.

Section 641. Minimum dimensions for passenger seats

    This section requires the FAA to issue regulations 
establishing minimum seat dimension standards on passenger 
aircraft for the health and safety of airline passengers. These 
regulations may only be established after a public notice and 
opportunity for comment period.

Section 642. Study on ground transportation options

    This section requires the Comptroller General to conduct a 
study on ground transportation options to and from major 
airports. The study should review the ground transportation 
options at various airports and determine whether or not it is 
appropriate to use AIP and PFC funds to address congestion 
issues to airports.

         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 (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 49, UNITED STATES CODE



 Subtitle                                                           Sec.
      Department of Transportation...................................101
     * * * * * * *
      American Air Navigation Services Corporation.................90101

SUBTITLE I--DEPARTMENT OF TRANSPORTATION

           *       *       *       *       *       *       *


CHAPTER 1--ORGANIZATION

           *       *       *       *       *       *       *


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, who 
shall be 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 Administration has a Deputy Administrator, who 
shall be appointed by the President. In making an appointment, 
the President shall consider the fitness of the appointee to 
efficiently carry out the duties and powers of the office. The 
Deputy Administrator shall 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) The annual rate of basic pay of the Deputy Administrator 
shall be set by the Secretary but shall not exceed the annual 
rate of basic pay payable to the Administrator of the Federal 
Aviation Administration.
  (3) 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.
  (4) 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, services, 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. On February 
                1 and August 1 of each year the Administrator 
                shall submit to the Committee on Transportation 
                and Infrastructure of the House of 
                Representatives and the Committee on Commerce, 
                Science, and Transportation of the Senate a 
                letter listing each deadline the Administrator 
                missed under this subparagraph during the 6-
                month period ending on such date, including an 
                explanation for missing the deadline and a 
                projected date on which the action that was 
                subject to the deadline will be taken.
                  (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 
                $250,000,000 or more (adjusted annually for 
                inflation beginning with the year following the 
                date of the enactment of the Wendell H. Ford 
                Aviation Investment and Reform Act for the 21st 
                Century) 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 $250,000,000 or more or 
                        adversely affect in a substantial and 
                        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; or
                          (II) raise novel or significant legal 
                        or policy issues arising out of legal 
                        mandates that may substantially and 
                        materially affect other transportation 
                        modes.
                  (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), 40113(c), 40113(d), 40113(e), 
        40114(a), and 40119, chapter 445 (except sections 
        44501(b), 44502(a)(2), 44502(a)(3), 44502(a)(4), 44503, 
        44506, 44509, 44510, 44514, and 44515), chapter 447 
        (except sections 44717, 44718(a), 44718(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.--
          (1) Salaries, operations, and maintenance from 
        general fund._There is authorized to be appropriated to 
        the Secretary of Transportation for salaries, 
        operations, and maintenance of the Administration--
                  [(A) $9,653,000,000 for fiscal year 2012;
                  [(B) $9,539,000,000 for fiscal year 2013;
                  [(C) $9,596,000,000 for fiscal year 2014;
                  [(D) $9,653,000,000 for fiscal year 2015; and
                  [(E) $9,909,724,000 for each of fiscal years 
                2016 and 2017.]
                  (A) $2,059,000,000 for fiscal year 2018;
                  (B) $2,126,000,000 for fiscal year 2019;
                  (C) $2,197,000,000 for fiscal year 2020;
                  (D) $1,957,000,000 for fiscal year 2021;
                  (E) $2,002,000,000 for fiscal year 2022; and
                  (F) $2,047,000,000 for fiscal year 2023.
        Such sums shall remain available until expended.
          [(2) Authorized expenditures.--Out of amounts 
        appropriated under paragraph (1), the following 
        expenditures are authorized:
                  [(A) Such sums as may be necessary for fiscal 
                years 2012 through 2015 to carry out and expand 
                the Air Traffic Control Collegiate Training 
                Initiative.
                  [(B) Such sums as may be necessary for fiscal 
                years 2012 through 2015 for the completion of 
                the Alaska aviation safety project with respect 
                to the 3 dimensional mapping of Alaska's main 
                aviation corridors.
                  [(C) Such sums as may be necessary for fiscal 
                years 2012 through 2015 to carry out the 
                Aviation Safety Reporting System and the 
                development and maintenance of helicopter 
                approach procedures.]
          (2) Salaries, operations, and maintenance from 
        airport and airway trust fund.--There is authorized to 
        be appropriated to the Secretary out of the Airport and 
        Airway Trust Fund established under section 9502 of the 
        Internal Revenue Code of 1986 for salaries, operations, 
        and maintenance of the Administration--
                  (A) $8,073,000,000 for fiscal year 2018;
                  (B) $8,223,000,000 for fiscal year 2019; and
                  (C) $8,374,000,000 for fiscal year 2020.
          (3) Administering program within available funding.--
        Notwithstanding any other provision of law, in each of 
        [fiscal years 2012 through 2017] fiscal years 2018 
        through 2020, if the Secretary determines that the 
        funds appropriated under [paragraph (1)] paragraphs (1) 
