[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2881 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 2881

To amend title 49, United States Code, to permit States to impose fees 
  to finance programs for providing air service to small communities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 25, 1996

   Mr. Barrett of Nebraska introduced the following bill; which was 
     referred to the Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
To amend title 49, United States Code, to permit States to impose fees 
  to finance programs for providing air service to small communities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Community Air Service Act of 
1996''.

SEC. 2. SMALL COMMUNITY AIR SERVICE FEES.

    (a) In General.--Chapter 401 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 40121. Small community air service fees
    ``(a) In General.--The Secretary of Transportation may authorize 
under this section a State to impose a small community air service fee 
of $1, $2, or $3 on each paying passenger of an air carrier or foreign 
air carrier boarding an aircraft at an airport in the State to finance 
a small community air service program of the State.
    ``(b) Applications.--
            ``(1) In general.--A State must submit to the Secretary an 
        application for authority to impose a small community air 
        service fee. The application shall contain such information and 
        be in such form as the Secretary may require by regulation.
            ``(2) Notice and comment.--After receiving an application, 
        the Secretary shall provide notice and an opportunity to air 
        carriers, foreign air carriers, and other interested persons to 
        comment on the application. The Secretary shall make a final 
        decision on the application not later than 120 days after 
        receiving it.
    ``(c) Limitations on Approving Applications.--The Secretary may 
approve an application that a State has submitted under subsection (b) 
only if the Secretary finds, based on the application, that--
            ``(1) the small community air service program of the State 
        meets the requirements of this section; and
            ``(2) the amount of the proposed small community air 
        service fee will result in revenue (including interest and 
        other returns on the revenue) that is not more than the amount 
        necessary to finance the small community air service program.
    ``(d) Limitations on Imposing Fees.--
            ``(1) Terms to be prescribed by the secretary.--A State may 
        impose a small community air service fee only--
                    ``(A) if the Secretary approves an application that 
                the State has submitted under subsection (b); and
                    ``(B) subject to terms the Secretary may prescribe 
                to carry out the objectives of this section.
            ``(2) Specific limitations.--A small community air service 
        fee may not be collected from a passenger--
                    ``(A) for more than 2 boardings on a one-way trip 
                or a trip in each direction of a round trip; or
                    ``(B) enplaning at an airport if the passenger did 
                not pay for the air transportation which resulted in 
                such enplanement, including any case in which the 
                passenger obtained the ticket for the air 
                transportation with a frequent flier award coupon 
                without monetary payment.
    ``(e) Requirements for Small Community Air Service Program.--
            ``(1) In general.--A small community air service program 
        shall be designed to provide compensation to air carriers for 
        providing air service to places that would not receive air 
        service without such compensation. Such compensation may be 
        used to supplement compensation made available under subchapter 
        II of chapter 417 of this title.
            ``(2) Eligible places.--Decisions concerning individual 
        places eligible for compensation under the small community air 
        service program of a State and the level of air service 
        provided to such places shall be made by the State and shall 
        not be subject to review by the Secretary.
    ``(f) Definitions.--For the purposes of this section, the following 
definitions apply:
            ``(1) Airport.--The term `airport' has the same meaning 
        given such term by section 47102.
            ``(2) Small community air service fee.--The term `small 
        community air service fee' means a fee imposed under this 
        section.''.
    (b) Amendment to Table of Sections.--The table of sections at the 
beginning of chapter 401 of such title is amended by adding at the end 
the following new item:

``40121. Small community air service fees.''.
    (c) Conforming Amendment.--Section 40116(b) of title 49, United 
States Code, is amended by striking ``and section 40117'' and inserting 
``, section 40117, and section 40121''.

SEC. 3. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
the first day of the first fiscal year beginning after the date of the 
enactment of this Act.
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