        and (2) are insufficient to meet the salary, 
        operations, and maintenance expenses of the Federal 
        Aviation Administration, as authorized by this section, 
        the Secretary shall reduce nonsafety-related activities 
        of the Administration as necessary to reduce such 
        expenses to a level that can be met by the funding 
        available under [paragraph (1)] paragraphs (1) and (2)
  (l) Personnel and Services.--
          (1) Officers and employees.--Except as provided in 
        subsections (a) and (g) of section 40122, 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, with 
or without reimbursement, supplies, personnel, services, 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 and Air Traffic Services 
Board.--
          (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 13 
        members, who shall consist of--
                  (A) a designee of the Secretary of 
                Transportation;
                  (B) a designee of the Secretary of Defense;
                  (C) 10 members representing aviation 
                interests, appointed by--
                          (i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate, except that 
                        initial appointments made after May 1, 
                        2003, shall be made by the Secretary of 
                        Transportation; and
                          (ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation; and
                  (D) 1 member appointed, from among 
                individuals who are the leaders of their 
                respective unions of air traffic control system 
                employees, by the Secretary of Transportation.
          (3) Qualifications.--No officer or employee of the 
        United States Government may be appointed to the 
        Council under paragraph (2)(C) or to the Air Traffic 
        Services Committee.
          (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 or Air 
                Traffic Services Committee 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 or 
                Air Traffic Services Committee 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, the Air Traffic Services 
        Committee, or such aviation rulemaking committees as 
        the Administrator shall designate.
          (6) Administrative matters.--
                  (A) Terms of members appointed under 
                paragraph (2)(c).--Members of the Council 
                appointed under paragraph (2)(C) shall be 
                appointed for a term of 3 years. Of the members 
                first appointed by the President under 
                paragraph (2)(C)--
                          (i) 3 shall be appointed for terms of 
                        1 year;
                          (ii) 4 shall be appointed for terms 
                        of 2 years; and
                          (iii) 3 shall be appointed for terms 
                        of 3 years.
                  (B) Term for air traffic control 
                representative.--The member appointed under 
                paragraph (2)(D) shall be appointed for a term 
                of 3 years, except that the term of such 
                individual shall end whenever the individual no 
                longer meets the requirements of paragraph 
                (2)(D).
                  (C) Terms for Air Traffic Services Committee 
                members.--The members appointed to the Air 
                Traffic Services Committee shall be appointed 
                for a term of 5 years, except that the first 
                members of the Committee shall be the members 
                of the Air Traffic Services Subcommittee of the 
                Council on the day before the date of enactment 
                of the Vision 100--Century of Aviation 
                Reauthorization Act who shall serve in an 
                advisory capacity until such time as the 
                President appoints the members of the Committee 
                under paragraph (7).
                  (D) Reappointment.--An individual may not be 
                appointed to the Committee to more than two 5-
                year terms.
                  (E) Vacancy.--Any vacancy on the Council or 
                Committee shall be filled in the same manner as 
                the original appointment, except that any 
                vacancy caused by a member appointed by the 
                President under paragraph (2)(C)(i) shall be 
                filled by the Secretary in accordance with 
                paragraph (2)(C)(ii). Any member appointed to 
                fill a vacancy occurring before the expiration 
                of the term for which the member's predecessor 
                was appointed shall be appointed for the 
                remainder of that term.
                  (F) Continuation in office.--A member of the 
                Council or Committee whose term expires shall 
                continue to serve until the date on which the 
                member's successor takes office.
                  (G) Removal.--Any member of the Council 
                appointed under paragraph (2)(D) may be removed 
                for cause by the President or Secretary whoever 
                makes the appointment. Any member of the 
                Committee may be removed for cause by the 
                Secretary.
                  (H) Claims against members of Committee.--
                          (i) In general.--A member appointed 
                        to the Committee shall have no personal 
                        liability under Federal law with 
                        respect to any claim arising out of or 
                        resulting from an act or omission by 
                        such member within the scope of service 
                        as a member of the Committee.
                          (ii) Effect on other law.--This 
                        subparagraph shall not be construed--
                                  (I) to affect any other 
                                immunity or protection that may 
                                be available to a member of the 
                                Subcommittee under applicable 
                                law with respect to such 
                                transactions;
                                  (II) to affect any other 
                                right or remedy against the 
                                United States under applicable 
                                law; or
                                  (III) to limit or alter in 
                                any way the immunities that are 
                                available under applicable law 
                                for Federal officers and 
                                employees.
                  (I) Ethical considerations.--
                          (i) Financial disclosure.--During the 
                        entire period that an individual is 
                        serving as a member of the Committee, 
                        such individual shall be treated as 
                        serving as an officer or employee 
                        referred to in section 101(f) of the 
                        Ethics in Government Act of 1978 for 
                        purposes of title I of such Act; except 
                        that section 101(d) of such Act shall 
                        apply without regard to the number of 
                        days of service in the position.
                          (ii) Restrictions on post-
                        employment.--For purposes of section 
                        207(c) of title 18, an individual who 
                        is a member of the Committee shall be 
                        treated as an employee referred to in 
                        section 207(c)(2)(A)(i) of such title 
                        during the entire period the individual 
                        is a member of the Committee; except 
                        that subsections (c)(2)(B) and (f) of 
                        section 207 of such title shall not 
                        apply.
                  (J) 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.
                  (K) Travel and per diem.--Each member of the 
                Council or Committee 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.
                  (L) Detail of personnel from the 
                administration.--The Administrator shall make 
                available to the Council or Committee such 
                staff, information, and administrative services 
                and assistance as may reasonably be required to 
                enable the Council or Committee to carry out 
                its responsibilities under this subsection.
          (7) Air Traffic Services Committee.--
                  (A) Establishment.--The Administrator shall 
                establish a committee that is independent of 
                the Council by converting the Air Traffic 
                Services Subcommittee of the Council, as in 
                effect on the day before the date of enactment 
                of the Vision 100--Century of Aviation 
                Reauthorization Act, into such committee. The 
                committee shall be known as the Air Traffic 
                Services Committee (in this subsection referred 
                to as the ``Committee'').
                  (B) Membership and qualifications.--Subject 
                to paragraph (6)(C), the Committee shall 
                consist of five members, one of whom shall be 
                the Administrator and shall serve as 
                chairperson. The remaining members shall be 
                appointed by the President with the advice and 
                consent of the Senate and--
                          (i) shall have a fiduciary 
                        responsibility to represent the public 
                        interest;
                          (ii) shall be citizens of the United 
                        States; and
                          (iii) shall be appointed without 
                        regard to political affiliation and 
                        solely on the basis of their 
                        professional experience and expertise 
                        in one or more of the following areas 
                        and, in the aggregate, should 
                        collectively bring to bear expertise in 
                        all of the following areas:
                                  (I) Management of large 
                                service organizations.
                                  (II) Customer service.
                                  (III) Management of large 
                                procurements.
                                  (IV) Information and 
                                communications technology.
                                  (V) Organizational 
                                development.
                                  (VI) Labor relations.
                  (C) Prohibitions on members of Committee.--No 
                member of the Committee may--
                          (i) have a pecuniary interest in, or 
                        own stock in or bonds of, an aviation 
                        or aeronautical enterprise, except an 
                        interest in a diversified mutual fund 
                        or an interest that is exempt from the 
                        application of section 208 of title 18;
                          (ii) engage in another business 
                        related to aviation or aeronautics; or
                          (iii) be a member of any organization 
                        that engages, as a substantial part of 
                        its activities, in activities to 
                        influence aviation-related legislation.
                  (D) General responsibilities.--
                          (i) Oversight.--The Committee shall 
                        oversee the administration, management, 
                        conduct, direction, and supervision of 
                        the air traffic control system.
                          (ii) Confidentiality.--The Committee 
                        shall ensure that appropriate 
                        confidentiality is maintained in the 
                        exercise of its duties.
                  (E) Specific responsibilities.--The Committee 
                shall have the following specific 
                responsibilities:
                          (i) Strategic plans.--To review, 
                        approve, and monitor the strategic plan 
                        for the air traffic control system, 
                        including the establishment of--
                                  (I) a mission and objectives;
                                  (II) standards of performance 
                                relative to such mission and 
                                objectives, including safety, 
                                efficiency, and productivity; 
                                and
                                  (III) annual and long-range 
                                strategic plans.
                          (ii) Modernization and improvement.--
                        To review and approve--
                                  (I) methods to accelerate air 
                                traffic control modernization 
                                and improvements in aviation 
                                safety related to air traffic 
                                control; and
                                  (II) procurements of air 
                                traffic control equipment in 
                                excess of $100,000,000.
                          (iii) Operational plans.--To review 
                        the operational functions of the air 
                        traffic control system, including--
                                  (I) plans for modernization 
                                of the air traffic control 
                                system;
                                  (II) plans for increasing 
                                productivity or implementing 
                                cost-saving measures; and
                                  (III) plans for training and 
                                education.
                          (iv) Management.--To--
                                  (I) review and approve the 
                                Administrator's appointment of 
                                a Chief Operating Officer under 
                                section 106(r);
                                  (II) review the 
                                Administrator's selection, 
                                evaluation, and compensation of 
                                senior executives of the 
                                Administration who have program 
                                management responsibility over 
                                significant functions of the 
                                air traffic control system;
                                  (III) review and approve the 
                                Administrator's plans for any 
                                major reorganization of the 
                                Administration that would 
                                impact on the management of the 
                                air traffic control system;
                                  (IV) review and approve the 
                                Administrator's cost accounting 
                                and financial management 
                                structure and technologies to 
                                help ensure efficient and cost-
                                effective air traffic control 
                                operation; and
                                  (V) review the performance 
                                and compensation of managers 
                                responsible for major 
                                acquisition projects, including 
                                the ability of the managers to 
                                meet schedule and budget 
                                targets.
                          (v) Budget.--To--
                                  (I) review and make 
                                recommendations on the budget 
                                request of the Administration 
                                related to the air traffic 
                                control system prepared by the 
                                Administrator;
                                  (II) submit such budget 
                                recommendations to the 
                                Secretary; and
                                  (III) base such budget 
                                recommendations on the annual 
                                and long-range strategic plans.
                  (F) Committee personnel matters and 
                expenses.--
                          (i) Personnel matters.--The Committee 
                        may appoint and terminate for purposes 
                        of employment by the Committee any 
                        personnel that may be necessary to 
                        enable the Committee to perform its 
                        duties, and may procure temporary and 
                        intermittent services under section 
                        40122.
                          (ii) Travel expenses.--Each member of 
                        the Committee shall receive travel 
                        expenses, including per diem in lieu of 
                        subsistence, in accordance with 
                        applicable provisions under subchapter 
                        I of chapter 57 of title 5, United 
                        States Code.
                  (G) Administrative matters.--
                          (i) Powers of chair.--Except as 
                        otherwise provided by a majority vote 
                        of the Committee, the powers of the 
                        chairperson shall include--
                                  (I) establishing committees;
                                  (II) setting meeting places 
                                and times;
                                  (III) establishing meeting 
                                agendas; and
                                  (IV) developing rules for the 
                                conduct of business.
                          (ii) Meetings.--The Committee shall 
                        meet at least quarterly and at such 
                        other times as the chairperson 
                        determines appropriate.
                          (iii) Quorum.--Three members of the 
                        Committee shall constitute a quorum. A 
                        majority of members present and voting 
                        shall be required for the Committee to 
                        take action.
                  (H) Authorization.--There are authorized to 
                be appropriated to the Committee such sums as 
                may be necessary for the Committee to carry out 
                its activities.
                  (I) Sunset.--The Committee shall terminate 
                and this paragraph shall cease to be effective 
                beginning on the date of transfer (as defined 
                in section 90101(a)).
          (8) Air traffic control system defined.--In this 
        section, the term ``air traffic control system'' has 
        the meaning such term has under section 40102(a).
          (9) Sunset of air traffic advisory role.--Beginning 
        on the date of transfer (as defined in section 
        90101(a)), the Council shall not develop or submit 
        comments, recommended modifications, or dissenting 
        views directly regarding the American Air Navigation 
        Services Corporation or air traffic services.
  (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.
  (r) Chief Operating Officer.--
          (1) In general.--
                  (A) Appointment.--There shall be a Chief 
                Operating Officer for the air traffic control 
                system to be appointed by the Administrator, 
                with the approval of the Air Traffic Services 
                Committee. The Chief Operating Officer shall 
                report directly to the Administrator and shall 
                be subject to the authority of the 
                Administrator.
                  (B) Qualifications.--The Chief Operating 
                Officer shall have a demonstrated ability in 
                management and knowledge of or experience in 
                aviation.
                  (C) Term.--The Chief Operating Officer shall 
                be appointed for a term of 5 years.
                  (D) Removal.--The Chief Operating Officer 
                shall serve at the pleasure of the 
                Administrator, except that the Administrator 
                shall make every effort to ensure stability and 
                continuity in the leadership of the air traffic 
                control system.
                  (E) Vacancy.--Any individual appointed to 
                fill a vacancy in the position of Chief 
                Operating Officer occurring before the 
                expiration of the term for which the 
                individual's predecessor was appointed shall be 
                appointed for the remainder of that term.
          (2) Compensation.--
                  (A) In general.--The Chief Operating Officer 
                shall be paid at an annual rate of basic pay to 
                be determined by the Administrator, with the 
                approval of the Air Traffic Services Committee. 
                The annual rate may not exceed the annual 
                compensation paid under section 102 of title 3. 
                The Chief Operating Officer shall be subject to 
                the post-employment provisions of section 207 
                of title 18 as if the position of Chief 
                Operating Officer were described in section 
                207(c)(2)(A)(i) of that title.
                  (B) Bonus.--In addition to the annual rate of 
                basic pay authorized by subparagraph (A), the 
                Chief Operating Officer may receive a bonus for 
                any calendar year not to exceed 30 percent of 
                the annual rate of basic pay, based upon the 
                Administrator's evaluation of the Chief 
                Operating Officer's performance in relation to 
                the performance goals set forth in the 
                performance agreement described in paragraph 
                (3).
          (3) Annual performance agreement.--The Administrator 
        and the Chief Operating Officer, in consultation with 
        the Air Traffic Services Committee, shall enter into an 
        annual performance agreement that sets forth measurable 
        organization and individual goals for the Chief 
        Operating Officer in key operational areas. The 
        agreement shall be subject to review and renegotiation 
        on an annual basis.
          (4) Annual performance report.--The Chief Operating 
        Officer shall prepare and transmit to the Secretary of 
        Transportation, the Committee on Transportation and 
        Infrastructure of the House of Representatives, and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate an annual management report containing such 
        information as may be prescribed by the Secretary.
          (5) Responsibilities.--The Administrator may delegate 
        to the Chief Operating Officer, or any other authority 
        within the Administration responsibilities, including 
        the following:
                  (A) Strategic plans.--To implement the 
                strategic plan of the Administration for the 
                air traffic control system in order to 
                further--
                          (i) a mission and objectives;
                          (ii) standards of performance 
                        relative to such mission and 
                        objectives, including safety, 
                        efficiency, and productivity;
                          (iii) annual and long-range strategic 
                        plans; and
                          (iv) methods of the Administration to 
                        accelerate air traffic control 
                        modernization and improvements in 
                        aviation safety related to air traffic 
                        control.
                  (B) Operations.--To oversee the day-to-day 
                operational functions of the Administration for 
                air traffic control, including--
                          (i) modernization of the air traffic 
                        control system;
                          (ii) increasing productivity or 
                        implementing cost-saving measures;
                          (iii) training and education; and
                          (iv) the management of cost-
                        reimbursable contracts.
                  (C) Budget.--To--
                          (i) develop a budget request of the 
                        Administration related to the air 
                        traffic control system;
                          (ii) submit such budget request to 
                        the Administrator and the Committee; 
                        and
                          (iii) ensure that the budget request 
                        supports the agency's annual and long-
                        range strategic plans for air traffic 
                        control services.
          (6) Sunset.--The position of Chief Operating Officer 
        shall terminate and this subsection shall cease to be 
        effective beginning on the date of transfer (as defined 
        in section 90101(a)).
  (s) Chief NextGen Officer.--
          (1) In general.--
                  (A) Appointment.--There shall be a Chief 
                NextGen Officer appointed by the Administrator, 
                with the approval of the Secretary. The Chief 
                NextGen Officer shall report directly to the 
                Administrator and shall be subject to the 
                authority of the Administrator.
                  (B) Qualifications.--The Chief NextGen 
                Officer shall have a demonstrated ability in 
                management and knowledge of or experience in 
                aviation and systems engineering.
                  (C) Term.--The Chief NextGen Officer shall be 
                appointed for a term of 5 years.
                  (D) Removal.--The Chief NextGen Officer shall 
                serve at the pleasure of the Administrator, 
                except that the Administrator shall make every 
                effort to ensure stability and continuity in 
                the leadership of the implementation of 
                NextGen.
                  (E) Vacancy.--Any individual appointed to 
                fill a vacancy in the position of Chief NextGen 
                Officer occurring before the expiration of the 
                term for which the individual's predecessor was 
                appointed shall be appointed for the remainder 
                of that term.
          (2) Compensation.--
                  (A) In general.--The Chief NextGen Officer 
                shall be paid at an annual rate of basic pay to 
                be determined by the Administrator. The annual 
                rate may not exceed the annual compensation 
                paid under section 102 of title 3. The Chief 
                NextGen Officer shall be subject to the 
                postemployment provisions of section 207 of 
                title 18 as if the position of Chief NextGen 
                Officer were described in section 
                207(c)(2)(A)(i) of that title.
                  (B) Bonus.--In addition to the annual rate of 
                basic pay authorized by subparagraph (A), the 
                Chief NextGen Officer may receive a bonus for 
                any calendar year not to exceed 30 percent of 
                the annual rate of basic pay, based upon the 
                Administrator's evaluation of the Chief NextGen 
                Officer's performance in relation to the 
                performance goals set forth in the performance 
                agreement described in paragraph (3).
          (3) Annual performance agreement.--The Administrator 
        and the Chief NextGen Officer, in consultation with the 
        Federal Aviation Management Advisory Council, shall 
        enter into an annual performance agreement that sets 
        forth measurable organization and individual goals for 
        the Chief NextGen Officer in key operational areas. The 
        agreement shall be subject to review and renegotiation 
        on an annual basis. In evaluating the performance of 
        the Chief NextGen Officer, the Administrator shall 
        consider the progress made in meeting the near-term 
        NextGen performance goals required pursuant to section 
        242 of the 21st Century AIRR Act and delivering near-
        term NextGen benefits.
          (4) Annual performance report.--The Chief NextGen 
        Officer shall prepare and transmit to the Secretary of 
        Transportation, the Committee on Transportation and 
        Infrastructure of the House of Representatives, the 
        Committee on Science, Space, and Technology of the 
        House of Representatives, and the Committee on 
        Commerce, Science, and Transportation of the Senate an 
        annual management report containing such information as 
        may be prescribed by the Secretary.
          (5) Responsibilities.--The responsibilities of the 
        Chief NextGen Officer include the following:
                  (A) Implementing NextGen activities and 
                budgets across all program offices of the 
                Federal Aviation Administration.
                  (B) Coordinating the implementation of 
                NextGen activities with the Office of 
                Management and Budget.
                  (C) Reviewing and providing advice on the 
                Administration's modernization programs, 
                budget, and cost accounting system with respect 
                to NextGen.
                  (D) With respect to the budget of the 
                Administration--
                          (i) developing a budget request of 
                        the Administration related to the 
                        implementation of NextGen;
                          (ii) submitting such budget request 
                        to the Administrator; and
                          (iii) ensuring that the budget 
                        request supports the annual and long-
                        range strategic plans of the 
                        Administration with respect to NextGen.
                  (E) Consulting with the Administrator on the 
                Capital Investment Plan of the Administration 
                prior to its submission to Congress.
                  (F) Developing an annual NextGen 
                implementation plan.
                  (G) Ensuring that NextGen implementation 
                activities are planned in such a manner as to 
                require that system architecture is designed to 
                allow for the incorporation of novel and 
                currently unknown technologies into NextGen in 
                the future and that current decisions do not 
                bias future decisions unfairly in favor of 
                existing technology at the expense of 
                innovation.
                  (H) Coordinating with the NextGen Joint 
                Planning and Development Office with respect to 
                facilitating cooperation among all Federal 
                agencies whose operations and interests are 
                affected by the implementation of NextGen.
                  (I) Developing, as part of the annual report 
                required under paragraph (4), a description of 
                the progress made in meeting the near-term 
                NextGen performance goals required pursuant to 
                section 242 of the 21st Century AIRR Act and 
                delivering near-term NextGen benefits.
          (6) Exception.--If the Administrator appoints as the 
        Chief NextGen Officer, pursuant to paragraph (1)(A), an 
        Executive Schedule employee covered by section 5315 of 
        title 5, then paragraphs (1)(B), (1)(C), (2), and (3) 
        of this subsection shall not apply to such employee.
          (7) NextGen defined.--For purposes of this 
        subsection, the term ``NextGen'' means the Next 
        Generation Air Transportation System.
          (8) Sunset.--The position of Chief NextGen Officer 
        shall terminate and this subsection shall cease to be 
        effective beginning on the date of transfer (as defined 
        in section 90101(a)).
  (t) Aviation Safety Whistleblower Investigation Office.--
          (1) Establishment.--There is established in the 
        Federal Aviation Administration (in this subsection 
        referred to as the ``Agency'') an Aviation Safety 
        Whistleblower Investigation Office (in this subsection 
        referred to as the ``Office'').
          (2) Director.--
                  (A) Appointment.--The head of the Office 
                shall be the Director, who shall be appointed 
                by the Secretary of Transportation.
                  (B) Qualifications.--The Director shall have 
                a demonstrated ability in investigations and 
                knowledge of or experience in aviation.
                  (C) Term.--The Director shall be appointed 
                for a term of 5 years.
                  (D) Vacancies.--Any individual appointed to 
                fill a vacancy in the position of the Director 
                occurring before the expiration of the term for 
                which the individual's predecessor was 
                appointed shall be appointed for the remainder 
                of that term.
          (3) Complaints and investigations.--
                  (A) Authority of Director.--The Director 
                shall--
                          (i) receive complaints and 
                        information submitted by employees of 
                        persons holding certificates issued 
                        under title 14, Code of Federal 
                        Regulations (if the certificate holder 
                        does not have a similar in-house 
                        whistleblower or safety and regulatory 
                        noncompliance reporting process) and 
                        employees of the Agency concerning the 
                        possible existence of an activity 
                        relating to a violation of an order, a 
                        regulation, or any other provision of 
                        Federal law relating to aviation 
                        safety;
                          (ii) assess complaints and 
                        information submitted under clause (i) 
                        and determine whether a substantial 
                        likelihood exists that a violation of 
                        an order, a regulation, or any other 
                        provision of Federal law relating to 
                        aviation safety has occurred; and
                          (iii) based on findings of the 
                        assessment conducted under clause (ii), 
                        make recommendations to the 
                        Administrator of the Agency, in 
                        writing, regarding further 
                        investigation or corrective actions.
                  (B) Disclosure of identities.--The Director 
                shall not disclose the identity of an 
                individual who submits a complaint or 
                information under subparagraph (A)(i) unless--
                          (i) the individual consents to the 
                        disclosure in writing; or
                          (ii) the Director determines, in the 
                        course of an investigation, that the 
                        disclosure is required by regulation, 
                        statute, or court order, or is 
                        otherwise unavoidable, in which case 
                        the Director shall provide the 
                        individual reasonable advanced notice 
                        of the disclosure.
                  (C) Independence of Director.--The Secretary, 
                the Administrator, or any officer or employee 
                of the Agency may not prevent or prohibit the 
                Director from initiating, carrying out, or 
                completing any assessment of a complaint or 
                information submitted under subparagraph (A)(i) 
                or from reporting to Congress on any such 
                assessment.
                  (D) Access to information.--In conducting an 
                assessment of a complaint or information 
                submitted under subparagraph (A)(i), the 
                Director shall have access to all records, 
                reports, audits, reviews, documents, papers, 
                recommendations, and other material of the 
                Agency necessary to determine whether a 
                substantial likelihood exists that a violation 
                of an order, a regulation, or any other 
                provision of Federal law relating to aviation 
                safety may have occurred.
          (4) Responses to recommendations.--Not later than 60 
        days after the date on which the Administrator receives 
        a report with respect to an investigation, the 
        Administrator shall respond to a recommendation made by 
        the Director under paragraph (3)(A)(iii) in writing and 
        retain records related to any further investigations or 
        corrective actions taken in response to the 
        recommendation.
          (5) Incident reports.--If the Director determines 
        there is a substantial likelihood that a violation of 
        an order, a regulation, or any other provision of 
        Federal law relating to aviation safety has occurred 
        that requires immediate corrective action, the Director 
        shall report the potential violation expeditiously to 
        the Administrator and the Inspector General of the 
        Department of Transportation.
          (6) Reporting of criminal violations to Inspector 
        General.--If the Director has reasonable grounds to 
        believe that there has been a violation of Federal 
        criminal law, the Director shall report the violation 
        expeditiously to the Inspector General.
          (7) Annual reports to Congress.--Not later than 
        October 1 of each year, the Director shall submit to 
        Congress a report containing--
                  (A) information on the number of submissions 
                of complaints and information received by the 
                Director under paragraph (3)(A)(i) in the 
                preceding 12-month period;
                  (B) summaries of those submissions;
                  (C) summaries of further investigations and 
                corrective actions recommended in response to 
                the submissions; and
                  (D) summaries of the responses of the 
                Administrator to such recommendations.

           *       *       *       *       *       *       *


                    SUBTITLE VII--AVIATION PROGRAMS

                    PART A - AIR COMMERCE AND SAFETY

Chapter                                                             Sec.

                           SUBPART I - GENERAL

      General Provisions...........................................40101
     * * * * * * *

                          SUBPART III - SAFETY

     * * * * * * *
45501nmanned aircraft systems.........................................

           *       *       *       *       *       *       *


PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *


SUBPART I--GENERAL

           *       *       *       *       *       *       *


                    CHAPTER 401--GENERAL PROVISIONS

Sec. 40101. Policy

  (a) Economic Regulation.--In carrying out subpart II of this 
part and those provisions of subpart IV applicable in carrying 
out subpart II, the Secretary of Transportation shall consider 
the following matters, among others, as being in the public 
interest and consistent with public convenience and necessity:
          (1) assigning and maintaining safety as the highest 
        priority in air commerce.
          (2) before authorizing new air transportation 
        services, evaluating the safety implications of those 
        services.
          (3) preventing deterioration in established safety 
        procedures, recognizing the clear intent, 
        encouragement, and dedication of Congress to further 
        the highest degree of safety in air transportation and 
        air commerce, and to maintain the safety vigilance that 
        has evolved in air transportation and air commerce and 
        has come to be expected by the traveling and shipping 
        public.
          (4) the availability of a variety of adequate, 
        economic, efficient, and low-priced services without 
        unreasonable discrimination or unfair or deceptive 
        practices.
          (5) coordinating transportation by, and improving 
        relations among, air carriers, and encouraging fair 
        wages and working conditions.
          (6) placing maximum reliance on competitive market 
        forces and on actual and potential competition--
                  (A) to provide the needed air transportation 
                system; and
                  (B) to encourage efficient and well-managed 
                air carriers to earn adequate profits and 
                attract capital, considering any material 
                differences between interstate air 
                transportation and foreign air transportation.
          (7) developing and maintaining a sound regulatory 
        system that is responsive to the needs of the public 
        and in which decisions are reached promptly to make it 
        easier to adapt the air transportation system to the 
        present and future needs of--
                  (A) the commerce of the United States;
                  (B) the United States Postal Service; and
                  (C) the national defense.
          (8) encouraging air transportation at major urban 
        areas through secondary or satellite airports if 
        consistent with regional airport plans of regional and 
        local authorities, and if endorsed by appropriate State 
        authorities--
                  (A) encouraging the transportation by air 
                carriers that provide, in a specific market, 
                transportation exclusively at those airports; 
                and
                  (B) fostering an environment that allows 
                those carriers to establish themselves and 
                develop secondary or satellite airport 
                services.
          (9) preventing unfair, deceptive, predatory, or 
        anticompetitive practices in air transportation.
          (10) avoiding unreasonable industry concentration, 
        excessive market domination, monopoly powers, and other 
        conditions that would tend to allow at least one air 
        carrier or foreign air carrier unreasonably to increase 
        prices, reduce services, or exclude competition in air 
        transportation.
          (11) maintaining a complete and convenient system of 
        continuous scheduled interstate air transportation for 
        small communities and isolated areas with direct 
        financial assistance from the United States Government 
        when appropriate.
          (12) encouraging, developing, and maintaining an air 
        transportation system relying on actual and potential 
        competition--
                  (A) to provide efficiency, innovation, and 
                low prices; and
                  (B) to decide on the variety and quality of, 
                and determine prices for, air transportation 
                services.
          (13) encouraging entry into air transportation 
        markets by new and existing air carriers and the 
        continued strengthening of small air carriers to ensure 
        a more effective and competitive airline industry.
          (14) promoting, encouraging, and developing civil 
        aeronautics and a viable, privately-owned United States 
        air transport industry.
          (15) strengthening the competitive position of air 
        carriers to at least ensure equality with foreign air 
        carriers, including the attainment of the opportunity 
        for air carriers to maintain and increase their 
        profitability in foreign air transportation.
          (16) ensuring that consumers in all regions of the 
        United States, including those in small communities and 
        rural and remote areas, have access to affordable, 
        regularly scheduled air service.
          (17) preventing entry into United States markets by 
        flag of convenience carriers.
  (b) All-Cargo Air Transportation Considerations.--In carrying 
out subpart II of this part and those provisions of subpart IV 
applicable in carrying out subpart II, the Secretary of 
Transportation shall consider the following matters, among 
others and in addition to the matters referred to in subsection 
(a) of this section, as being in the public interest for all-
cargo air transportation:
          (1) encouraging and developing an expedited all-cargo 
        air transportation system provided by private 
        enterprise and responsive to--
                  (A) the present and future needs of shippers;
                  (B) the commerce of the United States; and
                  (C) the national defense.
          (2) encouraging and developing an integrated 
        transportation system relying on competitive market 
        forces to decide the extent, variety, quality, and 
        price of services provided.
          (3) providing services without unreasonable 
        discrimination, unfair or deceptive practices, or 
        predatory pricing.
  (c) General Safety Considerations.--In carrying out subpart 
III of this part and those provisions of subpart IV applicable 
in carrying out subpart III, the Administrator of the Federal 
Aviation Administration shall consider the following matters:
          (1) the requirements of national defense and 
        commercial and general aviation.
          (2) the public right of freedom of transit through 
        the navigable airspace.
  (d) Safety Considerations in Public Interest.--In carrying 
out subpart III of this part and those provisions of subpart IV 
applicable in carrying out subpart III, the Administrator shall 
consider the following matters, among others, as being in the 
public interest:
          (1) assigning, maintaining, and enhancing safety and 
        security as the highest priorities in air commerce.
          (2) regulating air commerce in a way that best 
        promotes safety and fulfills national defense 
        requirements.
          (3) encouraging and developing civil aeronautics, 
        including new aviation technology.
          (4) controlling the use of the navigable airspace and 
        regulating civil and military operations in that 
        airspace in the interest of the safety and efficiency 
        of both of those operations.
          (5) consolidating research and development for air 
        navigation facilities and the installation and 
        operation of those facilities.
          (6) developing and operating a common system of air 
        traffic control and navigation for military and civil 
        aircraft.
          (7) providing assistance to law enforcement agencies 
        in the enforcement of laws related to regulation of 
        controlled substances, to the extent consistent with 
        aviation safety.
  (e) International Air Transportation.--In formulating United 
States international air transportation policy, the Secretaries 
of State and Transportation shall develop a negotiating policy 
emphasizing the greatest degree of competition compatible with 
a well-functioning international air transportation system, 
including the following:
          (1) strengthening t